Wall Street titan and Asset manager Franklin Templeton has applied for an Ethereum Spot Exchange-Traded Funds (ETF) after a struggle to gain approval for their Bitcoin Spot ETF in early January.
Asset Manager Files For Spot Ethereum ETF
Asset managers have gravitated toward the Ethereum spot ETF since the United States Securities and Exchange Commission (SEC) approved the Spot Bitcoin ETF. Franklin Templeton is the latest manager to apply with the SEC to get approval for this financial product.
The asset manager’s move came after successfully introducing the BTC spot ETFs. This is a notable step toward making more crypto investment products accessible to institutional and individual investors.
James Seyffart, a senior analyst from Bloomberg Intelligence, also shared the update with the crypto community on X (formerly Twitter). Seyffart’s X post included a screenshot of the asset manager’s filing and data regarding other applicants.
According to the post, Franklin Templeton is the eighth company in the cryptocurrency market to file for product approval. Previous asset managers to file applications for Ethereum ETFs include Hashdex, BlackRock, Fidelity, Ark and 21Shares, Grayscale, VanEck, Invesco, and Galaxy.
Per the official filing, a Delaware statutory trust is how the Franklin Ethereum Trust is set up. The ETF aims to give investors access to ETH in a regulated manner by allowing them to store it directly through a custodian.
It states in the company’s S-1 filing that the proposed “Franklin Ethereum Trust” will hold ETH and “may, from time to time, stake a portion of the fund’s assets through one of the more trusted staking providers.”
Staking is the act of locking up digital currency to maintain the operations of a blockchain network. They plan to stake some of the ETF’s ETH holdings to supplement its income through staking rewards.
The Price Of ETH Rallies Amidst The Update
Franklin Templeton’s spot Ethereum ETF application was made in light of the price of ETH experiencing an uptick. However, no solid proof exists that the latest development impacted the price of crypto assets.
Ethereum was trading at $2,661 as of press time, indicating an increase of over 7% in the past 24 hours. Data from CoinMarketCap shows that its market capitalization is also on the upside, marking an increase of over 7%.
Meanwhile, its trading volume has increased significantly by over 172% in the past day. Due to the rise, ETH now ranks third in the entire crypto market by trading volume.
ETH trading at $2,679 on the 1D chart | Source: ETHUSDT on Tradingview.com
Featured image from iStock, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
BNY Mellon has expanded its use of Microsoft for cloud services and AI models, according to a Feb. 5 release from the bank. The $30 billion bank will integrate its financial data with Microsoft Azure to create AI-driven models that its clients can use for services like wealth management, BNY Mellon Chief Growth Officer Akash […]
Bitcoin enthusiasts may need to temper their expectations for a rapid ascent to $70,000. On January 28, a crypto analyst thinks the world’s most valuable coin must fall back to $30,000, a critical support level, before resuming its uptrend.
Bitcoin Must Fall: Path To $30,000?
CryptoCon, a crypto analyst, cites historical price performance to support this assertion. Specifically, the argument is that no Bitcoin cycle has reached its recent high without first revisiting the monthly least square moving average (MA).
Currently, this MA is at $30,358. If past performance guides, CryptoCon believes Bitcoin could likely dip to this level before prices recover sharply.
Historical BTC price performance | Source: Crypto Con on X
The Bitcoin analyst notes that the MA has consistently acted as a floor for Bitcoin prices, even during periods of high volatility. CryptoCon asserts that the only outlier was the 2019 bear market, triggered by the Black Swan event of COVID-19.
The analyst further acknowledges that though some observers say Bitcoin has bottomed, further confirmations might be required. Based on CryptoCon’s analysis, insufficient data supports this claim. The analyst asserts that by how prices have behaved in the past, it is highly likely that the coin will drop to as low as $30,000 by February or March.
A Contrarian Position: Wall Street Accumulating BTC
This prediction may disappoint some Bitcoin holders eagerly anticipating a sharp recovery to $70,000 and beyond. This optimistic preview comes after the United States Securities and Exchange Commission (SEC) recently approved multiple spot Bitcoin Exchange-Traded Funds (ETFs).
Though prices fell, pinned to the massive liquidation of Grayscale Bitcoin Trust (GBTC) shares by, among other investors, FTX–the defunct exchange, prices recovered over the weekend. Spot Bitcoin ETF issuers, including Fidelity and BlackRock, have been buying BTC en-masse over the past weeks. Analysts have interpreted this as a net positive for prices. This development might lift sentiment and drive the coin to January 2023 highs soon.
However, looking at CryptoCon’s preview, it appears the analyst is taking a contrarian position, expecting prices to move against the general public. Whether this retracement will help anchor BTC and build a more sustainable long-term trend remains to be seen.
Crypto Fear and Greed Indicator | Source: Coinstats
From the sentiment chart, Fear-and-Greed Index, bulls expect prices to increase in the sessions ahead. According to Coinstats, the index’s reading is 55, up from 50 last week.
Feature image from Canva, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
According to data from BitMEX Research, BlackRock’s Bitcoin spot ETF – IBIT – has now set a new record, achieving a total net inflow of $2 billion. This feat allows IBIT to maintain its position as the best-performing fund of the bunch, following the approval of 11 Bitcoin spot ETFs by the US Securities and Exchange Commission on January 10.
