US SEC Approves First Spot Bitcoin ETFs
The US Securities and Exchange Commission (SEC) has officially approved the first set of spot Bitcoin exchange-traded funds (ETFs) in the country. This comes after the regulatory body’s misleading tweet on January 9, which caused confusion. All applicants submitted their final amended S-1 applications by the given deadline. However, Vanguard, the world’s second-largest asset manager, has decided not to allow customers to purchase any spot Bitcoin ETFs launched on Thursday. On the positive side, Bitwise Asset Management has committed to donating 10% of profits from its Bitwise Bitcoin ETF to non-profit organizations supporting the open-source development of BTC.
Ethereum’s Gas Limit Proposal and Market Reaction
Vitalik Buterin, the co-founder of Ethereum, recently suggested increasing the Ethereum gas limit by 33% to 40 million, aiming to enhance network throughput and improve overall scalability. Meanwhile, as the SEC approved the spot Bitcoin ETFs, Bitcoin (BTC) saw little movement in the market. However, Ethereum (ETH) experienced a significant surge, gaining more than 10% in just one day.
PayPal’s PYUSD and DeFi Benefits
PayPal’s PYUSD stablecoin, which has been lagging behind established stablecoins like USDT and USDC, is leveraging decentralized finance (DeFi) to improve its liquidity. On the regulatory side, the Commodity Futures Trading Commission (CFTC) has released a detailed report highlighting concerns about DeFi, emphasizing the need for more accountability and clear responsibilities.
Blockchain Security and Institutional Adoption
SlowMist, a blockchain security firm, uncovered that despite US sanctions, crypto mixer Tornado Cash managed to launder over $500 million worth of cryptocurrencies in 2023. In terms of institutional adoption, Polygon Labs has introduced the Libre Chain, a protocol powered by the Polygon CDK and supported by major players in institutional blockchain adoption. Additionally, FOX Corporation and Polygon have partnered to launch ‘Verify,’ a tool designed to verify the authenticity and origin of digital content.
Stablecoin IPO and Crypto Lending Firm Recovery
Stablecoin provider Circle has confidentially filed for an initial public offering (IPO) with the SEC. Meanwhile, bankrupt crypto lending firm Celsius is attempting to recover funds from users who withdrew $100,000 or more in the three months leading up to the firm’s bankruptcy filing. Ethical blockchain ecosystem HAQQ has formed a strategic partnership with GoMeat, a decentralized home delivery service, to streamline the availability of halal meat and other food products in the US. Additionally, Digital Currency Group (DCG) has repaid a $700 million loan to Genesis, a crypto broker.
GameStop’s Exit from NFTs and Binance Futures Campaign
Video game retailer GameStop has made the decision to close its NFT marketplace, stepping back from the crypto space. On the other hand, Binance Futures has launched a campaign to promote its recent introduction of USDC-margined perpetual trading pairs.
Hedera and Algorand’s Collaboration for Digital Asset Security
Hedera and Algorand, two prominent blockchain platforms, have joined forces to introduce a decentralized recovery protocol called DeRec. This collaboration aims to streamline digital asset security across Web3, the next generation of the internet focused on decentralization.
Regulatory Criticism and App Removals by Apple
Elizabeth Warren, a US senator, has criticized the SEC’s approval of spot Bitcoin ETFs, stating that the commission was “wrong on the law” regarding the decision. SEC Commissioner Hester Pierce, known for her supportive stance towards cryptocurrencies, expressed discontent with the SEC’s handling of spot Bitcoin ETF applications. In a separate move, Apple removed the apps of nine major cryptocurrency exchanges, including Binance and Kraken, from its App Store in India.
Hot Take: US SEC’s Approval of Spot Bitcoin ETFs Expands Access to Crypto Investment
The US Securities and Exchange Commission’s approval of the first set of spot Bitcoin ETFs marks a significant milestone in the mainstream adoption of cryptocurrencies. With regulated ETFs now available, more investors will have access to Bitcoin as an investment option, potentially driving further growth in the crypto market. This approval also showcases the increasing acceptance and recognition of cryptocurrencies by significant regulatory bodies. However, criticisms and concerns from lawmakers and regulators highlight the ongoing discussions around the proper regulatory framework for digital assets. Overall, this development sets a positive precedent for the future of cryptocurrencies and their integration into traditional financial systems.
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