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Business, Uncategorized

Bitwise seeks approval for first spot XRP ETF despite regulatory uncertainty

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Bitwise has filed an application with the United States Securities and Exchange Commission (SEC) for the first spot XRP exchange-traded fund (ETF), according to an Oct. 2 statement.

The proposed ETF aims to directly hold XRP. It is currently pending the effectiveness of its Form S-1 registration and the approval of Form 19b-4.

Bitwise’s XRP ETF would build on the firm’s success with other crypto-based funds, including spot Bitcoin and Ethereum ETFs launched earlier this year.

Why XRP ETF?

Bitwise said it chose XRP due to its ability to facilitate cross-border payments and its strong ecosystem. The firm highlighted that the XRP Ledger (XRPL) supports institutional participation in DeFi and offers compatibility with the Ethereum Virtual Machine (EVM).

The company also highlighted XRP’s large number of active wallets and its status as one of the world’s leading crypto.

Bitwise CEO Hunter Horsley emphasized the firm’s belief that blockchains will create new, apolitical monetary assets and permissionless applications for the 21st century. He added:

“For the past seven years we’ve helped investors access the opportunities in the space, and we’re excited to continue that work with our filing for a Bitwise XRP ETP.”

Ripple CEO Brad Garlinghouse also weighed in, stating that the application signals the growing confidence of traditional financial institutions in XRP. He stated:

“This move underscores the growing trust & integration of digital assets like XRP into traditional finance, marking the continued adoption and maturation of the crypto market. I sense this is just the beginning.”

Notably, this development comes less than a month after Grayscale Investments launched a new XRP-focused crypto investment trust.

Will it be approved?

Market analysts have expressed doubts about the possibility of the XRP ETF’s approval under the current US regulatory environment.

Additionally, Ripple’s ongoing legal battle with the SEC further complicates the approval process. Galaxy Digital’s Head of Research Alex Thorn said:

“SEC has until next week (Oct. 7) to appeal Judge Torres’ July 2023 ruling (which held that secondary sales of XRP through exchanges were not securities) likelihood of this ETF filing succeeding drops to near zero if they do appeal (i’ll be very surprised if they don’t appeal).”

Blockchain, Uncategorized

Stablecoins, DeFi boost Nigeria to second in global crypto adoption rankings – Chainalysis

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Nigeria has emerged as the second-largest adopter of crypto worldwide, cementing its position as a leader in digital finance, according to Chainalysis’ upcoming report.

The ranking illustrates Nigeria’s rapidly expanding crypto ecosystem, where everyday transactions, remittances, and business payments increasingly rely on digital assets, especially stablecoins. The country’s success mirrors a broader trend in Sub-Saharan Africa, a region witnessing modest yet significant growth in its crypto adoption.

According to Chainalysis, Sub-Saharan Africa’s burgeoning crypto economy, driven by the need for alternative financial services and more accessible international markets, is positioning the region as a growing hub for innovation and financial inclusion on the global stage.

Steady growth across Sub-Saharan Africa

Despite representing only 2.7% of global transaction volume, Sub-Saharan Africa received $125 billion in on-chain value between July 2023 and June 2024, marking a $7.5 billion increase compared to the previous year.

While the region’s contribution to the global crypto economy remains small, its influence is growing as several African nations emerge as key players in the crypto space. Other African nations, including Ethiopia, Kenya, and South Africa, have all secured spots in the top 30 on the Chainalysis Global Adoption Index.

Moyo Sodipo, COO and co-founder of Nigerian crypto exchange Busha, said:

“Nigeria’s high adoption rates show how practical crypto has become for everyday transactions.”

Sodipo noted that many Nigerians are turning to crypto for bill payments, mobile credit top-ups, and cross-border transfers as the traditional financial system struggles with inflation and currency devaluation.

The report also highlighted Sub-Saharan Africa’s leadership in DeFi adoption. DeFi platforms allow users to access financial services, such as lending and borrowing, without needing traditional banks, which remain out of reach for many.

The World Bank estimates that only 49% of adults in the region had access to a bank account as of 2021, making crypto an attractive alternative for millions.

Stablecoins drive economic stability

Stablecoins are pivotal in Sub-Saharan Africa’s crypto economy, with Chainalysis estimating that they account for 43% of the region’s total crypto transactions. These dollar-pegged digital currencies have gained significant traction in countries where local currencies are volatile and access to US dollars is limited.

