Bitwise files for spot XRP ETF

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@newsontheblockchain, 02/10/2024

Confidence in Knowledge. Providing daily news to make sure you're up to date!

🌍 Daily Crypto Market Overview

Global Stats:

• Cryptocurrencies: 2.4M+

• Exchanges: 751

• Market Cap: $2.15T (4.81% decrease)

• 24h Volume: $116.62B (52.94% increase)

• Bitcoin Dominance: 56.34%

• Ethereum Dominance: 13.8%

• ETH Gas Price: 5.88 Gwei

• Fear & Greed Index: 39/100 (Fear)

🪙 Top 5 Cryptocurrencies by Market Cap:

💹 Market Highlights:

• Total DeFi Volume: $6.76B (5.80% of total volume)

• Stablecoins Volume: $107.41B (92.10% of total volume)

• Coin with highest % change: Wormhole $w $0.3829 +22.73% (1d)

📈 Preview On Today’s News:

1. - Bitwise Files for XRP ETF Trust Registration in Delaware Amid Ripple's Legal Battle

2. - Major DOJ Cryptocurrency Operation and Market News Highlights

3. - Crypto Billionaire Angermayer Relocates to Switzerland Amid UK Tax Reforms

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Top 10 News for today:

1)

Bitwise Files for XRP ETF Trust Registration in Delaware Amid Ripple's Legal Battle

Bitwise has filed for an XRP exchange-traded fund (ETF) trust registration in Delaware, which was confirmed by a spokesperson and listed under the CSC Delaware Trust Company. While the registration is a notable move, it does not guarantee an imminent application with the United States Securities and Exchange Commission (SEC), which could take months. This filing follows Ripple's ongoing legal disputes with the SEC regarding whether XRP constitutes a security, which partially concluded in July 2023 when a judge ruled XRP is not a security when sold on public exchanges. The case’s final outcome remains pending as both parties await the result of the SEC’s appeal. Approval of an XRP ETF could pave the way for institutional investment and increased liquidity, with Ripple’s CEO hinting that such a product was inevitable.

• Key Update on XRP ETF: Bitwise filed an XRP ETF trust registration in Delaware, but SEC approval could take time. This move comes after Ripple's partial legal victory against the SEC, where XRP was deemed not a security for public sales.

• Potential Impact: Approval could increase XRP adoption and liquidity, though the case's final resolution is pending an SEC appeal. Ripple’s CEO previously stated that an XRP ETF was “inevitable” following other major crypto ETF launches.

2)

Major DOJ Cryptocurrency Operation and Market News Highlights

The U.S. Department of Justice (DOJ) conducted a significant operation, apprehending a 21-year-old from Indiana, Evan Frederick Light, who pleaded guilty to conspiracy and money laundering charges related to a $37 million cryptocurrency theft. The cyberattack, which targeted an investment firm in South Dakota in 2022, affected nearly 600 victims. DOJ officials emphasized their commitment to combating cybercrime and holding perpetrators accountable. In related news, several developments are influencing the crypto market, including upcoming token unlocks for Cardano and Solana, a bullish prediction for Bitcoin by QCP Capital, and the exit of Gemini from the Canadian market by December 2024.

• US DOJ's Major Cryptocurrency Operation: The DOJ arrested and charged Evan Frederick Light for a $37 million cryptocurrency theft, affecting nearly 600 victims. He faces up to 20 years in prison for each count along with heavy fines.

• Crypto Market Developments: Upcoming Cardano and Solana token unlocks may trigger volatility, while QCP Capital predicts a Bitcoin rally. Meanwhile, Gemini plans to exit the Canadian market by December 2024.

3)

Crypto Billionaire Angermayer Relocates to Switzerland Amid UK Tax Reforms

Christian Angermayer, a prominent crypto billionaire, has relocated from the UK to Lugano, Switzerland, in response to the UK government's planned tax reforms that significantly reduce tax exemptions for non-domiciled residents. The UK’s tightening regulations on offshore wealth, including cutting the tax-exempt period from 15 years to four, have driven Angermayer, along with other wealthy individuals, to seek more favorable tax jurisdictions. Switzerland, with its crypto-friendly environment and regulatory clarity, is rapidly becoming a hub for digital asset investors. This shift raises concerns about the impact on the UK’s financial landscape, as the departure of key figures may weaken its status as a global financial center.

