Crypto & Blockchain Daily Brief Saturday, January 27, 2024

BlackRock's Bitcoin ETF, the Bitcoin Strategy ProFund (BTCFX), has crossed $2 billion in inflows, making it the largest Bitcoin mutual fund in the world. The fund, which was launched in August, has seen a surge in interest from institutional investors seeking exposure to Bitcoin. It has also benefited from the growing popularity of the cryptocurrency market.The Bitcoin Strategy ProFund is designed to provide investors with exposure to the price of Bitcoin without actually owning the digital currency. It achieves this by investing in Bitcoin futures contracts, which track the price of Bitcoin. The fund's strategy is to buy and hold these contracts in order to capture the potential gains from Bitcoin's price movements.BlackRock's Bitcoin ETF has been able to attract such a large amount of inflows due to the company's reputation and track record in the investment industry. BlackRock is one of the largest asset management firms in the world, with over $9 trillion in assets under management. Its size and scale give it a competitive advantage in attracting institutional investors.However, BlackRock is not the only asset manager looking to capitalize on the growing interest in Bitcoin. Fidelity Investments, one of the largest asset managers in the world, is also planning to launch a Bitcoin ETF. The company has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch the Wise Origin Bitcoin Trust.Fidelity's Bitcoin ETF would offer similar exposure to Bitcoin as BlackRock's fund, but it would be structured as a trust rather than a mutual fund. The trust would hold Bitcoin directly, rather than investing in futures contracts. Fidelity's application is currently under review by the SEC, and a decision is expected in the coming months.Overall, the growing interest in Bitcoin ETFs from institutional investors is a positive development for the cryptocurrency market. It provides a regulated and secure way for investors to gain exposure to Bitcoin, which could help to further drive adoption and acceptance of the digital currency.

The US government is planning to auction off approximately $130 million worth of Bitcoin that was seized from the Silk Road dark web marketplace. The auction will be conducted by the US Marshals Service (USMS) and will take place on November 5th.The Silk Road was an online black market that operated from 2011 to 2013 and was known for facilitating the sale of illegal drugs and other illicit activities. The site was shut down by the FBI in 2013, and its founder, Ross Ulbricht, was arrested and later sentenced to life in prison.This will be the first Bitcoin auction conducted by the US government since 2018. In that auction, the USMS sold approximately 2,170 Bitcoin, worth about $25 million at the time. The upcoming auction will include 69,370 Bitcoin, which is currently worth around $130 million.The auction will consist of four separate blocks of Bitcoin, with each block containing a different amount of Bitcoin. The blocks will be auctioned off in a sealed-bid format, meaning that bidders will submit their offers privately, and the highest bidder for each block will be awarded the Bitcoin.To participate in the auction, bidders must first register with the USMS and submit a $200,000 deposit. If a bidder is not successful in winning any of the blocks, their deposit will be returned to them. However, if they are successful, their deposit will be applied to the purchase price.The USMS has stated that it will not disclose the identity of the winning bidders, and the Bitcoin will be transferred to the winners within one business day of the auction's conclusion.