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Tag: sec

  • SEC Faces Sanctions in Court Over Another Crypto, Files for Dismissal

    SEC Faces Sanctions in Court Over Another Crypto, Files for Dismissal

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    DEBT Box, a company that primarily provides users of its services with crypto mining software, was taken to court last year by the SEC.

    According to the regulator, DEBT Box had defrauded investors to the tune of $50 million by selling unregistered securities. The company, which provides an ecosystem to go along with its software, has its own token, DEBT, to facilitate payments across the ecosystem. However, it is a tool used primarily for the transfer of assets in-house.

    Assets Frozen Erroneously

    Back in August, the SEC asked the court to freeze DEBT Box’s assets, claiming that the company was putting users’ funds at risk due to “proof” of a $720k transfer to foreign bank accounts.

    Additionally, the request was filed ex parte, meaning that DEBT Box was not made aware and, therefore, could not challenge it in court. The agency motivated this by stating that the firm’s lawyers were attempting to stop the SEC’s request, which is sort of what lawyers are hired to do.

    Although the asset freeze was granted, new evidence later came to life, proving that the asset transfer in question was actually done domestically. The asset freeze was lifted, and DEBT Box lawyers wasted no time in requesting a dismissal of the case a few days later.

    However, the SEC has since come forward with their own request for dismissal, requesting lighter sanctions than the ones requested by the defendant.

    Prejudice Should Not Apply

    The SEC’s lawyers have been hit with a request to Show Cause, meaning that they must justify themselves before the court or face penalties.

    According to Fortune, the SEC argued that the false evidence had not been provided maliciously and was based on a YouTube video made and posted by one of the defendants in the case.

    “While the Commission recognizes that its attorneys should have been more forthcoming with the Court, sanctions are not appropriate or necessary to address those issues. Significantly, the Commission is continuing to take steps to address the issues the Court identified and to identify any other issues that may warrant further consideration.”

    Due to the error which the SEC claims was unintentional, the regulator requests that the harsh penalties requested by the defendant be denied – although they agree that the case should be dismissed.

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    Cristian Lipciuc

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  • Analyst: Forget Bitcoin Hitting $70,000, Prices Must First Fall To This Key Support Level

    Analyst: Forget Bitcoin Hitting $70,000, Prices Must First Fall To This Key Support Level

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    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).

    Bitcoin price trending sideways on the daily chart | Source: BTCUSDT on Binance, TradingView
    Bitcoin price trending sideways on the daily chart | Source: BTCUSDT on Binance, TradingView

    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
    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.



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    Dalmas Ngetich

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  • Binance vs. SEC: Judge shows skepticism on BUSD as investment contract

    Binance vs. SEC: Judge shows skepticism on BUSD as investment contract

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    The highly anticipated hearing of the SEC’s lawsuit against Binance occurred today in Washington, as the trial revealed several challenges for the leading exchange.

    Last year, the SEC accused Binance and its U.S. arm of multiple violations, including inflating trading volumes, misusing customer funds, and misleading investors about market controls, further complicating the crypto regulatory landscape.

    In presiding over the case, Judge Berman Jackson took a direct approach, bypassing prepared arguments and asking incisive questions. Her skepticism about the necessity of a contract in an investment contract, drawing on the “scheme” language from the landmark Howey case, set a critical tone for the proceedings. 

    Judge Jackson expressed doubts over the major questions doctrine and the fair notice arguments presented by the SEC, highlighting the ongoing debate around the extent of the SEC’s authority versus that of the Commodity Futures Trading Commission (CFTC).

    The Binance case, distinct from the Coinbase scenario, raised unique issues. Judge Jackson’s skepticism regarding the BUSD stablecoin being offered as an investment contract was evident. However, she seemed more open to the argument that Binance’s BNB token might have initially been offered as an investment contract. This led to a broader discussion about the status of tokens on secondary markets, challenging the SEC’s position that a token perpetually embodies an investment contract.

    The court session ended without a clear resolution on the SEC’s jurisdiction over tokens like Filecoin, leaving out mentioning other major tokens such as Cardano or Solana. The judge resisted conducting mini-trials for each token mentioned in the complaint, especially when their issuers were not part of the case.

    As the legal battle unfolds, its outcomes are set to shape the future of cryptocurrency regulation, with the world watching closely.


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    Mohammad Shahidullah

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  • Bitcoin Spot ETFs Approved After 14 Years- The Journey So Far

    Bitcoin Spot ETFs Approved After 14 Years- The Journey So Far

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    The year 2024 marks the dawn of a new era, not just for technology but for finance, as a major victory was achieved for Bitcoin Spot ETFs (Exchang-Traded Funds). It’s now the era where the past will be appreciated for its foresight and doggedness. 

    When the pioneer cryptocurrency and digital currency, Bitcoin launched in January 2009, it was nothing like a real-world asset or of an ‘agreed’ digital value, but an almost neglected bag of gold as it faced enough rejection from all phases. Even with Satoshi’s Whitepaper, Bitcoin wasn’t given a cordial welcome in the world of finance.

    However, for all its promise, BTC remained shrouded in an air of mystery and skepticism. It took several years for Bitcoin to cement its value in the world of technology, finance, and the digital economy, assuming a giant role amidst many other cryptocurrencies. 

    However, On January 10, 2024, the SEC, in its official filing, approves all 11 Bitcoin Spot ETFs. This long-awaited green light from the US SEC marked a watershed moment, not just for Bitcoin, but for the entire cryptocurrency industry. 

    The 14-year journey to this point was arduous and paved with skepticism; regulatory hurdles loomed large, with the SEC citing concerns about market manipulation and investor protection as justification for repeated rejections. Attempts like Bitcoin futures ETFs offered limited exposure, failing to capture the true essence of a spot ETF’s direct price tracking. 

    Bitcoin Spot ETF Explained

    The recent approval of Bitcoin spot ETFs has stirred excitement across the financial landscape. But what exactly are these instruments, and what impact will they have on the future of BTC and, more broadly, on the investment landscape?

    Bitcoin “Spot” ETFs (exchange-traded funds), unlike their futures-based counterparts, don’t track the price of Bitcoin futures contracts. Instead, they take a more direct approach, holding the underlying asset – Bitcoin itself – in secure digital custodians. 

    This eliminates the potential for “basis risk,” a phenomenon where futures prices deviate from the actual cash price of Bitcoin. Simply put, Spot ETFs offer a more straightforward and transparent way to gain exposure to BTC’s price movements, akin to traditional gold-backed ETFs.

    Bitcoin Spot ETFs function similarly to their traditional counterparts, such as those tracking stock market indices. They pool investor capital, purchasing Bitcoin and holding it securely. Each share of the ETF represents a fractional ownership of the pooled Bitcoin, allowing investors to participate in the market without directly holding or managing the cryptocurrency themselves. This eliminates technical complexities and potential security risks, particularly for those with limited crypto experience, potentially broadening the base of Bitcoin investors. 

