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Altcoins, Blockchain, news

Bitwise registers XRP ETF trust filing in Delaware

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Asset manager Bitwise filed for an XRP exchange-traded fund (ETF) on Sept. 30 with Delaware’s Division of Corporations.

The document consists of a registration for a Delaware statutory trust, a legally recognized trust set up for business.

Bitwise CIO Matt Hougan confirmed the development and told CryptoSlate that more information would be released in the coming days.

The most infamous example is the Grayscale Bitcoin Trust, which was turned into an ETF in January this year. Notably, Grayscale introduced an XRP trust on Sept. 12. 

The XRP-related movements follow the end of a four-year-long dispute between XRP’s issuer, Ripple Labs, and the US Securities and Exchange Commission (SEC).

Ripple was fined $125 million as a result of the SEC’s partial win in a motion for remedies.

However, District Judge Analisa Torres from the District Court of the Southern District of New York did not consider XRP offerings to retail as selling of unregistered securities.

Despite the positive development, XRP price is still following the broad market movement and sits at $0.6117 at the time of writing, down by 2.6% over the past 24 hours.

Difficult task ahead

Approving a new crypto-related ETF that isn’t tied to Bitcoin (BTC) or Ethereum (ETH) might be a difficult task.

Nate Geraci, CEO of The ETF Store, stated on Sept. 12 that receiving a green light from the SEC for XRP ETF trading would need political help.

On a similar tone, Bloomberg senior ETF analyst Eric Balchunas claimed that the chance of a Solana ETF being approved in the US is equal to

“a snowball’s chance in hell.”

Balchunas’ remarks came after asset managers VanEck and 21Shares filed for Solana ETFs in late July, four days following the first spot Ethereum ETFs started trading in the US.

Furthermore, despite recently reiterating that Bitcoin is a commodity, SEC Chairman Gary Gensler refused to state what tokens can be considered securities in a Sept. 24 Congress hearing. The outcome of the Solana ETFs and the potential XRP ETFs under the SEC’s current leadership is still unclear.

Bitcoin, Business, Guests Posts

Metaplanet’s Bitcoin strategy lifts stock by 443%, targets 1,000 BTC

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Japanese investment company Metaplanet has made its largest number of Bitcoin purchases to date, following the acquisition of 107.913 BTC for around 1 billion yen (equivalent to $6.9 million), as per an Oct. 1 statement.

This marks Metaplanet’s eleventh Bitcoin acquisition since its first purchase on April 23, according to data from Bitcoin Treasuries.

With this latest purchase, the firm’s total Bitcoin holdings now amount to 506.745 BTC, worth approximately $32.2 million. The company’s recent disclosure shows that it has spent 4.75 billion yen (around $31.9 million) on its Bitcoin purchases, with an average acquisition cost of 9.37 million yen (roughly $64,931) per BTC.

Meanwhile, Simon Gerovich, Metaplanet’s CEO, hinted at further Bitcoin acquisitions and revealed the firm’s next goal is to accumulate 1,000 BTC. He said:

“As we start the second week of rights warrant exercise, please help us rise up on the list of top corporate holders of Bitcoin. Next target is to own more than 1000 Bitcoin.”

Presently, Metaplanet ranks as the second-largest institutional Bitcoin holder in Asia, trailing only Hong Kong’s Meitu Inc., which holds 940.9 BTC, according to Bitcoin Treasuries.

Meanwhile, the Michael Saylor-led MicroStrategy remains the largest corporate Bitcoin holder globally, with 252,220 BTC.

Metaplanet stocks outperforms

Metaplanet’s Bitcoin move has proven largely successful and helped the company stocks outperform traditional financial assets like the US Dollars, Gold, and Japan’s Nikkei share index

On Sept. 19, Gerovich shared that the company’s stock has surged by 443% since adopting the Bitcoin standard.  In comparison, the Nikkei index, the US Dollar, and Bitcoin itself have all seen declines of 7.1%, 6.4%, and 10.1%, respectively. Gold, however, has risen by 17% during this period.

Metaplanet Stock Performance. (Source: Gerovich/X)

Market observers have linked this strong performance with the firm’s Bitcoin-only treasury strategy, which it adopted in May to hedge against the volatility of the Japanese yen. Since then, Metaplanet has made regular Bitcoin purchases, positioning itself among the top 25 institutional Bitcoin holders globally.

