Latest Bitcoin and Cryptocurrency News

How Ethereum and Bitcoin ETF Approvals Impact Institutional Investment

by Tatjana May 24, 2024

written by Tatjana 8 minutes read

Ethereum and Bitcoin ETFs: A New Era for Institutional Investment

The approval of Ethereum and Bitcoin ETFs marks a significant milestone in the cryptocurrency market. This development has profound implications for institutional and pension fund holdings, reshaping asset allocations and driving market dynamics. Let’s explore how these ETFs impact the market and what they mean for institutional investors.

The Significance of ETF Approvals

The approval of Ethereum and Bitcoin ETFs is a game-changer for the cryptocurrency market. ETFs, or Exchange-Traded Funds, allow investors to buy shares that represent a portion of the underlying asset—in this case, Bitcoin or Ethereum. This provides a regulated and convenient way to invest in these cryptocurrencies without directly owning them.

Institutional Participation

Increased Participation

The approval of these ETFs opens the door for institutional investors who previously faced regulatory and risk management barriers. Pension funds, insurance firms, and other large institutional players can now gain exposure to cryptocurrencies through these regulated investment vehicles. This is expected to bring significant capital into the crypto market.

Enhanced Liquidity

ETFs provide a liquid means for institutions to invest in cryptocurrencies. This helps manage liquidity more effectively and reduces the complexities associated with direct crypto investments. By offering a straightforward investment route, ETFs can attract a broader range of investors.

Pension Fund Holdings

New Investment Opportunities

Pension funds, traditionally conservative in their investment strategies, can now consider adding Bitcoin and Ethereum ETFs to their portfolios. This move towards diversification presents potential growth opportunities, despite the associated risks. The entry of such large funds into the crypto market signals growing acceptance and integration of cryptocurrencies within traditional investment frameworks.

Indirect Exposure

Mutual funds and other Registered Investment Advisor (RIA)-based funds are adjusting their prospectuses to allow for indirect exposure to Bitcoin and Ethereum through these ETFs. This strategic shift indicates a broader acceptance of cryptocurrencies as viable investment assets.

Gradual Adoption

The impact on pension funds is expected to be gradual. Initially, these funds might start with conservative allocations, gradually increasing as the market for these ETFs matures and demonstrates stability and regulatory compliance. This cautious approach ensures that pension funds can manage risks effectively while exploring new investment opportunities.

Market Dynamics

Fee Competition

The launch of Bitcoin and Ethereum ETFs has sparked a fee war among issuers. Firms like Blackrock, Ark, and 21Shares are offering competitive fee structures to attract investors. Lower fees make these ETFs more attractive to institutional investors, potentially increasing adoption rates.

Market Liquidity and Stability

The presence of ETFs is expected to deepen market liquidity and stabilize price movements. By providing a more accessible investment vehicle, ETFs can help mitigate the volatility often associated with direct cryptocurrency investments. This could lead to more stable market conditions and attract a wider range of investors.

Price Dynamics of Bitcoin and Ethereum

Bitcoin ETF Launch Impact

When the first Bitcoin ETF launched in January 2024, Bitcoin’s price initially plummeted. This was largely due to the massive unloading from the Grayscale Bitcoin fund. However, after a period of adjustment, inflows increased significantly, triggering a bull run that nearly doubled Bitcoin’s price in subsequent months.

Ethereum ETF Expectations

With the upcoming launch of Ethereum ETFs, there are both positive and negative expectations. On the positive side, new money will flow into the Ethereum ETF, and some funds may shift from Bitcoin ETFs to Ethereum ETFs. On the downside, Grayscale’s existing Ethereum holdings might see significant outflows, creating selling pressure. Additionally, any adverse effects on Bitcoin could ripple through to the entire crypto market.

Strategic Considerations for Investors

Short-term vs. Long-term

In the short term, the approval of Ethereum ETFs might lead to volatility, similar to what was observed with Bitcoin. Investors need to be prepared for initial price fluctuations as the market adjusts. However, in the mid to long term, Ethereum’s price is expected to stabilize and potentially rise as the ETF market matures.

Diversification Benefits

For institutional investors, adding both Bitcoin and Ethereum ETFs to their portfolios can provide diversification benefits. Both assets have unique characteristics and can complement each other within a diversified investment strategy. Institutions that include both ETFs can potentially reduce overall portfolio risk while benefiting from the growth prospects of both cryptocurrencies.

Institutional Inflows and Market Impact

Broader Market Implications

The approval of Bitcoin and Ethereum ETFs is expected to have broader market implications beyond just price movements. Institutional inflows into these ETFs can lead to increased adoption and integration of blockchain technologies across various sectors. This could further legitimize cryptocurrencies as a mainstream investment asset.

Competitive Landscape

The competitive landscape for ETFs is also evolving. With the entry of major players like Blackrock and Ark, the market is witnessing intense competition, leading to lower fees and better investment products for consumers. This competition is beneficial for the overall growth and maturity of the crypto market.

