The biggest crypto news and ideas of the day |
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Bitcoin ETFs Approach Gold AUM |
The year 2024 has marked a significant breakthrough for digital assets, particularly for bitcoin (BTC), driven by increased institutional adoption. This shift has occurred through two key avenues: first, the integration of bitcoin into public balance sheets as a treasury asset, and second, the success of U.S. spot-listed exchange-traded funds (ETFs) that have amassed over 1 million BTC.
|A report from K33 Research reveals that U.S.-listed bitcoin ETFs have surpassed U.S.-listed Gold ETFs in terms of assets under management (AUM), including leveraged products such as futures-based ETFs. As of Dec. 17, Bitcoin ETFs reached assets under management (AUM) worth $129.25 billion, edging out Gold ETF AUM at $128.88 billion, according to Vetle Lunde, analyst at K33 Research.
However, when comparing spot-based products exclusively, Gold remains slightly ahead. According to Senior Bloomberg ETF Analyst Eric Balchunas, U.S. bitcoin spot ETFs hold $120 billion in AUM compared to $125 billion for gold ETFs. The CME exchange, primarily used by institutions, continues to have strong activity, with futures open interest approaching new highs, with 212,635 BTC in open interest contracts.
According to the report, the basis trade premium has continued to rise, reaching 16.4% — the highest level since November 2023. This indicates that CME traders anticipate increased momentum as the year comes to a close. The report notes, "January contracts are trading at sharp premiums relative to December contracts, with the contango widening to 1.5% on Monday — the highest next-month premium recorded since November 2023. The December contract on CME remains the most valuable, with open interest equivalent to 113,480 BTC. The upcoming December roll is expected to be significant, as several upcoming banking holidays may contribute to a further widening of the January premium." The momentum has continued for the past month, as the U.S. spot-listed bitcoin ETFs have seen net inflows every day since Nov. 27, totaling $6.5 billion, according to Farside data. It is important to note that as the basis trade premium continues to widen and with a growing amount of open interest contracts on the CME, a large portion of these net inflows are part of the cash and carry trade. |
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A message from The Interchain Foundation |
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Cosmos is expanding: Skip joins the Interchain Foundation.
The Interchain Foundation has acquired Skip, one of the leading Cosmos teams, to bring their excellence in engineering, product strategy, and execution in-house and usher in an era of growth for Cosmos, and its vision for the interchain. Skip will rename to Interchain Inc. and become the ICF’s main subsidiary, concentrating product, vision, and go-to-market for the Interchain Stack and Cosmos, led by Skip co-founders Barry Plunkett and Maghnus Mareneck. This acquisition marks a departure from the ICF’s distributed product development model and starts a new growth-driven stage defined by the alignment between the Interchain Stack’s vision, and the vision for a Cosmos Hub that is at the center of the ecosystem, driving user and liquidity growth for the entirety of the Cosmos’ interchain ecosystem. |
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Craig Wright Gets Suspended Sentence |
Craig Wright, who falsely claimed to be Satoshi Nakamoto, the pseudonymous creator of bitcoin, was found to be in contempt of court and handed a 12-month jail sentence after starting a legal claim for 900 billion pounds ($1.1 trillion) over intellectual property rights related to the Bitcoin system.
The case was brought by the Crypto Open Patent Alliance, which argued that Wright's suit in October violated the London court's July ruling barring him from pursuing proceedings related to his claim to be Nakamoto.
“When it comes to the grounds of contempt I have found each of them proved beyond reasonable doubt,” Judge James Mellor said.
Wright, who was in Asia, attended the court virtually on Thursday to hear the sentence, which is suspended for two years. Wright declined to say where in Asia he was and insisted he would appeal the verdict.
In March, Mellor ruled that Wright was not Satoshi Nakamoto. He then issued a court order preventing Wright from pursuing proceedings in the U.K. and other jurisdictions related to the claim. "Dr. Wright is perfectly capable, once the dust has settled, of ramping up his public pronouncements again," Mellor wrote at the time.
Prior to COPA's victory, Wright had brought several court cases against the bitcoin community around the bitcoin whitepaper, libel suits as well as claims against developers. |
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El Salvador Shuts Chivo Wallet |
El Salvador is in the process of securing a $3.5 billion deal with the International Monetary Fund, but is making some concessions around bitcoin (BTC) to get the funding.
Stacey Herbert, director of the Bitcoin Office in El Salvador, posted on Thursday that the government-issued Chivo wallet — launched in 2021 in a bid to spread bitcoin adoption across the country — will be "sold off or wound down" as part of the deal. Other bitcoin wallets operated by private companies will "continue serving El Salvador," Herbert said. The IMF stated on Wednesday that, under the agreement, El Salvador will also make bitcoin acceptance by the private sector voluntary, and that taxes will only be paid in U.S. dollars (not bitcoin). "For the public sector, engagement in bitcoin-related economic activities and transactions in and purchases of bitcoin will be confined," the document also said, without going into further detail.
