WuBlockchain Weekly: DTCC Lists Bitcoin Spot ETF Event Turbulence and Top10 News

1. BlackRock Bitcoin Trust Listed on DTCC link

On October 23rd, Bloomberg’s ETF analyst, Eric Balchunas, tweeted that BlackRock’s subsidiary, iShares Bitcoin Trust, had been listed on the DTCC (Depository Trust & Clearing Corporation). The stock code was reported to be IBTC, as part of the process to introduce a spot Bitcoin ETF to the market. However, later that day, BlackRock’s iShares Bitcoin Trust, IBTC, was removed from the DTCC website, only to be relisted on the following day. Subsequently, a Reuters report stated that the DTCC spokesperson mentioned that BlackRock’s iShares Bitcoin Trust ETF was added to the qualification document back in August 2023.

As per information shared by @tier10k, email screenshots indicate that the standard procedure at DTCC is to add securities to the NSCC (National Securities Clearing Corporation) Securities Qualification File when preparing to launch a new ETF in the market. The list in this document includes both active and potential ETF securities. Being on this list indicates that the brokerage firm has applied for a DTCC identifier for the ETF fund, and DTCC may process the transaction at an undetermined date in the future.

On October 25th, there were reports that ARK Invest’s Bitcoin spot ETF (ARKB) and 21Shares’ Bitcoin spot ETF (ARKA) were listed on the DTCC website. However, upon verification, it was found that the ETF listed was, in fact, 21Shares’ Bitcoin futures ETF, ARKA.

2. CME Bitcoin Futures Open Interest Surpasses 100,000 BTC for the First Time link

On October 24th, as reported by @VetleLunde, the open interest in CME Bitcoin futures surpassed 100,000 BTC for the first time, with a net increase of 4,380 BTC on the 23rd. The market share of CME Bitcoin derivative contracts has reached an all-time high of 25%, rapidly approaching Binance’s market share of 29%. With the growth of open interest (OI), the 1-month annualized futures premium for BTC has risen to 13%, significantly higher than that of ETH.

3. Ethereum Developers Confirm Dencun Upgrade Won’t Happen Before the End of This Year link

On October 27th, as reported by Blockworks, Ethereum client developers confirmed on Thursday that the anticipated Dencun upgrade will not be implemented in a network hard fork until the end of 2023. An anonymous Prysm developer, Potuz, confirmed during a core developer conference call that it’s not feasible for the upgrade to fork the mainnet in 2023. He noted that over the past few months, the ten developer networks that were set up to test the upgrade have consistently experienced consensus issues, with none progressing smoothly.

4. SEC Chairman: The Crypto Industry Is Rife with “Fraud, Scams, Bankruptcies, and Money Laundering” link

On October 26th, SEC Chairman Gary Gensler, speaking at the 2023 Securities Enforcement Forum on Wednesday, described the crypto industry as a space filled with fraud, scams, bankruptcies, and money laundering. While many entities in this space claim to operate outside of regulations that existed before the release of Satoshi Nakamoto’s famous whitepaper, they also quickly seek legal protection in bankruptcy courts and when resolving private disputes.

5. Coinbase Rejects SEC Charges: Says SEC’s Ruling Expands Its Own Authority link

On October 25th, Coinbase submitted its reply brief to the U.S. SEC in response to the SEC’s June allegations that it operated as an unregistered exchange, broker, and clearing agency. In the filing, Coinbase argues that it has the right to make determinations regarding the SEC’s complaint because it does not and cannot allege that every purchase of an asset involves continuing contractual obligations tied to the enterprise. The SEC’s contention that any purchase in which the buyer hopes for appreciation constitutes an investment contract and therefore a security is an attempt to expand its authority fundamentally, as articulated by the Howey test principle, which requires clear congressional authorization for an agency to decide on matters of significant importance.

6. Hong Kong Financial Secretary Expresses Hope to Propel Hong Kong into an International Hub for Virtual Assets link

On October 26th, the Financial Secretary of Hong Kong, Paul Chan Mo-po, expressed his aspiration to establish Hong Kong as an international hub for virtual assets. This includes preparations for the regulation of virtual assets and the introduction of a digital Hong Kong dollar. When asked about ensuring the safety of virtual assets for citizens, Chan revealed that he would provide an update in the coming Monday (October 30th) after discussions with regulatory authorities, the Legislative Council’s Finance Committee, and other relevant parties. He mentioned that in June of this year, new regulatory measures were introduced to oversee virtual asset exchanges, focusing on the scrutiny and regulation of product providers. Furthermore, arrangements for demand-related aspects, such as investor participation and education, are also in place to promote the development of the virtual asset market.

