BlackRock’s Bitcoin ETF hits $2B in AUM

Hello, and welcome to De.Nomics newsletter, your premium digest to stay ahead in the world of Web3 and decentralized technologies at a regional focus. Today, we have plenty of trending news and stories. So, get your cup of tea and some biscuits, and let’s go ahead.
If a friend forwarded this email to you, you can subscribe for free.

The Blends Briefs
TL’DR: Here’s a sneak peek into today’s newsletter

• BlackRock’s Bitcoin ETF is the first to reach $2B in AUM.

• ARK Invest sold millions of ProShares Bitcoin Trust Shares while buying its own Bitcoin ETF.

• SEC delays decision on Grayscale's proposal for spot Ethereum ETF… again!

• United Kingdom says CBDC plans need more time.

• Nigerian exchanges face licensing hurdles.

• Dictionomics: DeFi Mining

Global Biscuits

BlackRock’s Bitcoin ETF is the first to reach $2B in AUM.
The BlackRock iShares Bitcoin ETF (IBIT) has become the first spot Bitcoin product to reach $2 billion in assets under management (AUM). This achievement excludes Grayscale's GBTC, which had nearly $30 billion in AUM at the time of its conversion from a closed-end fund to a spot ETF. On Thursday, investors added approximately $170 million to IBIT, enabling the fund to purchase nearly 4,300 additional bitcoins, bringing the total holdings to 49,952. With the price of bitcoin surpassing $40,000 early Friday, IBIT's AUM exceeded $2 billion. Ranking third in asset gathering among all ETFs launched in the past year, IBIT may soon become the number-one fund in terms of AUM. Fidelity's Wise Origin Bitcoin Fund (FBTC), which held just shy of 44,000 bitcoins as of January 25, is expected to be the next fund to cross the $2 billion mark.

ARK Invest sold millions of ProShares Bitcoin Trust Shares while buying its own Bitcoin ETF.
ARK Invest has continued its trend of offloading shares of the ProShares Bitcoin Trust ETF (BITO) while simultaneously accumulating its own spot bitcoin exchange-traded fund. Cathie Wood's investment firm sold a total of 2,226,191 shares of BITO since January 19, amounting to around $42.8 million at Thursday's closing price. Conversely, ARK Invest purchased 1,563,619 shares of the ARK 21 Shares Bitcoin ETF (ARKB) during the same period, worth approximately $62.3 million. ARKB closed on Thursday at $39.87, registering a negligible 0.68% increase for the day. ARK Invest previously held BITO as a short-term investment, having divested its shares of the Grayscale Bitcoin Trust (GBTC) late last year in anticipation of spot bitcoin ETF approvals in the U.S. The firm now holds $91.4 million worth of ARKB in its ARKW fund, constituting a 5.98% weighting of the fund's total value, while its BITO shares have reduced to just 366,128, valued at $7 million and representing a 0.46% weighting.

SEC delays decision on Grayscale's proposal for spot Ethereum ETF… again!
The Securities and Exchange Commission (SEC) has once again delayed its decision on Grayscale Investments' proposal for a spot Ethereum ETF. The agency issued an order to institute proceedings and sought fresh public comment on the matter, particularly regarding Ethereum's proof of stake mechanism and concerns about the concentration of control or influence. The SEC also raised questions about Ethereum futures products. Comments are due within 21 days, followed by a 35-day rebuttal period. This delay follows the SEC's postponement of decisions on other proposed spot Ethereum funds from BlackRock and Fidelity. While some experts anticipate approval for a spot ether ETF as early as May, Bloomberg Intelligence ETF analyst James Seyffart predicts continued sporadic delays for spot Ethereum ETFs in the coming months, with May 23rd being a significant date to watch. 

Tastes of the regions

United Kingdom says CBDC plans need more time.
The Bank of England and His Majesty’s Treasury have announced that the United Kingdom is not yet ready to release a digital pound, also known as "Britcoin," following a consultation paper on central bank digital currency (CBDC). The decision comes after receiving responses from 50,000 British citizens, businesses, civil society, and academics, with concerns primarily revolving around privacy issues. While a digital pound would offer privacy without anonymity, it would not replace cash, ensuring the public's continued access to anonymous payment options. The government has committed to introducing primary legislation and ensuring parliamentary approval before launching the digital pound, emphasizing user privacy and independence in spending. Currently, 130 countries, including China with its digital yuan, are exploring CBDCs, with 64 countries in advanced stages of exploration, development, pilot, or launch.

Nigerian exchanges face licensing hurdles.
Nigerian crypto exchanges are facing challenges with licensing requirements set by the Nigerian Securities and Exchange Commission (SEC). Analysts like Rume Ophi suggest that the SEC needs to revisit its guidelines for virtual asset service providers (VASPs) to make it easier for local exchanges to obtain licenses. Currently, the licensing requirements, including a minimum upfront capital of 500 million naira, are seen as prohibitive for many local exchanges. Ophi and others argue that these requirements may lead to a dominance of foreign exchanges in Nigeria. Kue Barinor Paul, a Nigerian Web3 legal representative, suggests that Nigerian exchanges and VASPs may need to merge to meet the licensing requirements. The SEC's framework for license registration is seen as more favorable to foreign exchanges, prompting calls for a rework of the guidelines to better accommodate local players. Despite Nigeria's high cryptocurrency awareness and significant potential for crypto adoption, the current licensing hurdles may hinder local exchanges' ability to thrive and attract foreign investment.

Dictionomics:   DeFi Mining

Defi Mining is a term that refers to the process of earning rewards by providing liquidity or participating in decentralized finance (DeFi) protocols. DeFi is a movement that aims to create an open, permissionless, and transparent financial system that operates without intermediaries or centralized authorities. DeFi protocols use smart contracts on blockchains, such as Ethereum, to enable users to lend, borrow, trade, or invest in various assets and services. Defi Mining investments are the funds that are allocated to these protocols in order to earn passive income or yield. Defi Mining investments can be risky, as they are subject to market volatility, hacking, fraud, or regulatory uncertainty. Therefore, investors should do their due diligence to evaluate investment risks.

That’s it for today. If you enjoyed it, forward this issue to your colleagues. If someone forwarded this email to you, subscribe for free here to receive our issues directly in your inbox. We are encouraging whistleblowers with evidence/ If you have any stories you think we should cover, please feel free to share them and write back to us.