• Congressmen Mike Flood and Wiley Nickel wrote an op-ed titled ‘It’s time to overturn SAB 121’, arguing that keeping banks on the sidelines and preventing them from taking custody of digital assets is doing the opposite of the SEC’s stated aim, which is to protect retail investors.

• Politico reports on the Democrats that ‘broke with Elizabeth Warren’ in the Senate to for overturning SAB 121. All of which makes us wonder just how many people are left in Warren’s ‘Anti-Crypto Army’.

• The Crypto Council for Innovation wrote a letter to House Speaker Mike Johnson in support of ‘FIT21’ - legislation that would provide clearer guidelines on the extent to which digital assets are regulated by different agencies (i.e. SEC, CFTC).

• Coinbase published a research report titled ‘Expectations on Ethereum’, in which they argue that spot ETF approval is a “a question of when, not if.” Makes them more optimistic than just about everyone else.

• Balaji Srinivasan argues that (checks notes) governments are going to build killer AI drones, so the most important ‘AI Safety’ measure we can take is putting smart contracts that control the drones on-chain, and then storing the privates keys that control those smart contracts in cold wallets. The future is here, folks.

The Whales just cannot be stopped at the moment. Bottomless hunger. Strong week from the fish too.

MSTR had another wild day, up 10%.

🇺🇸 United States

🥇Fidelity

FBTC led the pack with another powerful day of inflows, taking in just under $100m (1490 BTC).

🥈 BlackRock

IBIT had a strong Friday too, with inflows of 570 BTC ($222m).

🥉 Grayscale

GBTC recorded their third inflow day in a row. Which is not something I thought I’d ever write. They pulled in 478 BTC ($32m).

👏 Bitwise

BITB had an admirable end to the week too, with inflows of 315 BTC ($21m). Hunter Horsley posted a triumphant update, showing that they’ve had $127m inflows on the week and hold over 35k BTC total.

🧮 Total

Friday was another heavy inflows day. No outflows to be seen anywhere. Collectively they added 3.3k BTC for a cool $222m.

🇭🇰 Hong Kong

Slow day over in Hong Kong on Friday. AMC lost 6 BTC ($400k), and Harvest was flat. Bosera hadn’t reported by publish time, so we’ll just assume that no news is no news.

Here’s one more quick look at the 13F filings, before our detailed breakdown in Deep Flow, coming Monday.

The vast majority of entities filing were RIAs, with a smaller cohort of ‘investment funds’ (mutual funds, multi-strategy funds, banks).

Hedge funds were a smaller cohort still, and as you can see have a majority of the holdings so far.

Safe to say they’re not HODLers though.

Many of those funds will be market-neutral or long/short. Over time as we collect more data we’ll provide more insight into the true nature of the hedgies’ positions.

That’s the state of bitcoin flows for this Saturday.

I’ll see you back here next week.

— Julian