Spot Bitcoin ETF Approval is Unlikely to Change Regulatory Environment in the US
The approval of a spot Bitcoin exchange-traded fund (ETF) is seen as a positive development, but it’s unlikely to resolve the broader regulatory issues in the US. While Bitcoin is considered a commodity, an ETF for Bitcoin won’t necessarily lead to ETFs for other cryptocurrencies. However, it will provide a familiar investment vehicle for advisors and investors looking to enter the crypto market. The lack of separation between custody and trading remains a hurdle for approval, and applicants will need to demonstrate that their assets are custodied with a qualified provider and traded using a separate entity. The timing of when this approval will occur is uncertain.
INX Says Customer Data and Funds Are Secure After Recent Attack
INX Digital Company, a security token and digital asset trading platform, experienced a cyberattack on one of its subsidiary’s third-party service providers. The attack resulted in unauthorized trades and a $1.6 million loss for the subsidiary. However, customer data and funds were not affected, and INX.One remains operational. Immediate actions were taken to address the security vulnerability and investigate the incident. Law enforcement was notified, and additional security measures were implemented.
Bybit Web3 Partners with Manta Network
Crypto exchange Bybit has partnered with Manta Network, a privacy-preserving protocol that uses zero-knowledge (ZK) technology. Bybit Wallet now supports Manta, offering an enhanced experience for over 800,000 users of the Web3 Wallet. This integration expands the functionality of the Bybit Wallet and brings the advantages of Manta Network’s ZK technology to a wider user base.
Core Scientific Still Expects to Emerge from Chapter 11 by End of January, Despite Rescheduled Hearing
Crypto miner Core Scientific has filed an amended plan of reorganization and extended the subscription deadline for its Equity Rights Offering. The company has reached a global settlement with key stakeholders, and the amended plan reflects this settlement. Core Scientific anticipates emerging from Chapter 11 in mid-to-late January 2024, despite a rescheduled hearing to consider the final approval of the plan.
Hot Take: The Future of Bitcoin ETFs and Regulatory Challenges
The approval of a spot Bitcoin ETF is seen as a significant step forward for the crypto industry. However, it’s important to recognize that this approval won’t automatically solve all regulatory challenges in the US. The lack of clear market structure and separation between custody and trading remains an obstacle. While the first approval may pave the way for subsequent approvals, the timing is uncertain. It’s crucial for ETF applicants to demonstrate proper custodial arrangements and trading practices to satisfy regulatory requirements. Overall, while the approval of a spot Bitcoin ETF is promising, it’s unlikely to bring immediate changes to the broader regulatory environment in the US.
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