South Korea’s Financial Supervisory Service (FSS), the primary financial regulatory authority in the country, has unveiled its plan to seek insights from the United States Securities and Exchange Commission (SEC) regarding spot Bitcoin exchange-traded funds (ETFs).
The FSS is responsible for overseeing and regulating financial institutions under the broader jurisdiction of the Financial Services Commission.
On February 5, FSS Chief Lee Bok-Hyun presented the organization’s business plan for 2024 in Seoul.
As part of this plan, the FSS intends to visit major advanced financial markets, including New York, during the second quarter of the year.
The primary focus of these visits is to engage in discussions concerning various aspects of South Korean financial markets, with a specific emphasis on spot Bitcoin ETFs, according to reports.
Chief Lee also disclosed his intentions to meet with SEC Chair Gary Gensler later in 2024 to discuss digital assets and, notably, spot Bitcoin ETFs, among other financial matters.
He underscored the significant influence of the SEC’s recent approval of spot Bitcoin ETFs on global financial policies.
This announcement comes shortly after the SEC’s groundbreaking decision to greenlight 11 spot Bitcoin ETFs on January 10, marking the first-ever approval of such ETFs in the United States.
Previously, the SEC had rejected spot Bitcoin ETF applications, citing concerns about the crypto market’s relatively small size and susceptibility to market manipulation.
READ MORE; FTX Seeks Court Approval to Sell Anthropic Stake Amidst Bankruptcy
Following the SEC’s approval of spot BTC ETFs, the Korean securities regulator cautioned local firms against facilitating spot Bitcoin ETF transactions from the United States.
However, they also signaled their intention to review and update their regulatory framework pertaining to spot Bitcoin ETFs traded in the United States.
South Korea has established itself as a prominent regulator in the Asia-Pacific region when it comes to cryptocurrency markets.
The country often takes cues from the United States with regard to crypto regulations, including measures like prohibiting the use of credit cards for crypto purchases and banning crypto mixing services.
This ongoing collaboration with the SEC underscores South Korea’s commitment to staying current with evolving global crypto trends and regulations.
Grand Cayman, Cayman Islands, February 7th, 2024, Chainwire
Ondo’s Sui upcoming integration will bring native access to new tokenized assets such as treasuries, securities, and stablecoins on chain
Sui, the Layer 1 blockchain which has experienced explosive growth since its inception eight months ago, today announced that Ondo Finance is expanding into the Sui ecosystem. The expansion will bring Sui Network’s first native dollar-denominated token (including stablecoins and interest-bearing stablecoin substitutes) in the form of Ondo USD Yield or “USDY” — a US treasury-backed and interest-bearing token issued by Ondo.
Ondo’s expansion to Sui adds to Sui’s blistering DeFi momentum, demonstrating the growth and demand for financial applications and native functionality on chain. Sui’s DeFi volume is up more than 1200% since October and Sui recently broke into the top 10 DeFi ecosystems as measured by TVL.
Ondo Finance is the third-largest platform bringing tokenized derivatives of real-world assets onto public blockchains with $185M in TVL and over $1B worth of its newly-launched governance token trading in its first week in late January. In addition to stablecoins, Ondo’s flagship Treasury-backed tokens, tokenized securities, and real-world assets will create countless new opportunities for teams building on Sui.
Ondo’s expansion into the Sui ecosystem also continues a trend of top projects affirmatively choosing to integrate into Sui. For example, in December 2023, leading Solana lending protocol Solend announced it would launch a lending protocol native to Sui and decentralized derivatives exchange Bluefin likewise shuttered its V1 Arbitrum implementation to focus entirely on Sui.
“The people who interact with our platform want fast and efficient transactions, which should be essential for any blockchain project,” said Ondo’s founder and chief executive officer, Nathan Allman. “Sui’s growth and network performance offer clear confirmation that its network is the perfect fit for Ondo’s ecosystem.”
Tokenized treasury offerings represent tradable tokens backed by real-world assets, and their presence on Sui is a significant step toward growing DeFi in the ecosystem and across the industry.
“Ondo is an amazing addition to the Sui ecosystem, providing a native yield-bearing stablecoin-like asset that will unlock new opportunities for Sui’s builders and developers and essential new functionality for the users of their applications,” said Greg Siourounis, Managing Director of the Sui Foundation. “Sui’s DeFi volume is already growing at a remarkable rate and Ondo’s participation will make that trajectory even stronger. I am excited to see how Sui’s community leverages the real-world assets and innovative financial products Ondo offers.”
