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Genesis Global Capital Seeks Court Approval For $1.6 Billion Asset Sale: Report

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In a pivotal move to navigate its ongoing bankruptcy proceedings, cryptocurrency lending firm Genesis Global Capital has formally requested permission from the U.S. Bankruptcy Court in the Southern District of New York to sell approximately $1.6 billion worth of trust assets. The assets in question primarily consist of shares in various Grayscale trusts, including the Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust, and Grayscale Ethereum Classic Trust.

Renowned crypto journalist Colin Wu, through Wu Blockchain, brought attention to the detailed filing submitted by Genesis, a subsidiary of the Digital Currency Group. The filing unveils the composition of the assets slated for sale, with approximately $1.4 billion tied up in Grayscale Bitcoin Trust shares, an additional $165 million in Grayscale Ethereum Trust, and roughly $38 million in Grayscale Ethereum Classic Trust. Genesis has also sought to expedite the process, urging the court to address the sale motion at its next session scheduled for February 8.

This strategic move aims to optimize the value return for the company’s creditors and stakeholders amid the complex landscape of bankruptcy. Genesis’s decision to liquidate these assets follows its prior involvement in the cryptocurrency lending space, including collateral transferred to Gemini as part of the Gemini Earn program and assets acquired through the bankruptcy of Three Arrows Capital. Notably, the sale also encompasses efforts to legally reclaim 31,180,804 additional shares, valued at approximately $1.2 billion, previously pledged to Gemini but not transferred, pending a court decision on their ownership.

Genesis Sparks Industry Response

Responses to this initiative have come from various parties, including Gemini, which has labeled the filing as a significant step forward. This development gains additional significance following the recent approval of the Grayscale Bitcoin Trust as an exchange-traded product (ETP) on January 10, potentially impacting the valuation and liquidity of the assets up for sale.

Amid these strategic maneuvers, Genesis recently agreed to settle a lawsuit with the Securities and Exchange Commission (SEC) involving the payment of a $21 million fine, contingent upon the funds available post-bankruptcy. The lawsuit pertained to the operation of the Gemini Earn program, underscoring the regulatory hurdles faced by Genesis amidst its financial restructuring efforts.

The proposed asset sale emerges as a critical component of Genesis’s broader strategy to address financial challenges and meet obligations to creditors. By liquidating holdings in the Grayscale trusts, Genesis aims to capitalize on current market conditions and regulatory developments, optimizing the recovery for its stakeholders in this dynamic chapter of the cryptocurrency landscape.

Shiba Inu Soars to Headlines with Exclusive Coverage on New SHIB ETF

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The Shiba Inu community is actively discussing the potential introduction of a Shiba Inu (SHIB) Exchange-Traded Fund (ETF), as revealed in the tenth edition of SHIB Magazine. This conversation is gaining momentum, especially after recent approvals for Exchange-Traded Fund (ETF) products linked to spot Bitcoin (BTC). This development has sparked interest within the cryptocurrency community, prompting a broader exploration of ETFs as a bridge to traditional finance.

The pursuit of ETFs is not a new phenomenon in the cryptocurrency space. Going back to 2013, Cameron and Tyler Winklevoss, the founders of the Gemini exchange, attempted to launch a spot BTC ETF but faced persistent challenges. Similarly, Grayscale’s effort to transform its Grayscale Bitcoin Trust into a spot ETF was rejected by the U.S. SEC, despite the agency approving BTC futures ETFs.

A significant shift occurred in June, highlighted by BlackRock, the world’s largest asset manager, filing for a spot BTC ETF. This move prompted other traditional financial institutions such as VanEck, Fidelity Investments, and WisdomTree to follow suit with their own filings. After several revisions, the U.S. ultimately approved spot BTC ETFs, marking a significant step in the integration of cryptocurrencies into mainstream traditional finance.

