History Shows That Bitcoin Reached a Temporary Top at $93.4K

Crypto ETF issuer and asset manager BlackRock announced on Wednesday the expansion of its USD Institutional Digital Liquidity Fund (BUIDL) to include five new blockchain ecosystems: Aptos, Arbitrum, Avalanche, Optimism, and Polygon.

Initially launched on the Ethereum network in March 2024, BUIDL rapidly gained traction among investors, becoming the largest tokenized fund globally regarding assets under management (AUM) within just 40 days.

BNY Mellon To Custody BUIDL

The expansion will allow BUIDL to interact with more blockchain-based financial products and infrastructures. BlackRock aims to enhance accessibility for investors, decentralized autonomous organizations (DAOs), and digital asset firms, enabling them to leverage BUIDL within the ecosystems of their choice.

Carlos Domingo, CEO and co-founder of Securitize, the firm responsible for tokenizing BUIDL, emphasized the importance of this multi-chain approach in Wednesday’s press release by saying:

With the addition of these blockchains, BlackRock aims to provide increased options and access for investors, allowing developers to build applications that integrate seamlessly with the BUIDL fund.

BNY Mellon, which recently received a Bitcoin and crypto custody license for institutional services, will play a key role in this initiative as the fund administrator and custodian for BUIDL.

BlackRock Bitcoin ETF Achieves Unprecedented Growth

On the crypto ETF front, BlackRock’s Bitcoin ETF, IBIT, has reached a remarkable milestone, surpassing the $40 billion mark in assets under management (AUM) just two weeks after hitting $30 billion.

This achievement comes in a record 211 days, shattering the previous record of 1,253 days held by the iShares Core MSCI Emerging Markets ETF (IEMG).

IBIT is now positioned in the top 1% of all ETFs by assets and at just 10 months old, it has outperformed all 2,800 ETFs launched in the past decade, according to ETF expert Eric Balchunas.

Balchunas further highlighted that Bitcoin ETFs collectively have crossed the $90 billion asset threshold, following a significant $6 billion surge in the past few days.

This increase comprises $1 billion in new inflows and $5 billion in market appreciation. The growing popularity of Bitcoin ETFs indicates that they are now 72% of the way toward surpassing gold ETFs in total assets.

The rise in Bitcoin ETF assets has coincided with a surge in investor confidence, particularly following Donald Trump’s recent victory over Kamala Harris in the presidential elections.

This political shift has positively influenced market sentiment, contributing to a broader uptick in cryptocurrency prices. Bitcoin, in particular, has experienced a substantial rally, climbing over 24% to reach a record high of $93,000 in the past week alone.

Featured image from DALL-E, chart from TradingView.com

The United States Federal Bureau of Investigation (FBI) raided the home of Polymarket’s CEO, Shayne Coplan, on Wednesday morning (local time) and seized his phone, as first reported by the New York Post. However, the 26-year-old hasn't been arrested or charged.

Although there is no official confirmation, a Bloomberg report indicated that the Department of Justice is investigating Polymarket, as the platform allegedly allowed US users to bet on events.

US Users Could Bet on Polymarket

Polymarket allowed users to trade event contracts, betting on the outcome of various events using cryptocurrencies. The platform's popularity surged during the recent US Presidential election when its users successfully predicted Donald Trump’s victory.

In a statement to the media, Coplan accused the outgoing Biden administration of the investigation and raid, calling the move political retribution.

“It’s discouraging that the current administration would seek a last-ditch effort to go after companies they deem to be associated with political opponents,” Coplan wrote. “We are deeply committed to being non-partisan, and today is no different, but the incumbents should do some self-reflecting and recognise that taking a more pro-business, pro-startup approach may be what would have changed their fate this election.”

Polymarket does not allow US users to access event contracts and is only available outside the country. It even settled with the US Commodity Futures Trading Commission (CFTC) in 2022, paying $1.4 million and agreeing to block all US residents from accessing the platform. However, it was found that Americans could still place bets on the platform using virtual private networks (VPNs).

Reactions from Industry Leaders

The action against the platform attracted the attention of other crypto leaders. Coinbase’s CEO, Brian Armstrong, criticised the outgoing administration on X, noting that the administration's move would “backfire.”

