- On October 4th, the Southern District of New York Court announced the rejection of the U.S. Securities and Exchange Commission’s (SEC) request for mediation in the Ripple case, citing that the SEC’s request was practically insignificant.
- On October 6th, former BlackRock executive Martin Bednall suggested at the CCData Digital Assets Summit that the SEC might approve all physically backed Bitcoin ETF applications simultaneously.
- On October 3rd, Bitwise Asset Management officially announced the launch of two Ethereum futures ETFs, the Bitwise Ethereum Strategy ETF, and the Bitwise Bitcoin and Ethereum Equal Weight Strategy ETF.
The Bitcoin market has experienced a tumultuous week, so what news will investors focus on in the coming week? Volatility may rise!
Last Week in the Crypto World
The world of Bitcoin and cryptocurrencies faced turbulent events last week. The Bitcoin price struggled to hold above the $28,000 resistance level throughout the week. Let’s take a closer look at what happened in the crypto world!
Judge Rejects SEC’s Mediation Request in Ripple Case
On October 4th, the Southern District of New York Court announced the rejection of the U.S. Securities and Exchange Commission’s (SEC) request for mediation in the Ripple case, citing that the SEC’s request was practically insignificant. The trial for this case is scheduled to begin on April 23, 2024. The court continues to maintain the view that the category of buyers who expected to profit by purchasing Ripple tokens falls outside the ordinary and reasonable buyer category. The SEC emphasized that the Terraform decision was not contradictory to this case. Terraform distributed tokens to retail investors, claiming additional profits, while Ripple’s promotional materials for profit were only presented to institutional buyers.
Former BlackRock Executive Predicts SEC Could Approve Bitcoin ETFs Simultaneously
On October 6th, former BlackRock executive Martin Bednall suggested at the CCData Digital Assets Summit that the SEC might approve all physically backed Bitcoin ETF applications simultaneously. Steven Schoenfeld, CEO of VanEck’s MarketVector Indexes, supported this idea, stating that the approval process could be completed within 3 to 6 months. This expectation arises from the SEC’s recent approach of seeking feedback rather than outright rejecting ETF applications. Schoenfeld added that the SEC’s recent loss in the Grayscale case could necessitate Grayscale Bitcoin Trust’s transformation into a physically backed Bitcoin ETF.
UBS Launches First Tokenized Money Market Fund on Ethereum
On October 2nd, UBS, one of the world’s largest asset management companies, launched ‘Project Nexus,’ a tokenized money market fund pilot on the Ethereum blockchain. This fund is part of the ‘Guardians Program’ led by the Monetary Authority of Singapore (MAS). The pilot allows UBS to explore various fund activities on Ethereum, including subscriptions and redemptions.
Bitwise Announces Launch of Two Ethereum Futures ETFs: AETH and BTOP
On October 3rd, Bitwise Asset Management officially announced the launch of two Ethereum futures ETFs, the Bitwise Ethereum Strategy ETF, and the Bitwise Bitcoin and Ethereum Equal Weight Strategy ETF. Investors can now access Ethereum futures investments through widely used and regulated ETF formats for the first time. However, trading volume on the listing day was significantly low.
ProShares, VanEck, and Bitwise introduced a total of six Ethereum futures ETFs with a combined trading volume of $1.92 million. VanEck’s fund has the lowest expense ratio (0.66%), while the expense ratios for the two Bitwise funds are 0.85%, and ProShares ETF’s expense ratio is 0.95%.
Brazilian Government Introduces Blockchain-Based Digital Identity Card
On October 1st, the Brazilian government introduced a blockchain-based digital identity card. The states of Rio de Janeiro, Goiás, and Paraná will be the first to use a private blockchain developed by the Brazilian National Data Processing Service (Serpro) to issue identity documents. According to a decree published on September 25th, the national distribution of identity documents through blockchain technology should be completed by November 6th, allowing more than 214 million Brazilians to use blockchain technology for digital identity verification in the near future.
El Salvador Establishes First Bitcoin Mining Pool: Lava Pool
On October 5th, Volcano Energy announced a partnership with Luxor Technologies to establish ‘Lava Pool,’ the first Bitcoin mining pool in El Salvador. Volcano Energy builds Bitcoin mining facilities using wind and solar energy and produces 241 megawatts of renewable energy; some of this energy will be used for Bitcoin mining and also provide affordable electricity to local communities. In June, Volcano Energy pledged a $1 billion investment to improve renewable energy and Bitcoin mining operations in the country, of which $250 million has already been used. Approximately 23% of the company’s net income contributes to the Salvadoran government as part of a public-private partnership. Volcano Energy is jointly run by 23-year-old Bitcoin advocate Josue Lopez and Max Keiser, an advisor to the President of El Salvador.
Multiple MPI Licenses Granted in Singapore
- Coinbase Singapore Obtains Major Payment Institution License from the Monetary Authority of Singapore (MAS): On October 2nd, Coinbase announced that Coinbase Singapore had obtained a Major Payment Institution License (MPI) from the Monetary Authority of Singapore (MAS). Coinbase Singapore developed products specifically tailored to the Singapore market and plans to implement training and employment initiatives at the Singapore Technology Center. Previously, Coinbase had obtained VASP registration in Spain, Italy, Ireland, and the Netherlands.
- Ripple Subsidiary Awarded Major Payment Institution License by MAS: On October 4th, Ripple’s Singapore subsidiary, Ripple Markets APAC Pte Ltd, obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), allowing the company to provide regulated digital asset token services in the country.
