Bitcoin ETFs make a splash with $4.5B volume, Wall Street hesitates on crypto, Circle eyes IPO, and Solana MEV bot hits the jackpot.
Bitcoin ETFs Reach $4.5B Volume on First Trading Day

Bitcoin ETFs Reach $4.5B Volume on First Trading Day

Jan 13, 2024
| Issue

Welcome to the final edition of Datawallet Daily for the week. As always, we’ve curated the must-know crypto stories from the last 24 hours just for you:

Spot Bitcoin ETFs Reach $4.5B Volume on First Trading Day

On the first day of trading, Spot Bitcoin ETFs witnessed a staggering $4.5 billion in volume, led by giants Grayscale, BlackRock, and Fidelity. Grayscale’s Bitcoin Trust dominated with $2.3 billion traded, followed by BlackRock’s and Fidelity’s funds. Contrarily, Hashdex’s ETF didn’t launch due to pending SEC approvals. Bloomberg analysts suggest a majority of the trades were sales, as investors shifted to newer, more cost-effective ETFs. The market anticipates purchasing about 47,000 Bitcoins, valued at $2.1 billion, to balance this shift. 

Wall Street Firms Restrict Client Access to New Bitcoin ETFs

Several prominent Wall Street firms, including Vanguard, Merrill Lynch, Edward Jones, and Northwestern Mutual, are restricting retail investors’ access to new spot Bitcoin ETFs. This move comes despite the SEC’s recent approval for these ETFs. The decision to limit these investment options has led some clients, to consider transferring funds to institutions offering Bitcoin ETFs. 

Vanguard, in particular, justified its stance by saying Bitcoin ETFs don’t align with its investment philosophy, citing the speculative and unregulated nature of crypto. Merrill Lynch, while currently disallowing investment in these ETFs, hasn’t ruled out future policy changes. The cautious approach by these firms reflects a broader hesitation within traditional finance to fully embrace cryptocurrency investments.

Circle, USDC Issuer, Files for IPO in U.S.: Report

Circle, the issuer of USD Coin (USDC), has confidentially filed for an IPO in the United States, as reported by Reuters. While the filing marks a step towards becoming a publicly traded company, Circle hasn’t disclosed the number of shares or the price range for the IPO. Previously, Circle planned to go public via a merger with Concord Acquisition Corp, a deal initially valued at $4.5 billion and later $9 billion, but it was called off. Circle’s move to list publicly aligns with its long-term strategy, with the USDC stablecoin already boasting a $25 billion market capitalization.

Solana MEV Bot Earns $1.8M by Back-Running Memecoin Trader

A MEV arbitrage bot, known as 2Fast, earned $1.8 million in just 20 seconds by exploiting a back-running strategy on the Solana network. The bot transformed an investment of 703 SOL (about $70,000) into 19,035 SOL (approximately $1.9 million). This strategy targeted trades of the meme coin dogwifhat (WIF). The profit included an 890 SOL tip to the network validator, Figment. The substantial gain resulted from a trader’s error in a low-liquidity pool, leading to an overpriced purchase of WIF. Other bots also capitalized on this opportunity.

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