The ETFs listed in the US experienced a particularly difficult day on Tuesday, with net capital outflows totaling $287.8 million.

This figure represents the largest single-day capital outflow since May 1, 2024, a period in which ETFs had already lost over $500 million.

The Economic Contraction Raises Concerns

This massive withdrawal occurred in the context of renewed concerns about the US economy. The release of economic indicators showing a weakening manufacturing sector, particularly the ISM PMI index which remained below the 50 threshold, has reignited fears of an economic contraction.

The US manufacturing industry is considered a key indicator of overall economic health, and this decline has cast a shadow over growth prospects. This slowdown has also affected risk assets such as cryptocurrencies, which are generally sensitive to broader economic fluctuations.

This economic pressure was further exacerbated by Nvidia’s NVDA shares plummeting 9.54% on the same day, triggering a wave of market sales, including in the crypto space. In total, over $1 trillion was wiped off the US stock market on Tuesday.

ETF Bitcoin Takes the Brunt

ETF Bitcoin has been particularly affected, with major players in the sector experiencing significant losses. Fidelity was hit the hardest, recording outflows of $162.3 million. Grayscale’s GBTC was not spared, with a net loss of $50.4 million. BITB and ARK also saw withdrawals of $25 million and $33.6 million, respectively.

On the other hand, BlackRock, a heavyweight player in the crypto investment space with its IBIT ETF, recorded a second consecutive day without any movement in or out of funds. This relative stability contrasts with the hemorrhage observed in the rest of the market and could indicate a certain level of investor confidence in BlackRock’s more conservative management.

Direct Impact on Bitcoin Price

The Bitcoin market itself felt the effects of this bearish trend. After a slight increase on Monday, the price of BTC fell by 2.7% to reach $57,500. The decline continued throughout the evening, reaching $55,600, extending the losses from the previous night. Futures contracts linked to the S&P 500 index also declined by 0.4%, adding additional pressure on risk assets.

The article ETF Bitcoin in the US Faced with Massive Capital Outflows appeared first on Coin Academy.

Heading: A New Leadership for OKX Singapore

Gracie Lin, former employee of MAS, has been appointed CEO of OKX Singapore, bringing valuable regulatory expertise to strengthen the company’s presence in this key hub of digital assets.

Heading: Singapore Leads in Crypto Adoption

Singapore is recognized as the global leader in cryptocurrency adoption, thanks to a favorable financial, commercial, and regulatory environment, according to a recent study.

The article OKX Secures Major Payment License in Singapore appeared first on Coin Academy.

Bitcoin Spot ETFs in the US have seen a series of significant withdrawals in recent days. On Thursday, the market experienced another wave of net outflows totaling $71.73 million, marking the third consecutive day of negative flows, with the second day of net sales for BlackRock since its launch.

BlackRock: A Sign of Weakness Since May

Among the major market players, BlackRock’s ETF, known as IBIT, has attracted particular attention. As the largest Bitcoin ETF by net assets under management, IBIT recorded net outflows of $13.51 million on Thursday, marking its first day of negative flows since May 1st and its second day since its launch. This reversal raises questions about investors’ confidence in Bitcoin-related products, especially in a context where global economic uncertainty remains high.

Bitcoin continued its decline, losing 4% in price on Friday to approach $58,000, taking Ethereum, Solana, and many altcoins with it.

Grayscale and Fidelity: Persistent Withdrawals

Grayscale, another market heavyweight with its GBTC fund, continued its series of outflows with a withdrawal of $22.68 million. On the other hand, Fidelity’s FBTC fund, which had shown some resistance up until now, saw $31.11 million leave its coffers.

Bitwise BITB and Valkyrie BRRR also suffered losses, with respective outflows of $8.09 million and $1.68 million. These figures, although small, illustrate a broader trend affecting several players in the sector, perhaps indicating a reassessment by investors of the risks associated with digital assets.

Ark and 21Shares: An Exception in a Declining Market

In this gloomy climate, only one exception stands out. The ARKB ETF, a collaboration between Ark and 21Shares, recorded inflows of $5.34 million. This contrasting performance is not impressive, however.