Elon Musk, the richest man and a close associate of President-elect Trump, also called the federal agency’s move “messed up.”

While the Biden administration remained hostile towards cryptocurrencies, the incoming President Trump is considered pro-crypto. Following his victory, the crypto market is rallying significantly, with Bitcoin surpassing the $90,000 milestone and expected to cross $100,000.

In a recent SEC filing, BlackRock, the world's largest asset manager, disclosed that it had purchased 2,535,357 shares of iShares Bitcoin Trust ETF (IBIT) valued at $91.6 million.

SoSoValue data shows that BlackRock's IBIT attracted $230 million worth of inflows on Wednesday.

According to analyst Eric Balchunas, the red-hot ETF product logged $5 billion in daily trading volume yesterday, setting a new record. Notably, only three ETFs saw more trading activity on Wednesday.

Following the most recent update, BlackRock's IBIT is now inching closer to $30 billion worth of cumulative inflows. Its total net assets currently stand at $42.56 billion.

BlackRock first disclosed its intention to add IBIT exposure to other funds back in March.

The record-shattering product was launched back in January.

Crypto wallet provider Phantom has issued an emergency update for iOS users after reports that some users have had their app reset, locking them out of their wallets unless they remembered their recovery phase.

“We’re aware that a small number of iOS users are experiencing app resets,” Phantom stated on X on Nov. 14 before advising those affected to restore their wallets using recovery phrases.

The team behind the Solana-based DeFi wallet added that they’ve pushed a new iOS app update to prevent this from affecting any additional users. They apologized for the inconvenience, advised securely storing seed phrases, and added, “We’re committed to making sure this won’t happen again.”

The body of Kevin Mirshahi, a crypto influencer who was abducted from a condo in June, has been found at a park in Montreal, Canada, local reports state.

Mirshahi’s decomposing remains were discovered by a passerby at the Île-de-la-Visitation park on Oct. 30, local police told The Gazette, a Montreal news outlet.

An autopsy confirmed the body’s identity as Mirshahi, The Gazette said in the Nov. 13 report.

The 25-year-old was last seen on June 21 when he and three others were abducted from a condo building in Montreal, The Gazette reported at the time. The three other abductees managed to escape.

The incident adds to a concerning trend of crypto executive and influencer abductions and murders, often motivated by the intent to steal — or recover — large sums of money.

Republicans have held onto their control of the U.S. House of Representatives, which could usher in crypto-friendly lawmakers to lead efforts for digital asset-related bills.

Republicans secured a majority of 218 members while Democrats held onto 208 seats, according to The Associated Press.

This sets up for the Republican to lead the House Financial Services Committee — an influential panel that has oversight over the U.S. Securities and Exchange Commission, the Federal Reserve and other federal agencies. Current chair Rep. Patrick McHenry, R-N.C., is set to retire in January 2025, leaving a space open for a new lead.

McHenry was pivotal in leading efforts for a bill to regulate stablecoins and legislation focused on crypto market structure. The latter gives new jurisdiction to the Commodity Futures Trading Commission over "digital commodities" and asserts the SEC would oversee digital assets offered as part of an investment contract.

A new chair will likely be picked this month or by December. Names being thrown to lead the committee include Reps. French Hill of Arkansas, Andy Barr of Kentucky, Bill Huizenga of Michigan and Frank Lucas of Oklahoma — all are friendly toward crypto. Hill, for example, leads the committee's digital asset-focused panel and has been working toward passing crypto bills, including those involving stablecoins.

A Republican-led committee is likely to focus on stablecoins and market structure, then later DeFi and NFTs, Ron Hammond, director of government relations at the Blockchain Association, previously told The Block.

Maxine Waters of California, the current top Democrat of the House Financial Services Committee, has also led efforts in passing a stablecoin bill and has been open to getting that across the finish line — potentially before the end of 2024.

During a congressional hearing in September, Waters called for a "grand bargain on stablecoins" before the end of the year.

"I've made a public statement to you about bipartisanship — let's see what you do with it," Waters told McHenry during that hearing.

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