- On October 23, Bloomberg’s ETF analyst Eric Balchunas tweeted that BlackRock’s subsidiary, iShares Bitcoin Trust, was listed on the Depository Trust & Clearing Corporation (DTCC).
- On October 24, it was reported by Vetle Lunde that the open positions in CME Bitcoin futures exceeded 100,000 BTC for the first time, showing a net increase of 4,380 BTC on October 23.
- On October 26, SEC Chairman Gary Gensler referred to the crypto industry as a realm where fraud, scams, bankruptcies, and money laundering prevail during the 2023 Securities Enforcement Forum.
The Bitcoin and crypto market has experienced a rather turbulent week. What developments will the markets focus on in the coming week? Here are all the details!
Recap of the Past Week: A Comprehensive Summary!
In the final week of October, the Bitcoin and crypto market saw tumultuous days. Bitcoin experienced an unexpected price surge, while altcoins started to follow the bullish trend. Expectations of a bull season strengthened, but the SEC’s decision on spot Bitcoin ETFs remains a topic of discussion. What did the crypto sector experience this week? Let’s go through a comprehensive summary.
BlackRock Bitcoin Trust Listed on DTCC
On October 23, Bloomberg’s ETF analyst Eric Balchunas tweeted that BlackRock’s subsidiary, iShares Bitcoin Trust, was listed on the Depository Trust & Clearing Corporation (DTCC). The ticker symbol was IBTC, and it was mentioned that there was a process to bring a spot Bitcoin ETF to the market. However, on the same day, BlackRock’s iShares Bitcoin Trust, IBTC, was removed from the DTCC website but was relisted the following day. A later report by Reuters stated that a DTCC spokesperson noted that BlackRock’s iShares Bitcoin Trust ETF was added to the qualifying certificate in August 2023.
Subsequently, email screenshots indicate that the standard procedure at DTCC requires an ETF fund to request a DTCC ID before launching a new ETF. DTCC’s processing of the transaction can be at an uncertain future date, and securities must be added to the National Securities Clearing Corporation (NSCC) Securities Qualification File.
Reports on October 25 indicated that ARK Invest’s Bitcoin spot ETF (ARKB) and 21Shares’ Bitcoin spot ETF (ARKA) were listed on the DTCC website. However, upon inspection, it was found that the listed ETF was actually 21Shares’ Bitcoin futures ETF, ARKA.
CME Bitcoin Futures Open Interest Exceeds 100,000 BTC for the First Time
On October 24, Vetle Lunde reported that the open positions in CME Bitcoin futures exceeded 100,000 BTC for the first time and showed a net increase of 4,380 BTC on October 23. The market share of CME Bitcoin derivative contracts rapidly approached Binance’s 29% market share, reaching an all-time high. As open positions increased, the 1-month annualized futures premium for BTC rose to 13%, much higher than ETH.
Ethereum Developers Confirm Delay in London Upgrade Until the End of This Year
On October 27, it was reported by COINOTAG that Ethereum client developers officially confirmed that the expected London upgrade would not be implemented with a network hard fork until the end of 2023. Potuz, an anonymous Prysm developer, mentioned that the ten developer networks established for testing the upgrade over the past few months had consistently faced consensus issues, and none of them progressed smoothly.
SEC Chairman: Crypto Industry Is “Filled with Fraud, Scams, Bankruptcies, and Money Laundering”
On October 26, SEC Chairman Gary Gensler referred to the crypto industry as a realm where fraud, scams, bankruptcies, and money laundering prevail during the 2023 Securities Enforcement Forum. While many ventures in this field claim to operate outside pre-existing regulations that existed before the publication of Satoshi Nakamoto’s famous white paper, they rapidly seek legal protection when navigating bankruptcy courts and resolving private deals.
Coinbase Disputes SEC Charges: SEC Decision Expands Its Own Authority
On October 25, Coinbase submitted a response brief to the SEC’s allegations from June, asserting that the SEC does not have decision-making authority over their claims. Coinbase argues that every purchase of an asset does not necessarily contain ongoing contractual obligations for the asset. The SEC’s claim that every purchase is made with the hope of an increase in value is seen as an attempt to expand the fundamental authority expressed by the Howey test principle and requires clear congressional authority to decide such critical issues.
Hong Kong Financial Secretary Aims to Turn Hong Kong into an International Virtual Asset Hub
On October 26, Hong Kong’s Financial Secretary Paul Chan Mo-po expressed hope to turn Hong Kong into an international virtual asset hub. This includes the regulation of virtual assets and the introduction of a digital Hong Kong dollar. When asked how citizens would secure their virtual assets, Chan stated that he would provide updates after consultations with regulatory authorities, the Legislative Council Finance Committee, and other relevant parties on Monday, October 30. In June of this year, new regulatory measures were introduced to oversee virtual asset exchanges, focusing on oversight and regulation of product providers.