Contact
Sui Foundation
[email protected]
Zug, Switzerland, February 7th, 2024, Chainwire
The Swiss-based platform Skyline Digital empowers underbanked Web3 Businesses, Founders, and DAOs to access third-party fiat payments, OTC trades, tokenized real-world assets, vIBANs, and on/off-ramping.
Web3 Businesses, DAOs, and High Net Worth Individuals find themselves underserved by traditional banks, while custodial and centralized crypto exchanges pose risks and unreliability. Skyline Digital has made it a mission to solve these issues at the core of Web3 business with its non-custodial platform, providing access to TradFi services directly from any wallet.
Switzerland is the crypto-friendly home base of Skyline Digital, from where it operates as a regulated financial intermediary and VASP. From there, Skyline Digital facilitates a variety of financial activities, including third-party payments, OTC trades, vIBANs, on and off-ramping, and tokenized real-world assets such as US treasury bills.
Skyline Digital’s suite of services addresses the needs of Web3 organizations, including business expenses, contractor payments, or service provider transactions. So far, customers have utilized the platform for different types of transactions, including real estate investments, paying legal fees, purchasing a Tesla, and hiring contractors on a global scale.
The platform’s integration with Web3 liquidity providers and traditional finance institutions allows it to act as a payment facilitator, handling the exchange and payment from and to any major stablecoin and fiat currency (EUR, USD, CHF, GBP, SGD). Onboarded customers can directly process transactions from their Metamask, Safe, Ledger, or other wallets, bypassing the intricacies associated with traditional banking intermediaries. Last month, the platform extended the integration to Polygon Mainnet, and now users can choose between that network and Ethereum.
“For Web3 professionals, the boundary between TradFi and DeFi remained practically impenetrable. Bridging on-chain assets to the real world posed significant challenges, especially for Unincorporated DAOs, due to their lack of a legal entity. We can process single and batch transactions directly from our client’s Web3 wallets. The alternative is a cumbersome and costly combination of centralized exchange and bank transactions, which all require custody of your assets and bear substantial fees.” says Sebastião Queiroz e Mello, co-founder and CEO of Skyline Digital.
A distinct feature of Skyline Digital is its accessibility to the traditional investor market. Traditional investors can subscribe to Web3 fundraises through bank transfers without needing a wallet or technical sophistication.
Additionally, for Web3 businesses, Skyline Digital simplifies accounting reconciliation by providing detailed descriptions and tracking of on-chain and fiat payments.
Skyline Digital also offers customers crypto-to-crypto batch payments free of charge, contrasting its competitors, which charge up to 9000 USD annually, coupled with a 0.2% to 0.5% charge applied to each batch payment. Skyline Digital charges 1% and 10 USD per fiat payment without onboarding or monthly fees.
The platform went live in early 2023 and provides its rails also via API, while working with partners to make it accessible through main Web3 infrastructure tools and platforms. This year, Skyline Digital will roll out new TradFi and DeFi features, such as invoicing functionality, cards, and loans. To date, Skyline services some of the industry’s most well-known DAOs and businesses.
About Skyline Digital
Skyline Digital is a non-custodial solution opening the doors of TradFi for Web3 Businesses, Founders and DAOs.
Official Website | Linkedin | Twitter | Telegram
Contact
Cíntia Costa
Skyline Digital AG
[email protected]
Binance, a prominent cryptocurrency exchange, has unveiled a $5 million reward program to gather information regarding any potentially corrupt staff members following allegations of crypto token listing impropriety stemming from insider leaks.
On February 5th, Binance co-founder Yi He acknowledged that “heated discussions” had arisen within the crypto community following a sudden price drop in Ronin (RON), a gaming-focused blockchain token, shortly after it was listed on the exchange.
Speculations had circulated about potential insider leaks from within Binance, but Yi He countered these claims by stating that users had discovered blockchain data indicating preparations for the token’s listing.
CoinGecko data revealed that RON experienced a remarkable 30% price surge in the week leading up to its Binance listing announcement. However, it suffered an 18% drop within just an hour of the listing, eventually plunging over 26% on the same day.
This incident transpired just two weeks after Coinbase director Conor Grogan raised concerns about the existence of multiple wallets exhibiting a pattern of buying tokens shortly before they were officially listed on Binance, followed by selling them after the listings.
