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BlackRock’s Bitcoin ETF Attracts Wall Street Banks With Cash Option

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BlackRock, the world’s largest asset manager, has made a significant change to its proposed spot bitcoin exchange-traded fund (ETF) that could appeal to Wall Street banks. The change allows authorized participants (APs) – the entities that create and redeem ETF shares – to use cash instead of bitcoin.

This is a big deal because regulatory constraints prohibit most U.S. banks from holding cryptocurrencies. By using cash, they can bypass this hurdle and become APs for BlackRock’s Bitcoin ETF if it gets approved by the U.S. Securities and Exchange Commission (SEC). APs play a crucial role in the ETF ecosystem, ensuring the fund’s price stays close to its underlying asset’s value.

Banks such as JPMorgan or Goldman Sachs, which have some of the largest balance sheets in the world, could potentially act as APs for BlackRock’s Bitcoin ETF if they are interested. This would increase the liquidity and efficiency of the fund and the exposure and adoption of bitcoin.

The cash option does not mean that BlackRock’s Bitcoin ETF will not hold any Bitcoin. Rather, it means that the cash used by the APs will be converted into bitcoin by an intermediary and stored by the fund’s custody provider, according to a memo filing related to a Nov. 28 meeting between the SEC, BlackRock, and Nasdaq.

The intermediary will execute the Bitcoin transactions and manage the associated risks, such as price volatility, security breaches, and regulatory compliance. The custody provider will protect the bitcoin and ensure its accessibility and auditability.

BlackRock’s Bitcoin ETF Approval Prospects

BlackRock’s bitcoin ETF is one of several spot bitcoin ETFs that are awaiting approval from the SEC, which has so far rejected or delayed all such proposals. However, there is growing optimism that the regulator will finally greenlight a spot bitcoin ETF, as it has recently approved several bitcoin futures ETFs.

A spot bitcoin ETF would be a game-changer for the digital assets industry, as it would allow retail investors to access bitcoin directly without having to deal with the complexities and risks of buying and storing the cryptocurrency themselves. It would also boost the legitimacy and popularity of Bitcoin, as well as its price and market capitalization.

BlackRock’s cash option could give it an edge over its competitors, as it could attract more APs, especially from the banking sector, which has been largely reluctant to embrace cryptocurrencies. This could make BlackRock’s Bitcoin ETF more liquid, stable, and attractive to investors.

Related Reading | El Salvador’s Bitcoin Bonds “Volcano Bonds” Cleared For Launch In Early 2024

“Tether Fan” Cantor Fitzgerald’s CEO Cheers $90B Worth Stablecoin

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Cantor Fitzgerald CEO Howard Lutnick recently expressed his strong endorsement for the stablecoin issuer Tether [USDT], declaring himself a “big fan” of the stablecoin issuer. In a recent interview with CNBC, Lutnick shared his positive sentiments, revealing that he holds Tether’s treasuries. He emphasized the substantial size of USDT’s treasuries, which currently exceed $90 billion, solidifying his admiration for the stablecoin.

I’m a big fan of this stablecoin called USDT…I hold their treasuries, and they have a lot of treasuries. They are over $90 billion now… I’m a big fan of Tether.

Tether
"Tether Fan" Cantor Fitzgerald's CEO Cheers $90B Worth Stablecoin 2

Cantor Fitzgerald, a renowned Wall Street bond trading powerhouse, is responsible for managing Tether’s impressive $39 billion bond portfolio. As a privately held firm led by Howard Lutnick, Cantor Fitzgerald holds a prominent position among the well-known bond trading houses on Wall Street and operates as one of the 25 primary dealers for U.S. Treasurys, allowing direct trading access with the Federal Reserve.

This endorsement from Cantor Fitzgerald is particularly noteworthy given the historical reluctance of other Wall Street firms to extend services to Tether.

In a recent development, the leading stablecoin provider introduced a new policy on December 9, 2023, aimed at enhancing the security and reliability of its tokens. Under this policy, wallets associated with sanctioned individuals or entities on the OFAC SDN List will be frozen. The cryptocurrency community has responded with mixed reactions, with some commending the crypto firm for its proactive and responsible approach, while others criticize the stablecoin for perceived opacity and lack of trustworthiness.

CEO Reacts On Tether’s New Policy

Tether’s CEO, Paolo Antonio, defended the policy, framing it as a strategic decision aligned with their commitment to upholding the highest safety standards for the stablecoin ecosystem. Antonio emphasized that the policy is designed to prevent potential misuse of the tokens, fostering a safer and more positive utilization of stablecoin technology.