Spotting Opportunities: Shiba Inu’s Foray into the Envisaged SHIB ETF

While recent attention has been focused on Ethereum and XRP, the latest edition of SHIB Magazine has sparked discussions surrounding the potential introduction of a Shiba Inu ETF. The magazine’s cover prominently features the question “Wen SHIB ETF,” generating curiosity and optimism within the community. Despite the absence of a dedicated section on this prospective investment product in the latest release, community members are asking, “Why not?” Shiba Inu, recognized as a legitimate and decentralized digital asset, has actively taken steps to move away from its meme coin image.

Initiatives like Shibarium (the layer-2 network), SHIB Metaverse (the metaverse project), and SSI (the digital ID project) highlight Shiba Inu’s commitment to reshaping its overall perception. The persistent community advocacy for the introduction of a SHIB ETF on various social media platforms indicates a growing interest in the potential realization of such a product. While some industry commentators express skepticism about its viability in the short term, the success of ongoing initiatives could position SHIB as a contender for investment vehicles like spot-based ETFs in the future.

Unlike certain cryptocurrencies facing challenges with classification as securities or commodities, SHIB holds a favorable standing, never having been accused of being a security by the SEC. Reflecting on the dynamic nature of the crypto industry, it is worth noting that even Bitcoin encountered skepticism when discussions first emerged about a spot BTC ETF.

Regardless of the timing, the introduction of a spot SHIB ETF could further solidify Shiba Inu’s legitimacy within the mainstream financial landscape. As the community eagerly awaits further developments, the Shiba Inu project remains on track to achieve broader recognition and acceptance.

Charting Crypto’s Transformative Trajectory: 5 Key Highlights From 2023

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2023 emerged as a pivotal year in the dynamic landscape of the crypto industry, marking a shift from the turbulence of 2022. Five key charts shed light on the transformative journey of cryptocurrencies over the past year, according to the recent report from the Block.

Crypto Chart Chronicles Of 2023

Firstly, the Grayscale Bitcoin Trust (GBTC) witnessed a remarkable narrowing of its discount to Net Asset Value (NAV). Following Grayscale Investments’ triumph against the SEC in August, the GBTC discount dropped below 10% for the first time since July 2021. This trend, a significant departure from the historic premium, reflects growing optimism regarding the potential approval of a spot bitcoin ETF in the U.S.

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Contrastingly, Binance faced a challenging year as its legal and regulatory troubles unfolded. In November, the U.S. authorities settled a criminal investigation with Binance, resulting in a historic $4.3 billion penalty. Former CEO Changpeng Zhao’s guilty plea and subsequent resignation further compounded the exchange’s woes. Binance’s market share among non-USD exchanges dwindled from over 70% to around 46% by the year’s end, signaling a significant setback.

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Meanwhile, the stablecoin USDC, issued by Circle, experienced a squeeze in its market share. Starting the year with a 32% share, USDC faced a depegging from the U.S. dollar in March, leading to a 15% drop in its market cap within 24 hours. The subsequent months witnessed a continued erosion of USDC’s market share, falling to 19% by the end of the year, with USDT strengthening its dominance.

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Bitcoin, traditionally not associated with NFTs, played a crucial role in the resurgence of the NFT sector. The Bitcoin Ordinals protocol, introduced in January 2023, allowed users to engrave NFTs directly onto the blockchain, leading to a transaction surge. Bitcoin-based NFTs accounted for around 59% of the peak weekly NFT trading volume, revitalizing the NFT market.

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Closing the year on a positive note, the crypto market rebounded from the challenges of 2022. Bitcoin’s value surged by 160%, while Ether witnessed a 94% increase from its position a year ago. Solana emerged as the top performer among the top ten cryptocurrencies, experiencing a staggering 1,000% gain.

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However, the industry continues to evolve, promising more developments in the year ahead as the crypto community anticipates the potential approval of a spot Bitcoin ETF and the upcoming Bitcoin halving event in 2024.

Related Reading | XRP’s Trader Foresees Potential Dip Before Anticipated Surge

Ark Invest Sells More Coinbase Shares; Wraps Up GBTC Exit

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Remaining steadfast in their commitment, Ark Invest, under the guidance of Cathie Wood, made strategic moves in their portfolio by selling an additional 148,885 shares of Coinbase, amounting to approximately $27.5 million, on December 27. Concurrently, Ark Invest also liquidated its entire stash of Grayscale Bitcoin Trust [GBTC] worth $200 million on Dec. 28, revealed Bloomberg ETF analyst Eric Balchunas. This strategic maneuver is part of the firm’s ongoing efforts to recalibrate its fund weightings.