Bitcoin, Blockchain

Ex-Chinese Deputy Finance Minister urges country to pivot anti-Bitcoin stance

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Zhu Guangyao, former deputy Finance Minister of China, called on the government to re-evaluate its approach to Bitcoin and crypto, stressing the need for deeper research into the technology, according to local media reports.

Speaking at the 2024 Tsinghua Wudaokou Chief Economist Forum on Sept. 28, Zhu warned of the risks posed by digital assets but emphasized their growing significance in the global digital economy.

Call to pivot

Zhu acknowledged the negative impacts of cryptocurrencies, particularly the risks they pose to capital markets and their potential to disrupt anti-money laundering and counter-terrorism financing efforts.

He stated:

“We must fully recognize the risks and the dangers they pose to capital markets. However, it is crucial to study international trends and policy adjustments as they are a vital component of digital economic growth.”

Reviewing the evolution of crypto, Zhu pointed to the US’ long-standing concern over the destabilizing effects of digital assets on global financial markets. He noted that for more than a decade, US policymakers viewed crypto as a significant threat to international anti-money laundering and anti-terrorism financing efforts due to its volatility and disruptive impact.

However, he pointed out that US policy has shifted in 2024, with former President Donald Trump incorporating crypto into his campaign platform and the US Securities and Exchange Commission approving 11 Bitcoin ETFs for listing on stock and futures markets.

Trump recently headlined the Bitcoin 2024 conference and pledged to support the industry’s growth. He argued that if the US did not take a leadership role in the industry, other nations like China would “overtake” it.

Zhu also highlighted the importance of developments in emerging markets and BRICS nations, including Russia, South Africa, Brazil, and India, which have taken steps toward integrating crypto into their financial systems.

Russia recently implemented legislation allowing the central bank to supervise the crypto sector and allowed companies to settle foreign transactions with crypto payments.

The forum highlighted the need for China to remain vigilant and informed about international shifts in crypto policy to ensure the country remains competitive in the rapidly evolving digital economy.

China’s ban on Bitcoin

China first imposed restrictions on Bitcoin in 2013, prohibiting financial institutions from engaging in crypto transactions. However, this failed to stop the burgeoning industry from growing in the country.

Over the ensuing years, the government escalated its measures, banning initial coin offerings (ICOs) in 2017 and shutting down domestic crypto exchanges.

A few years later, in 2021, China implemented a complete ban on Bitcoin mining and trading, citing concerns over financial stability, fraud, and environmental impacts. This ban effectively prohibited all forms of crypto transactions, causing many crypto-related businesses to relocate abroad.

Despite the crackdown, some underground trading persisted through decentralized platforms, with volumes continuing to reach billions of dollars. Meanwhile, Chinese mining pools continue to dominate the Bitcoin hashrate despite the blanket ban within the country.

Uncategorized

COPA takes on fight against ‘patent trolls’ to protect open source developers after Wright win

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The Cryptocurrency Open Patent Alliance (COPA) has joined forces with Unified Patents to protect the crypto community from patent trolls, launching a new Blockchain Zone aimed at challenging patents held by non-practicing entities (NPEs) that could threaten the open-source ecosystem.

According to Unified Patents, this initiative seeks to deter NPE activity in the crypto sector, where such entities account for 58% of all US patent litigation.

Paul Grewal, Chief Legal Officer at Coinbase and a member of COPA, emphasized the significance of this collaboration, saying:

“Patent trolls are barriers in the path of innovation; they hinder the progress of technology and stifle the spirit of creativity, particularly in the fast-evolving world of cryptocurrency. They must be stopped so that the community can continue to do the important business of building the crypto-economy.”

The partnership offers COPA members pass-through protection at no cost, enhancing their ability to innovate without the looming threat of unwarranted litigation. Steve Lee, Lead at Spiral — a subsidiary of Block and another COPA member — said:

“COPA has fought long and hard to reduce barriers to crypto innovation, including its efforts to debunk false IP claims related to Satoshi Nakamoto’s identity, which have plagued the Bitcoin community. Now, we take COPA’s work a step further to protect the crypto community from patent trolls.”

Unified Patents’ existing Transactions Zone has already challenged hundreds of patents that threatened related technologies. The newly established Blockchain Zone will extend these efforts to the blockchain industry, ensuring that blockchain technologies remain open and free from baseless assertions.