As of December 10, 2023, the stablecoin issuer maintains its position as the most popular and widely used stablecoin, boasting a market capitalization exceeding $90 billion. Tether’s tokens, backed by reserves of U.S. dollars and other assets, serve diverse purposes, including trading, remittance, payment, and hedging.

Ethereum Staking Gets A Boost With SSV.Network’s Permissionless Launch

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Ethereum staking has entered a new era with the permissionless launch of SSV.Network, which is a stake infrastructure that leverages Distributed Validator Technology (DVT). The launch marks a significant milestone for the Ethereum community, offering a more secure, decentralized, and accessible way of staking ETH.

DVT is a novel technology that allows ETH validators to split their stake into smaller fragments and distribute them across multiple nodes. This increases the security and resilience of the validators, as they are less vulnerable to single points of failure or malicious attacks. DVT also enhances the decentralization of the Ethereum network, as it diversifies the validators’ clients, locations, and infrastructures.

SSV developed DVT.Network, a community-owned open protocol that aims to create a new standard for Ether staking. SSV.Network provides a robust, permissionless infrastructure enabling anyone to stake, build, and operate on its platform. Permissionless staking network also offers a holistic solution that supports zero-collateral node operations, seamless staking, and diverse staking applications.

SSV.Network has opened its doors to the public after three years of intensive development and testing. The permissionless launch means anyone can join the network and participate in the DVT infrastructure. Whether you are a validator, a node operator, or a staker, you can benefit from the many advantages that DVT offers.

DVT’s Impact On Ethereum Staking

SSV.Network and DVT can potentially transform the Ether staking landscape and strengthen the Ethereum ecosystem. By making staking more secure, decentralized, and accessible, SSV.Network and DVT can increase the participation and diversity of the Ethereum community. This can improve the health and performance of the Ethereum network, as well as enable new and innovative staking use cases.

SSV.Network has already attracted much attention and support from the Ethereum community. Since its gradual rollout in September 2023, the network has amassed more than $160M in staked value by 74 node operators. Moreover, over 2,200 validators are now using SSV’s DVT-based infrastructure. With the permissionless launch, SSV.Network expects to see more growth and adoption as it establishes itself as the preeminent solution for Ether staking.

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Cardano’s November Shake-Up: 98.1% Drop In Small Wallets

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Blockchain analyst firm Santiment recently revealed that Cardano (ADA) experienced an unexpected exodus of small wallets on November 17th. The data indicated that 98.1% of the affected wallets held between 1 and 10 ADA, shedding light on a potential shift in market sentiment.

The sudden drop in addresses of this size category is often interpreted as a signal of capitulation, a phenomenon where investors give in to market pressures and sell their holdings. In this case, the subsequent performance of ADA suggests a notable recovery, with the cryptocurrency witnessing a remarkable +65% surge since the reported wallet exodus.

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As of the latest available data, Cardano is currently trading at $0.591388, reflecting a 24-hour trading volume of $1 billion, marking an 11% increase. Over the past 24 hours, ADA has seen a positive movement of 5.78%, contributing to a weekly gain of 30.51%, according to the charts from CoinMarketcap.

ADA 7D graph coinmarketcap 9

Cardano’s standing in the cryptocurrency market remains robust, securing the #8 position on CoinMarketCap with a market cap of $20,892,357,782. The circulating supply of ADA coins is reported at 35,327,674,538, while the maximum supply is capped at 45,000,000,000 ADA coins.

This recent data paints a dynamic picture of Cardano’s market behavior, with the sudden loss of smaller wallets acting as a point of intrigue for investors. The subsequent surge in ADA’s value suggests that the cryptocurrency may have weathered the storm and is poised for a positive trajectory in the near term. 

Cardano Performance and Price Prediction

Over the past 30 days, Cardano (ADA) has exhibited a mixed performance in the cryptocurrency market. Out of the total days, 17 have seen positive gains, constituting 57% of the observed period. This suggests a relatively favorable trend, albeit accompanied by fluctuations. The price volatility during this timeframe is recorded at 15.58%, indicating a certain degree of instability in the market.

According to the latest price prediction provided by Changelly, Cardano is anticipated to experience a modest increase in value. The forecast suggests a rise of 1.41%, projecting the coin’s value to reach $0.573470 by December 14th, 2023.  Technical indicators further reinforce a positive outlook for Cardano, as they signal a bullish market sentiment. Specifically, an 80% bullish signal has been identified, indicating prevailing optimism among market participants. 

