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Last week, the State of Wisconsin Investment Board (SWIB) revealed substantial Bitcoin ETF investments, exposing the Wisconsin Retirement System to bitcoin. MicroStrategy's inclusion in a major equity index signals its growing influence. Grayscale's surprising inflow underscores renewed investor interest in Bitcoin ETFs. Additionally, CME eyes spot Bitcoin trading for institutional investors, while IBEX Pay halts U.S. operations. El Salvador's geothermal bitcoin mining and Millennium Management's leading Bitcoin ETF investments also stand out. However, the U.S. Senate's challenge to the SEC's crypto policy faces a potential Biden veto, adding regulatory uncertainty. For more details, continue reading below.
A. Bitcoin Ecosystem
1. Wisconsin Investment Board reveals major holdings in bitcoin ETFs
2. MicroStrategy enters key global equity index
3. Grayscale GBTC sees surprising inflow 3 days in a row
4. CME plans to dive into spot bitcoin trading, targeting institutional investors
5. IBEX Pay halts US operations by May 31, advises clients to prepare for withdrawals
6. El Salvador mines 474 bitcoin using geothermal volcanic energy
7. Millennium Management leads $1.9 billion bitcoin ETF investments
B. Regulation
1. Turkey introduces crypto bill aligning with international standards
2. US Senate challenges SEC's crypto policy in historic vote, confronts Biden Veto threat
C. Macroeconomy
1. Fed holds rates, adjusts balance sheet tapering in latest FOMC meeting
2. Fed balance sheet expansion suggests debt monetization
D. Bitcoin Data Dashboard
1. Bitcoin Transactions
2. Supply
3. Mining
4. Transaction Fees
5. Lightning Network (public)
A. Bitcoin Ecosystem
1. Wisconsin Investment Board reveals major holdings in bitcoin ETFs
The State of Wisconsin Investment Board (SWIB) has revealed its investments in spot Bitcoin exchange-traded funds (ETFs) offered by Grayscale and BlackRock. In a filing with the United States Securities and Exchange Commission on May 14, SWIB disclosed holding more than 2.4 million shares in the BlackRock iShares Bitcoin Trust (IBIT) and over 1 million shares of Grayscale Bitcoin Trust (GBTC), valued at approximately $100 million and $64 million, respectively. This indicates potential exposure to bitcoin investments for the Wisconsin Retirement System through these asset management firms. SWIB manages over $156 billion in assets as of December 2023, with nearly half allocated to public equity investments.
Reference: Cointelegraph
2. MicroStrategy enters key global equity index
MicroStrategy, a prominent business intelligence company and the largest corporate holder of bitcoin, has earned a spot in a major global equity index following a significant uptick in its stock price. On Tuesday, MSCI (originally Morgan Stanley Capital International), a leading provider of investment decision support tools and equity indexes, announced MicroStrategy as one of the three largest additions by market capitalization to its MSCI World Index, effective May 31. With its most recent bitcoin acquisition on April 29, MicroStrategy now boasts a hefty holding of 214,400 bitcoins, currently valued at around $13.5 billion. These acquisitions were made at an average cost of $35,180 per bitcoin, yielding the company a paper profit of approximately $6 billion. MicroStrategy's stock price has seen a remarkable surge since hitting lows alongside the bitcoin market in December 2022. The company's shares have skyrocketed more than eightfold since then and have soared over 128% year-to-date, outperforming bitcoin's 45% gains in 2024.
Reference: The Block, TradingView
3. Grayscale GBTC sees surprising inflow 3 days in a row
According to Farside data, Bitcoin exchange-traded funds (ETFs) recently saw their biggest inflow since May 3, raking in a hefty $303 million on May 15. Almost all ETFs witnessed positive inflows, except for BlackRock IBIT and Hashdex DEFI Bitcoin ETF. Leading the pack was Fidelity FBTC, boasting an impressive inflow of $131.3 million, bringing its total net inflows to a whopping $8.3 billion. Bitwise BITB also had a strong showing, with an inflow of $86.3 million, pushing its total net inflow to $1.9 billion. But the real eye-opener was Grayscale GBTC, which recorded an inflow of $27 million, marking only the third time it's seen such a move and reducing its total outflows to $17.7 billion. GBTC keep continue its inflow for next two days for $4.6 and $31.6 million. Overall, total net inflows reached $12.6 billion untill May 17th, as per Farside data. Adding to the excitement, heyapollo data reveals that on May 15 alone, a whopping 4,600 BTC were accumulated through these ETFs. This influx surpasses the daily mining reward by over ten times.
Reference: Farside, Cryptoslate
4. CME plans to dive into spot bitcoin trading, targeting institutional investors
The Chicago Mercantile Exchange (CME), known as the big cheese of futures exchanges worldwide, is gearing up to jump into the world of spot bitcoin trading. According to a report from the Financial Times, they're eyeing this move to give major hedge funds and institutional traders a legit place to trade Bitcoin. CME's already a big shot in the Bitcoin futures game globally. Now, by adding spot bitcoin trading, they're aiming to offer their clients a one-stop-shop, with both spot and derivatives markets under one roof. CME wants to be the go-to for the big leagues—the institutional investors who want everything done by the book, with strict rules and regulations. Apparently, CME's been chatting it up with traders who are itching to trade bitcoin but want the safety of a regulated environment.