    The Genesis Of Bitcoin ETFs (Early Days and Conceptualization – 2013-2017)

    The earliest sparks of a Bitcoin ETF concept date back to 2013, when the Winklevoss twins first proposed their Gemini ETF. Winklevoss twins, Cameron and Tyler, both tech entrepreneurs with a vision in 2013, submitted the first application for a Bitcoin ETF, the Gemini ETF, sparking the decade-long journey to regulatory approval. 

    This audacious proposal was outrightly rejected by the SEC during the tenure of its former chairman, Jay Clayton, who later resigned in 2020 and became a supporter of cryptocurrency. Interestingly, Clayton is now actively involved in crypto regulations when he joined the advisory board of Fireblocks, a crypto custody platform.

    The following years were a crucible of innovation and uncertainty. While Bitcoin’s market capitalization surged, attracting both fervent supporters and cautious observers, the SEC remained hesitant. The regulator’s concerns about market manipulation, price volatility, and the nascent state of blockchain technology were cited as justifications for repeated rejections of subsequent ETF proposals, including Grayscale’s attempt to convert its Bitcoin Investment Trust into a spot ETF.

    Yet, amidst the rejections, there were flickers of progress. Technological advancements improved blockchain security and custody solutions, addressing initial concerns about vulnerability and potential wash trading. The global adoption of Bitcoin, particularly in Canada with its approval of Spot ETFs in 2021, served as a compelling case study for increased accessibility and market stability.

    This period also saw the SEC’s stance slowly evolve. The appointment of Gary Gensler as SEC Chair in 2021 brought a newfound openness to dialogue and exploration of potential regulatory frameworks for cryptocurrencies. The approval of the first US-listed futures-based bitcoin ETF in October 2021, despite its limitations, offered a glimpse of what could be.

    The Turning Point: A Decade Of Persistence Pays Off (2018-2023)

    While the 2017-2018 crypto boom and subsequent crash sent shockwaves through the industry, it also served as a crucible, forging resilience and fueling a renewed focus on compliance and innovation. Industry figures like Grayscale, undeterred by previous rejections, continued to refine their proposals, incorporating crucial safeguards and addressing regulatory concerns.

    This relentless pursuit of approval finally yielded results in 2023. In May, Cathie Wood’s ARK Investments filed for a spot bitcoin ETF, setting a definitive deadline for the SEC’s decision. 

    Then, in June, BlackRock’s entry into the arena with its own Spot Bitcoin ETF application sent ripples of excitement through the financial world. This move by a traditional financial giant signalled a crucial shift in sentiment, demonstrating growing institutional confidence in BTC’s potential.

    The months that followed were a whirlwind of activity. A flurry of applications from firms like Fidelity and Invesco poured in, fueled by the momentum of BlackRock’s move and the prospect of imminent approval. In August, a pivotal legal victory for Grayscale in the D.C. Circuit Court further strengthened the case for spot ETFs, forcing the SEC to re-examine its previous rejections.

    Finally, the SEC, in a historic decision, greenlighted 11 spot bitcoin ETF proposals, including those from BlackRock, Fidelity, and VanEck. This moment marked the culmination of a decade-long struggle, signifying the mainstream acceptance of investor participation in the cryptocurrency space.

    Ripples Across The Crypto Landscape: Implications Of Bitcoin Spot ETFs (2024)

    The arrival of spot ETFs has cast a wide net, sending ripples across various spheres of the financial world. There are a lot of potentials and challenges presented by spot ETFs, vital impact on market stability, institutional adoption, and regulatory oversight. There are positive predictions that the Bitcoin market cap could rise above $1 Trillion after the launch of Bitcoin Spot ETFs.

    Let’s contemplate the broader significance of this pivotal moment, what it means for the future of finance, and its relationship between technology and traditional financial systems here.

    Investor Crossroads

    For retail investors, Spot ETFs offer a convenient and familiar way to participate in the Bitcoin market without directly holding the cryptocurrency. This opens the door to broader adoption and increased liquidity, potentially leading to smoother price discovery and reduced volatility. The influential American magazine, Forbes predicted the BTC price will trade as high as $80,000 as a result of Bitcoin Spot ETFs’ approval. 

    The year 2024 is also shaping up to be a good one, if not one of the best seasons for cryptocurrency, especially Bitcoin, as it’s the season for Bitcoin halving, which will have another mega impact on the crypto industry. 

    However, the inherent risks of Bitcoin, including price fluctuations and potential exposure to fraud, must not be underplayed. Investors should approach spot ETFs with cautious optimism, ensuring a proper understanding of the technology, market dynamics, and associated risks before venturing in.

    Institutional Embrace Bitcoin

    The arrival of spot ETFs marks a significant step towards institutional acceptance of Bitcoin. The involvement of established financial institutions like BlackRock and Fidelity lends credibility to the cryptocurrency and paves the way for further integration with traditional financial products and services.

    Concerns remain about the impact of institutional involvement on market manipulation and potential conflicts of interest. However, regulatory oversight and robust compliance frameworks will be crucial in ensuring a fair and transparent market for all participants.

    Market Redefined

    Spot ETFs could potentially lead to greater market stability by introducing institutional investors and their risk management expertise. This could mitigate some of the inherent volatility of the cryptocurrency market, attracting a wider range of investors and fostering sustainable growth.

    The SEC’s approval represents a cautious acceptance, not a blank check. Further regulatory clarity and potential adaptation of existing frameworks might be required to effectively address the unique challenges posed by the integration of cryptocurrencies into mainstream financial systems.

    Beyond Bitcoin

    Spot ETFs could act as a gateway for investors to explore the broader crypto landscape. Their familiarity and ease of access might encourage exploration of other promising blockchain-based projects, accelerating the overall growth and development of the cryptocurrency ecosystem.

    The success of spot ETFs will hinge on the continued evolution of blockchain technology and associated infrastructure. Scalability, security, and user experience will remain key areas of focus for ensuring the smooth functioning and widespread adoption of crypto-based financial products.

    The 11 Spot Bitcoin ETFs products (with their ticker symbols) approved  on January 10, 2024, are:

    • Blackrock’s iShares Bitcoin Trust (IBIT)
    • ARK 21Shares Bitcoin ETF (ARKB)
    • WisdomTree Bitcoin Fund (BTCW)
    • Invesco Galaxy Bitcoin ETF (BTCO)
    • Bitwise Bitcoin ETF (BITB)
    • VanEck Bitcoin Trust (HODL)
    • Franklin Bitcoin ETF (EZBC)
    • Fidelity Wise Origin Bitcoin Trust (FBTC)
    • Valkyrie Bitcoin Fund (BRRR)
    • Grayscale Bitcoin Trust (GBTC)
    • Hashdex Bitcoin ETF (DEFI)

    Conclusion

    The approval of Bitcoin spot ETFs is a watershed moment, not just for the cryptocurrency itself, but for the entire financial landscape. It marks a new chapter in the saga of Bitcoin, one where its disruptive potential can be harnessed within the framework of established financial systems.

