Investments

SEC pushes deadline to decide on Grayscale spot Ether ETF

The commission said it will have until January 2024 to reach a decision on the spot Ether investment vehicle or institute proceedings to extend the deadline again.

The United States Securities and Exchange Commission has delayed its decision on whether to approve or disapprove of a spot Ether (ETH) exchange-traded fund, or ETF, offering from asset manager Grayscale.

In a Dec. 5 notice, the SEC said it would designate a longer period on whether to approve or disapprove of a proposed rule change that would allow NYSE Arca to list and trade shares of the Grayscale Ethereum Trust. The commission’s announcement was one of the first following an appellate court ordering the SEC to review Grayscale’s Bitcoin (BTC) ETF offering in October.

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” said the SEC. “Accordingly, the Commission […] designates January 25, 2024, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change.”

AI and pension funds: Is AI a safe bet for retirement investment?

Some pensions funds that experimented with emerging assets like cryptocurrency have lost millions of dollars.

Pension funds are in a perpetual crisis worldwide, with low demographic rates in many countries foreshadowing a dim future for such investments, combined with young people’s lack of faith in the continued existence of social security models.

In order to stay afloat, many pension funds have strived to remain apprised of new investment opportunities, including cryptocurrencies. According to a 2022 study published by the CFA Institute, “94% of state and government-sponsored pension funds are invested in one or more cryptocurrencies.”

But pension fund interest in volatile cryptocurrencies has not come without consequences.

In April 2023, Ontario Teachers’ Pension Plan (OTPP) backed off from investing in the cryptocurrency sector after losing $95 million on its stake in FTX.

Artificial intelligence (AI) and digital assets share a similar hype.

For better or for worse, this relationship could affect them.

Bybit sees BTC, ETH ‘flight’ of institutional investors to stablecoins, but not for long

Cryptocurrency exchange Bybit has released its latest quarterly report, revealing the trading and holding trends of its institutional traders heavy in positive Bitcoin sentiment.

The cryptocurrency exchange Bybit released its fourth quarter report on Dec.

The report found that institutional traders had some 45% of their assets in stablecoins, with the remaining split 35% in Bitcoin (BTC), 15% in Ether (ETH) and only 5% in altcoins, which the exchange categorizes as anything other than the aforementioned digital assets.

The survey suggests that the “flight” to “safer assets,” like stablecoins, in a bear market “might explain this risk-averse asset allocation from traders.”

Nonetheless, institutional traders’ allocation of Bitcoin did spike in September, which differentiated itself from the holding patterns of other types of users.

*Surge in institutional traders’ BTC holdings in September 2023. Source: Bybit*

According to Bybit, the alignment of a surge in institutional BTC holdings with the prevailing positive market attitude toward Bitcoin can be correlated with “favorable lawsuit outcomes, fostering anticipation for the SEC’s potential approval of a spot BTC ETF.”

On Dec. 4, BTC surged above $41,000 for the first time in 19 months, and the overall market capitalization for the digital asset passed $800 billion, overtaking the real multinational holding company Berkshire Hathaway, and is now behind companies like Meta (formerly Facebook) and Nvidia.

UK House of Commons recommends further CBDC tests on viability, risks

A U.K. parliamentary committee fears an official launch would demand significant investment and that the benefits may not outweigh the risks.

A United Kingdom parliamentary committee in the House of Commons has asked the Bank of England and Treasury to conduct further consultative work to determine the benefits of launching a digital pound.

The groundwork and tests related to the launch of a central bank digital currency (CBDC) incurred significant costs for the Bank of England and Treasury, according to a House of Commons Treasury Committee report. It recommended greater transparency around the expenses incurred around CBDC initiatives by having a separate line item in its annual report and accounts from 2024 onwards:

“It is important that the Bank of England and Treasury keep control of these costs to avoid spending more than necessary on a digital pound that might not proceed to being built.”

The ongoing tests of a British CBDC highlighted numerous benefits concerning issuance, distribution and privacy, among others.

The committee asked England’s central bank to avoid speculating that “a digital pound can fix problems it can’t” and to ensure that a digital pound does not worsen the financial exclusion precedent set by the fiat economy.

While the Bank of England and HM Treasury see the need for a digital pound in the future, committing to build the infrastructure for one requires further preparatory work.

KuCoin pledges $20K grant to TON Foundation for ecosystem development

The funding will support TON ecosystem projects, research and development efforts, community-building and marketing activities.