Reference: Bitcoin Magazine
5. IBEX Pay halts US operations by May 31, advises clients to prepare for withdrawals
In a recent announcement posted on X.com, IBEX Pay revealed its decision to suspend all services in the United States by May 31, 2024. The company advised clients to ensure their outstanding balances are linked to Swan accounts or Bitcoin addresses to streamline the withdrawal process. IBEX Pay, known for facilitating Bitcoin payments via the Lightning Network, boasts of lower fees ranging from 0.5% to 1%, offering solutions for various sectors like merchants’ point of sale, eCommerce, donations, and sports.
Reference: PYMNTS
6. El Salvador mines 474 bitcoin using geothermal volcanic energy
Since 2021, El Salvador has harnessed the power of its Tecapa volcano to mine a total of 474 Bitcoin, valued at $29 million. The mining operation, powered by 300 processors, taps into 1.5 megawatts (MW) of the state-owned power plant's 102 MW capacity. In the midst of growing concerns about bitcoin mining's environmental impact, El Salvador has positioned itself as a leader in renewable energy mining. The country made waves in 2021 by adopting bitcoin as legal tender alongside the US dollar and has since implemented various bitcoin-focused initiatives, including the establishment of a geothermal plant dedicated to bitcoin mining. Today, El Salvador holds 5,750 bitcoin, worth approximately $354 million. Despite criticism from global organizations like the World Bank, President Nayib Bukele has stood firm in his support of Bitcoin.
Reference: Cointelegraph
7. Millennium Management leads $1.9 billion bitcoin ETF investments
Hedge fund Millennium Management reveals its Bitcoin ETF holdings, emerging as the largest investor among recent launches, with $1.9 billion invested. The fund allocated $844.2 million to BlackRock’s iShares Bitcoin Trust (IBIT), $806.7 million to Fidelity’s Wise Origin Bitcoin Fund (FBTC), $202 million to the Grayscale Bitcoin Trust (GBTC), $45.0 million to the ARK 21Shares Bitcoin ETF (ARKB), and $44.7 million to the Bitwise Bitcoin ETF (BITB). Over 600 firms reveal billions in combined investment in Bitcoin ETFs through their 13F filings with the United States Securities and Exchange Commission (SEC), indicating a grate inflow for bitcoin institutional adoption.
Reference: Cointelegraph
B. Regulation
1. Turkey introduces crypto bill aligning with international standards
Turkey's ruling party introduced a crypto bill to parliament on May 16, focusing on licensing and registration for crypto service providers to align with international standards. The draft legislation, per Reuters, aims to comprehensively regulate the cryptocurrency market, emphasizing consumer protection, platform transparency, and compliance with financial regulations. It mandates licensing from Turkey’s Capital Markets Board (CMB) for crypto trading platforms and other service providers, encompassing asset service providers, platform operations, storage, and transactions by Turkish residents. Key provisions include enhanced CMB oversight, mandatory revenue collection, and a ban on foreign brokers, aiming to align Turkey with international standards and address FATF concerns for a more secure crypto market.
Reference: Gulfbusiness, Cointelegraph
2. US Senate challenges SEC's crypto policy in historic vote, confronts Biden Veto threat
In a 60-38 vote, the U.S. Senate aligned with the House of Representatives to challenge the SEC's controversial crypto policy, SAB 121, which imposes hefty costs on financial institutions offering crypto custody. However, President Joe Biden has pledged to veto the resolution, raising uncertainty over its fate. SAB 121 requires companies holding customer crypto assets to include them on their balance sheets, posing significant capital burdens for banks serving crypto clients. Passing the bill would allow regulated financial firms to provide custody services for Bitcoin, a move supported by Sen. Last week, the Biden Administration threatened a veto if the resolution advances, leaving the decision in President Biden's hands with a ten-day window for action
Reference: Nobsbitcoin, CoinDesk
C. Macroeconomy
1. Fed holds rates, adjusts balance sheet tapering in latest FOMC meeting
In its recent FOMC meeting held in early May, the Fed made key decisions: keeping rates unchanged and reducing the rate of quantitative tightening. Fed Chairman Powell emphasized a prolonged stance on interest rates, citing persistent or rising inflation in recent months but ruling out imminent rate hikes. Regarding the balance sheet, the Fed announced a decrease in monthly Treasury security tapering from $60 billion to $25 billion. Rather than selling securities, the Fed allows them to mature without reinvestment, with the adjusted rate slowing the balance sheet decline. Mortgage-backed securities continue to mature without reinvestment at a maximum of $35 billion monthly. Overall, this indicates a slightly dovish stance, suggesting a probable stabilization of the Fed's balance sheet by 2025, with its growth aligning more closely with GDP, irrespective of reaching the target inflation level.
Reference: Lyn Alden
2. Fed balance sheet expansion suggests debt monetization
In 2011, during testimony before Congress, Fed Chairman Bernanke asserted that Quantitative Easing (QE) did not amount to debt monetization as it wouldn't result in a permanent increase in the balance sheet. However, in hindsight, the balance sheet has expanded approximately threefold since his statement, and it now stands eight times higher than pre-crisis levels. This significant increase suggests that, by Bernanke's own definition, QE has indeed resulted in debt monetization.
Reference: x.com
learns a lot, ty