Related Reading | Binance’s Turbulent Year: Declining Market Share & Regulatory Headwinds

Avalanche (AVAX) Surpasses Bitcoin: A 200% Yearly Performance Triumph

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Avalanche (AVAX) has emerged as a frontrunner in the cryptocurrency race, outperforming Bitcoin with an extraordinary 200%+ yearly return, according to data from IntoTheBlock. While Bitcoin has been leading the market charge this year, AVAX has not only held its ground but has surpassed expectations.

Despite the recent downturn in the broader crypto market, AVAX has demonstrated resilience, clocking in a remarkable 39% weekly gain while others faced declines. The monthly chart paints an even more impressive picture, with AVAX boasting a staggering 94.36% increase. This bullish momentum comes at a time when the cryptocurrency markets are facing bearish pressures.

AVAX 1M graph coinmarketcap 4
CoinMarketcap

JPMorgan Chase & CitiBank Join Forces with Avalanche

Analyzing on-chain data provides insights into the factors driving AVAX’s surge. The past month has seen a strategic focus on two key narratives by Avalanche – real-world assets (RWAs) and GameFi, signaling a forward-looking approach ahead of 2024. Notably, the Avalanche Foundation’s recent collaborations with traditional financial giants such as JPMorgan Chase and CitiBank have propelled the cryptocurrency into the spotlight.

These strategic partnerships aim to leverage Avalanche and its blockchain subnets for the development of real-world asset (RWA) projects. Additionally, the Avalanche Foundation has unveiled the Avalanche Vista fund, a substantial $50 million commitment dedicated to RWA research and development.

Ryan McMillin, Chief Investment Officer at Merkle Tree Capital, believes that the excitement surrounding AVAX can be attributed to these strategic collaborations with financial heavyweights. JPMorgan and Citi partnering with the Avalanche Foundation for their RWA tokenization initiatives has sparked enthusiasm in the crypto community.

Mcmillin points out:

More recently, the strength of AVAX looks to be associated with a spike in daily transactions from around $200,000 to $4.5 million over the last couple of days. Daily active addresses have also seen a solid trend to the upside.

Moreover, Henrik Andersson, the Chief Investment Officer at Apollo Crypto, shed light on the undervaluation of AVAX by wider market standards. Andersson highlighted that a few weeks ago, Avalanche boasted a higher TVL than Solana, with only a quarter of the market cap. 

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Avalanche (AVAX) Surpasses Bitcoin: A 200% Yearly Performance Triumph 7

Although TVL still remains higher, the market cap has now halved compared to Solana. Expressing optimism, Andersson predicted a market scenario in 2024 where certain altcoins, such as Immutable (IMX) and Synethix, could outperform Bitcoin.

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Crypto Cracks Down: IRS Reveals Top Crypto Offenders Of 2023

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In a recent report released by the criminal investigation unit of the United States Internal Revenue Service (IRS), four cryptocurrency-related cases have been highlighted as the “most prominent and high-profile investigations” of 2023. According to CI Chief Jim Lee, these cases involve billions of dollars in fraud, global victims, and criminals driven solely by personal gain.

Crypto Cases Take Center Stage

Among the top crypto cases, Amir Bruno Elmaani, also known as Bruno Block, the founder of the cryptocurrency Oyster Pearl, has been sentenced to 48 months in federal prison. Elmaani faced charges related to tax offenses committed in connection with the Pearl token. He used friends and family as nominees to receive cryptocurrency proceeds, failing to file a tax return and falsely reporting no income to the IRS in 2018. The tax loss resulting from Elmaani’s conduct amounted to approximately $5.5 million.

Another case involved James Zhong, who was sentenced to one year and one day in prison for wire fraud. Zhong unlawfully obtained around 50,000 bitcoins from the Silk Road dark web marketplace in 2012, executing a complex scheme over a decade to conceal his activities. As part of the sentencing, Zhong forfeited over $3.4 billion in cryptocurrency, his 80% interest in RE&D Investments LLC, $661,900 in seized U.S. currency, and gold and silver bars and coins from his home.

Ian Freeman, a New Hampshire man, received a sentence of 96 months in prison for operating a Bitcoin money laundering scheme. Freeman exchanged over $10 million in proceeds from romance scams and internet fraud for Bitcoin, creating a business that catered to fraudsters by turning off anti-money laundering features on his Bitcoin kiosks. Freeman also failed to register his business with the Financial Crimes Enforcement Network and instructed Bitcoin customers to lie about their deposits.

Lastly, Karl Sebastian Greenwood, co-founder of the multibillion-dollar cryptocurrency scheme OneCoin, was sentenced to 20 years in prison. Greenwood, along with Ruja Ignatova, orchestrated the massive OneCoin fraud scheme, leading to millions of victims investing over $4 billion in the fraudulent cryptocurrency. Greenwood was ordered to pay approximately $300 million in forfeiture.

