In a recent development, another proposed Spot Bitcoin ETF has been listed on the Depository Trust and Clearing Corporation’s (DTCC) website, becoming the second proposed Spot Bitcoin ETF to appear on the corporation’s website.
BTCO Joins IBTC On DTCC Website
The Invesco Galaxy Bitcoin ETF under the ticker ‘BTCO’ recently appeared on the DTCC website, joining BlackRock’s spot Bitcoin ETF, which goes under the ticker ‘IBTC’ as uncertainty around a possible approval of these funds continues to heighten.
Source: DTCC website
Many had speculated an approval was imminent when BlackRock’s IBTC was earlier listed. However, the optimism has sort of cooled off following a recent revelation by a spokesperson for the financial services company. The representative clarified that the listing of these ETFs was simply “Standard Practice” and that it doesn’t indicate any potential approval by the SEC.
An ETF expert had also weighed in and stated that DTCC’s listing didn’t mean anything in the grand scheme of things regarding a possible approval of Bitcoin ETFs by the United States Securities and Exchange Commission (SEC). Going by this, the DTCC listing only suggests that these asset managers are preparing just in case they get approved by the SEC.
Such preparations also include asset managers BlackRock and VanEck recently revealing their plans to begin seeding for their respective funds. While such a move doesn’t guarantee that the SEC is likely to approve these funds anytime soon, it, however, shows the optimism of these firms that their Spot Bitcoin ETF will launch sooner or later.
Valkyrie Joins The Spot Bitcoin ETF Amendment Train
In a post shared on his X (formerly Twitter) platform, Bloomberg analyst James Seyffart noted that the asset management firm Valkyrie had joined the “prospectus amendment train” with the latest filing of their revised Spot Bitcoin ETF prospectus. Valkyrie joins the likes of ARK Invest, BlackRock, Fidelity, and Bitwise, who have also filed amendments to their prospectus.
Seyffart happens to be one of those who believe that these amendments could mean something. ARK Invest was the first asset manager to amend its prospectus, which led Seyffart and fellow Bloomberg analyst Eric Balchunas to predict that the US Securities and Exchange Commission (SEC) could approve a fund as early as next year.
Meanwhile, it is worth mentioning that the SEC has so far not said anything regarding Grayscale’s application despite the Commission opting not to file an appeal. But that could change soon as ETF enthusiast and prominent financial lawyer Scott Johnsson said that the Commission is set to have a closed meeting on November 2; its first since the Grayscale deadline expired, and one of the agenda for the meeting includes resolving litigation claims.
ARK Invest, investor Cathie Wood’s firm, sold 66,342 units of Grayscale Bitcoin Trust (GBTC) for $1.66 million, at a closing price of $25.07 on Oct. 28, 2023.
The price of Bitcoin (BTC) currently sits at $34,434.
ARK Invest capitalizes on market recovery
Recent reports indicate that Wood, who founded ARK Invest in 2014, has been reshaping her portfolio. Wood divested Grayscale Bitcoin Trust (GBTC) shares while acquiring shares in a cryptocurrency-related stock.
On Oct. 28, the fund sold 66,342 units of GBTC, amounting to $1.66 million based on the closing price of $25.07.
This sale aligns with the broader pattern of ARK Invest divesting GBTC shares, involving the sale of approximately $2.5 million in GBTC shares on Oct. 24.
Ark Invest also sold GBTC shares in three sessions that week. On Oct. 24, around $2.5 million worth of GBTC shares were sold, equivalent to approximately 2% of ARK’s holdings in the trust. The following day, Oct. 25, ARK Invest sold about $1.8 million of GBTC shares for the second consecutive day. These GBTC sales might be connected to the firm’s filing for a Bitcoin-based ETF.
Additionally, on Oct. 28, ARK Invest invested $12.4 million in a crypto-linked stock, the specific name of which was not disclosed. Besides this, ARK Invest has been actively purchasing shares in other companies. On Oct. 24, the fund acquired $2.4 million worth of shares in the popular trading platform Robinhood (HOOD).
Crypto ETF’s breaking barriers
ARK Invest’s recent actions could be influenced by Bitcoin’s latest rally. The cryptocurrency’s value recently soared, reaching over $35,000 on Oct. 28.
The spike in Bitcoin’s price is also linked to a recent court ruling in the Grayscale and SEC legal battle and the approval of a spot Bitcoin ETF, which appears imminent, according to experts.
The U.S. Court of Appeals for the DC Circuit ruling stated that the Securities and Exchange Commission (SEC) was mistaken in denying Grayscale, a major crypto investment firm, the opportunity to launch the first Bitcoin exchange-traded fund (ETF). This decision has broader implications, potentially affecting other companies like BlackRock and Fidelity, who are also interested in creating Bitcoin ETFs.
The ruling, which faced multiple delays, stemmed from the SEC’s rejection of Grayscale’s application last summer. However, the denial was based on Grayscale’s inability to address concerns related to potential market manipulation and investor protections. Importantly, the SEC does not intend to challenge the recent court ruling, acknowledging its error in rejecting Grayscale Investments’ application for a spot Bitcoin ETF.
This legal outcome has narrowed the discount on Grayscale Bitcoin Trust shares, underscoring the increased importance of the underlying asset’s price. Additionally, the ruling has opened the door for Bitcoin exchange-traded funds, indicating a positive shift in the regulatory landscape.
ARK Invest, in addition to divesting shares in Grayscale Bitcoin Trust, has been acquiring shares in Robinhood. Notably, Wood has previously expressed confidence in Grayscale Investments, recognizing its significance within Barry Silbert’s Digital Currency Group.
Galaxy Digital, the crypto venture led by U.S. billionaire Mike Novogratz, has projected a substantial capital influx into spot Bitcoin exchange-traded funds (ETFs). According to the estimations, these ETFs could witness an impressive $14.4 billion in inflows during their inaugural year, potentially reshaping the investment landscape.
The venture contends that the allure of spot Bitcoin ETFs surpasses existing investment avenues, such as trusts and futures, which currently hold assets valued at over $21 billion. It noted that ETF inflows could ramp up by $27 billion by the second year and $39 billion by the third year.
Bitcoin ETFs Could Reshape Wealth Management
The potential ramifications of this projection are profound. Not only does this forecast hint at a surge in investor interest, but it also signals a paradigm shift in the approach towards cryptocurrency investment.
As of October 2023, Galaxy Digital posits that the wealth management sector in the United States could witness a monumental transformation, with assets managed by broker-dealers, banks, and Registered Investment Advisers (RIAs) collectively amounting to a staggering $48.3 trillion.
Galaxy says that spot Bitcoin ETFs stand as a pivotal development, promising a secure and regulated means for investors to gain exposure to the cryptocurrency. These products would be facilitated through established partners, primarily traditional funds and banks with a demonstrated track record in customer protection and sound investment offerings.
Meanwhile, recent market dynamics have demonstrated the demand for Bitcoin-based financial products. A mere rumor in the previous week led to an unprecedented 10% surge in Bitcoin prices within hours. Furthermore, the mere mention of BlackRock’s proposed Bitcoin ETF catalyzed a 12% upswing on Monday, compellingly showing the market’s responsiveness to ETF developments.