Regulatory Environment

The regulatory environment plays a crucial role in the success of these ETFs. Clear and supportive regulations can enhance investor confidence and encourage more institutional participation. Ongoing regulatory developments will continue to shape the landscape for Bitcoin and Ethereum ETFs.

The Future of Cryptocurrency ETFs

Potential for New Products

The success of Bitcoin and Ethereum ETFs could pave the way for the approval of other cryptocurrency ETFs. This could include ETFs for other major cryptocurrencies like Litecoin, Ripple, or Cardano. The introduction of new products can provide investors with more options and further diversify the crypto market.

Institutional Strategies

Institutions are likely to develop more sophisticated strategies for investing in cryptocurrency ETFs. This could include the use of derivatives and other financial instruments to hedge risks and maximize returns. As the market matures, we can expect to see more advanced investment strategies being employed.

Summary and Takeaway

The approval of Ethereum and Bitcoin ETFs is a landmark development that paves the way for greater institutional participation in the cryptocurrency market. By providing regulated, liquid, and accessible investment vehicles, these ETFs can attract significant capital from pension funds, insurance firms, and other large institutional investors. This influx of institutional investment is expected to enhance market liquidity, stabilize prices, and drive broader adoption of cryptocurrencies as viable investment assets. As the market for these ETFs matures, both Bitcoin and Ethereum are likely to see increased investor interest and sustained growth.

Ethereum

US SEC Approves Spot Ether ETFs: Major Win for Crypto Industry

by dave May 24, 2024

written by dave 5 minutes read

US SEC Approves Exchange Applications to List Spot Ether ETFs

Background of Approval

On May 23, the U.S. Securities and Exchange Commission (SEC) approved applications from Nasdaq, CBOE, and NYSE to list exchange-traded funds (ETFs) tied to the price of ether. This decision is a big win for the cryptocurrency industry, which had expected the SEC to reject the filings.

Major Surprise for the Crypto Industry

Thursday’s approval was unexpected. Until Monday, most thought the SEC would reject the applications. Nine issuers, including VanEck, ARK Investments, and BlackRock, hope to launch these ether ETFs. Earlier this year, the SEC approved Bitcoin ETFs, setting a precedent for crypto ETFs.

The Road to Approval

The SEC’s decision was a significant step. It showed that the agency is becoming more open to crypto products. Andrew Jacobson, VP and head of legal at 21Shares, said this is “an exciting moment for the industry.” However, ETF issuers still need to get final approval for their registration statements before trading can start.

SEC’s Concerns and Requirements

The SEC’s main concerns were preventing fraud and market manipulation. They emphasized the importance of surveillance-sharing agreements with the Chicago Mercantile Exchange (CME). These agreements help detect and deter fraud in the market. Although the CME does not monitor spot ether markets, it does track futures contracts. The high correlation between futures and spot prices means that manipulation in the spot market would likely affect futures as well.

To address these concerns, exchanges submitted correlation analyses. They showed that price movements in the CME ether futures market closely align with those in the spot ether markets. This analysis helped prove that the CME’s monitoring could detect fraud in the spot markets.

Investor Protection and Market Integrity

The SEC also focused on protecting investors and maintaining market integrity. They looked at several key requirements, including:

Pricing Information: Ensuring the availability of quotation and last-sale information for each ETF through major market data vendors.
Transparency: Requiring ETFs to regularly disclose their portfolio holdings, including the amount of ether and any cash or cash equivalents.
Surveillance Procedures: Implementing surveillance-sharing agreements with other regulated markets to detect and deter fraud.

Market Participants’ Reactions

Many in the cryptocurrency industry were surprised by the SEC’s approval. Market participants had been preparing for a rejection. SEC officials asked the exchanges to quickly fine-tune their filings, leading to a rush to complete weeks of work in just days. It is still unclear why the SEC changed its stance.

Timeline for Trading

While the SEC has approved the rule change to list these new products, issuers still need to get approval for their ETF registration statements. These statements detail investor disclosures. Unlike the exchange filings, there is no set time frame for the SEC to decide on these statements. Some industry participants believe it could take months.

The Impact of Bitcoin ETFs

The approval of spot Bitcoin ETFs earlier this year set a precedent. The SEC had rejected Bitcoin ETFs for over a decade due to concerns about market manipulation. However, Grayscale Investments won a court challenge last year, forcing the SEC to approve Bitcoin ETFs. This decision paved the way for ether ETFs.

Sui Chung, CEO of CF Benchmarks, noted that ether is more complex than Bitcoin. This complexity could slow the SEC’s review process. However, since Bitcoin ETFs offer an established template, the SEC might not delay too much.

Mainstream Finance and Crypto Integration

The approval of spot ether ETFs is another boost for the cryptocurrency industry’s push into mainstream finance. This week, the UK regulator also approved listed cryptocurrency products. The U.S. House of Representatives passed a bill seeking to provide regulatory clarity for cryptocurrencies. This bill, which still needs to pass the Senate, has strong bipartisan support, marking a significant endorsement for the industry.

What’s next?