Grogan suggested that these wallets might be associated with a “rogue employee connected to the listings team” or a trader who had access to test trade information.
In response to these concerns, Yi He announced a comprehensive overhaul of Binance’s token listing procedures.
READ MORE: Genesis Global Capital Seeks Court Approval to Liquidate $1.6 Billion in Crypto Trust Shares
This revamp includes the establishment of a $5 million reward for validated information regarding corrupt staff members, exceeding the potential profits from illicit activities.
Team members involved in the token listing process will now be subject to stricter oversight, and any instances of leaked information concerning upcoming listings will lead to warnings for first-time offenders and dismissal for repeat offenders, Yi He asserted.
Additionally, individuals providing information exposing corrupt Binance team members in the token listing process or elsewhere may receive bounties ranging from $10,000 to $5 million.
To further enhance security, Binance will permanently blacklist projects that hire staff members terminated from the exchange due to corruption.
Project owners are urged to reach out to Binance for background checks before engaging with any potentially tainted individuals.
Furthermore, Binance will heighten its external communications security, emphasizing that token listings may be canceled if sensitive information is leaked prematurely.
Technical monitoring improvements are also on the agenda to safeguard against automated scripts reacting to token listing news.
Binance’s proactive measures reflect its commitment to maintaining trust and integrity within the cryptocurrency space while fortifying its reputation as a reliable and secure platform for traders and investors alike.
ProShares, a prominent issuer of futures-based Bitcoin exchange-traded funds (ETFs), remains unfazed by potential threats associated with the introduction of spot Bitcoin ETFs in the United States, according to a senior executive.
Simeon Hyman, ProShares’ global investment strategist, expressed that the company perceives advantages in the launch of spot Bitcoin ETFs for its futures products, both from operational and commercial perspectives.
In an interview with Cointelegraph on February 2, Hyman noted that their flagship Bitcoin futures ETF, the ProShares Bitcoin Strategy ETF (BITO), has experienced “very efficient” trading volumes since the arrival of spot Bitcoin ETFs.
Hyman conveyed the company’s satisfaction with BITO’s commercial impact, revealing that it currently trades with a mere two basis points deviation (2/100th of a percent) from its underlying value.
In contrast, spot ETFs have displayed an average premium or discount of 36 basis points.
Beyond the commercial realm, ProShares anticipates operational benefits stemming from the increased adoption driven by spot Bitcoin ETFs.
Hyman explained that the presence of spot ETFs is enhancing the futures market, which was already well-functioning and regulated.
The increased activity around Bitcoin is seen as a positive development.
READ MORE: FTX Bankruptcy Raises Questions Over Legal Team’s Lucrative Fees
These statements align with BITO’s recent trading dynamics, except for an abnormal spike in trading volume on January 11, coinciding with the launch of spot Bitcoin ETFs.
On that day, BITO’s trading volumes soared to nearly $2 billion, while its typical volumes ranged between $300 million and $600 million.
However, since the introduction of spot BTC ETFs, BITO has returned to its usual trading figures, reaching as low as $180 million on February 2. Prior to the spot ETFs’ launch, it traded within a similar range, as indicated by Yahoo Finance data.
It is worth noting that the news arrived as major spot Bitcoin ETFs like BlackRock’s iShares Bitcoin Trust (IBIT) and the Grayscale Bitcoin Trust ETF (GBTC) temporarily surpassed BITO in trading volumes, marking a significant shift.
BITO had previously held the title of the world’s largest Bitcoin ETF in terms of trading volumes.
Launched in October 2021, BITO stands as the United States’ first substantial futures Bitcoin ETF.
In contrast to spot Bitcoin ETFs, which track actual Bitcoin holdings, ProShares’ BITO uses futures contracts as its underlying asset.
Despite the changing landscape, ProShares remains optimistic about the future of its futures-based Bitcoin ETF amid the growing interest in the cryptocurrency market.
Vast Bank, which touted itself as the pioneer among U.S. banking institutions in allowing customers to seamlessly manage cryptocurrencies alongside their traditional checking accounts, has made a surprising move by shutting down its mobile crypto banking app and expressing its intention to exit the cryptocurrency industry.
According to an FAQ published on the bank’s website, Vast Bank has decided to disable and remove the Vast Crypto Mobile Banking application from both Google and Apple platforms as of Wednesday, January 31st, 2024.
