The Daily: Mini BTC ETF begins trading, Mt. Gox moves another $2 billion, Trump's Bitcoin sneakers and more

• The trust trades under the ticker "BTC" as a spin-off from Grayscale's original converted spot Bitcoin ETF, GBTC. It has the lowest fee of all such products, at 0.15%.
• The ETF went live shortly after its S-1 registration became effective, following the Securities and Exchange Commission's approval of the fund's 19b-4 form last week.
• "I think demand for very low-cost bitcoin exposure will find a lot of investor interest," Grayscale Head of Research Zach Pandl told The Block. "So we will see how the first few trading days go."
• The mini trust shares will be distributed to existing GBTC shareholders as that fund contributed 10% of its bitcoin under management to BTC.
• A similar mini spin-off was previously approved for Grayscale's spot Ethereum ETF, ETHE. Both mini versions of its spot ETF products trade on NYSE Arca.
• Pandl added that macroeconomic trends, Donald Trump's policy platform and potential dollar weakness meant "the timing of this product launch is excellent."

Mt. Gox moves over $2 billion worth of bitcoin to fresh address

• At 7:28 p.m. ET, Mt. Gox transferred over 33,105 BTC to an address starting "bc1q2,” according to data from blockchain analytics platform Arkham.
• It is not immediately clear who owns the address, though some creditors speculated it may belong to BitGo, one of the five firms selected by the Mt. Gox Trustee to manage the repayments.
• The latest transaction comes after Mt. Gox transferred billions of dollars worth of bitcoin to the four other designated firms, Bitbank, Kraken, Bitstamp and SBI VC Trade, over the past few weeks.

US spot Ethereum ETFs saw $33.7 million in net inflows, ending negative streak

• BlackRock's ETHA led inflows among the nine funds with $118 million, followed by Fidelity's FETH and Grayscale's mini spot Ethereum ETF, ETH, with $16.4 million and $12.4 million, respectively.
• However, Grayscale's higher-fee converted ETHE product continued to record net outflows, with $120.3 million exiting the fund on Tuesday. The ETF has experienced outflows every day since its debut on July 23.
• The spot Ethereum ETFs generated a total trading volume of $563.2 million for the day, the lowest level of activity so far.
• Meanwhile, the 11 U.S. spot Bitcoin ETFs experienced net outflows of $18.3 million on Tuesday after four straight days of positive flows.

Attacker exploits IBC hooks vulnerability to steal tokens on Terra blockchain

• An unknown attacker exploited a known vulnerability associated with a third-party module called IBC hooks, which facilitates cross-chain contract calls and token movement. 
• The exploit impacted an estimated $4 million worth of bridged assets, including USDC stablecoin and Astroport Finance tokens, causing ASTRO's price to drop by 60% following the incident.
• Terra implemented an emergency measure to prevent further theft and coordinated with validators to address the exploit, which occurred due to a missed patch during its June upgrade.
• Terra was hard forked from the Terra Classic network following a major financial collapse in 2022, triggered by its algorithmic stablecoin, UST, losing its supposed peg to the U.S. dollar.

Donald Trump selling Bitcoin sneakers after keynote speech

• "Just spoke at the Bitcoin Conference in Nashville, Tennessee on Saturday," Trump said in a Truth Social post. "Get your Bitcoin Sneakers now. These are Limited Edition, they are each numbered, and you can now pay with Bitcoin or your favorite crypto."
• During his keynote speech at Bitcoin 2024, Trump promised to fire SEC Chair Gary Gensler, stop the U.S. from selling its bitcoin holdings and create a "strategic bitcoin reserve" if elected.
• Trump has previously been associated with the sale of NFT collections celebrating his likeness.

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