BlackRock’s IBIT Maintains Dominance As Total Net Flows Reach $744.6 Million
On January 25, which marked the tenth trading day of the Bitcoin spot ETF market, BlackRock’s IBIT produced an unsurprising positive performance, notching $170.7 million in inflows. This gain allowed the investment fund to move into an exclusive list as the first Bitcoin spot ETF to amass $2 billion in market cap.
Commenting on this feat, Bloomberg analyst James Seyfarrt has credited the recent rise in BTC’s price as a major contributing factor. He said:
Yes, the #Bitcoin price has pushed $IBIT‘s assets beyond $2 billion. This plus likely new flows today should mean it will be above $2 billion at close.
Following the trading debut of BTC spot ETFs on January 11, IBIT quickly emerged as an investor’s favorite, recording the highest individual daily inflows of the market at $386 million on January 12. BlackRock’s BTC spot ETF has managed to retain this investors’ attention over the first two trading weeks, evidenced by its consistent positive performances, which has culminated in a total flow of $2.086 billion.
IBIT’s performance is closely followed by Fidelity’s FBTC, which recorded $101 million in inflows on January 25, moving its total flows to $1.825 billion. Meanwhile, other Bitcoin spot ETFs with notable performances include Bitwise’s BITB and Ark Invest’s ARKB, both of which boast individual cumulative AUMs of over half a billion dollars.
In other news, the outflows in Grayscale’s GBTC remain a constant trend; however, there has been a notable decline in selling volume over the last few days. At the time of writing, GBTC’s total outflow is valued at $4.786 billion. In comparison with a cumulative inflow of $5.53 billion, total flows in the Bitcoin spot ETF market stand at $744.6 million.
Source: BitMEX
Bitcoin Price Overview
At press time, Bitcoin is currently trading at $41,725.19 following a 4.52% price gain in the past day, according to data from CoinMarketCap. This recent uptick is quite significant, considering the asset’s previous bearish form, marked by a 20% decline over the last two weeks which resulted in BTC’s dipping below $39,000.
Bitcoin’s price has been negatively affected by GBTC’s massive outflows; however, as the selling pressure appears to be decreasing, coupled with consistent positive performances of other ETFs, notably BlackRock’s IBIT, that crypto market leader could soon pull off a market recovery.
Featured image from Reuters, chart from Tradingview
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Venture funding fell in 2023 as investors took uncertain macroeconomic conditions into account and doubled down on due diligence. Global venture funding in 2023 stood at $248.4 billion, down 42% year over year, its lowest point since 2017, according to a Jan. 4 State of Venture 2023 report by business analytics provider CB Insights. Global […]
Despite recent dips in price, Bitcoin is still on track for further gains, according to BitQuant. Based on technical analysis, the analyst predicts that the world’s most valuable coin will likely top out at $61,000, not $50,000, as some analysts have suggested.
Bitcoin Has Room For Growth, May Peak At $61,000
Sharing a screen grab on X, the analyst argues that based on Bitcoin’s history, prices tend to peak once it retests the 2X100 exponential moving average (EMA). So far, prices are lower, trading below $45,000, and the uptrend is valid despite the recent cool-off.
BTC is yet to retest the 2X100 EMA | Source: BitQuant on X
For this reason, BitQuant is confident that the recent drop was a temporary correction. Accordingly, BTC will likely extend gains, breaking above immediate resistance levels at $45,000 and even $50,000 in the short to medium term.
Still, it should be noted that the 2X100 EMA is a technical indicator and may lag. Since the indicator averages past prices, it might not be accurate, showing current events and expectations of prices.
To demonstrate, in the last bear market, Bitcoin prices dipped below the 2X100 EMA as the coin tanked to as low as $16,000 by November 2022. This development wasn’t expected by the community, taking adherents by surprise.
So far, looking at the Bitcoin price action in the daily chart, the path of least resistance is northwards. Though the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) was expected to lift prices immediately, BTC unexpectedly crashed.
Bears appear in control, recently forcing prices below a short-term support level. For this reason, the immediate trend aligns with the January 12 bear engulfing bar. Making projections from this formation, BTC may, if bears take charge, drop to $40,000 or lower.
BTC Demand Surging
Even with this bearish outlook, the encouraging surge of capital to approved spot Bitcoin ETFs is bullish. Investor Fred Krueger notes that in the last five days alone, IBIT, the spot Bitcoin ETF issued by BlackRock, the world’s largest asset manager, received $1 billion.
Looking at the pace of inflows, not only IBIT but other spot Bitcoin ETFs, Krueger believes BTC is undervalued at spot rates. The investor estimates that spot Bitcoin ETF issuers now hold over 650,000 BTC, up from 619,000 BTC as of January 1. This suggests that institutional investors are increasingly bullish on Bitcoin, and prices, though depressed, might recover going forward.
Feature image from Canva, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
BlackRock reveals that its Bitcoin ETF draws a wide range of investors, reflecting growing interest across different investor profiles in the crypto market.
In a recent interview with Bloomberg TV, Rachel Aguirre, Head of U.S. iShares Product at BlackRock, discussed the burgeoning interest in the company’s new spot Bitcoin ETF, IBIT.
In response to inquiries about whether an investment in IBIT was being redirected from Grayscale’s GBTC product, Aguirre noted that the firm “observed engagement from various investors, including both retail and self-directed types.” She mentioned that some “investors had shown readiness to invest” from the outset.