In Nigeria, businesses and individuals increasingly rely on stablecoins like USDT and USDC to protect their assets from the local fiat currency’s ongoing devaluation. The country’s foreign exchange shortage has further intensified the demand for stablecoins, enabling companies to conduct international trade that would otherwise be hindered by currency shortages.

Chris Maurice, CEO of African crypto exchange Yellow Card, said:

“The banks don’t have dollars, the government doesn’t have dollars, and even if they did, they wouldn’t give them to you.”

He explained that stablecoins serve as a reliable alternative for businesses involved in international trade, from small-scale importers to large multinational corporations.

Ethiopia, the region’s fastest-growing market for stablecoin use, has seen a 180% year-over-year increase in retail-sized stablecoin transfers. This surge follows a 30% devaluation of Ethiopia’s local currency, the birr, as the government relaxed currency restrictions in exchange for a $10.7 billion loan from the IMF and World Bank.

Stablecoins are also revolutionizing cross-border payments across Africa. Remittances, a vital source of income for many African households, have become significantly cheaper and faster using stablecoins compared to traditional fiat currency methods.

In Nigeria alone, stablecoin transactions under $1 million nearly reached $3 billion in early 2024, demonstrating their growing importance for small and medium-sized transfers.

Crypto and financial inclusion

As Nigeria and other Sub-Saharan nations deepen their engagement with crypto, stablecoins are expected to play a central role in stabilizing economies, facilitating international trade, and enabling cross-border payments.

South Africa, with its rapidly growing institutional activity and TradFi integration, stands poised to be another key driver of crypto adoption in the region.

Rob Downes, head of digital assets at Absa Bank in South Africa, said:

“Nigeria and South Africa are leading the way in showing how crypto can drive financial inclusion.”

Altcoins, Blockchain, defi

Monero declines 5%, Kraken discontinues support in EEA amid regulatory demands

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Kraken has announced its decision to end support for Monero (XMR) in the European Economic Area (EEA) by the end of October, according to an Oct. 1 statement.

The exchange explained that this decision was due to the recent regulatory shifts in the region.

Due to this, the platform stated:

“On October 31 2024 at 15:00 PM UTC, we will halt trading and deposits of all XMR markets (XMR/USD, XMR/EUR, XMR/BTC, XMR/USDT) for clients registered in the EEA. Any open XMR orders will also be automatically closed at this time.”

However, users holding Monero will have until Dec. 31, 2024, to withdraw their assets. Any unclaimed Monero after this deadline will be automatically converted to Bitcoin. These converted funds will be distributed to users who haven’t withdrawn their Monero by Jan. 6, 2025.

Meanwhile, this move isn’t Kraken’s first action against Monero in the region. A few months ago, the exchange delisted the asset in Ireland and Belgium, though the reasons for these earlier actions were not disclosed.

Riccardo Spagni, a well-known blockchain analyst, argued that Monero’s removal in Europe likely reflects Chainalysis‘ inability to extract meaningful tracking data from the asset. According to Spagni, if Monero could be effectively traced, regulators would likely prefer to keep it on exchanges as a potential surveillance tool.

Recently, a leaked video from blockchain analytics firm Chainalysis sparked debate about Monero’s true privacy features. The now-deleted video suggested that Monero transactions could be traced, raising concerns over the integrity of its privacy protections.

XMR declines 5%

News of Kraken delisting has significantly impacted the value of digital assets, which declined by more than 5% during the past day to $144, according to CryptoSlate’s data.

This price performance mirrors a broader market trend that has pushed the value of Bitcoin and other top digital assets down during the reporting period. Market observers have linked this downtrend to the escalating Middle East tensions.

Bitcoin, Markets

Bitcoin ETFs break 8-day inflow streak as outflows spike to $242 million

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On Oct.1, Bitcoin ETFs experienced significant net outflows, totaling $242.6 million, reflecting a sharp reversal from the large inflows seen in the previous week. Fidelity’s FBTC ETF led the withdrawals, recording $144.7 million in outflows, while Ark’s ARKB ETF saw $84.3 million in redemptions. Bitwise’s BITB ETF also posted $32.7 million in outflows, and VanEck’s HODL ETF lost $15.8 million. Grayscale’s GBTC ETF recorded a smaller outflow of $5.9 million. BlackRock’s IBIT ETF was the sole major fund with inflows, adding $40.8 million.

