The Financial Conduct Authority (FCA), the UK’s top financial regulator, has approved physically backed bitcoin and ethereum exchange-traded products (ETPs) for listing on the London Stock Exchange for the first time. “FCA approval in this respect could result in greater institutional adoption of the asset class,” Wisdomtree stated. First Bitcoin and Ethereum ETP Listings on […]
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Wealthy London Residents Reportedly Use Cryptocurrency for High-End Property Rent Payments
Some of London’s wealthy residents are reportedly using cryptocurrency to pay for luxury home rentals. High interest rates and a dampened real estate market have led the city’s affluent residents to opt against buying properties. The acceptance of payment in cryptocurrency demonstrates the real estate agency’s openness and its eagerness to become “a leader within […]
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London Stock Exchange Embraces Digital Assets by Accepting Crypto ETN Applications
In a pivotal announcement, the London Stock Exchange (LSE) has shared its plans to accept bitcoin and ethereum exchange-traded note (ETN) applications, signaling a significant shift toward incorporating digital currencies into mainstream financial markets. LSE Announces Acceptance of Crypto ETNs The launch of bitcoin (BTC) and ethereum (ETH) ETNs on the LSE platform marks a […]
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Ethereum’s Fiery Path: $6.6 Billion Ether Burned Since the London Hard Fork
Drawing upon recent data, the Ethereum network has incinerated close to 3.46 million ether, translating to a staggering .68 billion in value burned since the London hard fork’s implementation on August 5, 2023. Taking into account the 710-day period that followed, the Ethereum network maintained a relentless burn rate, burning an average of over 146,000 ethereum every month.
Ethereum Has Burned 3.46 Million Ether in 710 Days
Nearly two years — precisely 23 months — have zipped by since the enforcement of Ethereum’s London hard fork, marking the implementation of Ethereum Improvement Proposal (EIP) 1559. This significant change has led to the continuous burn of the base fee portion of a transaction fee on the Ethereum network, around the clock, each day.
Current figures reveal a total of over 3.46 million ether has been burned since the London hard fork. Given the prevailing ETH exchange rates, the overall worth of the obliterated ether adds up to .68 billion. This equates to a monthly average of more than 146,000 ether being destroyed since EIP-1559 came into effect.
To give a sense of scale, the sum of .68 billion worth of ether burned could enable a person to purchase roughly 19,085 single-family homes, each estimated at an average price tag of 0,000. EIP-1559 paved the way for a deflationary technique in Ethereum, steadily diminishing the total ETH supply.
Regular ETH transfers have contributed most significantly to the Ethereum reduction, incinerating nearly 300,000 ETH. Opensea’s non-fungible token (NFT) transactions have witnessed over 230,000 ether burned, while Uniswap v2 has led to the destruction of close to 200,000 ether.
Transactions involving Tether have wiped out over 150,000 ETH, and combined, Uniswap v3 and v1 have caused the burning of more than 200,000 ETH. At the time of writing, an estimated 120,201,621 ETH is making its rounds in circulation, holding a worth around the 2.53 billion mark.
Post the implementation of EIP-1559, a little over 3 million ethereum has been minted. It’s been 304 days since The Merge on September 15, 2022, the transition when the Ethereum network pivoted from a proof-of-work (PoW) blockchain to a proof-of-stake (PoS) blockchain.
Had The Merge not transpired, the network would have generated 6.5 million ether. Moreover, if the chain remained a PoW model and shunned the implementation of EIP-1559, an additional 9.9 million ETH would be contributed to the existing 120 million ETH in circulation.
As Ethereum continues to chart its deflationary path, how do you think it will influence the future of this network? Share your thoughts and opinions about this subject in the comments section below.
VC Company A16z Expands to London to Take Advantage of Friendly Web3 Regulation
A16z, a tech-focused venture capital company, has announced that it will open its first office in London to take advantage of the friendly regulatory environment in the U.K. Prime Minister Rishi Sunak stated he was thrilled about this expansion and that the U.K. would continue to embrace innovations like Web3, powered by blockchain tech.
A16z to Open First Office in London Later This Year
A16z, a tech and Web3 venture capital company, has announced that it will expand to London to take advantage of the friendly regulatory environment. Chris Dixon, general partner and founder of A16z Crypto, explained that the company had been working with different policymakers, finding a receptive attitude in the U.K.
About this, Dixon stated:
It has become clear that the U.K. government sees the promise of Web3. U.K. authorities are also willing to work with the industry to create policies that incentivize startups to pursue decentralization.
In this sense, Dixon explains that policymakers in the U.K. are taking “an approach that is uniquely tailored to blockchain and digital asset regulation,” identifying the traits and possibilities of Web3 technology while also putting customer protection at the forefront.