Aguirre further stated that the “firm is paying attention to investors who are newly exploring this asset class”, expressing a positive outlook towards this emerging interest.
Aguirre did not specify if BlackRock’s model portfolios will include Bitcoin (BTC) allocations in the near future. However, she emphasized the firm’s commitment to educating clients and financial advisors about Bitcoin, empowering investors to make informed financial decisions.
The US spot Bitcoin ETF market is witnessing significant milestones, with BlackRock’s IBIT becoming the first to surpass the $1 billion inflow mark, recently adding $371 million in a single day. Fidelity’s FBTC follows closely with $881 million in inflows. BlackRock now holds an impressive 25,067 BTC, valued over $1 billion, for their spot Bitcoin ETF.
The U.S. Securities and Exchange Commission voted Wednesday to allow mainstream investors to buy and sell bitcoin as easily as stocks and mutual funds, a decision hailed by the industry as a game changer.
The SEC decision clears the way for the first U.S. exchange-traded funds that hold bitcoin to be sold to the public. Expectations of U.S. regulatory approval for such funds drove the price of bitcoin to the highest level in about two years. The digital currency fell to just below $46,000 late Wednesday, up from $17,000 in January 2023.
JPMorgan Chase CEO Jamie Dimon reiterated his longstanding skepticism about BTC despite his company’s role in the BlackRock Bitcoin ETF.
Despite the cryptocurrency’s status as the most valuable in terms of market capitalization, Dimon remained unswayed, questioning its intrinsic worth. Under Dimon’s leadership, JPMorgan Chase has been identified as an authorized participant for BlackRock’s newly approved spot Bitcoin ETF, the iShares Bitcoin Trust.
“The actual use cases are sex trafficking, tax avoidance, anti-money laundering, terrorism financing; it’s not just people buying and selling bitcoin. There’s no value if you’re buying and selling Bitcoin.”
– Jamie Dimon, CEO of JPMorgan Chase
This involvement is a notable contrast to Dimon’s personal views on cryptocurrency. His critical perspective on digital currencies is well-documented; he has previously expressed to lawmakers that, were he in a governmental position, he would seek to curtail the growth of cryptocurrencies. BlackRock’s recent amendment to its SEC filing for its spot bitcoin ETF proposal further cements this dichotomy.
The filing includes both Jane Street Capital and JPMorgan Securities LLC as authorized participants, emphasizing JPMorgan’s emerging role in the developing cryptocurrency ETF sector. The SEC’s approval of several ETF applications today highlights the growing integration of cryptocurrencies into traditional financial systems, a move JPMorgan appears poised to capitalize on despite Dimon’s personal reservations.
Dimon presents a complex scenario for JPMorgan’s approach to future Bitcoin and cryptocurrency developments. While the firm is strategically positioned to facilitate and benefit from the growth of Bitcoin ETFs, its CEO’s skepticism adds a sense of uncertainty about its long-term engagement in the crypto market.
BlackRock is reportedly expected to make a significant announcement regarding a substantial downsizing of its workforce.
The impending layoffs, which account for about 3% of its global workforce, will result in approximately 600 employees leaving the company.
BlackRock to Implement Routine Layoffs
The layoffs are being internally described as routine, aligning with BlackRock’s previous practices. In 2023, the company underwent a similar trimming of its workforce based on employee performance metrics.
This decision comes after a period of substantial market recovery for BlackRock. The firm’s shares saw a notable increase of 6% in 2023, a significant rebound following a 21% decline in 2022.
BlackRock is also scheduled to announce its fourth-quarter earnings on Friday, with analysts projecting a 2.46% decline in earnings per share year-over-year.
The firm ended the third quarter of 2023 with $9 trillion in assets under management (AUM), a decrease from its peak of over $10 trillion in 2022.
BlackRock is set to receive approval from the Securities and Exchange Commission (SEC) for its new spot Bitcoin ETF.
This approval, expected on Wednesday, marks a notable venture into the crypto space, allowing investors to track the daily price of Bitcoin on public stock markets.
This move positions BlackRock at the forefront of digital asset investment alongside other asset managers awaiting similar ETF approvals.
Analysts speculate that these layoffs may be part of BlackRock’s transition into a more mature phase of its business.
The company’s decrease in AUM aligns with broader market instabilities and its embroiled status in political debates over its Environmental Social Governance (ESG) investing strategies.
Due to the controversy surrounding its ESG approach in the U.S., BlackRock has been scaling back its emphasis on such business stateside. U.S. portfolio managers no longer consider ESG metrics in non-ESG funds.
This shift comes as many green investment funds struggle with declining assets and underperformance, particularly in sustainable energy investments.
Larry Fink, the founder and CEO of BlackRock, expressed to Fox Business his decision to refrain from using the term “E-S-G” due to the political controversies it has sparked.
Despite the scaled-back focus in the U.S., ESG remains a significant aspect of BlackRock’s international business.
Mark Wiedman, head of BlackRock’s client business, highlighted the sustained demand for ESG investments from foreign clients, including large sovereign wealth funds in Europe and the Middle East.
Meanwhile, BlackRock plans to reallocate resources saved from the job cuts towards expanding in growth sectors like technology investing and alternative products beyond traditional stocks and bonds.