ETF Provider
IBIT
FBTC
BITB
ARKB
BTCO
EZBC
BRRR
HODL
BTCW
GBTC
BTC
Total ($M)

Bitcoin ETFs
40.8
(144.7)
(32.7)
(84.3)
0.0
0.0
0.0
(15.8)
0.0
(5.9)
0.0
(242.6)

Ethereum ETFs saw no major activity on Oct. 1. BlackRock’s ETHA ETF posted a modest inflow of $11 million, while Grayscale’s ETHE fund, which had experienced outflows the day before, remained unchanged. The market for other Ethereum ETFs, including Fidelity, Bitwise, 21Shares, VanEck, and Invesco, remained quiet, with no inflows or outflows reported.

ETF Provider
ETHA
FETH
ETHW
CETH
ETHV
QETH
EZET
ETHE
ETH
Total ($M)

Ethereum
ETFs
11.0
0.0
0.0
0.0
0.0
0.0
0.0
(11.8)
0.0
(0.8)

The sharp outflows from Bitcoin ETFs, particularly from Ark and Fidelity, suggest a potential shift in sentiment after the strong inflows of late September. Meanwhile, Ethereum ETFs remained relatively quiet, with minimal movements suggesting a wait-and-see approach among institutional investors.

Bitcoin, Blockchain

Ten years of Bitcoin address data uncovers investor behaviors and market shifts

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Analysis of Bitcoin address outflow patterns indicates a correlation between address activity types and Bitcoin’s price movements from 2014 to 2024. Per CryptoQuant data, shifts in outflow trends among different address categories reflect underlying market trends and participant behaviors.

Bitcoin Address outflow status 2014 – 2021 (CryptoQuant)

From 2014 to 2017, frequent in-out flow addresses dominated Bitcoin’s outflow landscape. This period coincided with low Bitcoin prices relative to today, suggesting that high transactional activity among these addresses did not significantly impact market valuation. The dominance of frequent in-out flows mirrors a market primarily driven by smaller transactions and individual users engaging in regular transfers.

Around 2018, a notable shift occurred as addresses frequently receiving from centralized exchanges began to grow rapidly. This growth came with an increase in Bitcoin held by or moving through exchange addresses due to heightened trading activity and increased user adoption of exchanges.

The timing aligns with an upward trend in Bitcoin’s price, indicating a connection between exchange activity and market valuation. The prominence of exchange-related addresses may echo investors moving assets onto exchanges in anticipation of market movements or increased speculative trading.

The number of new whale addresses identified by new or existing large Bitcoin holders spiked at the beginning of 2020. The spike coincided with increased Bitcoin price growth and volatility, implying accumulation regardless of the price.

The influx of new whales during these periods suggests that institutional investors or high-net-worth individuals were entering the market, potentially driving prices upward through substantial purchases.

Bitcoin address activity from 2021 onward

As Bitcoin’s price declined throughout 2022, frequent in-out flow addresses remained dominant. However, their influence weakened after mid-2022, coinciding with a marked increase in addresses frequently receiving from centralized exchanges. This shift suggests that more Bitcoin was moving through or held by exchange addresses during the recovery period, indicating increased trading activity or investor repositioning in response to market conditions.

New whale activity continued to increase during the second half of 2022 and into 2023, indicating persistent purchases by large holders during price lows. This growth reflects strategic market repositioning during periods of heightened market uncertainty. This activity correlates with Bitcoin’s price bottoming out in 2022, followed by a recovery throughout 2023 and into 2024.

Bitcoin Address outflow status 2021 onward (CryptoQuant)

The increase in new whales during periods of lower prices suggests bullish sentiment, hoping to capitalize on future price recoveries.

Since 2023, highly active addresses have gained traction for the first time in Bitcoin’s history. The development of trading bots, high-frequency trading, and Bitcoin meta layers are partially responsible. The increase in these types of addresses showcases Bitcoin’s evolution in usage and detracts from theories that Bitcoin is becoming nothing more than a store of value. Bitcoin has core utility around the world, and it is growing.

Persistent trends in Bitcoin addresses

The prominence of exchange-related addresses during specific periods reflects changes in investor behavior, such as shifts toward holding assets on exchanges for liquidity or increased trading activity in response to market volatility. Similarly, the timing of whale activity suggests that large holders influence market trends or respond strategically to price movements.

The patterns observed suggest that large holders play a significant role in market stabilization or trend reversals. Their increased activity during price lows provides support to the market, potentially preventing further declines. Conversely, periods of reduced whale activity could coincide with market uncertainty or consolidation phases.