KuCoin Ventures, the venture arm of Seychelles-registered crypto exchange KuCoin, will provide grants to The Open Network (TON) blockchain platform, including an initial $20,000, to support the growth and expansion of the TON ecosystem.

According to a Dec.

Ian Wittkopp, accelerator head at TON Foundation, said the grants from KuCoin aid them in continuing to support real-world blockchain solutions in payments and gaming within its ecosystem.

“Today’s partnership with KuCoin Ventures is an acceleration point in the momentum of mini-app development on the The Open Network… KuCoin Ventures’ efforts align with TON’s vision of a more accessible and decentralized digital future for everyone.”

Alicia Kao, managing director of KuCoin, attributed the move to the company’s belief in TON’s potential in the blockchain industry.

“This strategic alliance aligns with our mission of promoting further development of the crypto and blockchain industry through tighter cooperation.”

“We believe this signifies a fresh synergy between exchanges and the blockchain landscape, and we aspire that this joint effort will serve as a motivating example, spurring further similar ventures,” she added.

A KuCoin spokesperson told Cointelegraph that the partnership is in its first phase.

“This partnership is just the beginning. We plan to leverage this collaboration for deeper cooperation and communication… We are making all the necessary preparations for this… collaboration.”

Besides supporting the expansion of the TON ecosystem, KuCoin seeks to replicate its success with other blockchain collaborations “to facilitate the transition of cryptocurrency from a niche interest to mass adoption.”

SEC solicits comments on Fidelity’s spot Ether ETF application

“Interested persons” will have 21 days to comment on a proposed rule change allowing the Cboe BZX Exchange to list and trade shares of the Fidelity Ethereum Fund.

The United States Securities and Exchange Commission called on the public to comment on a proposed rule change that could allow asset management firm Fidelity to offer shares of its spot Ether (ETH) exchange-traded fund, or ETF.

In a Nov. 30 notice, the SEC said “interested persons” may comment on the Fidelity offering, proposing the Cboe BZX Exchange list and trade shares of its Fidelity Ethereum Fund. Fidelity first filed for approval of the fund on Nov.

Has been long known that Fidelity entered the spot ETF race but this filing *essentially* starts the ~240+ day clock for their spot #Ethereum ETF. Will have definitive deadline dates in the coming weeks https://t.co/0C6NKcxNNz pic.twitter.com/gdW9ZQDgs9

— James Seyffart (@JSeyff) November 30, 2023

The filing noted that investors in other countries, “including Germany, Switzerland and France,” had opportunities to gain exposure to Ether through exchanges offering exchange-traded products.

“U.S.

The filing added:

“Approval of a Spot ETH ETP would represent a major win for the protection of U.S. investors in the crypto asset space.”

Bitcoin for Christmas: MicroStrategy buys another $600M

The firm reported it held 174,530 Bitcoin as of Nov. 29 — worth roughly $6.6 billion at a price of $37,726.

Business intelligence firm MicroStrategy purchased 16,130 Bitcoin (BTC) in November, bringing its total holdings to more than $6 billion.

In a Nov. 30 announcement, MicroStrategy co-founder Michael Saylor said the company acquired the BTC for roughly $593.3 million — a price of $36,785 per Bitcoin. 29, MicroStrategy reported it held 174,530 BTC — worth roughly $6.6 billion at the time of publication — at a price of $37,726.

MicroStrategy has acquired an additional 16,130 BTC for ~$593.3 million at an average price of $36,785 per #bitcoin. As of 11/29/23, @MicroStrategy now hodls 174,530 $BTC acquired for ~$5.28 billion at an average price of $30,252 per bitcoin. $MSTR https://t.co/3XHhpIvsuA

— Michael Saylor⚡️ (@saylor) November 30, 2023

The business intelligence firm has consistently purchased large volumes of Bitcoin since announcing it would adopt the cryptocurrency as its treasury reserve asset in August 2020. Saylor’s last announcement was in September, reporting MicroStrategy bought 5,445 BTC for roughly $147 million.

Cathie Wood’s ARK buys $1.5M SOFI shares as SoFi exits crypto

Cathie Wood’s ARK has been actively accumulating shares of SoFi, which announced plans to terminate crypto services by the end of 2023.

ARK Invest, a cryptocurrency investment firm founded by Bitcoin (BTC) advocate Cathie Wood, bought about $1.5 million of SoFi Technologies (SOFI) shares on Nov.