Is Bitcoin Poised for a 74% Surge?
Galaxy Digital’s projection of a $14.4 billion influx in the first year could contribute significantly to a remarkable 74% surge in Bitcoin prices. This anticipated increase is predicated on the assumption that the liquidity and price impact of billions of dollars in investments will transform the cryptocurrency’s value.
The perceived limitations of existing investment products further underscore the urgency for these spot Bitcoin ETFs. High fees, low liquidity, and tracking errors are endemic issues that have hindered accessibility for a broad spectrum of investors.
In addition to mitigating these existing challenges, spot ETFs promise greater operational efficiency, according to Galaxy. That includes advantages in fee structures, liquidity, and price tracking. While specific fee details have yet to be disclosed by Bitcoin ETF applicants, historical data indicates that such products generally offer lower fees than hedge or closed-end funds.
The U.S. Securities and Exchange Commission (SEC) is evaluating applications from various industry players. Grayscale, BlackRock, Bitwise, VanEck, and several other prominent firms have submitted proposals for spot Bitcoin ETFs, totaling twelve. This dynamic signals the growing consensus on the potential of Bitcoin ETFs and the competitiveness amongst industry leaders seeking to pioneer this transformative financial instrument.
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Sam Bankman-Fried takes the stand on FTX’s collapse
Sam “SBF” Bankman-Fried testified this week in his ongoing criminal trial in the Southern District of New York, denying any wrongdoing between FTX and Alameda Research while acknowledging making “big mistakes” during the companies’ explosive growth. Highlights of his testimony include denying directing his inner circle to make significant political donations in 2021, as well as claims that FTX’s terms of use covered transactions between Alameda and the crypto exchange. Additionally, Bankman-Fried testified that he requested additional hedging strategies for Alameda in 2021 and 2022, but they were never implemented. The trial is expected to conclude within the next few days.
‘Buy Bitcoin’ search queries on Google surge 826% in the UK
Google searches for “buy Bitcoin” have surged worldwide amid a major crypto rally, with searches in the United Kingdom growing by more than 800% in the last week. According to research from Cryptogambling.tv, the search term “buy Bitcoin” spiked a staggering 826% in the U.K. over the course of seven days. In the United States, data from Google Trends shows that searches for “should I buy Bitcoin now?” increased by more than 250%, while more niche searches, including “can I buy Bitcoin on Fidelity?” increased by over 3,100% in the last week. Zooming out further, the search term “is it a good time to buy Bitcoin?” saw a 110% gain worldwide over the last week.
US court issues mandate for Grayscale ruling, paving way for SEC to review spot Bitcoin ETF
The United States Court of Appeals has issued a mandate following a decision requiring Grayscale Investments’ application for a spot Bitcoin exchange-traded fund (ETF) to be reviewed by the Securities and Exchange Commission (SEC). In an Oct. 23 filing, the “formal mandate” of the court took effect, paving the way for the SEC to review its decision on Grayscale’s spot Bitcoin ETF. The mandate followed the court’s initial ruling on Aug. 29 and the SEC’s failure to present an appeal by Oct. 13. To date, the SEC has yet to approve a single spot crypto ETF for listing on U.S. exchanges but has given the green light to investment vehicles linked to Bitcoin and Ether futures.
Coinbase disputes SEC’s crypto authority in final bid to toss regulator’s suit
The U.S. Securities and Exchange Commission overstepped its authority when it classified Coinbase-listed cryptocurrencies as securities, the exchange has argued in its final bid to dismiss a lawsuit by the securities regulator. In an Oct. 24 filing in a New York District Court, Coinbase chastised the SEC, claiming its definition for what qualifies as a security was too wide, and contested that the cryptocurrencies the exchange lists are not under the regulator’s purview. The SEC sued Coinbase on June 6, claiming the exchange violated U.S. securities laws by listing several tokens it considers securities and not registering with the regulator.
Gemini sues Genesis over GBTC shares used as Earn collateral, now worth $1.6B
Cryptocurrency exchange Gemini filed a lawsuit against bankrupt crypto lender Genesis on Oct. 27. At issue is the fate of 62,086,586 shares of Grayscale Bitcoin Trust. They were used as collateral to secure loans made by 232,000 Gemini users to Genesis through the Gemini Earn Program. That collateral is currently worth close to $1.6 billion. According to the suit, Gemini has received $284.3 million from foreclosing on the collateral for the benefit of Earn users, but Genesis has disputed the action, preventing Gemini from distributing the proceeds. Genesis filed for bankruptcy in January. It had suspended withdrawals in November 2022, which impacted the Gemini Earn program.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $34,143, Ether (ETH) at $1,789 and XRP at $0.54. The total market cap is at $1.26 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Pepe (PEPE) at 72.08%, Mina (MINA) at 55.47% and FLOKI (FLOKI) at 53.33%.
The top three altcoin losers of the week are Bitcoin SV (BSV) at -10.27%, Toncoin (TON) -3.14% and Trust Wallet Token (TWT) at -0.82%.
“I should say, I am not a lawyer, I am just trying to answer based on my recollection. […] At the time [at] FTX, certain customers thought accounts would be sent to Alameda.”
“Without prejudging any one asset, the vast majority of crypto assets likely meet the investment contract test, making them subject to the securities laws.”
Gary Gensler, chair of U.S. Securities and Exchange Commission
“I do not believe there has been a single serious conversation regarding a settlement between Ripple […] and the SEC. The SEC is pissed and embarrassed and wants $770M worth of flesh.”
“He [Sam Bankman-Fried] thought he was going to take that money, and […] he would out-trade the market and put the money back and end up as a half-a-trillionaire, but it never works like that.”
Bitcoin beats S&P 500 in October as $40K BTC price predictions flow in
Bitcoin surfed $34,000 at the end of the week as attention turned to BTC price performance against macro assets. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD holding steady, preserving its early-week gains.
The largest cryptocurrency avoided significant volatility as the weekly and monthly closes — a key moment for the October uptrend — drew ever nearer.
“I think Bitcoin will hang around this range for some time,” popular pseudonymous trader Daan Crypto Trades told X subscribers in one of several posts on Oct. 27. “Roughly $33-35K is what I’m looking at as a range. Eyes on potential sweeps of any of these levels for a quick trade,” he wrote.
FUD of the Week
UK passes bill to enable authorities to seize Bitcoin used for crime
Lawmakers in the United Kingdom have passed legislation allowing authorities to seize and freeze cryptocurrencies like Bitcoin if used for illicit purposes. Introduced in September 2022, the passed legislation aims to expand authorities’ ability to crack down on the use of cryptocurrency in crimes like cybercrime, scams and drug trafficking. One of the provisions of the bill permits the recovery of crypto assets used in crimes without conviction, as some individuals may avoid conviction by remaining remote.
Scammers create Blockworks clone site to drain crypto wallets
Phishing scammers have cloned the websites of crypto media outlet Blockworks and Ethereum blockchain scanner Etherscan to trick unsuspecting readers into connecting their wallets to a crypto drainer. A fake Blockworks site displayed a fake “BREAKING” news report of a supposed multimillion-dollar “approvals exploit” on the decentralized exchange Uniswap and encouraged users to visit a fake Etherscan website to rescind approvals. The fake Uniswap news article was posted on Reddit across several popular subreddits.
