The U.S. government has transferred 10,000 bitcoins linked to the Silk Road, valued at approximately $600 million, to Coinbase Prime, the institutional platform of the exchange giant.

Matt Hougan, CIO at Bitwise Asset Management, has commented (in a post on X) on the Q2 2024 Bitcoin 13-F filings with the U.S. SEC, revealing significant trends in institutional investment in spot Bitcoin ETFs.

On August 14, at a Crypto4Harris Town Hall meeting, Democratic Senator Chuck Schumer, Majority Leader of the United States Senate, announced that he would work to pass bipartisan pro-crypto legislation by the end of the year if Kamala Harris is elected president.

Top stories in the Crypto Roundup today:

• U.S. Government Transfers Nearly $600 Million Silk Road Bitcoin to Coinbase
• Bitwise CIO Says Institutional Investors Continued To Adopt Bitcoin ETFs in Q2
• Senator Schumer Commits to Pro-Crypto Legislation if Harris Wins U.S. Presidency

U.S. Government Transfers Nearly $600 Million Silk Road Bitcoin to Coinbase Prime

The U.S. government has transferred 10,000 bitcoins linked to the Silk Road, valued at approximately $600 million, to Coinbase Prime, the institutional platform of the exchange giant. Per blockchain data from Arkham Intelligence, the funds were initially moved two weeks ago from a wallet identified as holding Silk Road assets confiscated by the U.S. Department of Justice (DOJ).

Typically, deposits to an exchange suggest an intent to sell, but in this instance, the transfer might have been for custodial purposes. The U.S. Marshals Service, a division of the DOJ, recently partnered with Coinbase Prime to "safeguard and trade" large-cap digital assets. The specifics of how these assets are managed after being moved to a centralized platform remain unclear.

This move follows a significant seizure by the DOJ in 2022 when over 50,000 BTC were confiscated. This led to the arrest of James Zhong, who was accused of manipulating Silk Road’s transaction system back in 2012. 

The last major sale of Silk Road assets by the government occurred in March 2023, when 9,861 BTC were sold for $216 million. According to court filings, the government planned to sell the remaining assets in four batches throughout that year, however, no further sales have been publicly confirmed.

U.S. government-linked wallets currently hold around $12 billion in Bitcoin, along with smaller amounts of other seized cryptocurrencies, per Arkham’s data.

Bitwise CIO: Institutional Investors Continued To Adopt Spot Bitcoin ETFs in Q2

Matt Hougan, CIO at Bitwise Asset Management, has commented (in a post on X) on the Q2 2024 Bitcoin 13-F filings with the U.S. SEC, revealing significant trends in institutional investment in spot Bitcoin ETFs. Despite market volatility during the second quarter, institutional interest in spot Bitcoin ETFs showed substantial growth, which Hougan described as a strong indicator of ongoing adoption.

Hougan noted that the number of "holder<>ETF pairs"—which refers to the distinct combinations of institutional holders (such as hedge funds, investment firms, and other financial institutions) and the specific Bitcoin ETFs they own—increased by 30% from Q1 to Q2 (from 1,479 to 1,924). While this number includes some double-counting—since an institution can hold shares in multiple ETFs—the consistent methodology across both quarters makes this growth noteworthy. 

Hougan shared that the majority of investors maintained or increased their positions in spot Bitcoin ETFs during Q2. Specifically, 44% of the investors who reported in Q1 added to their holdings in Q2, 22% held their positions steady, 21% decreased their holdings, and only 13% exited entirely. This pattern, Hougan suggested, indicates that institutional investors are not easily shaken by periods of high market volatility which is often characteristic of digital assets.

Senator Schumer Commits to Pro-Crypto Legislation if Harris Wins U.S. Presidency

On August 14, at a Crypto4Harris Town Hall meeting, Democratic Senator Chuck Schumer, Majority Leader of the United States Senate, made a significant commitment to the future of cryptocurrency legislation in the U.S. Schumer declared that if Kamala Harris is elected president, he would work to pass bipartisan pro-crypto legislation by the end of the year. The event, organized by a grassroots crypto advocacy group, aimed to encourage a "reset" in Harris’s campaign policies toward cryptocurrency, promoting a more favorable stance on digital assets.

Schumer underscored the increasing significance of cryptocurrency in the global financial landscape and warned of the risks of the U.S. lagging in innovation. He highlighted the necessity for the United States to actively engage with crypto rather than allowing the industry to move to countries with minimal regulation. Schumer argued that the U.S. should create a regulatory environment that both supports innovation and ensures protection for users, as the country cannot afford to ignore the growing influence of cryptocurrency.

He also stressed the importance of bipartisan cooperation in the Senate to create and pass legislation that would help the U.S. remain a global leader in technological innovation. Schumer described this legislative push as essential not only for promoting innovation but also for safeguarding national security and protecting consumers from potential misconduct in the cryptocurrency sector.

Schumer’s remarks came at a time of uncertainty regarding Vice President Harris’s stance on cryptocurrency, as she has yet to make her position clear. This ambiguity has led many to speculate that she might continue the Biden administration’s cautious approach to digital assets. The Crypto4Harris advocacy group seeks to influence Harris’s campaign to adopt a more supportive position on cryptocurrency.

State of the Crypto by Top Tier Exchange Volume

Build your project with CoinDesk Data

Terms | Privacy

13 Charles II St, SW1Y 4QU

London, UK

This email may include advertisements by third parties. None of the advertised or promoted products and services have been verified or approved by us and this email is not any endorsement by us of the third party or of their products or services.