Former SEC Official Backs Crypto Investors; Bitcoin ETFs Break Inflow Records
Summary:
Former U.S Securities and Exchange Commission official, John Reed Stark, supports crypto investors in their lawsuit against the NBA over a controversial crypto partnership. Meanwhile, spot Bitcoin ETFs record the third-largest single-day inflow, and BlackRock and Fidelity's Bitcoin ETFs have the most successful debut month in U.S history, amassing over $3 billion each in assets, indicating robust Bitcoin demand.
A former official from the U.S Securities and Exchange Commission (SEC), John Reed Stark, has aligned himself with crypto investors in their legal challenge against the National Basketball Association (NBA). At the same time, Bitcoin exchange-traded funds (ETFs) in the United States have observed the third largest one-day inflow on Feb 8th, amounting to $403 million. Spot Bitcoin ETFs from financial giants BlackRock and Fidelity have accumulated more assets in a month than any newly launched ETF in the United States over the last three decades.
John Reed Stark, who was previously the head of internet enforcement for the SEC, has expressed his support for the investors suing the NBA over their crypto venture. Criticizing the NBA's decision to green light a partnership between the Dallas Mavericks and the now-bankrupt Voyager Digital crypto exchange, Stark expressed his disapproval on the X platform (previously known as Twitter). Voyager, like several other digital asset platforms, collapsed in 2022 during the crypto downturn and settled with the Federal Trade Commission for $1.65 billion in November 2023.
Stark argues that the Mavericks exploited their fanbase and players by promoting crypto Fear Of Missing Out (FOMO) and diamond hands, directly contributing to the damage Voyager imposed on its investors. He draws a parallel between partnering with Voyager and hypothetically collaborating with a cocaine manufacturing company or an illegal diamond mining operation. In those instances, Stark believes the NBA would, and should, interject. Stark is now the President of his own consultation firm, John Reed Stark Consulting.
A record-breaking inflow of $403 million was noticed in spot Bitcoin ETFs on February 8th, even as $100 million left the Grayscale Bitcoin Trust (GBTC). Since their initiation on January 11, the total influx into these BTC ETFs has climbed past $2.1 billion, suggesting a robust demand for BTC in the market. This considerable inflow coincided with the BTC price momentarily exceeding $46,000, marking a fresh multiweek peak and falling just $2,000 short of new annual highs.
Inflows were led by BlackRock's iShares Bitcoin Trust (IBIT) with $204 million, followed by Fidelity with $128 million, ARK 21Shares with $86 million, and Bitwise with $60 million. The remaining seven ETFs collectively experienced $27 million inflows while GBTC endured yet more outflows of $102 million.
In their debut month, the BlackRock and Fidelity spot Bitcoin ETFs have amassed assets at a pace previously unmatched in the rolling 30-year history of ETFs in the United States. Data from Bloomberg Intelligence reveals that both BlackRock's IBIT and Fidelity's FBTC programs have garnered over $3 billion in assets within the first 17 trading days, outpacing over 5,500 competitors.
In the words of Bloomberg ETF analyst Eric Balchunas, the influx into IBIT and FBTC is "literally unprecedented." Explaining the rarity of the situation, Balchunas noted that these results are even more extraordinary considering that unlike most other successful ETFs on the list, the BlackRock and Fidelity ETFs are not entirely buoyed by a single investor's assets but have seen inflows every trading day since their launch.
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Published At
2/9/2024 9:26:04 PM
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