Category: Cryptocurrency

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For cryptocurrency to gain more value, wider ownership is crucial. Institutions investing directly in bitcoin or indirectly through spot ETFs, launched in January, can drive this growth. Some entities, like MicroStrategy (NASDAQ:MSTR), invest directly in bitcoin, while others, like the State of Wisconsin, invest indirectly. This trend is positive for cryptocurrency as it increases exposure to the asset class.

The State of Wisconsin Investment Board has invested over $160 million in spot bitcoin ETFs, allocating $98 million to BlackRock’s iShares Bitcoin Trust and $63 million to Grayscale’s spot bitcoin ETF. Although this is a small fraction of the board’s $156 billion in assets, it is significant since few large institutions invest in bitcoin.

The approval of these ETFs in January allows equity investors to gain exposure to bitcoin’s price movements without directly buying the cryptocurrency. The ETF sponsors purchase bitcoins and package them into shares, which are then sold to the public.

Bloomberg ETF analyst Eric Balchunas commented on the investment on X, noting that it is unusual for large institutions to invest in new ETFs so quickly. “Normally, you don’t see big institutions in the 13Fs for a year or so until the ETF gains more liquidity. These are not ordinary launches. This is a good sign, expect more institutions to follow, as they often move in herds.”

Balchunas speculates that more funds might invest soon, with Florida and Wyoming being likely candidates. These states are known for their pro-crypto stance and could lead their pension funds to invest in bitcoin or other cryptocurrencies.

The news coincides with increasing discussions about a spot Ethereum ETF, which, if approved, could further ease regulatory concerns and reinforce cryptocurrency’s stability as an investment.

This development marks a pivotal moment for crypto, suggesting that increased institutional interest could lead to broader adoption and a new era for the digital asset class.

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In a largely partisan vote, the U.S. House of Representatives has moved to prohibit the Federal Reserve from launching a central bank digital currency (CBDC). The bill, known as the CBDC Anti-Surveillance State Act, was introduced by Majority Whip Tom Emmer (R-Minn.), with concerns raised by Republicans regarding the potential for a U.S. CBDC to infringe on Americans’ privacy and autonomy.

Democrats, on the other hand, argued during the debate preceding Thursday’s vote that these concerns were exaggerated and that banning the development of a digital dollar would hinder innovation and research in the public sector. Ultimately, the bill received support from 213 Republicans and three Democrats, while 192 Democrats opposed it.

This vote stands in stark contrast to the bipartisan support witnessed the day before, when 71 Democrats joined 208 Republicans in passing the Financial Innovation and Technology for the 21st Century Act. This bill, focused on crypto market structure, aims to grant the U.S. Commodity Futures Trading Commission increased authority over digital assets’ spot market and delineate the Securities and Exchange Commission’s approach to the sector.

The passage of the FIT21 Act was celebrated by industry stakeholders as a significant milestone, signaling growing recognition of the crypto industry’s importance in the United States. Kristin Smith, head of the Blockchain Association, described it as a “watershed moment” for the crypto sector, while Nicole Valentine, director of FinTech at the Milken Institute, hailed it as a “welcome step.”

However, both the market structure bill and the anti-CBDC legislation face uncertain prospects in the Senate, where neither has a clear counterpart. With half of Congress lacking a companion for either piece of legislation, it appears likely that both bills may stall in the Senate, limiting their potential impact on the regulatory landscape surrounding cryptocurrencies.

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The Fantasy Top collection surged to the top of CryptoSlam’s daily non-fungible token sales chart on Wednesday, exceeding $1 million in transactions for the first time this week.

The leading Blast collection reported 7,467 transactions involving 2,246 unique buyers and 2,749 sellers.

Meanwhile, the Ethereum blockchain outperformed other platforms on the same day, recording sales of $6.25 million, although this represented a 22.3% decline from the previous day’s $8.15 million. In the NFT rankings, Bitcoin’s NodeMonkes collection secured the second spot with sales of $908,671, up from the previous day’s $571,992.

NodeMonkes currently ranks 26th in CryptoSlam’s all-time list with total historic sales of $224.5 million, just $2.5 million short of surpassing Crabada, an Avalanche collection.

The third-ranking collection for the day was Mocaverse on the Ethereum chain, which achieved $830,873 in sales, a significant increase from the previous day’s $193,042. On Wednesday, Mocaverse released additional details about its upcoming NFT airdrops.

