Monday Crypto Minutes – Need To Know

The fastest ever $1B AUM, bitcoin futures see never seen before volumes, and what do the US Government, Wu-Tang Clan and disgraced Pharmaceuticals figure Martin Shkreli have in common? All covered in this weeks minutes!

The Fastest Billion in AUM

Last week the launch of a Bitcoin ETF that trades on Bitcoin futures rather than the underlying asset made headlines globally. ProShares Bitcoin Strategy ETF (BITO) gave mainstream investors this ability and amassed over $570M in the first few hours, and $1B USD in assets under management (AUM) in the first two days.

Currently BITO allocates 40.2% of AUM to buying Chicago Mercantile Exchange Bitcoin futures contracts that settle in October, and 31.2% for futures that settle in November. The CME’s BTC futures are cash settled currently. The remainder is allocated towards US Treasury bills.

Record Bitcoin Futures Volumes

The CME saw record BTC futures volumes last week, seeing +$5.9B USD in futures traded last Tuesday, and on Wednesday over $7.5 billion’s worth of bitcoin futures were traded.

Walmart Is Hosting Bitcoin ATM’s?

America’s giant retailer, Walmart, has started selling bitcoin through 200 Coinstar kiosks in a pilot partnership with Coinme & Coinstar. This allows users to use cash to purchase bitcoin.

After purchasing bitcoin through the machine a receipt is issued. The customer then must set up a Coinme account and pass a KYC check before the voucher can be redeemed.

What Is Bitcoin Price Doing?

One would expect that all this fresh Bitcoin hype would skyrocket prices, but prices have risen cautiously over the last few weeks. BTC/USD printed a fresh ATH on the 20th of October at 67,016.5 prior to retreating. Price has stabilised, and is pushing up today.

BTC/USD Daily Chart, 25 October 2021

US Government, NFT’s & Wu Tang Clan???

No, it isn’t the setup for a bad joke. In 2015 “Once Upon A Time In Shaolin”, Wu-Tang Clan’s secretive seventh album, was released with only one copy under contract that prevented public release until 2103.

The albums first owner was Martin Shklreli, the disgraced pharmaceuticals figure who jacked up prices for a lifesaving drug and was arrested for securities fraud.

The album was seized by the US Government when Shkreli was arrested, and was auctioned off by the government.

On October 20, 2021, NFT collector group ‘PleasrDAO’ announced that they purchased the album for over $4M. PleasrDAO are currently looking into ways that they can release the album as an NFT without breaching the albums contract, which allows listening party’s.

Does this mean that the US Government is warming to the idea of blockchain, NFT’s and cryptocurrencies? I highly doubt it.

Published by Tom Stewart

Head of data analytics at TradeProofer. Analyst at Opes Trading Group. FX enthusiast.

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