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Ark Invest Sells More Coinbase Shares; Wraps Up GBTC Exit 8

Delving deeper into the specifics, Ark Invest exhibited a sophisticated strategy in managing its portfolio, where the ARK Next Generation Internet ETF [ARKW] opted to part ways with Coinbase shares. The rationale behind this decision is in line with Coinbase’s remarkable 54.6% surge in value over the last month.

Meanwhile, half of the proceeds from the GBTC sale, equivalent to approximately $100 million, were employed by the prominent AUM to venture into Bitcoin Futures ETF Bito. Nonetheless, experts in the field of ETFs suggest that this move serves as a transient placement for the investment firm, to seek a portfolio with enhanced liquidity. According to Eric Balchunas, an ETF analyst at Bloomberg, Ark’s complete divestment from GBTC has positioned it as the second-largest holder of Bito.

Ark Invest CEO Spills Trade Strategy

Ark Invest also positioned itself by acquiring 4,320,928 units of the ProShares Bitcoin Strategy ETF [BITO], a U.S. bitcoin futures-linked ETF. Notably, institutional players, including Ark Invest, eagerly await SEC approval for the first-ever spot Bitcoin ETF filing.

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Source: YouTube

In a recent interview, Cathie Wood shed light on Ark Invest’s strategic moves, including the earlier sale of $13 million worth of Grayscale Bitcoin Trust [GBTC] and the ongoing divestment of $200 million in Coinbase shares. Wood explained that these actions are driven by portfolio management considerations. She highlighted the positive performance of Bitcoin this year and the closing of the discount relative to Net Asset Value [NAV] for GBTC, constituting a dual impact on appreciation.

Wood Further commended the SEC’s evolving stance on cryptocurrency. She emphasized the regulator’s shift from outright denials to active discussions as a positive development, signifying a deepened understanding of relevant issues.

Cathie Wood’s Ark Invest Continues Selling Spree: Offloads $27.8 Million

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In a move that continues its recent trend, Cathie Wood’s Ark Invest reportedly sold additional shares of both Coinbase and Grayscale Bitcoin Trust (GBTC) on Wednesday. According to the company’s latest trade filing, Ark offloaded 180,422 Coinbase shares, equivalent to $24.3 million, and 99,595 GBTC shares, amounting to $3.5 million.

ARK Invest Unloads $27.8 Million in Coinbase & GBTC Shares

Breaking down the Coinbase sales, Ark sold 12,474 shares worth $1.7 million from its Fintech Innovation ETF, 5,369 shares valued at $723,000 from its Next Generation Internet ETF, and a substantial 162,579 shares amounting to $21.9 million from its Innovation ETF.

This follows the trend set earlier in the week, with Ark selling $33.3 million worth of COIN on Tuesday and $1.4 million on Monday. In total, the investment management firm has divested $59 million in Coinbase shares from its funds this week, with an additional $15 million sold the previous week.

As of the latest market close, Coinbase stock was priced at $134.63, marking a 7% increase over the past week, a 55% surge over the past month, and an impressive 269% year-to-date gain. This ascent has propelled Coinbase to its highest level in 18 months, according to data from TradingView.

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Source: Tradingview.com

Simultaneously, Ark Invest’s selling spree extended to GBTC shares, with 99,595 shares, equivalent to $3.5 million, offloaded from its Next Generation Internet fund. This follows the sale of 168,127 GBTC shares totaling $5.9 million on Tuesday. GBTC shares closed at $34.92, reflecting a 14% increase in the last week, a 28% gain over the past month, and an astounding 325% year-to-date surge, according to TradingView.

