BlackRock Bitcoin ETF Becomes Largest, RoaringKitty Ignites Meme Coin Frenzy

BlackRock logo, Bitcoin symbol, and RoaringKitty with meme coins, representing the largest Bitcoin ETF and meme coin frenzy.

BlackRock’s iShares Bitcoin Trust (IBIT) has overtaken Grayscale’s GBTC as the largest bitcoin ETF, while President Joe Biden vetoed a bill affecting crypto custodians. Additionally, a Japanese crypto exchange was hacked, and meme coins surged due to Keith Gill’s latest GameStop bet.

Key Takeaways

  • BlackRock’s IBIT has surpassed Grayscale’s GBTC as the largest bitcoin ETF.
  • President Joe Biden vetoed a bill that would have eased crypto custodial services for traditional banks.
  • Japanese crypto exchange DMM Bitcoin was hacked for approximately $308 million worth of bitcoin.
  • Meme coins rallied as Keith Gill, known as RoaringKitty, returned to GameStop trading.

BlackRock’s IBIT Is Now the Largest Bitcoin ETF

In just over four months since its launch on January 11, BlackRock’s bitcoin ETF has become the largest spot bitcoin ETF by assets, surpassing Grayscale’s GBTC. By the end of May, IBIT’s assets reached $19.5 billion, while GBTC’s stood at $19.385 billion.

GBTC, the oldest fund, converted to an ETF when the U.S. Securities and Exchange Commission (SEC) allowed spot bitcoin ETFs earlier this year. At that time, GBTC’s assets exceeded $24 billion. However, as new products entered the market, investors withdrew large sums from GBTC, resulting in approximately $17.9 billion in net outflows since January 11. In contrast, BlackRock’s IBIT has seen substantial inflows, attracting about $16.6 billion this year.

The fee disparity between Grayscale’s ETF and other bitcoin ETFs from BlackRock, Fidelity, and others has been a significant factor in the competition. GBTC charges a 1.5% fee, while IBIT has a 0.25% fee. Grayscale plans to launch a new spot bitcoin ETF with lower fees under the BTC ticker.

President Biden Vetoes Crypto Bill

President Joe Biden vetoed a bill aimed at overturning the SEC’s special regulations for custodians of crypto assets. This SEC policy could pose challenges for traditional financial firms looking to offer crypto custodial services.

The White House had previously indicated its intention to veto the legislation. President Biden expressed a desire to establish a balanced regulatory framework for digital assets under existing regulatory agencies.

Critics argued that the time for Congress to review the SEC’s procedural action under the Administrative Procedure Act had lapsed and that the policy didn’t constitute a rule. Banking trade organizations urged the president to support the removal of the rule, claiming it would make crypto custodial services prohibitively expensive for traditional finance firms.

This move follows a perceived reversal on crypto policy when the SEC approved various filings for spot ether ETFs late last month, despite expectations of rejection.

$300 Million Stolen from Japanese Crypto Exchange

Japanese crypto exchange DMM Bitcoin announced a hack on Friday, resulting in the theft of 4,502.9 bitcoin, valued at approximately 48.2 million yen, or roughly $308 million. DMM Bitcoin assured customers that their bitcoin deposits would be fully compensated through procurements supported by its group companies, although no timeline was provided.

The exchange has halted crypto withdrawals, spot market purchases, and new leveraged trading positions, while also delaying yen-denominated withdrawals. This incident ranks as the eighth largest crypto exchange hack in history and the largest since the $477 million FTX theft in late 2022.

Meme Coins Surge as RoaringKitty Returns

A speculative surge drove up prices for some meme tokens and GameStop (GME) shares on Monday after renowned retail trader Keith Gill, famous for the 2021 GME short squeeze, disclosed his latest bet on the stock. Using his "DeepF—ingValue" alias on Reddit, Gill shared his GME options positions, revealing bets worth more than $115 million in shares and $65 million in call options expiring June 21.

Gill, also known as RoaringKitty on YouTube, triggered a rally in cat-themed meme tokens such as POPCAT and MOG. The unrelated GME meme coin on the Solana network soared roughly 200%. Gill’s social media activity has previously sparked similar rallies, emphasizing his significant influence and market impact since his initial GameStop analysis in 2019.

While bitcoin has been in a sustained bull market throughout the year, the so-called altseason, referring to a rally in altcoins or non-bitcoin tokens, hasn’t materialized yet. However, the frenzy around meme tokens shows that there is still plenty of speculation in the crypto market outside of bitcoin.



No comments yet. Why don’t you start the discussion?

Leave a Reply