    Also, this path forward is paved with both opportunities and challenges. Navigating regulations and addressing investor risk concerns are important to ensure seamless integration with traditional financial systems and regulatory bodies, which will be crucial in determining the ultimate success of this technological leap.

    Final Thoughts

    The approval of Bitcoin spot ETFs is not merely a regulatory green light; it’s a resounding declaration of Bitcoin’s arrival on the main stage of finance.

    Related Reading: Celestia Network: How To Stake TIA And Position For 5-Figure Airdrops

    However, the journey is far from over. This approval is a milestone, not a destination. As we stand at this turning point, it’s important to remember the spirit of defiance that birthed BTC. It was born from a desire for autonomy, for freedom from centralised control, and for a more equitable financial system. 

    While ETFs offer a bridge between this decentralized world and the established financial order, it’s crucial not to lose sight of these core principles.

    BTC price struggles post-Bitcoin Spot ETF approval | Source: BTCUSD on Tradingview.com

    Featured image from Cryptopolitan, 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.

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    Scott Matherson

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  • Coinbase Lawsuit: Federal Judge Blasts SEC During First Oral Arguments

    Coinbase Lawsuit: Federal Judge Blasts SEC During First Oral Arguments

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    The first round of oral arguments between Coinbase and U.S. regulators during their major legal war has come to a close.

    The result? No immediate rulings – but the judge overseeing the case found herself impressed with Coinbase’s understanding of the issues and technologies at hand.

    Coinbase VS SEC on Staking

    Judge Katherine Polk Failla began Wednesday’s hearing by crediting the “DeFi people” for filing a “really fine” amicus brief on behalf of Coinbase months ago, which explained blockchain staking “arguably better” than the Securities and Exchange Commission (SEC) had previously done.

    In its August amicus, the DeFi education fund argued that Coinbase’s staking as a service product does not qualify as an unregistered security – one of the SEC’s core allegations from its 100-page lawsuit against the crypto exchange last June.

    It explained that Coinbase’s role in staking provision was “purely ministerial” and akin to an IT service provider. Thus, it doesn’t meet the four prongs of the Howey Test – the SEC’s near-century-old legal standard for identifying investment contracts.

    Coinbase and other crypto industry leaders often argue that the Howey Test is an outdated standard with which to govern the crypto industry.

    Is ‘Howey’ Outdated?

    Judge Failla referenced such arguments during questioning, asking the SEC’s lawyer why she shouldn’t consider similar arguments from Cynthia Lummis – a crypto-supportive Republican senator.

    “She’s not just a random Senator, she’s someone deeply involved in the space. Why is she wrong?” asked the Judge.

    Paraphrasing Lummis’s position on the Howey Test, Failla added:

    “We’ve had a good run. We’ve had 90 years where these securities laws have been able to apply to these markets. But now we have something new.”

    Broadly speaking, Coinbase spent the five-hour hearing arguing that the SEC is using an overbroad interpretation of Howey and that none of the 12 tokens on Coinbase’s platform that the agency alleges are securities are as such. The company’s lawyer stated.

    “I think there would have been a lot of surprise in the 1933/1934 Congress to find an investment contract didn’t have anything to do with a contract at all.”

    According to Fox Business journalist Eleanor Terret on X, lawyers claim that Failla should take roughly 2 to 6 weeks to determine if the case should be dismissed, or enter deep legal water as with the agency’s 3.5-year lawsuit against Ripple Labs.

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    Andrew Throuvalas

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  • Bitcoin Steals the Show With 98% of Weekly Inflows, Solana Trails Behind: CoinShares

    Bitcoin Steals the Show With 98% of Weekly Inflows, Solana Trails Behind: CoinShares

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    Digital asset investment products experienced a $1.18 billion increase in inflows last week, according to CoinShares. This figure, however, did not surpass the previous high set in October 2021 when futures-based Bitcoin ETFs garnered a total of $1.5 billion.

    The latest edition of “Digital Asset Fund Flows Weekly Report” further revealed that the trading volumes for Exchange-Traded Products (ETPs) did break records by reaching $17.5 billion last week, marking the highest recorded level. This significantly surpassed the 2022 weekly average of $2 billion.

    CoinShares’ estimatest suggests that the trading volumes constituted almost 90% of the daily trading volumes on reputable exchanges last Friday, a noteworthy deviation from the typical range of 2%-10%.

    Bitcoin’s Unrivaled 98% Inflows, Solana Sees Decline

    After an impressive streak, Solana amassed only $0.5 million in inflows over the past week, indicating a current preference among investors for products linked to the leading crypto assets.

    Interestingly, Solana’s inflow was lower than those of Cardano and Litecoin, which attracted $1.4 million and $0.8 million, respectively. As such, Bitcoin continued to dominate funds with a whopping $1.16 billion in weekly inflows and 98% of the total inflows. This also represented a significant 3% of total assets under management (AuM).

    Short-bitcoin also registered minor inflows totaling $4.1 million, the report revealed.

    During the same period, Ethereum experienced total inflows amounting to $26 million, while XRP saw inflows of $2.2 million. Polkadot, on the other hand, settled with a modest $0.2 million in weekly inflows.

    US Dominates Inflows

    The approval from the Securities and Exchange Commission for the first-ever spot Bitcoin ETF was a watershed moment for crypto. Amidst such a heightened level of excitement, the United States took the lead as anticipated, with a substantial influx of $1.24 billion recorded last week.

    In a notable development, Switzerland also witnessed significant activity, observing inflows totaling $21 million.

    CoinShares’ Head of Research, James Butterfill, asserted that the outflows observed in Europe and Canada, amounting to $44 million in the latter, $27 million in Germany, and $16 million in Sweden, may be attributed to basic traders seeking to transition from those markets to the United States.

    Meanwhile, blockchain equities saw substantial inflows amounting to $98 million, contributing to a cumulative total of $608 million in inflows over the past seven weeks.

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    Chayanika Deka

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  • SEC assents to Do Kwon, Terra trial delay until April 15

    SEC assents to Do Kwon, Terra trial delay until April 15

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    The U.S. Securities and Exchange Commission is unopposed to delaying Terra’s crypto fraud trial and instead open to waiting till Terraform co-founder Do Kwon is extradited.

    Federal prosecutors filed two court arguments for the trial of Do Kwon and his blockchain startup Terraform Labs over the $40 billion collapse of TerraLuna (LUNC) and TerraUSD (UST) in May 2022.

    The SEC agreed to a “modest adjournment” of the Terraform case until mid-April while proceedings over Kwon’s extradition continue in Montenegro. The U.S. Securities and Exchange Commission (SEC) also argued against separate trials for Kwon and Terraform since the cases are commingled. 

