Author: Chris Lion

Since its launch, BlackRock has consistently seen daily in millions, with minimal instances of zero inflows and even fewer outflows over the past five months.  

Making headlines today, BlackRock, the world’s largest asset manager, has announced it now holds 304,976 BTC, valued at over $21 billion, for their Spot Bitcoin ETF.   

The US-based asset manager now holds assets totaling over $21 billion, surpassing Grayscale’s Bitcoin Trust ETF (GBTC) by more than $1.6 billion.

After launching its Spot Bitcoin ETF on January 11, BlackRock has consistently seen daily inflows in millions, with minimal instances of zero inflows and even fewer outflows over the past five months.   

Blackrock and Grayscale  

Farside’s data revealed that BlackRock experienced its first inflow on January 11 following the ETF’s launch, accumulating over $111 million. Subsequently, the ETF has seen hundreds of millions in inflows, reaching its largest daily inflow of $849 million on March 12, 2024.   

On the other hand, Grayscale has experienced more outflows than inflows since its January launch. Given that Grayscale’s Spot Bitcoin ETF has seen a total of $17.5 billion in outflows, it’s no surprise that BlackRock’s IBIT has surpassed GBTC. 

According to BlockRock’s fund site data, the firm’s Spot Bitcoin ETF has gathered over 302,536 BTC, representing over 1.4% of the digital asset’s total circulating supply. In contrast, Grayscale has accumulated around 285,105 BTC and currently holds  $19.75 billion in assets.     

BlackRock’s IBIT performance speaks volumes compared to Grayscale’s Spot Bitcoin ETF. BlackRock charges a 0.25% annual fee for its Spot Bitcoin ETFs, while Grayscale’s Spot Bitcoin ETF has a high fee of 1.5%.  

The significant contrast in ETF fees has impacted GBTC’s outflows since the start of the year. Numerous investors have moved their assets from Grayscale’s Spot Bitcoin ETF to more economical alternatives like BlackRock’s IBIT.    

BlackRock Attracts Substantial Inflows In Four Days  

Furthermore, Farside noted a sharp rise in inflows for BlackRock’s Spot Bitcoin ETF, as IBIT saw four days in a row of inflows from Tuesday, June 4, to Friday, June 7.  

On June 3, BlackRock’s IBIT experienced no inflows, whereas other Spot Bitcoin ETFs, such as Fidelity Wise Origin Bitcoin Fund (FBTC), Bitwise Bitcoin ETF (BITB), and ARK 21Shares Bitcoin ETF (ARKB), saw significant inflows. 

Even though there were no inflows at the start of June, BlackRock has attracted $946 million over the past four days. On June 4, the Spot Bitcoin ETF received $274 million, followed by $155 million on June 5.

Zilliqa 2.0 supports EVM compatibility, which enables it to execute smart contracts written in languages such as Solidity and seamlessly interface with widely used wallets.  

Blockchain network Zilliqa has officially introduced the white paper and road map for its long-awaited version 2.0 upgrade, which will be deployed on the mainnet this year.

According to the official post on the X platform, the enhancement promises to increase transaction speeds and improve cross-chain compatibility. 

It’s finally here! Introducing the whitepaper and roadmap for Zilliqa 2.0 🚀

This evolution of the #Zilliqa network brings ultra-fast transactions, cross-chain dApps, and customisable shards that adapt to your needs.https://t.co/9iPSenTNQh#ZIL2 $ZIL #Zilfam #Blockchain pic.twitter.com/DmWkozSArF

— Zilliqa (@zilliqa) June 7, 2024

Zilliqa 2.0 New Features

At the heart of Zilliqa 2.0 lies its sharding structure, known as x-shards. The functionality empowers enterprises and developers to craft personalized blockchain interactions aligned with their requirements, empowering users to materialize their visions on the Zilliqa platform.

Sharding represents a technique utilized in blockchain and database frameworks to amplify the efficiency and scalability of blockchain networks. It enhances their effectiveness and capacity to process additional transactions without compromising speed.

Aside from x-shards, the white paper presents a fresh proof-of-stake consensus mechanism, replacing the energy-intensive proof-of-work system. This transition renders the network more eco-friendly, facilitating fast finality and tight security.  

