Wow, what a week it has been in the cryptocurrency market. Tether’s CEO says it will not launch blockchain, Michigan holds over $10 million in spot Ethereum ETF, Global Dollar stablecoin launches, Bitcoin hits record high. Above $77,000, BlackRock’s IBIT set a record daily inflow of $1.12 billion.
Let’s take a closer look at this and summarize what’s been happening in the cryptocurrency space this week.
Tether will not launch a blockchain
Tether CEO Paolo Ardoino said the company is not currently launching the Tether chain because “neutrality is very important.”
“Various independent L2 solutions are working to support USDt dollars in gas fees,” Ardoino said in a post on X. He noted that Tether is interested in collaborating with businesses and communities rather than trying to centralize everything.
His announcement comes as Tether experienced a record milestone in the final quarter of 2024, generating $7.7 billion in revenue over nine months.
Focusing its attention on the fourth quarter of 2024, Ardoino said the outlook is “very positive,” with on-chain wallets growing by more than 35 million new addresses per quarter.
Michigan holds more than $10 million in spot Ethereum ETFs.
The Michigan State Pension Fund said it currently holds more than $10 million in Ethereum exchange-traded funds (ETFs).
The State of Michigan Retirement System disclosed its holdings in the Grayscale Ethereum Trust (ETHE) and Ethereum Mini Trust ETF (ETH), according to a 13F filing. According to the filing, the Michigan State Pension holds 460,000 shares of ETHE, worth about $10 million, and 460,000 shares of ETH (mini trust ETF), worth about $1.1 million.
This news is significant because the Michigan State Pension Fund became the first institution to disclose its holdings in the ETH ETF. This is a “big win” for Ethereum, according to Eric Balchunas, senior ETF analyst at Bloomberg.
In a post about X he said: “Not only did Michigan’s pension buy the Ether ETF, they bought more than the Bitcoin ETF even though BTC rose by a ton and Ether was in the gutter. $10 million versus $7 million. That’s a pretty big win for Ether, which has one available.”
Launch of Global Dollar stablecoin
The Global Dollar (USDG) stablecoin was launched to drive global stablecoin adoption.
Global Dollar Network’s initial partners include Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood. The USDG stablecoin, pegged to the U.S. dollar and issued in Singapore by Paxos, was launched at a time of fierce competition in the stablecoin market.
Currently, Tether’s USDT and Circle’s USDC stablecoins dominate the stablecoin market. It was reported that USDT accounted for more than 75% in September. However, according to Kraken co-CEO Arjun Sethi, he added that the “lack of competition” in the stablecoin market is “preventing the industry from reaching its full potential.”
“USDG flips this dynamic with a more equitable model that will attract mainstream participants into the ecosystem and accelerate new stablecoin use cases.”
Bitcoin surpassed $77,000, hitting a new all-time high.
Bitcoin continued its upward trend following Donald Trump’s presidential election victory, hitting another high above $77,000.
Earlier this week, Bitcoin reached a new high of $75,315 as a result of President Trump’s victory in the White House. Bitcoin’s last all-time high was reached at $73,000 last March.
But Bitcoin didn’t end there.
It then surpassed $76,000 on major exchanges on November 7th. There was news that Bitcoin hit an all-time high as the U.S. Federal Reserve (Fed) announced that it would cut interest rates by 25 basis points.
It remains to be seen how far Bitcoin will continue to rise. However, according to analysts at Bernstein, Bitcoin could reach between $80,000 and $90,000 by the end of 2024 following Trump’s election.
BlackRock’s IBIT Achieves Record Daily Inflows of $1.12 Billion
BlackRock’s iShares Bitcoin Trust (IBIT) exchange-traded fund (ETF) set a record for new inflows, reaching $1.12 billion, surpassing the previous record of $872 million.
BlackRock’s IBIT net assets now account for $34.29 billion, significantly ahead of its peers. The new record follows a milestone in October when the company reached $30 billion in total assets in 293 days.
Dary McGovern, COO of Bitcoin native “It suggests that things have changed,” he said.
Twelve U.S. spot Bitcoin ETFs also set a new record, reaching $1.38 billion since their launch in January.