BB DAILY 01-03-2025: BlackRock ETF Faces Record Outflows, Do Kwon Pleads Not Guilty, and Bitcoin Marks 16th Anniversary
BlackRock’s iShares Bitcoin Trust ETF saw a record $332.6M daily outflow amid institutional portfolio adjustments. Meanwhile, Terraform Labs’ Do Kwon pleads not guilty to fraud charges tied to the collapse of TerraUSD. Bitcoin also celebrates its 16th anniversary since the mining of its Genesis Block, a milestone that remains a symbol of decentralization and financial freedom. Additionally, the US continues to dominate Bitcoin’s hashrate, raising concerns about the centralization of the network’s mining power.
Because Bitcoin
January 3, 2025
BlackRock’s Bitcoin ETF Sees Record $332.6M Daily Outflow Amid Institutional Rebalancing
BlackRock’s iShares Bitcoin Trust ETF (IBIT) recorded its largest daily outflow of $332.6 million on Thursday, surpassing the previous high of $188.7 million on Christmas Eve. The record outflow comes as institutional investors adjust portfolios in response to Bitcoin price movements and market conditions, according to Neal Wen of Kronos Research.
Despite underperforming recently, IBIT remains the largest spot Bitcoin ETF, with total net inflows of $36.9 billion and assets nearing $53.5 billion. While IBIT experienced significant outflows, other Bitcoin ETFs like Bitwise’s BITB and Fidelity’s FBTC reported moderate inflows, reflecting divergent market trends.
Overall, U.S. spot Bitcoin ETFs saw net outflows of $242.3 million, with a total trading volume of $3.24 billion. Bitcoin’s price rose 1.3% over the last 24 hours, trading at $96,690. Ethereum ETFs also faced net outflows of $77.5 million, led by Bitwise’s ETHW and Grayscale’s ETHE.
Terraform Labs Co-Founder Do Kwon Pleads Not Guilty to Fraud Charges in New York Court
Terraform Labs co-founder Do Kwon pleaded not guilty in a Manhattan court after being extradited from Montenegro to face multiple criminal charges, including fraud, market manipulation, and money laundering conspiracy. The charges stem from the collapse of the algorithmic stablecoin TerraUSD (UST) in 2022, which wiped out billions of dollars.
Kwon appeared in court in good spirits, according to Inner City Press, and is scheduled for his next hearing on January 8. U.S. prosecutors allege that Kwon used deceptive practices to mislead investors and create the illusion of a functioning decentralized financial system. If convicted, Kwon could face up to 130 years in prison.
This criminal case follows earlier civil charges brought by the SEC, where a jury found Kwon and Terraform liable for misleading investors in April 2023.
Bitcoin Genesis Block Turns 16: A Milestone in Cryptocurrency History
Today marks the 16th anniversary of the Bitcoin genesis block, the first block ever mined on the Bitcoin blockchain, by its mysterious creator, Satoshi Nakamoto. The block, also known as Block 0, was mined on January 3, 2009, and contained a hidden message: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks,” a reference to a headline from The Times newspaper. This message is often interpreted as a commentary on the flaws of the traditional financial system and the motivation behind Bitcoin’s creation.
Since its inception, Bitcoin has grown from a niche digital currency to a global financial phenomenon, challenging established monetary systems and giving rise to an entire blockchain ecosystem. The genesis block laid the foundation for decentralized finance, paving the way for countless innovations and the creation of thousands of other cryptocurrencies.
As Bitcoin continues to evolve and capture mainstream attention, the significance of its genesis block remains as relevant as ever, symbolizing the movement toward financial freedom and decentralization.
US Dominates Bitcoin Hashrate, Raising Concerns Over Centralization
The United States now controls over 40% of the Bitcoin network’s global hashrate, with US-based mining pools Foundry USA and MARA Pool accounting for more than 38.5% of all mined blocks. Foundry USA alone controls 36.5% of the network’s hashrate, having grown from 157 exahashes per second (EH/s) to 280 EH/s in 2024.
Despite this, Chinese mining pools still maintain a dominant share, bypassing crypto bans through VPNs. This concentration of mining power has raised concerns about the centralization of Bitcoin, with industry leaders warning that too much control in one country could undermine the network’s decentralization and neutrality.
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