Sponsor Flow State

• New York Magazine summarizes the past month or so of political developments in the crypto industry, and asks ‘Are Democrats Pivoting on Crypto?’

• Australia has banned people from gambling online with cryptocurrency. The Minister in charge said, “Australians should not be gambling with money they do not have.” Except, of course, in the most beloved of Australian casinos: the housing market.

• CryptoQuant’s Julio Moreno argues that the BTC sell-off of the past couple of days could be due to ‘miner capitulation’ i.e. bitcoin miners who are selling off their BTC reserves.

• Bitwise’s Teddy Fusaro explains how Coinbase account architecture works, and why it is not the case (contrary to some circulating rumors) that Coinbase would be rehypothecating Bitcoin ETF accounts.

• Bill Miller, Chairman and CIO of Miller Value Partners, published a blog post titled ‘Why I’m Still Betting on Bitcoin’.

Massive redistribution from Whales yesterday. Which could be consistent with the thesis that miners are feeling the pinch after the halving, and are selling off BTC to fund operations.

SMLR and CORZ defied the dip, and both posted solid gains yesterday.

🇺🇸 United States

🥇BlackRock

Let’s not sugarcoat it. Yesterday wasn’t pretty. 2% knocked off BTC isn’t the end of the world, but the ETF flows didn’t really have any redeeming action at all.

This is reflected in the fact that IBIT was equal first yesterday with net zero flows.

🔻Ark

Careful reading the ARKB chart - you might get whiplash. Yesterday it was back down again, losing 839 BTC ($56.5m)

🔻Grayscale

Yesterday’s biggest loser won’t surprise you. GBTC sent 1800 BTC packing ($121m). They’ve now lost 335k BTC since launch, and still have another 282k to go…

🧮 Total

$200m left the ETF coffers yesterday (2965 BTC). Aside from those mentioned, Fidelity had their second outflow day in a row ($7.4m), and Bitwise had their biggest outflow day for a while too ($11.7m).

🇭🇰 Hong Kong

No news in Hong Kong. Another flow-less day, for both the Bitcoin and Ethereum ETFs there.

Bitcoin ETFs

BTC vs. ETH

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

Thanks for reading, and I’ll see you tomorrow.

— Julian