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Vanguard Takes Stand: No Spot Bitcoin ETFs, No Crypto Products

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Vanguard, a leading U.S. fund management company, has reinforced its anti-cryptocurrency position by announcing its refusal to allow users to purchase spot Bitcoin ETFs on its platform. According to a recent report from Axios, the firm will no longer accept the acquisition of cryptocurrency products, including Bitcoin futures ETFs

The move signifies the company’s steadfast commitment to distancing itself from the growing trend of cryptocurrency investments, even as other major players on Wall Street, such as BlackRock, Invesco, and Fidelity, are embracing the digital asset space with their own branded bitcoin ETFs.

A spokesperson for Vanguard stated:

In addition to spot Bitcoin ETFs not being available for purchase on the Vanguard platform, effective immediately, Vanguard will no longer accept the purchase of cryptocurrency products, including Bitcoin futures ETFs.

The spokesperson emphasized that this strategic shift allows Vanguard to concentrate on providing a core set of products and services in line with its commitment to serving the needs of long-term investors.

The company’s decision follows a recent social media uproar where purported customers expressed dissatisfaction with the unavailability of the newly introduced cryptocurrency offerings on the platform. The move is consistent with its historical investment philosophy, rooted in the principles of its late founder, Jack Bogle, which prioritize simple, low-cost investing over speculative ventures.

Better Markets Applauds Vanguard’s Integrity in Refusal

Dennis M. Kelleher, Co-founder, President, and CEO of Better Markets, commended Vanguard’s refusal to offer spot Bitcoin exchange-traded products, stating:

Bravo Vanguard! One of the biggest and most well-known fund issuers and money managers in the world is to be commended for putting its investors’ best interest first.

Kelleher characterized crypto as a “worthless, useless, speculative, volatile, and criminal-preferred financial product,” supporting the company’s perspective that it does not align with its focus on traditional asset classes like equities, bonds, and cash.

The Better Markets statement urged other financial firms to follow Vanguard’s lead, emphasizing the risks of integrating crypto into the core of traditional financial and banking systems and citing concerns about systemic crashes and bailouts. However, this decision stands out as a testament to its commitment to investor protection, market integrity, and financial stability in the face of a rapidly evolving financial landscape.

Related Reading | South Korea’s FSC Issues Crypto Warning Amid U.S. Bitcoin ETF Surge

XRP Weekend Watch: Anticipating Ripple’s Price Movement

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Ripple (XRP) is mirroring the prevailing positive sentiment in the cryptocurrency community following the approval of the inaugural spot Bitcoin ETF. This has resulted in a broad positive shift in the market, with XRP witnessing an 8% increase and reaching a peak of $0.612. At the time of reporting, it was trading at $0.6091. Investors are now pondering the sustainability of this optimistic trend throughout the weekend. According to Changelly, Ripple is set for a bullish run in the coming days, with a projected high of $0.766554 on Sunday, indicating a substantial 34% surge from its current value.

The recent surge in XRP’s value is attributed to the prevailing positive sentiment in the cryptocurrency market, spurred by the approval of the Bitcoin ETF. As investors consider the weekend ahead, Changelly’s positive forecast contributes to the overall optimistic outlook for Ripple. If the anticipated 34% surge materializes, it could mark a significant milestone for the altcoin, potentially attracting increased interest and investment.

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XRP Weekend Watch: Anticipating Ripple's Price Movement 2

XRP Transaction Raises Questions: Investigation Underway

The positive mood in the market has brought attention to a significant transaction involving 22 million XRP, valued at around $13.13 million. Originating from Upbit, the leading cryptocurrency exchange in South Korea, this substantial transfer quickly caught the eye of the widely used blockchain transaction tracker, Whale Alert. The movement of this considerable amount to an undisclosed wallet has sparked speculation and inquiries within the Ripple community, leading to questions about the purpose behind the transfer.

