Category: Cryptocurrency

This post was originally published on this site

According to a recent report by JPMorgan (NYSE:JPM), the likelihood of approval for spot ether (ETH) exchange-traded funds (ETFs) in May remains uncertain, with no more than a 50% chance of approval. The report suggests that if the Securities and Exchange Commission (SEC) does not approve these products next month, litigation against the regulatory body is probable.

JPMorgan reaffirms its stance, initially expressed in January, that approval for spot ether ETFs is unlikely in the upcoming month. The SEC is expected to make final decisions on certain ETF applications by May 23, following its approval of spot bitcoin (BTC) ETFs earlier this year, sparking speculation about potential approval for ether ETFs.

Analysts at JPMorgan, led by Nikolaos Panigirtzoglou, anticipate potential litigation against the SEC if spot ether ETFs are not approved in May. They suggest that the SEC is likely to face legal challenges, similar to previous cases involving Grayscale and Ripple, and eventually approve spot ether ETFs, albeit not in May.

The report highlights one reason why the SEC might face difficulties in any potential litigation: the decreasing concentration in staking on the Ethereum network, which reduces the likelihood of Ether being classified as a security.

Additionally, JPMorgan points out in a recent report that the share of staked ether held by Lido has continued to decline, alleviating concerns about network concentration.

The investigation by the SEC into companies associated with the Ethereum Foundation aligns with JPMorgan’s cautious outlook, reinforcing the uncertainty surrounding spot ether ETF approval in May.

Featured Image: Freepik

Please See Disclaimer

This post was originally published on this site

Bitfinex Securities El Salvador S.A. de C.V., a leading tokenized securities platform, is driving an innovative initiative to finance the construction of a Hampton by Hilton hotel complex at El Salvador International Airport through a tokenized debt issuance.

The token, dubbed HILSV, will be pegged to the U.S. dollar and tether (USDT) and will be issued on the Liquid Network, a bitcoin sidechain, as detailed in a recent press release.

This groundbreaking tokenized debt offering, marked by the launch of HILSV, signifies a significant milestone in the development of El Salvador’s capital markets. Bitfinex Securities has partnered with Inversiones Laguardia (HILSV), a reputable entity in El Salvador, to oversee the tokenized debt, with Ditobanx managing the tokenization and structuring of the transaction on the Liquid blockchain.

HILSV seeks to raise $6.25 million and will offer a 10% coupon over five years, with a minimum investment threshold of $1,000. Inversiones Laguardia S.A. de C.V. will facilitate the issuance of the tokenized debt.

The raised funds will be allocated towards the development of a 4,484-square-meter hotel complex, boasting 80 rooms, five commercial spaces, a swimming pool, restaurants, and various amenities across five levels. While Hilton Hotels is associated as a franchisor, it does not endorse any offering and bears no responsibility.

Despite Hilton’s limited involvement, the project is anticipated to create significant economic opportunities, with approximately 1,000 jobs during construction and up to 5,000 direct and indirect jobs upon operationalization.

Paolo Ardoinio, Bitfinex Securities CTO, hailed the launch of HILSV as a pivotal moment for El Salvador’s capital market, offering investors access to previously unavailable asset classes while enabling issuers to tap into new funding sources.

Roberto Laguardia, President of Inversiones Laguardia, emphasized the transformative impact of the project, leveraging digital asset laws to unlock capital markets and foster economic growth.

Bitfinex Securities made history in January by becoming the first regulated entity to secure a license for operation in El Salvador under the nation’s Digital Asset Securities Law. This landmark achievement aligns with the growing demand for regulated investment avenues, following the successful introduction of U.S. spot bitcoin exchange-traded funds.

Building on its momentum, Bitfinex Securities is set to unveil a series of financial asset issuances in the first half of this year, following the success of its tokenized bond offering in Kazakhstan.

El Salvador’s proactive stance on crypto adoption, including granting Bitcoin legal tender status and launching the “Adopting El Salvador Freedom Visa” program, further underscores its commitment to fostering innovation and financial inclusion.

Featured Image: Freepik @ starline

Please See Disclaimer

This post was originally published on this site

Cryptocurrency exchange Luno has become one of the inaugural firms to secure a license from South Africa’s Financial Services Conduct Authority (FSCA), solidifying its status as a recognized financial services provider within the country.