By monitoring the flow of Bitcoin across different address categories, we can identify emerging trends or shifts in market sentiment. For example, a surge in exchange-related addresses might signal increased trading activity or anticipation of market movements, while heightened whale activity could indicate confidence among large investors in future price appreciation.

The correlation between address activity and price movements emphasizes the transparency inherent in Bitcoin. Publicly available on-chain data allows for comprehensive analysis of market behaviors, offering insight not typically available in traditional financial markets. This transparency empowers participants to make more informed decisions based on observable patterns in the network’s transactional activity.

Ultimately, analyzing Bitcoin address outflow patterns over the past decade reveals significant correlations with market cycles and price movements. The evolving trends among different address categories echo changes in market structure, participant behavior, and broader adoption trends.

Blockchain, news, Uncategorized

Fraud platform integrates JPMorgan’s blockchain solution to verify vendor banking data

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Fraud prevention platform Trustpair announced the integration of investment bank JPMorgan’s blockchain-based solution Confirm to verify bank account information on Oct. 1.

Confirm is a closed network for global account validation information built on Link, the enterprise-focused permissioned and private blockchain developed by JPMorgan’s Onyx division.

Gloria Wan, Executive Director at Onyx by J.P. Morgan, stated that Confirm was created to provide collective intelligence to improve decision-making for companies. She added:

“Businesses operate in a data-driven world, yet many still rely on inaccurate vendor and payment data when making high-value transactions, which significantly raises companies’ risk of fraud, payment errors, and delays.”

As a result, Trustpair’s over 200 customers — including companies such as Societe Generale, Decathlon, and Danone — can now verify vendor bank accounts across 15 global markets, reducing the risk of payment fraud and payment delays.

Trustpair’s co-founder and CEO, Baptiste Collot, added that applying JPMorgan’s blockchain solution will set a higher standard for fraud prevention and user experience.

Expanding blockchain front

JPMorgan’s stance towards the blockchain industry has changed considerably since 2017, when the lender’s CEO, Jamie Dimon, called Bitcoin a fraud.

In 2019, the investment bank launched its own crypto — the JPM Coin — for wholesale payments between institutions. One year later, JPMorgan launched its blockchain-focused Onyx unit.

JPMorgan executed its first transaction on a public blockchain in November 2022. The bank issued and swapped 100,000 Singaporean dollars for Japan’s yen with SBI Digital Asset Holdings on the Polygon blockchain using a forked version of the leading money market Aave.

According to Onyx’s website, JPMorgan now provides three different major products leveraging blockchain besides Liink. Coin Systems is a bank-focused solution for transfer and clearing that leverages JPM Coin.

Blockchain Launch is a team within the Onyx unit that provides blockchain service to JPMorgan’s clients, while Onyx Digital Assets is the investment bank’s tokenization platform.

Uncategorized

Hut 8 pays off Anchorage loan, eyes further AI expansion

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Hut 8 Corp., one of North America’s largest Bitcoin miners, has announced that Anchorage Digital has converted the remaining $38 million of its outstanding loan into common shares.

The conversion was completed at $16.395 per share, representing a 51% premium over the 20-day volume-weighted average price through Sept. 26.

The move significantly enhances Hut 8’s financial flexibility as it pursues new growth opportunities in AI and mining infrastructure.

The conversion extinguishes all obligations related to the loan, providing Hut 8 with increased flexibility as it continues expanding into high-performance computing and AI hosting. The company will file further details in a forthcoming Form 8-K with the SEC.

The loan, which originated in February 2023, was secured by 21,000 Bitcoin mining machines as collateral. Initially, the loan had a 14% interest rate, which was reduced to 9% by June.

It was initially set to mature in five years, but the conversion to equity has allowed Hut 8 to eliminate the remaining balance early, further reducing its debt.

Diversification

Following the debt conversion, Hut 8 still carries approximately $290 million in debt, including $150 million raised in June 2024 to fund its expansion into AI data centers.

Despite this, the company’s reduction in leverage, along with its focus on AI hosting and mining infrastructure, places it in a stronger position to negotiate with potential partners and advance key projects.

Hut 8 has expanded its operations beyond crypto mining, recently launching a GPU-as-a-service program powered by Nvidia H100 GPUs in collaboration with AI developers.

The company’s long-term strategy aims to diversify revenue streams by incorporating AI infrastructure into its business model, further enhancing its resilience in the evolving digital asset space