Coinbase receives approval for futures trading in the US and the SEC is considering approving an Ethereum ETF, signaling progress in the crypto industry.
Coinbase Assets will suspend trading for six cryptocurrencies, including BarnBridge, DerivaDAO, Jupiter, Multichain, Ooki, and Voyager, due to falling short of the exchange's listing standards, resulting in price plunges for the delisted assets.
The value of the U.S. dollar locked in active ether perpetual futures contracts on Binance has dropped to its lowest level in 13 months, indicating a decline in leverage and lower probability of liquidations-driven volatility in the coming weeks.
Ethereum mixer Tornado Cash co-founders Roman Storm and Roman Semenov have been charged with money laundering over $1 billion in criminal proceeds, while FTX-affiliated Farmington State Bank has been shut down for attempting to create a stablecoin without proper approval. Prime Trust has filed for bankruptcy after losing $6 million of customer money in Terra-Luna gambling, and Binance has lost its UK payment processor Checkout.com over money laundering concerns. Furthermore, Sam Bankman-Fried plans to blame FTX's lawyers for his decision-making in his legal defense. The SEC has sued Titan for promising unrealistic investment returns, Coinbase has suspended certain stablecoins for Canadian users, and the Centre consortium that issued the USDC stablecoin is being dissolved.
Bitcoin and Ether remain stable as cryptocurrency investor sentiment remains cautious, although JPMorgan analysts report a slowdown in downward price momentum, and the Forkast 500 NFT Index gains after a surge in sales of Donald Trump's signature NFT collection following his arrest.
Investors are turning their attention to altcoins like $ROE from Borroe, which harnesses AI and blockchain technology, offers a range of features, and has a deflationary token with potential for capital appreciation. Meanwhile, Ripple's $XRP and Filecoin's $FIL are gaining momentum, and Ethereum's price volatility may be mitigated by the potential approval of Ether futures ETFs by the US SEC.
Crypto exchange Binance has announced plans to gradually wind down support for its Binance USD (BUSD) stablecoin, encouraging users to convert their holdings into other assets, including a newly listed stablecoin, First Digital USD (FDUSD). This decision aligns with Paxos' plans to end BUSD redemption by February 2024.
Bitcoin's recent legal victories and temporary price surges should not be mistaken for long-term catalysts, as the approval of a spot ETF, liquid staking capabilities, and the upcoming halving event hold the key to sustainable price appreciation.
Former SEC Chairman Jay Clayton believes that the approval of a spot Bitcoin ETF by the U.S. is inevitable, as retail investors' restrictions on trading Bitcoin-based products cannot continue indefinitely.
Asset managers ARK Invest and 21Shares have applied for regulatory approval for an exchange-traded fund (ETF) that would directly hold ether (ETH), the second largest cryptocurrency, with custody provided by Coinbase Custody Trust Company.
Despite Visa's announcement and warnings from Binance's CEO, major cryptocurrencies such as Bitcoin and Ethereum are struggling in a bearish trend while a top Federal Reserve official expresses deep concern over the $120 billion stablecoin market.
The lack of clear crypto regulations in the US has caused significant issues for the industry, leading to collapses and a weakening of America's position as a financial hub, according to Coinbase CEO Brian Armstrong. He emphasizes the need for clear rules that recognize the innovation potential of the technology while protecting consumers. Armstrong also highlights the potential benefits of Bitcoin exchange-traded funds (ETFs) and Coinbase's role as custodian in many ETF applications.
The market is underestimating the potential impact and value of Spot Bitcoin ETFs, with analysts arguing that approval would lead to significant financial inflows and buying pressure, and that it is a good time to enter the market and start building a crypto portfolio, despite regulatory challenges. Ethereum could also benefit from a futures-based ETF listing, but there is caution about the SEC potentially classifying ETH as a security. Overall, the global crypto adoption is dependent on market maturity, regulatory intervention, and consistent long-term adoption.
The Nasdaq stock exchange has applied to the SEC to list an Ethereum ETF offered by Hashdex, which includes a combination of spot ether holdings and futures contracts, pioneering a new approach to cryptocurrency investment under the regulatory framework.
Cryptocurrency exchange Binance plans to delist stablecoins in the European market by June 2024 to comply with MiCA regulations, potentially impacting the market in Europe compared to the rest of the world.