Binance Weekly Summary
Increased Regulatory Pressure Leads to Departure of Binance UK CEO Jonathan Farnell: Binance UK CEO and Bifinity CEO Jonathan Farnell departed the company at the end of September. Farnell had previously resigned from his high-level compliance position at Binance Europe in June. This change came as the UK Financial Conduct Authority (FCA) introduced stricter regulations on crypto advertising. Farnell’s departure is part of a series of recent executive departures from Binance.
Binance Aims to Comply with Regulations in Argentina, Says Binance Latin America President: According to COINOTAG on October 24, Min Lin, Binance’s Latin America President, stated that the exchange aims to be subject to regulations in Argentina if specific laws allow crypto broker licenses. Lin mentioned that Binance is in discussions with regulatory authorities to introduce innovation within a regulatory framework and prioritizes implementing user protection measures.
Binance Temporarily Suspended Crypto Withdrawals Due to Technical Issues on October 25: On the evening of October 25, Binance announced in a tweet that they were experiencing technical issues with crypto withdrawals. The team working to resolve the issue made crypto withdrawals temporarily unavailable during their work. Fiat withdrawals remained available and operational, and all funds were considered safe. CZ stated that the technical problem affecting withdrawals was related to middleware services. Binance later reported that the issue had been resolved, and all crypto withdrawals returned to normal operation. The issue lasted for approximately 52 minutes.
FTX Weekly Summary
FTX in Talks with Three Bidders to Relaunch the Exchange: According to Bloomberg on October 25, FTX is in discussions with three bidders to relaunch the exchange, and a decision on how to proceed will be made by mid-December. Currently, FTX is in talks with investors regarding the potential binding details of an offer. Possible options include selling the entire exchange, bringing in partners to assist in relaunching the exchange, or considering an independent relaunch.
FTX and Alameda Move Wallets Holding a Total of $59 Million in Crypto Assets: On October 27, according to Lookonchain, FTX and Alameda addresses moved a total of $59 million worth of crypto assets, including 787,000 SOL ($25.4 million), 4,858 ETH ($8.7 million), 532,000 LINK ($5.8 million), 7.8 million MATIC ($4.9 million), 1.09 million DYDX ($2.5 million), 974,000 RNDR ($2 million), 488,000 UNI ($2 million), 1.09 million LDO ($2 million), 1,341 MKR ($1.9 million), and 1.6 million AGLD ($1.3 million), among other assets. Eight FTX and Alameda addresses, which recently sold their assets, still hold approximately $619 million worth of crypto assets, including 55,280 ETH ($99 million), 69.7 million FTT ($91.55 million), 25 million WLD ($44.6 million), and 53 million MATIC ($33 million), among other assets.
FTX Tokens Rise Between $0.50 and $0.53 per Dollar: According to Bloomberg on October 26, Cherokee Acquisition, a distressed asset investment firm, currently quotes FTX claims at a range of $0.50 to $0.53 per dollar, slightly above the just-over-$0.40 range from the previous week. FTX demand prices have been steadily rising since the beginning of the recovery of billions of dollars from FTX’s insolvency, and large hedge funds are actively trading demand shares. These encompass everything from account-equivalent contracts on FTX. FTX investment banker Kevin M. Cofsky stated that the company communicates with “numerous parties” daily. Options considered include selling the entire exchange, bringing in partners to assist in relaunching the exchange, or an independent relaunch.
Matrixport Believes the Fifth Bitcoin Bull Market Officially Started on June 22, 2023 On October 26
Matrixport analysis stated that the fifth Bitcoin bull market officially began on June 22, 2023, and that Bitcoin achieved a new yearly high for the first time in over a year. Historically, when this signal is triggered, the average return for Bitcoin is over 310%. Based on this signal, Bitcoin is estimated to reach $125,000 by December 2024. The fifth Bitcoin bull market seems to be largely driven by relatively high institutional adoption. The increase in Bitcoin’s value is not coincidental, as it occurs when the U.S. debt-to-GDP ratio reaches unsustainable levels.
What to Expect Next Week?
Next week could bring intense volatility for Bitcoin and cryptocurrencies. The most significant factor will be the announcement of the Fed’s interest rate decision. Investors will closely follow Fed Chairman Jerome Powell’s statements within 30 minutes after the Fed’s decision. These statements could provide clues about the Fed’s future monetary policy. Bitcoin’s price and other markets will be affected by these remarks.
In addition to these developments, some economic data will be released in the United States and Turkey. While they may not directly create high volatility, they are still important for the markets.
Important developments of next week!#Bitcoin #BTC $BTC #US #FED $OP $IMX pic.twitter.com/cGPB1jCvPA
— COINOTAG NEWS (@coinotagen) October 29, 2023