Consequently, all Vast Crypto Mobile Banking accounts, including any digital assets held in custody, will undergo liquidation and closure, with remaining crypto holdings refunded to account holders.
Vast Bank ventured into the crypto sector back in 2019, forming partnerships with industry giants like Coinbase and SAP to launch their crypto-friendly mobile banking app in 2021.
However, the bank faced regulatory challenges, receiving a consent order from the Office of the Comptroller of the Currency (OCC) in late 2023.
The OCC’s order alleged that Vast Bank had engaged in “unsafe or unsound practices” related to risk management and control, with a particular focus on the institution’s involvement in cryptocurrencies.
READ MORE: Artists Ryder Ripps and Jeremy Cahen Ordered to Pay $9 Million in BAYC NFT Lawsuit
Shortly after the issuance of the OCC order, Vast Bank released a statement in November 2023, indicating a shift in its strategic direction.
The bank expressed its intention to refocus on “traditional banking” and pivot away from the crypto space. Vast Bank highlighted the ever-evolving and unclear regulatory landscape in digital banking, coupled with macroeconomic challenges, as factors contributing to its decision to withdraw from the crypto industry.
While Vast Bank did not explicitly mention regulatory uncertainty as the reason for its exit, it is widely acknowledged that the broader U.S. banking industry has exhibited hesitancy toward fully embracing cryptocurrencies due to regulatory ambiguity.
Some observers have pointed out the opposing stance of pro-crypto government officials who have voiced their concerns over the Securities and Exchange Commission’s inconsistent approach to cryptocurrency regulation.
In light of these developments, Vast Bank’s decision to exit the cryptocurrency space marks a notable shift in the landscape of traditional banking institutions’ engagement with digital assets, emphasizing the ongoing challenges posed by regulatory frameworks in the United States.
On February 5th, Bitcoin experienced a surge, surpassing the $43,500 mark, coinciding with the opening of Wall Street, as U.S. markets reacted to tumultuous events in the Chinese stock market.
Bitstamp reported local highs of $43,515 for Bitcoin, marking a new record for the cryptocurrency’s price in February.
This price rally was ignited by the abrupt drop of 8% in China’s CSI 1000 index, prompting Chinese authorities to enforce stricter controls on short selling.
Concerns about a potential recession in China began to circulate, with observations of a “disconnect” between large and small-cap stocks, causing China’s market to lose an astounding $7 trillion in value over the past three years.
Bitcoin’s volatility was further fueled by a significant increase in open interest, reaching $775 million, as reported by J. A. Maartunn, a contributor to the on-chain analytics platform CryptoQuant.
Despite the volatile market conditions, outflows from the Grayscale Bitcoin Trust (GBTC) remained relatively low, with approximately 2,600 BTC leaving the trust, continuing a downward trend seen in previous days.
Keith Alan, co-founder of the trading tool Material Indicators, analyzed the order book composition and issued a cautionary note regarding Bitcoin’s price.
He highlighted that there was limited liquidity immediately below the current spot price, making a drop to $42,000 appear quite plausible.
Furthermore, Alan noted that liquidity was more abundant around the $25,000 range, indicating growing sentiment for a potential price dip.
READ MORE: Artists Ryder Ripps and Jeremy Cahen Ordered to Pay $9 Million in BAYC NFT Lawsuit
He emphasized the relationship between liquidity and sentiment, explaining that increased liquidity often reflects prevailing market sentiment.
Alan also pointed out that the ladder of ask liquidity above the current spot price was gradually decreasing, suggesting that a rapid ascent to $45,000 or higher in the short term was unlikely.
In summary, Bitcoin’s price surged to over $43,500 as a response to the turmoil in the Chinese stock market.
This spike was accompanied by increased open interest and relatively low outflows from the Grayscale Bitcoin Trust.
However, caution was advised due to limited liquidity below the current price, with the potential for a dip to $42,000.
Overall, market sentiment remained uncertain, with the possibility of further price fluctuations in the near future.
Gibraltar, Gibraltar, February 6th, 2024, Chainwire
FuturePlay crypto casino has rapidly ascended in the gaming scene since December, forming key partnerships with leading providers like Relax, Spribe, Quickspin, and many others. With over 4,000 titles, FuturePlay offers new users a chance to earn up to 4 BTC + 400 free spins in bonuses.
