Global Hive Buzz

Genesis is seeking approval to vend holdings of Bitcoin and Ether Trust amounting to $1.6 billion.

On Friday, the insolvent cryptocurrency lender Genesis filed a motion in the U.S. seeking approval from a judge for the sale of Grayscale's trust products, encompassing over $1.6 billion in bitcoin (BTC), ether (ETH), and Ethereum Classic (ETC). If the motion receives approval, it could introduce a substantial amount of selling pressure on the bitcoin market, reminiscent of the January scenario where FTX, an insolvent exchange, liquidated over $1 billion in GBTC holdings, coinciding with a drop in price from $49,000 to $39,000.

Gemini, Genesis' primary creditor, estimates that the bankruptcy affects more than 100,000 of its users, collectively owed between $1 billion and $10 billion. Additionally, Genesis owes over $3.5 billion to its top 50 creditors, including entities such as trading giant Cumberland, Mirana, MoonAlpha Finance, and VanEck's New Finance Income Fund.

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In January, Bitcoin exchange-traded funds (ETFs) from BlackRock and Fidelity entered the top 10, attracting a significant inflow of $4.8 billion.

BlackRock's iShares Bitcoin Trust secured the eighth position, boasting an impressive $2.6 billion in net inflows. Following closely behind, the Fidelity Wise Origin Bitcoin ETF claimed the tenth spot with a substantial influx of $2.2 billion, as reported by Morningstar research analyst Lan Anh Tran on February 3.

This positive momentum sharply contrasts with the Grayscale Bitcoin Trust, which encountered the second-highest outflows among ETFs, experiencing an estimated loss of $5.7 billion.

The landscape of U.S. spot Bitcoin ETFs has exhibited dynamism, witnessing six consecutive days of net positive inflows totaling nearly $715 million, primarily directed toward BlackRock and Fidelity's funds. This period of gains follows a series of outflows, particularly from Grayscale's fund, which saw a significant reduction in outflows over the same week.

Weekly inflows for crypto funds surpass $700 million, while there is a reduction in exits from GBTC.

According to a report by CoinShares on February 5, crypto investment products witnessed inflows of $708 million in the past week, bringing the year-to-date total to $1.6 billion. Bitcoin (BTC) continues to be the primary recipient of investment, attracting $703 million last week, constituting 99% of the overall inflows.

In contrast, short-bitcoin products experienced minor outflows of $5.3 million, aligning with positive shifts in price dynamics. Other digital assets showed varied results, with Solana seeing inflows of $13 million, outperforming Ethereum and Avalanche, which faced outflows of $6.4 million and $1.3 million, respectively.

Additionally, the total global assets under management have reached $53 billion. Although trading volumes for Exchange-Traded Products (ETPs) declined to $8.2 billion from the previous week's $10.6 billion, these figures significantly surpass the 2023 weekly average of $1.5 billion, representing 29% of Bitcoin's total trading on reputable exchanges.

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