Upon closer examination of the transaction, it becomes apparent that the recipient’s wallet was established in September 2023. The received Ripple was swiftly distributed across major exchanges, including Binance, Bitget, Bybit, and BingX. The current balance of the recipient’s wallet slightly exceeds 951,723 XRP. This distribution pattern adds an element of intrigue to the transaction, prompting the community to speculate on potential strategies or motives guiding this move.

Speculation Grows with Predicted Consequences

As the XRP community delves into discussions and conjectures surrounding the significant transfer, diverse theories emerge, ranging from strategic moves by influential holders to potential market maneuvers. The repercussions of such substantial transfers often extend beyond the immediate transaction, shaping both market dynamics and sentiment.

Moreover, the approaching weekend holds promise for Ripple (XRP), as indicated by optimistic forecasts from Changelly, envisioning a potential surge that could reshape perceptions of this altcoin. While the community eagerly anticipates the outcome, the sizable transfer of 22 million XRP from Upbit introduces an element of curiosity and discussion to the narrative. Investors and enthusiasts are advised to stay vigilant, closely observing both market trends and any further developments that might influence the trajectory of XRP in the upcoming days.

Hong Kong’s Proactive Regulation Of Stablecoins Signals Strategic Crypto Hub Ascent

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Hong Kong is taking steps to regulate the issuance and marketing of stablecoins, a form of digital currency that is pegged to a fiat currency. The Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau (FSTB) published a consultation paper on the proposed regulatory framework for stablecoin issuers on December 27, 2023.

The move is part of the jurisdiction’s efforts to become a leading crypto hub in the region. The paper outlines the criteria and conditions for obtaining a license from the HKMA and the supervisory expectations and guidance on compliance for prospective issuers.

According to the paper, the licensing regime will apply to any entity that intends to issue a stablecoin that is referenced to a fiat currency or market such a stablecoin to the Hong Kong public. The regime will also cover any entity that intends to issue a stablecoin that is referenced to the Hong Kong dollar, regardless of whether it is marketed to the Hong Kong public or not.

The paper states that the licensing regime will be introduced through legislation and that the HKMA will be the stablecoin issuers’ sole regulator and supervisor. The paper also proposes a regulatory sandbox where eligible applicants can test their products and services in a controlled environment before applying for a license. The consultation period will last until February 29, 2024, and the HKMA and the FSTB invite public and industry feedback on the proposed framework.

Hong Kong’s Proactive Stablecoin Regulation

The proposed framework is a sign of Hong Kong’s proactive and forward-looking approach to regulating the crypto sector. It follows the implementation of a licensing regime for crypto service providers in June 2023, which recognizes retail crypto trading as a regulated activity.

Hong Kong aims to foster innovation and competition in crypto while ensuring consumer protection, financial stability, and anti-money laundering by introducing a licensing regime for stablecoin issuers. The framework also aligns with the international standards and best practices on stablecoin regulation, as the Financial Action Task Force (FATF) and the Financial Stability Board (FSB) recommended.

The framework may also give Hong Kong an edge over other jurisdictions, as it provides legal certainty and clarity on the regulatory requirements and expectations. However, the framework may also pose challenges and costs for existing and potential stablecoin issuers, as they must comply with the licensing conditions and the ongoing supervision by the HKMA.

Related Reading | South Korea To Reveal Crypto Assets Of Top Officials Next Year

Do Kwon: Montenegro Greenlights Extradition

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The key figure behind Terraform Labs, Do Kwon, is set to face extradition either to South Korea or the United States following the approval of the court in Montenegro. The High Court in Podgorica has ruled that the Minister of Justice in Montenegro will be tasked with making the ultimate decision on the priority of extradition in a case that has garnered appeals from multiple states.

The final extradition decision, if approved by the Minister of Justice, will be executed after the completion of the criminal sanction imposed by the Basic Court in Podgorica. Kwon, the previously named defendant, was sentenced to four months of imprisonment for the criminal offense of document forgery under the Criminal Code of Montenegro.