DMarket from Mythos claimed the fourth position with daily sales of $711,025, a slight dip from the previous day’s $734,617. The collection saw a high volume of activity with 28,120 transactions conducted by 3,635 unique buyers and 3,231 sellers.

Following closely were Solana’s Mad Lads and Ethereum’s The Captainz, ranking fifth and sixth, respectively. Mad Lads recorded $613,391 in sales from 50 transactions, while The Captainz generated $567,277 from 50 transactions as well.

The Bored Ape Yacht Club, a regular feature in CryptoSlam’s daily NFT charts, ranked seventh with $530,359 in sales from just 11 transactions, reflecting the high value of assets within the collection.

Rounding out the top ten were Immutable’s Guild of Guardians Avatars, Polygon’s SKGirl, and Bitcoin’s SOL BRC-20 NFTs, with sales of $514,252, $301,171, and $209,525, respectively.

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Ethereum experienced a remarkable rally on Monday, marking its largest daily gains in three years and surpassing industry giants like Mastercard and LVMH in market capitalization. The surge was triggered by increasing speculation regarding the Securities and Exchange Commission’s (SEC) potential approval of a spot Ethereum exchange-traded fund (ETF).

News of the heightened probability of SEC approval for a spot Ethereum ETF sparked a frenzy of buying activity for ETH, driving its price from under $3,100 to over $3,800 within 24 hours. This significant surge, the largest since May 2021, reflects growing optimism among investors regarding the potential ETF approval.

The momentum was further fueled by a post from Eric Balchunas, a Bloomberg ETF analyst, who raised the probability of spot Ether ETF approval to 75%, citing emerging discussions within the SEC. Balchunas’ post quickly gained traction, amassing nearly five million views and igniting speculation within the crypto community.

The unexpected news surrounding the potential approval of spot ETH ETFs propelled Ethereum’s market cap to over $450 billion, positioning it among the top 20 companies worldwide by market capitalization. Notable companies that Ethereum surpassed include Mastercard (NYSE:MA), LVMH (LVMUY), Procter & Gamble (NYSE:PG), Samsung (KRW), and Bank of America (NYSE:BOA).

However, the approval process for ETFs is not straightforward, as it involves multiple forms and regulatory considerations. While the SEC may greenlight the 19b-4 forms allowing funds to list the ETFs, a decision on the detailed S-1 forms could be delayed. This approach would provide regulators with additional time to evaluate individual applications and understand the implications of ETF launches.

Despite the potential for regulatory complexities, many crypto enthusiasts remain optimistic about Ethereum’s prospects, anticipating a price surge beyond $4,000 and even new all-time highs above $4,900 in the event of spot ETF approval. Similar to Bitcoin’s price trajectory following ETF approvals, Ethereum could experience significant upside momentum.

As the crypto market awaits further developments, the potential approval of spot ETH ETFs could catalyze Ethereum’s continued growth and market dominance in the digital asset space.

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A 43-year-old software engineer, who previously worked on the BlackBerry in the 2000s and helped develop the Windows Phone app store at Microsoft, has now taken on a new challenge. Despite not having worked in crypto until early 2022, Laver is leading Solana Labs’ effort to revolutionize the crypto experience by integrating blockchain capabilities into a mobile device.

“This has that big, sky’s the limit energy,” Laver said in a rare interview with DL News. “This feels like madness, but at the same time, this feels like the end result.”

The end result is Solana’s second mobile phone, called Chapter 2, set to release in early 2025. With a $500 price tag for preorders, Solana has already secured more than 130,000 preorders, totaling $65 million.

A Bold Bet

This ambitious move is significant for the four-year-old blockchain network, given the heavily regulated mobile phone industry, which is dominated by giants like Apple and Samsung.

Why would Solana, a major player in decentralized finance (DeFi) with a token market cap of $82 billion and a leading brand in crypto, venture into hardware manufacturing?

“It’s a tough, tough ask,” said Chris Lewis, an independent telecoms analyst with over 40 years of experience, in an interview with DL News.

The answer lies in control. Solana aims to free crypto from desktop reliance and the restrictive app platforms of Apple and Google. These Silicon Valley giants have long hindered crypto-friendly mobile developers with high fees and app bans.

In today’s world, where investing, shopping, and banking are increasingly mobile, crypto is still struggling to establish a presence. “We’re used to everyone bringing a laptop to dinner, so you don’t miss a drop or a claim,” said Emmett Hollyer, head of business development and operations at Solana Labs.