Declining Transaction Volume and Struggling Ethereum ETF

The total transaction volume for the 12 Bitcoin ETFs also decreased, from $2.18 billion on Wednesday to $1.64 billion on Thursday. This decrease reflects a decline in trading activity, which could be attributed to growing investor hesitation in the face of crypto market volatility.

Ethereum Spot ETFs were not left behind. After a day of positive flows, US ETH ETFs recorded net outflows again on Thursday, albeit smaller, with $1.77 million in withdrawals.

The Grayscale Ethereum Trust (ETHE) was hit the hardest, with net outflows of $5.35 million. However, these losses were partially offset by $3.57 million in inflows into the Grayscale Ethereum Mini Trust (ETH).

Outside of these movements, the seven other Ethereum funds did not experience significant flows. The total transaction volume for these nine funds dropped significantly from $151.57 million on Wednesday to less than $100 million on Thursday.

The article Bitcoin Spot ETFs in the US Experience Significant Outflows appeared first on Coin Academy.

Ryan Salame, former executive of FTX, recently surprised the New York court by withdrawing his legal petition to enforce the terms of his guilty plea agreement. This decision marks a significant turning point in his already complex case and raises questions about the future for Michelle Bond, his partner and the mother of his child.

The Controversial Guilty Plea Agreement

Salame, sentenced to 7.5 years in prison last May, initially accepted a guilty plea agreement with prosecutors, hoping it would put an end to the investigation into Michelle Bond. Bond, a former SEC lawyer and prominent figure in a Washington D.C.-based cryptocurrency advocacy group, is also the mother of Salame’s young child.

However, it appears that this plea agreement did not have the desired effect. Last week, Salame’s lawyers filed a petition claiming that prosecutors had obtained his plea inappropriately by dangling the cessation of the investigation into Bond. In response, Salame had requested either the enforcement of the agreement terms or the vacation of his plea and conviction.

A Strategic Retreat?

M. Salame maintains the facts stated in the Petition and his attached affidavit.

But in a twist of events, Salame decided to withdraw his petition. His lawyers explained this reversal by stating that Bond should now raise these issues in her own legal proceedings.

Salame wants the facts to be developed by Bond in her case, thereby allowing for a decision within the framework of her indictment.

The Charges against Michelle Bond

This turn of events comes as charges against Bond have been made public, one day after Salame’s initial petition was filed. Bond faces federal charges for accepting illegal campaign contributions from Salame and other FTX employees during her unsuccessful run for Congress in 2022. The charges include conspiracies to cause illegal political contributions and campaign finance violations, each carrying a maximum penalty of five years in prison.

Bond, who appeared before a judge in the Southern District of New York on August 22, was released on bail in the amount of $1 million. Despite Salame’s withdrawal of the petition, Judge Lewis Kaplan has decided to maintain a hearing on the former FTX executive’s initial request. Salame, as a condition of his bail, will be required to attend this hearing. This suggests that while Salame has altered his strategy, the case remains complex and far from resolved.

The article Ryan Salame Withdraws Legal Petition: What’s Next for Him and Michelle Bond? appeared first on Coin Academy.

OpenAI, the leading artificial intelligence startup, is currently in discussions to raise funds that could push its valuation beyond $100 billion, according to the Wall Street Journal.

According to internal documents and sources close to the matter, this funding round, which would be the largest in over a year, could mark a significant turning point for the company founded by Sam Altman.

Thrive Capital, a venture capital firm, plans to invest $1 billion in this new financing round. Microsoft, a longstanding investor in OpenAI, is also expected to strengthen its financial commitment. It is worth noting that Microsoft already holds 49% of OpenAI’s shares after investing a total of $13 billion since 2019.

“I have been fortunate to work with many great investors; there is no one I’d recommend more highly than Josh.” – Sam Altman

Valuation and Financial Strategies

Internal documents reveal that OpenAI shareholders are negotiating the sale of their shares at a price that would value the company at about $103 billion. If this transaction materializes, OpenAI’s valuation could surpass this threshold, reflecting the growing appetite of investors for the artificial intelligence sector.

In February 2024, OpenAI had already allowed its employees to sell their shares, which valued the company at around $86 billion. This new funding round could solidify its position as a leader in a rapidly expanding market, despite criticism and doubts surrounding the long-term sustainability of its business model.