On Nov. 29, or $7.35 a share, according to data from TradingView.

ARK’s latest SOFI purchase came on the day SoFi Technologies officially announced its decision to terminate cryptocurrency services by Dec.

“After careful consideration, we’ve made the decision to discontinue our crypto services by the end of this year,” SoFi said, directing its customers to migrate their crypto holdings to the online crypto wallet Blockchain.com.

ARK has been actively buying SoFi shares throughout the year, buying a total of 1,772,991 SOFI for ARKF so far.

SoFi stock has seen some volatility in 2023, surging to $11.45 in July after starting the year at just $4.50.

*SoFi Technologies shares’ year-to-date price chart. Source: TradingView*

In addition to buying SoFi, ARK has been actively buying Robinhood (HOOD) shares, bagging 221,759 HOOD on Nov. The platform officially announced plans to expand its business into the United Kingdom on Nov.

While buying SoFi and Robinhood, ARK has continued to sell the Coinbase (COIN) stock.

Crypto ownership in Canada slips in 2023, but average value of holdings rises

Only 34% of Canadians still believe that crypto “will play a key role in the future,” but the number of those able to give a basic definition of digital currencies has risen slightly.

The number of crypto hodlers in Canada dropped slightly in 2023, but the average value of their holdings rose significantly. However, 77% of respondents regret investing in crypto assets, according to a survey published by the Ontario Securities Commission (OSC).

The OSC published its “Crypto Assets Survey 2023” on Nov.

The survey results reflect a general pessimism toward crypto in the country’s population, which could be due to the period when the research was done.

Fewer Canadians own crypto assets than a year ago, dropping from 13% in 2022 to 10% in 2023.

Despite the pessimism, 39% of respondents claimed their crypto portfolio is profitable, which is only slightly less than in 2022 (46%).

The most common reason for buying crypto remains consistent.

Over 30% TikTok videos on crypto investments are misleading: Research

TikTok videos sporting popular crypto-related hashtags — such as crypto, cryptok, cryptoadvice, cryptocurrency, cryptotrading and cryptoinvesting — have cumulatively churned over 6 billion views.

More than 1 out of 3 influencers on TikTok, the go-to social media platform for the young generation, have been found to post misleading videos about Bitcoin (BTC) and cryptocurrency investments in a recent study.

TikTok has been widely adopted as a video-based alternative to Google searches. However, some influencers have been found to share unvetted misinformation on the social media platform about crypto investments, often trying to convince unwary viewers to put their (or their parents) hard-earned money into loss-making cryptocurrencies.

TikTok influencers use the hashtag ‘#cryptok’ while posting crypto-related content. An analysis of over 1,161 such TikTok videos — conducted by dappGambl — revealed that over one in three videos on crypto TikToks were misleading. The research also found that merely 1 in every 10 cryptok accounts or videos contained some form of disclaimer that warned users about the risk of investments.

Out of the lot, 47% of TikTok creators were found trying to push services to make money. Mainstream influencers, including Kim Kardashian, Jake Paul and Soulja Boy were also previously accused of promoting cryptocurrencies to their millions of fans without disclosing payments received.

The United States Securities and Exchange Commission forced Kim Kardashian to pay $1.26 million in penalties for the promotion of EthereumMax (EMAX). While TikTok influencers have a smaller reach than their mainstream counterparts, the potential financial risk for unwary investors remains equally high.

The research also found that 1 in 3 misleading videos on TikTok mention Bitcoin. Moreover, videos on TikTok sporting popular crypto-related hashtags — such as crypto, cryptok, cryptoadvice, cryptocurrency, cryptotrading and cryptoinvesting — have cumulatively churned over 6 billion views.

Viewers often oversee the ill-intent of their favorite influencers and end up trusting their content purely based on the high number of views or likes. Both new and seasoned investors are advised to do extensive research on crypto projects prior to making any form of investment.

Follow Cointelegraph’s TikTok account for the most recent news about crypto industry.

On April 2, a $1 billion lawsuit was filed against crypto exchange Binance, its CEO Changpeng “CZ” Zhao and three crypto influencers for promoting unregistered securities.

“This is a classic example of a centralized exchange, which is promoting the sale of an unregistered security,” read the lawsuit filed by the Moscowitz Law Firm and Boies Schiller Flexner.

As Cointelegraph reported, the lawsuit alleges that “millions” of people could be eligible for damages.

Magazine: Here’s how Ethereum’s ZK-rollups can become interoperable