Do Kwon
Do Kwon: Montenegro Greenlights Extradition 4

Earlier, the Montenegro High Court dismissed appeals for the former CEO of Terra Blockchain and his associate, citing document forgery as the grounds for conviction. The collapse of TerraUSD, the stablecoin developed by Terraform Labs, a year ago marked a significant setback for the crypto industry, resulting in substantial losses for investors.

Following TerraUSD’s collapse, legal actions were initiated against Do Kwon and his team in various jurisdictions, including Korea, Singapore, and the United States. Both the South Korean and American governments have formally requested his extradition.

Do Kwon’s Fate Hangs In Balance

Senior South Korean prosecutor Dan Sunghan, leading the investigation, recently shared insights with the media, suggesting that Do Kwon might face extradition to the U.S. after serving his term in South Korea. Sunghan hinted at the potential for a sentence exceeding 40 years if all accusations in South Korea are taken into account. He emphasized that extradition to South Korea would be more conducive to justice and recovering damages for victims, as local authorities possess a more substantial body of evidence compared to their American counterparts.

Sunghan further asserted that Kwon could potentially receive “the longest sentence ever handed down in South Korea,” characterizing the case as the most significant financial fraud or securities fraud incident in the country’s history. The intricate legal proceedings surrounding Kwon underscore the gravity of the charges and the international ramifications of TerraUSD’s downfall.

Chainlink’s Bullish Surge: On-Chain Metrics Signal Optimism & High Investor Confidence

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Amid the recent bullish momentum in the cryptocurrency market, Chainlink (LINK) has emerged as one of the standout performers, garnering high expectations from investors. IntoTheBlock, a leading analytics platform, shared insights via X post, shedding light on key on-chain metrics for the popular digital asset.

One of the notable statistics highlighted is that 56% of Chainlink holders are currently in profit, a figure that aligns with the performance of many other top tokens in the market. This marks a significant shift from the bear market conditions, where over 70% of LINK holders were grappling with losses that extended for more than a year.

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The positive sentiment surrounding Chainlink extends to its network metrics, particularly in terms of transaction data. A healthy surge in the number of transactions has been observed, with daily transactions experiencing a remarkable 436% increase from the monthly lows.

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Moreover, the total transaction volume on the Chainlink network has witnessed a substantial uptick, reaching a daily volume of $515 million in the past week. This level of activity has not been seen since July 2022, underlining the current strength and vitality of the Chainlink ecosystem.

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Examining the behavior of large holders provides additional insights into LINK’s positive trajectory. A closer look at the data reveals a significant net accumulation by holders with more than 1% of the total supply. In the past 30 days alone, these large holders accumulated an impressive 52,450,813 LINK tokens, showcasing a strong vote of confidence in the digital asset.

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As Chainlink continues to demonstrate robust on-chain fundamentals and positive market sentiment, investors and enthusiasts alike are closely watching to see if the cryptocurrency can sustain its upward momentum and fulfill its high expectations from the recent performance.

Chainlink Price Analysis

ChainLink is presently valued at $14.55, indicating a 9% upswing in the past week but experiencing a 1.87% downturn in the last 24 hours. Additionally, LINK’s trading volume stands at $1.85 billion, accompanied by a market cap of $8.13 billion and a market dominance of 0.59%.

LINK 7D graph coinmarketcap 3
Source: CoinMarketcap

On May 10, 2021, Chainlink attained its peak value at an all-time high of $52.89, while its nadir was recorded on September 23, 2017, when it reached its all-time low of $0.126297.

Following its all-time high, the lowest price reached was $4.88 (cycle low), and the highest LINK price since the last cycle low surged to $16.56 (cycle high). Currently, the sentiment for Chainlink’s price prediction is optimistic, and the Fear & Greed Index registers at 60, indicating a state of Greed.

Related Reading | Crypto Holdings Disclosure for Election Candidates Enforced by South Korean Democratic Party

Bithumb Aims To Lead The Virtual Asset Market With Its First IPO

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Bithumb, once the largest cryptocurrency exchange in South Korea, is planning an initial public offering (IPO) in an effort to rebuild investor trust and reclaim its top spot in the market. The IPO, slated for the second half of 2025, will be the first ever for a major virtual asset trading platform in the country.