Profitability Raises Questions

Despite the investor enthusiasm, OpenAI’s profitability is subject to debate. With an estimated annual revenue of $3.4 billion, the startup could still record massive losses, potentially reaching $5 billion in 2024, according to certain projections. This has led some analysts to question the viability of OpenAI’s business model.

It is important to note that OpenAI remains, technically, a nonprofit organization. Investors do not hold conventional shares but invest in its for-profit subsidiary, OpenAI LP, and are then eligible for a share of the profits once a predetermined threshold is reached.

Fierce Competition in the AI Sector

This funding round comes amidst an increasingly competitive landscape for AI companies. Google recently spent billions to launch Gemini, the latest version of its chatbot assistant, while Google and Amazon jointly invested $6 billion in Anthropic, another AI company. Meta, on the other hand, continues its efforts with Meta AI, which relies on its Llama 3.1 language model.

The AI market is more dynamic than ever, and despite financial challenges, OpenAI continues to attract investors who are captivated by its potential to revolutionize the industry. However, the future of the company will largely depend on its ability to convert this enthusiasm into sustainable profitability, a formidable challenge in a sector where rapid innovation is the key to survival.

The article OpenAI in Talks to Raise Funds Amidst Valuation Soaring Above $100 Billion appeared first on Coin Academy.

Bitcoin experienced a sudden drop of nearly 6% on Tuesday night, erasing recent gains following a favorable speech by Jerome Powell and the pro-crypto alliance between Trump and RFK Jr.

ETH fared better with a 3% drop during the same period, but it continues to underperform compared to Bitcoin since the beginning of the year, mainly due to the limited success of Ethereum ETFs.

The macroeconomic context, marked by a decline in the US stock markets and uncertainty about the Fed’s future decisions, adds pressure on cryptocurrencies, with particular attention on upcoming economic reports.

Ethereum Follows the Trend, but the Gap with Bitcoin Widens

Ethereum, the second largest cryptocurrency in terms of market capitalization, resisted slightly better, only losing 3% during the same period. However, in the long term, ETH has underperformed compared to Bitcoin, experiencing a drop of over 20% since the beginning of the year in terms of relative value to Bitcoin, reaching its lowest level since April 2021. At $2,490 at the time of writing, ETH’s annual increase in 2021 has dwindled to only 9%, compared to a 39% increase for Bitcoin.

This divergence between the two cryptos is partly explained by the contrasting success of their respective ETF launches this year. Bitcoin ETFs have attracted over $10 billion in net flows, while ETH investment vehicles have seen their assets decrease since their introduction.

A Less Favorable Macroeconomic Context

This pressure on cryptos adds to the declines observed in major US stock indices, led by a 1.3% drop in the tech-heavy Nasdaq. The 3% drop in Nvidia shares (NVDA), ahead of its quarterly earnings release scheduled for Wednesday evening, has contributed significantly to this trend. Although Nvidia is still slightly below its earlier summer peak, the stock remains up 159% since the beginning of the year, leaving room for correction in case of disappointment in its results or outlook.

Furthermore, a turnaround is starting to unveil regarding the optimism sparked by Jerome Powell’s accommodative statements at last week’s Jackson Hole conference. Traders had quickly anticipated a near 50% probability of the Fed cutting its benchmark rate by 0.5% at the September meeting, compared to the initially presumed 0.25%. But the probabilities seem to be reversing again, with 36% chances of a 0.5% hike now.

However, several economic indicators, including the job and inflation reports for August, are still to be released before this September meeting. For the Fed to opt for such a significant rate cut, these figures would likely have to be particularly weak.

The article Bitcoin Suffers a Sudden Drop, while ETH Underperforms appeared first on Coin Academy.

Daily transaction fees on Solana have dropped by 65% compared to their peak in August, reaching $639,000 and marking a significant decrease in blockchain activity. This is a sharp decline from the all-time high of $5.08 million in March, indicating a decrease in the hype surrounding memecoins on Solana.

A Decrease in Transaction Fees

The daily transaction fees on Solana have reached their lowest level in several months. This Monday, fees dropped to $639,000, a 65% decrease from this month’s peak recorded on August 8th at $1.83 million.