In March, the UK High Court ruled against Craig Wright in a case brought by COPA, declaring that he is not Satoshi Nakamoto and did not create Bitcoin.

Justice Mellor found that Wright had “lied to the Court extensively and repeatedly” and engaged in “the deliberate production of false documents to support false claims.” The decision undermined several of Wright’s other legal claims that relied on his asserted identity as Bitcoin’s creator.

By joining over 300 companies committed to deterring invalid patent assertions by NPEs, COPA and Unified Patents aim to foster an environment where developers can innovate freely. Unified Patents remains the only entity that deters invalid patent assertions without ever paying NPEs, thereby avoiding incentivizing further NPE activity.

Kevin Jakel, founder and CEO of Unified Patents, expressed optimism about the partnership, stating:

“We’re happy to partner with COPA to bring our unique solution to the blockchain community. It represents a wonderful opportunity to ensure that the technology remains free to grow businesses, reduce transaction costs, and ensures it won’t be hindered by the all-too-common baseless patent assertions affecting other sectors of the economy.”

The collaboration between COPA and Unified Patents represents a proactive approach to safeguarding innovation within the industry. By challenging questionable patents and deterring patent trolls, they seek to ensure that blockchain technology can develop unimpeded, benefiting the entire crypto community.

news, Regulation, Uncategorized

UK believes trial to embrace digital securities can protect ‘market integrity’

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The UK’s Financial Conduct Authority (FCA) and the Bank of England have officially launched the next phase of their Digital Securities Sandbox (DSS), enabling firms to explore distributed ledger technology (DLT) and tokenized securities within traditional financial markets.

The DSS, which will be operational until December 2028, provides a structured environment for testing and implementing DLT applications, aiming to enhance market efficiency, transparency, and resilience.

The initiative seeks to position the UK as a global leader in financial innovation by fostering conditions conducive to investment and sustainable growth. Divided into sequential stages known as gates, the DSS allows sandbox entrants to progressively increase their level of permitted activity as they advance through each phase.

Activities will go live after the Gate 2 stage, involving the issuance, trading, and settlement of actual digital securities. 

These securities are designed to function similarly to traditional counterparts, facilitating use in repurchase agreements and derivative contracts. 

Eligible financial instruments encompass equities, corporate and government bonds, money market instruments, fund units, and emissions allowances.

Open to UK-based firms of all sizes and development stages—including both existing financial institutions and new market entrants—the DSS invites applications until approximately March 2027. 

This timeframe allows regulators and participating firms to prepare for a potential transition to a new permanent regime, contingent upon the successful implementation of the new technologies.

In conjunction with the DSS launch, the FCA and the Bank of England published Policy Statement PS24/12, outlining the final policy approach and addressing industry feedback. Per the Policy Statement, several targeted changes have been made following consultation. 

These include extending the scope to incorporate non-pound sterling-denominated assets and adopting a more flexible method for setting firm-specific limits during the go-live stage by introducing limit ranges instead of fixed limits.

Additional adjustments involve reducing the minimum capital requirement for a Digital Securities Depository (DSD) to six months of operating expenses, down from the initially proposed nine months. 

Clarifications have also been made regarding provisions related to securities settlement systems, aiming to simplify understanding and navigation of the DSS rules.

Firms interested in participating are advised to review the provided guidance and complete the online application process, ensuring adherence to the outlined requirements. 

Upon submission, applications will be shared with both regulators, and further information may be requested as part of the evaluation.

The DSS represents a step forward in exploring the potential of blockchain and other emerging technologies within the UK’s financial markets. By facilitating innovation while safeguarding “financial stability” and “market integrity,” the initiative aims to contribute to a safe, sustainable, and efficient financial system.

However, it’s important to note that the UK’s focus on DLT does not necessarily mean it intends to promote the decentralized ethos that engulfs Web3.

Business, Uncategorized

Middle East tension causes massive crypto market shakeup, $489 million liquidated

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Bitcoin (BTC) crashed in tandem with stock markets on Oct. 1 as tensions continued to escalate in the Middle East after Israel announced ground operations in Lebanon, which has prompted Iran to take action.

The official account of Israel Defense Forces on X shared at 4:36 P.M. UTC that Iran was firing rockets at Israeli territory. Additionally, reports claim that Iran is likely to send a second wave of missiles targeting Israel in the ensuing hours.