    Kwon’s lawyers had sought court approval to delay Terra’s trial until Mar. 18 so the former crypto tycoon could attend the trial. His lawyers disclosed that Kwon would not file for a second extension if the defendant could not meet the court’s new date.

    Meanwhile, the ex-tech billionaire reportedly filed another appeal to overturn a Montenegro High Court’s ruling upholding extradition requests from his native South Korea and the U.S. where he faces charges.

    According to his attorneys, the High Court’s verdict ignored a bilateral extradition treaty with America and the European Convention on Extradition. Kwon had previously won an appeal against the extradition requests in November last year. However, the High Court in Podgorica, where Kwon was arrested, reinstated its ruling weeks later in December. 

    Do Kwon and Terraform are accused of misleading users and investors about the stability of UST, an algorithmic stablecoin pegged to the U.S. dollar. UST could not maintain its promised $1 price, leading to an implosion within Terra’s ecosystem. 

    Terra’s crash would eventually precede a domino of bankruptcies and the start of 2022’s crypto winter.


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    Naga Avan-Nomayo

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  • Here's a Timeline of Events Leading to Spot Bitcoin ETF Approval in The US

    Here's a Timeline of Events Leading to Spot Bitcoin ETF Approval in The US

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    Earlier this week, a long wait for the launch of a spot Bitcoin exchange-traded fund (ETF) in the United States ended after the Securities and Exchange Commission (SEC) approved 11 products for listing and trading on several national exchanges.

    The journey began ten years ago, and there are industry participants who laid the foundation for the SEC’s decision, which now represents a major step toward legitimizing the crypto asset class.

    The First Application and Rejection

    In 2013, Cameron and Tyler Winklevoss, co-founders of the crypto exchange Gemini, applied with the SEC to launch a spot Bitcoin ETF for the first time. The same year, crypto asset management firm Grayscale Investments launched its Bitcoin Investment Trust (GBTC), an open-ended private Bitcoin trust.

    After several adjustments to their application, the SEC rejected the Winklevoss twins’ request in 2017 on the grounds that bitcoin markets were not mature enough. Within the same period, Grayscale, which had filed with the Commission to convert GBTC into a spot Bitcoin ETF the year before, withdrew its application, citing underdevelopment of the regulatory environment.

    The Winklevoss brothers went on to file a second application for a Bitcoin ETF in 2018 but encountered another rejection from the SEC within a month. At the time, the agency said BTC markets were prone to manipulation.

    The Grayscale Court Ruling

    Two years later, Grayscale transformed GBTC into an SEC-reporting entity with its shares trading on pink sheets, asset manager VanEck filed a proposal with the SEC to launch a spot Bitcoin ETF, and rival firm Bitwise withdrew an application filed in 2019 for a similar product.

    In 2021, Bitwise filed another request, the SEC rejected VanEck’s proposal, and Gary Gensler replaced Jay Clinton as SEC chair. The same year, Grayscale filed another application with the SEC, but the agency approved the first U.S. futures Bitcoin ETF instead.

    By 2022, the Commission had rejected applications from several asset managers, including SkyBridge, Fidelity, Bitwise, and Grayscale. Since Grayscale would not have the SEC’s decision, it dragged the agency to court, and in 2023, a federal appeals judge ordered the latter to reevaluate the application.

    The False Approval

    Before the landmark Grayscale ruling, asset managers like Ark Invest, BlackRock, Fidelity, and Invesco had filed applications with the SEC to launch spot Bitcoin ETFs. While it appeared the SEC would reject the requests as it had done in the past years, the agency’s decision not to appeal the court’s ruling increased the likelihood that the opposite would be the case.

    By the end of 2023, a total of 13 asset managers had filed for spot Bitcoin ETFs, and the deadline for the SEC’s decision was set on January 10.

    As optimism around the SEC’s decision grew, the agency’s X account was compromised on January 9, 2024, and a tweet announcing the approval of all the applications was posted. However, the news was debunked within an hour as Gensler revealed that the post was unauthorized and the products had not been approved yet.

    A Landmark Decision

    Amid market volatility and speculation surrounding the spot Bitcoin ETF approvals, the SEC finally greenlighted the products on January 10. By the next day, the 11 ETFs started trading on several securities exchanges and amassed $4 billion in volumes with 700,000 trades.

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    Mandy Williams

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  • Analyst Draws Crucial Support Levels For Ethereum (ETH) Post-ETF Surge

    Analyst Draws Crucial Support Levels For Ethereum (ETH) Post-ETF Surge

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    According to data from CoinMarketCap, Ethereum (ETH) had dipped over 2% in the last 24 hours. This negative price movement comes after an initial price boost by the token which it gained by over 19% following news of the Bitcoin spot ETF approval in the US on Wednesday. 

    Interestingly, popular crypto analyst Ali Martinez has offered more insight into ETH’s developing downtrend, highlighting the next possible support zones for crypto’s largest altcoin. 

    Ethereum May Be Headed For $2,450 – Analyst

    In an X post on January 11, Martinez shared that the TD Sequential indicator presented a sell signal on the Ethereum 4-hour chart, which could possibly result in the altcoin’s price falling to a support level of $2,530. 

    For context, the Tom Demark Sequential indicator is a popular TA tool used to identify trend exhaustion and predict possible trend reversals. 

    According to Martinez, this analysis tool showed that ETH was due for a price correction following a price surge in which the asset traded above $2,700 in reaction to the US Securities and Exchange greenlighting the launch of Bitcoin spot ETFs on US securities markets. 

    Interestingly, in a second post on January 12, the renowned crypto analyst doubled down on this prediction stating that if the ETH bulls failed to keep the coin’s value above $2,530, there was a chance the token could trade as low as $2,450.

    According to Martinez, ETH’s current negative price movement appears to be a mere correction which is likely true as the general investor sentiment around the altcoin remains bullish.

    Earlier this week, NewsBTC reported that ETH investors are hyped with the expectation of an Ether spot ETF in the US following the SEC’s clearance of 11 Bitcoin spot ETF applications on Wednesday. Considering ETH’s rank as the second-largest cryptocurrency after Bitcoin, as well as the rising number of Ether spot ETF applications, investors believe the altcoin may be in line for the SEC’s favor. 

    ETH’s Price Overview

    At the time of writing, Ethereum was trading at $2,548 with a slight decline of 2.67% in the last day. However, the altcoin has shown an overall bullish performance in the last week, with a notable gain of 14.48%. Adding to this positive narrative, there is also an uptick in ETH’s daily volume by 22.25% which is currently now valued at $26.8 billion. 

    ETH trading at $2,553 on the daily chart | Source: ETHUSDT chart on Tradingview.com

    Featured image from Forbes, 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.