• Key Point 1: Christian Angermayer, a leading crypto billionaire, left the UK for Switzerland due to new tax regulations that drastically reduce exemptions for non-domiciled residents.

• Key Point 2: Switzerland, particularly Lugano, is emerging as a top destination for crypto investors, posing a potential challenge to the UK’s position as a leading financial hub.

4)

Banks Face Rising Liquidity Risks Amid Global Economic Pressures

Global banks are encountering heightened liquidity risks as economic growth slows and geopolitical tensions disrupt supply chains. Despite stricter U.S. capital requirements for major banks, recent liquidity crises highlight vulnerabilities in current risk management strategies. Advanced economies are making progress in controlling inflation, but the overall financial landscape remains unstable. To adapt, banks are turning to innovative solutions like blockchain technology to enhance transaction speed and efficiency. Ripple, a prominent blockchain tool, is gaining traction for its potential to transform international banking by providing faster and more secure transaction options.

• Economic Pressures and Regulatory Response: Slower global growth, geopolitical tensions, and supply chain disruptions are putting banks under pressure. U.S. banks with over $100 billion in assets must now meet stringent capital and liquidity standards to mitigate these risks.

• Blockchain’s Growing Role: As traditional methods face challenges, blockchain solutions like Ripple are emerging as efficient alternatives for international transactions, indicating a shift towards digital assets and advanced financial systems.

5)

FTX to Distribute $6 Billion to Users Amid Restructuring Plan Approval

FTX, the cryptocurrency exchange that collapsed in 2022, has announced a restructuring plan to distribute $6 billion to affected users and creditors. The proposal, which received strong backing from 94% of its “Dot com customer claims” creditors and 89.1% from its “U.S. customer claims” group, is expected to be finalized within 4 to 8 weeks. The plan, supported by FTX’s CEO John Ray, focuses on fully reimbursing non-governmental creditors and resolving disputes with governmental entities. Former FTX executives involved in the collapse, including Sam Bankman-Fried and Caroline Ellison, continue to face legal penalties. The distribution, if successful, could provide substantial liquidity to the cryptocurrency market and potentially mitigate some of the user losses.

• Key Highlights: FTX will distribute $6 billion to creditors, with 94% of "Dot com" and 89.1% of "U.S." claimants backing the plan, ensuring 118% claim recovery for some.

• Market Impact: Successful execution is expected to boost market liquidity, with completion anticipated by year-end, while legal actions against former executives are ongoing.

6)

China Urged to Reevaluate Crypto Ban Amid U.S. Embrace of Bitcoin ETFs

As the U.S. approves Bitcoin Exchange-Traded Funds (ETFs) and accelerates its adoption of cryptocurrencies, China faces calls to reconsider its 2021 crypto ban. Lou Jiwei, a former Chinese finance minister, highlighted the need for China to balance the risks of financial instability and money laundering associated with digital currencies while staying competitive in the evolving global digital economy. Although China still controls 55% of Bitcoin’s global hash rate, its strict stance contrasts with countries like the U.S. and Brazil, which are increasingly embracing crypto innovations.

• The U.S. approval of Bitcoin ETFs signals growing acceptance of digital currencies, prompting China to reassess its crypto ban in the face of global shifts in policy.

• Despite controlling a significant share of Bitcoin's global hash rate, China’s 2021 ban on crypto trading and mining puts it at odds with countries that are adapting to the growing digital finance landscape.

7)

Hacker Sentenced After $37M Cryptocurrency Theft via Cyber Intrusion

A hacker from Indiana, USA, named Evan Frederick Light, has pleaded guilty to wire fraud and money laundering for stealing over $37 million in cryptocurrency from nearly 600 victims through a "cyber intrusion" on an investment firm's servers. Light used customer information obtained illegally to access and steal the crypto assets, later laundering the funds using cryptocurrency mixers and gambling websites. He now faces up to 20 years in prison for each charge, three years of supervised release, and possible restitution. This case highlights the growing concern around crypto crimes, with the FBI reporting $5.6 billion in losses from such fraud in 2023.