Bithumb hopes that going public will help overturn the current market structure dominated by rival Upbit, which controls around 85% of trading volume. An IPO is expected to boost governance transparency and provide external validation of Bithumb’s internal controls. This could help attract users back to the platform after it fell from itsleading position following a series of controversies in recent years.

The company has appointed Samsung Securities as its underwriter and is initially targeting a listing on the Korean KOSDAQ exchange. However, it may instead opt for the main KOSPI bourse depending on market conditions closer to the planned IPO date.

Bithumb’s Corporate Governance Reforms

In tandem with IPO preparations, Bithumb has made several moves aimed at improving its corporate governance. This includes the return of former chairman Lee Jung-hoon to the board of directors of the exchange’s holding company, Bithumb Holdings.

Lee, the largest shareholder, had stepped down from his role last year amid allegations of fraud involving the previous management. His reappointment is seen as an effort to strengthen oversight and responsibility at the top levels.

Meanwhile, former Bithumb Holdings CEO Lee Sang-jun has departed following accusations of pressuring coin issuers to pay for exchange listings. With governance reforms underway, Bithumb hopes to present itself as a reformed organization worthy of investor trust.

Reasons For Seeking Public Listing

Unlike some high-growth startups, Bithumb does not appear to be pursuing an IPO for capital raising purposes. According to recent financial reports, the company already holds significant cash reserves.

Instead, the main goal is to boost transparency and credibility in the eyes of regulators, investors, and customers. By having its operations and controls validated through the strict IPO process, the exchange aims to rebuild its reputation following past controversies.

The exchange also expects public listing to help attract talented personnel. This can further aid in rehabilitating its image and improving its competitive position against rivals like Upbit.

Related Reading | Bitcoin Weekend Watch: DaanCrypto Signals Market Respite Amidst Volatility

Crypto Triumph: 47 Countries to Adopt New Reporting Framework

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In a significant step towards enhancing global tax transparency and combating tax evasion, 47 countries have committed to implementing the Crypto-Asset Reporting Framework (CARF). The CARF is a new international standard for the automatic exchange of information between tax authorities on crypto-assets. It was developed by the Organisation for Economic Co-operation and Development (OECD) and is designed to address the unique challenges of taxing crypto-assets.

The CARF will require digital-asset exchanges and other custodians to report information about their account holders’ digital-asset transactions to the tax authorities in their jurisdictions of residence. This information will then be automatically exchanged with the tax authorities in other participating jurisdictions.

The CARF is expected to be incorporated into domestic legal systems by 2027 and to start operations in the same year. The 47 countries that have committed to implementing the CARF include the United States, the United Kingdom, Singapore, Australia, Brazil, Canada, France, Japan, South Korea, and Switzerland.

The implementation of the CARF is a significant development in the global taxation of digital assets. It will provide tax authorities with greater visibility into digital-asset transactions and make it more difficult for taxpayers to evade their tax obligations.

Benefits of the Crypto-Asset Reporting Framework

  • Improved tax compliance: The CARF will make it more difficult for taxpayers to evade their tax obligations on digital assets. This is because the CARF will require digital-asset exchanges and other custodians to report information about their account holders’ digital-asset transactions to the tax authorities in their jurisdictions of residence.
  • Enhanced tax transparency: The CARF will provide tax authorities with greater visibility into digital-asset transactions. This will help them to better understand the digital-asset market and to identify and address tax risks.
  • Reduced tax evasion: The CARF is expected to reduce tax evasion on crypto-assets. This is because it will make it more difficult for taxpayers to hide their digital-assets from the tax authorities.

The implementation of the CARF by 47 countries is a significant development in the global taxation of digital assets. It is expected to have a major impact on the digital asset industry and on taxpayers who hold digital assets.

