Five Things to Know in Crypto This Week: BTC-Spot ETF Market Delivers BTC Gains

Key Insights:

• BTC-spot ETF Market records inflows for five consecutive sessions.
• XRP revisited sub-$0.50 on fake news of hackers gaining access to Ripple wallets.
• Senator Warren targeted crypto mining in a new anti-crypto campaign.

BTC-Spot ETF Market: Inflows Fuel BTC Gains

BTC was up 2.87% to $43,271 from Monday to Saturday. Investors reacted to BTC-spot ETF market flow and volume data throughout the week.

The BTC-spot ETF market saw net inflows for a fifth consecutive day on Thursday. Downward trends in Grayscale Bitcoin Trust (GBTC) outflows were pivotal to the positive flow trends.

Significantly, iShares Bitcoin Trust (IBIT) saw higher trading volumes than GBTC on Day 15 of trading. However, a more impressive milestone was IBIT hitting $3 billion in assets in three weeks. ETF Institute co-founder Nate Geraci shared the news, saying,

“Now in the top 10% of all ETFs by assets.”

US Federal Reserve Briefly Sent BTC to Sub-$42,000

BTC-spot ETF market inflows offset the effects of a hawkish Federal reserve and a hotter-than-expected US Jobs Report.

On Wednesday, the Fed kept interest rates at 5.50%. However, the Fed surprised the markets, pouring cold water over bets on a March Fed rate cut. Fed Chair Powell talked about the Fed needing more confidence inflation will sustainably fall toward 2% before cutting rates.

The January US Jobs Report also reduced bets on a March Fed rate cut. Nonfarm payrolls surged by 353,000, with average hourly earnings up 4.5% year-over-year versus 4.1% in December.

According to the CME FedWatch Tool, the probability of a March Fed rate cut fell from 38.0% to 20.5% on Friday.

Nonetheless, the US equity markets and BTC enjoyed a positive Friday session. BTC gained 0.12% on Friday, while the Nasdaq Composite Index rallied 1.74%.

SEC v Debt Box: SEC Files Motion to Dismiss to Avoid Sanctions

On Tuesday, January 30, the SEC filed a Motion to Dismiss in the SEC v Debt Box case. Within the Motion to Dismiss filing, the SEC argued sanctions are inappropriate and unnecessary. The SEC also outlined corrective measures to prevent further misrepresentations. Proposed corrective measures included,

“Mandatory training for all Enforcement Division staff involved in investigations and litigation on the importance of candor and the duty to promptly correct any inaccuracies, as well as the unique conditions that apply when seeking emergency relief.”

The case grabbed the crypto headlines in December 2023. In December, Judge Robert Shelby ordered the SEC to show cause why the court should not sanction SEC lawyers for making false and misleading representations to the court.

The SEC filed charges against Debt Box in July 2023, alleging that the firm sold unregistered securities.

Amicus Curiae attorney John E Deaton responded to the Court order in December, saying,

“The SEC never lets the truth get in the way of their lies. The case was much bigger than XRP. But, I did buy more XRP AFTER the lawsuit because I knew we would win. Plus, It was like betting on myself and betting the judge would follow the law.”

Ripple Co-Founder Chris Larsen Hack Sent XRP Below the $0.50 Handle

On Wednesday, XRP holders became the victim of fake news. Reports of hackers accessing 213 million XRP through Ripple wallets sent XRP to a low of $0.4861.

Chris Larsen responded to the reports, stating that hackers gained unauthorized access to his personal wallets.

Ripple CEO Brad Garlinghouse had this to say about the inaccurate reporting,

“Given some irresponsible speculation and reporting, I want to reiterate that NO Ripple-managed wallets were compromised. Full stop.”

For the current week, XRP was down 2.96% to $0.5086 from Monday to Saturday. There were no SEC v Ripple case-related updates to influence investor sentiment in the week. The SEC and Ripple await a Judge Analisa Torres ruling on the SEC Motion to Compel.

Senator Elizabeth Warren Targeted Crypto Mining in New Anti-Crypto Move

On Thursday, Senator Elizabeth Warren retargeted cryptos, saying,

“For years, I’ve been ringing the alarm that cryptomining uses more energy than entire cities. Secretary Granholm’s decision to track crypto emissions is powerfully important in our fight to rein in crypto’s carbon pollution.”

Previously, Senator Warren targeted cryptos, citing its use in illegal activity. Senator Warren is pushing for legislation that would introduce banking-style regulations. The Digital Asset Anti-Money Laundering Act could also give the SEC greater authority over the US crypto market.