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Source: TradingView

The price appreciation of GBTC shares correlates with the recent surge in the underlying value of bitcoin, which has witnessed a 16% increase over the last seven days, a 25% uptick over the past month, and a remarkable 166% surge year-to-date, currently trading at approximately $43,309.

Ark’s decision to sell GBTC shares aligns with the recent narrowing of GBTC’s discount to net asset value (NAV). The discount, which measures the difference between the market price of each share and the value of the bitcoin it represents, has decreased from over 40% in June to approximately 11%, as reported by YCharts.

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Source: YCharts

Related Reading |  Solana (SOL) Primed To Surpass $100: Arthur Hayes Forecasts Weekend Altcoin Surge

Ripple’s Chief Legal Officer Unveils Troubling Pattern In SEC’s Crypto Lawsuits

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In a recent development, Stuart Alderoty, the lead attorney for Ripple, has openly criticized the U.S. Securities and Exchange Commission (SEC) via social media platform X, pointing out what he perceives as inconsistencies and inadequacies in the SEC’s management of cryptocurrency-related cases. This critique comes amid ongoing legal battles where courts have criticized the SEC for its methods and decisions.

Coinbase, a prominent cryptocurrency exchange, is currently embroiled in a significant dispute over ambiguous crypto regulations with the US Securities and Exchange Commission (SEC). Earlier this year, Coinbase filed a Mandamus petition to obtain regulatory clarity. However, the SEC dismissed the claims made by Coinbase, citing a lack of evidence to support their allegations. 

In the Grayscale v. SEC case, the SEC faced criticism for treating similar products termed “arbitrary and capricious.” Moreover, in the recent case against Debt Box, the court instructed the SEC to justify potential sanctions for making false and misleading representations. Billionaire Mark Cuban also highlighted this case in a recent X post.

https://twitter.com/mcuban/status/1730627392635339025

Ripple’s Legal Head Slams SEC’s Actions

Concerning the Grayscale conflict, the SEC rejected the firm’s petition to convert its Grayscale Bitcoin Trust (GBTC) to a physically backed product. Alderoty emphasized the court’s scrutiny of the SEC’s “inconsistent treatment of similar products.”

In recent social media posts, Alderoty expanded his discontent and criticized the SEC’s broader strategy. He referenced a Wall Street Journal article that showcased the Supreme Court’s repeated rulings against the SEC, describing the agency as “bloated, broken, and beleaguered.”

Ripple’s top lawyer specifically scrutinized the SEC’s actions against Kraken, questioning the timing and approach, particularly criticizing the term “crypto asset securities,” which he argues lacks legal basis. His posts echo mounting frustration with the SEC’s strategies and its apparent inability to adapt to the rapidly evolving cryptocurrency landscape.

These critical comments from Ripple’s legal representative, disseminated across social media, underscore growing concerns within the cryptocurrency industry regarding the SEC’s regulatory approach. As legal battles persist and criticisms escalate, the rift between regulatory bodies and cryptocurrency entities appears to deepen, casting uncertainties over the future of crypto regulation in the United States.

FTX Receives Approval to Liquidate $873 Million in Assets for Debt Settlement

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Insolvent cryptocurrency exchange FTX has been approved to initiate the sale of approximately $873 million in trust assets, aiming to repay creditors impacted by the company’s 2022 bankruptcy. A recent filing in a Delaware bankruptcy court on November 29 allows the exchange’s debtors to proceed with selling trust assets using their best business judgment and adhering to established selling processes.

FTX’s plan involves the liquidation of assets in a manner that maximizes value while minimizing market disruption for digital investments. The assets, valued at $807 million and $66 million, originate from FTX’s holdings in trusts issued by custodial service provider Bitwise and cryptocurrency asset management firm Grayscale Investments.

This decision comes nearly four weeks after exchange debtors sought permission from Judge John Dorsey to sell six cryptocurrency trusts, including the Bitwise 10 Crypto Index Fund, Grayscale Bitcoin Trust, and Grayscale Ethereum Trust.

FTX’s Recovering Assets

The exchange administrators, tasked with navigating a complex web of debts owed to various creditors since the exchange filed for bankruptcy amid fraud claims last year, have been actively seeking and recovering assets. The recovered assets, according to court filings, amount to nearly $7 billion, including $3.4 billion in cryptocurrency.