According to the release, block times are flexible and can be adjusted according to preference. The primary mainnet shard boasts an average block time of only two seconds. Furthermore, the network upgrade incorporates a cross-chain communication hub, simplifying interaction among x-shards, the Zilliqa mainnet, and other Ethereum Virtual Machine (EVM)-compatible blockchains.  

Zilliqa 2.0 supports EVM compatibility, enabling it to execute smart contracts written in languages like Solidity and seamlessly interface with widely used wallets like MetaMask.  

The network will continue supporting Scilla, a smart contract intermediate-level language designed specifically for the Zilliqa blockchain. This will facilitate smooth collaboration between both contract languages. Furthermore, it will integrate functionalities such as EVM-compatible account abstraction, facilitating smart accounts and streamlined token conversions for gas fees.   

Zilliqua’s Attack 

The post noted that the network’s tokenomics had undergone updates to accommodate the transition to proof-of-stake. The adjustment offers appealing and sustainable incentives for token stakers while reducing inflation.   

Following various operational disruptions affecting block production on its mainnet, Zilliga’s white paper and roadmap have been released. However, the network has been running smoothly since full functionality restored. 

Whales have been steadily accumulating bitcoin, with addresses possessing over 1,000 BTC collectively controlling more than 40% of the total supply.

Bitcoin whales have increased their holdings, controlling over 40% of bitcoin’s total supply. The trend highlights the growing influence of these large investors on the digital asset’s market dynamics. 

Since mid-March, there has been a notable trend of large bitcoin holders accumulating more tokens. 

Whales Love Bitcoin

The latest data suggests that whale addresses now collectively owns more than 40% of the total bitcoin supply.  The ownership indicates growing confidence and conviction among wealthy investors and institutions in BTC’s future price performance, as investor sentiment remains bullish on the leading asset.  

Historically, accumulation by large holders has frequently preceded major price rallies by reducing the circulating supply and increasing scarcity.  The consistent accumulation by whales indicates their expectation that bitcoin’s value will keep rising, potentially attracting more institutional adoption and fueling the next bull run.  

Spot ETFs Driving Whale Accumulation?   

The development comes amid investors actively investing in spot Bitcoin ETFs, with Wednesday witnessing the highest inflow since March. The surge in interest aligns with BTC trading above $71,000. These investment instruments, approved by the US Securities and Exchange Commission (SEC) in January, have significantly legitimized and streamed market participation.

Farside data reveals that spot Bitcoin ETFs saw over $886 million in inflows on Tuesday. Fidelity’s FBTC led with $378 million, trailed by BlackRock’s IBIT at $270 million. Notably, Grayscale’s GBTC, usually experiencing outflows, attracted $28 million in investments. 

Recent positive global developments have boosted investor confidence in Bitcoin and the broader market. Hong Kong’s approval of Bitcoin ETFs last month and Australia’s introduction of its first direct spot Bitcoin ETF this week have contributed to this sentiment.

In a more recent development, the Thai Securities and Exchange Commission (SEC) approved One Asset Management, a local firm, to launch Thailand’s first spot Bitcoin ETF. 

The investment aims to facilitate USDT-based cross-border payments in emerging markets and innovate regulatory technology.  

Tether, the issuer of USDT, the world’s largest stablecoin, has invested $18 million in blockchain-focused financial institution firm XREX. The primary objective of the collaboration is to drive crypto innovation and stablecoin adoption.     

According to Tether’s official announcement, the collaboration aims to facilitate USDT-based cross-border payments in emerging markets and innovate regulatory technology.   

“Our collaboration with XREX will spearhead several ground-breaking initiatives, including the launch of a unique new unitized stablecoin by the Unitas Foundation and the facilitation of USDT-based cross-border payments, setting a new standard for financial accessibility and efficiency in the region,” said Paolo Ardonio, CEO of Tether.   

Launch of XAU1 Stablecoin 

In a collaborative effort aimed at empowering users with a stable digital asset, XREX has joined forces with the Unitas Foundation to launch XAU1, an innovative stablecoin pegged to the USD that boasts over-reservation with Tether Gold (XAUt). XAU1 offers customers a reliable alternative and a hedge against inflationary pressures. 