The granting of the financial services provider license to Luno comes in the wake of the FSCA’s classification of crypto assets as financial products under the Financial Advisory and Intermediary Services Act of 2002 (FAIS).

Expressing enthusiasm about this milestone, Christo de Wit, Luno’s South Africa country manager, underscored the significance of being the premier licensed crypto asset service provider in the nation. He emphasized Luno’s decade-long commitment to the crypto market and its dedication to ensuring compliance, safety, and security for its clientele.

Luno, initially launched in 2013, operates as a crypto exchange alongside offering a cryptocurrency investment app, extending its services to over 40 countries across Europe, Africa, Asia, and Australia.

The FSCA’s move to authorize operating licenses for 59 cryptocurrency exchanges signifies a broader regulatory framework taking shape. Out of over 300 South African crypto providers seeking permits, only 59 have met the FSCA’s criteria for approval. As per regulatory mandates, digital asset exchanges must obtain permits to conduct operations within the country.

In alignment with its stance on regulatory oversight, the FSCA had previously classified cryptocurrency assets as financial products in 2022, underscoring the necessity for regulation to safeguard financial consumers and combat illicit financial activities like money laundering and terrorism financing. Exchanges were given until November 30 to apply for licenses, failing which they risked enforcement actions.

The FSCA’s approach to regulating crypto assets, outlined in 2021, emphasizes a phased and structured integration into the South African regulatory landscape. With a surge in retail interest in crypto assets, the FSCA remains vigilant against instances of consumer abuse, fraud, and market misconduct, both domestically and internationally. Recent media reports have highlighted schemes exploiting crypto assets, further reinforcing the imperative for regulatory intervention to uphold market integrity.

Featured Image: Freepik

Please See Disclaimer

This post was originally published on this site

This post was originally published on this site

This post was originally published on this site

Auradine, a web infrastructure startup, and Bitcoin miner manufacturer, has secured $80 million in a Series B funding round as it prepares for the upcoming Bitcoin halving event and the shipment of its Teraflux Bitcoin miners.

The funding round, described as “oversubscribed,” saw participation from a range of investors, including StepStone Group, Top Tier Capital Partners, MVP Ventures, Maverick Capital, Celesta Capital, Mayfield Fund, and Marathon Digital, among others. According to Auradine, the round exceeded its initial target of $70 million due to heightened investor interest.

CEO and co-founder Rajiv Khemani disclosed that the Series B round comprised $60 million in equity and $20 million in debt, mirroring the structure of Auradine’s previous Series A round, which totaled $81 million. While Khemani refrained from commenting on the company’s current valuation, he expressed confidence in Auradine’s trajectory towards potentially reaching a $1 billion valuation in the future.

Auradine’s Series B funding comes ahead of the anticipated Bitcoin halving event, which is expected to occur next week. Khemani noted that the company has already secured $80 million in bookings and boasts an order pipeline exceeding $200 million, driven by robust demand for its Teraflux bitcoin miners.

With a focus on energy efficiency and demand response, Auradine anticipates that its products, particularly its EnergyTune capability and energy-efficient silicon, will align well with post-halving market dynamics.

Established in 2022 and headquartered in California, Auradine introduced its Teraflux bitcoin miners in November last year. The company has since supplied its machines to over 30 prominent data-center-scale miners. Notably, Auradine emphasizes the importance of designing its bitcoin miners in the U.S. to ensure decentralized supply and enhance national security amid geopolitical challenges.

While Bitcoin miners constitute Auradine’s inaugural product line, the company is exploring opportunities to expand into other sectors, including blockchain and artificial intelligence. Khemani revealed that Auradine is actively developing additional product lines within these domains, aiming to deliver innovative solutions soon.

Currently employing approximately 75 individuals, Auradine plans to expand its workforce, particularly in research and development and supply chain operations, to support its growth initiatives.

Featured Image: Freepik

Please See Disclaimer

This post was originally published on this site

International cryptocurrency exchange platform Coinbase has introduced an easier way for UK customers to engage in cryptocurrency transactions with the launch of Apple Pay integration.

The announcement, made on Wednesday, reflects Coinbase’s commitment to fostering greater crypto adoption in the UK.