Kraken to suspend trading for USDT, DAI, WBTC, WETH and WAXL in Canada
Kraken will suspend all transactions related to Tether, Dai, Wrapped Bitcoin, Wrapped Ether and Wrapped Axelar in Canada in November and December. The suspensions may not surprise many Canadian cryptocurrency users, as they come on the heels of several other notable exchanges taking similar actions throughout 2023. OKX ceased operations in Canada in June after Binance announced its intention to do so in May.
5,050 Bitcoin for $5 in 2009: Helsinki’s claim to crypto fame
The current stability of Bitcoin price around the pivotal $34,000 mark suggests the potential for a continued bullish trend, but analysts remain uncertain whether indicators strongly support an upward trajectory or if a regression to $27,000 is imminent.
Presently valued at $34,150, Bitcoin has shown lateral movement in the past day. With a notable 15% gain in the prior week, Bitcoin retains its position as a leading cryptocurrency based on market capitalization, showcasing its resilience amidst market fluctuations.
The current climb of Bitcoin, which has reached the significant milestone of $35,000, has elicited a positive and surprising reaction among the market as a whole. Despite its initial surge, the cryptocurrency underwent a modest correction and subsequently retreated to a value of $34,000.
Bitcoin Price: No Way But Up
The latest report from finder.com illuminates the insights and predictions provided by industry experts regarding the future trajectory of Bitcoin’s price. This comprehensive forecast delves into the potential developments and shifts anticipated in the value of this cryptocurrency, offering a detailed analysis based on expert opinions and market trends.
The report serves as a valuable resource, providing a glimpse into the prospective pathways and factors that might influence Bitcoin’s value in the coming period, offering a nuanced understanding of the digital currency’s potential directions.
According to the consensus of 31 experts in cryptocurrency and fintech assembled by Finder, the average prediction anticipates Bitcoin (BTC) to conclude this year at approximately $30,000 and then surge to $87,000 by the culmination of 2025.
BTCUSD trading at $34,097 on the weekend chart: TradingView.com
Futurist Joseph Raczynski presents a slightly lower estimate, suggesting Bitcoin price will finish 2023 at a value of $29,000 but forecasts an increase to $80,000 by the conclusion of 2025. Raczynski emphasizes the pivotal role of the US Securities and Exchange Commission Bitcoin ETF approval, indicating that the potential approval of a spot ETF could potentially lead to a doubling of Bitcoin’s value.
Mitesh Shah, the CEO of Omnia Markets, said that it is anticipated Bitcoin will reach a closing value of $35,000 before the end of the current year. Furthermore, Shah projects that the value of the top cryptocurrency will experience a significant increase, reaching $105,000 by the year 2025.
“The approval of any BTC ETF would open the floodgates for institutional investment, and the announcement of such approval would likely result in an immediate spike in Bitcoin price,” he said.
On Halvings, ETFs And Investor Confidence
Shah is representative of the subset comprising 20% of the questioned population who have the expectation that approval for ETFs will be granted within the present calendar year. He made an observation regarding the increasing agreement among experts that the SEC will ultimately grant approval for a Bitcoin ETF, with Blackrock’s proposal being considered the most probable contender.
According to Manraj Chandok, a trader at Wirex, it is his belief that there will be limited fluctuations in the price of Bitcoin until the occurrence of the halving event. The halving event refers to the reduction of the block subsidy reward, which denotes the quantity of Bitcoin granted to miners, by fifty percent. The anticipated timeframe for this event is April 2024.
Image: Shutterstock
For his part, Damian Chmiel, a senior analyst and editor at Finance Magnates, said it is anticipated that Bitcoin will experience a stabilization phase at a value of $30,000 within the current year. Furthermore, Chmiel predicts that the value of BTC can potentially reach $50,000 by the year 2025.
“Next year’s halving could be a game-changing event for Bitcoin. I still believe that the crypto will eventually reach new all-time highs and achieve a six-figure valuation,” he said.
The recent surge of Bitcoin’s value to $35,000 has engendered a sense of assurance among investors, leading them to exhibit a greater inclination towards venturing into more speculative prospects within the cryptocurrency market.
Meanwhile, Santiment has reported a notable rise in forthcoming and active positions for Bitcoin, accompanied by a significant gain of $922 million in open interest over the course of the previous week. This development signifies an increasing level of trust in the potential of Bitcoin.
Roundhill Financial has submitted a proposal to create a Bitcoin Covered Call ETF in the wake of the anticipated approval of Bitcoin spot ETFs by the SEC.
New York-based investment advisor Roundhill Financial has reportedly moved in anticipation of the Securities and Exchange Commission (SEC) approving spot Bitcoin exchange-traded funds (ETFs). It forwarded a proposal to create a Bitcoin Covered Call ETF.
According to Eric Balchunas, a senior ETF analyst with Bloomberg, Roundhill’s ETF proposal will be a fusion of a Bitcoin (BTC) futures ETF with additional call and put options to generate income.
Roundhill just filed for a Bitcoin Covered Call ETF, which will hold a bitcoin futures ETF and then write call and put options for income pic.twitter.com/0yqsAOXqX5
The move marks Roundhill’s continued interest in crypto-related offerings, evident from their previous filings for an Ethereum (ETH) futures ETF alongside VanEck and Volatility Shares.
It also comes amid increased buzz in the crypto space as players wait for the SEC’s Bitcoin spot ETF approval, with many jumping the gun on its announcement several times.
SEC Chair Gary Gensler recently confirmed that the agency examines between eight to ten applications for a spot Bitcoin ETF, emphasizing the rigorous review process each application undergoes.
His words have sparked heightened expectations among stakeholders, causing Bitcoin prices to rise to $35,000 in the last few days.
BlackRock files for Russell 2000 small cap buy-write ETF
Elsewhere, BlackRock has reportedly filed for a Russell 2000 small capitalization buy-write ETF.
This ETF aims to replicate the Russell 2000 Index’s performance, offering investors a diversified exposure to stocks with smaller market capitalizations, starkly contrasting to the large-cap-focused S&P 500 index.
The investment management firm, with over $9 trillion in assets, has also proposed an iShares spot Bitcoin ETF, which has already been listed on the Depository Trust & Clearing Corporation (DTCC). Analysts suggest the listing is a sign of potential approval of the product by the SEC.
BlackRock was also recently on the wrong end of a $2.5 million fine imposed by the SEC following allegations of publishing misleading investment information.
The charge was related to BlackRock’s investment in Aviron Group, a film distribution company, which the investment firm allegedly inaccurately described as a “diversified financial services” company.
If Google Trends data is anything to go by, it could mean that Americans don’t care about Bitcoin (BTC) or the interest is ultra-low and falling despite the series of bullish events in the last few days.
Americans Are Not Interested In Bitcoin?
A spot check of Google Trends over the past years shows that not only are searches related to “buy Bitcoin” discouragingly falling but are at 2023 lows, with related average daily searches scoring less than 20. The only time “buy Bitcoin” searches spiked was in early September when it rose to a score of 70, an indicator that more people were curious, willing to explore, and even buy the world’s most valuable coin.