The advancement promises to provide businesses with “increased efficiency and potentially reduced costs” when conducting cross-border transactions.   

“Tether’s strategic investment in XREX Group signifies our unwavering commitment to fostering financial inclusion in the emerging markets,” Ardoino said.  

The announcement noted that the recent investment reflects Tether’s vision of building a robust infrastructure that transcends the boundaries of the crypto markets, as demonstrated by diversified investments across various industry sectors.    

Tether and XREX 

Wayne Huang, XREX Group CEO, noted that Tether and XREX have effectively partnered with law enforcement agencies to identify, apprehend, and prosecute criminals. The Group CEO acknowledged that with Tether’s strong support and investment, it is expanding its success into a RegTech product line that further refines XREX Group as a responsible financial institution. 

Furthermore, XREX features notable investors such as the Taiwanese Government National Development Fund, CDIB Capital Group (TWSE: 2883), SBI Holdings (TYO: 8473), E.Sun Financial Holding (TWSE: 2884), ThreeD Capital (CSE: IDK), AppWorks, BlackMarble, and New Economy Ventures. 

Meanwhile, XREX Singapore has recently obtained the Major Payment Institution license from the Monetary Authority of Singapore. XREX has been operating with Registered VASP status under the Taiwan Financial Supervisory Commission.

The U.S. lawmakers have alleged that the Nigerian government has levied “baseless” charges against Gambaryan, a Binance compliance officer and former federal agent.  

A group of U.S. lawmakers has called on President Joe Biden to intervene in securing the release of a high-ranking Binance executive, Tigran Gambaryan, detained in Nigeria.    

Nigerian authorities took the Binance executive into custody under allegations of regulatory violations and illicit financial activities.   

In a June 4 letter, 11 U.S. lawmakers urged President Biden, Secretary of State Antony Blinken, and Presidential Envoy for Hostage Affairs Roger D. Carstens to take immediate action. They stressed that Gambaryan is “wrongfully detained” by the Nigerian government and emphasized the need for swift intervention to prevent the situation from worsening. 

“We fear for his life. Immediate action is essential to ensure his safety and preserve his life. We must act swiftly before it is too late,” the U.S. lawmakers mentioned.  

The letter indicated that the U.S. lawmakers specifically requested the Special Presidential Envoy for Hostage Affairs to manage Gambaryan’s case.  

Gambaryan Numerous Baseless Charges 

The letter noted that Gambaryan faced numerous baseless charges, such as money laundering and tax evasion, which they believe are compelling tactics employed by Nigerian authorities to extort Binance.  

Gambaryan, head of financial crime compliance at Binance, traveled to Nigeria on February 26 at the Nigerian government’s invitation to discuss compliance issues and how to address them.   

While the meeting started professionally, the Nigerian Authority detained the executive at a later stage. The Binance executive is currently kept in Nigeria’s “notorious” Kuje Prison, known for its harsh conditions. He has been fighting “for his life inside a prison cell designed to hold ISIS combatants,” the U.S. politicians said.   

U.S. Lawmakers and Nigeria Government 

The U.S. lawmakers noted that the recent developments in Gambaryan’s case are “deeply disturbing.” The Binance executive was scheduled for a court hearing on May 22, and he was absent. The prosecutor and defense team were unaware of his condition.  

The following day, the court reconvened, and he was present. The court asked Gambaryan to step forward, but he could not stand alone and ultimately collapsed on the floor.   

According to the U.S. lawmakers, Gambaryan tested positive for malaria despite a court order for his transfer to a private hospital for treatment, which has not been carried out. 

The lawmakers further stated that Gambaryan has been denied meetings with his legal team unless Nigerian authorities and armed guards are present.

The tokens were initially set aside for a parachain slot on Polkadot but have become redundant and no longer serve their intended purpose. 

Popular blockchain protocol Astar Network is initiating the burn of 350 million ASTR tokens, equivalent to $38 million, to enhance its tokenization. The move aligns with the forthcoming upgrade coming to Polkadot.  