7. Binance’s Weekly Summary

a. Increasing Regulatory Pressure Leads to Departure of Binance UK Head Jonathan Farnell link

Jonathan Farnell, the Head of Binance UK and CEO of Bifinity, departed from the company at the end of September. Farnell had previously resigned from his senior compliance role at Binance Europe in June. This change occurred as the UK Financial Conduct Authority (FCA) was strengthening its regulation of cryptocurrency advertising. Farnell’s departure is the latest in a series of recent executive departures from Binance. It is worth noting that Farnell had played a pivotal role in Binance’s efforts to secure official regulatory status in the UK.

b. Binance Vice President for Latin America: Binance Plans to Comply with Regulations in Argentina link

On October 24th, according to Bitcoin.com, Min Lin, the Vice President of Binance in Latin America, mentioned that the exchange intends to become regulated in Argentina once specific laws permitting cryptocurrency broker licenses are approved. Lin stated that Binance is in discussions with regulatory authorities to introduce innovation within the regulatory framework and is prioritizing the implementation of user protection measures.

c. Binance Temporarily Suspends Cryptocurrency Withdrawals Due to Technical Issues on October 25th.link

On the evening of October 25th, Binance announced in a tweet that they were experiencing technical issues with cryptocurrency withdrawals. While their team worked on fixing the issue, cryptocurrency withdrawals were temporarily unavailable. Fiat withdrawals were still available and operational, with all funds considered safe. CZ mentioned that the technical problem affecting withdrawals was related to middleware services.

Later that evening, at 19:55, Binance reported that the technical issue had been resolved, and all cryptocurrency withdrawals were back to normal operation. The duration of this problem was approximately 52 minutes.

8. FTX’s Weekly Summary

a. FTX in Negotiations with Three Bidders to Restart the Exchange link

On October 25th, according to Bloomberg, FTX is in negotiations with three bidders to relaunch its exchange and plans to make a decision on how to proceed by mid-December. Currently, FTX is in talks with investors about the potential binding details of an offer. Possible options include selling the entire exchange, including a list of over 9 million customers, or bringing in partners to assist in relaunching the exchange. FTX is also considering relaunching the exchange on its own.

b. FTX and Alameda Move Wallets Holding a Total of $59 Million in Crypto Assets link

On October 27th, according to Lookonchain’s monitoring, FTX and Alameda addresses have transferred a total of $59 million in crypto assets, including: 787,000 SOL ($25.4 million), 4,858 ETH ($8.7 million), 532,000 LINK ($5.8 million), 7.8 million MATIC ($4.9 million), 1.09 million DYDX ($2.5 million), 974,000 RNDR ($2 million), 488,000 UNI ($2 million), 1.09 million LDO ($2 million), 1,341 MKR ($1.9 million), and 1.6 million AGLD ($1.3 million), among other assets. The 8 FTX and Alameda addresses that recently sold assets still hold approximately $619 million in crypto assets, including 55,280 ETH ($99 million), 69.7 million FTT ($91.55 million), 25 million WLD ($44.6 million), and 53 million MATIC ($33 million), among other assets.

a. FTX Tokens Rise to Between $0.50 and $0.53 Per Dollar link

On October 26th, according to Bloomberg, the Cherokee Acquisition, a distressed asset investment company, is currently quoting FTX claims at a range of 50 to 53 cents per dollar, compared to just over 40 cents range the previous week. Since FTX’s bankruptcy and the commencement of the recovery of billions of dollars in assets, FTX claims prices have been steadily rising, and major hedge funds have been actively trading these claim equities, covering everything from account equities on FTX to compensation for losses arising from terminated contracts. FTX investment banker Kevin M. Cofsky stated in court that the company is in contact with “multiple parties” on a daily basis. Options being considered include selling the entire exchange, bringing in partners to assist in the exchange’s restart, or independently restarting it.

9. Paradigm Co-Founder Fred Ehrsam Resigns, Will Continue as a General Partner link

On October 25th, Paradigm co-founder Fred Ehrsam announced his resignation, but he will remain with the company as a general partner. He stated that he will reduce his involvement in the day-to-day operations of the company and plans to dedicate more time to biological research, citing the interest of other cryptocurrency leaders in anti-aging treatments and cryonics technology. Furthermore, Ehrsam was a co-founder of Coinbase before founding Paradigm.

10. Matrixport Believes the Fifth Bitcoin Bull Market Officially Began on June 22, 2023 link

On October 26th, Matrixport analysis pointed out that the fifth Bitcoin bull market officially began on June 22, 2023, with Bitcoin hitting a new yearly high for the first time in a year. Historically, when this signal is triggered, the average return on Bitcoin is +310%. Based on this signal, it is estimated that Bitcoin may reach $125,000 by December 2024. The fifth Bitcoin bull market appears to be primarily driven by institutional adoption. This surge in Bitcoin’s value is not a coincidence, as it occurs at a time when the US debt-to-GDP ratio has reached unsustainable levels.

Fundraising

Anboto Labs, a cryptocurrency trading execution tool, has secured a $3 million investment with participation from Kronos Ventures. link
STIX, an OTC secondary market platform, has completed a $2.7 million funding round. link
NEON Machine, a gaming company, has announced a $20 million financing round led by Polychain Capital. link
Atani, a cryptocurrency technology company, has raised $6 million in funding, with Cometa leading the investment. link
smlXL, a cryptocurrency startup, has completed a $13.4 million seed round with participation from a16z and others. link
Cube Exchange, a hybrid trading platform, has secured $9 million in seed round funding. link
Noble, the token issuance protocol developer, NASD, has completed a $3.3 million seed round of financing. link
Crusoe Energy, a cryptocurrency mining company, has announced a significant expansion of its cloud business and has raised $200 million in new funding. link
HYTOPIA, a metaverse platform, has announced a $3 million financing round led by Delphi Ventures. link
A Web3 security startup founded by former Israeli military intelligence personnel has raised a total of $33 million in two funding rounds. link

Learn more, check out crypto-fundraising.info.