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BlackRock’s Bitcoin ETF Could See Inflows Of Over $2 Billion
Sigel mentioned on an X (formerly Twitter) space hosted by the media platform, The Block, that he heard from a reliable source that BlackRock has “more than $2 billion lined up in week one.”
He quickly added that he couldn’t be 100% certain of this information. However, it is a possibility, considering that issuers would be looking to get investors that can inject huge sums into their respective ETFs.
Sigel went on to highlight how significant it could be if BlacRock’s ETF indeed saw $2 billion of inflows in the first week of trading, saying that it would “blow away” their initial projections. They estimate that the Spot Bitcoin ETFs could see $2.5 billion of inflows in the first quarter of trading. Meanwhile, they believe the market could grow to $40 billion in the next two years.
Commenting on the possibility of BlackRock seeing this significant amount of inflows, Bloomberg analyst Eric Balchunasnoted that such an occurrence isn’t unusual for the world’s largest asset manager. According to him, BlackRock is known for lining up and injecting big cash into new ETFs on the first day of trading. That way, it registers as volume for them.
Balchunas further noted that BlackRock’s Bitcoin ETF, seeing $2 billion of inflows, would shatter all records relating to first-day and week volume for an ETF. Interestingly, BlackRock already holds the record for the most successful ETF launch going by the amount of inflows recorded on day one.
The world’s asset manager further dominates the top 10 list of most successful ETF launches. Balchunas, however, clarified that those inflows were mainly lined up cash and not organic, as they were readily available before the ETF launched. He also mentioned that he got a second source to confirm Sigel’s claims that BlackRock has a big day one lined up.
Meanwhile, the Bloomberg analyst provided an update on when the approval order from the SEC was likely to come. Citing multiple sources, he stated that the SEC is lining up all issuers for a potential launch on January 11.
Featured image from Decrypt, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
BlackRock To Purchase $10 Million Worth Of Bitcoin
As part of efforts to seed its Spot Bitcoin ETF, BlackRock will purchase $10 million worth of BTC on January 5. The asset manager had earlier scheduled this Bitcoin purchase for January 3. However, it was eventually postponed to this later date, possibly in a bid to ensure they gain all regulatory approvals and be fully compliant.
BlackRock had revealed how the sum of $10 million had come about in the latest amendment to its S-1 filing. The world’s largest asset manager had noted that the said sum was proceeds from the sale of its “Seed Creation Baskets.” The firm initially seeded its ETF back in October, with the fund’s Seed Capital Investor purchasing $100,000 in shares.
Bloomberg analyst James Seyffart had previously warned that Blackrock’s plans to seed their ETF with this amount doesn’t mean they are launching just yet. However, he remarked that there was a possibility that the asset manager was doing so in anticipation of an imminent launch.
Meanwhile, it is also worth mentioning that BlackRock’s initial seed fund could eventually be outranked. Fellow issuer Bitwise revealed in their latest amendment to their Spot Bitcoin ETF that they could potentially seed their fund with up to $200 million if they eventually get approval from the SEC.
Bloomberg analyst James Seyffart recently shared his thoughts on whether or not an approval order was going to come from the SEC soon enough. According to Cointelegraph, Seyffart stated that there was no way the Commission could get issuers to withdraw their application as they are already backed into a corner.
The analyst made this comment following his assertion that the regulator has run out of reasons to deny these Spot Bitcoin ETFs. He alluded to the Grayscale case, where the court ruled that the SEC’s reasons for denying the asset manager’s application were insufficient. With this in mind, Seyffart said that the SEC is likely to approve these funds soon enough.
These approvals could come as soon as next week, going by the analyst’s projection. Seyffart stated that he expects an official approval order to come between January 8 and 10. This is despite the recent rumors that the SEC could approve these funds before this week runs out.
Featured image from Finextra Research, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
BlackRock disclosed JPMorgan Securities and Jane Street as intended participants for its proposed Bitcoin ETF before the SEC decision.
The asset management giant is set to collaborate with the participants, pending approval from the Securities and Exchange Commission (SEC).
Authorized participants play a crucial role in ETF operations, as they can create and redeem shares. This involves exchanging ETF shares for a corresponding basket of securities mirroring the fund’s holdings or opting for a cash exchange. The disclosure of these authorized participants is considered a pivotal step before the SEC decides.
JPMorgan CEO Jamie Dimon has previously advocated for a government ban on cryptocurrencies, citing concerns about their legitimacy. But with JPMorgan being an intended participant in the Bitcoin ETF, Dimon’s words contradict his previous statements.
Jamie Dimon says Bitcoin should be banned.
Now his bank JP Morgan has been named as an ‘Authorised Participant’ on BlackRock’s ETF application – the biggest name in funds management.
According to analysts from Bloomberg Intelligence, such as James Seyffart and Eric Balchunas, the SEC is poised to approve spot Bitcoin ETF proposals that commit to cash-only creations and redemptions, provided they have agreements with authorized participants. The likelihood of SEC approval stands at 90%, with expectations of some firms launching a spot Bitcoin ETF in early January.
BlackRock just dropped its updated S-1 and it DOES name the APs: Jane Street and JPMorgan (which is kinda ironic). Looks we have our first horse that at the starting gate. pic.twitter.com/H3UmaesygJ
As the SEC faces a Jan. 10 deadline for a decision on proposals by ARK Invest and 21Shares, market watchers anticipate potential developments in the emerging Bitcoin ETF landscape. Despite refilings by firms like ARK, 21Shares, and VanEck, authorized participants have yet to be named, signaling that firms may disclose this information when filing their effective prospectus, marking the final step before going live.