About FuturePlay
A revolutionary blend of sports, iGaming, and entertainment, FuturePlay casino pioneers a transformative community where crypto bets meet thrilling sports categories and exciting game titles. Accepting Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin, Tether, Ripple, and many others. This ensures provably fair games, transparency, and swift payouts.
FuturePlay: Nomination Best Crypto 2024
FuturePlay.com is thrilled to announce its nomination for the prestigious 𝗕𝗘𝗦𝗧 𝗖𝗥𝗬𝗣𝗧𝗢 𝗖𝗔𝗦𝗜𝗡𝗢 𝟮𝟬𝟮𝟰 Award at the upcoming Sigma Eurasia event. As one of the top contenders among the nominees, FuturePlay.com stands out for its innovative approach to crypto gaming. The recognition reflects the platform’s commitment to providing an exceptional and secure gaming experience. Being nominated alongside other leading names in the industry is an honor, and FuturePlay.com eagerly anticipates the event, where winners will be unveiled. This nomination underscores FuturePlay.com’s dedication to excellence and innovation in the ever-evolving world of crypto gaming.
FuturePlay Crypto Casino New Gaming Providers
FuturePlay’s fusion of blockchain and diverse gaming experiences, featuring providers like Relax, Spribe, Quickspin, and more, signals a gaming revolution. Notably, Spribe’s innovative gaming experiences and Relax Gaming’s versatility strengthen FuturePlay’s position.
Players in territories such as the Americas and Oceania will see the biggest improvement in casino games offered.
Spribe ‘Aviator’
Established in 2019, Spribe Gaming has swiftly risen as a prominent provider of online casino games and iGaming products. Recognized for their commitment to innovation, Spribe delivers distinctive gaming experiences that distinguish them in the industry. With a focus on quality, Spribe’s games exemplify excellence, capturing players with their high standards. The strategic and innovative moves by Spribe position them as a provider worth monitoring. The partnership between FuturePlay Casino and Spribe Gaming is a natural synergy, uniting two entities dedicated to pushing the boundaries of online gaming, offering players an unparalleled and forward-thinking gaming experience.
Top Spribe Titles at FuturePlay
Relax Gaming
Founded in 2010 in Malta, Relax Gaming Group embarked on revolutionizing B2B content delivery in the iGaming landscape. A major European supplier, the company’s diverse portfolio spans various verticals, aligning seamlessly with the FuturePlay partnership. Thriving on innovative and engaging games, the collaboration between Relax Gaming and FuturePlay Casino promises to shape the future of online gaming.
Top Relax Gaming Titles at FuturePlay
BetSoft
A gaming powerhouse since 2005, BetSoft crafts state-of-the-art experiences captivating players with cinematic graphics. As a top slot provider, BetSoft’s commitment to creating immersive gaming experiences solidifies it as an industry leader. The FuturePlay and BetSoft partnership, marked by dedication to innovation and excellence, promises to shape the future of gaming, providing cutting-edge entertainment and pushing the boundaries of what’s possible in the online gaming realm.
Top BetSoft Titles at FuturePlay
Feature Releases
FuturePlay introduces flexibility by allowing users to play in their native crypto token or exchange to USD, broadening game provider options. With an impressive start, FuturePlay eyes continuous growth and innovation.
Deposits at FuturePlay
For users looking to transact with Mercuryo on FuturePlay, the process is straightforward and involves the following steps:
- Registration: Users begin by registering an account at www.futureplay.com.
- Deposit Initiation: Post-registration, users click the ‘Deposit’ option, situated in the upper right-hand corner of the FuturePlay interface.
- Mercuryo Selection: Within the deposit area, users select the ‘Mercuryo’ option on the left side.
- Amount Submission: Finally, users click ‘Submit’ and enter the specific amount of cryptocurrency they want to purchase.
Conclusion: A New Era Unveiled at FuturePlay
FuturePlay stands at the forefront of the crypto iGaming revolution, boasting 4,000+ top-tier games and upcoming sportsbook launch. A dynamic gaming landscape awaits, promising an unparalleled and exhilarating crypto gambling experience.
