The first day of trading for the 11 spot Bitcoin exchange-traded funds approved by the U.S. Securities and Exchange Commission (SEC) saw a combined volume of $4.37 billion.

European asset manager CoinShares has successfully completed its acquisition of Valkyrie Funds, a key segment of Nashville-based firm Valkyrie Investments. The move follows the recent launch of Valkyrie Investments’ spot Bitcoin ETF.

Five years after launching its Petro cryptocurrency, Venezuela has reportedly announced that it’s phasing it out. The announcement was made via its Patria Platform, the only website where Petro was tradeable.

Top stories in the Crypto Roundup today:

• Spot Bitcoin ETFs Spark Trading Frenzy
• CoinShares Finalizes Acquisition of Valkyrie Funds
• Venezuela to Phase Out Controversial Cryptocurrency Petro
• Fidelity Forecasts Surge in DeFi and Stablecoin Interest with Potential 2024 Fed Rate Cut

Spot Bitcoin ETFs Spark Trading Frenzy

The first day of trading for the 11 spot Bitcoin exchange-traded funds approved by the U.S. Securities and Exchange Commission (SEC) saw a combined volume of $4.37 billion.

Nearly half of this volume, according to CCData’s Institutional Primer on the impact of spot Bitcoin ETFs, was on the Grayscale Bitcoin Trust (GBTC), which is expected to see significant outflows due to the availability of new ETFs. BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund were the primary beneficiaries, with 23.2% and 15.6% of the total volumes, respectively.

Bitwise led inflows among spot Bitcoin ETFs, securing approximately $230 million, closely followed by Fidelity with $227 million. BlackRock reported inflows of $111 million, a figure that’s expected to rise considering the first day's trading volumes.

The launch of spot Bitcoin ETFs has fueled speculation about their impact on the market. ProShares’ BITO, a Bitcoin futures ETF, recorded a remarkable $2 billion in trading volumes, setting a new high for a futures ETF.

Additionally, the Chicago Mercantile Exchange (CME) witnessed a surge in BTC futures trading, totaling $7.33 billion in volumes.

CoinShares Finalizes Acquisition of Valkyrie Funds

European asset manager CoinShares has successfully completed its acquisition of Valkyrie Funds, a key segment of Nashville-based firm Valkyrie Investments. The move follows the recent launch of Valkyrie Investments’ spot Bitcoin ETF.

In November, CoinShares announced it acquired the options to buy the U.S. ETF business, emphasizing that the Valkyrie Bitcoin Fund, a spot Bitcoin ETF that’s now trading under the BRRR ticker on Nasdaq, would be part of the acquisition.

The initial agreement granted Valkyrie Investments the rights to use the CoinShares name in its SEC filings during the option period. It’s now unclear whether CoinShares plans to rebrand the ETF and two other funds involved in the acquisition.

This acquisition comes at a significant time, as Valkyrie's Bitcoin ETF application was still pending when CoinShares first expressed its acquisition interest. The U.S. Securities and Exchange Commission only recently approved BRRR and other Bitcoin funds for trading.

Venezuela to Phase Out Controversial Cryptocurrency Petro

Five years after launching its Petro cryptocurrency, Venezuela has reportedly announced that it’s phasing it out. The announcement was made via its Patria Platform, the only website where Petro was tradeable.

The cryptocurrency was launched by President Nicolás Maduro back in February 2018 in a bid to bolster Venezuela's national currency, the bolívar, amidst an intense economic crisis worsened by U.S. sanctions.

The Petro (PTR) was initially backed by the country’s vast oil reserves, but faced controversy since inception as Venezuela’s opposition-led congress quickly declared it illegal to use oil reserves as collateral. Adding to its challenges, in 2019, the U.S. sanctioned a Russian bank involved in financing the Petro.

The Venezuelan government, over time, tried to integrate the Petro into various services, including making it necessary for passport applications and to fund a social housing initiative.

Petro is now being phased out after a corruption scandal involving the misuse of crypto assets in oil operations, leading to the resignation of Petroleum Minister Tareck El Aissami and a crackdown on Bitcoin mining operations. The remaining Petros are set to be converted to bolivars.

Fidelity Forecasts Surge in DeFi and Stablecoin Interest with Potential 2024 Fed Rate Cut

Leading asset manager Fidelity has anticipated that a potential interest rate cut by the U.S. Federal Reserve in 2024 could reignite institutional interest in decentralized finance (DeFi) and stablecoins in its 2024 Digital Assets Look Ahead report.

The report highlights that despite expectations, institutions did not heavily invest in DeFi last year as the Federal Reserve hiked interest rates, making traditional fixed-income products more attractive to investors.

The firm suggested, however, that this year could see a shift if DeFi yields become more attractive when compared to those of traditional financial products and as DeFi infrastructure improves.

Fidelity’s report notes that institutional use of stablecoins could give them greater legitimacy, especially when it comes to their use in settlements. This legitimacy could, in turn, help bolster their adoption.

The firm also noted it sees companies getting “more comfortable with the idea of putting digital assets on their balance sheet” after new reporting rules from the U.S. Financial Accounting Standards Board were approved, allowing companies to report both gains and losses from their crypto holdings.

State of the Crypto by Top Tier Exchange Volume

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