HSBC Bank (China) Ltd. announced on Friday the launch of digital yuan (e-CNY) services for corporate clients, becoming one of the first international banks to provide these services to both corporate and retail customers. The e-CNY, or digital yuan, is China’s central bank digital currency (CBDC) issued by the People’s Bank of China (PBOC). Following […]
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UK Digital Bank Blocks Clients From Performing Crypto Transactions
The London-based digital bank Kroo has barred its clients from engaging in cryptocurrency transactions, joining other U.K.-based banks in this decision. The bank cites the increasing cases of online fraud incidents involving cryptocurrencies as the reason for this move. Kroo to Decline Cryptocurrency-Related Bank Transfer Requests London-based digital bank Kroo has barred its customers from […]
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Goldman Sachs Says ‘Many of Our Largest Clients’ Getting Active in Crypto
Many of Goldman Sachs’ largest clients are ramping up their activity in the crypto space following spot bitcoin exchange-traded fund (ETF) approvals and BTC price recovery. “The recent ETF approval has triggered a resurgence of interest and activities from our clients,” said Goldman Sachs’ Asia Pacific head of digital assets. Goldman Sachs’ Clients Getting Active […]
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Bitcoin Tops Crypto Priority for Blackrock Clients as IBIT Holdings Reach 243K BTC
Blackrock’s head of digital assets has revealed that bitcoin is the overwhelming favorite cryptocurrency for the asset management firm’s clients. “And then a little bit Ethereum, and very little everything else,” he added. Blackrock’s spot bitcoin exchange-traded funds (ETF), the Ishares Bitcoin Trust (IBIT), has amassed approximately 243K bitcoins since its launch. Blackrock’s Head of […]
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Uniswap Founder: Dapps Will Soon Handle Gas Fees On Behalf Of Clients
In comments likely to resonate with crypto fans, Hayden Adams, the founder of Uniswap, a leading decentralized exchange (DEX), predicts that network fees will eventually become a background expense for users, much like server costs are today for top centralized applications running on Amazon Web Service and other platforms.
Gas Fees Is A Major Pain Point, Mass Migration To Solana, Layer-2 Platforms
Taking to X, Adams envisioned a future where decentralized applications (dapps) seamlessly cover network fees on behalf of users. This approach, the inventor adds, aligns with how server costs are currently handled in the current setup, especially among operators of common applications like X or Facebook.
Server costs are often considered a hidden expense in the overall business model. However, this can cost millions of dollars monthly, depending on the app’s popularity.
Presently, the dream of low-fee transactions remains out of reach for some blockchains, particularly Ethereum, the dominant platform for smart contracts. Ethereum is a legacy blockchain that recently shifted from a proof-of-work to proof-of-stake consensus.
However, while this was a major shift, the network still struggles with scaling challenges. At optimum, Ethereum can only process 15 transactions every second. Comparing this with current demand only means “gas fees” must be high to incentivize the validator to include transactions in the next block.
This high “gas fee” continues to be a major pain point, leading some projects to migrate to alternative networks with faster transaction speeds and lower fees. Solana, a high-throughput blockchain, and layer-2 scaling solutions like Arbitrum have emerged as popular destinations for these migrating projects. This trend is particularly evident with the recent surge of meme coins like BONK and WIF, which have seen significant growth on Solana.
Unlike Ethereum, Solana and layer-2 platforms relying on Ethereum for security boast higher throughput and negligible gas fees. Accordingly, more meme coin projects are launching on these networks. Here, users can transact without considering the implication of gas fees. In recent weeks, top meme coins, besides PepeCoin (PEPE) or Dogecoin (DOGE), have been launching on Solana.
Ethereum Is Working On Scaling
Ethereum will implement the Dencun Upgrade in mid-March to combat its scaling woes. The update aims to reduce costs for users interacting with layer-2 solutions significantly. However, this upgrade is just one of the many Ethereum developers plan to implement over time.
