Morgan Stanley's Bitcoin ETF Could Attract $160 Billion, Says Strategy CEO

The U.S. stock market sell-off on Thursday caused a significant drop in investor sentiment, leading to a $2.7 trillion market-cap wipeout. Bitcoin also plummeted to its lowest level since April, with the S&P 500 index dropping nearly 4%.

The U.K. Serious Fraud Office is investigating Basis Markets, a failed crypto project accused of defrauding investors of $28 million through two fundraising rounds in late 2021. Two men were arrested, and digital devices and documents were seized in the inquiry.

JPMorgan predicts potential outflows of $2.8 billion from MicroStrategy if excluded from MSCI indices, with a possible $11.6 billion if other exchanges follow suit. The company's market value premium against its Bitcoin stockpile has decreased significantly.

Kalshi, a prediction market, raised $1 billion at an $11 billion valuation, led by Sequoia and CapitalG. Its rival, Polymarket, is also seeking funding at a $12-15 billion valuation after a recent $1 billion round.

Ray Dalio believes Bitcoin has drawbacks compared to gold as a store of value due to its reliance on a global network for transactions. He expressed concerns about Bitcoin's potential vulnerabilities to tracking, hacking, and quantum computing threats, unlike physical gold.

On-chain data indicates that Owen Gunden, an early Bitcoin investor, has potentially sold his entire 11,000 BTC stash for $1.3 billion. Gunden's crypto fortune fluctuated over the years, reaching $936 million in 2021 before dropping to $209 million in 2022.

Metaplanet, the largest corporate holder of Bitcoin in Japan, introduced preferred shares named "Mars" and "Mercury" to raise funds and pay dividends. Mars offers a fluctuating dividend rate to minimize volatility, while Mercury provides a fixed annual dividend and conversion option.

The Swiss National Bank has indirectly increased its exposure to bitcoin by acquiring shares in Michael Saylor’s Strategy and other BTC-related firms. Despite being a small fraction of its portfolio, this move indicates a subtle shift towards cryptocurrency investments.

The bitcoin price has plummeted to $86,000 from $126,000 in October, sparking fears of a $1 trillion market sell-off. Traders are concerned about the Federal Reserve's stance after strong job growth data.

Bitcoin dropped below $87,000, marking a 13.5% weekly decline, following concerns about a potential third rate cut and delayed jobs data release. The overall crypto market saw liquidations surge to $933 million, with Bitcoin leading at $380 million.