Bitcoin (BTC) dipped below $64,000 early Thursday before recovering to trade slightly above $65,000. Ether (ETH) prices fell more than 7% as investors continued to pull money of of Grayscale’s Ethereum Trust (ETHE).

Grayscale’s Ether ETF Outflows Weigh on Ether Price

After a strong Day 1 with $106.6 million of net inflows overall, spot ether ETFs on Wednesday experienced their first day of net outflows thanks to the $326.9 million that left the preexisting Grayscale product. This brings cumulative two-day outflows for Grayscale’s ETHE to $811 million.

These outflows from the Grayscale fund are expected to continue over the near term, as investors switch to cheaper ETF offerings or simply leave the market.

In total, outflows for spot ether ETFs were $133.3 million on Wednesday, according to Farside Investors. The Fidelity Ethereum Fund (FETH) had the strongest day among the spot ether ETFs, with $74.5 million of inflows.

Other Crypto ETF News

On the bitcoin side of the spot crypto ETF market, there were $44.5 million in inflows Wednesday, according to Farside Investors.

Crypto asset manager Hashdex took another step toward the eventual launch of its proposed Hashdex Nasdaq Crypto Index US ETF with the filing of its S-1 registration form with the U.S. Securities and Exchange Commission (SEC). The proposed ETF would start with combined holdings of spot bitcoin and ether, in addition to potentially adding other crypto assets as they gain regulatory approval over time.

Marathon Digital Doubles Down on Bitcoin

Shares of bitcoin miner Marathon Digital Holdings (MARA) rose Thursday after it announced a $100 million bitcoin purchase. The company not only added to the stash of bitcoin on its books, it also committed to revert to its previous policy of “full HODL,” a crypto term for “hold on for dear life,” with all the bitcoin it mines going forward.

According to a study by US magazine Forbes, using data from the firm SimilarWeb, Argentina has the highest cryptocurrency adoption rate of any country in the Western Hemisphere, when calculated by percentage of its population. Out of the 130 million visitors to 55 of the biggest cryptocurrency trading platforms in the world, some 2.5 million came from this country.

Most, it seems, are looking to save. “Argentina is an anomalous market where many people purchase USDT [shorthand for ‘Tether,’ a cryptocurrency that is pegged to the U.S. dollar] and don’t leave room for much more,” stated Maximiliano Hinz, Latin American head of crypto trading platform Bitget. “We don’t see this elsewhere. Argentines buy Tether in cash and do nothing with it.”

Argentina has established no regulations to reduce the risk in the use of stablecoins, such as Tether, which can seem like a perfect way of saving. On the other hand, cryptocurrencies linked to the greenback are consistent with the concept of dollarisation, but it is up to the user to find a secure way of buying them, keeping them and using them.

Strangely enough, Forbes informed that the most reliable trading platforms and markets in the works are not the options most used by Argentines. Perhaps for this reason, the same publication identified in its article about the 20 most reliable cryptocurrency trading platforms that none of the five main cryptocurrency suppliers in Argentina make the list, due to deficient internal controls and a lack of regulatory supervision.

On March 25 this year, the Argentine Securities and Exchange Commission (CNV) announced a registration requirement for “all those using website, social networks or other media, sending deals/ads to individuals residing in Argentina” and receiving funds by the use of technology. 

Up to June 20, the public register shows 48 firms, most of which are relatively small companies operating locally. Those most used by Argentines did not complete the CNV’s form.

“It’s extremely important to know who is selling you assets or who you’re trading with, since, even though there is an increasing number of clear regulations for cryptocurrencies with the CNV’s new regulation, there is still the possibility of cons or fraud, as was the case with FTX internationally or Zoe Cash in Argentina,” warned Matías Reyes, Country Manager of cryptocurrency platform TRUBIT, in conversation with Noticias.

“The handling of cryptocurrencies offers many opportunities, but it is important to take certain precautions, especially given the most common risks in the ecosystem. 

“Price volatility is one: cryptocurrencies are decentralised virtual assets, which means that the purchase and sales price is regulated automatically by supply and demand, even though there are some that keep their price stable, their liquidity in the market has to be reviewed,” the accountant and virtual finance expert specified.

These recommendations are supplemented with some of common knowledge, such as not forgetting passwords or not losing the keys giving access to assets.

“Argentina is trending in the use of cryptocurrencies due to several economic and social factors. The persistent inflation and devaluation of the Argentine peso have led citizens to find ways to preserve their capital, finding in cryptocurrencies an appealing alternative,” said Reyes.

“Besides, the limited accessibility to foreign currency has driven the use of cryptocurrencies as a saving method and protection against economic uncertainty,” he highlighted.

Asked which operations are required to convert cryptocurrencies into actual dollars in this country without losing value, Reyes answered: “In Argentina, with most exchanges you have the possibility of buying any virtual asset with digital dollars (USDT or USDC mostly) and vice versa, that is, exchanging a cryptocurrency for this stablecoin, combined with this, if users have a dollarised account, it can be transferred to their bank and withdrawn by any means authorised by the institution; for these transactions no monetary value is lost for the dollars, but there can be conversion fees.”

According to the expert, who has more than 15 years’ experience in the financial market, it is important to operate with cryptocurrency trading platforms with the most liquidity, and for that, he recommends reviewing the site CoinMarketCap, one of the major and most relevant websites in the ecosystem. It is also advisable to check that cryptocurrency trading platforms are regulated by the CNV, which allows for more transparency in transactions and prevents cons.

“Operating with cryptocurrencies or virtual assets is quite simple, although it is necessary to meet some requirements. Firstly, you have to be over 18 and pass the identity verification process (KYC), where you will be asked your National Identity Document (DNI). 

“If a transfer from a virtual bank account is required, there may be other requirements, but generally these are enough. Lastly, it is a good idea to know the basics on how cryptocurrencies work and the risks they carry, that way you can trade more confidently,” the specialist said.

New Delhi: The Narcotics Control Bureau (NCB) has registered 92 cases related to the use of darknet and cryptocurrency in drug trafficking in the last five years, Rajya Sabha was informed on Wednesday. In response to a written question, Minister of State for Home Affairs Nityanand Rai said, “Use of darknet, cryptocurrencies and parcel and couriers for drug trafficking have been noticed.”

Data provided by the ministry in the response showed that between 2020 and 2024 (till April), the NCB has registered 92 cases in connection with the use of darknet and cryptocurrencies in drug trafficking.

According to it, the bureau registered three such cases in 2020, 49 in 2021, eight in 2022, 21 in 2023 and 11 till April this year.

In addition, 1,025 cases involving parcel and couriers in narcotics trafficking have been reported by all drug law enforcement agencies during the period, it said.

To tackle the trend, a special task force on darknet and cryptocurrency has been constituted to monitor suspicious transactions related to drugs on the darknet, Rai said.

“The Narcotics Control Bureau in association with Interoperable Criminal Justice System (ICJS) has created a portal called National Integrated Database About Arrested NDPS Offenders (NIDAAN),” he said.

Rai added that an NCORD portal has been developed as an all-in-one portal for information related to drug law enforcement.