The SEC’s approval of spot ether ETFs is a major milestone for the cryptocurrency industry. While there are still hurdles to clear before trading can begin, this decision signals a growing acceptance of crypto products in mainstream finance. With the SEC’s focus on preventing fraud and protecting investors, the future of crypto ETFs looks promising.

Ethereum

SEC Engages with Ethereum ETF Issuers Over S-1 Forms: Key Updates and Market Impact

by dave May 23, 2024

written by dave 4 minutes read

SEC Starts Talking to Ethereum ETF Issuers About S-1 Forms

The U.S. Securities and Exchange Commission (SEC) has begun discussions with companies looking to create Ethereum ETFs. These talks are about the S-1 registration statements, which are essential for launching an ETF. A source revealed this information, noting that while the 19b-4 forms have seen progress, the S-1 forms haven’t moved much yet.

What Are S-1 Registration Statements?

S-1 registration statements are documents that companies must file with the SEC to register their securities. For an Ethereum ETF to start trading, the S-1 form must be approved. Recently, only Fidelity has filed an amended S-1 form. This step is crucial for Ethereum ETFs to get the green light from the SEC.

Progress and Challenges

A high-ranking member from one of the ETF issuers explained that the conversations about the S-1 forms are just beginning. The Division of Investment Management at the SEC seemed unprepared for this shift. Despite this, the source is optimistic that progress toward an Ethereum ETF will not be stopped, but they remain cautious.

The Approval Process

For Ethereum ETFs to be approved, two main steps are involved. First, the SEC must approve the 19b-4 forms. This form is a proposal for a rule change that allows the ETF to be traded on an exchange. This approval was done in one large order for Bitcoin ETFs, and there’s hope the same will happen for Ethereum ETFs.

Second, the S-1 registration statements must become effective. This means they need to be reviewed and approved by the SEC. Typically, the forms are sent back for amendments and refiled until they meet all requirements. Once the final versions are submitted and approved, trading can begin.

Decision Day for Ethereum ETFs

The SEC faces a decision today regarding the VanEck Ethereum ETF’s 19b-4 form. Analysts believe that the SEC intends to approve multiple issuers at once, similar to the Bitcoin ETFs. If approved, this could happen today.

Eric Balchunas, a Bloomberg ETF analyst, shared on social media that he expects the SEC to announce its decision around 4 p.m. ET. He noted that past decisions for spot Bitcoin ETFs were made at 3:45 p.m., but the timing can vary.

Potential Delays

Even if the 19b-4 forms are approved today, it might take longer for the S-1 forms to be ready and go into effect. This delay means trading might not start immediately. According to Balchunas, it’s unclear how fast the process will move, but it could be a rush over the next few days or even weeks, depending on the S-1 forms.

Market Expectations

The market is eagerly waiting for the SEC’s decision. Approval of Ethereum ETFs could significantly impact the market, similar to how Bitcoin ETFs did. The process involves a lot of paperwork and amendments, but once everything is approved, it will open up new opportunities for investors.

The SEC’s engagement with Ethereum ETF issuers about S-1 forms marks an important step forward. While the process is still in the early stages, there is optimism that progress will continue. The approval of the 19b-4 forms today could be a major milestone, but the final approval of the S-1 forms is necessary for trading to begin. Investors and market analysts are watching closely, anticipating the SEC’s next move.

The SEC’s discussions with Ethereum ETF issuers about S-1 registration statements are crucial for the future of these financial products. The approval process is complex and involves multiple steps, but with ongoing efforts and amendments, Ethereum ETFs may soon be available for trading, offering new investment opportunities in the cryptocurrency market.

News

U.S. House Approves Crypto FIT21 Bill in Historic Bipartisan Vote

by Tatjana May 23, 2024

written by Tatjana 5 minutes read

U.S. House Approves Crypto FIT21 Bill with Democratic Support

The U.S. House of Representatives has approved a major crypto bill called the Financial Innovation and Technology for the 21st Century Act, or FIT21. This bill passed with a vote of 279-136, showing strong support from House Democrats. This is a significant win for the crypto industry, marking its biggest policy achievement in Congress to date.

A Historic Vote for Crypto

The vote to approve the crypto market-structure bill is a huge milestone. It sets up regulations for digital assets markets, which is a big step forward. This is the first time a major crypto bill has passed in one of the chambers of Congress. Now, the bill will move to the U.S. Senate, where its future is uncertain. There is no similar bill in the Senate yet, and it is unclear if it will get the same level of support.

The Need for Crypto Regulations

The U.S. has been lagging behind other countries in creating regulations for crypto. Despite the win in the House, there is still a long way to go before these regulations are fully in place. Representative Josh Gottheimer, a Democrat from New Jersey, said, “We need rules of the road.” He was one of the Democrats who supported the bill, even though the White House and the top Democrat on the House Financial Services Committee, Maxine Waters, were against it. Gottheimer described the bill as “well-reasoned, thoughtful, bipartisan legislation” and urged cooperation to make it law.

