Bitcoin ETFs see large inflows following Trump victory and record high
Bitcoin (COIN:BTCUSD) rose by 1.35% over the last 24 hours, reaching $76,665.65, surpassing its previous record following Donald Trump’s election win. Investors are now eyeing a potential 25-basis-point rate cut by the Fed, with traders seeing a high probability of the reference rate falling to 4.5%-4.7%, which may have a limited effect on the crypto market. The FOMC will announce its rate decision at 2:00 PM, followed by Fed Chair Jerome Powell’s press conference at 2:30 PM.
On November 6, Bitcoin ETFs saw total inflows of $621.9 million. Fidelity’s fund (AMEX:FBTC) attracted $308.8 million, while Grayscale’s (AMEX:BTC) and (AMEX:GBTC) funds brought in $108 million and $30.9 million, respectively. Bitwise (AMEX:BITB) and Ark (AMEX:ARKB) garnered $100.9 million and $127.0 million. BlackRock (NASDAQ:IBIT) and Valkyrie (NASDAQ:BRRR) were the only funds to record outflows, with $69.1 million and $2.6 million, respectively.
The “Coinbase Premium” index for Bitcoin, reflecting the price gap between Coinbase and Binance, hit 0.09, its highest since April, indicating rising institutional demand in the U.S. According to CryptoQuant on Wednesday, the growing premium highlights renewed interest in the asset following Trump’s victory.
Cointelegraph also reported that two “whales” collectively purchased $142 million in BTC yesterday. Some analysts predict the favorable political environment could drive BTC past $100,000 by the end of 2024, particularly with supportive crypto-positive policies.
Ethereum ETFs log largest inflow since September 27; staking could attract more investors
On November 6, spot Ether ETFs in the U.S. registered a net inflow of $52.3 million, marking their highest in six weeks. Driven by the post-election market surge, the Fidelity Ethereum Fund (AMEX:FETH) led with $26.9 million, followed by the Grayscale Ethereum Mini Trust (AMEX:ETH) with $25.4 million. Leading ETF, BlackRock’s iShares Ethereum Trust (NASDAQ:ETHA), and other remaining Ethereum Spot ETFs recorded zero net flow.
Recently, former 21.co crypto analyst Tom Wan stated that staking could transform Ethereum ETFs in the U.S. by helping reduce management fees and increasing investor appeal through yield, potentially adding between 550,000 and 1.3 million ETH to total staked assets, further bolstering the Ethereum network.
Ethereum surge yields massive profit for whale; Trump-linked crypto project also gains
Ethereum (COIN:ETHUSD) is up 5.3%, trading at $2,868.16. An Ethereum whale who acquired 11,000 ETH at $3.46 in 2016 cashed in for an estimated profit of $30.5 million today, November 7 — more than 800 times the initial $38,000 investment.
The whale could have earned over $52.8 million by selling at the $4,800 peak in 2021 or around $44 million in May this year when ETH exceeded $4,000.
Trump-backed DeFi project World Liberty Financial (WLFI) achieved $1 million in unrealized gains from Ether’s price increase. On October 31, the company reduced its fundraising target from $300 million to $30 million due to low demand, selling about half of the new target. However, WLFI tokens are “non-transferable,” limiting investor liquidity, with potential changes subject to future governance.
Ethereum launches Mekong testnet for Pectra update testing
The Ethereum Foundation (COIN:ETHUSD) introduced the Mekong Testnet, a temporary test network allowing developers to explore new features in the Pectra update before its mainnet release. Mekong includes all Ethereum Improvement Proposals (EIPs) for Pectra, focusing on user experience, staking, and deposit and withdrawal processes. Inspired by the Prague and Electra versions, the update will introduce Verkle Trees to reduce node and fee requirements, enhancing network scalability and security.
Celestia eyes rally amid record exchange outflows
Celestia (COIN:TIAUSD), up 10.9% this week and priced at $5.25 at writing, recorded its highest November exchange outflows, with about $5.62 million in TIA withdrawn. This trend indicates optimism among holders and may signal a prolonged rally, supported by growing on-chain volume, which surpassed $350 million. If TIA breaks Ichimoku Cloud resistance, it could reach $6.15, although increased inflows could alter this outlook.
Hut 8 expands hashrate with new Bitcoin miner purchase
Bitcoin miner Hut 8 (NASDAQ:HUT) announced a 66% increase in its self-mining hashrate to 9.3 EH/s with the acquisition of 31,145 Bitmain Antminer S21+ machines, set for early 2025 delivery. The purchase is expected to optimize returns and efficiency, with a 37% reduction in fleet energy consumption. The company also plans to expand its hashrate to 24 EH/s by Q2 2025 with an additional purchase option.