This decline is even more pronounced compared to the historical peak of $5.08 million reached on March 18th. This significant decrease in transaction fees reflects a slowdown in activity on the network, especially in memecoin trading, which seems to be the most affected sector.

The End of the Memecoin Hype?

This decrease in transaction fees can easily be associated with the weakening hype around memecoins. On CoinGecko, the market capitalization of memecoins on the Solana network is now $7.1 billion, a 6.6% decrease in the past 24 hours. The top five memecoins on Solana — Dogwifhat, Bonk, Popcat, Book of Meme, and Cats in a Dogs World — have all seen significant decreases in value over the past month, ranging from 15% to 40% despite the recent rebound.

Impact on Decentralized Exchanges and TVL

The decrease in memecoin activity is not limited to transaction fees. It has also affected the Total Value Locked (TVL) in some decentralized exchange platforms based on Solana. For example, Raydium, a DEX that handles a significant portion of memecoin trading, has seen its TVL drop by nearly 20% in the past 30 days, while BonkSwap has experienced a decrease of over 23% during the same period.

Towards a Reduction in Solana Usage?

Despite the decline in activity on the network, the price of SOL has increased by nearly 10% over the week, surpassing $160.

In this cycle, Solana had gained a reputation as a major blockchain for memecoin projects, becoming a true open-air casino. However, the current decrease in user activity could indicate the final phase of this hype in the current crypto market.

This situation could resemble the previous cycle where NFT trading experienced a peak followed by an endless decline.

The article Decline in Daily Transaction Fees on Solana Signals Decrease in Activity appeared first on Coin Academy.

Ryan Salame, a former executive at FTX, is accusing the US government of not abiding by the terms of a plea agreement that was intended to end an investigation into his partner Michelle Bond, the CEO of think tank ADAM. Salame claims that the government, despite the agreement, resumed the investigation into Bond, thus violating the initially agreed-upon terms.

Salame is now asking the court to compel the government to honor the agreement, either by dropping the investigation into Bond or by vacating his own conviction. He asserts that the government used the plea negotiations as a means of unfair coercion.

Ryan Salame, an ex-FTX executive, has once again found himself embroiled in a legal battle against the US government.

In a recent filing, Salame’s lawyers accuse the government of not complying with the terms of a previously reached plea agreement.

In response to this situation, Salame publicly expressed his discontent on the social media platform X (formerly known as Twitter), stating that he hopes his filing will “encourage more people to be honest, tell the truth, and expose un-American tactics.”

The Context: Contested Plea Agreement

Ryan Salame, who was sentenced in 2023 to 7.5 years in prison for campaign finance violations and operating an unlicensed money transmitting business, argues that the government failed to fulfill its obligations under the plea agreement.

The agreement was supposed to put an end to an investigation into Salame’s long-term partner, Michelle Bond, the CEO of fintech think tank ADAM. Bond, who also ran as a Republican candidate for Congress in 2022, is believed to have engaged in campaign finance violations, in which Salame and others allegedly contributed.

According to the terms of the agreement, the government would have dropped any ongoing investigation into Bond in exchange for Salame’s cooperation and guilty plea. However, Salame’s lawyers claim that the investigation into Bond resumed in violation of these assurances, which they consider to be a blatant breach of the initial agreement.

A Defense Strategy Based on Government’s Commitment

In their complaint, Salame’s lawyers argue that their client pleaded guilty due to implicit promises made by prosecutors, promises that they claim were not upheld. They assert that the government used the plea negotiations as leverage to shield Bond from legal action, by threatening to continue the investigation if Salame did not cooperate.

The filed document states that “the government used the plea negotiations to threaten Salame’s domestic partner and mother of his child, Michelle Bond,” adding that “the government made it clear it would end the investigation into Bond if Salame pleaded guilty.”

The Consequences of the Alleged Breach of the Agreement

Salame’s lawyers are now requesting the court to compel the government to honor its initial commitment. In other words, they want the investigation into Bond to be dropped or Salame’s conviction to be vacated. According to them, if the government fails to honor its obligations, Salame should be allowed to withdraw his guilty plea, or obtain an order forcing the government to fulfill its promises.