Herbert, however, wrote in her post that El Salvador will continue to add bitcoin to its reserves — possibly, even, at an "accelerated pace." The Central American nation is currently buying one bitcoin per day; at press time, it held 5,968.77 bitcoin, worth almost $596 million. Herbert said that many of El Salvador's bitcoin-related projects, including the development of bitcoin capital markets and the offering of bitcoin educational programs, will continue to occur. The cryptocurrency's legal tender status will likewise not be impacted. The IMF has had misgivings about El Salvador's bitcoin initiatives ever since President Nayib Bukele made bitcoin legal tender in the country in September 2021, giving it the same status as the U.S. dollar, the nation’s official currency. In 2022, the agency warned that El Salvador was incurring "large risks associated with using Bitcoin as legal tender, especially given the high volatility of its price." "The potential risks of the Bitcoin project will be diminished significantly in line with Fund policies," the IMF stated on Wednesday.
Salvadorans were offered $30 in bitcoin to sign up on Chivo, but national adoption never really took off. By mid-2022, more than 60% of recipients had yet to make a transaction, according to the National Bureau of Economic Research. A survey from the Central American University found in January that 88% of surveyed Salvadorans hadn't used bitcoin in 2023.
The IMF itself will only provide $1.4 billion as part of the deal with El Salvador. Funds from the World Bank, the Inter-American Development Bank and regional development banks are expected to bring the total amount to $3.5 billion as part of the same program. |
Sapien: Is AI Work the Future of the Gig Economy? Step aside, Uber – there’s a new gig in town. They said AI would take your jobs, but instead, it’s creating one of the fastest-growing gig opportunities we’ve ever seen. Despite the notion that AI will replace most jobs in the future, the shift from human to automated work may push the gig economy into overdrive in the next few years. Companies are already investing a significant portion of their budgets in AI training, spending up to 80% of both time and financial resources on data labeling alone. Continue reading here. |
More Than Half of Tokens in 2024 Malicious |
An intellectual property (IP) ownership could soon end up in a fight of digital dogs.
Own The Doge DAO, a collective that holds the original ‘doge’ meme, on Tuesday said it had acquired the rights to use pet shiba inu Neiro’s images and was holding a community discussion on which NEIRO token can continue to use the dog’s liking. “We’re pleased to announce that @kabosumama has officially granted our DAO the Neiro IP,” Own The Doge said on X. “When Atsuko revealed the name of her new adopted dog, Neiro, many tokens were launched in an attempt to capitalize on her name and story.”
“However, since then, these various tokens have battled each other to become the ‘real’ Neiro, with no agreed criteria. But it does not have to be this way. Our DAO owns the IP rights for Neiro,” the post said, adding that the doge community could join the DAO and vote for which token they considered the “real” one.
The ongoing discussion will let the community and outside members comment and find a way forward to use Neiro’s IP, before being put into an actual on-chain proposal voted on by DOG token holders.
Neiro is the shiba inu adopted by the human owner of Kabosu, the dog that inspired the “doge” meme, after she passed away in July. The announcement of a new dog spurred the creation of numerous NEIRO tokens on Solana and Ethereum at the time — with two such tokens surging to hundreds of millions in market capitalization and enjoying active communities as of Wednesday. |
The Takeaway: Bhutan's Bitcoin Push |
By Hyla Fund's Paola Origel:
As nations explore the implications of digital currencies, Bitcoin is becoming part of national strategies. El Salvador made headlines as the first country to adopt Bitcoin as legal tender, while the United States is considering a national Bitcoin reserve. Even China, despite its cautious stance on cryptocurrency, has embraced blockchain technology to support its digital yuan. Amid these changes, Bhutan stands out — not by following global trends, but by charting its own path.
Nestled in the Himalayas between China and India, Bhutan has long defied conventional economic models. Instead of prioritizing Gross Domestic Product (GDP), the country measures success using Gross National Happiness (GNH), focusing on the well-being of its citizens. Under the leadership of King Jigme Khesar Namgyel Wangchuck, Bhutan is now integrating blockchain and Bitcoin into its vision for sustainable development. Projects like the creation of a "Mindfulness City" in Gelephu highlight Bhutan's approach to merging technology, culture, and sustainability. I have been fortunate to visit Bhutan twice in recent years, and from the moment I first arrived, I felt an unshakable connection to the country. During my visit to Bhutan’s tech park in Thimphu, I engaged in several conversations about the “Mindfulness City” initiative and learned about bitcoin mining in Bhutan. While the country has been discreet about its Bitcoin mining operations, its growing interest in the field is undeniable. Bhutan is not only preserving its rich traditions but also boldly embracing emerging technologies as tools to advance its unique development philosophy. Druk Holding and Investments (DHI), Bhutan’s investment arm, and Green Digital Limited (GDL) began Bitcoin mining when prices were around $5,000. Today, Bhutan’s Bitcoin reserves exceed $1 billion, making it one of the largest sovereign holders of digital assets, according to Bitwise Europe. As of 2023, these holdings represent approximately 34.48% of the country's $2.9 billion GDP, according to World Bank data. This reflects Bhutan’s strategic use of cryptocurrency as an economic asset. Bhutan is expanding its mining infrastructure through a phased development pipeline with Bitdeer Technologies Group. The first phase, with a capacity of 100 megawatts, is already operational. A second phase aims to add 500 megawatts by mid-2025. The project is powered by Bhutan's abundant hydropower resources, ensuring mining is both sustainable and efficient. The $500 million fund established in May 2023 with Bitdeer underscores Bhutan’s focus on attracting foreign direct investment (FDI) and strengthening its position in the global Bitcoin mining landscape.
Read the full article here.
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