Breakdown of the Vote

Overall, 71 Democrats and 208 Republicans voted in favor of the bill, while 3 Republicans and 133 Democrats voted against it. This bipartisan support is notable, especially given the opposition from some top Democrats and President Joe Biden. Although Biden opposed the bill, he did not say he would veto it, unlike a recent instance when Congress tried to overturn a Securities and Exchange Commission (SEC) effort to set crypto accounting policy.

SEC’s Opposition

SEC Chair Gary Gensler also strongly opposed the bill. He argued that the bill was not necessary and that it could harm existing securities regulations. The new legislation, driven mainly by House Republicans, aims to regulate the U.S. crypto markets. It plans to set up consumer protections and appoint the Commodity Futures Trading Commission (CFTC) as the main regulator of digital assets. The CFTC would oversee non-securities spot markets and help define what makes a crypto token a security or a commodity.

Controversy and Debate

Representative Maxine Waters argued against the bill, saying it would allow crypto businesses to avoid responsibility for dodging securities laws. “They have already made billions of dollars unlawfully issuing or facilitating the buying and selling of crypto securities,” Waters said. “And Republicans are now proposing to reward these illegal activities by making these activities legal.”

Before the vote, the House debated several amendments to the bill. Representatives Greg Casar from Texas, Brittany Pettersen from Colorado, Ralph Norman from South Carolina, and Scott Perry from Pennsylvania proposed changes. Casar’s amendment to lower a crowdfunding exemption from $75 million to $5 million was rejected, but the other amendments were accepted.

Future Steps and Challenges

With the House’s approval, the next step is for the bill to go to the Senate. However, the path ahead is not clear. The Senate has not worked as much on crypto issues, and there is no similar bill there yet. This uncertainty means it could take a while before any new regulations are put in place.

Importance of the Bill

The Financial Innovation and Technology for the 21st Century Act is seen as a crucial step in regulating the growing crypto market. It aims to provide clear rules and protections for consumers, which are necessary for the market to grow responsibly. By appointing the CFTC as the main regulator, the bill seeks to create a more structured and secure environment for digital assets.

Bipartisan Efforts

The bill’s approval shows that there can be bipartisan efforts in Congress, even on complex issues like crypto regulation. The support from both Democrats and Republicans indicates a shared understanding of the need for clear regulations in the crypto space. This cooperation is essential for the bill to become law and for the U.S. to catch up with other countries in crypto regulation.

Result

The U.S. House of Representatives has approved the Financial Innovation and Technology for the 21st Century Act with significant support from Democrats. This bill marks a major achievement for the crypto industry and aims to regulate digital assets markets. Despite the victory, the bill faces challenges in the Senate, and its future is uncertain. The need for clear crypto regulations is evident, and this bill is a step in the right direction.

Memecoins

Shiba Inu and Dogecoin: Top Investment Choices in the 2024 Bull Market

by Tatjana May 21, 2024

written by Tatjana 5 minutes read

Recent Price Crashes and Market Sentiment

Shiba Inu and Dogecoin are popular choices for investors, especially as we head into a bull market. However, recent crashes have affected their prices and the overall market sentiment. This change in sentiment could be a signal that it’s a good time to consider investing in these meme coins.

Understanding the Fear & Greed Index

The Fear & Greed Index is a tool that helps investors understand how people feel about certain cryptocurrencies at a given time. When the index is high, it means more people are willing to invest. When it’s low, fewer people are interested. This index measures sentiment in five categories: Extreme Fear, Fear, Neutral, Greed, and Extreme Greed. The numbers range from 1 to 100, with 1-25 being Extreme Fear and 76-100 being Extreme Greed.

Current Sentiment for Shiba Inu and Dogecoin

Since the start of 2024, the crypto market has seen a recovery. During this time, Shiba Inu and Dogecoin moved into the greed territory, even reaching Extreme Greed. But now, as prices have started to fall, the sentiment has also dropped. Currently, both Shiba Inu and Dogecoin are in the neutral zone.

According to the CFGI website, Shiba Inu has a sentiment value of 51, and Dogecoin has a value of 52. This neutral sentiment means investors are not making big moves and are waiting to see what happens with the prices.

Is It Time to Buy Shiba Inu and Dogecoin?

The best time to buy cryptocurrencies is usually when investors are scared. This often means prices are low, making it a good entry point. However, this typically happens during times of extreme fear, not neutral sentiment.

Even though the sentiment for Shiba Inu and Dogecoin is neutral, there are still some positive signs. For example, the daily trading volume for both coins is up. Dogecoin’s trading volume has increased by 15.51% to $845.7 million in the last day. Shiba Inu’s trading volume has risen by 22.86% to $389 million.

Market Sentiment and Trading Volume

These increases in trading volume suggest that despite the neutral sentiment, there is still a lot of interest in these meme coins. This means it might not be the best time to go all in. Instead, it could be smarter to invest in smaller amounts and use a strategy called dollar cost averaging (DCA).

With the bull market expected to continue, many believe that current prices for Shiba Inu and Dogecoin will seem like a bargain in the future. This long-term outlook suggests that investing slowly over time could be a good strategy.