The article Former FTX Executive Accuses US Government of Violating Plea Agreement appeared first on Coin Academy.

Impressive Milestone for BlackRock’s Ethereum ETF

BlackRock announced that its iShares Ethereum Trust (ETHA) has become the first Ethereum ETF to reach over $1 billion in cumulative net inflows. This achievement places the fund at the top among the 11 issuers of such financial products, cementing BlackRock’s position as a leader in the crypto ETF market.

Currently, BlackRock’s ETHA fund manages over $860 million in net assets, ranking just behind Grayscale’s Ethereum trusts, namely the Ethereum mini ether trust (ETH) and the Ethereum trust (ETHE). Notably, ETHA’s net inflows surpass those of the three next best-performing ETFs combined.

Comparison with Other Ethereum ETFs

The performance of other Ethereum ETFs pales in comparison to ETHA. For example, Fidelity’s FETH fund has attracted $367 million since its launch on July 23, while Bitwise’s ETHW fund has recorded $310 million. The new Grayscale fund (ETH), despite its market importance, has accumulated only $227 million in net inflows.

On the other hand, some other Ethereum ETFs struggle to attract significant capital, with less than $60 million in net inflows recorded by competing funds. Grayscale’s Ethereum trust (ETHE), despite being converted from an institutional product to one open to the general public, has experienced massive net outflows of $2.7 billion since its inception.

A Broader Context: Performance of Bitcoin ETFs

Interestingly, despite ETHA’s success, Ethereum ETFs, as a whole, have underperformed compared to their Bitcoin counterparts. Cumulative net outflows for all Ethereum ETFs amount to over $440 million. In comparison, Bitcoin ETFs, notably BlackRock’s Bitcoin fund, have seen daily net inflows of around $125 million during their first month of existence, reaching a total valuation of over $11 billion after deducting net outflows from the Grayscale Bitcoin Trust (GBTC).

BlackRock’s Bitcoin fund has managed to rank among the top five ETFs in terms of net inflows for 2024 across all sectors. This record puts the fund on par with industry giants like the iShares Core S&P 500 ETF (IVV) and the Vanguard S&P 500 ETF (VOO) during a record-breaking year in the ETF market.

The article BlackRock’s Ethereum ETF Reaches Impressive Milestone appeared first on Coin Academy.

Tether, the issuer of the world’s largest stablecoin, has announced its intention to launch a new token backed by the United Arab Emirates dirham (AED).

This ambitious project will be realized in partnership with the Abu Dhabi-listed crypto conglomerate, Phoenix Group. This initiative marks a new milestone in Tether’s expansion beyond stablecoins primarily pegged to the US dollar, which currently dominates the stablecoin market.

A Project Supported by a Solid Regulatory Framework

For this new project, Tether plans to submit a license application under the recently introduced regulation for payment token services by the Central Bank of the United Arab Emirates.

This regulation, announced in June, aims to regulate the use of payment tokens in the country. Obtaining this license could significantly enhance the credibility and adoption of the dirham-backed stablecoin, especially in an environment where Dubai and Abu Dhabi have already established themselves as major crypto hubs.

The Stake for Tether and the Stablecoin Sector

Developing a stablecoin pegged to the dirham could represent a strategic opportunity for Tether and the stablecoin market in general. While stablecoins not pegged to the US dollar struggle to gain traction, the robust regulatory framework and advanced crypto infrastructure of the United Arab Emirates could provide the necessary foundation for broader adoption of these alternative digital assets.

Furthermore, with the rise of blockchain technologies in the Gulf region, a stablecoin backed by a local currency could stimulate innovation and cross-border commerce.

By collaborating with Phoenix Group to develop a dirham-backed stablecoin, Tether continues to diversify its product portfolio while adapting to the local dynamics of global markets. This project could not only increase Tether’s influence in emerging economies but also encourage similar initiatives in regions where cryptocurrency adoption is growing. The future of this project will largely depend on obtaining the license from the Central Bank of the United Arab Emirates and how the market responds to this new stablecoin offering.

The article Tether Expands Stablecoin Portfolio with Dirham-Backed Token in UAE Partnership appeared first on Coin Academy.