Apple Pay Integration Facilitates Crypto Transactions in the UK

The UK holds significant importance for Coinbase, witnessing over $1.39 billion in cryptocurrency gains last year alone. The introduction of Apple Pay integration is poised to streamline the process of buying and selling cryptocurrencies for UK residents.

Daniel Seifert, Coinbase’s Country Director for the U.K. and Vice President, of EMEA, expressed pride in the announcement, emphasizing that the integration allows UK users to leverage Apple Pay for easy, secure, and private cryptocurrency transactions online and in-app. Seifert highlighted the alignment of this move with Coinbase’s overarching goal of enhancing accessibility to digital assets in the UK.

Challenges and Opportunities in the Crypto Market

The launch of Apple Pay coincides with a period of challenges in the crypto market. Coinbase’s latest market commentary report, released on April 5, highlighted a slowdown in crypto volumes as the market seeks new narratives to drive further growth.

However, Coinbase remains optimistic about the market’s prospects, particularly with the upcoming Bitcoin halving event scheduled for April 20 or 21. This event will witness a reduction in the block reward for Bitcoin miners, potentially leading to a decrease in Bitcoin supply and an associated increase in its price.

Positive Developments for Coinbase and the UK Crypto Market

Both the introduction of Apple Pay integration and the impending Bitcoin halving event are viewed as positive developments for Coinbase and the UK crypto market at large.

With its strategic position, Coinbase stands to benefit from the growing interest in cryptocurrencies within the UK. The integration of Apple Pay represents a significant step forward in enhancing accessibility to cryptocurrencies for UK residents, aligning with Coinbase’s mission to make digital assets more accessible globally.

Featured Image: Megapixl

Please See Disclaimer

This post was originally published on this site

Despite the release of hotter-than-expected inflation data and doubts surrounding potential Federal Reserve rate cuts, the Bitcoin price unexpectedly surged on Wednesday, showcasing resilience amidst market turbulence.

The US Consumer Price Index (CPI) reported a 0.4% increase in March, surpassing the anticipated 0.3% rise, with core CPI metrics also exceeding forecasts. Consequently, US bond yields and the US dollar experienced significant gains as traders reevaluated their expectations regarding the Federal Reserve’s rate cut.

The US 10-year yield reached its highest level since November, rising nearly 20 basis points, while the US Dollar Index (DXY) surged 1% to over 105, hitting its peak since November 2023. These movements led to a decline in US stock prices, with the S&P 500 down approximately 1% for the day, reaching its lowest level in nearly four weeks.

Traditionally, lower stock prices alongside strength in yields and the US dollar tend to signal weakness for crypto prices due to their positive correlation with stocks and negative correlation with yields and the USD. However, Bitcoin’s bounce back to $69,000 surprised some traders, indicating that the cryptocurrency market may not be as closely linked to traditional financial markets as previously thought.

Traders Reevaluate Expectations for Fed Rate Cuts

Expectations for Federal Reserve easing have partly driven Bitcoin’s recent price appreciation. However, following the latest data, there has been a reduction in bets on Fed rate cuts. US interest rate futures markets are now pricing only a 15% chance of a rate cut in June, down from 57% one month ago.

This adjustment follows a series of stronger-than-expected US economic data releases, including Wednesday’s hot CPI report, which have prompted policymakers to hesitate in expressing support for near-term rate cuts.

Factors Influencing Bitcoin’s Resilience

Despite market uncertainties, several factors may have contributed to Bitcoin’s resilience on Wednesday. One possible factor is the diminishing impact of large-scale selling of Grayscale Bitcoin Trust (GBTC) shares by bankrupt crypto estates, as suggested by Grayscale CEO Michael Sonnenshein.

Another factor could be the upcoming Bitcoin halving, scheduled to occur next Saturday. The halving is expected to reduce long-term sell pressure from miners and could be a bullish factor for Bitcoin’s price.

However, the short-term market impact of the halving remains uncertain, with past occurrences sometimes resulting in sharp corrections in the market. Nevertheless, the long-term outlook for Bitcoin remains positive, driven by factors such as the rising US deficit, potential ETF flows, and the anticipation of a Bitcoin ETF approval.

