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Bitcoin touched as high as $64,000 this week with a monthly gain of more than 44%, the largest since December 2020.
The rally comes as the approval and launch of spot Bitcoin exchange-traded funds in the US has opened the asset class to new investors and reignited the excitement.
The demand for investing in spot Bitcoin ETFs has reached new highs, with BlackRock’s iShares Bitcoin Trust (ticker IBIT) netting $612 million on Wednesday in its biggest one-session haul.
Here are this week’s important crypto stories:
Bitcoin Surges Toward $64,000
The crypto market saw a strong rally this week led by Bitcoin. The leading cryptocurrency continued its surge on Wednesday, shooting above $63,000 for the first time since November 2021.
The flagship cryptocurrency also briefly touched $64,000 before turning lower. Bitcoin has soared nearly 20% this week alone, after a week-long pause of this year’s rally. It’s now up more than 40% for 2024.
Bitcoin surges, briefly touching $64,000 for the first time since November 2021 (CNBC)
Bitcoin Hits ATHs Against Some Fiat Currencies
Bitcoin has already breached record highs in local currencies in many markets around the globe. The US dollar index (DXY) is ahead 10.7% since November 2021, meaning many currencies worldwide have lost value.
Among the countries where Bitcoin has hit new highs in local terms are economic powerhouses like China, Japan, the UK, and India, as well as developing markets like Argentina, Turkey, and Egypt.
In thirty countries representing 60% of the world's population and 30% of its GDP, Bitcoin has passed all-time highs. pic.twitter.com/K72NOBiAMB
— Balaji (@balajis) February 28, 2024
Bitcoin’s Rally Crashes Coinbase
The growing demand for Bitcoin turned out to be bad news for Coinbase, the crypto trading app that crashed and showed a zero balance for customers across their Coinbase accounts.
“Your assets are safe,” the firm assured the app’s users via a Status page on its website.
Amid Ferocious Bitcoin Rally, a Coinbase Snafu Shows $0 Balances for Customers (CoinDesk)
El Salvador’s Bitcoin Value Up 40%
El Salvador’s Bitcoin holdings are worth more than $147 million, a profit of more than 40%, according to President Nayib Bukele. “Now that # Bitcoin’s market price is way up if we were to sell, we would make a profit of over 40%,” he wrote in a post on X, adding that they don’t plan to sell.
When #Bitcoin’s market price was low, they wrote literally thousands of articles about our supposed losses.
Now that #Bitcoin’s market price is way up, if we were to sell, we would make a profit of over 40% (just from the market purchases), and our main source of BTC is now our…
— Nayib Bukele (@nayibbukele) February 28, 2024
Spot Bitcoin ETFs See Record Inflows
As Bitcoin surges toward new highs, there has been a renewed rush of money into the ETFs, particularly BlackRock’s IBIT. On Wednesday, IBIT netted $612 million in its biggest one-session haul, breaking a record set just a day prior.
Altogether, the ten new exchange-traded funds investing directly in the world’s biggest cryptocurrency took in a net $673 million, even with the outflows seen by Grayscale Bitcoin Trust (GBTC). The cash pouring into the funds beat their launch day record of $655 million set on January 11.
Bitcoin ETF Record Gets Broken Yet Again on $612 Million Inflow (Bloomberg)
GBTC Saw $7.4 Billion in Outflows in First Month
The Grayscale Bitcoin Trust (GBTC), the world’s largest Bitcoin ETF, has seen continued outflows for an entire month. The fund witnessed $7.4 billion exiting the fund across 31 consecutive trading days as of Monday.
Grayscale Bitcoin Trust (GBTC) Saw $7.4 Billion in Outflows over First 31 Trading Days (Cryptonews.com)
Bank of America’s Merrill Lynch and Wells Fargo ‘Offer Spot ETFs’
Bank of America’s Merrill Lynch and Wells Fargo are apparently offering spot Bitcoin ETFs to eligible wealth management clients. The ETFs have been available to clients for weeks, a source familiar with Bank of America’s plans told Reuters.
BofA’s Merrill, Wells Fargo offering spot bitcoin ETFs to clients (Reuters)
Morgan Stanley Considering Offering Spot ETFs
Morgan Stanley is considering adding spot Bitcoin ETFs to its brokerage platform and is currently conducting due diligence. Since the SEC approved the products, the US broker-dealer platform has been evaluating offering spot Bitcoin ETFs to clients.
Morgan Stanley Evaluating Spot Bitcoin ETFs for Its Giant Brokerage Platform: Sources (CoinDesk)
BlackRock to Launch Bitcoin ETF in Brazil
BlackRock is set to launch its first Brazilian Bitcoin ETF, iShares Bitcoin Trust BDR (IBIT39), on B3, Brazil’s major stock exchange, as reported by Brazilian financial news site InfoMoney.
The launch is happening at a time when Brazil’s interest in crypto investments is skyrocketing.
BlackRock’s Spot Bitcoin ETF To Start Trading in Brazil Tomorrow (Nasdaq)
BitForex Pauses Withdrawals
Hong Kong-based crypto exchange BitForex has halted withdrawals for at least three days without giving a reason. On the day before the halt, around $56 million in crypto had been withdrawn from the exchange’s wallets.
Crypto exchange BitForex halts withdrawals stops responding to users (Cointelegraph)
Gemini to Return $1.1B to Consumers
Gemini Trust Company, the cryptocurrency exchange founded by billionaires Cameron and Tyler Winklevoss, will return $1.1 billion to customers who invested in its defunct loan program.
Gemini will also pay a $37 million fine to the New York State Department of Financial Services (NYDFS) for “significant failures that threatened the safety and soundness of the company.”
Gemini crypto exchange to return $1.1 billion to consumers pay fine in regulatory settlement (Fox Business)
Nigeria Detains Binance Executives
Nigeria has detained two executives of the Binance crypto exchange after they flew into the country. The two were detained by the country’s Office of the National Security Adviser, and their passports seized, the Financial Times reported, citing people familiar with the matter.
Nigeria detains Binance executives in cryptocurrency crackdown (Financial Times)
Nigeria Fines Binance Record $10 Billion
The Nigerian government has imposed a staggering $10 billion fine on Binance as part of a crackdown on the platform in an effort to stabilize the nation’s local currency. Bayo Onanuga, the special adviser on information and strategy to President Bola Tinubu, revealed the fine in an interview with the BBC.
Nigeria govt slams $10 billion fine on Binance (Premium Times)
The Bottom Line
This week in crypto has seen a significant surge in Bitcoin’s value, reaching highs not seen since November 2021 and marking a substantial monthly gain. The momentum is primarily attributed to the growing demand for spot Bitcoin ETFs in the US, with BlackRock’s IBIT experiencing a record single-session inflow.
