Over the past week, bitcoin has slid 6.6% while ethereum has lost 5.5% against the U.S. dollar, but a large handful of alternative digital assets saw much bigger losses this past week. The meme coin dogwifhat (WIF) was the week’s biggest loser shedding 31.2% while notcoin (NOT) lost 24.3% this week. Cryptocurrency Meltdown: Broad Losses […]
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SEC Chair Gensler: Spot Ether ETFs ‘Will Take Some Time’ to Begin Trading
U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has stated that spot ethereum exchange-traded funds (ETFs) “will take some time” to commence trading, highlighting the necessity for a thorough disclosure process. Additionally, Gensler emphasized the lack of proper disclosure provided by crypto exchanges to investors. Spot Ether ETFs ‘Will Take Some Time’ The chairman […]
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SEC Chair Gary Gensler’s Social Media Post Led Some to Believe He Was Resigning
U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler’s social media post expressing that “it’s been an honor to serve” as SEC chairman sparked speculation within the crypto community that he might be resigning from his position. Many people, including lawmakers, have criticized Gensler for taking an enforcement-centric approach to regulating the crypto industry. Gary […]
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While Some Think Bitcoin’s 12th-Largest Wallet Hides a Nation State, Onchain Data Shows an Exchange
This week, the crypto community on social media has once again been buzzing about a bitcoin wallet called ‘Mr 100’ following a significant deposit of 100 bitcoin on April 10, 2024. Despite numerous assertions that the wallet is associated with the South Korean cryptocurrency exchange Upbit, a faction continues to believe that it is owned […]
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Indian Finance Minister Says Crypto Assets Cannot Be Currencies — Expects ‘Some Framework Emerging’ From G20 Discussion
Indian Finance Minister Nirmala Sitharaman has stated that it is the position of the Indian government that crypto assets cannot be currencies, which are issued by central banks. She clarified that crypto assets can be used for trading, speculation, profit-making, and various other purposes. Moreover, she noted that India has raised the issue of crypto […]
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Ethereum Rollups Start Reaping Dencun Benefits: 99% Fee Drops Reported in Some Cases
Ethereum rollups, the layer 2 scaling structures, have started reaping the benefits of the recently applied Dencun upgrade. The update, which included EIP-4844, also known as Proto-Danksharding, has allowed transaction fees to decrease by 99% in some cases, with Arbitrum, Base, Optimism, and Starknet becoming cheaper across the board. Ethereum Dencun Upgrade Reduced Rollup Fees […]
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Bitcoin Rally Still Has Some Legs Left, Santiment Explains Why
The analytics firm Santiment has explained that the current Bitcoin rally could still have some legs left, based on this on-chain trend.
Bitcoin & Ethereum Leave Exchanges, While Tether Sees Deposits
In a new post on X, Santiment has discussed the recent trends in the Supply on Exchanges for the three largest assets in the cryptocurrency sector: Bitcoin (BTC), Ethereum (ETH), and Tether (USDT).
The “Supply on Exchanges” here refers to a metric that keeps track of the percentage of the total circulating supply of any given coin that’s currently sitting in the custody of the centralized exchanges.
When the value of this metric goes up, it means that the investors are depositing their coins to these platforms currently. On the other hand, a decline implies net withdrawals are occurring on the exchanges right now.
What these trends suggest for the given asset and the sector as a whole depends on the type of cryptocurrency it is in question. In the case of volatile coins like Bitcoin and Ethereum, net deposits can be a sign that investors are looking to sell these assets, which can naturally have a negative impact on their prices.
Since the altcoins generally only see a rotation of capital through these largest cryptocurrencies, a bearish trend for them can have a domino effect on their prices as well.
Withdrawals for these volatile coins, on the contrary, can be bullish for the market, as they imply the investors are perhaps looking to hold onto their tokens for extended periods.
Now, here is a chart that shows the trend in the Supply on Exchanges for Bitcoin and Ethereum over the past year:
As displayed in the above graph, the Bitcoin and Ethereum Supply on Exchanges have continued their downtrend following the spot ETF approvals for BTC a few weeks back.
In the same chart, Santiment has also attached the data of the indicator for Tether. It would appear that while BTC and ETH have seen supply move off exchanges, USDT has observed net deposits.
