The cryptocurrency market has turned bearish as Bitcoin (BTC) struggles to hold above $40,000. While preparing this report, Bitcoin was trading at $40,002, down 3% in the past 24 hours. Ethereum (ETH) had lost 3.90% to trade at $2,338.54. XRP was trading at $0.5296, a decrease of 2.10% in the same period.
Major cryptocurrencies, which have lost ground in the past 24 hours, are Binance Coin (BNB – $309.57, -2.30%), VeChain (VET, $0.0263, -4%), EOS (EOS – $0.7024, -1%), Bitcoin Cash (BCH, $235.59, -0.2%), and Polkadot (DOT, $6.44, -4.10%), IOTA (IOTA – $0.2161, -2%), Avalanche (Avax- $30.10, -6.30%), Solana (SOL, $85.41, -4.4%), Cardano (ADA, $0.4851, -2.2%), Shiba Inu (SHIB, $0.00009034, -2%), and ChainLink (LINK – $14.84, -4.20%).
Government Level Initiatives
SEC Grants Approval for First Bitcoin Spot ETFs
The US Securities and Exchange Commission (SEC) has given the green light for the first spot of Bitcoin ETFs, approving 11 applications simultaneously. SEC Chair Gary Gensler accepted the ruling made by the Court of Appeals in August 2023. The ruling clearly stated that the SEC had made the wrong decision by prohibiting the Grayscale Bitcoin Trust from transitioning to an exchange-traded fund (ETF). The judge called the refusal “arbitrary and capricious.”
Highlighting the judgment, Chairman Gensler articulated, “Considering these circumstances and the comprehensive discussion provided in the approval order, I believe that the most sustainable course of action is to authorize the listing and trading of these spot Bitcoin ETP shares.”
Nevertheless, he pointed out the differences between metal commodity-based ETFs and Bitcoin ETFs. “While maintaining a stance of neutrality based on merit, it is noteworthy to highlight that the underlying assets in metal ETPs serve both consumer and industrial purposes. In contrast, Bitcoin, being primarily a speculative and volatile asset, is also associated with illicit activities.”
Interestingly, Democrat Commissioner Crenshaw expressed displeasure over the approval, stating that spot Bitcoin prices are not trustworthy. The argument was made on the basis of an article published by Forbes Digital Assets.
Private Sector Initiatives
SETL Introduces Standing Blockchain Test Network for Regulated Liability Network
SETL has unveiled a standing blockchain test network for the Regulated Liability Network (RLN) using the LedgerSwarm software.
The RLN intends to draw regulated money, i.e., central bank digital currencies (CBDCs), tokenized deposits, and regulated stablecoins, into the institutional ecosystem in the form of tokenized assets. In the US and the UK, a formal RLN trial was conducted.
The Bank for International Settlements (BIS) acknowledges that its Unified Ledger initiative drew inspiration from RLN. Simultaneously, SETL’s Tranquility Test Network, named in commemoration of the first moon landing site, aims to be consistently available. The network operates exclusively on a permissioned basis. Additionally, SETL has publicly released its RLN Protocol and established a framework for receiving technical improvement proposals, mirroring Ethereum’s approach to ERC standards.
Deutsche Börse Group Successfully Acquires Blockchain Fund Distribution Platform FundsDLT
The Deutsche Börse Group has acquired Luxembourg-based blockchain fund distribution platform FundsDLT. The acquisition was approved by Luxembourg watchdog CSSF.
During the acquisition, Philippe Seyll, the CEO of Clearstream Fund Centre, highlighted the advantages associated with an expedited time to market for asset managers and more cost-effective access to funds.
Even though FundsDLT is an associate firm of Clearstream Fund Services, it will function autonomously in Luxembourg without intervention from Clearstream. This arrangement has been made to retain the firm’s CSSF license.
Clearstream stressed that previous stakeholders, namely Credit Suisse Asset Management, UBS Asset Management, and Natixis Investment Managers, are still customers and are helping to improve the platform.
Miscellaneous
Circle, USDC Stablecoin Issuer, Submits Draft Registration Letter for SEC Approval
USDC stablecoin issuer Circle has submitted a draft registration letter to the SEC for going public. Circle had earlier planned to get listed through a SPAC but did not succeed. The SEC clearance for the first spot Bitcoin ETFs could establish a conducive scenario for a stock listing.
In contrast to its prior listing plans, Circle is on course to prove notable profitability at present. This is attributable to its ability to generate a yield surpassing 4% from a stablecoin reserve totaling $25 billion.
The announcement comes a day after Ripple stated that it has begun share repurchases. Notably, the now-defunct Digital Currency Group (DCG), which collapsed after the breakdown of Genesis, is a major stakeholder in Circle. Of late, DCG has disinvested in Coindesk.
Notably, Circle’s USDC is the second largest stablecoin by market cap and the numero uno regulated stablecoin.
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