Overcoming Past Challenges

Solana isn’t the first to challenge the incumbents. Over the past decade, numerous bespoke crypto phones have entered the market, but none have achieved significant success. Last year, Solana introduced the Android-powered Solana Saga, selling about 20,000 of the $600 handsets, far short of the 50,000 unit goal. In contrast, Apple shipped over 80 million iPhones in the fourth quarter alone.

Despite past setbacks, Solana is betting big on the Chapter 2, hoping to carve out a substantial niche in the mobile market and provide a seamless blockchain experience for its users.

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On Wednesday, the U.S. securities regulator urged lawmakers to reject a proposed bill designed to establish a new legal framework for digital currencies, warning it could undermine existing legal precedents and place capital markets at “immeasurable risk.”

The U.S. House of Representatives is set to consider the Republican-sponsored Financial Innovation and Technology for the 21st Century Act, which aims to clarify the jurisdiction of various agencies over digital assets. Proponents of the bill argue that it will provide regulatory clarity, thereby fostering industry growth.

Despite its uncertain future in the U.S. Senate, the legislation comes at a time when the U.S. Securities and Exchange Commission (SEC) is expected to approve applications for spot ether exchange-traded funds, marking a surprising boost for the crypto industry.

SEC Chair Gary Gensler expressed strong opposition to the bill, stating that it “would create new regulatory gaps and undermine decades of precedent regarding the oversight of investment contracts, putting investors and capital markets at immeasurable risk.”

The bill has garnered support from crypto advocates and industry groups, who view Gensler’s SEC as a barrier to broader digital asset adoption. Gensler, however, has consistently argued that cryptocurrencies should be regulated under the same laws as other assets, citing numerous high-profile prosecutions, fraud cases, bankruptcies, and failures within the sector.

In his statement on Wednesday, Gensler highlighted that under the proposed bill, investment contracts recorded on a blockchain would no longer be classified as securities, thereby stripping investors of protections afforded by securities laws. Additionally, he criticized the provision allowing issuers of crypto investment contracts to self-certify their products as digital commodities not subject to SEC oversight, giving the agency only 60 days to challenge such certifications.

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AI-generated content poses a significant online disinformation threat, but blockchain technology can help verify and authenticate the truth, according to William Ogden Moore, Research Analyst at Grayscale Investments.

As AI integrates more into daily life, its impact on sectors like finance has been profound, facilitating smarter investments and market analysis. However, the rise of generative AI has also introduced risks, notably the creation of “deepfakes.” These highly realistic digital forgeries use AI to manipulate or generate visual and audio content, such as the deepfake video of Barack Obama created by comedian Jordan Peele to highlight the technology’s potential dangers.

The prevalence of deepfakes is increasing rapidly. A report by Sumsub Research noted that between 2022 and the first half of 2023, deepfakes as a proportion of content in the U.S. surged from 0.2% to 2.6%. Experts warn that deepfakes could sway public opinion and influence events like elections, posing a threat to democracies worldwide.

Public blockchains like Ethereum offer a potential solution. Their transparency, decentralized nature, and focus on network security and immutability make them well-suited to verify content authenticity. Public blockchains record information transparently and accessibly, allowing anyone to verify its validity, such as the creator or timestamp. This decentralized structure reduces the risk of manipulation and ensures tamper-resistant records.

Blockchain technology has already proven its ability to authenticate content, as seen with digital art in the form of non-fungible tokens. Blockchain can similarly authenticate videos, images, and text, laying the foundation for tools to combat deepfakes, such as OpenAI’s Worldcoin, Irys, and Numbers Protocol.

With AI-generated content expected to dominate the internet in the future, protecting against deepfakes is critical. Public blockchains, operated collectively by users, offer promising features to address these challenges. However, the technology is still in its early stages, and widespread adoption remains a challenge.

To uphold truth and transparency, society must remain committed to developing and implementing blockchain solutions as we navigate the risks posed by emerging technologies.

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Cryptocurrency is quickly becoming an election issue, with Ethereum (ETH-USD) emerging as a significant beneficiary. From Monday to Tuesday, Ether surged 21%, marking its best two-day performance since January 2021.

This rally occurred despite initial concerns about the prospects for the next big crypto surge. The government’s hesitation to approve a suite of spot Ether ETFs had dampened enthusiasm. This hesitation contrasted with the excitement over Bitcoin ETFs, which had revitalized the crypto market late last year and sustained its momentum into this year.