Shiba Inu and Dogecoin in the Crypto Market

Shiba Inu and Dogecoin have been strong players in the cryptocurrency market. They gained popularity as meme coins but have proven to be valuable investments. The current neutral sentiment might make investors cautious, but it also offers a chance to buy before prices go up again.

Using Dollar Cost Averaging (DCA)

Dollar cost averaging is a strategy where you invest small amounts of money regularly, regardless of the price. This helps reduce the risk of investing a large sum at a bad time. With Shiba Inu and Dogecoin, using DCA can help you take advantage of future price increases while minimizing potential losses.

The Future of Shiba Inu and Dogecoin

As the bull market progresses, both Shiba Inu and Dogecoin are expected to perform well. Their recent price drops and neutral sentiment are part of the natural market cycle. Investors who remain patient and strategic could benefit from potential future gains.

In Closing

While we can’t give investment advice, we think Shiba Inu and Dogecoin are still top choices for investors despite recent price drops and a shift to neutral sentiment. The Fear & Greed Index shows that while investors are cautious, the increased trading volume indicates ongoing interest. By using strategies like dollar cost averaging, investors can take advantage of the current market conditions and potentially see significant returns as the bull market continues.

Shiba Inu and Dogecoin continue to capture the attention of the crypto community. As market sentiment fluctuates, understanding tools like the Fear & Greed Index and employing smart investment strategies will be key to navigating the evolving landscape of meme coins and the broader cryptocurrency market.

Ethereum

Ether ETFs Filing Progresses Rapidly, SEC Approval Still Uncertain

by dave May 20, 2024

written by dave 4 minutes read

SEC Requests Faster Filings for Ether ETFs

The U.S. Securities and Exchange Commission (SEC) has asked exchanges that want to list ether exchange-traded funds (ETFs) to update their 19b-4 filings quickly. This request came ahead of a key deadline this week. The SEC usually takes a long time to approve these filings, but this sudden move suggests they might be making progress.

Three people familiar with the situation told CoinDesk that the SEC’s request could mean that they are moving closer to approving these applications. However, there’s still no guarantee that the ether ETFs will be approved. The issuers also need to get their S-1 applications approved before the ETFs can start trading.

No Guarantee of Approval

Even though the SEC has asked for the 19b-4 filings to be updated quickly, it doesn’t mean the ETFs will definitely be approved. The SEC can take an indefinite amount of time to approve the S-1 documents, according to one person familiar with the matter. This means that the approval process for ether ETFs is still uncertain.

One company in talks with the SEC said it feels more hopeful about approval now than it did a few weeks ago. Back then, it seemed like the SEC was dragging its feet. Bloomberg Intelligence ETF analysts Eric Balchunas and James Seyffart have also changed their view. They now think there’s a 75% chance that the SEC will approve a spot ether ETF, up from their previous estimate of 25%.

Bloomberg Analysts Increase Approval Odds

Bloomberg analysts Eric Balchunas and James Seyffart initially said there was a 75% chance of the SEC approving a spot ether ETF. They later clarified that this prediction was about the 19b-4 approvals, not the final approval of the ETFs themselves. The SEC is expected to make a decision on the VanEck spot ether ETF by May 23rd.

The SEC has been investigating whether ether, the main asset of the Ethereum blockchain, is a security. This investigation started after Ethereum moved from a proof-of-work consensus mechanism to a proof-of-stake mechanism. If the SEC decides that ether is a security, it could be a reason to reject the ether ETF applications.

SEC’s Investigation into Ether

The SEC’s investigation into whether ether is a security could have a big impact on the approval of ether ETFs. If the SEC determines that ether is a security, it might reject the ETF applications. This decision is crucial because it affects how ether and other digital assets are regulated in the U.S.

Prometheum, a special purpose broker, recently launched its ether custody service. This company plans to offer custody and trading services for other digital assets, especially those treated as securities in the U.S. The SEC’s decision on whether ether is a security will play a significant role in the future of these services.Conclusion

The SEC’s request for faster updates to 19b-4 filings suggests some progress in the approval process for ether ETFs. However, there’s still no guarantee that these ETFs will be approved. The SEC’s ongoing investigation into whether ether is a security adds another layer of uncertainty. Companies and analysts are watching closely, as the outcome will have a significant impact on the digital asset market.

As we wait for the SEC’s decision, the future of ether ETFs remains uncertain. The approval process involves multiple steps, and the SEC’s investigation into ether’s status as a security could complicate matters further. For now, both companies and investors are hopeful, but they remain cautious about the final outcome.

Ethereum

Ethereum ETF Approval Odds Surge to 75%, Boosting ETH Price by 9%

by dave May 20, 2024

written by dave 4 minutes read

Bloomberg Analysts Increase Approval Odds

Bloomberg ETF analysts Eric Balchunas and James Seyffart have significantly increased their predictions for a spot Ethereum exchange-traded fund (ETF) being approved in the US. They now say there is a 75% chance of approval, up from their previous estimate of 25%. This change in odds has had an immediate impact on the market, with the price of Ethereum (ETH) jumping 9.3% after the announcement.