- Sygnum Singapore Obtains Major Payment Institution License from MAS: On October 3rd, Sygnum Singapore, a subsidiary of the Swiss crypto bank Sygnum, obtained a Major Payment Institution License (MPIL) from the Monetary Authority of Singapore (MAS). This license allows the company to offer cryptocurrency brokerage services to eligible investors and institutions in Singapore. Additionally, the company plans to expand its regulated products in other Asia-Pacific (APAC) markets, including Hong Kong.
- GSR Markets Principles-Based Approval for Major Payment Institution License from MAS: On October 2nd, cryptocurrency market maker GSR announced that its Singapore subsidiary, GSR Markets, received principles-based approval for a Major Payment Institution License from the Monetary Authority of Singapore (MAS). The company is continuing efforts to secure the official license. GSR’s Chief Operating Officer noted that MAS is leading the way in providing a clear framework for digital asset usage and that GSR will continue to serve as a liquidity provider within the ecosystem.
Summary of SBF’s Week
- Michael Lewis Claims SBF Considered Paying $5 Billion to Avoid Presidential Race: On October 2nd, Michael Lewis, the author of ‘The Big Short,’ claimed that Sam Bankman-Fried (SBF), the founder of the failed crypto exchange FTX, considered offering $5 billion to Donald Trump to avoid running for president. It had been reported that SBF was active in political contributions.
- Michael Lewis’ New Book ‘Going Infinite’ Details SBF’s Recovery of CZ’s Shares and More: On October 4th, it was reported that SBF proposed repurchasing FTX shares from Zhao Changpeng to avoid increasing regulatory scrutiny. Zhao initially agreed to sell the shares for $80 million in late 2019. However, just before the official agreement was to be signed, Zhao demanded an additional $75 million, which SBF agreed to pay, completing the share repurchase. Additionally, it was noted that SBF was concerned about employees getting wealthy due to the increase in the value of SRM tokens, prompting a change in the release rules, locking up employees’ SRM tokens for seven years.
- U.S. Prosecutors: SBF’s Wealth Is Built on Lies: On October 5th, according to Bloomberg, Assistant U.S. Attorney Nathan Rehn accused SBF of building a crypto empire while “lying to the world.” Rehn alleged that SBF used investor deposits as his personal bank account for FTX and that only SBF’s inner circle knew that the company used customer funds to finance before the company went bankrupt a year ago. “He has wealth, power, influence, but it’s all built on lies, and he’s stealing billions of dollars from thousands of victims by committing massive fraud,” Rehn said. SBF’s lawyers argued that he worked hard, didn’t drink or party, attended MIT, had no intention of defrauding anyone, and that FTX’s rise and fall reflected changes in the entire crypto industry.
- U.S. Department of Justice Investigates Approximately $28 Million Worth of Two Luxury Planes: On October 6th, according to Bloomberg, the U.S. Department of Justice is investigating two luxury planes owned by SBF: Bombardier Global 5000 BD700-1A11 and Embraer Legacy EMB-135BJ. A charter airline company in the Bahamas claimed that it purchased these planes from SBF based on a verbal agreement for $28.4 million last year, and these receivables were financed by FTX. Prosecutors allege that these two planes were purchased with the proceeds from the ongoing billion-dollar fraud case related to SBF in the Manhattan federal court.
Layoffs Announced by Ledger and Chainalysis
- Hardware Wallet Manufacturer Ledger Announces 12% Workforce Reduction: On October 6th, Pascal Gauthier, CEO of cryptocurrency wallet hardware manufacturer Ledger, announced that the company would reduce its workforce by 12%. Gauthier cited macroeconomic challenges limiting their revenue-generating capabilities. He stated that roles needed to be reduced in global operations to adapt to current market conditions and business realities. According to LinkedIn data, the company currently has 734 employees, and a 12% reduction would amount to approximately cutting 88 jobs. Previously, Ledger announced that it had raised most of the funds from a $109 million funding round, valuing the company at approximately $1.4 billion.
- Chainalysis Announces Layoffs of Approximately 150 Employees and Focuses on Government Initiatives: On October 3rd, according to Forbes, Michael Gronager, CEO of blockchain analytics firm Chainalysis, announced a workforce reduction affecting approximately 150 people in an email sent to employees. This reduction, which accounts for just over 15% of the company’s total workforce of 900 employees, occurred in 2022 when the company was valued at $8.6 billion. Chainalysis has shifted its focus from private-sector investments to government agencies, with 70% of the company’s revenue coming from these institutions.
Key Developments to Watch for Next Week
Next week, the crypto world will focus on three significant developments in the United States. No major news or developments that could create volatility for Bitcoin and cryptocurrencies are expected on Monday and Tuesday.
On Wednesday, U.S. Producer Price Index (PPI) data will be released, followed by the publication of the Federal Reserve’s Federal Open Market Committee (FOMC) meeting minutes. Bitcoin may experience high volatility on Wednesday. Following Wednesday, on Thursday, inflation data will be announced in the United States. These data could also create volatility in the Bitcoin market.
However, the significance of the inflation data lies not only in volatility but also in the Federal Reserve’s interest rate decision on November 1st. If inflation exceeds expectations, it could lead to an increase in interest rates. According to CME Group, the probability of keeping interest rates unchanged is currently priced at 72.9%.
Critical developments of next week! ⚡️#US #Bitcoin #BTC $BTC #FED #Crypto pic.twitter.com/FwRLegiQsq
— COINOTAG NEWS (@coinotagen) October 8, 2023