Galaxy Digital shifts Bitcoin mining to AI for profit
Michael Novogratz’s Galaxy Digital is repurposing its 800 MW energy capacity for artificial intelligence (AI) computing due to Bitcoin mining’s low profitability. Partnering with a U.S.-based hyperscaler, Galaxy is diversifying revenue by capitalizing on the rising demand for computing power, following the trend of other major miners adapting their operations for AI.
Google Cloud strengthens Cronos network as leading blockchain validator
Google Cloud is now the main validator on the Cronos blockchain, enhancing its role in Web3 and bolstering network security. Partnering with Cronos Labs (COIN:CROUSD), Google (NASDAQ:GOOGL) is providing technical innovation expected to attract more developers. Google’s secure infrastructure, combined with AI and data analysis capabilities, will enable new decentralized applications.
UBS launches UBS Digital Cash for corporate blockchain payments
UBS (NYSE:UBS) has tested UBS Digital Cash, a blockchain-based payment solution for greater transparency and speed in international transactions for corporate clients. Designed to reduce settlement delays and costs, UBS Digital Cash streamlines liquidity management and improves cash reserve visibility. The pilot included multi-currency payments and underscored interoperability as essential for the financial sector, optimizing tokenized asset settlement and cross-border payment efficiency.
Blockchain and AI revolutionize African agriculture, driving financial inclusion
Blockchain technology is driving change in Africa’s agricultural sector, addressing challenges such as credit access and market expansion. Projects like One Million Avocados and Project Mocha tokenize trees, allowing farmers to secure financing by selling digital assets representing trees. This improves access to resources for farm rehabilitation and enhances transparency. Additionally, IoT technology aids in crop condition monitoring. With strategic collaborations, blockchain and AI are promoting sustainability and financial inclusion for small farmers, transforming their economic realities.
Lamborghini launches digital vehicle NFTs with Transak for exclusive experiences
Despite the NFT market decline, Lamborghini is betting on long-term digital experiences for niche communities. Partnering with Transak, Lamborghini will allow users to create NFTs of their Revuelto models, offering driving experiences in games by Animoca Brands. Part of the Fast ForWorld partnership, Transak facilitates checkout payments via card and bank transfers.
Kraken criticizes SEC tactics in crypto lawsuit
Kraken’s legal team, led by Michael O’Connor, criticized the SEC for attempting to dismiss defenses like the “major questions doctrine.” O’Connor stated that the agency avoids exposing flawed policies that, he argues, harm the American economy. He likened the SEC’s approach to its unsuccessful effort in the Ripple case and questioned the timing of the SEC’s motion, filed on election day, suggesting it disregards the public’s voice. The SEC alleges Kraken has operated as an unregistered exchange since September 2018, violating securities laws.
Poland warns of Crypto.com’s unauthorized activities in the country
Poland’s Financial Supervisory Authority (KNF) issued a warning about Foris DAX MT, operating as Crypto.com, for potential unauthorized financial activity in Poland. While the warning informs investors of risks, it does not halt the platform’s operation.
Former Alameda CEO Caroline Ellison to begin two-year sentence in November
Caroline Ellison, former Alameda Research CEO, is set to begin a two-year prison sentence on November 7, following her conviction for crimes involving FTX. Judge Kaplan ordered Ellison to report to a minimum-security facility, likely in Danbury, Connecticut. Ellison, who pleaded guilty in 2022, testified against Sam Bankman-Fried and has faced significant public backlash since FTX’s collapse.
Fake Curve Finance app reappears on App Store, exposing users to fraud
A fake Curve Finance (COIN:CRVUSD) app has resurfaced on the App Store, targeting unsuspecting users. Masquerading as a legitimate DeFi platform, it promises token swap and liquidity staking features but leads to unauthorized withdrawals and fund disappearance, as reported in user reviews.
Dune launches dashboard mapping $2.5 billion in crypto crimes
Dune launched a comprehensive dashboard documenting over 5,500 cybercrimes in the blockchain ecosystem, including hacks, exploits, and phishing scams. Since 2016, about $2.5 billion has been stolen, with data from sources like Scamsniffer and Forta Network. The dashboard tracks stolen fund flows, highlighting destinations like Tornado Cash and DeFi platforms. The tool provides transparency to the public concerned with crypto security, and it is open and accessible.