Bitcoin ETFs pave the way, Genesis’ overpayment bankruptcy plan and more.

Cathy Wood, CEO of ARK Invest, said that Bitcoin (BTC) is becoming a substitute for gold.

In the year In an interview on February 4, Wood said she believes that, like gold, cryptocurrency will soon prove itself as a “risk-off asset” — a term used to describe investments during periods of uncertainty or financial market turmoil.

ARK's new position in the Bitcoin exchange-traded fund (ETF) saw inflows of nearly $650 million in January, leading some ETF experts to classify the fund as a “strong mid-cap,” indicating strong performance with growth potential. Market is currently dominated by Financial BlackRock and Fidelity.

But adoption may not come without obstacles. According to a recent Bloomberg report, Bitcoin ETFs are doing due diligence on major trading platforms. The result is that companies like LPL Financial Holdings – the largest independent broker-dealer in the United States – will make the BTC ETF available to more than 19,000 independent financial advisors overseeing $1.4 trillion in assets.

Since the launch of spot Bitcoin ETFs in the United States, the crypto market has not moved much, and according to market experts, it may remain this way until the second half of the year. It is difficult to say whether the era of Bitcoin has begun or not, but the current wind may be the last gasp of the long crypto winter.

This week's CryptoBiz explores Bitcoin ETF performance, Vast Bank's exit from crypto, MicroStrategy's latest BTC rally, and Genesis' generous bankruptcy plan.

BlackRock and Fidelity Bitcoin ETFs reached the top 10 in January flows

BlackRock and Fidelity's spot Bitcoin ETFs ranked among the ETFs with the highest flows since January, totaling around $4.8 billion. BlackRock's iShares Bitcoin Trust had roughly $2.6 billion in net inflows, ranking eighth, while the Fidelity Wise Origin Bitcoin ETF came in 10th with $2.2 billion in net inflows, according to a Feb. 3 report from Morningstar. The data also showed Grayscale Bitcoin Trust had the second-highest inflows among ETFs in January, with an estimated $5.7 billion withdrawn during the month.

Two of the top 10 Bitcoin ETFs of *all* ETF flows in January…

I never thought I would see the day.

By @MorningstarInc pic.twitter.com/o7L5CEu5Ef

— Nate Geraci (@NateGeraci) February 3, 2024

Genesis' bankruptcy plan will pay customer claims, DCG says

Digital Currency Group (DGG) — the parent company of bankrupt lender Genesis Capital — has challenged Genesis' bankruptcy plan, saying it overpays creditors and violates bankruptcy laws. DCG's filing on Feb. 5 suggested Genesis was charging its customers more than they could legally pay. According to the DCG, the proposed plan “disproportionately favors a small group of creditors over others” and “violates bankruptcy law.” In November 2022, Genesis filed for bankruptcy in January 2023, after the withdrawal was cut following liquidity problems. The company reportedly owes more than $3.5 billion to the top 50 creditors.

The first US bank to allow customers to keep their crypto accounts in check

Vast Bank, one of the first US banks to integrate crypto transactions with traditional checking accounts, has announced that it has discontinued mobile cryptocurrency banking services from Google and Apple. In an FAQ posted on the bank's website, Vast Bank said it would refund any remaining holders of crypto in cash. Vast Bank , the order pointed out that Vast Bank was engaging in “unsafe or unsound practices” around risk management and control.

Microstrategy buys $37 million in Bitcoin, bringing its holdings to 190,000 BTC.

MicroStrategy, the largest public holder of Bitcoin, says it acquired an additional 850 BTC in January, bringing its total holdings to 190,000 BTC, worth $8.1 billion. In the year Overall, MicroStrategy posted net income of $89.1 million, compared to a loss of $249.7 million in 2022. Company revenue fell 6.1 percent to $124.5 million over the same period. MicroStrategy became the first publicly traded company in December 2020, buying bitcoin for capital allocation.

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