Sentiment is a crucial factor in crypto because it can influence prices. To illustrate, when sentiment improves, crypto investors are more likely to buy and hold on to their treasured coins in hopes of riding the emerging trend and raking in profits.
Conversely, when crypto assets begin falling, as in 2022 and the second half of 2023, holders will often flee to safety, selling their coins for stablecoins like USDT or cash. In some instances, however, without an option, investors will look to exit for an established coin like Bitcoin or Ethereum (ETH), pumping those respective assets.
As the market evolves, sentiment can be influenced by news events, regulatory developments, or influencer comments. Elon Musk, the owner of X, the social media platform, has been sued on allegations that the billionaire deliberately conducted a pump-and-dump scheme, manipulating Dogecoin (DOGE) prices and profiting at the expense of others.
SEC Likely To Approve The First Spot Bitcoin ETF In The US
Google Trends is one of the tools users can use to gauge crypto sentiment. However, looking at events in the United States, interest in BTC is yearly low. This is despite the community expecting the Securities and Exchange Commission (SEC) to approve the first spot Bitcoin Exchange-Traded Fund (ETF).
After several attempts in the past, analysts have been gradually increasing the odds of the strict regulator green-lighting the first Bitcoin ETF in Q4 2023 or early 2023. Still, it needs to be clarified whether the agency will authorize one or multiple products simultaneously. If the SEC disapproves a Bitcoin ETF, JPMorgan analysts led by Nikolaos Panigirtzoglou said the agency could face “legal troubles.”
In anticipation of the product and ahead of Bitcoin halving in 2024, the coin recently broke above July 2023 highs, registering a new 2023 high above $35,000. Though prices have been steadying, the uptrend remains, and traders expect more gains.
The market is seemingly starting to wake up, and enthusiasm is as high as it’s ever been this year. The industry added another $140 billion to its capitalization throughout the last seven days on the back of considerable gains across the board.
Starting off with Bitcoin’s price, it’s up a whopping 14.3% in the past week, currently trading at around $34,000 at the time of this writing. Last weekend was relatively slow, but it all changed on Tuesday when the price exploded above $34K, reaching close to $35K on some exchanges.
Of course, there was a good reason for it – ETF hype. On Tuesday, the website of the Depository Trust and Clearing Corporation suddenly showed the listing of a spot Bitcoin ETF under the ticker iBTC – BlackRock’s BTC ETF. The market obviously took that as a sure sign that the chances of approval by the United States Securities and Exchange Commission are high. The next day, the ticker was removed and, shortly after – added once again.
Industry participants are baffled by the fiasco, and it’s not really clear what it means. The SEC hasn’t approved a spot Bitcoin ETF as of yet, and there’s been no indication that it would, but the tension is building as the price is clearly factoring it in.
That’s all the rest of the market needed to soar as well. Major altcoins are up considerably. Ethereum (ETH) is up 11%, BNB and Ripple’s XRP chart 6% gains, DOGE is up 17.6%, Cardano – 116%, SOL – 20%, and so forth.
The market is booming. The spirits are also high. Many are taking this as the end to the prolonged crypto winter that saw capitalizations depressing across the board.
But is that really the case? The developments of this week make it particularly interesting to see how the market will shape up in the coming days.
You know what they say – there’s never a boring day in crypto.
Bitcoin’s Wild Ride: BlackRock’s ETF Delisting and Relisting on DTCC Stirs Hysteria. The Bitcoin price went on a rollercoaster this week, and not without a good reason. an iBTC spot Bitcoin ETF ticker suddenly appeared on the website of the DTCC. But there’s way more to that story.
Bitcoin Fear and Greed Index Soars to 2-Year High: What Does This Mean? The Bitcoin fear and greed index – a tool used to gauge general crypto market sentiment – is currently sitting at a 2-year high. This means that the spirits are high and participants are positive.
The Reason Bitcoin (BTC) Price Exploded to $35K. The reason for this week’s massive surge in Bitcoin’s price is the listing of an iBTC (BlackRock) spot Bitcoin ticker on the website of the Depository Trust and Clearing Corporation.
Tether Sets the Record Straight: No Violations of Sanctions Laws, No Terrorist Ties. Tether has refuted claims that USDT has been used to fund terrorists, following the request of US lawmakers for an investigation. The company has revealed that it’s been working with 31 law enforcement agencies across 19 jurisdictions.
Bitcoin Hit ATH in Nigeria, Argentina, and Turkey Amid Raging Inflation. Bitcoin’s price hit an all-time high in Nigeria, Argentina, and Turkey. The reason for this is the raging inflation in these countries and the fact that people are seemingly turning to cryptocurrency in search of some sort of capital protection.
Justin Sun Claims Record HTX Profits This Quarter. Justin Sun is claiming that his firm turned more than 14% profits in the last quarter. According to the entrepreneur, Huobi has had its best quarter ever.
Bitcoin saw a brief stall in its rally which triggered a decline back down to $33,700. This decline, seemingly out of nowhere, may have not been random given some developments in the crypto space. As the rally resumes once more, here’s a look at these developments.
The listing would remain off the site for several hours while community members speculated on what could be the cause of this. Around this time, the price of Bitcoin began to fall, seemingly driven by the fact that investors saw the removal of the BlackRock listing as a sign that a Spot Bitcoin ETF wasn’t coming as soon as they expected.
Hours later, Bloomberg Analyst Joe Light revealed that the listing was back up on the site. Apparently, the initial listing and the subsequent ones had carried one small change in detail which was a change in the Create/Redeem section from a “Y” to a “N.”
Another Bloomberg analyst James Seyffart explained that this likely meant that it was to indicate whether the ETF listing was open to creations/redemptions. When Light asked if this change could point out a launch without using that attribute, to which Seyffart said:
“I personally don’t think this means all that much if I’m being honest. Think it indicates Blackrock is getting everything ready to launch if and when they get an SEC approval. And that the N just means it’s not open for create redeem because it’s not live yet.”
The return of the BlackRock Spot Bitcoin ETF on the DTCC sparked enthusiasm across the space once more than it did before. The price of Bitcoin quickly started to recover and by Wednesday morning, was back above the $34,000 mark once more.
These events outline the importance of a Spot ETF and how it is the major driver behind the most recent price rally. So an approval or a rejection would both have a major impact on the digital asset’s price. For one, an approval would likely see Bitcoin clear above $40,000. However, a rejection would be detrimental to the rally, and will probably send it back below $30,000.
Presently, Bitcoin is maintaining bullish momentum above $34,100. But it is seeing small losses of 0.99% on the 24-hour chart, and its daily trading volume is down 34.58%.
The price of BTC continues to push higher, and the bullish momentum remains intact as news around the Bitcoin ETF (Exchange Traded Fund) improves overall sentiment. In the wake of the recent rally, some trading firms doubled down on their bullish positions.
As of this writing, the price of Bitcoin stands at $24,200 with sideways movement in the last 24 hours. The cryptocurrency rose by over 20% the previous week, operating as the top performer in the top 10 by market capitalization.
Bitcoin ETF To Trigger Larger Rally: What’s The Target?