Grayscale Investments, in a June 2022 report, had previously indicated intentions to work with Jane Street and Virtu Financial if its Grayscale Bitcoin Trust (GBTC) converted to an ETF, but recent filings have not confirmed these participants.
Valkyrie names Cantor Fitzgerald, Jane Street as APs
In a recent update, Valkyrie filed another amended S-1 for their Bitcoin ETF, revealing Jane Street and Cantor Fitzgerald as their authorized participants. This move is significant, as it signals a potential floodgates opening in the Bitcoin ETF industry.
Arthur Hayes, co-founder of the BitMEX crypto exchange, is sounding the alarm regarding what he sees as possible dire outcomes of the pending regulatory approval of the spot Bitcoin exchange-traded fund (ETF).
The concern lies in traditional finance asset managers, such as BlackRock, potentially undermining Bitcoin (BTC) by dominating the spot Bitcoin ETF market.
In a blog post on Dec. 22, Hayes highlighted the risk of such firms holding “all the Bitcoin in circulation.” If that happens, he says, an over-successful ETF managed by traditional asset managers could ultimately lead to the decline of the cryptocurrency.
Hayes argues that BlackRock and similar entities “vacuum up assets, store them in a metaphorical vault, issue a tradable security, and charge a management fee for their ‘hard’ work.”
“They don’t use the things they hold on behalf of their clients, which presents a problem for Bitcoin if we take an extreme view of a possible future,” he added.
The public may then opt for Bitcoin ETF derivatives instead of buying and holding Bitcoin by themselves, impacting the use of the Bitcoin blockchain, Hayes says.
Hayes surmised a future where Bitcoin is merely stored in vaults, with miners no longer receiving income due to the lack of network use. This scenario, he warns, could lead to the network’s death and the disappearance of Bitcoin.
2024: A pivotal year
Hayes also pointed to Bitcoin’s 228% growth since 2020, where he claims it outperformed most traditional assets. This growth signifies BTC’s dominance as a hedge against fiat debasement, he adds.
BTC growth since 2020 compared to traditional assets. Source: Arthur Hayes
Hayes advised investors to avoid permission-based DeFi projects, tokenized real-world assets, and governance tokens tied to debt yields.
Before penning his latest blog post, Hayes had taken to social media to reveal that he had moved his investments from Solana (SOL) to Ether (ETH), despite having criticized Solana and even forecasting that the token could breach the $100 mark based on its current rally.
Fam … I have a confession to make.
I received a msg from the Lord while meditating. He said dump that Sam coin POS, and profess your love for Archangel Vitalik.
By shifting to ETH, Hayes appears to be bucking the trend, as Solana has outpaced Ether in performance during the current crypto market resurgence.
Nonetheless, Hayes anticipates that Ether will hit $5,000, surpassing its previous peak of $4,800 achieved in November 2021.
It’s worth noting that Hayes was previously critical of Solana, even expressing scathing reviews of the project when he acquired the tokens in November.
BlackRock revises spot Bitcoin ETF to enable easier access for banks
BlackRock has revised its spot Bitcoin exchange-traded fund (ETF) application to make it easier for Wall Street banks to participate by creating new shares in the fund with cash rather than just crypto. The new in-kind redemption “prepay” model will allow banking giants such as JPMorgan or Goldman Sachs to act as authorized participants for the fund, letting them circumvent restrictions that prevent them from holding Bitcoin or crypto directly on their balance sheets.
El Salvador expects to sell out Bitcoin ‘Freedom Visa’ by end of year
El Salvador’s National Bitcoin Office says its $1 million Freedom Visa program has already received hundreds of inquiries since its launch on Dec. 7 and expects it to sell out before the end of 2023. Launched by the local government in partnership with stablecoin issuer Tether, the Freedom Visa is a citizenship-by-donation program that grants a residency visa and pathway to citizenship for 1,000 people willing to make a $1 million Bitcoin or Tether donation to the country. The program is limited to 1,000 slots per calendar year.
Sam Bankman-Fried’s lawyer says FTX fraud trial was “almost impossible” to win: Report
The lawyer responsible for Sam “SBF” Bankman-Fried’s criminal trial defense has admitted that the case was “almost impossible” to win from the outset. During an interview, Stanford Law School professor David Mills said he recommended the legal defense of SBF admit to the allegations of witnesses and state prosecution and convince the jury that Bankman-Fried intended to save the company. Mills also disclosed that he had agreed to lend his expertise to Bankman-Fried’s defense at the behest of the FTX CEO’s parents, and described Bankman-Fried “as the worst person I’ve ever seen do a cross-examination.”
Yearn.finance pleads arb traders to return funds after $1.4M multisig mishap
Yearn.finance is hoping arbitrage traders will return $1.4 million in funds after a multisignature scripting error resulted in a large amount of the protocol’s treasury being drained. The error occurred while Yearn was converting its yVault LP-yCurve — earned from performance fees on vault harvests — into stablecoins on the decentralized exchange CoW Swap. Yearn suffered significant slippage when it received 779,958 DAI yVault tokens from the trade, resulting in a 63% drop in the liquidity pool value.
