Weekly Crypto Digest for August 28 - September 3, 2023.
Monday, September 04, 2023
TOP news of the crypto industry for August 28 - September 3, by Yellow Capital.
Grayscale won a lawsuit against SEC, Bitcoin price fell below $26K, BlackRock invested over $400M in mining companies, Binance will stop supporting BUSD, Bitcoin trading volume drops to the lowest level in nearly 5 years, and more news.
Grayscale won a lawsuit against the SEC. The regulator postponed the decision on Bitcoin ETF
In June 2022, asset manager Grayscale sued the SEC for refusing to convert GBTC into a Bitcoin ETF. The company submitted an application for conversion of the investment product in October 2021.
In August 2023, the appeal court ordered the Commission to reconsider its decision.
On August 31, the regulator delayed making a decision on applications to launch spot Bitcoin ETFs from BlackRock, Fidelity, Bitwise, VanEck, WisdomTree, Invesco and Valkyrie until at least mid-October.
The department has a total of 240 days from the start of the review.
Bloomberg analysts James Seyffarth and Eric Balchunas raised the likelihood of a spot Bitcoin ETF this year to 75%. Former SEC head Jay Clayton called a positive decision on the instrument inevitable.
Bitcoin price fell below $26,000
On Tuesday, August 29, the quotes of the first cryptocurrency exceeded $28,000 after a US court granted Grayscale Investments’ petition in the case against the SEC.
On the night of Friday, September 1, Bitcoin fell below $26,000. Before this, the SEC postponed a decision on applications to launch spot Bitcoin ETFs.
BlackRock has invested over $400 million in mining companies
Investment giant BlackRock holds shares in four cryptocurrency mining companies worth a total of $411 million.
According to Finbold, on July 30 the company bought in the fall:
Riot Blockchain (RIOT) - 10.7 million shares (6.14%) for $199.08 million;
Marathon Digital (MARA) - 10.9 million shares (6.44%) for $190 million;
Cipher Mining (CIFR) - 2.2 million shares (0.88%) for $8.36 million;
TeraWulf (WULF) - 4.8 million shares (2.28%) for $14.10 million.
The venture capital firm's total investment represents a 0.35% stake of the $117.6 billion it owns.
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Binance will stop supporting BUSD in 2024
Cryptocurrency exchange Binance has informed clients of its intention to stop supporting its stablecoin BUSD in 2024.
In February, the NYDFS initiated an investigation into stablecoin issuer Paxos. The regulator ordered the company to stop producing BUSD. At the same time, the company stopped cooperation with Binance.
The company has stopped issuing new stablecoins by the regulator's instructions. Redemption and conversion operations are supported until at least February 2024.
Bitcoin trading volume drops to lowest level in nearly 5 years
Bitcoin trading volume is at its lowest level in almost five years, CNBC reports, citing information from CryptoQuant.
According to analysts, as of August 12, Bitcoin trading volume across all exchanges was 112,317 BTC, the lowest level since November 10, 2018. Compared to the March peak of 3.5 million BTC, the figure is down about 94%.
The trading volume of the top cryptocurrency has declined throughout August as investors continue to wait for a reason to return to the market.
Pepe developer accuses former team members of stealing $15 million
The only remaining developer of the meme token Pepe (PEPE) said that 3 former team members were behind the theft of 16 trillion coins (~$15 million).
On August 25, on-chain researchers noticed that the PEPE multi-signature wallet reduced the number of required confirmations from five to two and transferred part of the assets to the decentralized exchanges OKX, Binance, KuCoin, and Bybit.
The project representative apologized for the situation and noted that now only he controls the smart contracts of the token. According to him, PEPE will be completely decentralized in the coming months.
Stronghold requests permission for mining on burning tires
Ark Invest and 21Shares have filed bids to launch two exchange-traded funds (ETFs) based on Ethereum. A few weeks earlier, the US Securities and Exchange Commission (SEC) rejected their joint application for a spot bitcoin ETF.
The SEC said in a statement that the companies plan to create two Ethereum ETFs, the ARK 21Shares Active Ethereum Futures ETF (ARKZ) and the ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY). The latter will consist of both Bitcoin and Ethereum futures.
According to the announcement, ARKZ will invest at least 25% of its holdings in Ethereum futures contracts, such as those traded on the Chicago Mercantile Exchange.
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