Crypto Headlines of the Week: Outflows, ETF Ad, $40 Bitcoin Fees

KEY TAKEAWAYS

After 11 consecutive weeks of inflows, digital asset investment products saw outflows of $16 million, dampening the mood within the crypto community. However, the atmosphere somewhat changed when Bitwise introduced an advertisement featuring Jonathan Goldsmith, who endorsed Bitcoin as an intriguing investment.

It has been another wild week in crypto. The week started with the news that digital asset investment products witnessed outflows of $16 million in the previous week, putting an end to an 11-week streak of consecutive inflows. 

While the outflow news may have left a bad impression on the crypto community, a Bitwise advertisement for a spot Bitcoin ETF managed to change the atmosphere a little bit. The ad, starring Jonathan Goldsmith, the actor best known as the “Most Interesting Man in the World”, praised Bitcoin as something “interesting”. 

Here is a brief recap of the week’s most important crypto stories:

Crypto Products See Outflows After 11 Consecutive Weeks of Inflows

Digital asset investment products witnessed outflows of $16 million last week, putting an end to an 11-week streak of consecutive inflows. According to the latest report by CoinShares, Bitcoin-based funds bore the brunt of the outflows, with a total of $32.8 million exiting the market. Additionally, short Bitcoin investment products also suffered outflows, reaching $0.3 million. 

Volume 162: Digital Asset Fund Flows Weekly Report (CoinShares)

Bitwise Ad Takes Crypto Twitter by Storm

On Monday, Bitwise Asset Management unveiled the first advertising for a spot Bitcoin ETF, which took the crypto Twitter by storm. “You know what’s interesting these days,” reads Jonathan Goldsmith, the actor best known as the “Most Interesting Man in the World” from numerous Dos Equis beer advertising campaigns. “Bitcoin.”

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BONK Surge Sparks New Interest in Solana’s Mobile

Solana Mobile announced Friday that it had sold out of its Saga phones in the US market. The sudden burst of demand came from 30 million BONK tokens allocated to the new owners, with the meme coin surging to new highs as of late. That opened up an arbitrage opportunity for potential Saga buyers; the cost of the phone could be fully offset by the value of the BONK the Genesis NFT would unlock.

Solana fans suddenly BONKers over the Saga phone (Blockworks)

Revolut to Temporarily Pause UK Business

Revolut is set to pause some of its cryptocurrency services in the UK to adjust to new marketing rules from the City regulator. The pause will mean that Revolut’s UK business customers cannot buy crypto assets through Revolut from January 3 for a period of time. However, they can still hold or sell crypto through Revolut Business.

Revolut to pause crypto buying for UK business customers (Tech.eu)

Do Kwon’s Extradition Delayed 

Do Kwon will not be imminently extradited to either the US or South Korea after an appeals court in Montenegro annulled an earlier ruling. The Court said there were “significant breaches of criminal proceedings,” while the reasoning behind last month’s ruling to extradite the Terraform Labs co-founder was unclear.

Do Kwon Extradition Appeal Ruling Returns Case to High Court (Bloomberg)

Bitcoin Fees Surge to as High as $40

The average Bitcoin transaction fee spiked to nearly $40 earlier this week. The primary cause of this spike can be attributed to increased network activity. The Bitcoin network saw a surge in transactions due to the popularity of BRC-20 tokens and Bitcoin ordinal inscriptions, leading to increased congestion.

Bitcoin Fees Surge Reinforcing The Network’s Antifragility (Forbes)

Ledger Pledges to Reimburse Hack Victims

Hardware cryptocurrency wallet provider Ledger has pledged to reimburse all affected users in the aftermath of the Ledger Connect Kit exploit. “We commit, by any way possible, including gestures of goodwill, to make sure this is done by the end of February 2024,” the company said. 

Ledger crypto wallet vows to reimburse users after Connect Kit exploit (Cointelegraph)

ETF Providers Opt For Cash Redemption in Their Filings

Major ETF providers have revised their spot Bitcoin ETF filings to include cash redemption models, signalling a shift in response to SEC demands. BlackRock, ARK Invest, and other firms have recently switched from various in-kind redemption models to cash redemption in their filings. The move comes as the Securities and Exchange Commission (SEC) deadline of January 10 to approve or deny a spot Bitcoin ETF is fast approaching.

BlackRock, ARK Invest, and Others Opt for Cash Redemption After SEC Pushback (Cryptonews.com)

Court Orders to Freeze Over $1 Billion Assets Belonging to 3AC Founders

A British Virgin Islands court has ordered the freezing of over $1 billion in assets belonging to 3AC co-founders Su Zhu and Kyle Davies. The announcement came one day after a domestic freezing order was issued by a court in Singapore. 3AC operated out of Singapore but filed for bankruptcy in the British Virgin Islands.

Autism may be the only asset left for 3AC founders after $1B frozen (Protos)

India’s Crypto Regulations Backfire: WazirX Sees Drastic Decline in Volume

India’s controversial crypto-related tax laws, which include a 30% tax on gains and a 1% deduction on each crypto transaction, have hampered the country’s digital asset industry. For one, it has led to a 97% decline in WazirX’s trading volume compared to 2021. 

India’s Crypto Regulation Backfires: WazirX Sees 97% Trading Volume Drop (Techopedia)

The Bottom Line

After 11 consecutive weeks of inflows, digital asset investment products saw outflows of $16 million, dampening the mood within the crypto community.

However, the atmosphere somewhat changed when Bitwise introduced an advertisement featuring Jonathan Goldsmith, who endorsed Bitcoin as an intriguing investment. 

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Ruholamin Haqshanas

Ruholamin is a crypto and financial journalist with over three years of experience. Apart from Techopedia, he has been featured in major news outlets, including Cryptonews, Investing.com, 24/7 Wall St, The Tokenist, Business2Community, and has also worked with some prominent crypto and DeFi projects.  He holds a Bachelor's degree in Mechatronics. Ruholamin enjoys reading about tech developments, writing, and nature-watching