Via social media platform X, trading desk QCP Capital disclosed their positions coming into the rally. The firm longed Bitcoin volatility with options contracts, taking some profits on their positions as the cryptocurrency rallied.
Still, the firm remains optimistic, holding on to their calls due to expiry in December. By then, the firm targets a BTC price above $38,000 to $44,000, based on the momentum generated by a potential Bitcoin ETF approval.
In the last week, the news generated by this event has shifted market sentiment, leading investors to a more favorable area. However, the firm remains cautious about the US Securities and Exchange Commission (SEC) approving a spot Bitcoin ETF in the short term.
QCP Capital stated:
(…) we believe the SEC will avoid playing the role of kingmaker, sticking with its own precedent set during the BTC/ETH futures ETF approval process and will wait to approve multiple managers at the same time. Nonetheless with this bullish break of 32k, we believe the market has started to price in an approval as the base case. The only question now is when the approval will happen.
BTC’s price is approaching 0.38 Fibonacci levels, which hints at a reversal. Source: QCP Capital
SEC To Avoid Kingmaking In Bitcoin ETF Approval.
The trading firm believes the financial instrument will get approved in 2024. The SEC will likely avoid favoring one firm to prevent BlackRock or other asset managers from taking a large portion of the clients and the trading volume, as when the future Bitcoin ETF was approved.
The firm believes the financial instrument could get approved “much later than the market expects now.” As mentioned, investors have begun pricing in any price action associated with the ETF, which could lead BTC to another range until 2024.
The firm cautioned players from taking late long positions:
(…) we are seeing stretched positive perp funding rates especially on Deribit (BTC over 70% and ETH over 100%) as well as elevated short-end ATM vols (BTC up to 75%!) – typically indicative of an exhausted short-term move.
The potential approval of a Spot Bitcoin ETF by the US Securities and Exchange Commission (SEC) is expected to have significant effects on Bitcoin and the Spot Bitcoin ETF market. Addressing what investors can expect, the crypto research firm Galaxy Digital recently provided insights as to what could happen in the first three years upon the launch of this fund.
What To Expect In The First Three Years
In a research paper released on October 24, Galaxy Digital’s research associate Charles Yu provided a vivid illustration of the heights a Spot Bitcoin ETF could attain in terms of market size and inflows in the first three years.
Source: Galaxy Research
As to market size, Yu made his predictions on the addressable market size of a US Bitcoin ETF based on how they expect various wealth channels to adopt the fund. According to him, RIA (Registered Investment Advisor) will ramp up starting at 50% in the first year and increasing to 100% in the third year.
Meanwhile, broker-dealers and bank channels will ramp up at a slower pace, starting at 25% and increasing to 75% by the third year. If their assumption comes true, they estimate the market size to hit $14 trillion in the first year, $26 trillion in the second, and $39 trillion in the third year.
The firm’s estimates of inflows into the Bitcoin ETFs are based on their market size estimates. Going by this, they predict that these funds could see $14 billion of inflows in the first year, $27 billion by the second year, and up to $39 billion by the third year after launch.
Yu noted that factors such as a potential delay or denial of the pending Spot Bitcoin ETFs could affect their analysis. Other factors like poor price performance could also cause a low adoption rate, which they believe will potentially affect their estimates.
Yu also provided insight into the effect that these Spot Bitcoin ETFs could have on BTC’s price. They predict that Bitcoin’s price could see a 74.1% increase in the first year of these funds launching. He made this estimate using the expected amount of inflows ($14 trillion), which is expected to come into these funds in the first year while making comparisons to Gold ETFs.
Source: Galaxy Research
Specifically, they project that Bitcoin’s price could see a 6.2% increase in the first month of these funds’ launch as they estimate an adjusted inflow of over $10 billion in the first month. This price increase in the first month is expected to keep ramping down to a 3.7% price impact in the last month of the first year of launch, all of which will cumulatively add up to the 74.1% increase.
Featured image from The Conversation, chart from Tradingview.com
Market sentiment has experienced a significant upturn, with a noticeable trend in digital asset investment products attracting inflows for four consecutive weeks, accumulating a total of $66 million. This recent four-week streak of inflows has now reached $179 million.
Following a recent increase in prices, the total Assets under Management (AuM) have surged by 15% from their September lows, reaching nearly $33 billion, marking the highest point since mid-August, according to the latest CoinShares report.
Solana’s Inflow Streak Continues
The European asset manager revealed that Solana is the most popular altcoin this year so far, even in the face of challenges such as its affiliation with the FTX and Sam Bankman-Fried, which sent its price to a massive downward spiral as well as recurring outages that halted the layer 1 blockchain several times last year.
However, with the broader market showing signs of recovery, investors are now rekindling their interest in the altcoin.
CoinShares’ data suggest that Solana saw an additional $15.5 million inflows last week, pushing its year-to-date inflows to $74 million, representing 47% of total AuM.
This is in stark contrast to Ethereum, which recorded outflows of $7.4 million. In fact, it was the only altcoin to see outflows last week.
Investors Remain Cautious Despite Inflows
Although the most recent inflows are likely driven by the anticipation of a spot Bitcoin ETF launch in the US, they pale in comparison to the initial surge of capital that followed BlackRock’s announcement in June, where four consecutive weeks of inflows reached a staggering $807 million.
CoinShares said this discrepancy suggests that the more modest inflows this time, despite the positive developments stemming from the Grayscale vs. SEC court ruling, reflect investors embracing a more cautious stance.
“While the most recent inflows are likely linked to excitement over a spot bitcoin ETF launch in the US, they are relatively low in comparison to June announcements, suggesting more caution from investors this time around.”
A significant 84% of these inflows were directed towards Bitcoin investment products, propelling the year-to-date total to $315 million during the same period.
Over the week, the surging prices had led to an influx of $23 million into short Bitcoin positions, but these positions were pared back substantially, with net inflows totaling just $1.7 million by the week’s end, indicating a waning confidence among short sellers.
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In an Oct. 24 announcement, Grayscale shared news of a new FTSE Grayscale Crypto Sector Index Series, comprising five rules-based indices.
The decision was made as a way to provide a comprehensive representation of Grayscale’s Crypto Sectors in the investable crypto market.
Monitoring performance in five categories
The newly introduced FTSE-Grayscale indices are designed to monitor the performance of cryptocurrency assets across five distinct categories, which include currencies, smart contract platforms, financials, consumer and culture and utilities and services.
In conjunction, we are introducing a new partnership with @FTSERussell and debuting the FTSE Grayscale Crypto Sector Index Series (“Crypto Sector Indices”), a set of 5 distinct, rules-based indices capturing the investable crypto market of Grayscale Crypto Sectors. (3/11) pic.twitter.com/SyH1zFU70h
A follow-up post states that it will encompass over 150 protocols and will undergo quarterly reassessment to adapt to the ever-evolving nature of the crypto asset class.
“Investors have increasingly expressed interest in diversifying beyond crypto’s largest assets, Bitcoin and Ethereum, and many look to Grayscale to better understand this robust, evolving asset class,” Grayscale CEO Michael Sonnenshein wrote on X.
