Cryptocurrency Market Direction: What’s Next This Week?

– Advertisement –

• Nasdaq submitted an Ethereum spot ETF proposal on behalf of BlackRock to the U.S. Securities and Exchange Commission (SEC) on November 10.
• Insider information on November 9 revealed discussions between the SEC and Grayscale Investments regarding the conversion of the company’s trust product GBTC into a spot Bitcoin ETF.
• On November 9, during the Binance Blockchain Week event in Türkiye, CZ mentioned his significant interest in DeFi, alongside discussions about regulations.

Bitcoin and cryptocurrencies conclude a notably positive week; critical developments next week could influence market direction!

Recap of Last Week’s Market Events

The most significant development of the week was Nasdaq submitting an Ethereum spot ETF proposal on behalf of BlackRock to the U.S. Securities and Exchange Commission (SEC) on November 10. The Ethereum ETF will use Coinbase Custody Trust Company as the custodian and be based on the CME CF Ether-Dollar Reference Rate. BlackRock had previously filed for the iShares Ethereum Trust asset. Let’s now examine other important developments under headlines…

SEC in Talks with Grayscale on Spot Bitcoin ETF

Insider information on November 9 indicated that the SEC is in discussions with Grayscale Investments about its trust product GBTC’s application to convert into a spot Bitcoin ETF. Craig Salm, Grayscale’s Chief Legal Officer, mentioned the company’s current focus on constructive dialogues with the trading and market sections. These talks occur during a period where the SEC actively works with both parties to advance the application process after citing ‘arbitrary and capricious’ reasons for previous rejections. The SEC declined to comment on these new discussions.

SBI Launches ¥100 Billion Fund to Invest in Web3 and Emerging Companies

On November 9, according to reports, Japanese financial giant SBI Holdings will launch a fund to invest in ventures related to Web3, artificial intelligence, metaverse, and other technologies later this year. Each investment is expected to range from several hundred million to one billion yen, with an anticipated total of 150 to 200 invested companies. The expected total size of the fund is ¥100 billion (approximately USD 663 million). Sumitomo Mitsui Banking Corporation, Mizuho Bank, Nippon Life Insurance, and Daiwa Securities Group have decided to invest over ¥50 billion in the fund.

ACPR May Require DeFi Developers to Rewrite Almost All Smart Contracts

According to reports on November 9, senior officials from the French Prudential Supervision and Resolution Authority (ACPR) revealed their consideration of making it mandatory for smart contracts to obtain new compliance and security certificates or be rendered marginal. French regulatory authorities may demand DeFi developers to rewrite nearly all smart contracts. According to the proposal, uncertified smart contracts could be marginalized, and regulatory authorities could certify appropriate smart contracts.

ICBCFS Hit by Ransomware Attack Resulting in Partial System Outage

On November 10, it was reported that ICBC Financial Services LLC (ICBCFS), a wholly-owned subsidiary of the Industrial and Commercial Bank of China (ICBC), fell victim to a ransomware attack on November 8, causing partial system disruptions. According to Bloomberg, this attack briefly impacted the U.S. Treasury market and led to the inability to fulfill some transactions. The attack is believed to come from the Russian-linked hacker group known as Lockbit, which has previously targeted companies like Boeing. LockBit is known for using malicious software that encrypts files on victims’ computers and demands ransom to unlock them. LockBit typically accepts payment in cryptocurrencies like Bitcoin, Monero, or Zcash.

Binance Weekly Highlights

Binance Officially Launches Binance Web3 Wallet: On November 8, Binance announced the official launch of the Binance Web3 wallet within the Binance App. The wallet operates in a unique custody mode, integrates with Binance Bridge, allowing users to transfer assets across different chains. It also provides access to decentralized trading services. Using Multi-Party Computation (MPC) technology, the Binance Web3 wallet adopts a self-custody model, eliminating the need for private keys or mnemonic phrases. Currently, the Binance Web3 wallet supports 37 blockchain networks, including 24 EVM chains and 13 Cosmos chains, but it does not yet support Bitcoin. It includes built-in swap routing providers like 1inch and Binance Bridge. Additionally, the service’s terms of use state that Binance will potentially monitor for fraud, suspicious activities, and sanctions evasion, and transactions and accounts may be temporarily suspended for investigative purposes.

