When the cryptocurrency market took a recent plunge, a pattern emerged: ETFs pulled out $1.6 billion, while the Bitcoin network saw $1.1 billion flow in. Crypto analyst Willy Woo pointed out this stark contrast on social media, suggesting that self-custody investors are seizing opportunities that ETF holders are passing up. The trend underlines a burgeoning confidence among individuals who manage their own Bitcoin, viewing dips as prime buying opportunities. This behavior starkly differs from the more conservative stance of ETF investors, possibly newer to the crypto arena, who may be quick to sell off assets amid volatility. The willingness of Bitcoin holders to “buy the dip” signals a strategic approach to cryptocurrency investment, one that endorses the long-term potential of digital assets over short-term market tremors. This divide not only highlights the different investment philosophies within the crypto world but also illustrates the unshakable faith of the Bitcoin community in the face of fluctuating market conditions.

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FTX’s collapse demonstrated the wisdom of segregating the activities of market making on the one hand (Alameda) from those of running an exchange (FTX) and a custodian (FTX again) on the other. However, the question of whether to segregate the activities of operating an exchange and a custodian is more nuanced. Large banks often run their trading businesses and their custody businesses in the same legal entity, using information walls to control for conflicts of interest and ensuring that their own assets are segregated from those of their clients. This paper will use the experience of the US grain industry in the late nineteenth century to illustrate the importance of controlling the…

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Bitcoin is a completely decentralized system, there is no ability to reverse payments, and there is no customer support line where you can call for help if you mess something up. When you take self-custody of your own Bitcoin, you and only you are responsible for the safety of your funds. Self-custody also means that no one can freeze your funds, and no one can stop you from making a payment you want to make. It’s a double-edged sword: there are huge benefits to self-custody, but it also comes with responsibility.

If you make a mistake and send Bitcoin to the wrong address there is no undoing it. Then if someone can access your seed phrase (seed words), there is no customer support to…

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The recent developments in Bitcoin spot Exchange-Traded Funds (ETFs) have caught the attention of investors and experts alike. Samson Mow, a renowned advocate for the ascent of Bitcoin to $1 million, has weighed in on the significant outflows witnessed from these investment vehicles.

Record Net Outflow

Over the span of just three days, a staggering $742 million has left the 10 bitcoin spot ETFs, marking the highest outflow since their introduction in January. This abrupt reversal in sentiment contrasts sharply with the massive demand that had recently propelled bitcoin to its all-time high.

According to BitMEX Research, the ETFs experienced consecutive outflows of $154 million, $326…

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WisdomTree, a leading global financial firm, has secured a charter from the New York State Department of Financial Services. This major step allows WisdomTree to operate as a trust company, significantly advancing its role in the digital assets field. With this charter, WisdomTree can now offer fiduciary custody of digital assets, including digital wallet services, issue and manage state-approved stablecoins, and oversee stablecoin reserves. This positions WisdomTree at the forefront of the industry’s move towards blockchain-enabled financial services.

Jonathan Steinberg, the company’s founder and CEO, highlighted the importance of this authorization, emphasizing its role in allowing the company to lead in the evolving digital asset industry without compromising customer protection. WisdomTree Digital Trust Company, under the charter, is set to launch WisdomTree Prime in New York, offering customers a unified platform for saving, spending, and investing digitally. This initiative not only marks WisdomTree’s entrance into New York’s digital asset market but also sets a high standard for compliance and customer protection in the digital finance arena.

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According to a report by Coinbase, the popular exchange, the upcoming halving which reduces miners’ block rewards from 6.25 BTC to 3.125 BTC, is set to have profound effects on the market. The report compares previous bitcoin halving charts to the one that is scheduled for next month, indicating massive upward potential for the digital asset.

Understanding the Bitcoin Halving

Bitcoin, the world’s leading digital asset, is set for its next halving event in mid-April 2024. This event, which occurs roughly every four years, has garnered significant attention from investors worldwide. The Bitcoin halving is a fundamental aspect of the revolutionary digital asset’s protocol, designed to…

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Ripple’s CEO, Brad Garlinghouse, has made a bold statement on X social media, forecasting the U.S. Securities and Exchange Commission’s (SEC) defeat in its conflict with Ethereum, the world’s second-largest cryptocurrency. Garlinghouse believes the SEC is significantly behind in the courtroom and lacks behind international standards in cryptocurrency regulation. The SEC has been actively trying to classify Ethereum as a security, sparking an investigation into the Ethereum Foundation. Amidst these tensions, Coinbase’s chief legal officer, Paul Grewal, debunked “misinformation” about Ethereum, emphasizing its crucial role in the crypto economy and highlighting the SEC’s inconsistent regulatory approach. Garlinghouse also pointed out the SEC’s regulatory skirmishes with other agencies, such as the CFTC. This month, U.S. senators cautioned the SEC against approving more ETFs for cryptocurrencies, suggesting the agency’s efforts to satisfy crypto critics in Washington. Legal experts view these moves as the SEC’s strategy to mollify skeptics amid ongoing regulatory debates.

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