Here’s what happened in crypto today

Today in crypto, Barclays’ BlackRock Bitcoin ETF holdings rose 48% in the third quarter, pro-crypto lawmaker Tom Emmer was elected House Republican minority whip as Democrats prepare to take control of Congress and hotter-than-expected US inflation raised concerns about a potential half-point Federal Reserve rate hike in December.

Barclays boosts BlackRock Bitcoin ETF stake 48% as banks expand holdings

Barclays reported holding 3.94 million shares in BlackRock’s spot Bitcoin exchange-traded fund (ETF) at the end of the third quarter, up 48% from the previous quarter.

The position in the iShares Bitcoin Trust ETF (IBIT) was worth about $187 million on Sept. 30, up from $88.5 million for 2.66 million shares on June 30, according to Barclays’ Friday Form 13F filing.

“Early readings suggest longer-term holders make up a growing share of the spot bitcoin ETF investor base,” Bitwise analyst Camran Khosravi told Cointelegraph, pointing to increased bank exposure, including at Citigroup.

Citigroup reported a new position worth about $119 million in the Fidelity Wise Origin Bitcoin Fund (FBTC). Its reported IBIT holdings also rose 50% to about 521,000 shares, from 347,000 at the end of June.

The filings offer an early indication of changing institutional Bitcoin ETF ownership, with more major banks and hedge funds yet to disclose their third-quarter positions. Institutional investment managers have until Monday to file their third-quarter holdings reports.

Crypto ally Tom Emmer elected House GOP minority whip

Pro-crypto US Representative Tom Emmer has been elected House Republican minority whip, securing the party’s second-highest leadership position as Democrats prepare to take control of Congress in January.

Emmer beat Texas Representative August Pfluger in a 103-76 secret ballot vote, according to Politico. He previously served as House Republican majority whip and will remain the party’s No. 2 leader, this time under incoming Minority Leader Jim Jordan.

As minority whip, Emmer will be responsible for rallying Republican votes, coordinating the party’s legislative strategy and helping maintain unity on key bills.

“Tom has been one of the strongest advocates for digital assets in Congress, and he has led the fight against a government-controlled CBDC and stood up for American innovators,” GOP Senator Cynthia Lummis said on X.

Hot US inflation raises odds of half-point Fed hike in December

Crypto industry experts warned on Tuesday that higher-than-expected US inflation could lead to a another Federal Reserve interest rate hike, making borrowing more expensive and potentially discouraging investment in cryptocurrencies.

The US Consumer Price Index (CPI) rose 0.4% month over month in October, above economists’ forecast of 0.3%, according to the Bureau of Labor Statistics - a slower increase than September’s 0.6% rise. Core inflation, which excludes food and energy prices, rose 0.3%, above the expected 0.2%.

Currently, the Federal Reserve holds its benchmark interest rate at 3.75% to 4.00%, after raising it by a quarter-point in September and leaving it unchanged in October.

The report came just a few hours after Federal Reserve Governor Christopher Waller said in London that another core inflation reading of 0.3% or higher could prompt the Fed to consider a larger interest rate hike in December.

“In that case, I believe a 50-basis-point hike in the policy rate should be considered at the December meeting,” Waller said. “Hiking only 25-basis-points would put our credibility at risk, a risk I am not eager to take.”