This week witnessed significant developments across the cryptocurrency landscape, from regulatory delays on Ethereum ETFs to major institutional movements in Bitcoin. Market participants closely monitored actions by Grayscale, regulatory updates from the SEC, and emerging trends in Asia's digital asset space. Here’s a breakdown of the most impactful stories.
Top 10 News Highlights
SEC Postpones Decision on BlackRock’s Spot Ethereum ETF
The U.S. Securities and Exchange Commission (SEC) has delayed its decision regarding BlackRock’s proposed spot Ethereum ETF until March. In an official filing, the SEC stated that additional time is necessary to thoroughly evaluate the proposed rule change and address pertinent issues. A final decision—whether approval, rejection, or further proceedings—is expected by March 10. Subsequently, the SEC also postponed its ruling on Grayscale’s application to convert its Ethereum Trust into a spot ETF.
Bloomberg analyst James Seyffart noted that such delays for spot Ethereum ETFs are likely to continue sporadically in the coming months, with May 23 emerging as the next critical date to watch.
Grayscale Moves Over 100,000 BTC to Exchanges
Since the launch of spot Bitcoin ETFs on January 11, Grayscale has transferred nearly 113,000 BTC from its wallets, primarily to Coinbase Prime, indicating preparation for sales. As of January 25, Grayscale’s GBTC held approximately 537,000 BTC, reflecting a reduction of about 100,000 BTC since the ETF began trading. Bloomberg analyst Eric Balchunas observed that GBTC’s trading volume declined again on January 24, potentially signaling a reduction in selling pressure.
U.S. Plans to Dispose of 2,933 Bitcoin Seized in Silk Road Case
A U.S. District Court in Maryland has issued a notice of intent to dispose of 2,933 BTC forfeited in a law enforcement operation against Ryan Farace and Sean Bridges in February 2021. At the time of the filing, the seized Bitcoin was valued at approximately $133 million.
U.S., U.K., and Australia Sanction Crypto Traders Linked to Hamas
The U.S. Treasury’s Office of Foreign Assets Control (OFAC), in coordination with authorities in the U.K. and Australia, has imposed sanctions on individuals and entities accused of facilitating financial transactions for Hamas. Unlike previous actions, this sanctions package did not list specific cryptocurrency addresses but targeted 189 addresses associated with three exchanges.
Hong Kong’s First Spot Virtual Asset ETF Expected by Mid-2024
According to Jackson Poon, Executive Director and Head of Regulatory Affairs at licensed virtual asset platform OSL, Hong Kong could see its first spot virtual asset ETF launched by mid-2024. Poon mentioned that between five to ten fund companies are currently conducting research, with up to five advancing more rapidly. He acknowledged the challenge of ensuring reasonable fees given the limited number of licensed platforms in the market.
Binance Phases Out Russian Ruble Services
As part of its exit from the Russian market following its sale to CommEX, Binance will gradually terminate all services related to the Russian ruble (RUB). Users are encouraged to convert their RUB balances into other available assets. Starting February 1, 2024, any remaining RUB balances will be automatically converted to FDUSD at the real-time exchange rate provided by xe.com.
In related news, CNBC reported that Binance founder Changpeng Zhao had offered his $4.5 billion stake in Binance as collateral to secure permission to travel to the UAE for a family medical emergency. A federal judge had previously denied his travel request.
Terraform Labs Files for Chapter 11 Bankruptcy
Terraform Labs (TFL) has filed for Chapter 11 bankruptcy, describing the move as a strategic decision to continue operations and support the Terra community. The company stated that it intends to meet all financial obligations to employees and suppliers without requiring additional funding. TFL also plans to expand its Web3 offerings, including the acquisition of Pulsar Finance, the launch of Station v3 cross-chain wallet, and upgrades to the Enterprise Protocol for cross-chain staking.
Tesla Holds Steady on Bitcoin Holdings
Tesla’s Q4 2023 earnings report revealed that the company neither bought nor sold any Bitcoin during the quarter, maintaining its holding of 9,720 BTC for the sixth consecutive quarter.
Sothe’s Auctions Bitcoin Ordinals NFT for Over $250,000
“Genesis Cat,” an Ordinals NFT by digital artist FAR, sold for 6.31 BTC (approximately $254,000) at a Sothe’s auction after receiving over 50 bids. This sale precedes a broader auction of the Quantum Cats Ordinals collection by Taproot Wizards, scheduled for January 29.
Security Predictions for the Crypto Industry in 2024
Information security officer @IM_23pds from SlowMist shared predictions for crypto security trends in 2024. Key points include increased attacks by professional hacking teams using advanced social engineering, the emergence of new phishing-as-service leaders, growth in malware-as-service targeting crypto, and more sophisticated asset theft tools. The prediction also emphasized that global law enforcement will intensify efforts against crypto-related crimes.
Notable Fundraising Events
- Japanese Web3 security project KEKKAI raised 230 million JPY in a seed round.
- On-chain finance platform VETA Finance secured $2.85 million in strategic funding.
- Bagel completed a $3.1 million pre-seed round led by CoinFund.
- EDX Markets announced the closure of its Series B funding round.
- IBC protocol infrastructure provider Polymer Labs raised $23 million in a Series A.
- Ingonyama raised $21 million in a seed round.
- Doppel raised $14 million in a Series A round led by a16z.
- Crypto bank Sygnum raised over $40 million, led by Azimut Holding.
- B² Network completed a seed round with participation from HashKey Capital and OKX Ventures.
- Ethereum historical data protocol Axiom raised $20 million in a Series A led by Paradigm.
For more details on industry fundraising activities, consider professional tracking resources. 👉 Explore investment trends
Frequently Asked Questions
What does the SEC’s delay mean for Ethereum ETFs?
The delay allows more time for regulatory review and does not imply rejection. Analysts expect further evaluations with key deadlines in March and May.
Why is Grayscale moving Bitcoin to exchanges?
Large transfers to exchanges typically indicate preparation for sale, reflecting market supply pressures. Recent volume decreases may suggest selling activity is slowing.
How significant is Hong Kong’s potential spot ETF?
A spot ETF in Hong Kong would enhance institutional access to digital assets in Asia, potentially influencing regional market dynamics and adoption.
What are Bitcoin Ordinals?
Ordinals are digital artifacts inscribed on individual satoshis, enabling NFT-like functionality on the Bitcoin blockchain. Their growing popularity reflects expanding use cases for Bitcoin.
How can investors stay informed on crypto security?
Following updates from reputable security firms, using hardware wallets, and enabling multi-factor authentication are essential practices. 👉 Learn security best practices
What impact do sanctions have on crypto markets?
Sanctions can cause short-term volatility but also demonstrate increasing regulatory scrutiny aimed at preventing illicit activities and promoting market integrity.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Readers should comply with local regulations and avoid engaging in any illegal financial activities.