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    Semilore Faleti

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  • SEC Chair Says Bitcoin Is Centralized After Approving ETFs

    SEC Chair Says Bitcoin Is Centralized After Approving ETFs

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    The chairman of the Securities and Exchange Commission (SEC) has doubled down on his criticisms of Bitcoin (BTC) despite approving a slew of exchange-traded funds for the asset earlier this week.

    During an interview with CNBC on Friday, the chairman argued that Bitcoin boasts few use cases aside from illicit activity, and has ironically trended toward centralization across time.

    The Irony Of Bitcoin ETFs

    Bitcoin descended 6% to $43,500 on Thursday as many investors rotated out of the asset after its highly anticipated ETF launch actually passed.

    “Investors, I think, should be aware that the underlying asset is a highly speculative, volatile asset,” said Gensler regarding the ETFs, stressing that the agency does not “approve” or “endorse” Bitcoin.

    The chairman expanded on his Wednesday statement explaining the approvals, in which he named “ransomware, money laundering, sanction evasion, and terrorist financing,” among Bitcoin’s alleged use cases. Its alleged use cases as a store of value and medium of exchange, he argued, remain suspect.

    Furthermore, while Gensler respects certain innovations with blockchain as an “accounting system,” he claimed that there’s a certain “irony” around approving an ETF for a supposedly “decentralized” system.

    “Think about the irony of those who would say this week is historic,” he said. “Now you can buy [Bitcoin] through this thing called an exchange-traded product that’s, well, centralized.”

    Many within the Bitcoin community share Gensler’s view around ETF products, advising followers to hold their own BTC on a personal wallet where possible, rather than with an ETF.

    However, many in the industry argue that ETFs bring Bitcoin access to companies who can’t control coins themselves, and can only own assets packaged within an ETF or securities wrapper.

    Mining Centralization

    Yet even without an ETF, Gensler claimed there’s “a lot of centralization” with Bitcoin, with particular respect to its mining firms.

    “Even the underlying ledger, largely, the Bitcoin is produced by a handful of mining companies and the like,” the chairman said. Rival currencies, by contrast, have a “common economy” that relies on them.

    According to Hashrate Index, just two Bitcoin mining pools control over 50% of the network’s hash rate, which is enough to re-write the network’s transactions if both pools conspire to act nefariously.

    However, those pools are comprised of several other mining firms that can choose to change pools or mine independently at any point.

    Last year, Twitter co-founder Jack Dorsey backed a non-custodial new mining pool aimed at decentralizing the mining industry.

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  • Morgan Stanley will pay $249 million to settle criminal, SEC block trade probes

    Morgan Stanley will pay $249 million to settle criminal, SEC block trade probes

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    Pawan Passi, former equities executive at Morgan Stanley, arrives at court in New York, US, on Friday, Jan. 12, 2024.

    Alex Kent | Bloomberg | Getty Images

    Morgan Stanley has agreed to pay a total of $249 million to settle a criminal investigation and a related Securities and Exchange Commission probe of the unauthorized disclosure of block trades to investors by the bank‘s supervisor for such trades and another employee, authorities said Friday.

    As part of the settlement, Morgan Stanley entered into a non-prosecution agreement with the U.S. Attorney’s Office for the Southern District of New York for making false statements related to certain block trades executed from 2018 through August 2021, the office said.

    Morgan Stanley, which admitted responsibility for its employees’ actions, is obligated under the deal to cooperate with and provide information to U.S. authorities for at least three years.

    The SEC charged Morgan Stanley with “failing to enforce its policies concerning the misuse of material non-public information related to block trades,” that agency said.

    Block trades typically involve large numbers of shares of a company’s stock in privately arranged transactions executed outside public markets.

    The SEC said the bank generated more than $100 million in illicit profits as a result of misconduct by Pawan Passi, the former head of the bank’s U.S equity syndicate desk.

    Passi, 40, has entered into a deferred prosecution agreement with federal prosecutors, subject to approval by a judge. If Passi complies with the terms of that deal and demonstrates good behavior, he will not be prosecuted, prosecutors said.

    Passi was ordered to pay a $250,000 civil penalty by the SEC.

    Passi admitted that “from 2018 through August 2021, he promised sellers of certain equity blocks that Morgan Stanley would keep information concerning their potential sales confidential, knowing that he would disclose that information to buy-side investors and that those investors would use the information to trade in advance of the block sales,” according to prosecutors.

    Passi appeared at a hearing Friday in Manhattan federal court. His deal does not include a monetary penalty in the criminal case because he had already forfeited about $7.4 million in compensation from Morgan Stanley.

    Read more CNBC politics coverage

    The SEC’s order in the probe says that a former senior member of the syndicate desk participated with Passi in disclosing to certain buy-side investors “non-public, potentially market-moving information” about block trades that Morgan Stanley had been invited to bid on or was negotiating with sellers.

    “Those buy-side investors used such information to ‘pre-position’ — or take a short position in — the stock that was the subject of the upcoming block trade,” the SEC order says.

    The order said the bank “failed to enforce written policies and procedures” designed to prevent material nonpublic information from being misused, and also failed to enforce information barriers to prevent such information involving block trades from being discussed by the syndicate desk with the institutional equity division. The syndicate desk is on the bank’s private side, while the equity division conducts trading in public markets.

    “Sellers entrusted Morgan Stanley and Passi with material non-public information concerning upcoming block trades with the full expectation and understanding that they would keep it confidential,” said SEC Chairman Gary Gensler.

    “Instead, Morgan Stanley and Passi abused that trust by leaking that same information and using it to position themselves ahead of those trades. While their conduct may have earned them tens of millions of dollars on low-risk trades, it violated the federal securities laws,” Gensler said.

    Prosecutors said that the non-prosecution deal with Morgan Stanley “recognizes serious misconduct to which Morgan Stanley has admitted and was uncovered by the Government and was no voluntarily self-disclosed.”

    But prosecutors also said the agreement recognizes that the bank “provided extraordinary cooperation” with the investigation and that the probe did not find evidence of “corporate management’s complicity in or knowledge of the wrongdoing.”

    “Morgan Stanley’s controls, while ultimately unsuccessful in uncovering the misconduct, were designed in part to detect misconduct in the block trades business and were applied in good faith,” the U.S. Attorney’s Office said.

    In a statement, Morgan Stanley said, “We are pleased to resolve these investigations and are confident in the enhancements we have made to our controls around block trading, including strengthening our policies, procedures, training and surveillance.” 

    “The core of this matter is the misconduct of two employees who violated the Firm’s policies, procedures and our core values, as outlined in the settlement documents,” the bank said.

    Passi’s lawyer George Canellos said, “We are pleased that the U.S. Attorney’s Office agreed not to pursue a criminal conviction of Mr. Passi in this complex matter.  Mr. Passi served clients with skill and delivered great execution quality and prices.”

    “The settlements allow Mr. Passi and his family to move past two very difficult years of intense government scrutiny of the block trading practices on Wall Street,” Canellos said.