FTX, once among the world’s largest trading platforms, faced insolvency in November of the previous year following revelations about the precarious balance sheet of its sibling trading firm, Alameda Research, led by Sam Bankman-Fried.

Despite the challenges, FTX administrators have successfully retrieved significant assets, and the recent approval to sell assets for debt settlement has positively impacted the value of the FTX token (FTT), causing it to surge by 8%.

Meanwhile, Sam Bankman-Fried awaits sentencing in March 2024 after a recent guilty verdict on seven counts of charges. Currently held at Brooklyn’s Metropolitan Detention Center, his potential sentence could extend up to 115 years.

Coinbase Stock: ARK Invest Offloads $5.2 Million Amidst 18-Month High

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ARK Invest, a firm that has sought approval for a spot in the Bitcoin exchange-traded fund (ETF), has once again opted to take profits on its Coinbase shares amidst a surge in the stock price.

On November 27, ARK executed the sale of 43,956 Coinbase shares from its ARK Fintech Innovation ETF, as per a trade notification observed by Cointelegraph. At the time of the sale, the company’s stock reached $119.7 per share, translating to a transaction value of $5.3 million, according to data from TradingView.

The surge in the company’s stock price came after rival exchange Binance and its former CEO, Changpeng Zhao, pleaded guilty to money laundering and sanctions violations in the United States on November 21, 2023.

Over the past year, Coinbase’s stock has witnessed a 168% increase, surging over 220% since January 2023, according to TradingView data. Despite this impressive growth, the stock is still down approximately 70% from its all-time high of $319 in September 2021, a few months after its trading launch in April 2021.

Coinbase holdings already have the investments of ARK

ARK has been actively divesting its Coinbase holdings throughout 2023. In October, Cathie Wood’s investment firm sold 63,675 Coinbase shares from its ARK Next Generation Internet ETF (ARKW), amounting to $5.1 million.

Before this, ARK had engaged in significant Coinbase stock sales in July 2023, when the stock was trading around $90. According to ARK’s trading data, the firm offloaded over $103 million in Coinbase shares during that period.

In addition to Coinbase, ARK has been divesting Grayscale Bitcoin Trust (GBTC) stock. On November 24, ARKW sold 94,624 GBTC shares for around $3 million, following the sale of nearly 700,000 GBTC shares in the preceding month.

Contrary to speculation, Bloomberg’s ETF analyst Eric Balchunas clarified on X (formerly Twitter) on November 27 that ARK’s sale of GBTC is not indicative of a lack of bullish sentiment toward Bitcoin or an effort to make room for its forthcoming spot Bitcoin ETF with 21Shares. Balchunas emphasized that ARK is likely adjusting its portfolio to maintain desired weightings by selling winners and vice versa.

While divesting from Coinbase and GBTC, ARK has acquired crypto-related stock shares. On November 27, ARKF acquired 252,421 crypto-friendly banking app SoFi shares. ARK has purchased a total of 1.6 million SoFi shares, valued at $11 million at current prices. ARK has also been accumulating shares of the crypto-friendly investment app Robinhood, with a $1.1 million purchase on November 8.

Ark Invest Forge New Frontier With 5 New ETFs: Details

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Cathie Wood’s Ark Invest has joined forces with 21Shares, to introduce five new Exchange-Traded Fund [ETF] products. This collaboration is set to usher in a wave of investment opportunities, including Bitcoin and Ethereum futures contracts, as well as products focusing on stocks of companies deeply entrenched in the blockchain industry. The prospective ETFs, pending approval, are slated to be launched on the Chicago Board Options Exchange [Cboe], as outlined in the prospectuses released by the companies.

Among the innovative products on the horizon is an ETF that will not only delve into crypto futures contracts but also invest in a diverse range of assets, including “public equities of companies engaged in the blockchain industry,” according to details available on 21Shares’ official website. Ark Invest, a prominent player in the asset management sphere, has underscored that these new funds will provide investors with a comprehensive array of options for integrating exposure to digital assets into their investment portfolios.