Digital asset exchanges and other custodians will need to implement new systems and procedures to comply with the CARF. This is likely to increase their costs. However, the CARF is also expected to bring some benefits to the digital asset industry, such as increased trust and confidence from regulators and investors.

Taxpayers who hold crypto-assets will need to ensure that they are reporting their crypto-asset transactions to the tax authorities accurately and on time. Failure to do so could result in penalties and other adverse consequences.

Overall, the implementation of the CARF is a positive development for the global taxation of crypto-assets. It is expected to improve tax compliance, enhance tax transparency, and reduce tax evasion.

The implementation of the CARF is a significant step towards enhancing global tax transparency and combating tax evasion. It is expected to have a major impact on the crypto-asset industry and on taxpayers who hold crypto-assets.

Crypto-asset exchanges and other custodians should start preparing to comply with the CARF now. Taxpayers who hold crypto-assets should also ensure that they are reporting their crypto-asset transactions to the tax authorities accurately and on time.

Solana Surges To $45: Insights On Crypto Trends & Alameda Gap

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As per the latest weekly insights report from Kaiko Resreach, Solana (SOL) has once again taken the spotlight in the crypto world, surging from $21 in mid-October to nearly $45 last week. This remarkable price increase comes one year after the collapse of FTX, where SOL briefly dipped under $10. The price surge has been attributed to increased network activity in liquid staking token protocols like Jito.

Major Players In Solana (SOL) Acquisition

As an alternative Layer 1 (alt L1) blockchain, Solana is often compared to Ethereum (ETH). Since September, SOL has outperformed ETH significantly, with the ratio between the two jumping from 0.011 to almost 0.025, surpassing the ratio just before FTX’s collapse.

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Source: Kaiko

Coinbase has been leading the way in net buying, acquiring 2.2 million SOL tokens since the rally began on October 18. Binance also joined the market buying trend in November, accumulating a cumulative volume delta (CVD) of 1.9 million SOL tokens since October 18. In contrast, South Korea’s top exchange, Upbit, has net sold nearly 4 million SOL tokens, reflecting the unique dynamics of the Korean market.

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Source: Kaiko

Moreover, Solana has emerged as the most traded altcoin on U.S.-based exchanges, surpassing popular tokens like DOGE, LTC, MATIC, and XRP. It marks a significant improvement in the altcoin market in the United States over the past month.

The “Alameda gap,” which refers to a sharp decline in order book liquidity observed after the FTX and Alameda Research collapse, has persisted even as Bitcoin rallied more than 20% in October. Order book liquidity for BTC, ETH, and altcoins on centralized exchanges remains 55% below pre-FTX levels.

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Source: Kaiko

A recent government exhibit in the case against Sam Bankman-Fried (SBF) shed light on market manipulation by Alameda Research. Signal messages showed SBF directing the head of Alameda Research to increase the buying pace of certain tokens to pump their prices, indicating the presence of questionable practices.

Kaiko’s research also shows that Bitcoin’s correlation with traditional assets has weakened throughout the year, making it an attractive option for portfolio diversification. Its correlation with the Nasdaq 100, the U.S. dollar, and gold has decreased significantly, signifying a shift towards a more uncorrelated asset.

Related Reading | Solana’s Early Investor: Elon Musk’s Cousin Reveals Insights

CEX Market Report 2023: Binance’s Market Share Drops To 45% As OKX Emerges Solid No. 2

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0xScope has recently released research data on centralized exchanges (CEXs) in the past year, shedding light on the evolving landscape in the crypto market. Binance, a prominent player in the industry, still holds the top position with a market share of 51.2%. However, Binance’s market share has experienced a notable decline from its high of 54% to approximately 45% over the past year, signaling a shift in the competitive dynamics.

OKX has emerged as a strong contender in the CEX space, securing the second-largest position for both spot and derivative trading. Bybit, Bitget, and MEXC closely follow in the second tier of exchanges, while Huobi, KuCoin, and others form the third tier, reflecting the market’s evolving landscape.

