BlackRock and Fidelity spot bitcoin exchange-traded funds (ETFs) have made up a significant portion of the issuers’ total ETF inflows this year. Bitcoin ETFs have accounted for 26 per cent and 56 per cent of BlackRock and Fidelity’s year-to-date inflows, respectively, Bloomberg ETF analyst Eric Balchunas said.
According to data from Stock Analysis, BlackRock currently lists 429 ETFs with a combined total of $2.8 trillion in assets under management. Meanwhile, Fidelity lists just 70 ETFs with a combined total of $74 billion in assets under management. When GBTC was converted to spot format, Grayscale initially held 620,000 Bitcoin. However, it has since experienced a large outflow and now only holds 285,139 BTC (worth about $19.6 billion at current prices).
Bitcoin ETF flows have been somewhat stable recently, with many ETF issuers experiencing zero inflows and zero outflows in recent weeks. Grayscale's Bitcoin investment product is currently averaging $141.7 million in inflows per trading day, primarily comprised of IBIT, FBTC, and, to a lesser extent, the ARK 21Shares Bitcoin ETF (ARKB).
Binance will be toeing the line when Markets in Crypto-Assets Regulation (MiCA) rules of stablecoins (asset-referenced tokens) come into effect at the end of the month. MiCA creates uniform rules for crypto asset issuers that have not already been regulated in the European Union(EU).
The exchange aims to fulfill MiCA objectives smoothly by transitioning users from Unauthorized Stablecoins to Regulated Stablecoins over time, as more Regulated Stablecoins become available in the market. Binance will principally rely on a sell-only strategy to comply with MiCA requirements. The strategy will especially apply to the Binance Convert function for Unauthorized Stablecoins will be available in a sell-only mode.
MiCA was passed into law in May 2023. Binance may not be the first exchange to take action ahead of its implementation. In March, OKX delisted Tether in Europe without mentioning MiCA.
Hong Kong crypto exchange licenses are costing applicants several million dollars, a far cry from the $25 million witnessed a year ago. In an interview with the Financial Times, Livio Wang, chief operating officer of HashKey Group, said that the crypto exchange licenses are not necessarily tens of millions of dollars, but certainly tens of millions of Hong Kong dollars.
Since June 1, Hong Kong regulators have barred all unlicensed cryptocurrency exchanges in the East Asian city, threatening criminal prosecution for any violations. Currently, more than 11 companies are thought to be licensed. As of last year, only two fully licensed exchanges remained: HashKey and OSL.
Wang said in he interview that HashKey Exchange has managed $500 million in user assets and facilitated cumulative transactions worth $440 billion since its launch. In April, HashKey followed Coinbase in establishing a Bermuda-based global exchange for overseas users. Unlike the Hong Kong-based company, which was the first to obtain an operating license in the region, HashKey Global does not provide services to Hong Kong, China, the United States, or many other regions.
