The Most Important Cryptocurrency News of November 4, 2024

Bitcoin ETFs See Significant Inflows Ahead of U.S. Election

Investors have significantly increased their investment in cryptocurrency exchange-traded funds (ETFs) ahead of the U.S. presidential election, particularly those tracking bitcoin, anticipating a potential second term for former President Donald Trump. These investors expect substantial price volatility for bitcoin during the election week. Bitcoin ETFs saw net inflows of $917.2 million, with BlackRock’s iShares Bitcoin Trust ETF alone attracting $872 million. This surge is driven by optimism for possible crypto-friendly legislation if Trump’s party gains control. Betting markets are giving higher odds to Trump’s victory over Democrat Kamala Harris, despite the tight polls. The crypto derivatives market is also bracing for high volatility, with potential daily price swings of around 3.7% projected through Nov. 8. However, traders expect the volatility to subside post-election and bitcoin prices to continue their upward trend.

Crypto Firms Launch Global Stablecoin Network

A consortium of financial technology and cryptocurrency companies including Robinhood, Kraken, and Galaxy Digital introduced a joint stablecoin pegged to the U.S. dollar. The aim of the newly formed Global Dollar Network is to accelerate usage of stablecoins worldwide and promote an asset that provides proportionate economic benefits to its partners.

Bitcoin Slides, Dogecoin Rises Amid Election Uncertainty

Bitcoin prices dropped 1.25% to $68,334 on Tuesday, influenced by the uncertainty surrounding the upcoming U.S. election. Other major cryptocurrencies such as Ethereum and Solana also saw declines. Contrary to the trend, Dogecoin, promoted by Elon Musk, rose 3.2% to nearly 16 cents. The cryptocurrency market appears to favor Donald Trump due to his promises such as creating a Bitcoin strategic reserve and replacing the current SEC Chair, Gary Gensler. Although Vice President Kamala Harris has shown support for cryptocurrency, her increasing election odds have coincided with a decline in digital-asset prices.

Crypto Hedge Funds Rally as Bitcoin Nears ATH

Crypto hedge funds have seen remarkable gains due to rising digital asset prices and institutional interest, with bitcoin nearing its all-time high of $73,000. Notably, Tephra Digital, backed by Jefferies’ Leucadia Asset Management, increased by nearly 40% year-to-date. MNNC Group also appreciated by 30%. In the UK, Nickel Digital and Fasanara Digital recorded gains of nearly 25% and 19%, respectively. Institutional investment in crypto ETFs has surged, with major holders including Millennium Management, Jane Street, Capula, Goldman Sachs, Schonfeld, and Morgan Stanley. Millennium Management held over $1 billion in bitcoin ETFs by mid-year, while Goldman Sachs invested over $400 million in the same period. The market capitalization of crypto assets rose to approximately $2.3 trillion from $1.6 trillion at the start of the year. Additionally, investment bank Houlihan Lokey has acquired London-based machine learning firm PSL to enhance their financial and valuation advisory services.

FBI Recovers Funds for Victims of Crypto Scam

In Wichita, Kansas, a federal courtroom saw emotional scenes as victims of a bank embezzlement scheme learned they would recover their stolen funds, thanks to efforts by the FBI. Former Kansas bank CEO Shan Hanes, who was sentenced to 24 years in prison for embezzling $47 million from customer accounts and wiring the money to cryptocurrency scammers, had his victims’ money recovered from a cryptocurrency account held by Tether Ltd. in the Cayman Islands. The embezzled funds were originally taken from customer accounts and Hanes’ close connections, including friends, neighbors, and even his church and daughter’s college fund. Many victims believed they had lost their life’s savings. Federal Judge John W. Broomes assured the victims that they would be recompensed in full, leading to an emotional reaction in the courtroom. Hanes’ actions led to Heartland Tri-State Bank’s closure, resulting in losses for both its customers and shareholders. Hanes admitted to his wrongdoing, but his attorney emphasized that he too was duped by a sophisticated scam known as “pig butchering.” Despite the recovery of funds, $47.1 million remains owed to the Federal Deposit Insurance Corporation (FDIC).

$20 Million Disappeared from Failed Builder Before Collapse

The Federal Court in Brisbane heard that Robert Harder, founder and director of the collapsed national building firm Privium, orchestrated complex transactions to divert $20 million from the company before it failed. Harder aimed to establish his cryptocurrency, Open Gold, through a managed investment fund, funneling funds into various digital asset exchanges and crypto wallets. The court noted that Privium owed over $40 million to creditors and that much of this amount was tied up in a network of shell companies and cryptocurrency investments. Investigations revealed that Harder transferred substantial amounts to anonymous wallets, complicating recovery efforts. ASIC (Australian Securities and Investments Commission) is working with blockchain forensic teams to trace the missing funds. This case highlights the ongoing risks associated with unregulated crypto transactions.