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US Spot Bitcoin ETFs Experience $287 Million in Net Outflows, Largest Since May
On Tuesday, U.S. spot Bitcoin ETFs saw net outflows of $287.78 million, the largest since May, amid a broader market selloff. BlackRock's IBIT ETF recorded no flows, while Fidelity’s FBTC led with $162.26 million in outflows. Other major funds, including Grayscale’s GBTC and Ark’s ARKB, also experienced notable withdrawals. Ether ETFs were similarly affected, with $47.4 million in outflows, the largest since early August. The selloff coincided with a dip in Bitcoin’s price, which dropped 3.93% to $56,680, and Ether, which fell 5.44% to $2,377.
Swiss Banking Giant ZKB Launches Bitcoin and Ether Trading
Zurich Cantonal Bank (ZKB), Switzerland's fourth-largest bank, has launched Bitcoin and Ether trading and custody services for its customers. The bank will securely store private keys on behalf of users, eliminating the need for personal wallets. Customers can trade cryptocurrencies directly through ZKB’s eBanking and Mobile Banking platforms, with holdings integrated into their existing portfolio views. ZKB’s crypto services are also available to third-party banks, with Thurgauer Kantonalbank as its first partner. This move follows ZKB’s prior involvement in digital assets, including the issuance of digital bonds.
CFTC Recovers $18 Million in Crypto from Alleged Commodity Pool Ponzi Scheme
The U.S. Commodity Futures Trading Commission (CFTC) recovered $18 million in digital assets from an alleged Ponzi scheme run by Oregon resident Sam Ikkurty. Ikkurty was accused of defrauding investors through a purported "crypto hedge fund," promising "net profits" but failing to return them. The CFTC revealed that the fund's performance plummeted 98.99% within months, and Ikkurty's crypto expertise was fabricated. A U.S. court ordered Ikkurty and associated entities to pay over $209 million, including restitution and penalties, for defrauding investors with false claims about crypto and carbon investments.
Trading Desk Insights
Technical Analysis:
Yesterday’s close seemingly confirmed our previous suspicions of the weakness in the $57,800 local support level. Around 5 PM EST, after Bitcoin briefly climbed to $58,200, it swiftly dropped to $55,500, stabilizing near $56,400 overnight. However, this morning saw a surge in buying volume, driving the price back up by over $1,000 in less than 30 minutes. This aligns with bullish reversal signals indicated by certain momentum oscillators on the 4-hour chart. Bullish divergence has been forming on the RSI since last week, suggesting a potential weakening of selling pressure. Despite these short-term signals, longer-term technical indicators remain unclear, with Bitcoin still trading in the middle of its long-term descending channel, offering no clear directional bias.
Crypto Developments:
On Tuesday evening, the X accounts of Donald Trump's daughter-in-law, Lara Trump, and daughter, Tiffany Trump, were reportedly hacked to promote a token linked to World Liberty Financial, a forthcoming crypto project that family members have recently endorsed. Both Lara and Tiffany Trump posted tweets claiming to share "the only official" blockchain addresses for World Liberty Financial. Shortly after Lara Trump’s account stated, "Our goal at World Liberty ... is to utilize our governance token on Solana, $WL, to support our DeFi lending protocol", Eric Trump announced on X that both profiles had been compromised and that the shared addresses were part of a "scam."
World Liberty Financial also released a warning, stating: "ALERT: Lara’s and Tiffany Trump’s X accounts have been hacked. Do NOT click on any links or purchase any tokens from their profiles. We are actively working to resolve this issue, but please remain cautious and avoid scams." This marks at least the third instance of a token falsely linked to the Trump family being launched. One example includes the DJT token, which convicted fraudster Martin Shkreli claimed was created in collaboration with Barron Trump and other developers—though no member of the Trump family confirmed any involvement.
Equity Markets:
According to Bloomberg, the U.S. Department of Justice has escalated its antitrust investigation into Nvidia and several other companies by issuing subpoenas. Previously, the Department had relied on non-binding questionnaires, but recent developments indicate a more aggressive approach to gathering information. Nvidia's stock reacted sharply to the news, plunging 9.5% by the close of trading on September 3 to $108, and continuing its decline by another 2% in after-hours trading, reaching $105.
Regulators are reportedly concerned that Nvidia may be engaging in practices that hinder customers from transitioning to alternative chip manufacturers and AI service providers, as well as penalizing those who do not solely rely on its AI services. As part of this probe, the Department of Justice has also reached out to other tech giants, including Microsoft, one of Nvidia’s largest shareholders, seeking additional insights.
Nvidia, however, has firmly denied the allegations. In a statement provided to Bloomberg, the company emphasized that it competes based on merit, with its superior test results and value proposition offering customers the freedom to select the best solutions for their needs.
Crypto Charts
Disclaimer
This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.
The information on which the analysis is based has been obtained from sources believed to be reliable such as, for example, the company’s financial statements filed with a regulator, company website, company white paper, pitchbook and any other sources. While Secure Digital Markets has obtained data, statistics, and information from sources it believes to be reliable, it does not perform an audit or seek independent verification of any of the data, statistics, and information it receives.
Unless otherwise provided in a separate agreement, Secure Digital Markets does not represent that the report contents meet all of the presentation and/or disclosure standards applicable in the jurisdiction the recipient is located. Secure Digital Markets and their officers, directors and employees shall not be responsible or liable for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses, or opinions within the report.
Crypto and/or digital currencies involve substantial risk, are speculative in nature and may not perform as expected. Many digital currency platforms are not subject to regulatory supervision, unlike regulated exchanges. Some platforms may commingle customer assets in shared accounts and provide inadequate custody, which may affect whether or how investors can withdraw their currency and/or subject them to money laundering. Digital currencies may be vulnerable to hacks and cyber fraud as well as significant volatility and price swings.
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