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Ark Invest Forge New Frontier With 5 New ETFs: Details 13

Leveraging on-chain signals and their extensive experience in the crypto domain, the suite of products aims to achieve long-term capital appreciation through strategic investments in Bitcoin and Ethereum futures contracts, coupled with the application of cutting-edge blockchain technologies, according to statements released by 21Shares.

Crucially, Ark Invest has emphasized that these funds will not provide a direct avenue for investors to venture into the realm of digital assets. The firm clarified that neither the funds nor the underlying ETF will directly invest in Bitcoin or other digital assets, nor maintain direct exposure to spot Bitcoin. Ark Invest has advised potential investors seeking direct exposure to the price of Bitcoin to explore alternative investment options outside of these funds.

Ark Invest’s Financial Maneuvers

Notably, Ark Invest has been making significant moves in the financial market recently. The company recently made a substantial investment in Robinhood [HOOD], a prominent U.S.-based financial services company. This strategic acquisition followed Robinhood’s announcement of its plans to expand its operations in Europe. Additionally, Ark Invest has streamlined its portfolio by divesting substantial holdings, selling over 42,000 shares of Coinbase and 100,000 shares of Grayscale Bitcoin Trust.

These divestitures amounted to nearly $6 million, marking a strategic reshuffling of the company’s investments. As Ark Invest continues to navigate the ever-evolving landscape of digital assets and blockchain technology, its partnership with 21Shares and the introduction of these innovative ETF products signal a forward-thinking approach to investment opportunities in the digital age.

Ark Invest’s Market Maneuvers: Offloads $6M Coinbase & GBTC Shares

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Ark Invest, the global asset manager, has recently divested significant holdings, unloading more than 42,000 shares of Coinbase and 100,000 shares of Grayscale Bitcoin Trust [GBTC], according to an update from the firm’s trading desk. Out of the 42,613 shares of Coinbase, Ark’s Next Generation Internet ETF [ARKW] sold 32,158 shares, and Ark Fintech Innovation ETF offloaded 10,455 shares. Additionally, ARKW also sold 100,739 GBTC shares. Considering the latest closing prices of Coinbase at $77.21 and GBTC at $24.71, these sales amounted to nearly $6 million.

Ark Invest
Ark Invest's Market Maneuvers: Offloads $6M Coinbase & GBTC Shares 15

This liquidation coincides with a market-wide rally fueled by Bitcoin, which recently surged past the $35,000 mark, reaching a multi-month high. Bitcoin’s bullish momentum, surging by an impressive 23% over the past seven days, was sparked by anticipation surrounding the potential approval of spot Bitcoin exchange-traded funds [ETFs]. Notably, BlackRock’s highly anticipated spot Bitcoin ETF, the iShares Bitcoin Trust, made an appearance on a list maintained by the Depository Trust and Clearing Corporation, hinting at imminent approval.

In the competitive landscape of spot Bitcoin ETFs, Ark Invest, led by Cathie Wood, has emerged as a frontrunner. In June 2021, Ark Invest submitted its first application for the Ark21Shares ETF in collaboration with Swiss ETF provider 21Shares AG. If approved, this BTC ETF will be listed on Cboe’s BZX Exchange under the symbol ARKB.

Ark Invest Set To Chart New Course

Despite Ark Invest’s proactive approach, the U.S. Securities and Exchange Commission [SEC] has extended its evaluation of the Ark 21Shares Bitcoin exchange-traded fund application. The SEC continues to assess applications from traditional financial giants like BlackRock and Fidelity Investments. However, recent court rulings in cases involving GBTC and Ripple/XRP against the US regulator have infused the market with a newfound sense of optimism.

Presently, Bitcoin is trading at around $34,660, reflecting a remarkable 22% increase over the last seven days, as per data derived from prominent price tracker site CoinMarketCap. As the cryptocurrency market continues to evolve, investors are closely monitoring these developments, anticipating potential shifts in market dynamics and the regulatory landscape that could influence future investment decisions.