TradFi

Since the BTC ETF trading began, Bitcoin has shown the following performance:
From a local high of $48,900 to a local low of $40,683, and currently at $41,500.Who caused such a surprise at the launch of #ETF products by companies like Blackrock, Fidelity, and Bitwise?
Here's a brief recap:
"Cobie had stated in a message that buying Bitcoin at $26K in anticipation of the BTC ETF was practically 'free money.' He was almost certain - 99% - that the BTC ETF would be approved. He expected that by the time of approval, Bitcoin would be trading at around $50K.
However, he also warned that the approval of the BTC ETF could be a trap. This event might provide an exit opportunity for investors stuck in the Grayscale BTC trust, which is holding $35B. Barry Silbert's parent company is burdened with massive debts, and they have no plans to reduce their annual 2.5% management fee.
In summary - the attempt to keep 630K BTC as hostages could lead to negative trading volumes and withdrawals from GBTC. This, in turn, might result in a 15% loss for BTC ETF buyers in the first week itself, possibly triggering a widespread 'sell the news' sentiment, significantly dragging down the market.
Cobie advised to cash in on the fair gains since August 23rd and sell a day before the BTC ETF approval."
So, who's pouring cold water on us and on TradFi $BTC ?
It's Barry Silbert and his Grayscale hostage friends.
In the first five days, the BTC ETF saw:
A positive inflow of $722M on Jan 11,$707.8M on Jan 12,$549.6M on Jan 16,$932.3M on Jan 17, and$448M on Jan 18.
Despite $2.2B in Grayscale redemptions and $3.36B in inflows, why do we observe a 17% decline in BTC?
I propose three hypotheses:
Blackrock, in their BTC ETF application, accurately predicted the inflow and were able to accumulate BTC reserves on Coinbase through affiliated partners. For each required new share issuance and BTC purchase, they are transferring pre-purchased BTC from one account to another, formally meeting their reserve requirements.FTX and bankrupt BlockFi own a significant amount of GBTC shares. For example, FTX alone has about $720M in GBTC. Moreover, Grayscale shares are part of the liquidated assets of another bankrupt entity, 3 Arrow Capital. These liquidators might have dumped their holdings to capitalize on the high demand for BTC ETFs. Grayscale's hostages are also exploiting their long-awaited chance to escape the 2.5% annual fee of Silbert's commission.From a simple mathematical perspective, the process of issuing/redistributing BTC ETF shares usually follows a T+1 schedule.
Grayscale likely anticipates their large BTC transfers to Coinbase's deposit addresses, causing market volatility and declines.
I suspect Grayscale takes a short position on futures, anticipating the scale of the next day’s redemptions.
Blackrock's partners are likely aware of these movements.
Suppose Blackrock needs to buy $200M worth of BTC the next day. If the closing price on a given day was $43,000, they'd need about 4,650 BTC.
But if they know Grayscale's redemption will be around $600M and that Grayscale will be moving 10-15K BTC, causing a negative market reaction, why should Blackrock buy at $43,000? They could wait for the market to react to the BTC influx and then buy at a panicked price, say $40,700.
The savings? They could be passed on to affiliated partners. At the right time, instead of purchasing more, they could replenish the fund with these 'accidentally' cheap bitcoins.
How long will Grayscale continue this apparent dump? The key news is that Grayscale still has 600K BTC in reserve. The early buyers of Blackrock's BTC ETF are not endlessly patient. At some point, they may realize the predicament they're in and look to convert their Blackrock shares back into considerably devalued dollars.
#tradfi #BitcoinETFapproved

Bitwise, one of the leading crypto asset managers, has chosen Maple Finance – a decentralized lending protocol (DeFi) – to provide loans for institutions. This is a bold move, especially as the overcollateralized lending sector is still affected by the collapse of FTX in 2022.
Bitwise Joins DeFi Lending – A Strategic Move.
With a deposit of over 1 million $USDC on Maple Finance's platform, Bitwise is earning a yield of about 9.5%, instead of letting capital sit idle. According to Maple's CEO, Sidney Powell, this is how Bitwise leverages cash flow while looking for new investment funds.