SEC pushes deadline for decision on Invesco Galaxy spot Ethereum ETF to 2024
The United States Securities and Exchange Commission has delayed its decision on whether to approve or reject a spot Ether ETF proposed by Invesco and Galaxy Digital. The companies filed the spot ETH ETF application in September. The proposed spot crypto investment vehicle is one of many being considered by the commission, which, to date, has never approved an ETF with direct exposure to Ether, Bitcoin or other cryptocurrencies.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $42,222, Ether (ETH) at $2,250 and XRP at $0.62. The total market cap is at $1.6 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Bonk (BONK) at 131.38%, WOO Network (WOO) at 78.34% and Helium (HNT) at 77.66%.
The top three altcoin losers of the week are Terra Classic (LUNC) at -15.84%, Sei (SEI) at -14.48% and Pepe (PEPE) at -12.10%.
‘No excuse’ not to long crypto: Arthur Hayes repeats $1M BTC price bet
Bitcoin and altcoins are a no-brainer bet in the current macro climate, Arthur Hayes says. In a post on X (formerly Twitter) on Dec. 14, the former CEO of exchange BitMEX said that investors have “no excuse” to short crypto.
Going long on crypto is the key to success as markets bet on the United States Federal Reserve lowering interest rates next year, Hayes argues. “At this point, there is no excuse not to be long crypto,” part of his post stated.
“How many more times must they tell you that the fiat in your pocket is a filthy piece of trash,” he wrote. Hayes further reiterated a longstanding $1 million BTC price prediction as a result of macro tides eroding the value of national currencies.
FUD of the Week
Ledger patches vulnerability after multiple DApps using connector library were compromised
The front end of multiple decentralized applications using Ledger’s connector were compromised on Dec. 14. Ledger announced that it had fixed the problem three hours after the initial reports about the attack. Protocols affected include Zapper, SushiSwap, Phantom, Balancer and Revoke.cash, stealing at least $484,000 in digital assets. The attacker utilized a phishing exploit to gain access to the computer of a former Ledger employee. The hack sparked criticism about Ledger’s security approach.
Bitcoin inscriptions added to US National Vulnerability Database
The National Vulnerability Database flagged Bitcoin’s inscriptions as a cybersecurity risk on Dec. 9, calling attention to the security flaw that enabled the development of the Ordinals Protocol in 2022. According to the database records, a datacarrier limit can be bypassed by masking data as code in some Bitcoin Core and Bitcoin Knots versions. As one of its potential impacts, the vulnerability could result in large amounts of non-transactional data spamming the blockchain, potentially increasing network size and adversely affecting performance and fees.
SafeMoon falls 31% in five hours after filing for Chapter 7 bankruptcy
The token of decentralized finance protocol SafeMoon has fallen 31% in five hours after the company behind it filed for bankruptcy. SafeMoon officially applied for Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” on Dec. 14. The latest blow comes only a month after the U.S. Securities and Exchange Commission charged SafeMoon and its executives with violating securities laws in what the regulator described as “a massive fraudulent scheme.” Several former SafeMoon supporters expressed frustration on Reddit regarding the bankruptcy, alleging they were rug-pulled by the SafeMoon developers.
In their latest meeting, SEC and BlackRock reportedly discussed the iShares Bitcoin ETF on Dec. 14, raising questions about in-kind transactions.
Unlike previous meetings, James Seyffart, a Bloomberg Intelligence analyst, reports that there were no presentations.
As part of a follow-up thread on X, Seyffart reminds the community that Hashdex, another firm in the spot Bitcoin ETF race, had also engaged with SEC’s Office of the Chair.
After this, a community member asked Seyffart about the likelihood of SEC approval, given Chairman Gary Gensler’s comment on listening to the courts from yesterday.
I mean. We’ve been at 90% odds since October when people told us we were insane for thinking it was gonna happen!! haha. Now people want us to increase the odds. But yes — we think its happening. https://t.co/bLO8qcchj3
“Yes – we think it’s happening,” was the Bloomberg analyst’s response.
The application had been revised following a third meeting between BlackRock representatives and the SEC led by Gensler on Dec. 11, with prior engagements occurring on Nov. 20 and 28.
The SEC still must hold to the deadline of Jan. 15 to make a decision on BlackRock’s application, with a final cutoff on Mar. 15. Grayscale, Bitwise, VanEck, WisdomTree, Invesco Galaxy, Fidelity, and Hashdex are also awaiting the SEC’s decision.
Asset manager BlackRock has updated its application to launch the first-ever spot Bitcoin ETF in U.S.
The document appeared on the website of the U.S. Securities and Exchange Commission (SEC). Bitwise has also updated its application to launch a similar tool.
Analysts believe the action signals that the SEC is continuing discussions with the market about opportunities to approve a spot Bitcoin ETF.
What does this mean? Without having read them — it just means that the wheel is still turning. Both the SEC and these issuers are working hard to iron things out. These filings are likely the result of many conversations and a lot of man hours on/between both sides.
The updates could be a step that allowed companies to “tailor” applications to the regulator’s requirements.
BlackRock’s updated document included new language about the efforts the trust administrator will make to monitor unusual price movements. It also added anti-money laundering compliance language and included a verified PricewaterhouseCoopers statement.