CZ States Focus on DeFi Wallet during Binance Blockchain Week: On November 9, CZ, during a speech at the Binance Blockchain Week event in Türkiye, expressed significant interest in DeFi, highlighting that they will allocate more time to improving the DeFi wallet due to the inadequacy of existing wallets in terms of security and usability. He mentioned that the Binance Web3 Wallet is just a small step, and there will be more work in the future. He advised not to focus too much on price and cycles but to concentrate on building products that people can use. Additionally, he believes significant developments will occur in the crypto sector after the Bitcoin halving event, and these developments will unfold over the expected year around May 2024.

Binance Releases Twelfth Reserve Audit: On November 7, Binance published its twelfth Monthly Reserve Report (snapshot date: 11–1). The user’s BTC reserves decreased by 0.7% to reach 584,000 BTC compared to the previous month. ETH reserves increased by 2.2% to reach 3,910,000 ETH. The user’s BNB reserves increased by 6.4% to reach 31.21 million BNB. The user’s USDT reserves decreased by 0.29% to reach 15.27 billion USDT compared to the previous month.

FTX Weekly Summary

SEC Chairman: “Restarting FTX Within Legal Framework Is Possible”: According to CNBC on November 9, SEC Chairman Gary Gensler, during the Washington D.C. FinTech Week event, mentioned that if FTX’s new leadership understands the law clearly, it is “possible to operate within a legal framework.”

Three Companies Racing to Restart FTX: According to WSJ on November 8, Tom Farley, former president of the New York Stock Exchange, is reported to be one of three companies racing to buy the remaining assets of FTX through the cryptocurrency exchange platform Bullish. The other two companies are financial technology startup Figure Technologies and cryptocurrency venture capital firm Proof. The winning bid holder will have the opportunity to relaunch the trading platform after next year’s planned bankruptcy proceedings.

FTX Aims to Sell Grayscale and Bitwise Trust Assets Worth $744 Million: According to court documents on November 6, FTX and its creditors requested permission to sell approximately $744 million worth of Grayscale and Bitwise trust assets through an investment advisor. This move was made in preparation for future cash distributions to creditors, aiming to allow for the quick sale of these trust assets when the time is right.

Court Approves Celsius’ Transformation into Bitcoin Mining Company

According to Bloomberg on November 10, Celsius Network LLC, a cryptocurrency lending company, received approval from the bankruptcy court to transform into a Bitcoin mining company. Celsius plans to redistribute approximately $20 billion worth of assets to creditors, including Bitcoin, Ethereum, and shares in NewCo. According to Celsius’ lawyers, the platform could start distributing assets in early next year. The transformation plan still requires SEC approval, and if the offer fails, Celsius may go into liquidation.

USDC Stablecoin Issuer Circle Considers Going Public in 2024

According to Bloomberg on November 8, Circle, the issuer of the USDC stablecoin, is considering going public in 2024, and the valuation has not yet been determined. Previous plans to go public through a SPAC merger in 2022 with an estimated valuation of $9 billion failed. Traditional financial giants such as Goldman Sachs and BlackRock are among Circle’s investors. While the USDC stablecoin experienced a significant drop in market value since June 2022, it had reached a market cap of up to $56 billion over time.

Robinhood Releases Third-Quarter Earnings Report

On November 8, Robinhood released its third-quarter financial report, showing that cryptocurrency-related revenue for the period decreased by 55% compared to the same period last year, reaching $23 million. It was also mentioned that Robinhood plans to expand cryptocurrency trading to the European Union and aims to operate a cryptocurrency brokerage in the United Kingdom.

What to Expect Next Week?

Next week is not expected to be particularly dense in terms of economic data, but investors should follow two crucial pieces of data: U.S. inflation data and the Producer Price Index (PPI) data. Inflation data will be released on November 14, Tuesday, and PPI data will be released on November 15, Wednesday. These data points could create volatility in Bitcoin and cryptocurrencies.

Apart from economic data, on November 17, the U.S. Securities and Exchange Commission (SEC) will decide on spot Bitcoin ETF applications filed by Franklin Templeton and Hashdex. While the SEC has the authority to defer these ETF decisions, ETF analysts expect the approval of spot Bitcoin ETFs before 2024, despite possible delays.

Important developments of next week 🔥#US #Bitcoin #BTC $BTC #Crypto #ETF #BitcoinETF pic.twitter.com/gQkStdQGUy

— COINOTAG NEWS (@coinotagen) November 12, 2023