    — Additional reporting by CNBC’s Leslie Picker.

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  • Ark's Cathie Wood condemns SEC Chair, says Gensler 'denigrated' crypto

    Ark's Cathie Wood condemns SEC Chair, says Gensler 'denigrated' crypto

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    Ark Investment Management CEO Cathie Wood says Gary Gensler ‘denigrated the whole crypto space’ with his latest statement.

    Speaking in an interview with Bloomberg on Jan. 11, Ark Investment Management founder and CEO Cathie Wood criticized the head of the U.S. Securities and Exchange Commission (SEC), saying the latest statement about cryptocurrencies “denigrated” the whole industry.

    “He just denigrated the whole crypto space. I couldn’t believe it. This is par for the course in disruptive innovation.”

    Cathie Wood

    Wood’s comments were prompted by Gensler’s continued skepticism towards cryptocurrencies, even after granting approval for spot Bitcoin exchange-traded funds (ETFs). Gensler, who has been consistently critical of cryptocurrencies since taking charge at the helm of the U.S. financial regulator, reiterated in his latest statement that the SEC “did not approve or endorse Bitcoin.”

    “While we approved the listing and trading of certain spot Bitcoin ETP shares today, we did not approve or endorse Bitcoin. Investors should remain cautious about the myriad risks associated with Bitcoin and products whose value is tied to crypto.”

    Gary Gensler

    Despite Gensler’s negative stance, Cathie Wood believes that the approval of spot Bitcoin ETFs marks a significant development for the largest cryptocurrency by market capitalization. She emphasizes that institutions will now need to navigate and adapt to the new regulatory framework with increased diligence.

    As previously reported by crypto.news, the SEC gave the green light to multiple spot Bitcoin ETFs on Jan. 10, including the one jointly filed by Ark and 21Shares. The approval paves the way for ETFs to commence trading on the CBOE from 9 am on Jan. 11, coinciding with the opening of the U.S. stock market.


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  • Bitcoin ETF Approvals Do Not Undo Many Harms Created by SEC: Commissioner Peirce

    Bitcoin ETF Approvals Do Not Undo Many Harms Created by SEC: Commissioner Peirce

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    Hester Peirce, also known as ‘crypto mom,’ didn’t mince her words in a statement responding to the approval of spot Bitcoin exchange-traded products by her agency after a decade of rejecting them.

    “Today marks the end of an unnecessary, but consequential, saga,” she said on Jan. 10.

    The saga likely would have spanned well beyond a decade were it not for the Grayscale court victory against the SEC last year, she added. 

    “You need not be a seasoned securities lawyer to spot the difference in treatment of bitcoin-related ETP applications compared to the many other ETP applications that have been routinely filed and approved over the past decade.”

    Lambasting The SEC

    The pro-crypto politician also stated that the agency has “alienated a generation of product innovators within our space.”

    These comments and accusations of “regulatory prejudice against new products and services” were highlighted by Coinbase CEO Brian Armstrong. 

    However, Peirce did not stop there. The SEC subjected crypto ETPs to more scrutiny and higher standards than comparable commodity-based ETPs. This disparate treatment harmed the SEC’s reputation, she said.

    Moreover, resources were diverted from other work to analyze and reject Bitcoin ETPs repeatedly over the years. The drawn-out process also created an “artificial frenzy,” she added.

    “Today’s order does not undo the many harms created by the disparate treatment of spot Bitcoin products.”

    Peirce concluded that she would not celebrate the approvals but the “right of American investors to express their thoughts on Bitcoin by buying and selling spot Bitcoin ETPs.”

    Moreover, the approval of spot Bitcoin ETFs sets a positive precedent for potential future approvals of other crypto ETPs, she said. 

    Commissioner Crenshaw Disagrees 

    However, her SEC colleague Commissioner Caroline Crenshaw was of the opposite opinion. Echoing sentiments from other anti-crypto politicians and bankers, she said she was “deeply concerned about today’s actions.” 

    “I am concerned that these products will flood the markets and land squarely in the retirement accounts of U.S. households who can least afford to lose their savings to the fraud and manipulation that appears prevalent in the spot Bitcoin markets and will impact the ETPs.”

    Crenshaw, a former securities lawyer who joined the SEC in 2013, also expressed concern over the lack of regulatory oversight for crypto markets, product confusion, and lack of investor protection. 

    Nevertheless, the SEC failed to protect investors when its social media account was hacked the day before the official announcement.

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  • These Firms Cut Proposed Spot Bitcoin ETF Fees Amid Industry Competition

    These Firms Cut Proposed Spot Bitcoin ETF Fees Amid Industry Competition

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    Several firms have recently reduced their proposed fees, as revealed in the latest versions of their S-1 forms submitted to the U.S. Securities and Exchange Commission.

    This is in response to the ongoing industry competition, amplified by the anticipation surrounding the U.S. Securities and Exchange Commission’s (SEC) decision on spot Bitcoin ETFs.

    Spot Bitcoin ETF Fee Wars Escalate

    As the SEC deadline approaches, various applicants, including Valkyrie, WisdomTree, BlackRock, VanEck, Invesco, Galaxy, Grayscale, and ARK Invest, have revised their fees to gain a competitive edge.

    Fidelity has lowered its fees from 0.39% to 0.25% bps and is offering a fee waiver of 0% through July 31, 2024. Bitwise is charging a fee of 0% for the first six months and the first $1 billion in assets, followed by a 0.20% fee.

    ARK Invest and 21Shares have also slashed their fees from 0.25% to 0.21%. The company is upholding its zero fees policy for six months or until the total assets reach $1 billion.

    BlackRock has adjusted its sponsor fee for its potential spot Bitcoin ETF to 0.25%, a reduction from the previous 0.3%. Additionally, the investment giant has lowered its temporary discount for the first $5 billion of assets in the initial 12 months from launch to 0.12%, down from 0.2%, as stated in the S-1 form filed today.

    WisdomTree reduced its fee from 0.5% to 0.30%, with Galaxy Invesco lowering its fee from 0.59% to 0.39%.

    Valkyrie introduced a three-month fee waiver, reducing its fee from 0.80% to 0.49%. Meanwhile, Hashdex maintained its sponsor fee at 0.90%, and Grayscale lowered its fee from 2% on January 8 to 1.5%, making it the pricier option among the group.

    As the fee wars intensify, James Seyffart cautions that these fees still need to be finalized, leaving room for further adjustments.

    Industry Sentiment

    Amidst the ongoing adjustments, Bloomberg senior ETF analyst Eric Balchunas described the current situation as similar to compressing two years’ worth of fee wars into just a couple of days, emphasizing that while such battles can be challenging for issuers, they create a favorable environment for investors.