In conclusion, while short-term price movements are difficult to predict, the long-term outlook for Bitcoin remains bullish. Despite potential market fluctuations, Bitcoin’s resilience amidst changing economic conditions suggests a favorable environment for future price growth.

Featured Image: Freepik

Please See Disclaimer

This post was originally published on this site

David Pan, the founder of Ace Exchange in Taiwan, along with six other individuals, has been indicted by a Taiwanese court on April 8 on charges related to money laundering and cryptocurrency fraud involving digital assets valued at NT$340 million New Taiwan dollars ($10.7 million).

The court ordered the confiscation of the defendant’s property and other assets worth $110,000.

Pan is accused of defrauding at least 162 individuals by offering a fraudulent product through over-the-counter (OTC) exchanges and fake investment platforms. He allegedly created an offshore trading platform that included a cryptocurrency wallet service named “Alfred Wallet,” which was used to deceive victims into depositing their funds. Once the funds were deposited, investors lost access to them, realizing they had been scammed only when attempting to withdraw their cryptocurrencies or locked out of their wallets after depositing them.

In response to the indictment, Ace Exchange released a statement distancing itself from Pan and clarifying that the wallet service involved in the case was not a product of Ace but was developed by a third-party team hired by Pan. The exchange assured users that its operations were unaffected, emphasizing the security of user assets and the smooth functioning of deposit and withdrawal services.

Pan, a former executive, had not been involved in the daily operations of Ace Exchange since 2022, according to the exchange.

Taiwan has seen a surge in cryptocurrency fraud and money laundering cases. Another incident involved a collaborator named Lin, accused of orchestrating a cryptocurrency fraud scheme with Pan. Authorities seized cash and cryptocurrencies during a raid on Lin’s residence, leading to the delisting of certain trading pairs on Ace Exchange.

In a separate case, Yuting Zhang, the COO of Bitgin exchange, was arrested for alleged involvement in a money laundering network, while another individual named Chuang was arrested for fraud and money laundering using Bitcoin ATMs imported into Taiwan without proper reporting to the Financial Supervisory Commission (FSC).

The impact of such incidents, coupled with events like FTX’s collapse, has affected Taiwanese investors, leading to a push for regulations to protect crypto investors in the country. Taiwan’s Financial Supervisory Commission (FSC) has announced plans to introduce new digital asset regulations in September 2024.

Featured Image: Freepik

Please See Disclaimer

This post was originally published on this site

Short sellers targeting MicroStrategy (NASDAQ:MSTR) have faced significant losses, totaling $1.92 billion since March, as per data from S3 Partners. This underscores the impact of a rally that has propelled the stock’s performance beyond that of bitcoin.

The approval of several spot bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC) in January has brought the once-nascent asset class closer to mainstream adoption.

Traders betting against crypto exchange Coinbase (NASDAQ:COIN) and bitcoin miner CleanSpark (NASDAQ:CLSK) have also suffered losses, with figures amounting to $593.50 million and $106.40 million, respectively, according to the data.

MicroStrategy held nearly 190,000 bitcoins on its balance sheet as of the end of 2023 and has expressed intentions to further increase its exposure to the cryptocurrency. The company recently sold convertible debt twice within a week to raise funds for purchasing more Bitcoin.

Analysts at BTIG noted in an April report that the premium for MicroStrategy is driven by investors seeking exposure to bitcoin who may not have direct access to the cryptocurrency or ETFs. The company’s ability to raise capital for expanding its bitcoin holdings is viewed positively by shareholders, the brokerage added.

Despite the recent optimism surrounding certain crypto-related stocks, short interest in nine of the most closely monitored companies in the crypto space remains high, standing at 16.73% of the total outstanding shares, which is more than three times the average in the United States.

The SEC’s discomfort with crypto persists, and its approval of spot bitcoin ETFs may not necessarily indicate a willingness to embrace similar products, such as spot ethereum ETFs, Reuters has reported.

Alan Konevsky, chief legal and corporate affairs officer at online investment platform tZERO, remarked that the decision on spot bitcoin ETFs does not signal a change in philosophy at the Commission and may not lead to further favorable decisions.

Short sellers engage in selling borrowed shares with the expectation of buying them back at a lower price later, thereby profiting from the price difference.

Featured Image: Freepik

Please See Disclaimer