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- Spot Bitcoin ETFs top $4.5B total volume on the first day of trading 📈💰
Spot Bitcoin ETFs top $4.5B total volume on the first day of trading 📈💰
PLUS: USDC issuer Circle files for IPO in the United States. South Korea Regulator Holds Firm Stance Against Crypto ETFs Approval.
Manan Vora
January 12, 2024
Snapshot Web3
January 12, 2024
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Regulatory and Legal News
South Korea's Financial Services Commission (FSC) has maintained its stance against the approval of cryptocurrency exchange-traded funds (ETFs). The FSC stated that the launch of virtual currency ETFs is "impossible," emphasizing that the ban is in place to stabilize financial markets and protect investors. The country has already prohibited banks and financial institutions from buying and holding cryptocurrencies. The FSC official mentioned that the ban aligns with the government's consistent principle of prohibiting financial institutions from investing in virtual assets. This decision contrasts with the recent approval of Bitcoin ETFs in the United States.
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Innovation and Launches
Blockchain ecosystems Hedera and Algorand have formed an alliance called the DeRec Alliance to collaborate on developing a decentralized recovery system for digital assets. The alliance introduced the Decentralized Recovery (DeRec) open-source protocol, aiming to standardize the approach to secret management for user security. The DeRec protocol relies on secret sharing among designated helpers, allowing users to recover their secrets without compromising information. Hedera co-founder Leemon Baird emphasized the need for industry collaboration to create standards and open-source code to ensure user-friendly key recovery across all blockchains. The initiative seeks to enhance user experience and minimize risks in self-sovereignty.
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NFT, Gaming and Metaverse
The removal of support for nonfungible token (NFT) profile pictures on Twitter (formerly X) has sparked discussions within the community. Twitter introduced the NFT profile picture feature in January 2022, allowing paid subscribers to link their NFTs to their Twitter profile pictures. The move to remove NFT profile pictures has led to various reactions, with some expressing concerns about spotting fake accounts and scams on Crypto Twitter. There are speculations about the potential motives behind the decision, including the possibility of Twitter selling exclusive NFTs in the future. Overall, the move has generated mixed reactions within the crypto community.
Siemens has partnered with Sony to enter the metaverse, focusing on industrial applications. The collaboration aims to introduce a mixed-reality headset in 2024, specifically designed for professional designers and engineers rather than gamers. Siemens CEO Roland Busch mentioned that the headset, equipped with artificial intelligence, is geared towards professional consumers, enhancing productivity for creators and manufacturers. The device, complemented by Siemens' software, utilizes NVIDIA's resources for creating photorealistic images and involves Amazon Web Services in the project. The headset showcased at CES features Sony's micro OLED displays, Qualcomm's Snapdragon XR2+ Gen 2 chip, and external accessories for real-time interaction with digital objects.
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Scams and Hacks
A recent report by Mandiant, a threat intelligence and cybersecurity company, reveals details about the widespread exploitation of Solana users through a campaign known as CLINKSINK. The CLINKSINK campaign involves malicious actors leveraging drainers—malicious scripts and smart contracts—to steal funds and digital assets, including non-fungible tokens (NFTs), from unsuspecting victims' cryptocurrency wallets. The campaign has been active since December 2023 and has resulted in the loss of nearly $1 million worth of SOL tokens. Mandiant warns of a growing trend of financially motivated threat actors targeting cryptocurrency users and services, emphasizing the need for increased awareness and vigilance within the cryptocurrency community.
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Funding, Acquisitions and Partnerships
Circle Internet Financial, the issuer of USD Coin (USDC), has reportedly filed for an initial public offering (IPO) in the United States, according to a report by Reuters. The filing was made confidentially, and Circle did not disclose the proposed price range for the IPO or the number of shares it plans to sell. The stablecoin issuer anticipates the IPO to move forward after the U.S. Securities and Exchange Commission completes its review, subject to market conditions. Circle is known for issuing USDC, the second-largest stablecoin by market capitalization, pegged to the U.S. dollar with a market cap of $25 billion.
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Price Action
The Ethereum price climbed above the $2,600 resistance level and extended its gains. ETH is currently trading above $2,550 and the 100-hourly Simple Moving Average. There is a key bullish trend line forming with support at $2,590 on the hourly chart. If there is a fresh increase, Ethereum might face resistance near the $2,640 level, and the next major resistance is near $2,680. A clear move above $2,680 could push ETH towards $2,720, followed by major resistance levels at $2,780 and $2,880. On the downside, initial support is at $2,590, followed by the $2,465 zone. A break below $2,465 might lead to further losses, with potential support at $2,350 and $2,220. The hourly MACD is losing momentum, and the RSI is above the 50 level.
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Interesting Reads
Elon Musk, initially skeptical about using Bitcoin on Mars due to transaction settlement speed, later reconsidered the idea. While discussing the possibility on Space on X, Musk noted the challenges posed by Bitcoin's reconciliation time but later suggested it might be feasible with a localized network on Mars. He agreed with Bitcoin core developer Matt Corallo that the slow transaction speed could be addressed through a localized Lightning Network. Blockstream CEO Adam Back and others expressed optimism about the concept. Musk's comments come as part of his vision for building a human colony on Mars by 2050.
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Miscellaneous
Spot Bitcoin ETFs were also reportedly not currently available for purchase on the brokerage platforms of Citi, Merill Lynch, Edward Jones, and UBS.
Spot Bitcoin ETFs topped $4.5 billion in trading volume on the first day of trading, but one of the issuers has clarified it hasn’t yet made the cut.
The firm says the cuts are necessary to consolidate the team and “focus on a narrower and higher-impact set of activities.”
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The information provided in this newsletter is for informational purposes only and should not be interpreted as investment advice, endorsement, or recommendation. Cryptocurrency investments carry significant risk due to their volatility. You should consider your financial situation, investment goals, and risk tolerance before making any investments. We strongly recommend consulting a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.
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