Bitcoin ETFs have picked up billions since their launch last week, Crystal writes.

State of play: Nine spot bitcoin ETFs, plus Grayscale's converted GBTC, listed on exchanges after receiving a milestone nod from the SEC, and in just four trading days are stacking up to broad-market funds, according to Bloomberg Intelligence data.

The big picture: It's too early to crown any one of them bitcoin ETF supreme. Many of the traditional finance venues — where these products would be bought and sold — tend to go slow in determining which, if any, they should offer. (Blame it on compliance.)

• At the same time, the leaders are emerging.

Case in point: Three of the 10 bitcoin ETFs — BlackRock's IBIT, Fidelity's FBTC and Bitwise's BITB — land in the top 10 in year-to-date flows, in the ranks with the $400 billion-plus asset iShares Core S&P 500 ETF and $980 billion Vanguard S&P ETF.

• Sure, starting from zero is an advantage. But there's been plenty of investor cash on the sidelines, waiting for a place to work.

But GBTC's outflows?: There's probably more going on there than what seems obvious.

• Folks who bought GBTC at a discount (when shares were trading below the underlying bitcoin) might be eager to take money off the table now that the ETF version has closed that gap.
• Meanwhile, GBTC is a substantial asset for more than one firm in bankruptcy, and at least one could be selling it now for creditors. (More on that below.)
• Disclaimer: We can't know for certain what's happening without talking to sellers directly, but we can guesstimate.

What does seem obvious: GBTC's 1.5% annual fee is the priciest of the bunch.

• Investing $10,000 in an ETF charging 1.5% for 20 years, means paying $2,609, compared to $240 for an ETF charging 0.12% over the same time.

🤷 Crystal's thought bubble: But what do I know? Maybe bro-math (scroll to the bottom) and loyalty favors Grayscale anyway.

What we're watching: There could be more launches on the way.

• Exchanges have filed to list options on those new bitcoin ETFs (we told you this would happen).
• Other ETF shops have filed to launch new types of bitcoin ETFs: Inverse, leveraged, covered calls.

The bottom line: If there was any question about whether the traditional asset managers' bitcoin gambit was for naught, check out the numbers — they don't lie. (NVM that BTC itself seems largely unmoved by Wall Street's early triumph.)

There is a large chunk of GBTC units that will be forcibly sold, if it hasn't been already, Crystal writes.

Zoom in: The FTX bankruptcy estate held more than 22 million GBTC units in late October and was approved by the court in late November to sell those assets.

• The estate also held nearly 3 million shares of Bitwise 10 Crypto Index Fund (BITW).

By the numbers: Assuming the estate sold all of the GBTC post-conversion, say at $40.69 per share, it would've gotten back roughly $907 million (it was valued at $597 million in October).

Between the lines: Even if only some of it was sold, it would account for a lot of the GBTC selling activity seen lately.

💭 Crystal's thought bubble: FWIW, we called the FTX lawyers, the brokerage account that holds them, and the folks tapped to handle the sale to check if that was happening — so far, 🦗🦗🦗

The European Union is tightening rules around anti-money laundering and terrorist financing to gird their citizens and its financial system against bad actors, Crystal writes.

Why it matters: The loopholes are closing around crypto in places where regulating the industry has become a priority.

Driving the news: The Council of the EU, which represents government ministers from each member country and Parliament, the elected legislative body, struck a provisional agreement on parts of a broader AML package yesterday.

Between the lines: Creating a harmonized rulebook and an authority to keep crypto in check would squash the regulatory arbitrage game.

Details: The agreement covers most of the crypto sector.

• Crypto-asset service providers (CASPs), like exchanges, are required to verify information about their customers and report suspicious activity.
• Due diligence measures apply to transactions of €1,000 or more, an added measure in a nod to self-hosted wallets.

Of note: Traders of luxury goods, precious metals, expensive cars, yachts or artwork are covered, as are professional football (soccer) and agents.

Flashback: The European Commission first proposed such rules in July 2021, including legislation making crypto transactions "fully traceable."

What's next: The commission is expected to draw up recommendations to member states on new measures to follow. Member states are also charged with assessing national-level risk.

• The legislative text will be finalized and if approved, will be published in the EU's Official Journal for formal adoption.

🥈 Bitcoin takes the silver, surpassing the precious metal as the second-largest commodities ETF in the U.S. (Unchained)

📸 Gary Gensler is profiled as an ambitious bureaucrat who overreached. (Bloomberg)

👯 Bitcoin's correlation with ether drops after the listing of ETFs. (Decrypt)

Benjamin Franklin has laser eyes now, Crystal writes.

• Franklin Templeton's social media account shows it with its profile pic — the founding father degen-ified.

State of play: TradFi is memeing... though it's more dad joke than degen joke.

Zoom in: 👆 Here's the ever-popular car drifting one, making a last-minute turn into "60/40 + BTC."

Be smart: 60/40 references the makeup of an investor portfolio that is 60% stocks and 40% bonds.

Between the lines: POUR SOME BITCOIN ON THERE.

Yes, but: There's technically no room for BTC in a 60/40... because 60+40= 100.

• But magic space money won't be held back by mere arithmetic.