The general expectation was that widely available crypto ETFs would facilitate crypto adoption among latecomers, allowing less crypto-savvy investors to allocate a “responsible” portion of their 401(k)s to these new ETFs. However, Jim Bianco of Bianco Research cast doubt on this theory, especially with the Securities and Exchange Commission showing no signs of approving spot Ether ETFs as a crucial deadline approached.

Then, according to Anthony Pompliano in the Pomp Letter, “the game changed.” On Monday, Bloomberg’s Eric Balchunas and James Seyffart increased their odds of spot Ether ETF approval to 75% from 25%, citing “chatter that the SEC could be doing a 180 on this increasingly political issue.”

This sudden shift in the SEC’s stance led to a surge in Ether prices. Matt Hogan, Chief Investment Officer at Bitwise Asset Management, highlighted this development on Yahoo Finance’s Market Domination. He noted a “real sea change in Washington around crypto,” with recent bipartisan crypto legislation and a growing coalition around stablecoins.

Hogan emphasized that “Washington has gotten the message that crypto is good for America and popular with American voters.” This change in sentiment was also reflected in former President Donald Trump’s recent pro-crypto stance.

Whether or not the SEC’s apparent change of heart is related, crypto enthusiasts are energized by the prospect of political support. Pompliano articulated this optimism, stating, “A bunch of people on the internet created a $2.6 trillion industry in the face of government pressure. Imagine what happens when the government is now actively courting these individuals and companies, along with embracing the technology. The headwind becomes a tailwind quickly.”

Spoken like a true crypto bull.

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A surge of enthusiasm permeates cryptocurrency markets as hopes for the approval of exchange-traded funds (ETFs) directly investing in Ether soar, signaling a notable shift in sentiment.

The positive outlook coincides with a flurry of developments involving potential ETF issuers, stock exchanges facilitating their trading, and the US Securities and Exchange Commission (SEC). Sources familiar with the matter revealed that the SEC requested updates to rule change filings from the New York Stock Exchange and Cboe Global Markets, indicating a potential uptick in the likelihood of approval. However, the outcome remains uncertain, underscoring the complexities involved.

Fidelity Investments recently amended its S-1 registration statement with the SEC for its proposed spot-Ether ETF, addressing key concerns such as staking and derivative investments. This move precedes a looming May 23 deadline for the SEC to review VanEck’s ETF application, adding to the anticipation.

Analysts view potential ETF approval as a significant regulatory milestone, with expectations of substantial inflows into Ether upon implementation, akin to the impact observed with Bitcoin ETFs. Geoff Kendrick of Standard Chartered estimates inflows ranging from $15 billion to $45 billion within the first year post-approval.

The Grayscale Ethereum Trust (ETHE) serves as another barometer of market sentiment, with its discount to underlying Ether holdings narrowing significantly, reminiscent of patterns observed before the approval of Grayscale’s Bitcoin Trust conversion.

Ether’s recent price surge, coupled with heightened probabilities of ETF approval, reflects growing optimism among investors. While the SEC refrains from commenting on specific filings, stakeholders eagerly await developments in this evolving landscape.

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Uniswap Labs, the innovator behind Ethereum’s leading decentralized trading platform, refuted the US Securities and Exchange Commission’s (SEC) allegations, contending that crypto tokens do not qualify as securities but are akin to file formats such as PDFs.

The New York-based startup rebuffed claims of operating an unregistered exchange and broker-dealer, following a Wells notice served by the SEC’s Enforcement Division last month, signaling potential legal action.

Marvin Ammori, Uniswap Labs’ Chief Legal Officer, emphasized during a Zoom press conference, “Tokens are simply a file format for value and are not inherently securities. The SEC must unilaterally redefine exchange, broker, and investment contracts to encompass our operations.”

In a detailed 40-page response to the SEC, Uniswap Labs asserted that pursuing legal action against them poses risks to the SEC’s authority over crypto tokens. The company expressed readiness to litigate, confident of prevailing.

SEC Chairman Gary Gensler’s stance that decentralized exchanges fall under regulatory oversight has been challenged by Uniswap Labs, which argued that UNI tokens, serving as Uniswap’s governance token, do not meet the Howey Test requirements for investment contracts.

Additionally, Uniswap Labs refuted the classification of LP tokens as securities, clarifying that these tokens function as accounting tools to monitor users’ provided assets and earned fees, rather than serving investment purposes.

Uniswap Labs’ response underscores the ongoing debate surrounding the regulatory status of digital assets and decentralized exchanges, highlighting the evolving landscape of crypto regulation.

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