In the future, Grayscale shares that this release will lead to various tools and structures that will be able to monitor themes, risks, and opportunities of the asset class, in an attempt to provide a basis for more informed investing.
Active pursuit of the crypto industry
Grayscale continues to be seen in news headlines for its efforts in expanding its reach in the crypto space, with several announcements surrounding its Bitcoin exchange-traded fund (ETF).
A few days earlier, on Oct. 19, the leading crypto asset manager had also submitted a fresh registration statement to the U.S. Securities and Exchange Commission as part of its persistent efforts to transform the Grayscale Bitcoin Trust into a standard Bitcoin ETF.
Bitcoin exceeded $35,000, attributed to the anticipated approval of BlackRock’s spot Bitcoin ETF in the US.
Experts, including Lark Davis and Matrixport, predict that ETF approval could send Bitcoin’s price between $42K-$100K.
Anthony Scaramucci believes SEC approval might increase Bitcoin’s valuation from $600 billion to $6 trillion.
How High Can BTC Shoot?
The price of Bitcoin (BTC) has been among the most intriguing topics in the cryptocurrency space for years. Recently, it skyrocketed above $35,000, giving bulls fresh hopes that a further rally might be on the cards. It is worth noting that such a valuation was last seen in May 2022.
Bitcoin’s impressive performance lately is undoubtedly due to the potential approval of BlackRock’s application to launch a spot BTC ETF in the United States. Earlier this week, the company’s product was listed with the Depository Trust & Clearing Corporation, and many assumed that this was the last step before the SEC’s long-awaited nod.
Multiple experts and analysts have suggested over the past several months that approving a spot BTC ETF in the States could have an explosive effect on the price of the leading digital asset. One such person is the popular entrepreneur and Bitcoin investor using the X (Twitter) handle, Lark Davis.
He compared the possible launch of a spot BTC ETF in America to the approval of that type of product focused on gold in 2004. The price of the yellow metal has risen almost 400% since then, with Davis arguing the same thing might happen to Bitcoin in the following years.
The digital assets financial services platform – Matrixport – also laid out a bullish forecast, assuming the ETF sees the light of day in the world’s largest economy. The team behind the organization expects to see BTC trading between $42K and $56K once the SEC says “yes.”
It is worth mentioning that ChatGPT estimated that the asset has a chance to skyrocket to the coveted level of $100,000 if the product goes live. However, other factors like the upcoming halving, regulatory developments, and interest from institutional investors should also be in place for the surge.
How About an 11,000% Jump?
Another prominent figure who recently gave their two cents on the matter was the former White House official – Anthony Scaramucci. The Founder and Managing Partner of SkyBridge Capital predicted that BTC could multiply its price by 11 times should the SEC approve a spot Bitcoin ETF in the States:
“Think of the magnitude of that. If there’s a hundred billion dollars that flows into Bitcoin, the guys at Fidelity think that could have an 11 times factor in terms of valuation, so you could see Bitcoin go from a $600 billion asset to a $6 trillion asset.”
The SEC’s probable approval of a spot BTC ETF is not the only element that could act as a catalyst for Bitcoin’s price. Those willing to see what other factors could play a role and the top five price predictions coming from experts could take a look at our video below:
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In response to Commissioner Hester Peirce’s expression of confusion about the rationale behind the SEC’s failure to greenlight a Bitcoin ETF, John E Deaton, a lawyer at Crypto-Law US, shares what this means for the public.
One of the outcomes is the possibility that approval would occur before the end of the year, or at the latest, by the close of the first quarter of 2024.
An important factor
In her response, Commissioner Hester Peirce expressed uncertainty regarding the SEC’s timeline for approving a spot BTC fund. Peirce, a staunch advocate for the spot Bitcoin ETF approval, highlighted that while the ongoing court case remains a significant influencing factor, she finds it perplexing to predict her colleagues’ perspective on the matter.
One of two things:
1) the @SECGov has capitulated on the spot #BTC ETF and approval, before the end of the year, or certainly, before the end of the 1st Quarter of 2024, is a certainty;
or
2) the SEC is gathering more information during these discussions to come up with a… https://t.co/NQqTfof6It
Peirce commented, “The logic for why we haven’t [approved a Bitcoin ETF] has always mystified me. The court case obviously is an important factor in the landscape, but I can’t guess my colleague’s approach to this topic.”
In this unfolding scenario, Deaton proposes there are two distinct possibilities to consider: Firstly, the SEC may have shifted its stance and is on the brink of approving the spot BTC ETF, either by year-end or certainly within the initial quarter of 2024, signifying a significant shift in their position.
Alternatively, Deaton suggests the SEC’s ongoing discussions could indicate a strategic move to gather additional information, possibly with the intention of devising a fresh rationale for denying the spot ETF, creating what might be one of the most remarkable head fakes or ‘rug pulls’ in SEC history.
Several applications being actively scrutinized
In an Oct. 19 post, the SEC Chairman Gary Gensler has affirmed that the regulatory body is actively scrutinizing several applications for Bitcoin spot ETFs.
Although Gensler alluded to the existence of eight or nine such applications at this time, he underscored the nature of the review process, refraining from providing explicit details about their status.
Coinbase chief legal officer Paul Grewal has expressed optimism that the U.S. Securities and Exchange Commission (SEC) will soon approve a Bitcoin exchange-traded fund (ETF).
Grewal told CNBC that he is confident in the approval of a U.S. Bitcoin ETF from the SEC “in short order.”
Grewal’s assertion comes after a big court decision that found the SEC had no grounds to deny asset management firm Grayscale its application to turn its GBTC Bitcoin (BTC)fund into an exchange-traded fund.
Additionally, the regulator opted not to appeal the court’s ruling, sparking speculation within the industry that Bitcoin ETF approvals were on the horizon.
Despite ongoing legal complications involving Grayscale’s parent company, Digital Currency Group and the Gemini crypto exchange, Grewal remains optimistic about the prospect of additional Bitcoin ETFs being approved.
The Coinbase attorney, however, did not give a specific timeframe within which he expects the approvals to be granted, instead clarifying that he expects the agency will have to fulfill its legal obligation following the court’s decision.
“I think that, after the U.S. Court of Appeals made clear that the SEC could not reject these applications on an arbitrary or capricious basis, we’re going to see the commission fulfill its responsibilities. I’m quite confident of that.”
Paul Grewal, Coinbase chief legal officer
Retail investors might find this development appealing, especially those wanting to get exposure to Bitcoin without purchasing the cryptocurrency directly from an exchange.
Firms like Coinbase, which is the largest crypto exchange in the U.S., are expected to benefit significantly from any ultimately approved Bitcoin ETF.
In the interview, Grewal also shared his opinion about the ongoing trial of former FTX CEO Sam Bankman-Fried, who is facing several charges of conspiring to defraud FTX investors. The Coinbase insider stated that he is “encouraged” and “optimistic” that bad actors were being brought to book through such trials and rigorous regulations.
While maintaining the $30,000 mark is proving challenging for Bitcoin, there appears to be a noteworthy surge in bullish sentiment. It can be attributed in part to the increased optimism of investors regarding the potential approval of a spot Bitcoin ETF in the US.