• Incident Details: Light accessed an investment firm’s servers to steal $37 million worth of cryptocurrency, laundered through mixers and gambling sites. He pleaded guilty and faces up to 20 years in prison per charge.

• Broader Implications: The FBI reported $5.6 billion in U.S. crypto fraud losses in 2023, up 45% from 2022, with 70% involving investment scams and most victims being over 60.

8)

Key Developments in the Cryptocurrency Industry

Bitfarms has entered into a strategic agreement with Stronghold Digital Mining to accelerate the deployment of 10,000 Bitmain T21 miners at its Panther Creek facility, increasing its operational capacity by approximately 2.2 EH/s. This move, initially planned for Paraguay, aims to expedite Bitfarms' hash rate growth and achieve a total capacity of 21 EH/s by the end of the year. Additionally, Canary Funds has introduced the Canary HBAR Trust in the U.S., providing institutional investors access to HBAR. Meanwhile, MicroStrategy has acquired 7,420 more Bitcoin, raising its total holdings to 252,220 BTC, currently valued at nearly $16 billion. Other notable developments include a potential removal of TUSD as collateral from Curve Finance due to regulatory concerns, the relaunch of Flappy Bird with a new FLAPPY token on the Ton blockchain, and Dogecoin co-creator Billy Markus revealing he sold his initial crypto holdings—now worth $3.76 million—for a Honda Civic.

• Bitfarms Expands Mining Capacity: Bitfarms is deploying 10,000 miners to its Panther Creek facility through a Stronghold agreement, boosting its capacity by 2.2 EH/s, with a target of 21 EH/s by year-end.

• New Crypto Ventures and Strategic Moves: Canary Funds launched an HBAR Trust for institutional investors, MicroStrategy expanded its Bitcoin holdings to 252,220 BTC, Curve Finance may drop TUSD as collateral, and Flappy Bird relaunched with a new FLAPPY token.

9)

Decline in Bitcoin Mining Profitability Amid Increased Competition and Rising Mining Difficulty

Bitcoin mining profitability has fallen for the third consecutive month, hitting new lows in September 2024 due to a combination of increased competition and rising mining difficulty. According to a JPMorgan report, daily block reward gross profit declined by 6% compared to August, reaching $16,100 per Exahash/second (EH/s), despite Bitcoin's network hashrate increasing by 2% to 643 EH/s. Additionally, low transaction fees have pressured mining revenues, and while shares of U.S.-listed miners rose by 4% in September, overall profitability remains under strain. Experts suggest this downward trend may persist unless Bitcoin's price rebounds significantly.

• Key Impact: Bitcoin mining profitability has decreased for three straight months, with September 2024 seeing a 6% decline in daily block reward gross profit compared to August, amid increased competition and mining difficulty.

• Future Outlook: Experts predict that profitability may continue to drop unless there is a significant price recovery for Bitcoin, despite minor gains in miner shares.

10)

Call for Kamala Harris to Engage in Web3 and DeFi Innovation Discussion

A group of over 20 leaders from the Web3 and decentralized finance (DeFi) sectors, including prominent figures like Cleve Mesidor and Olayinka Odeniran, has sent a letter to Vice President Kamala Harris’s campaign team, requesting a meeting to discuss regulatory policies that foster innovation in the cryptocurrency industry. The group emphasized the importance of creating an inclusive financial system that supports all developers and vulnerable communities, such as Black, Latino, Asian American, and Indigenous groups, who have been early adopters of crypto but face barriers in the traditional financial system. Their key requests include establishing clear rules that protect investors while promoting financial access and capital accumulation.

• A group of crypto industry leaders requested a meeting with Kamala Harris to discuss regulatory measures that promote innovation and inclusivity in the Web3 and DeFi sectors.

• The letter highlights the need for policies that ensure financial access for underrepresented communities and support the continued growth of blockchain and cryptocurrency technologies.

That’s all for today folks, see you tomorrow. 👋

Disclaimer

The information provided in this overview is based on our data findings and opinions. It is intended for informational purposes only and should not be considered financial advice. Cryptocurrency investments carry significant risk, and it is important to conduct your own research and consult with a qualified financial advisor before making any investment decisions. We are not responsible for any financial losses or gains you may incur as a result of using this information.