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

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

The Ethena team expects that the project will be present in most markets and meet the demands of traditional financial institutions by 2025.

USDe by Ethena: The Fastest-Growing Stablecoin of 2024
Ethena has recently published an article on Mirror, outlining its full-year achievements for 2024 and its roadmap for 2025.
Within just 10 months, USDe, Ethena's flagship stablecoin, has achieved a supply of 6 billion tokens, making it the third-largest stablecoin in the crypto market, trailing only USDT and USDC.
USDe also set a new record as the fastest stablecoin to reach a supply milestone of 5 billion tokens in crypto history, underscoring its potential to meet the growing demand for stablecoins.

In the final month of 2024, Ethena achieved an estimated annual revenue of over $1.2 billion, making it the second-fastest crypto startup to reach $100 million in revenue, surpassed only by pump.fun. Additionally, Ethena set a new record for the highest revenue per employee in the crypto industry as of December.
Following this milestone, Ethena began expanding into the CeFi space. USDe has been integrated into approximately 60% of centralized exchanges (CEXs), and its supply has surpassed USDC's balances on Bybit.
In December 2024, Ethena launched USDtb, a stablecoin backed by BlackRock's BUIDL, specifically designed to share economic benefits with partners such as centralized exchanges.

Ethena has also solidified its role in supporting other protocols. Over 50% of Pendle's total value locked (TVL) originates from Ethena, while approximately 30% of Morpho's TVL is built on Ethena's assets. Similarly, protocols like Sky and Aave have experienced significant growth thanks to their integration with Ethena's products.
2024 marked a pivotal year for Ethena, showcasing its growth potential and laying the groundwork for further expansion in 2025, as the company begins to enter traditional financial markets and continues to grow its on-chain ecosystem.

The team has developed iUSDe, a new version of sUSDe, tailored to meet regulatory requirements and the needs of traditional financial institutions. The development of iUSDe is accompanied by partnerships within TradFi to ensure the widespread distribution of this product.
Ethena's Roadmap for 2025
In 2025, Ethena plans to expand its operations into the traditional financial market through the iUSDe product. This is an upgraded version of sUSDe, designed to meet the legal and technical requirements suitable for the TradFi environment.
Ethena intends to collaborate with asset management funds, private credit funds, prime brokers, and investment organizations to introduce iUSDe, expanding the product's reach within the traditional market.

In addition to TradFi, Ethena will expand its ecosystem through the Ethena Network, supporting developers in building new financial applications around sUSDe.
The first two applications to be announced are Ethereal, a spot and perpetual exchange, and Derive, a project focused on the options market. Ethereal is expected to launch its testnet in early 2025, while Derive will release its token in the coming weeks.

Ethena plans to launch the sUSDe application on Telegram, integrating features such as sending, spending, and saving within a mobile digital banking platform. This app will connect with Apple Pay, providing access to over 900 million users on Telegram, enabling them to use the project's USDe assets.

With its strategic plans and existing infrastructure, Ethena is expected to scale and make a significant impact in both the crypto and traditional financial sectors in 2025 and beyond.

$ENA
#TradFi #ethena #ENA #altcoins #bullish

Amid the market's fluctuations, #StandardChartered unexpectedly stated that China's DeepSeek AI could benefit Bitcoin.
What is DeepSeek AI?
#DeepSeek is an advanced artificial intelligence (AI) system from China, designed to reduce costs and enhance efficiency in various fields. According to Geoffrey Kendrick – an expert from Standard Chartered, the emergence of DeepSeek helps reduce inflation, thereby supporting high-risk assets like Bitcoin.

On January 31, Kazuo Ueda, Governor of the Bank of Japan (BoJ), announced that the central bank remains committed to further interest rate hikes if the economic outlook unfolds as anticipated.
Key Highlights 📝
The BoJ’s decision aligns with its goal of stabilizing inflation and ensuring sustainable economic growth.Governor Ueda emphasized that future adjustments will depend on economic indicators, signaling a data-driven approach. 📊This statement follows a global trend of central banks reassessing monetary policy amid evolving economic conditions. 🌐
Market Implications 💡
This potential policy shift could have significant implications for both domestic and international markets:
Currency Markets: Possible strengthening of the yen (JPY) 💹TradFi: Potential impact on bond yields and equity markets. 📉📈Global Economy: Signals the BoJ’s cautious yet proactive stance in tackling inflation.
As Japan navigates this challenging economic environment, Governor Ueda's remarks highlight the central bank's focus on achieving long-term stability.
Stay tuned for updates as the BoJ’s monetary policy evolves! 🚀
#Japan #BankOfJapan #InterestRates #Economy #TradFi