A potential approval can push Bitcoin between $42,000 and $56,000, according to a new report.
Bitcoin’s Ascent to $56,000
So far, the US Securities and Exchange Commission (SEC) has declined to grant approval for a spot Bitcoin ETF despite numerous applications. Matrixport’s latest report has weighed in on the matter, speculating on the potential impact of BlackRock’s eagerly awaited spot Bitcoin ETF approval.
The report draws a comparison to the substantial $120 billion precious metals ETF industry. If even a modest 10–20% of investors currently engaged in precious metal ETFs decide to diversify their portfolios by allocating funds to Bitcoin ETFs, this shift could channel a notable $12 billion to $24 billion into these cryptocurrency investment options.
The crypto financial services platform’s latest analysis suggests that if BlackRock’s spot Bitcoin ETF is approved, the asset could experience a significant price surge.
Tether’s market cap, often viewed as a proxy for potential ETF inflows, plays a crucial role in this scenario. A $24 billion increase in Tether’s market cap is predicted to drive Bitcoin’s price to $42,000, reflecting a conservative estimate.
However, a more substantial influx of $50 billion, accounting for a 1% allocation from Registered Investment Advisors (RIAs), could propel Bitcoin to soar to an impressive $56,000.
BlackRock stated,
“Our earlier reports analyzed the 15,000-strong US registered investor advisor (RIA) community overseeing around $5 trillion. This group holds immense potential, and even a modest 1% allocation recommendation for Bitcoin would usher in around $50 billion in inflows.”
It is important to note that BlackRock submitted its application for a spot Bitcoin ETF on June 15, and Bitcoin’s price surged from $24,800 to over $30,000, representing over a 20% rise within the seven days following the filing.
BlackRock Amends Bitcoin ETF Application
BlackRock submitted a revised version of its S-1 application for a spot Bitcoin ETF on Wednesday in response to a series of updated filings by competing firms.
In its October 18th filing, the investment giant made alterations to a risk disclosure with regard to the potential impact of tumultuous events within the broader crypto industry on its share prices. While its prior statement addressed the influence of fraud and security lapses on major Bitcoin exchanges, BlackRock extended the caution to encompass BTC itself, deeming the market “unregulated” and “lacks transparency.”
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Grayscale files for new spot Bitcoin ETF on NYSE Arca
Major cryptocurrency investment firm Grayscale Investments has filed a new application with the U.S. Securities and Exchange Commission for a new spot Bitcoin exchange-traded fund (ETF). The new filing aligns with Grayscale’s ongoing effort to convert its Grayscale Bitcoin Trust into a spot Bitcoin ETF, according to a statement from the firm. The news comes weeks after Grayscale won an SEC lawsuit for its spot Bitcoin ETF review, with a court of appeals ordering the SEC to explain why it rejected Grayscale’s application in June 2023. The company also filed with the SEC to list an Ether futures ETF in September.
New York Attorney General sues Gemini, Genesis, DGC for allegedly defrauding investors
New York’s attorney general has filed a lawsuit against cryptocurrency firms Gemini, Genesis and Digital Currency Group (DCG) for allegedly defrauding more than 23,000 investors through the Gemini Earn investment program. The suit claims that Gemini assured investors that the program was a low-risk investment, while investigations carried out by the office of New York State Attorney General Letitia James found that Genesis’ financials “were risky.” The lawsuit also charges Genesis’ former CEO, Soichiro Moro, and its parent company’s CEO, Barry Silbert, with defrauding investors by attempting to conceal more than $1.1 billion in losses. In addition, the court case looks to ban Gemini, Genesis and DCG from operating in the financial investment industry in New York.
Former FTX engineering director faces up to 75 years in prison following guilty plea
Nishad Singh, the former engineering director at now-defunct crypto exchange FTX, faces up to 75 years in prison for charges related to defrauding users of the crypto exchange. He pleaded guilty to fraud charges as part of his cooperation agreement with the U.S. prosecutors. During his testimony this week, Singh said that when liquidity issues at FTX began in November 2022, he felt “suicidal for some days” while dealing with alleged inconsistencies between the exchange’s public statements and its activities behind the scenes. Singh also claimed that Bankman-Fried had the habit of deciding on purchases through Alameda Research by himself.
Binance shutting down European Visa debit card in December
Elon Musk, Mark Cuban team up to contest SEC trial strategies
Elon Musk, Mark Cuban and others have collaboratively submitted a shared amicus brief to the Supreme Court of the United States to raise concerns about the U.S. Securities and Exchange Commission’s (SEC) approach to conducting internal proceedings without the inclusion of juries. The context of this legal challenge centers around the SEC vs. Jarkesy case. George Jarkesy argues that the SEC’s internal adjudication process, which lacks a jury and is overseen by an administrative law judge appointed by the commission, contradicts his Seventh Amendment rights. Effectively resulting in a single entity fulfilling the roles of judge, jury and enforcer.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $29,590, Ether (ETH) at $1,607 and XRP at $0.52. The total market cap is at $1.12 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Bitcoin SV (BSV) at 59.00%, Stacks (STX) at 25.91% and MX TOKEN (MX) at 25.26%.
The top three altcoin losers of the week are Conflux (CFX) at -8.03%, Frax Share (FXS) and Sui (SUI) at -6.35%.
“Using publicly available information to learn is not stealing. Nor is it an invasion of privacy, conversion, negligence, unfair competition, or copyright infringement.”
“After extensive DAO forum discussion followed by community vote, the sunsetting of the Lido on Solana protocol was approved by Lido token holders and the process will begin shortly.”
BTC price hits 2-month high amid bet Bitcoin will break $32K ‘soon’
On Oct. 20, data from Cointelegraph Markets Pro and TradingView captured new two-month Bitcoin highs of $30,233 on Bitstamp. BTC price showed continued strength during the Asia trading session on the same day, with a slight comedown taking the spot price back below $29,500.
With volatility still evident, market participants argued that a weekly candle close was needed in order to establish the rally’s true staying power. For Keith Alan, co-founder of monitoring resource Material Indicators, the 100-week moving average (MA) at $28,627 was of particular importance.
“This move is one to watch, but what I’m watching for right now is to see if this Weekly candle closes above the 100-Week MA and if next week’s candle can stay above it with no wicks below,” Alan wrote in part of an X post on the day. “Some might consider that a confirmation of a bull breakout, but this market is known for squeezes and fake outs so I’m looking for more confirmations. For me BTC will also need to take out prior resistance at $30.5k, $31.5k and ultimately $33k to call a bull breakout confirmed and validated.”
FUD of the Week
Fantom Foundation hot wallet hacked for $550K
The Fantom Foundation, the developer of the Fantom network, has been hacked for over $550,000 worth of cryptocurrency. The foundation confirmed the attack on X, claiming that most of the funds stolen belonged to other users and that 99% of the foundation’s funds remain safe. Blockchain security researchers initially reported that the attacker stole approximately $7 million in crypto. The Fantom Foundation later released an official statement saying that some of the wallets labeled “Fantom: Foundation wallet” were mislabeled by block explorers and that not all the stolen funds were from the foundation.