    The fee wars have also sparked various theories about the motivations behind the fee cuts. Nic Carter sees the trend of bargain-basement fees as a sign of “massive expectations” from issuers regarding the volume of inflows they anticipate.

    Peter Atwater offers a contrasting perspective. He suggests that issuers engaging in an aggressive fee war are conducting an extensive asset grab, even if it means sacrificing profitability.

    Atwater also posted on X that organizations typically wait to assess their sales potential before resorting to price slashes.

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  • Bitcoin ETF Drama Reveals Post-Approval Price Trend: Experts

    Bitcoin ETF Drama Reveals Post-Approval Price Trend: Experts

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    The Bitcoin market was swept into a frenzy following an alleged hack of the US Securities and Exchange Commission’s (SEC) X account, falsely claiming the approval of 11 spot ETFs. This misinformation led to a rollercoaster in Bitcoin’s price, which initially soared from $46,800 to $48,000, only to crash to $45,000 within a span of 20 minutes.

    This incident has become a pivotal moment for market analysts, providing insights into how the market might react to today’s potential Bitcoin spot ETF approvals in the short term. So here’s what experts from K33 Research, QCP Capital, and Daan Crypto Trades have to say.

    #1 K33 Research: Approval Will Be ‘Sell-The-News” Event

    Vetle Lunde, a senior analyst at K33 Research, provided an in-depth analysis of the market’s reaction to the erroneous announcement. He observed that the market’s immediate response was indicative of a tendency towards a ‘sell-the-news’ reaction. The initial surge in Bitcoin’s price was quickly met with a flood of long positions, causing a significant price fluctuation.

    “The market showed its hands yesterday; the ETF approval rehearsal favors a sell-the-news reaction. Immediately after the announcement, longs quickly crowded the market, enforcing a whipsaw in the following minutes,” Lunde stated.

    Lunde also pointed out that until the SEC’s clarification, the market largely accepted the announcement at face value, triggering an organic reaction. He outlined the sequence of events, noting a 2.4% increase in Bitcoin’s price within four minutes post-announcement, followed by a 1.4% decrease in 14 minutes until Bloomberg debunked the approval news.

    Timeline of the Bitcoin ETF drama | Source: X @VetleLunde

    The market eventually stabilized when Gensler confirmed the hack, highlighting the market’s sensitivity to regulatory news and rumors.

    #2 QCP Capital: Warning Sign For Bitcoin Traders

    QCP Capital, in their “QCP Market Update – 10 Jan 24,” reflected on the bizarre nature of the event with a mix of humor and analysis. “We are on the cusp of a BTC Spot ETF approval, and what transpired in the last 24 hours is something you can’t make up,” their update began.

    They pointed out the lukewarm initial reaction to the ‘approval,’ suggesting that the market might have already priced in the possibility of an actual ETF approval.

    “The initial reaction to the ‘approval’ was muted with BTC being unable to trade out of the resistance area. We take this as a warning sign that an approval is mostly priced in and there may not be a huge rally post the approval,” QCP warned.

    QCP Capital also focused on the implications of this event for future market trends. “The restrained response to the faux approval signals a warning – the actual approval of a Bitcoin ETF might not trigger the expected rally,” they observed, also pointing to the current market dynamics, such as the elevated options volatility and spot-futures basis spread. Notably, the firm sees Bitcoin’s next support at $40,000 to $42,000, and resistance around 48.500.

    Daan Crypto Trades: ETH/BTC Could See A Spike

    Daan Crypto Trades provided a concise but insightful analysis. “The false ETF approval news was a litmus test for the market’s post-approval direction,” he commented. The analysis highlights the pattern of Bitcoin’s price spiking and then fully retracing following the fake announcement.

    “This pattern could well repeat upon actual ETF approval, but with more pronounced selling pressure,” he suggested. Daan Crypto Trades also touched on the broader market implications, especially for the ETH/BTC ratio, which started rallying immediately after the fake announcement.

    He further remarked:

    ETH/BTC started rallying straight away which is also what we’ve been looking for. I think today we might get one more small spike down on ETH/BTC as BTC spikes up but after that I don’t see much holding back the ETH/BTC ratio anymore. Especially if BTC cools off post ETF.

    At press time, BTC traded at $45,346.

    Bitcoin price
    BTC price continues uptrend, 1-day chart | Source: BTCUSD on TradingView.com

    Featured image from Shutterstock, 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.

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  • Bitcoin dips 3% on false SEC spot Bitcoin ETF approval

    Bitcoin dips 3% on false SEC spot Bitcoin ETF approval

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    Unknown hackers hijacked the X account of the United States Securities and Exchange Commission (SEC), posting a fake spot Bitcoin ETF approval message.

    On Jan. 9, the SEC chair Gary Gensler debunked an announcement claiming spot Bitcoin ETFs were approved. The SEC’s official X account published the notice. However, Gensler warned that the page had been compromised and clarified that no spot Bitcoin ETF had been approved yet.

    This is not the first time hackers have misled crypto observers and the public amid fever-pitch anticipation for these products. In December, a fake XRP ETF was registered in Delaware and disguised to present BlackRock as the filer. BlackRock promptly dispelled the rumors, but not before XRP’s price skyrocketed 12% in 30 minutes.

    Fake spot Bitcoin ETF approval from compromised SEC account | Source: X

    The fake Bitcoin (BTC) ETF approval news garnered millions of views minutes after its release. BTC’s price also responded with a 3% price decline.

    spot Bitcoin ETF
    BTC price after fake spot Bitcoin ETF approval | Source: TradingView


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  • Spot Bitcoin ETFs Could Trade 8% Above Fair Value: Expert

    Spot Bitcoin ETFs Could Trade 8% Above Fair Value: Expert

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    In a recent interview with Bloomberg, Reggie Browne, Co-Global Head of ETF Trading and Sales at GTS, shared insightful predictions regarding the potential trading dynamics of spot Bitcoin exchange-traded funds (ETFs). Browne foresees these ETFs trading at a significant premium, estimating as high as 8% above their net asset value (NAV).

    Why Spot Bitcoin ETFs Could Trade At A 8% Premium To NAV

    “I think the spreads will be very competitive and tight. The market maker community is resilient and prepared to offer a lot of liquidity,” Browne stated. However, he highlighted a critical concern, saying, “I think it’s going to be the premium to NAV… US broker dealers can’t trade Bitcoin cash inside their broker dealers. So you’re going to have to trade hedges over futures and trade it on a premium, and then take that off, and I think there is a lot of complexity there.”

    This complexity, according to Browne, arises from the cash creation model forced by the SEC and regulatory constraints that limit direct Bitcoin trading within US broker dealers, compelling them to rely on futures for hedging. He expressed, “What I think, potentially, you could see 8% of premium above fair value. It’s a big number, but let’s see how it plays out.”

