Crypto Records ‘Uptober’ Bump, Mt. Gox Delays Bitcoin Repayment, and Spot BTC ETF Inflows Rally

Takeaways

• Mt. Gox has delayed its bitcoin repayment deadline by a year: This delay is viewed as a greenshoot for bitcoin prices, with traders arguing it reduces selling pressure on the broader market. The price of bitcoin was just short of $67,000 by Thursday afternoon.
• US spot bitcoin ETFs saw notable net inflows of more than $555 million on Monday, the highest since June: Spot ether ETFs also saw $17 million in inflows, continuing positive momentum for both investment vehicles.
• Coinbase is pursuing partial summary judgment to obtain SEC documents about crypto regulation: The regulator has previously delayed in responding to a Freedom of Information request made by the exchange over the same issue.
• US spot bitcoin ETFs saw $18.66 million in net outflows on Tuesday, led by Fidelity’s FBTC, which recorded $48.82 million in withdrawals: BlackRock’s IBIT was the only ETF to see inflows, with $39.57 million entering the fund.
• Monochrome will introduce Australia's first spot ETH ETF on Tuesday, following on from the launch of its spot Bitcoin ETF in August: Notably, the Monochrome ether ETF will allow both cash and in-kind redemptions, which could garner interest from institutional investors.

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Mt. Gox Delays Repayment Deadline, Bitcoin Rallies

Mt. Gox has announced a one-year extension for the repayment of bitcoin owed to creditors, moving back the deadline to October 2025. This decision follows a notice shared by the rehabilitation team, stating that numerous creditors have yet to complete the necessary steps to receive their funds, resulting in delays.

The delay has sparked optimism among bitcoin traders, as the market now faces less immediate sell pressure from the anticipated liquidation of the repaid assets. With the release of the news Friday, bitcoin saw positive price action over the weekend and into this week, and is currently trading at around $67,000, marking a nearly 6% bump in October and a 10.6% increase over the past 30 days. Historically, crypto prices have recorded positive momentum in October, leading to the "Uptober" moniker.

Concerns about large-scale sales by Mt. Gox creditors had weighed on the market, but with the new repayment schedule, investors are likely interpreting this as an opportunity for further price appreciation before the potential sell-off.

US Spot Bitcoin ETFs Record Largest Inflows Since June

On Monday, spot bitcoin ETFs in the US had their largest net inflows since June 4, totaling $555.8 million. This surge in investment marks a key moment in the growth of these funds, with no net outflows reported across the board.

Fidelity’s FBTC saw the most significant inflows, just shy of $240 million, followed by Bitwise’s BITB, which attracted $100 million. BlackRock’s IBIT, the largest spot bitcoin ETF by net assets, logged $79.5 million in inflows. The total trading volume for US spot bitcoin ETFs amounted to over $2.61 billion on Monday, with BlackRock’s IBIT alone accounting for $1.67 billion.

Spot ether ETFs also showed positive movement, reporting net inflows of just over $17 million. For ether, BlackRock’s IBIT led the inflows with $14.31 million, followed by Fidelity’s FETH, which saw $1.31 million. The positive flows come as ether moves into the green this week, climbing more than 10% over the past week.

Coinbase Seeks Court Approval to Access SEC Documents

Coinbase is taking further legal action to compel the SEC to release documents detailing the application of securities laws for digital currencies. The exchange had initially filed a Freedom of Information Act (FOIA) request but received pushback from the SEC, which initially claimed exemption from FOIA rules.

The SEC responded by stating it would take three years to review the documents, which Coinbase claims is an excessive delay. The exchange hopes to gain clarity on the regulatory stance of the SEC, especially since the agency has brought numerous enforcement actions against crypto companies, who have claimed that the regulator does not provide clear rules with regards to digital assets.

Last month, SEC head Gary Gensler faced criticism from several US representatives during a congressional hearing. In particular, Tom Emmer said that he regarded the agency's approach to digital asset regulation as “lawless” because of the SEC’s refusal to provide clear guidance to companies in the space.

Australia’s Monochrome Launches Spot Ethereum ETF

Australia investment firm Monochrome launched its first spot ethereum ETF on Tuesday, the first spot ether ETF in the country. This development follows Monochrome's successful launch of a spot bitcoin ETF in August.

The new ETF (ticker IETH) allows investors to redeem funds either in cash or in-kind, which means that investors can opt to cash out in ether. This feature is similar to the mechanism used by spot crypto ETFs in Hong Kong. Globally, several countries have begun approving listings for spot crypto ETFs following the launch of US-based ETFs in January.

Some industry analysts have said that the ETF’s ‘dual-access’ model is what makes the launch significant. By allowing investors to withdraw in ether, the fund’s structure may prevent a capital gains tax event from being triggered, which could garner the interest of institutional investors.

*Disclaimer: Gemini provides custody for Monochrome's spot ether ETF and the firm's spot bitcoin ETF launched earlier this year.

-The Gemini Team