Reasons Behind the Increased Odds

The analysts explained that their earlier low odds were due to the lack of interest from the SEC (Securities and Exchange Commission) in discussing the approval of an Ethereum ETF. However, recent political developments have led Balchunas to believe that the SEC might be changing its stance. He mentioned on social media that the regulator might do “a 180 on this issue.” This shift in perspective is significant because both Balchunas and Seyffart are waiting for additional filing documents that could increase the odds even more.

Reaction from the Crypto Community

Seyffart shared his thoughts on social media, joking about how Ethereum supporters, often referred to as “Ethereum bulls,” might react if their prediction turns out to be true. He mentioned that if the approval happens, they would not hear the end of it from the Ethereum community. Seyffart also said they have heard from multiple sources and expect a surge in ETF filings in the coming days if their prediction is accurate.

Important Deadlines for ETF Approvals

The first key deadline for an Ethereum ETF approval is on May 23, when the SEC will decide on VanEck’s Ethereum ETF filing. Following that, the SEC must make a decision on the ARK21 Shares Ethereum ETF by May 24. The final deadline for the month is May 30, when the SEC will decide on the Hashdex Nasdaq Ethereum ETF filing.

Industry Reactions and Predictions

According to Bitcoin News Crypto, many in the industry were not expecting a spot Ethereum ETF approval in the US this week. Katherine Dowling, the general counsel for ETF applicant Bitwise, mentioned that most people were expecting a disapproval order. VanEck CEO Jan van Eck also predicted a likely denial during a recent CNBC interview.

Market Impact and Price Movements

In the last 24 hours, nearly $150 million in short positions in crypto derivatives have been liquidated, as reported by data aggregator Coinglass. Out of this total, $35.3 million were related to positions shorting ETH. This market activity reflects the changing sentiment and the impact of the increased odds of ETF approval.

Ether Price Surge

On Monday, during U.S. trading hours, the price of ether (ETH) surged more than 10%, reaching $3,400. This increase came after Bloomberg analysts Eric Balchunas and James Seyffart updated their odds for the SEC approving a spot Ether ETF to 75%. The news that the SEC might reverse its position on this issue has caused a scramble among investors, who had largely assumed that the ETF proposals would be rejected.

Broader Market Effects

Bitcoin (BTC) has also seen gains alongside Ethereum’s rise, with its price increasing by more than 5% and approaching the $70,000 mark. Additionally, the Grayscale Ethereum Trust (ETHE), which is a closed-end fund that Grayscale has proposed converting into a spot ETF, has seen a significant increase. The fund has been trading at more than a 20% discount to its net asset value as investors bet against SEC approval, but it surged by more than 23% on Monday.

The potential approval of a spot Ethereum ETF by the SEC has created a wave of optimism and activity in the cryptocurrency market. Bloomberg analysts’ increased approval odds to 75% have driven a significant price jump for Ethereum and other cryptocurrencies. With key deadlines approaching, the market is closely watching the SEC’s decisions, which could further impact the prices and overall sentiment in the crypto industry. The changing political landscape and the SEC’s potential reversal on ETF approvals have added a new layer of complexity and excitement to the future of Ethereum ETFs.

Bitcoin

Craig Wright Lied About Creating Bitcoin, Judge Confirms in Landmark Ruling

by dave May 20, 2024

written by dave 5 minutes read

A UK judge has ruled that Craig Wright lied about being Satoshi Nakamoto, the creator of Bitcoin. The judge found that Wright forged evidence to support his claim. This decision stops Wright from bringing more lawsuits in the UK.

The Court’s Decision

On May 20, Justice James Mellor of the UK High Court ruled that Craig Wright had lied extensively and committed forgery on a grand scale. Mellor said Wright created false documents to support his claim of being Satoshi Nakamoto. “I am entirely satisfied that Dr. Wright lied to the Court extensively and repeatedly,” Mellor wrote. “All his lies and forged documents were in support of his biggest lie: his claim to be Satoshi Nakamoto.”

The Lawsuit

The ruling came at the end of a six-week trial. The lawsuit was brought by the Crypto Open Patent Alliance (COPA), a group of crypto companies. COPA wanted the court to declare that Wright is not the creator of Bitcoin. This would stop him from suing Bitcoin developers and others based on his claim.

Craig Wright’s Response

Wright did not respond immediately to requests for comment. However, he posted on X (formerly Twitter) that he plans to appeal the ruling.

Evidence of Forgery

During the trial, Wright faced documents that showed hundreds of indications of forgery. Despite his efforts to justify the abnormalities, the judge was not convinced. On March 14, the final day of the trial, Mellor delivered a rare snap verdict: “The evidence is overwhelming. Dr. Wright is not the person who adopted or operated under the pseudonym Satoshi Nakamoto.”

Impact of the Ruling

Paul Grewal, the chief legal officer at crypto exchange Coinbase and a member of COPA, said the ruling showed how unfounded Wright’s claims were. “Dr. Wright’s claims were shown not only to be false but utterly fanciful,” Grewal said. The decision has led Wright to drop multiple lawsuits connected to his claim of being the creator of Bitcoin.