Eventually, the proof-of-stake network aims to scale processing speeds, allowing it to execute millions of transactions every second through innovations like Sharding.
Uniswap continues to lead in popularity, looking at assets under management. So far, Uniswap developers have deployed its solution across other blockchains and layer-2 options, including Arbitrum and the BNB Chain.
Bank of America Merrill Lynch and Wells Fargo Begin Offering Spot Bitcoin ETFs to Clients, Report
Bank of America’s Merrill Lynch and Wells Fargo’s wealth management arm have reportedly begun offering some clients access to spot bitcoin exchange-traded funds (ETFs). Other investment platforms that offer some clients access to spot bitcoin ETFs include Fidelity, Charles Schwab, Robinhood Markets, and UBS. Major Banks Embrace Bitcoin ETFs Bank of America’s investment arm, Merrill […]
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$30 Billion Investment Platform Approves 4 Spot Bitcoin ETFs for Clients
Carson Group, an investment platform with billion in assets under management, has reportedly approved four spot bitcoin exchange-traded funds (ETFs) on its platform. The approved funds include Blackrock’s Ishares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC). “We feel it is important to offer these products as a result of two of […]
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FTX Payment Plan Faces Backlash, Clients Slam 2022 Asset Valuation as ‘Theft,’ Urge Court for Fair Redress
Following the submission of a proposal by FTX estate debtors to reimburse customer assets based on their value as of Nov. 11, 2022, numerous objections have been raised by customers. A notable objection comes from an FTX client in France, who criticizes the estate for “depleting creditor funds by imposing exorbitant charges for their services.” This customer expresses dissatisfaction with the compensation in fiat currency, particularly given the valuation of crypto assets at a point when “markets were at their lowest in years.”
FTX Customers Rally Against Repayment Plan Citing Injustice in Crypto Asset Valuation
FTX clients have expressed significant dissatisfaction with the company’s reorganization plan, which proposed compensating customers in fiat currency based on the value of their crypto assets as of Nov. 11, 2022 — the day the now-insolvent crypto exchange declared Chapter 11 bankruptcy. For example, while bitcoin (BTC) currently trades just above ,000, the “Digital Asset Conversion Table” values it at only ,871 per coin. Following this proposal, the bankruptcy court docket has been inundated with several objections.
A customer from Portugal has pointed out that the bankruptcy process is causing “significant losses for creditors.” This client claims that “0 million in fees” have been deducted, which he believes should instead be used to benefit the customers. He observes that this situation creates an incentive for certain parties to prolong the proceedings, thereby accumulating more fees. Moreover, this Portuguese individual argues that setting the value of crypto assets based on their Nov. 11, 2022, prices contradicts the terms of service (ToS).
Meanwhile, a French customer contends that reimbursing creditors based on the November 2022 valuation of their crypto effectively equates to “stealing” from the victims. In a letter to Judge Dorsey, this customer urges the judge to “intervene” to avert what they describe as a “second theft.” Another objector disputes the conversion table, noting that their claim’s value is 2.55 times higher than the specified date. They argue that approving this proposal would “unfairly prejudice a significant class of customers.” This client further points out that the FTX ToS clearly states that the crypto assets belong to the owners and should never have been co-mingled with other funds.
Ever since its unveiling in December 2023, the proposal has been met with a steady stream of objections, accumulating in the court docket hosted by the Kroll Restructuring Administration. Numerous creditors have submitted letters, suggesting various alternatives for the judge to consider, rather than adhering to the estate’s proposed strategy. Alongside these objections, there’s also a notable trend of claims being transferred to different entities. Current market values for FTX claims show sellers asking for .77 on the dollar, while bids are coming in at around .72.
What do you think about the objections to the proposed FTX reimbursement plan? Share your thoughts and opinions about this subject in the comments section below.