SOMA.finance is the first fully compliant multi-asset decentralized exchange (DEX) and capital raising platform. It aims to bridge the gap between traditional finance (TradFi) and decentralized finance (DeFi) by offering tokenized securities that are regulated and compliant with securities laws.
Key Features and Highlights:
Compliance: SOMA.finance operates under a regulatory framework, partnering with Tritaurian Capital, a U.S. regulated broker-dealer, to ensure compliance with securities laws. This mitigates risks often associated with other DeFi platforms.
Tokenized Securities: The platform allows for the issuance and trading of tokenized equities, digital assets, and non-fungible tokens (NFTs). This opens up new opportunities for investors to access a wider range of assets in a decentralized manner.
SOMA Token: SOMA.finance has its own native token ( $SOMA ) which is a legally issued digital security open to global and US retail investors. The token offers benefits like dividends, yield farming, compliant staking, and corporate ownership.
Accessibility: SOMA.finance aims to make digital securities accessible to both retail and institutional investors, democratizing access to investment opportunities.
Overall:
SOMA.finance is a unique platform that combines the innovation of DeFi with the regulatory compliance of TradFi. This makes it a promising player in the evolving landscape of digital assets and decentralized finance.

 In a surprising turn of events, the 2024 U.S. Presidential election results are making waves in the financial world. According to Ripple CEO Brad Garlinghouse, traditional financial (TradFi) firms are now embracing cryptocurrency at an unprecedented pace, spurred on by the pro-business and deregulation policies promised by the Trump administration.
🌟 TradFi Meets Crypto: A New Era Begins
Garlinghouse highlights that the renewed interest in crypto from TradFi giants comes as no surprise:
Regulatory Clarity: With expectations of reduced regulatory uncertainty under the new administration, firms are finding it easier to explore crypto innovations.Institutional Adoption: Big names in traditional finance, including major banks and asset managers, are entering the crypto space, leveraging blockchain technology to streamline operations and enhance efficiency.Spotlight on XRP: Ripple’s native token, $XRP , is reaping the benefits, with institutions increasingly using it for cross-border payment solutions.🔑 Key Factors Driving TradFi’s Crypto Shift
Pro-Business Policies: The Trump administration has signaled support for blockchain innovation and fintech growth, paving the way for institutional adoption.Rising Demand for Tokenization: TradFi firms are exploring tokenized assets as a way to modernize financial products, including securities, real estate, and commodities.Ripple’s Role: Ripple continues to lead in providing blockchain solutions for global payments, positioning itself as a bridge between crypto and traditional finance.
💬 Brad Garlinghouse’s Take
Garlinghouse recently stated:
"The tide is turning. We’re seeing a massive influx of interest from TradFi players who were previously hesitant about crypto. This is a pivotal moment for the industry, as we witness the convergence of traditional finance and blockchain technology."
🔮 What This Means for Crypto
Increased Capital Inflows: With TradFi firms entering the market, significant capital is expected to flow into cryptocurrencies and blockchain projects.Mainstream Adoption: As institutions embrace crypto, public trust in digital assets is likely to grow, accelerating mainstream adoption.Regulatory Evolution: The balance between innovation and compliance will play a crucial role in shaping the next phase of crypto adoption.
⚡ Final Thoughts
The intersection of traditional finance and crypto is reaching new heights, driven by a combination of regulatory shifts, institutional interest, and innovative use cases. As TradFi firms flock to the blockchain space, the industry stands on the brink of transformative growth.
What are your thoughts on this trend? Is this the beginning of a new financial revolution? Let us know below! 🚀
#CryptoNews #TradFi #Ripple #XRP #BinanceMegadopSolv