Bloomberg analysts expect approval of a spot Bitcoin ETF in the U.S. in January 2024. James Seyffarth and Eric Balchunas believe there is a 90% chance of a spot Bitcoin ETF being approved before January 10, 2024, the day by which the SEC must make a final decision on ARK Invest’s application.
The Bitcoin price rose to $38.475 yesterday, marking a marginally higher high for the year. Nevertheless, the price did not manage to close the day above the important $38,000 mark. Shortly before the end of the day, the bears managed to push the price down again.
As crypto analyst Daan Crypto Trades remarked, “Market does its best to shake out everyone trying to pre-position for a possible Bitcoin ETF approval. It’s just free liquidity for the MMs/Whales. Sweep highs, trap longs, squeeze out longs, bait shorts, front run lows and repeat the whole process.”
Bitcoin price | Source: X @DaanCrypto
BlackRock Argues With SEC Over Details Of Spot Bitcoin ETF
In a notable development, BlackRock, the world’s largest asset manager, has been again actively engaged in discussions with the US Securities and Exchange Commission (SEC) concerning the structure of its spot ETF yesterday.
Eric Balchunas, senior ETF analyst at Bloomberg, revealed, “BlackRock met with the SEC’s Trading & Markets division again yesterday and presented them with a ‘revised’ in-kind model design based on Staff’s comments at their 11/20 meeting.” This revised model includes a notable change in the process, specifically at ‘Step 4’, which is the offshore entity market maker acquiring Bitcoin from Coinbase and then pre-paying in cash to the US registered broker dealer who is not allowed to touch BTC.
James Seyffart, another Bloomberg analyst, highlighted the ongoing negotiations, adding, “More confirmation that Issuers are still meeting with the SEC. BlackRock/Nasdaq still pushing for In-Kind creation & redemption. Seems like SEC hasn’t budged on cash creates demands if this was the primary focus of the meeting. At least not before yesterday, Interesting days ahead!”
The original “In-Kind Redemption” flow had Market Maker’s Broker/Dealer entity (MM-BD) placing an order for redemption through the Authorized Participant (AP), who approves the order, allowing MM-crypto to borrow Bitcoin (or cash) to sell short. This redemption flow had potential balance sheet impacts and risks that the SEC was concerned about.
BlackRock has now proposed a “Revised In-Kind (‘Prepay Model’)” Redemption flow. This new model involves MM-crypto delivering cash to MM-BD instead of Bitcoin, and MM-BD then delivers ETF shares to the Transfer Agent via API. The Bitcoin custodian is instructed by the issuer to transfer Bitcoin to MM-crypto, who then closes the short position in BTC.
The benefits of this revised model are manifold. It aims to lower transaction costs and shifts the execution risks from investors to crypto market makers. It also claims to provide superior resistance to market manipulation and remove the need for issuers to finance or pre-fund sell trades. The reduction in risks of operating events and the simplification across the ecosystem could mean lower variance on how In-kind models can be executed versus cash models.
BlackRock’s Bitcoin ETF structure “in-kind” | Source: X @EricBalchunas
90% Odds Of Approval Remain
Should the SEC approve this revised model, it could herald the introduction of the first US-based spot Bitcoin ETF, a significant milestone that would allow investors to gain direct exposure to Bitcoin rather than through derivative instruments like futures. Despite these developments, there remains a level of uncertainty surrounding the SEC’s stance on the matter, particularly regarding the implications of spot Bitcoin exposure for retail investors through an ETF.
Recent leaks suggested the SEC might prefer cash creation processes over in-kind Bitcoin transfers, a move that could significantly alter the landscape for ETF issuers and broker-dealers dealing with Bitcoin. Nonetheless, Bloomberg’s ETF analysts have reiterated their 90% odds for a spot ETF approval by January 10 yesterday.
US officials announce $4.3B settlement with Binance, plea deal with CZ
Binance and its co-founder, Changpeng “CZ” Zhao, have reached a settlement over criminal and civil cases with the United States Department of Justice. CZ will plead guilty to one felony charge as part of the negotiated agreement. Attorney General Merrick Garland announced the settlement, claiming Binance’s policies allowed criminals involved in illicit activities to move “stolen funds” through the exchange. As part of the settlement, CZ announced on X (formerly Twitter) that he had stepped down as CEO and that Binance’s global head of regional markets, Richard Teng, will assume the position. He added he was “proud to point out” that U.S. officials didn’t allege that Binance misappropriated funds or manipulated markets. CZ was released on bail and is battling government efforts to bar his return to the United Arab Emirates to be with his family. His sentencing is scheduled for February.
BlackRock met with SEC officials to discuss spot Bitcoin ETF
Representatives from BlackRock and Nasdaq met with the U.S. Securities and Exchange Commission (SEC) to discuss the proposed rule allowing the listing of a spot Bitcoin exchange-traded fund (ETF). BlackRock provided a presentation detailing how the firm could use an in-kind or in-cash redemption model for its iShares Bitcoin Trust. Many reports have suggested the SEC could be nearing a decision on a spot BTC ETF for listing on U.S. markets. SEC officials also met with Grayscale representatives this week to discuss the listing of a Bitcoin ETF. BlackRock is one of many firms with spot crypto ETF applications in the SEC pipeline awaiting a response, including Fidelity, WisdomTree, Invesco Galaxy, Valkyrie, VanEck and Bitwise.