Ether (ETH) has experienced a modest increase in price in 2023, but it is still trading significantly below its peak in November 2021, raising questions among investors about the reasons behind the decline and potential catalysts for a reversal. The ongoing legal battle between Ripple and the SEC, as well as regulatory uncertainties surrounding the Ethereum ICO, remain sources of concern. However, positive surprises such as the request for a spot Ether ETF and Ethereum's position to benefit from Bitcoin-related catalysts give hope to investors.
Coinbase, the U.S. cryptocurrency exchange operator, may invest more elsewhere if the U.S. cannot get crypto regulation right, raising questions about whether the U.S. is still the primary hub for crypto innovation and development.
Coinbase is looking to diversify its revenues, but for now, it remains heavily reliant on Bitcoin trading.
Coinbase International Exchange, the Bermuda-based subsidiary of Coinbase, has received regulatory approval to offer perpetual futures trading to non-US retail customers, providing them access to the derivatives market dominated by institutions.
Valkyrie Investments has become the first asset manager to win approval from the Securities and Exchange Commission to offer an exchange-traded fund (ETF) featuring Ethereum futures, paving the way for retail investors to bet on the future price of the cryptocurrency.
Stablecoin issuer Circle has intervened in the SEC's case against Binance, arguing that stablecoins tied to other assets should not be classified as securities.
Summary: U.S. regulators provided minimal updates to the global crypto community this week, with the SEC approving VanEck's Ethereum futures ETF and lawmakers in Washington appearing to be less proactive than their European counterparts, while various crypto-related incidents and controversies unfolded on social media platforms.
Investment management firm VanEck is launching its Ethereum Strategy ETF, which will invest in Ether futures contracts and has no direct exposure to ETH, with trading set to begin on October 2nd on the Chicago Board Options Exchange (CBOE).
The number of ETFs tied to cryptocurrencies, particularly ether, is expanding rapidly, making it easier for financial professionals to gain exposure to the crypto market, while the launch of ether futures products may indicate optimism for the approval of spot bitcoin products by the SEC.
The recent filing for a spot Ethereum exchange-traded fund (ETF) in the United States by ARK Invest marks a turning point in the integration of digital assets into traditional finance, signaling the dawn of institutional liquid staking and the need for regulatory approval for mainstream adoption.
The launch of futures-based ETH ETFs attracted little interest from investors, causing the price of Ether to drop to its lowest compared to Bitcoin since July 2022, prompting experts to advise rotating back to Bitcoin.
The CoinDesk Market Index (CMI) declined by -11% in the past quarter, with Bitcoin outperforming by -10.9% and Ether underperforming at -12.5%; however, Bitcoin and Ether have still shown impressive gains of 64% and 41% respectively for the year, highlighting their resilience as top-performing assets. Regulatory pressure on alternative tokens continues to drive a bifurcation in the crypto market between Bitcoin and Ether and other digital asset protocols, while the computing and DeFi sectors were relative outperformers in Q3 2023. The reduced level of risk, lower volatility, and decreased correlation with traditional equities suggest a maturation of the market or market illiquidity. Rising bond yields and tightening financial conditions may pose headwinds for crypto price appreciation, but the approval of a Bitcoin spot ETF could be a catalyst for breaking through these macroeconomic headwinds, enabling broader investor access and institutional adoption.
The ongoing Hamas-Israel conflict and a significant ether (ETH) sale by the Ethereum Foundation led to a 2% slide in the crypto markets, with over $100 million in futures positions evaporating, although bitcoin remained relatively stable.
Investors are showing a preference for ether over bitcoin in a high interest rate environment, with ether futures ETFs experiencing low volumes and the ether-bitcoin ratio reaching its lowest point since July 2022. The underperformance of ether relative to bitcoin is attributed to the bear market and the potential for continued underperformance due to the higher interest rate environment. Bitcoin's status as a digital gold and its regulatory advantages also contribute to its favorability over ether.
Coinbase's chief legal officer is optimistic that bitcoin spot exchange-traded fund (ETF) applications will be approved by the U.S. Securities and Exchange Commission, potentially boosting the price of bitcoin and benefiting crypto-linked stocks.
Several new Ethereum futures ETFs have been launched in the U.S., providing investors with a way to gain exposure to Ethereum without directly holding the cryptocurrency themselves. These ETFs offer a convenient and low-risk option for investors who are bullish on Ethereum's future but do not want to deal with the complexities and risks of owning and storing the digital asset.
