Today in crypto: Bitcoin investors are back in the green as US spot BTC exchange-traded funds (ETFs) posted their biggest inflows in over a month, the Federal Reserve pulled guidance limiting how its supervised banks engaged with crypto, and US Commodity Futures Trading Commission (CFTC) acting chair Caroline Pham will leave the regulator to join MoonPay.
Spot Bitcoin ETFs record $457 million inflows in “early positioning” push
Spot Bitcoin ETFs recorded $457 million in net inflows on Wednesday, marking their strongest single-day intake in more than a month as institutional demand showed signs of re-acceleration.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) led the inflows, recording the largest daily intake at roughly $391 million, accounting for the majority of the day’s net inflows. BlackRock’s iShares Bitcoin Trust (IBIT) followed with around $111 million, according to data from Farside Investors.
The inflows lifted cumulative net inflows for US spot Bitcoin (BTC) ETFs to more than $57 billion, while total net assets climbed above $112 billion, equivalent to around 6.5% of Bitcoin’s total market capitalization.
The rebound followed a choppy stretch in November and early December, when flows alternated between modest inflows and sharp outflows. Spot Bitcoin ETFs last saw inflows above $450 million on Nov. 11, when funds pulled in roughly $524 million in a single day.
Fed pulls guidance blocking its banks from crypto
The US Federal Reserve on Wednesday withdrew guidance from 2023 that limited how Fed-supervised banks, including uninsured ones, engaged with crypto, as it was outdated and the “financial system and the Board’s understanding of innovative products and services have evolved.”
The guidance said uninsured banks must follow the same rules as federally insured institutions, based on the principle that similar activities pose similar risks and should be subject to identical regulation.
Uninsured banks were prevented from engaging in activities that weren’t permitted for national banks, like crypto services, which automatically disqualified Fed membership because the institution’s primary activities weren’t allowed.
The Fed issued new guidance the same day to establish a formal pathway for both insured and uninsured Fed-supervised state member banks to pursue “innovative activities,” such as cryptocurrencies, provided risk-management expectations are met.
Acting CFTC chair to join MoonPay after leaving agency
Caroline Pham, the acting chair of the US Commodity Futures Trading Commission, will leave the financial regulator to join MoonPay, following the Senate confirmation of her successor.
In a Wednesday X post, MoonPay confirmed reports that Pham would join its team as a chief legal and administrative officer. She became acting chair in January amid the changeover in presidential administrations and has been the sole Republican commissioner at the CFTC for months, following the end of other leaders’ terms and resignations.
Pham said in May that she planned to leave the CFTC following the Senate confirmation of Brian Quintenz, US President Donald Trump’s first pick to replace her as chair. However, after a pushback from Gemini co-founders Cameron and Tyler Winklevoss, the White House withdrew Quintenz’s nomination and later named Securities and Exchange Commission official Michael Selig as the president’s pick for CFTC chair.
The acting CFTC chair would not be the first person in a high-level regulatory position to immediately move into a role with the crypto industry. Summer Mersinger, another CFTC commissioner, left the agency in May to become the CEO of the Blockchain Association, a crypto advocacy group.
During her time as acting chair, Pham’s agenda was consistent with White House directives, including those related to the cryptocurrency industry. She reported in September that the CFTC had taken only 18 actions while she was in charge, and no enforcement cases.
The acting chair also launched the Crypto CEO Forum and CEO Innovation Council, which included leaders from crypto companies.