TrueCoin’s third-party vendor breach potentially leaks TUSD user data
TrueUSD (TUSD) announced a potential leak of certain Know Your Customer (KYC) and transaction history data after one of TrueCoin’s third-party vendors was compromised. The company was the operator of the TUSD stablecoin until July 13, 2023. The impact of the attack and the resultant data leak is yet to be identified, as the total number of users’ data was not revealed during the announcement. Data collected from such breaches — names, email addresses and phone numbers, among others — are typically used for phishing attacks. Attackers reach out to unwary investors by mimicking various crypto services, often promising high profits in short amounts of time.
Web3 game project allegedly hired actors to pose as executives in $1.6M exit scam
The development team for gaming project FinSoul carried out an alleged exit scam, siphoning away $1.6 million from investors through market manipulation, according to a recent report from blockchain security platform CertiK shared with Cointelegraph. The FinSoul team allegedly hired paid actors to pretend to be its executives, then raised funds for the sole purpose of developing a gaming platform. However, instead of actually creating the platform, the FinSoul team allegedly transferred $1.6 million in bridged Tether from investors to itself. Blockchain data indicates developers then laundered the funds through cryptocurrency mixer Tornado Cash.
Big Questions: What did Satoshi Nakamoto think about ZK-proofs?
What was once a passing interest of Bitcoin inventor Satoshi Nakamoto, zero-knowledge-proof technology is now a major part of the crypto world.
Ethereum restaking: Blockchain innovation or dangerous house of cards?
“Restaking” involves reusing staked Ether to earn fees and rewards. The restaked tokens can then help secure and validate other protocols. But many fear restaking could disrupt Ethereum’s chain itself.
Bitmain’s revenge, Hong Kong’s crypto rollercoaster: Asia Express
Bitmain allegedly fires staff for speaking out against salary cuts, Hong Kong investors lose faith in crypto after JPEX scandal, Bitget gets a new crypto credit card and more.
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Coinbase’s Chief Legal Officer, Paul Grewal has recently used the law to back the approval of a Spot Bitcoin Exchange Traded Fund (ETF) by the United States Securities and Exchange Commission (SEC), highlighting that the US regulator should fulfill its responsibilities.
Coinbase CLO Optimism On The Approval Of A Spot BTC ETF
In an interview on Friday, with CNBC’s Arjun Kharpal, Paul expressed his optimism about the approval of Bitcoin ETF applications by the SEC. The Coinbase CLO said that he is quite confident that the SEC will soon approve a spot Bitcoin ETF, backing his belief under the law.
“I’m quite hopeful that these [ETF] applications will be granted, if only because they should be granted under the law,” Paul stated.
Following the interview, Paul highlighted his beliefs in the early success of approval, noting that the firms that have stepped forward with well-structured ETF proposals for these products and services are crucial players in the financial service industry.
I think that the firms that have stepped forward with robust proposals for these products and services are among some of the biggest blue chips in financial services. So that, I think, suggests that we will see progress there in short order.
However, Paul did not give a time frame as to when the approval will happen since the final decision about the approval ultimately lies with the SEC. However, he is still confident that the US regulator is likely to approve a Bitcoin ETF in a short period due to recent developments.
Paul further backed his optimism following the SEC’s recent court setback when a judge from the US Court of Appeals stated that the US regulator had no grounds to deny Grayscale’s approval to convert its Grayscale Bitcoin (BTC) into a spot Bitcoin ETF, calling the SEC’s decision an arbitrary move.
“I think that, after the U.S. Court of Appeals made clear that the SEC could not reject these applications on an arbitrary or capricious basis, we’re going to see the commission fulfill its responsibilities. I’m quite confident of that,” Paul stated.
In addition, Paul also highlighted the SEC’s failure to file an appeal on the ruling indicating a potential approval of a spot BTC ETF soon within the stipulated timespan that was given to them by the court.
If an approval of a Spot ETF is made, BTC could experience a major rally. A Bitcoin ETF serves as a means for investors to invest in BTC without having to make a direct purchase of the digital asset from an exchange.
One of the major cryptocurrency exchanges that will benefit a lot from any Bitcoin ETF approval is Coinbase. This is because the crypto exchange’s common stock is held in portfolios tailored to give investors exposure to cryptocurrencies.
JPMorgan On A Spot Bitcoin ETF Approval
Analysts from JPMorgan, have also expressed their optimism on a Bitcoin ETF approval, that the ETF product could be available to the public by this Christmas.
Due to recent developments following the approval of a Spot Bitcoin ETF, the financial giant believes that there is a high chance that an ETF could gain approval before January 10, 2024.
The excitement surrounding the potential approval of a spot Bitcoin exchange-traded fund (ETF) located in the United States is developing, as evidenced by the spike in Google searches for this cutting-edge financial instrument. The increased interest from the general public and retail investors highlights the growing excitement about the possible early 2024 launch of a spot Bitcoin ETF.
According to Google Trends data, this week will mark the peak value of 100 for the global search value of the term “spot Bitcoin ETF” over a five-year period, indicating the highest level of interest among users.
The search value for “Bitcoin ETF” has also increased to 39, the highest level since ProShares’ futures-based ETF was launched two years ago.
Search Trends Highlight Enthusiasm
The increase in searches indicates that more people are actively looking for information on these financial products and how they can affect the market capitalization of Bitcoin, which is currently the largest cryptocurrency in the world.
After the US Securities and Exchange Commission missed a deadline to contest a significant legal setback, market players are becoming more optimistic that the SEC will approve a spot Bitcoin ETF early next year.
The fact that the deadline was missed has increased confidence and raised hopes for the ETF’s adoption in 2024, which will unleash a wave of liquidity.
Bitcoin moving closer to the $30K territory. Chart: TradingView.com
Acceptance of a position a recurring topic in the cryptocurrency world is the Bitcoin ETF, which is frequently regarded as a gauge of the currency’s widespread acceptance. Leading asset management companies, such as Ark Invest and BlackRock, are vying for the top spots in ETF approval.
Cathie Wood takes charge of Ark Invest, and she has carefully modified its applications. An agreement with Coinbase that emphasizes the division of the trust’s assets from the custodian is one such modification.
This answers the SEC’s earlier worries about spot Bitcoin ETF applications lacking strong surveillance-sharing arrangements.
Looking Ahead: The Future Of Spot Bitcoin ETFs
The anticipation for the possible introduction of a spot ETF intensified around three months ago when significant participants in conventional financial markets, such as BlackRock, submitted applications for one.
This development helps explain why Bitcoin performs better than other cryptocurrencies in addition to shielding it from unfavorable macroeconomic developments.
The regulatory environment is still a major concern as excitement grows. The first Bitcoin ETF in the US is expected to be approved, and the cryptocurrency community is excited about this development, believing it will further establish Bitcoin’s standing in the mainstream financial industry.
The spike in Google searches is indicative of the growing interest in cryptocurrencies and the need for cutting-edge financial solutions.
To sum up, the growing demand for spot Bitcoin ETFs is evidence of how digital assets are developing and how they are being incorporated into conventional financial markets.
The future of spot Bitcoin ETFs is bright, with significant support from important stakeholders and a regulatory landscape that is rapidly embracing these innovations.
Image: Shutterstock
Source: Galaxy Research