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0xScope

Spot Trading: Binance Faces Competition

In spot trading, Binance faces challenges not only from traditional competitors like OKX and Coinbase but also from Upbit, which has gained a significant market share of nearly 15% in the past three months, largely due to the thriving South Korean market. Other exchanges like Bybit, Bitget, and MEXC have also successfully captured a share of the trading volume through active listing strategies.

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0xScope

Regarding derivatives trading, Binance’s impact has remained relatively stable, but its main competitors have gradually increased their market shares over the past year. OKX, Bybit, Bitget, and MEXC make up the second tier of derivatives exchanges, collectively accounting for 42.3% of the market share.

On the asset value front, Binance still dominates other exchanges, but its market share has decreased by approximately 5% in the past year. OKX and Coinbase, two of Binance’s primary competitors, have seen an increase in their share of funds during this period.

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0xScope

The number of deposit addresses provides insight into an exchange’s user base, and Binance and Coinbase have nearly equal numbers of deposit addresses, totaling over 60% of the entire CEX market. However, the data should be interpreted with caution, considering the variability in deposit and withdrawal rules across exchanges.

In terms of website traffic and social media followers, while these metrics may not directly correlate with an exchange’s performance, they offer a glimpse into related trends. Binance’s website traffic has experienced a gradual decline over the past six months, while OKX has seen rapid growth in the number of Twitter followers, nearly tripling over the past year.

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0xScope

Nevertheless, the cryptocurrency market is ever-evolving, with shifts in market share, competition, and user engagement. These findings from 0xScope’s research provide valuable insights into the changing landscape of CEXs in 2023.

Related Reading | Dogecoin Dev Issues Critical Security Alert

Meitu’s Crypto Adventure: From Bitcoin & Ether To AI and Global Expansion

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Meitu, a Hong Kong-listed company, has made headlines by becoming one of the first companies in the region to invest heavily in cryptocurrencies, particularly Bitcoin and Ethereum, to the tune of approximately $100 million. However, Meitu is now shifting its focus away from the volatile world of cryptocurrency and may consider selling its holdings at an opportune time.

The company’s recent success can be attributed to its subscription system, which has helped it turn losses into profits. Kang Yicong, senior investor relations manager at Meitu, emphasized the role of the subscription system in stabilizing earnings amidst macroeconomic uncertainties. Additionally, Meitu’s expansion into the booming AI business has been a significant growth driver, boosting subscriptions and contributing to profits.

Meitu’s foray into the world of cryptocurrency raised eyebrows, but Kang Yicong clarified that the company is open to selling its digital assets at the right moment. The market’s recent resurgence has been a boon for Meitu, reversing some of the losses it previously incurred due to bearish cryptocurrency markets.

In 2023, Meitu is capitalizing on the global AI craze, launching the enterprise AI vision solution “MiracleVision 3.0.” Kang Yicong highlighted AI’s pivotal role in driving the company’s growth, particularly in converting subscribers. Meitu is also looking to expand its corporate customer base and is introducing innovative solutions like “Beauty Industry” to cater to merchant and consumer needs.

While Meitu’s cryptocurrency investments have been a point of discussion, Kang Yicong affirmed that the company currently has no specific plans for disposal. Meitu’s future plans include a global perspective, focusing on Southeast Asia, Japan, South Korea, Europe, and the United States. The company aims to repackage its successful Chinese products for overseas markets.

Hong Kong’s Retail Crypto Investors 

In the broader context of Hong Kong, a recent report by the Investor and Financial Education Council (IFEC) revealed that 47% of retail crypto investors in the region are aware of the Virtual Asset Trading Platform Regulatory Regime. The report also highlighted a significant increase in crypto investments among adults aged 18-29, with 25% having invested in the past year, driven by the desire for short-term profits and the fear of missing out.

Despite this growing interest in crypto, stocks remain the preferred investment choice for most Hong Kongers, with 96% favoring them. Mutual funds, trusts, and bonds also feature prominently in investment preferences, emphasizing the importance of financial literacy and rational decision-making in the virtual asset investment landscape.