According to Astar Network, burning the reserve could benefit ASTR holders by decreasing the total amount staked, thereby increasing stakeholder rewards.  

“We believe this burning event could significantly benefit ASTR holders by decreasing the total supply and enhancing staker rewards. It is essential to emphasize that this is a suggestion from the Astar Foundation, and we aim to open up a discussion to understand the community’s sentiment,” Maarten Henskens, head of Astar Foundation, said.   

ASTR Token Supply and Allocation 

The next steps involve a three-week open forum where community members can share their thoughts on the foundation’s plan. Following this, a one-week community voting period will decide the fate of 350 million ASTR tokens, which represent 5% of ASTR’s initial supply and are currently held in the foundation’s reserves. If the proposal is approved, the tokens will be permanently burnt, and the staking rewards will be redistributed.  

Initially, the 350 million ASTR tokens were allocated from Astar’s launch on Polkadot’s parachain side chains. However, the upcoming Polkadot network upgrade, known as “Agile Coretime,” will phase out the parachain system, funded by crowd loan auctions, from the ecosystem. The development renders the reserved tokens needless, paving the way for their potential burning and reallocation, as proposed.     

Agile Coretime Upgrade 

The Agile Coretime upgrade marks a significant milestone for the Polkadot ecosystem, revolutionizing the allocation and pricing of blockspace. Unlike the traditional crowdloan mechanism, which requires users to lock up their DOT tokens for extended periods to secure parachain slots, Agile Coretime introduces a more dynamic and efficient system.    

The upgrade also enables the flexible allocation of blockspace, which allows for optimized utilization and eliminates the need for prolonged token locks.  

Upon implementation, Agile Coretime will enable projects like Astar Network to engage in dynamic bidding for blockspace, where pricing fluctuates in real time based on current demand.    

The adaptive pricing system ensures a fair and market-driven allocation of resources, aligning costs more closely with actual usage. By introducing a dynamic pricing mechanism, Agile Coretime establishes a more sustainable and predictable model for projects to secure the blockspace they need, promoting a more efficient use of resources within the ecosystem. 

The settlement removes a significant obstacle in FTX’s bankruptcy proceedings, which avoids potentially lengthy and uncertain legal battles between the failed crypto exchange and its primary creditor. 

Collapsed cryptocurrency exchange FTX has reached a significant settlement with the Internal Revenue Service for a $24 billion tax claim.  

According to Bloomberg, the $24 billion settlement is just a fraction of what the agency initially said the exchange owed. The settlement clears the part for the firm to pay out customer recoveries.    

IRS and FTX Settlement

The IRS noted that the collapsed exchange will pay $200 million within 60 days of the firm’s proposed plans to repay customers going into effect. The agency also stated that it would receive a $685 million lower priority claim, “payable on a subordinated basis to customers and other creditors and to the extent funds are available,” according to a Monday filing in the US Bankruptcy Court for the District of Delaware.   

The settlement removes a major obstacle in FTX’s bankruptcy proceedings, which avoids potentially lengthy and uncertain legal battles between the failed crypto exchange and its primary creditor.  

According to FTX, if the judge had upheld the claim, customers would not have received payments.  

“The settlement provides much-needed certainty as to the magnitude of the IRS Claims and allows these Chapter 11 Cases to move swiftly toward resolution, thereby enabling the prompt distribution to the Debtors’ other creditors and customers,” FTX stated in the Monday filing.   

FTX objected to the $24 billion claim but conceded that it may face substantial tax obligations to the IRS. Additionally, the firm acknowledged that the agency’s claims raise unprecedented legal issues. 

The settlement will come into effect once a bankruptcy judge grants approval and the comprehensive restructuring plan is implemented.   

The primary objective of the restructuring plan is to prioritize and repay customers and creditors, anticipating the return of over 90% of assets by mid-2024.     

Sam Bankman-Fried’s Conviction and Transfer 

FTX’s collapse had far-reaching consequences, affecting many stakeholders and sparking regulatory scrutiny. The firm’s former CEO, Sam Bankman-Fried (SBF), was convicted of fraud, conspiracy, and money laundering related to the exchange’s downfall.  

Meanwhile, the former CEO was moved to a new prison facility where he could be close to his parents.