Other Lawsuits Dropped

On April 11, Wright dropped an appeal of a lawsuit in Norway against crypto influencer Magnus Granath. Granath, known as Hodlonaut, had called Wright a “pathetic scammer” in 2019. Wright also dropped another lawsuit in which his company, Tulip Trading, accused Bitcoin developers of not helping recover a large amount of bitcoin allegedly lost in a hack.

Ongoing Cases

There are still three lawsuits where Wright accuses Bitcoin developers, and crypto exchanges Coinbase and Kraken, of violating his intellectual property rights over Bitcoin. These cases are affected by the COPA ruling but remain active for now, pending a possible appeal by Wright.

Effects on Bitcoin Satoshi Vision (BSV)

The ruling also impacted Bitcoin Satoshi Vision (BSV), a cryptocurrency network created by Wright in 2018. BSV aims to follow Satoshi’s original design for Bitcoin. After the judge declared that Wright is not Satoshi, the price of BSV tokens dropped by 40 percent.

Global Legal Impact

The judgment means Wright cannot bring more lawsuits in the UK claiming he is Satoshi. Judge Mellor wrote that the ruling aims to stop Wright from threatening developers with copyright claims. However, the ruling is limited to the UK, so Wright might continue his claims in other countries.

James Marsden, a senior associate at law firm Dentons, explained that while copyright principles are similar worldwide, each country’s courts will analyze cases independently. This means Wright could still pursue his claims in other jurisdictions.

Funding for Wright’s Lawsuits

At trial, COPA alleged that Calvin Ayre, an online gambling tycoon, has been financing Wright’s lawsuits. Wright denied this. Ayre did not respond to requests for comment. In March, Mellor froze $7.6 million of Wright’s assets to prevent him from evading the costs of the trial. COPA is likely to receive a substantial sum in costs.

Future Legal Actions

Magnus Granath believes that Wright’s pursuit of being Satoshi depends on funding. Granath thinks the UK judgment makes further lawsuits futile, meaning it may be harder for Wright to get funding. COPA hopes the judge’s findings will discourage Wright from continuing his legal battles. “This was an extraordinary proceeding. It could not have sent a clearer message to Dr. Wright and anyone else paying attention,” said Grewal. “I’m not terribly worried about Dr. Craig Wright.”

The UK High Court’s decision that Craig Wright lied about being Satoshi Nakamoto and forged evidence is a significant development in the world of cryptocurrency. The ruling not only stops Wright from bringing further lawsuits in the UK but also impacts his credibility and future legal actions globally. The case highlights the importance of integrity and truth in the rapidly evolving field of blockchain and cryptocurrency.

News

Crypto Lender Genesis to Return $3 Billion to Customers in Bankruptcy Wind-Down

by dave May 18, 2024

written by dave 3 minutes read

Genesis Global

Crypto lender Genesis Global has received approval to return around $3 billion in cash and cryptocurrency to its customers. This is part of its bankruptcy liquidation process. The company’s owner, Digital Currency Group (DCG), will not get any recovery from this bankruptcy.

Court Approval and Objections

On Friday, U.S. Bankruptcy Judge Sean Lane approved Genesis’ Chapter 11 liquidation plan. DCG had argued that Genesis should pay customers and creditors based on the crypto assets’ value from January 2023. At that time, Genesis filed for bankruptcy, and crypto prices were much lower. For example, Bitcoin was worth $21,084 in January 2023 but now is valued at $67,000.

DCG wanted customer claims to be capped at these lower values, but Judge Lane overruled this objection. He stated that even if customer claims were capped at the lower prices, Genesis would still need to pay other creditors, including federal and state financial regulators, who have asserted $32 billion in claims. Therefore, there would be no assets left to provide any recovery to DCG.

Disagreement on Valuation

Genesis and DCG disagreed on who should benefit from the rise in cryptocurrency prices. Genesis’ attorney, Sean O’Neal, said on Friday that the company disagreed with DCG’s claim that customers could be paid “in full” based on the lower prices from January 2023. O’Neal emphasized, “We don’t buy into the idea that claims are capped at the petition date value.”

Repayment Plans

Genesis is trying to pay customers back in cryptocurrency where possible. However, the company does not have enough crypto to give back everything it owes. In February, Genesis estimated that it would be able to pay its customers up to 77% of the value of their claims, depending on future price changes.

Impact on Digital Currency Group

Digital Currency Group (DCG) will not receive any recovery from Genesis’ bankruptcy liquidation. The judge’s ruling and the significant claims by other creditors mean there are nowhere near enough assets to repay DCG. This situation highlights the impact of cryptocurrency price fluctuations on bankruptcy proceedings.

Customer Claims and Future Payments

Customers of Genesis can expect to receive payments in both cash and cryptocurrency. The amount they receive will depend on the future prices of cryptocurrencies. Genesis is committed to returning as much value as possible to its customers, despite the challenges posed by the limited crypto assets available.

Federal and State Financial Regulators’ Claims

Federal and state financial regulators have significant claims against Genesis, amounting to $32 billion. These claims take priority over any recovery for DCG, further reducing the chances of DCG receiving any assets from the bankruptcy process.