Bitcoin user pays $3.1M transaction fee for 139 BTC transfer
A Bitcoin user paid $3.1 million in fees for transferring 139.42 BTC. The transaction fee is the eighth-highest in Bitcoin’s 14-year history. A wallet address tried transferring 139.42 BTC only to pay more than half the actual value of the transaction fee. The destination address received only 55.77 BTC. The mining pool Antpool captured the absurdly high mining fee on block 818087. This is the largest Bitcoin transaction fee ever paid in dollar terms, knocking off Paxos’s September transfer of $500,000.
SEC sues Kraken alleging it’s an unregistered exchange, mixes user funds
The U.S. Securities and Exchange Commission has sued Kraken, alleging it commingled customer funds and failed to register with the regulator as a securities exchange, broker, dealer and clearing agency. Additionally, the SEC alleged Kraken’s business practices and “deficient” internal controls saw the exchange commingle up to $33 billion worth of customer assets with its own. The SEC said this resulted in a “significant risk of loss” for its clients. In a follow-up blog post, Kraken said the SEC’s commingling accusations were “no more than Kraken spending fees it has already earned,” and the regulator doesn’t allege any user funds are missing.
Appeals court rejects Sam Bankman-Fried’s bid for release
Sam Bankman-Fried will stay jailed after failing to convince a United States appellate court that he should be freed while his legal team appeals his conviction. Government prosecutors accused Bankman-Fried of leaking Caroline Ellison’s journals to The New York Times in July, which caused his bail to be revoked by a New York District Court. Bankman-Fried was found guilty of seven fraud and money laundering-related charges on Nov. 2. The former FTX CEO will remain behind bars while he awaits his sentencing on March 28 next year.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $37,710, Ether (ETH) is at $2,079, and XRP is at $0.62. The total market cap is at $1.43 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Blur (BLUR) at 99.25%, FTX Token (FTT) at 39.05% and KuCoin Token (KCS) at 24.82%.
The top three altcoin losers of the week are Celestia (TIA) at -19.89%, ORDI (ORDI) at -17.63% and THORChain (RUNE) at -15.53%.
“We, the employees of OpenAI, have developed the best models and pushed the field to new frontiers, [but] the process through which you terminated Sam Altman […] has jeopardized all of this work and undermined our mission and company.”
‘Enjoy sub-$40K Bitcoin’ — PlanB stresses $100K average BTC price from 2024
Bitcoin buyers should enjoy the chance to add to their stack below $40,000, according to PlanB, pseudonymous creator of the stock-to-flow family of BTC price models. He believes Bitcoin will rise much higher than its recent 18-month highs.
Bitcoin bear market bottoms are characterized by the spot price dipping below the realized price, while bull markets begin once the spot crosses the two-year and five-month realized price levels. BTC/USD is now once again above all three realized price iterations.
“Enjoy sub-$40k bitcoin … while it lasts,” PlanB commented on an accompanying chart.
Asked whether the market should expect lower levels from here, PlanB would not be drawn, saying that he simply expected an average BTC price of at least $100,000 between 2024 and 2028 — Bitcoin’s next halving cycle.
FUD of the Week
HTX to restore services ‘within 24 hours’ after $30M hack
Crypto exchange HTX, formerly known as Huobi Global, resumed deposits and withdrawals within 24 hours after suffering a $30 million exploit on Nov. 22. The exploit was reported to be $13.6 million around the time of the incident, but has since increased in value. HTX’s hot wallets were compromised alongside a coordinated $86.6 million attack against the HTX Eco (HECO) Chain bridge, consisting of HTX, Tron and BitTorrent. The company has promised to fully compensate users for any losses incurred as a consequence of the hack.
CZ an ‘unacceptable risk of flight,’ should stay in US: DOJ
United States prosecutors are trying to stop former Binance boss Changpeng “CZ” Zhao from leaving the country, expressing concern about his potential flight risk. The government requested a review and overturn of a judge’s decision that would allow Zhao to return to his home in the United Arab Emirates (UAE) on a $175 million bond under the condition that he returns to the U.S. two weeks before his February 2024 sentencing. In a proposed order, prosecutors wrote that Zhao “presents an unacceptable risk of flight,” arguing that his ties and favored status in the UAE, along with the country’s lack of an extradition treaty with the U.S., are reasons to block him from leaving the country.
KyberSwap hacker offers $4.6M bounty for return of $46M loot
The decentralized exchange KyberSwap has offered a 10% bounty reward to the hacker who stole $46 million on Nov. 22 and left a note of negotiation. The exchange wants 90% of the loot returned. The hacker made away with roughly $20 million in Wrapped Ether, $7 million in wrapped Lido-staked Ether and $4 million in Arbitrum tokens. The hacker then siphoned the loot across multiple chains, including Arbitrum, Optimism, Ethereum, Polygon and Base.
This is your brain on crypto: Substance abuse grows among crypto traders
According to some addiction experts, the high-stress atmosphere of cryptocurrency trading can provide a perfect environment for substance abuse.
Michael Saylor’s a fan, but Frisby says bull run needs a new guru: X Hall of Flame
Bitcoin enthusiast Dominic Frisby has a wild journey, from penning one of the first-ever Bitcoin books to plastering “Bitcoin fixes this” on the Bank of England.
6 Questions for Alex O’Donnell about financial journalism and the future of DeFi