The largest stablecoin in the sector has witnessed around 4% of its entire supply shifting to these platforms over the last five weeks, which has taken the indicator’s value to the highest point in almost ten months.
Investors use stablecoins whenever they want to escape the volatility associated with assets like BTC and ETH. Such holders who seek safe haven in these fiat-tied tokens instead of fiat itself, though, usually plan to return back to the volatile side of the cryptocurrency sector eventually.
Deposits of stablecoins can, therefore, be a sign that these investors want to buy back into Bitcoin and others. As such, the sector could see a bullish effect from this dry powder being deployed by the stablecoin holders.
“The increase in buying power implies that the mid-term 3+ month #bullcycle (starting back in October) could still have some legs, particularly with just 79 days until the #Bitcoin halving, estimated to occur on April 18th,” notes the analytics firm.
BTC Price
Bitcoin has made some notable recovery over the last few days as its price has now broken back above the ,300 mark.
Grayscale Updates Spot Bitcoin ETF Application but Left out Some Key Information
Crypto asset management firm Grayscale Investments has updated its spot bitcoin ETF filing in hope of being included in the initial round of decisions by the U.S. Securities and Exchange Commission (SEC). However, the firm has omitted some key information that the SEC reportedly wants included in the filing, which several other asset managers have disclosed, including details relating to authorized participants.
Grayscale Files 3rd Amendment to Spot Bitcoin ETF Filing
Most asset managers seeking to launch a spot bitcoin exchange-traded fund (ETF) updated their applications with the U.S. Securities and Exchange Commission (SEC) on Friday, which was the deadline given by the regulator for amended filings. Grayscale filed the third amendment to its S-3 filing to convert its bitcoin trust (GBTC) into a spot bitcoin ETF on Friday.
Commenting on Grayscale’s amended filing, Bloomberg ETF analyst Eric Balchunas shared on social media platform X Tuesday:
New Grayscale amendment just dropped. Clear language on cash only but still no AP [authorized participant] named, just blanks where name should go. Not sure why since SEC wants to see it and they have been pretty cocksure about having one.
The analyst further pointed out that there was nothing about the fee in Grayscale’s amended filing that he could see. The firm’s authorized participant agreement is found in Exhibit 4.5 of the filing.
The SEC reportedly required spot bitcoin ETF applicants to submit updated filings by last Friday to be considered in the initial round of decisions. The first deadline is Jan. 10 for Ark Invest and 21shares’ joint filing. However, some expect the SEC to make a decision before that date.
While Grayscale did not name any authorized participants, CEO Michael Sonnenshein insisted that his company has lined up some authorized participants a long time ago. In an X post on Dec. 29, he wrote: “Been in this game a long time … we’ve had APs lined up since 2017.” He referenced a news article published in June 2022 stating that Grayscale would work with Jane Street and Virtu Financial as authorized participants should the SEC approve GBTC’s conversion into a spot bitcoin ETF.
Meanwhile, several other spot bitcoin ETF applicants have named their authorized participants in their filings, including Blackrock, the world’s largest asset manager, which named Jane Street and JPMorgan. Wisdomtree, Fidelity, and Valkyrie also named Jane Street while Invesco/Galaxy named Virtu and JPMorgan.
After initially rejecting Grayscale’s spot bitcoin ETF proposal, the SEC faces a court order to reevaluate it. Grayscale and several other spot bitcoin ETF applicants want to use the in-kind creation model for their spot bitcoin ETFs but the SEC is adamant about using the cash creation method. Grayscale then adopted the cash method in its second amendment. The company also recently announced the resignation of Barry Silbert from its board of directors.
Do you think Grayscale will be among the first companies to be approved for spot bitcoin ETFs by the SEC? Let us know in the comments section below.
Franklin Templeton’s Executive Expects All Nations to Hold Bitcoin — ‘Every Country Is Going to Have to Hold Some Reserves’
An executive at trillion-dollar asset manager firm Franklin Templeton expects bitcoin to become “something that every treasury needs to hold.” She believes that “every country is going to have to hold some reserves,” emphasizing that the cryptocurrency is “working its way increasingly into the traditional banking ecosystem as just a foundational part of that system.”