Circle Informs Clients of IRS Inquiry Into $20K Annual Transactions
Numerous advocates of digital currencies report that Circle Internet Financial has been reaching out to its clients about a summons received from the Internal Revenue Service (IRS). Circle has stated that it is obliged to submit records concerning U.S. taxpayers who have engaged in transactions amounting to at least ,000 annually during the years 2016 to 2020.
Crypto Firm Circle Addresses IRS Summons on User Transactions Exceeding ,000
Circle, a crypto company and stablecoin issuer has been informing its U.S. clientele via email about its intention to adhere to a summons from the IRS. This summons, issued on April 9, 2021, targets Circle and its associated subsidiaries. According to the email from Circle, the IRS is seeking data on clients who transacted ,000 or more in any year from 2016 through 2020. Previously, Circle offered crypto assets like bitcoin (BTC) to its retail customers and briefly owned Poloniex.
Circle has since ceased both these operations; it no longer possesses Poloniex and has discontinued its earlier practice of selling digital currencies to retail investors. Circle detailed in the email to clients that it was informing them that Circle plans to comply. “We are writing to inform you that we are complying with this summons which requires us to produce information specific to your account,” the company’s email said.
Circle’s correspondence adds:
If you have any concerns about this, we encourage you to seek legal advice from an attorney.
Circle’s announcement comes on the heels of a similar situation involving Kraken, where the IRS issued a summons to the San Francisco-based crypto exchange, seeking details on customers with yearly trading volumes exceeding ,000 from 2016 to 2020. Similarly, the San Francisco-based publicly traded platform, Coinbase, was also mandated by the IRS in 2018 to hand over customer information.
Circle communicated that the issue regarding the summons is still unresolved, even after six months. In their correspondence, the company alerted the recipients that the compliance might pertain to tax filings for the years 2016 to 2020 and it suggests that users who believe they may have a tax obligation should seek advice from a tax professional.
What do you think about Circle’s message to U.S. clients about the IRS summons? Share your thoughts and opinions about this subject in the comments section below.
Financial Advisors Are Waiting for Spot Bitcoin ETFs to Offer Clients, Says Ric Edelman
Edelman Financial Services founder Ric Edelman has explained that financial advisors are waiting for the U.S. Securities and Exchange Commission (SEC) to approve spot bitcoin exchange-traded funds (ETFs) so that they can offer these investment products to their clients. “Every compliance department will say okay to that product because it’s just an ETF like other thematic ETFs,” he emphasized.
Financial Advisors Await Spot Bitcoin ETFs
Ric Edelman, founder of Edelman Financial Services and author of several personal finance books, shared his perspective on spot bitcoin exchange-traded funds (ETFs) during Coindesk’s Unchained podcast this week. He detailed:
77% of advisors in the last survey we’ve done on this … show that they are waiting for the spot bitcoin ETF to become available so that they can provide this to their clients because every compliance department will say okay to that product because it’s just an ETF like other thematic ETFs.
“We use ETFs for investing in computer technology, oil and gas, gold and precious metals, [and] emerging markets. This will simply be blockchain and digital assets,” he clarified.
Edelman added: “47% of advisors personally own bitcoin which means they get it. They understand that this is an innovative technology, that it has the potential for delivering outsized investment returns and they’re personally investing.”
The founder of Edelman Financial Services pondered the conversation between financial advisors and their clients. “How are they going to explain to their clients when the client finally says should I buy bitcoin? What do you think? By the way, do you own it?” he described, anticipating the advisor would say: “Oh yeah I’ve owned it for years. I just never told you to buy it.”
Many people expect the U.S. Securities and Exchange Commission (SEC) to approve multiple spot bitcoin ETFs at once, including the analysts at JPMorgan. Bloomberg ETF analyst Eric Balchunas said this week, “We still holding line at 90% odds of approval by Jan 10,” noting that it’s “the same odds we’ve had for months.”
Do you think many financial advisors will recommend spot bitcoin ETFs to their clients? Let us know in the comments section below.