However, these cases underscore the IRS’s commitment to pursuing and dismantling criminal activities within the cryptocurrency space, emphasizing the importance of enforcing tax regulations and combating fraud on a global scale.

Related Reading | Binance’s Turbulent Year: Declining Market Share & Regulatory Headwinds

Binance Challenges SEC’s Case: Asserting Irrelevance Of $4.3B Settlement

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On December 12th, Binance submitted documents to the U.S. District Court for the District of Columbia, vehemently contesting the Securities and Exchange Commission’s (SEC) attempt to bolster its case against the cryptocurrency exchange. The exchange argues that the $4.3 billion settlement agreement reached with the Department of Justice (DOJ) and the Financial Crimes Enforcement Network (FinCEN) is not directly relevant to the SEC’s charges.

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On December 8th, the SEC claimed that Binance Holdings Ltd.’s settlement agreement with the DOJ and others supports its lawsuit, urging the court to consider admissions made in the settlement by Binance CEO Changpeng Zhao (CZ). However, the exchange and CZ are now pushing back, filing a response challenging the SEC’s assertions.

Binance’s Response to SEC’s Notice

According to the latest filing, the SEC’s “Notice of Supplemental Authority” is labeled as procedurally improper and impermissible. The exchange contends that the SEC’s notice fails to establish the relevance of the resolutions with the DOJ and FinCEN to the SEC’s claims against Binance and CZ. Binance argues that the SEC’s attempt to introduce new factual information and arguments through the notice is reason enough to disregard it.

Furthermore, Binance refutes the SEC’s use of the resolutions to counter The exchange’s fair-notice argument. The filing highlights that the SEC’s reliance on the resolutions to establish violations of the Bank Secrecy Act does not address whether there was fair notice of the SEC’s theory regarding the classification of crypto assets as securities. Binance argues that the SEC is attempting to conflate different statutory schemes, emphasizing the lack of notice regarding regulatory authority.

The filing delves into the extraterritoriality aspect, asserting that the SEC misunderstands the territorial reach of securities laws. The exchange challenges the SEC’s invocation of factual admissions, stating that they do not establish that relevant transactions occurred in the United States. The argument is that the SEC’s claims lack plausibility, and the SEC is attempting to benefit from other agencies’ resolutions under a different statutory regime.

The exchange urges the court to disregard the SEC’s notice, emphasizing that it neither supports the SEC’s claims nor undermines its arguments for dismissal. However, the legal battle between Binance and the SEC continues to unfold, with both parties vigorously presenting their perspectives before the U.S. District Court.

Related Reading | Cardano: Stable December with $0.561 Average Price

El Salvador’s Bitcoin Visa: Citizenship for the Crypto Elite

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El Salvador’s National Bitcoin Office (ONBTC) has revealed that its $1 million Freedom Visa program has generated significant interest, attracting hundreds of inquiries and “many dozens of applications” since its launch on December 7th. The program, offered in partnership with stablecoin issuer Tether, grants a residency visa and pathway to citizenship for 1,000 individuals willing to invest $1 million in Bitcoin or Tether.

According to a spokesperson for ONBTC, the program has received a surge of applications both online and through embassies and consulates. The spokesperson commented: “Based on the current level of interest, we expect the program to sell out by the end of the year.”

The Freedom Visa program is limited to 1,000 participants per year, with a $1 million price tag causing some to raise concerns about its competitiveness. Some market commentators, such as Altana Digital Currency CIO Alistair Milne, argue that the program is considerably pricier compared to similar visa programs offered by other countries, with Malta offering full European citizenship for just $810,000.

However, ONBTC maintains that the $1 million price tag for the Freedom visa is justified, stating,

“If anything, in fact, it is actually underpriced. While there are many citizenship programs available in the world, there is only one BTC Country.”

Attracting Bitcoiners with Pro-BTC Policies

Despite its high price point, the Freedom visa program could still appeal to BTC enthusiasts seeking a residency or citizenship option in a pro-BTC environment. President Nayib Bukele has been a vocal advocate for Bitcoin adoption, implementing numerous policies since September 2021, including:

  • Recognizing BTC as legal tender
  • Removing capital gains taxes for Bitcoin investors
  • Scrapping taxation for tech and crypto firms operating in El Salvador

Bukele recently stepped down as president to focus on his reelection campaign in February 2024. It remains to be seen if the next administration will continue Bukele’s pro-BTC policies and how the Freedom Visa program will evolve.