The office, which will be opened later this year, will be led by Sriram Krishnan, a general partner, and will focus on building the startup and cryptocurrency ecosystem in the U.K., taking it as an entrance to Europe.
A16z clarified that it remains invested in the U.S. and is willing to push for clear regulations in the crypto environment.
Government Support
Rishi Sunak, prime minister of the U.K., welcomed A16z’s expansion into the country, stating he was thrilled to receive it and also about its decision to “open their first international office in the U.K. – which is testament to our world-class universities and talent and our strong competitive business environment.”
On the role of these technologies in the development of the U.K, Sunak declared:
As we cement the UK’s place as a science and tech superpower, we must embrace new innovations like Web3, powered by blockchain technology, which will enable start-ups to flourish here and grow the economy.
The expansion announcement comes after several legal actions were exerted by the U.S. Securities and Exchange Commission (SEC) against two behemoth cryptocurrency exchanges, Coinbase and Binance. Several lawmakers, including Sen. Cynthia Lummis, have stated these actions are taking cryptocurrency companies and innovation out of the U.S. and into countries like China.
What do you think about A16z’s expansion to London? Tell us in the comment section below.
London Stock Exchange’s LCH SA to Clear Bitcoin Futures and Options on GFO-X Through New Service
On April 13, 2023, the London Stock Exchange’s LCH division, a clearing house group serving major international exchanges and a wide range of over-the-counter (OTC) markets, announced its plans to offer clearing of bitcoin index futures and options contracts traded on GFO-X. Frank Soussan, the business lead at LCH Digital Asset Clear, stated during the announcement that “bitcoin index futures and options are a rapidly growing asset class.”
LCH SA’s Move to Clear Bitcoin Futures and Options Contracts Reflects the Growing Interest Among Institutional Market Participants
A division of the London Stock Exchange (LSE) will clear bitcoin index futures and options contracts, according to a statement from LSE’s clearing house arm, LCH SA. Subject to regulatory approval, the contracts will stem from GFO-X and be part of a newly created segregated clearing service called LCH Digital Asset Clear.
Developed by GFO-X and approved by the U.K.’s Financial Conduct Authority (FCA), the bitcoin contracts will be cash-settled through LCH Digital Asset Clear and use metrics from the GFO-X/Coin Metrics Bitcoin Reference Rate (GCBRR). As the world’s largest derivatives clearinghouse, LCH SA’s move to clear bitcoin futures and options expands the firm’s market presence.
Frank Soussan, Head of LCH Digital Asset Clear business, said in a statement that “bitcoin index futures and options are a rapidly growing asset class with increasing interest among institutional market participants seeking access within a regulated environment they are familiar with.” He added that “offering centralized clearing for these cash-settled dollar-denominated crypto derivatives contracts on GFO-X is an important development for the market.”
LCH’s entry into bitcoin-related products occurs as BTC is up 80% since the last day of 2022. Additionally, on April 7, onchain analytics provider Glassnode revealed that for the first time, “the amount of open interest in bitcoin options contracts (.3B) has surpassed that held in futures contracts (.0B). Futures OI has been relatively flat in 2023. This results from significant call option buys, as investors start to speculate on higher [bitcoin] prices,” Glassnode explained.
What impact do you think the entry of LCH SA into bitcoin derivatives clearing will have on the institutional adoption and mainstream acceptance of cryptocurrencies? Share your thoughts about this subject in the comments section below.
Moscow City Crypto Exchanges Ready to Send Cash to London, Report
An investigation into digital asset exchanges in the Russian capital has established that some of them are ready to buy digital coins and deliver paper money in the U.K. The transfer of funds does not usually involve the identification of the clients, Transparency International Russia reveals in a report.
Russia-based Cryptocurrency Exchanges Swap Stablecoins for British Cash
Russian crypto exchanges that can transfer money abroad without following know-your-customer (KYC) procedures and anti-money laundering (AML) are in the focus of a study conducted by the Russian Chapter of Transparency International. The results were presented in a new report published on Wednesday.
The association’s researchers were able to identify more than 20 coin trading platforms operating from Moscow International Business Center, commonly referred to as Moscow City. Through conversations with operators, they also found that eight of them were ready to exchange U.S. dollar-pegged stablecoins for British pounds and hand over the cash to recipients in London.
The authors noted that one of them is Suex, a crypto broker blacklisted by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) in September, 2021 for facilitating ransomware-linked transactions. They also add that a platform called Pridechange sent significant amounts of money to Garantex, another blacklisted exchange with offices in Moscow City.
