Bitcoin ETFs Hit Record Outflows

CRYPTO
Bitcoin ETFs Hit Record Outflows

Spot Bitcoin ETFs saw their worst day on record, with investors pulling over $1 billion in 24 hours. The 11 SEC-approved Bitcoin ETFs hit an all-time high in outflows, surpassing the previous $672 million record set in December, per CoinGlass. This follows a six-day downturn, wiping out more than $2 billion.

Bitcoin’s price has dropped from $100,000 to below $85,000 since February, pressured by Trump’s tariff policies, the ByBit hack, and memecoin scandals. Bloomberg’s James Seyffart noted retail investors are likely cashing out profits, while institutions engage in basis trading.

Despite the steep outflows, Seyffart emphasized that large swings are common in traditional finance. CoinShares’ James Butterfill pointed out that $1 billion is minor compared to the $100 billion invested in Bitcoin ETFs. “It’s actually quite small in the grand scheme of things,” he said, suggesting the selloff isn’t a major cause for concern.

ECONOMY
Gold Rush to New York

Over 600 tons of gold—nearly 20 million ounces—have been moved into New York City vaults since December, per the World Gold Council. This shift, driven by fears of U.S. tariffs, has disrupted supply chains as banks and traders relocate gold from London to the Commodities Exchange Centre.

John Reade of the World Gold Council notes the U.S. is “sucking” gold from global markets in anticipation of Trump’s tariffs on Canada and Mexico. Concerns linger that tariffs could expand to the U.K. and Switzerland, major gold hubs.

Gold futures in the U.S. now trade at a premium over London prices, fueling arbitrage opportunities. U.S. vaults hold enough gold to meet years of demand, raising speculation that tariffs won’t impact domestic gold prices.

Gold reserves in London have dropped for three months, and Switzerland’s gold exports to the U.S. hit a 13-year high, reflecting the market’s rapid adjustments.

TECH
Chip Smuggling Case Sparks Investigation

Singapore has charged three men with fraud in a case linked to potential chip smuggling into China. Authorities raided over 20 locations, arresting nine people, including two Singaporeans and a Chinese national. One suspect is accused of deceiving a server supplier, while the others face conspiracy charges.

Local media reports suggest the case is tied to whether Chinese AI firm DeepSeek obtained Nvidia chips despite U.S. export controls. Washington is closely examining Singapore’s role as a trans-shipment hub for advanced semiconductors.

DeepSeek allegedly acquired Nvidia’s A100 and H800 processors before restrictions tightened. U.S. officials are investigating whether it bypassed export rules by sourcing chips through Singapore.

Meanwhile, Nvidia’s Singapore revenue surged from $2.3 billion in 2023 to $23.7 billion in 2024, raising concerns over where the chips are actually shipped. Singapore insists it does not support businesses using its hub to evade foreign trade restrictions.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.