Welcome to This Week in Crypto! In this edition, we explore the groundbreaking milestones and inspiring initiatives shaping the cryptocurrency world. From the one-year anniversary of US spot Bitcoin ETFs surpassing $44 billion in inflows, to Oklahoma’s bold move with the proposed Bitcoin Freedom Act, the future of crypto continues to take center stage. We also spotlight The Giving Block’s impactful fundraiser for California wildfire victims, showcasing the power of crypto philanthropy in times of crisis. Let’s dive into the stories making waves across the blockchain and beyond!

Quick Look at This Week’s Stories

  • US Spot Bitcoin ETFs Break Records: Marking their first anniversary, US spot Bitcoin ETFs have exceeded expectations, driving $44.2 billion in inflows and reshaping both the crypto and traditional finance landscapes.
  • Oklahoma Introduces Bitcoin Freedom Act: A new bill proposes allowing Oklahoma residents and businesses to use Bitcoin for salaries, payments, and investments, aiming to position the state as a leader in financial innovation.
  • Crypto Donations Aid California Wildfire Relief: The Giving Block has launched a $2 million fundraiser to support wildfire victims in Los Angeles, highlighting the efficiency and impact of cryptocurrency in charitable giving.

Let’s dive deeper into this week’s stories!

US Spot Bitcoin ETFs Smash Expectations in First Year

The launch of US spot Bitcoin exchange-traded funds (ETFs) has been a massive success, far surpassing predictions. Approved by the US Securities and Exchange Commission in January 2024, these ETFs attracted $44.2 billion globally by the end of their first year. Industry leaders were shocked by the demand, with BlackRock’s Bitcoin ETF reaching $61 billion in assets under management – a milestone its gold ETF took 20 years to achieve. Experts attribute this success to long-standing Bitcoin demand from institutions and Bitcoin’s price growth. Events like Bitcoin’s fourth halving also played a role.

Despite their popularity, Bitcoin ETFs have limitations. While they offer investors exposure to Bitcoin without the challenges of managing private keys or wallets, they do not provide true custody of the cryptocurrency. Investors only hold shares representing Bitcoin’s price movements, not the actual asset itself. This distinction leaves out some of Bitcoin’s core principles, like self-sovereignty and full control over one’s assets. Still, analysts expect ETFs to grow in popularity through 2025 as more investors seek easier ways to engage with Bitcoin through traditional financial platforms.

Oklahoma Senator Introduces Bill Supporting Bitcoin Payments

Oklahoma State Senator Dusty Deevers has introduced the Bitcoin Freedom Act, a bill aimed at allowing residents and businesses in the state to use Bitcoin for salaries, payments, and investments. Filed on January 8, the legislation, known as SB325, seeks to provide Oklahomans with more financial options and protect earnings in an era of rising inflation. Deevers emphasized that the bill supports free-market principles by ensuring participation is voluntary for employers, employees, and vendors.

The act establishes a framework for securely using Bitcoin within the state, including its acceptance as a medium for transactions and investments. Deevers described the legislation as a step toward embracing financial innovation while expanding financial choices for citizens. By proposing this bill, Oklahoma positions itself as a potential leader in the adoption of financial technology. The Bitcoin Freedom Act will be reviewed during the 60th legislative session, beginning on February 3rd.

The Giving Block Launches Fundraiser for California Wildfire Victims

The Giving Block, a platform that supports cryptocurrency donations for nonprofits, has launched a fundraiser to help victims of the wildfires in Los Angeles, California. The campaign aims to raise $2 million, with Jared Isaacman, CEO of The Giving Block’s parent company Shift4, pledging to match $1 million in donations. According to Ben Pousty, the company’s COO, donating cryptocurrency offers unique advantages, such as avoiding capital gains taxes and allowing donors to deduct the full market value of their donation on their taxes. Pousty highlighted that crypto donations are also faster, more transparent, and more cost-effective than traditional donation methods. Since its creation, The Giving Block has raised around $200 million in crypto donations for various causes.

The Giving Block has a history of stepping in during times of crisis. In 2023, the platform launched a disaster fund for the Maui wildfires, matching $500,000 in donations to help with recovery efforts. They also raised $1 million in 2024 for hurricane relief on the U.S. East Coast. The company works with thousands of nonprofits to channel crypto donations to meaningful causes. A report by The Giving Block predicted that crypto donations could surpass $10 billion within the next decade, showing the growing role of cryptocurrency in global philanthropy.

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