The way the transfers were made was similar in all cases. First, a customer needs to send the amount in tether (USDT) to a wallet address provided by the exchange. Once the payment is confirmed, the operator would dispatch a courier, usually a Russian speaker, to a specified location in London to deliver the fiat cash on the same or the following day.
U.K. anti-money laundering regulations require cryptocurrency exchanges to be registered and carry out customer due diligence checks. None of the Russian platforms ever asked to verify the identity of Transparency’s undercover representatives, despite the amounts of money exceeding 10,000 British pounds (,000).
During its communication with the crypto exchanges, the organization obtained the crypto addresses used for these transfers. The transaction history shows that the average monthly amount of money passing through such wallets ranges between 0,000 and 0,000. The estimate is based only on the USDT turnover while usd coin (USDC), another stablecoin, was also used.
“The results of our study suggest that at least a few shadow OTC crypto exchanges operate in the U.K. and are ready to provide cash without performing necessary KYC procedures… The full scale of this activity may be unknown, but it is obviously not insubstantial and deserves closer scrutiny,” an excerpt of the report concludes.
Do you think Russians are actively using these channels to transfer funds abroad amid financial restrictions over the Ukraine war? Share your thoughts on the subject in the comments section below.
London Crowned World’s Leading Cryptocurrency Hub, According to Study
According to research from Recap, a cryptocurrency tax software company, London has become the world’s leading hub for cryptocurrencies. The researchers analyzed eight indicators, including the number of cryptocurrency businesses and the quantity of cryptocurrency ATMs in each country.
Key Findings of Recap’s Study on Global Cryptocurrency Hubs
Crypto tax firm Recap released a research report on Jan. 25, 2023, highlighting the top global cryptocurrency hubs, with London named the “most crypto-ready city.” Recap used criteria from eight elements, including the number of cryptocurrency businesses and employees, research and development spending compared to each city’s GDP, the number of cryptocurrency ATMs, cryptocurrency ownership, and capital gains tax rates.
Recap’s report details that London has the most people employed in the cryptocurrency industry compared to other global regions. The city is home to over 800 cryptocurrency-based companies and hosted the second-highest number of cryptocurrency-related events and conferences in 2022. The report states that London’s lead aligns with U.K. prime minister Rishi Sunak‘s goal to establish the United Kingdom as the world’s hub for cryptocurrency technology and investment.
London is followed by Dubai, the most populous city in the United Arab Emirates, as the second largest cryptocurrency hub. According to Recap’s study, Dubai’s appeal as a residence for cryptocurrency investors is due to its 0% tax rate. The study notes that Dubai has 772 cryptocurrency-based companies. New York is the third largest hub, with 843 firms specializing in cryptocurrency and blockchain technology. The American city is also home to the largest investment in cryptocurrency research and development.
“Crypto assets have grown massively over the past few years, and are becoming increasingly interlinked with the regulated financial markets, and the fact that so many cities are embracing it is a positive sign,” said Daniel Howitt, co-founder and CEO of Recap, commenting on the latest study. “London being the world’s leading crypto hub is good news for the government’s plans to make the U.K. a ‘global hub for crypto-asset technology and investment.’”
London, Dubai, and New York are followed, in order, by Singapore, Los Angeles, Zug, Hong Kong, Paris, Vancouver, and Bangkok. “Hong Kong, Paris, Vancouver, and Bangkok complete the top ten due to low capital gains tax, high volume of crypto ATMs, and the number of people in the crypto field,” Recap’s researchers note. “Interestingly, San Salvador in El Salvador, came 41st in the table with only ten people working in crypto-based jobs – but is the only place where bitcoin is considered a legal tender. Residents are able to spend it like currency as shop prices are also quoted in bitcoin (BTC),” the study’s researchers add.
You can check out Recap’s research report in its entirety here.
What do you think sets London apart as the world’s leading cryptocurrency hub, and do you believe this trend will continue in the future? Let us know your thoughts about this subject in the comments section below.
Ethereum Scarcity: After London Fork, ETH’s Supply Change Drops To Almost Zero
On-chain data shows Ethereum supply is barely changing anymore following the London hard fork. This means ETH is becoming a scarce asset now.
Following London Fork, Ethereum Supply Rate Of Change Drops To Nearly Zero
As pointed out by a CryptoQuant post, ETH’s supply curve has nearly flattened now as rate of change drops to almost zero. This has made the asset scarce.
The Ethereum supply indicator tells us about the total amount of ETH that’s currently in circulation. As miners receive a block reward (in ETH) for mining blocks, this total supply increases with time.
A related metric, the Ethereum supply rate of change shows how fast or slow the total circulating supply is going up.