    Additionally, Browne touched upon the subject of in-kind creations and redemptions, aspects that were points of contention during negotiations with the Securities and Exchange Commission (SEC). Despite the challenges, he remains optimistic about their future implementation. “Absolutely, I think this was really just to get the ball moving… the in-kind will come after we climb a couple of mountains,” Browne remarked.

    Echoing Browne’s sentiments, Eric Balchunas, a Bloomberg ETF expert, commented on the potential premium, expressing surprise at the anticipated high rate. He drew a comparison with Canada’s spot ETFs, which are also cash creations but have much smaller premiums, despite occasional spikes.

    [Browne] thinks bid-ask spreads on spot ETFs will be tight but (thx to cash only creations) premiums could be as high as 8%. That’s really high and I’m a bit shocked tbh. For context Canada spot ETFs are cash creations and their premiums are very small.. albeit the occasional 2% day.

    The crypto community is closely monitoring the SEC as it approaches a critical deadline to decide on the first batch of several spot Bitcoin ETF applications by tomorrow, January 10. Prominent asset managers such as BlackRock, Fidelity, Ark Invest, Bitwise, Franklin Templeton, Grayscale, WisdomTree, and Valkyrie are among those with pending applications.

    Browne believes that the approval of spot Bitcoin ETFs could attract substantial investor interest, projecting massive inflows over the first year. “I expect investors to add at least $2 billion to spot Bitcoin ETFs within the first 30 days they trade, if approved. For the full year, I see $10 billion-$20 billion in the funds,” he noted. This prediction underscores the significant interest and potential market impact of spot Bitcoin ETFs.

    At press time, BTC traded at $46,768.

    BTC price rallied to $47,000, 1-day chart | Source: BTCUSD on TradingView.com

    Featured image from Shutterstock, 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.

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  • CNBC foresees immediate spot Bitcoin ETF trading if approved Wednesday

    CNBC foresees immediate spot Bitcoin ETF trading if approved Wednesday

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    CNBC predicts spot Bitcoin ETF approval by the U.S. SEC this week, followed by immediate trading the following business day.

    Spot Bitcoin ETFs are on the cusp of a decision from the U.S. Securities and Exchange Commission (SEC), with potential trading activities expected to commence by the end of this week.

    The anticipated approval date, slated for Wednesday, is pivotal for many applicants eagerly seeking a green light to enter the burgeoning market.

    According to CNBC correspondent Kate Rooney, reliable sources affirm the likelihood of spot Bitcoin ETFs securing approval this week, sparking a potential trading frenzy as early as Thursday or Friday.

    This development, if materialized, is poised to herald a transformative era for digital asset investments in the United States, opening doors for multiple applicants.

    Rooney astutely observes the escalating competition among ETF issuers, foreseeing an impending “price war” centered around spot Bitcoin ETF fees. With a slew of applications in the regulatory pipeline, industry titans such as BlackRock, Fidelity, and Grayscale are gearing up for a fierce battle to capture investor attention, not only in the pre-approval marketing skirmish but also in the subsequent pricing landscape.


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  • Was Solana A Q4 2023 “Bubble” That Has Popped?

    Was Solana A Q4 2023 “Bubble” That Has Popped?

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    The crypto market has recently been a roller coaster, especially in H2 2023. Solana, a high-throughput blockchain, emerged as one of the best performers in the top 10 coins by market cap.

    In Q4 2023, Solana soared, reaching highs of around $125 before cooling off to spot rates. However, some think the uptrend is over, with SOL edging lower under increasing liquidation pressure.

    The Solana Bubble Has Popped, Is This True?

    Lido.eth, while taking to X on January 7, said Solana is a “Q4 2023 bubble” that has “already popped.” The analyst added that this formation doesn’t mean SOL is “worthless or won’t be used anymore.” However, based on Lido.eth’s assessment, the Solana “growth story has ended,” calling serious questions into the project’s immediate potential. 

    In H2 2023, Solana grew on renewed interest in the high-performance blockchain. Propelled by rising activity in decentralized finance (DeFi) and non-fungible token (NFT) scenes, SOL reversed losses recorded in November 2022.

    Moreover, as the crypto community tracked the Securities and Exchange Commission (SEC) and whether they would approve the first spot Bitcoin ETF, altcoins, including SOL, became major beneficiaries.

    Arthur Hayes, the founder of the cryptocurrency exchange BitMEX, also believes that the Solana rally is over. In December 2023, Hayes tweeted that he had rotated funds from Solana to Ethereum, citing “divine inspiration.” The BitMEX co-founder also said ETH may rally to reach $5,000 but without giving a specific timeline as to when this lofty target will be reached.

    SOL Remains In An Uptrend, Back To $125?

    Despite these bearish sentiments, some Solana supporters believe the platform has a “bright future.” They point to the upcoming launch of the Firedancer client. 

    This validator client will make the network more robust and increase efficiency. It will aim to decentralize Solana further, making it more reliant by eliminating weak points resulting from client concentration. From a price action perspective, continuing the overall crypto uptrend could also buoy SOL prices in 2024.

    Looking at the Solana price chart, the uptrend remains, but sellers dominate, at least in the short term. To quantify, SOL is down 30% from the December 2023 peak when it topped at around $125. 

    Solana price trending upward on the daily chart | Source: SOLUSDT on Binance, TradingView

    With prices trending inside the bear bar of January 3, sellers have the upper hand from an effort-versus-result perspective. For the uptrend to resume, there must be a clear, high-volume close above $100. If not, steep losses below $85 might trigger a sell-off that could price toward $60 or worse.

    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.

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  • Valkyrie and ARK 21Shares file Bitcoin ETF registration of securities with SEC

    Valkyrie and ARK 21Shares file Bitcoin ETF registration of securities with SEC

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    Valkyrie and ARK 21Shares have recently submitted filings for spot Bitcoin ETFs, adding to the growing list of contenders seeking approval from the U.S. Securities and Exchange Commission.

    Valkyrie and ARK 21Shares have filed for 8-A registration of securities for a spot Bitcoin ETF with the SEC on Jan. 4, following the footsteps of Grayscale and VanEck earlier today and Fidelity, who filed yesterday.

    Valkyrie and ARK 21Shares’s official filings today suggest a solid chance of approvals being pushed through imminently as the two companies compete with others for the first spot Bitcoin ETF in the United States.

    The filing comes while the market is buzzing about the potential approval of a U.S. spot Bitcoin ETF. Despite chatter about possible rejections, Valkyrie and ARK 21Shares filings, among others, point to a different story.

    The cryptocurrency industry is hoping for approvals to roll out between Jan. 8 – 10. Big players like Goldman Sachs are already angling for key roles in Grayscale and BlackRock ETFs.

    While nothing is set as of today, the week has shown bullish sentiment around the immediate possibility of a spot Bitcoin ETF approval. SEC meetings with exchanges such as Nasdaq, NYSE, and CBOE add to the optimism, hinting at potential approvals as early as Monday.


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    Bralon Hill

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