Wind Down

Genesis Global’s bankruptcy wind-down and the court’s approval of its Chapter 11 liquidation plan mark a significant step in returning funds to customers. Despite objections from DCG, the court ruled in favor of customers, allowing them to benefit from the rise in cryptocurrency prices since January 2023. Genesis is working to repay its customers as much as possible, though challenges remain due to the limited crypto assets available.

Ethereum

US Brothers Arrested for $25M Cryptocurrency Theft in 12 Seconds

by Tatjana May 16, 2024

written by Tatjana 6 minutes read

The Crime

Two brothers from the United States have been arrested for stealing $25 million in cryptocurrency. The brothers, Anton Peraire-Bueno, 24, and James Peraire-Bueno, 28, managed to carry out this theft in just 12 seconds. They are charged with wire fraud and money laundering. The US Department of Justice called this theft the first of its kind.

Who Are the Peraire-Bueno Brothers?

The Peraire-Bueno brothers studied at the prestigious Massachusetts Institute of Technology (MIT). Anton and James studied mathematics and computer science at MIT. They used the skills they learned at this top university to commit the crime.

How Did They Do It?

The brothers used a sophisticated and cutting-edge scheme to steal $25 million in Ethereum cryptocurrency. They planned this heist for months. Prosecutors say they used their specialized skills to exploit Ethereum’s process for validating transactions.

Role of the US Department of Justice and IRS

Deputy Attorney General Lisa Monaco explained that agents from the Internal Revenue Service (IRS) played a crucial role in solving this case. The IRS agents helped unravel the “first-of-its-kind wire fraud and money laundering scheme.”

The Exploit Method

The brothers referred to their theft method as “the Exploit.” They managed to gain access to private transactions that were pending on the Ethereum network. They then altered these transactions to steal the cryptocurrency. This process took only seconds to complete.

Impact on Blockchain Integrity

US Attorney Damian Williams said that this scheme questions the very integrity of the blockchain. The blockchain is a public ledger that records all crypto payments. By exploiting the Ethereum network, the brothers put the security of this technology in doubt.

Confrontation and Laundering Stolen Gains

When Ethereum representatives confronted the Peraire-Bueno brothers, the brothers refused to return the stolen funds. Instead, they took steps to hide and launder their stolen gains. Prosecutors note that this is the first time such a novel form of fraud has been criminally charged.

Legal Consequences

If found guilty, the brothers face more than 20 years in prison. This case sets a new precedent for how the law deals with sophisticated cryptocurrency theft and money laundering schemes.

How the Heist Unfolded

In April 2023, the Peraire-Bueno brothers executed their plan. They used their knowledge from MIT to manipulate the Ethereum validation process. By accessing pending private transactions, they managed to redirect $25 million worth of Ethereum to their accounts.

The Role of Technology in the Theft

The theft was possible due to the highly specialized skills that the brothers had. Their background in mathematics and computer science from MIT allowed them to understand and exploit weaknesses in the Ethereum network.

First-of-its-Kind Crime

Prosecutors call this heist a “first-of-its-kind” crime. Never before has such a technologically sophisticated method been used for wire fraud and money laundering. The use of advanced skills and the speed of the theft make this case unique.

Investigating the Theft

The IRS agents and the US Department of Justice worked together to investigate this crime. Their combined efforts helped uncover the details of the Peraire-Bueno brothers’ scheme.

Security Measures for Ethereum

This case highlights the need for better security measures in cryptocurrency networks. The Ethereum network, like other blockchain technologies, must ensure that its processes cannot be exploited in such a way.

Educational Background of the Brothers

Both brothers attended MIT, one of the most prestigious universities in the world. Their education in mathematics and computer science gave them the tools they needed to carry out this complex theft.

Importance of Blockchain Integrity

The integrity of the blockchain is crucial for the future of cryptocurrency. This case shows that even highly secure networks like Ethereum can be vulnerable to sophisticated attacks. Ensuring the safety and reliability of blockchain technology is essential for maintaining trust in the system.

Legal and Ethical Implications

The Peraire-Bueno brothers’ case raises important legal and ethical questions. How should the law handle technologically advanced crimes? What are the ethical responsibilities of individuals with specialized knowledge and skills? This case will likely influence future legal decisions and ethical discussions in the field of cryptocurrency and technology.

Future of Cryptocurrency Security

As cryptocurrency becomes more popular, the security of these networks will be increasingly important. The lessons learned from the Peraire-Bueno brothers’ case can help improve security measures and prevent future crimes.

Result

The Peraire-Bueno brothers’ theft of $25 million in Ethereum in just 12 seconds is a landmark case in cryptocurrency crime. Their education at MIT and their specialized skills allowed them to exploit the Ethereum network in a way never seen before. The involvement of the US Department of Justice and the IRS was crucial in solving this crime. This case highlights the importance of blockchain integrity and the need for better security in cryptocurrency networks. The legal and ethical implications of this case will likely influence future decisions in the field of cryptocurrency and technology.

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