How ETH’s supply works is different from Bitcoin; the latter has its total potential supply locked from the beginning. This means that there can come a point when miners will run out of BTC to mine.
Ethereum has no such limit so miners can indefinitely keep it up and the supply will keep on increasing. This would be problematic for the crypto as it will result in higher volatility.
The London hard fork exists to tackle this issue. As you know, to complete a transaction on the ETH network, you need to pay gas fees. This fees was originally given to miners. who put these coins back into circulation. But since the London fork, the fees is “burned,” and miners no longer receive it.
Related Reading | Discord Planned To Integrate Ethereum. Huge Backlash Made Them Cancel Everything
Now, what happens is that burning acts as a sort of deflationary measure as it reduces the total supply. Miners still mine ETH, but burning makes up for the amount mined.
Here is a chart that shows what effect the London Fork has had on Ethereum’s supply:
ETH’s supply curve seems to be flattening | Source: CryptoQuant
As you can see in the above graph, the rate of change of the Ethereum supply has dropped off to nearly zero following the EIP-1559 launch.
This has lead to a flattening of the total circulating supply. Now, ETH is also becoming a scarce asset, just like Bitcoin. A limited supply can push the price of the crypto up due to demand-supply dynamics.
Related Reading | Ethereum Miner Revenue Outpaces Bitcoin In 2021
ETH Price
At the time of writing, Ethereum’s price floats around .57k, up 2% in the last seven days. Over the past month, the crypto has gained 30% in value.
The below chart shows the trend in the price of the coin over the last five days.
Ethereum’s price has crashed in the last few days after setting a new all-time high | Source: ETHUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com
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Ethereum London Hard Fork: What Went Wrong? Core Devs Review It
Ethereum pushes further into previous highs north of the ,000. The second cryptocurrency by markets cap recently received a major upgrade, implemented via the “London” Hard Fork.
This changed the network’s entire fee model and, according to some experts, has attracted new investors into the market. Thus, the main cryptocurrencies by market cap have seen renew bullish momentum.
In a recent call, Ethereum Core developers discussed the hard fork and talked about their priorities for the coming months. Core developer Tim Beiko summarized the main points discussed on the call and the roadmap for the next six months.
In a previous post, Beiko said that the hard fork went “smoothly” overall. However, client teams highlighted certain aspects of the pre and post-London process.
It is a bit early to make a final call given that we're still early in the merge work itself, but definitely something we will follow up on in the coming weeks/months.
— Tim Beiko | timbeiko.eth (@TimBeiko) August 20, 2021
First, the client teams said that the “speed and lack of clear success metric” for the testnet to mainnet deployments have been an issue. Ethereum client teams feel the process is “quick”, “somewhat forced”, and with a lack of agility to react to problems.
Thus, they proposed 4 solutions to improve this issue. First, developers and clients should agree on a specific period that a testnet must meet to be declared successful and implemented on a mainnet.
In addition, they proposed to pre-defined the path to be taken if a problem or bug is encountered. Once a fixed has been implemented, the testnet would need to run for more weeks to declared it successful.
To complement the above proposition, the client teams believe an “automated alert” system could be implemented to operate if an issue is found on a testnet. Alongside a “checklist of required infrastructure for testnet forks”.
The Road To Ethereum 2.0, Merge On The Horizon
Once the Ethereum London Hard Fork was rollout on the mainnet, Beiko said, client teams found it hard to see the changes “actually implemented” besides those described in the EIPs.
Thus, they also proposed to “leave enough time” for client teams to explore the tooling and infrastructure aspects of a hard fork. In that way, they can “help design the non-consensus interfaces”.
Despite that the hard fork, and probably its more important update, EIP-1559, were successfully introduced, developers agreed that they will make more improvements over time. Ethereum core developer Beiko said:
Every team mentioned that, in addition to the consensus changes introduced by the merge, they have a lot of work to do on their clients to improve performance, modularize their architecture to support proof of stake, and onboard new developers.
Core developers and client teams agreed to postpone the difficulty bomb, the increase in the network complexity of puzzles for its Proof-of-Work chain, and add “other one-line changes”. Other EIPs will be rollout on the mainnet after the Merge.
The latter refers to the event that will allow the beacon chain, the network’s Proof-of-Stake blockchain, to be combined with its Proof-of-Work blockchain. Beiko added:
(…) there was some conversation on the call about what to do about the various EIPs which are “pending”. We discussed potentially adding them into the first fork after the Merge, but it’s something we need to do more serious planning around.
At the time, Ethereum (ETH) trades at ,264 with a 6.5% profit in the 24-hour chart.
ETH on a rally in the daily chart. Source: ETHUSD Tradingview
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