Kaul: Bitcoin Could Be Used as Base Unit of International Trade
Franklin Templeton’s senior vice president and head of Digital Asset and Industry Advisory Services, Sandy Kaul, discussed the future outlook for bitcoin in an interview with Natalie Brunell, published Thursday. Before joining Franklin Templeton, Kaul held positions at Shearson Lehman Brothers, Citi, and Goldman Sachs Asset Management.
A global leader in investment management with a presence in over 150 countries and serving millions of clients, Franklin Templeton reported .37 trillion in assets under management at the end of September. The asset manager has also applied to launch a spot bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC).
Regarding the broader adoption of bitcoin and the potential for nation states to embrace it, the executive said: “I think you’re already starting to see that.” She explained that less developed nations combine “some of their buying power around bitcoin” and use it “as a way to compete more effectively with bigger companies and bigger countries and bigger economies.” Emphasizing, “I think you’ll see more of that,” Kaul stressed:
I think also that it’s going to become something that every treasury needs to hold because portions of their business will just be facilitated more easily through bitcoin payments than through foreign exchange conversions that need to happen to enable cross-border trade today.
While noting that a lot of people see promises in central bank digital currencies (CBDCs) as “there will be a lot of efficiencies that get created by them,” she argued: “But those are going to still require all of that translation, and exchange rate risk that you carry in moving from country to country whereas a bitcoin is a bitcoin in every country.”
Kaul opined: “So I do still think that the potential to see this used as the base unit of international trade exists. I think at a minimum you are gonna see it used for certain types of trade.” She asserted:
That means that every country is going to have to hold some reserves and so I just see it working its way increasingly into the traditional banking ecosystem as just a foundational part of that system.
She concluded: “I think the question then just becomes: ‘Over time do people start to gravitate more to something that works globally and isn’t tied to any government’s policies? And that I think we’ll have to see play out. But intuitively, it feels like it absolutely could.”
Do you agree with Franklin Templeton’s head of digital asset research? Let us know in the comments section below.
Lightspark’s CEO David Marcus Recognizes Current Non-Custodial Lightning Network Solutions Imply ‘Some Form of Compromise’
David Marcus, co-founder and CEO of Lightspark, an institutional Lightning Network (LN) payment solutions provider, referred to the state of custodial and non-custodial transactions on the network. While Marcus believes that custodial LN for institutions is ready for prime time, he acknowledged that non-custodial usage still implies compromising on some features.
Lightspark’s David Marcus: Lightning Network ‘Works Well’ for Institutional and Custodial Settings
David Marcus, co-founder and CEO of Lightspark, a Lightning Network (LN) payments solution provider, has referred to the state of custodial and non-custodial payments using Bitcoin’s Layer 2 scaling solution. On X, Marcus reiterated his belief in Bitcoin as the only cryptocurrency that can serve as the base for a worldwide payments network.
Marcus stated:
Bitcoin is the only viable neutral settlement asset and network that can usher in a new era of global real-time payments. Everything else is either too centralized, not secure enough, doesn’t have the required regulatory clarity, or doesn’t have the required depth of liquidity.
Lightspark is based on this premise, seeking to allow institutions and customers to harness the power of the Bitcoin network but using LN to avoid high fees with near-instant transaction finality. According to Marcus, this task has been challenging, having previously stated that it was “incredibly complex and hard to build software around this protocol.”
Nonetheless, the company has managed to build a suite of tools and protocols that have simplified the use of LN for institutions in custodial scenarios. Marcus stated that the company has focused on this part of the market due to the volumes moved, seeking to have the most significant impact in the short and medium-term scenarios.
Non-Custodial LN Problems
The current situation with high on-chain fees and how some wallets manage channels and user payments have awakened the debate on the usefulness of non-custodial LN solutions when the base layer suffers from congestion.
Marcus specifically outlined two challenges: receiving payments offline and reducing the fees for opening channels for smaller transactions. While some solutions are in the works for tackling these difficulties in the future, he acknowledged that current non-custodial LN users had to face tradeoffs.
Marcus declared:
To be blunt, if you want full support for non-custodial Lightning with offline receive and want to make it economically viable, you have to accept some form of compromise on the trustlessness level of the solution.
Even after recognizing this, Marcus is bullish on the future, stressing Bitcoin is on the brink of becoming the internet’s money protocol and achieving mass adoption.
What do you think about David Marcus’ opinions on the current state of non-custodial LN payments? Tell us in the comments section below.