Overall, El Salvador’s Freedom Visa program has generated significant interest, highlighting the growing demand for Bitcoin-friendly jurisdictions. While the program’s high price point may deter some, its unique offering could still attract Bitcoin-focused individuals seeking residency or citizenship in a nation embracing Bitcoin as legal tender.

The program’s success or failure will depend on various factors, including the future of Bukele’s leadership and the overall adoption of Bitcoin and cryptocurrencies. Regardless, the Freedom Visa program marks a significant step in El Salvador’s ongoing efforts to position itself as a leading Bitcoin nation.

Donald Trump’s 3rd NFT Drop Comes With Exclusive Dinner Date

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Former President Donald Trump has recently unveiled his third installment of “Mugshot NFT Edition,” with each digital collectible priced at $99. This latest offering has garnered attention for its distinctive feature: owners of 47 Mugshot NFT cards stand a chance to win a dinner with the ex-president at his Mar-a-Lago estate, along with a fragment of the navy suit Trump wore during his August arrest, a historic moment as it marked the first time a former US president had a mugshot taken.

The genesis of this NFT collection lies in Trump’s arrest on charges related to his alleged interference in the 2020 presidential election in Georgia. Subsequently, he underwent standard processing at Fulton County Jail, known for its harsh conditions. The widely circulated mugshot captured during this event became a historic image, symbolizing an unprecedented moment in American political history.

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Donald Trump's 3rd NFT Drop Comes With Exclusive Dinner Date 10

Donald Trump’s latest venture has stirred discussions within the community, with some viewing it as a transformative moment. This set distinguishes itself from its predecessors by introducing a physical element to the otherwise digital realm. While this move by Trump is noteworthy, the linkage between NFTs and physical items is not groundbreaking.

Donald Trump’s “Phygital” Pivot

Over the past year, both digital fashion startups and established fashion houses have embraced the fusion of collectible NFTs with tangible products, coining the term “phygital” to describe this phenomenon. Major fashion brands like Louis Vuitton, Dior, Gucci, and Balmain have capitalized on phygital collections as a strategy to engage a broader audience, including those who may not fully appreciate purely digital items.

In adopting this approach, Donald Trump seems to be following in the footsteps of these fashion powerhouses, leveraging the latest technology to appeal to his fan base. However, the immediate aftermath of this announcement saw a significant downturn in the floor prices of Trump’s first two NFT trading card collections, plummeting by 30% and 41%, respectively, according to NFT Price Floor. The long-term success of this strategy remains uncertain, but for now, collaborations between NFTs and physical merchandise appear to resonate positively within the NFT market.

Binance’s Turbulent Year: Declining Market Share & Regulatory Headwinds

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Binance, the world’s leading cryptocurrency exchange by market volume, has experienced a significant decline in its spot market share. The company, helmed by founder and CEO Changpeng “CZ” Zhao, faced a series of regulatory challenges that ultimately led to substantial legal settlements and a shake-up in its leadership.

According to data provided by CCData, Binance’s spot market share in December stands at 30.1%, a stark contrast to the 55% it held at the beginning of the year. The decline is part of a larger trend, with monthly spot volumes plummeting by over 70% from $474 billion in January to $114 billion in September. Despite this, Binance has seen a resurgence in monthly trading volumes since September, even as its market share continued to slide.

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Binance's Turbulent Year: Declining Market Share & Regulatory Headwinds 12

Binance Faces Setbacks & $4 Billion Settlement

The pivotal moment for Binance came in November when the company, along with its now-former CEO CZ, agreed to a substantial settlement of nearly $4 billion to resolve a lawsuit filed by the U.S. Commodity Futures Trading Commission (CFTC). Separate settlements with the U.S. Department of Justice and the Treasury Department accompanied this agreement.

The regulatory challenges were not the only obstacles faced by Binance, as the company witnessed a wave of executive departures throughout the year. Key figures, including Chief Strategy Officer Patrick Hillmann, Senior Director of Investigations Matthew Price, and U.K. Chief Jonathan Farnell, parted ways with the cryptocurrency giant.

Despite the decline in spot trading market share, Binance remains the largest cryptocurrency exchange by a considerable margin. Currently holding 30% of the market, Binance’s closest competitor is Seychelles-based OKX, which has seen its market share grow from around 4% at the start of the year to 8% in December, according to CCData.

However, the trend is consistent when examining combined spot and derivatives trading. Binance’s market share in this category dropped to 42% from 60%, while OKX experienced a notable increase from 9% to 21%.

As the exchange navigates the challenges posed by regulatory scrutiny and internal changes, the cryptocurrency industry watches closely to see how the exchange will adapt and whether it can regain lost ground in the competitive market.

Related Reading | FTX Fights Back Against IRS’s $24 Billion Tax Claim