As a result, over $489 million was liquidated over the past 24 hours, with the majority of liquidations — $312 million — occurring within the past four hours, according to Coinglass data.

Long liquidations accounted for $416.6 million of the total, while short liquidations amounted to roughly $73 million.

According to CryptoSlate data, BTC was trading at $61,598 as of press time, down 3% over the past day.

Altcoins see heavier losses

Major altcoins displayed heavier corrections following the news. Ethereum (ETH) was down 4.31% as of press time and trading at $2,490, while Solana (SOL) was down over 5.51% and trading at $146.8.

Toncoin (TON) and Dogecoin (DOGE) registered the worst performance, tumbling 6.2% and 7.3%, respectively, to $5.33 and $0.1063.

The Fear and Greed Index — which measures crypto investors’ sentiment daily — fell from the greed zone at 61 points to the neutral area at 50 points in 24 hours.

Gold, dollar surge

The US equities market also registered losses today, with the S&P 500 (SPX) shrinking 1.1% and the Nasdaq Index pulling back 1.85%. Nvidia (NVDA) stocks are down 4%, and Apple (AAPL) shares fell 3.6%.

Meanwhile, the US Dollar Index is up 0.6%, followed by a 1.1% leap registered by the Philadelphia Gold and Silver Index (XAU).

Jeroen Blokland, founder of the Blokland Smart Multi-Asset Fund, stated on X that investors are “literally selling” BTC to buy gold amid the intensification of the conflict. However, he added that Bitcoin’s average return as a hedge against geopolitical events has proven to be a good decision since 2020.

Citing a BlackRock report, Blokland highlighted that BTC outpaced the 60-day returns of SPX and gold during the US-Iran conflict and Covid outbreak in 2020, the deflagration of war between Russia and Ukraine in 2022, and the US banking crisis in 2023.

Bitcoin, Markets

Bitcoin ETFs see over $500 million inflows in past 2 days

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On Friday, Bitcoin ETFs recorded a significant inflow of $494.4 million, marking one of the highest single-day totals in recent months. Ark’s ARKB ETF led the charge with a substantial $203.1 million in new capital, continuing its strong momentum after a significant inflow on Sept.26.

Fidelity’s FBTC ETF saw $123.6 million, while BlackRock’s IBIT ETF contributed $110.8 million. Bitwise’s BITB added $12.9 million, while Grayscale’s GBTC posted $26.2 million in new flows. 

Minor inflows were seen in Invesco’s BTCO, Valkyrie’s BRRR, and VanEck’s HODL, which each reported around $3.3 million, and VanEck’s HODL saw an additional $11.2 million.

On Monday, Bitcoin ETFs saw a cooling in activity, with net inflows of $61.3 million. BlackRock’s IBIT ETF continued to attract capital with $72.2 million in inflows, but this was offset by outflows from Bitwise’s BITB and Ark’s ARKB ETFs, which saw withdrawals of $9.7 million and $9.5 million, respectively. Fidelity’s FBTC ETF also experienced a slowdown, adding only $8.3 million.

Bitcoin ETFs (Farside Investors)

Ethereum ETFs followed a similar pattern. On Sept. 27, total inflows reached $58.7 million, led by Fidelity’s FETH ETF with $42.5 million and BlackRock’s ETHA at $11.5 million. 

Bitwise’s ETHW and Invesco’s QETH added $5.4 million and $4.3 million, respectively, while Grayscale’s ETHE ETF posted outflows of $10.7 million, partially offset by $2.3 million in inflows to Grayscale’s mini ETH fund.

On Sept. 30, Ethereum ETFs faced minor outflows totaling $0.8 million, driven by $11.8 million in outflows from Grayscale’s ETHE fund, while BlackRock’s ETHA ETF added a modest $11 million. 

No significant activity was reported across the other Ethereum ETFs, suggesting a quiet start to the week for institutional interest in Ethereum-backed products.

Ethereum ETFs (Farside Investors)

Substantial inflows into Bitcoin ETFs on Friday emphasized continued institutional confidence, with Ark and Fidelity leading the charge. Monday saw a more tempered market reaction, possibly indicating short-term profit-taking or reallocation heading into the new week. 

Despite strong Friday inflows, Ethereum ETFs also saw a mixed start on Monday, with Grayscale’s outflows continuing to weigh on the overall market sentiment for Ethereum-backed funds.