About FuturePlay
Established in 2023, FuturePlay, at the forefront of merging sports, gaming, and digital innovation. With a distinctive approach to iGaming, the company is dedicated to crafting a dynamic platform for the next generation of gamers and sports enthusiasts. www.futureplay.com
Social Media:
Twitter | Facebook Instagram | Telegram | Website (https://futureplay.rocks/jb0fecf8c)
Contact
FuturePlay Team
FuturePlay
[email protected]
Hong Kong, Hong Kong, February 6th, 2024, Chainwire
After a period of tranquility, the Ethereum ecosystem is gradually regaining momentum with the rise of the Restaking. As seasoned DeFi participants, DeSyn has consistently focused on developing the Ethereum network. Previously, DeSyn initiated the launch of the 3x ETH Leveraged ETF based on sharp market insights, aiming to promote diversity in Ethereum network products and assist users in maximizing their returns within the Ethereum ecosystem.
Today, DeSyn announces the launching of the DeSyn ETH Restaking Fund I( 3x Points), dedicated to participating in this industry revolution alongside ecosystems such as Eigenlayer and Renzo, collectively shaping the future of DeFi.
The DeSyn ETH Restaking Fund I( 3x Points), drETH in short, is an open-end fund product introduced by Little Frog, a professional decentralized asset management DAO organization based on the infrastructure of the DeSyn platform. This product integrates DeSyn and other two highly acclaimed restaking platforms, Eigenlayer and Renzo. Users can stake ETH, stETH, wETH, and ezETH through the DeSyn platform. The fund supports on-demand withdrawals and offers the existing APY from LST and LRT and the triple yield expectations from Eigenlayer, Renzo, and DeSyn. Currently, this fund’s APY ranges from 3.6% to 60%. In terms of security, DeSyn solemnly declares that all contract codes have undergone security audits to ensure the safety of user assets.
https://little-frog.gitbook.io/little-frog/products/open-end-desyn-eth-restaking-fund-i-3x-points
How to restake?
Users can navigate to Desyn’s website and select the “restaking” option to access the DeSyn ETH Restaking Fund I (3x Points) issue. Upon selection, users have the opportunity to acquire drETH, associated with the potential of triple returns.
https://www.desyn.io/#/pool/0x8F92265FE1F875d1985cD9D4275dd4Cfec9eb1E7
Enhanced Incentives through Triple-Point Staking with DeSyn
As mentioned earlier, opting for the fund not only grants potentially basic LST and LRT returns but also yields triple points from Eigenlayer, Renzo, and DeSyn.
DeSyn is committed to maximizing incentives for staking users. Starting from February 6, 2024, any user participating in this Fund can earn corresponding points, dependent on the staking amount and duration.
- DeSyn Points Formula: DeSyn points = (Amount of LST) * Number of staked days * 10,000
- Eigenlayer Points Guide can be found here.
- Renzo Points Guide can be found here.
EigenLayer: Elevating Ethereum Security through Restaking
EigenLayer is a protocol built on Ethereum that introduces restaking, a new primitive in crypto-economic security. This primitive enables the reuse of ETH on the consensus layer. Users that stake ETH natively or with a liquid staking token (LST) can opt-in to EigenLayer smart contracts to restake their ETH or LST and extend crypto-economic security to additional applications on the network to earn additional rewards.
Users can learn more by visiting EigenLayer’s official website.
Renzo: Pioneering Restaking on the EigenLayer Mainnet
Renzo is the first native restaking protocol to launch on the EigenLayer mainnet. Although EigenLayer will not begin securing Actively Validated Services (AVSs) I.e. EigenDA until mid-2024, they have been accepting deposits. Deposits for Liquid Staking Tokens (LSTs) are capped; however, native ETH deposits remain uncapped but very difficult for most users to access. They require a user to have 32 ETH and run an Ethereum node that is integrated with EigenLayer to run EigenPods.
Users can learn more by visiting Renzo’s official website.
About DeSyn
DeSyn Protocol is an innovative decentralized asset management infrastructure on Web 3, empowering users to securely and transparently create and manage customized pool-based portfolios with various on-chain assets (tokens, NFTs, derivatives, etc.) via smart contract.
For more information users can visit DeSyn’s: Official Website | Twitter | Telegram | Discord | YouTube
Contact
DeSyn Team
DeSyn Protocol
[email protected]
Genesis Global Capital, a crypto lending firm facing bankruptcy, has sought approval from the United States Bankruptcy Court to liquidate approximately $1.6 billion worth of shares in the Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG).
In a recent court filing, Genesis emphasized the urgency of this request, highlighting the need to obtain approval to sell these trust assets to preempt any potential fluctuations in the prices of the underlying assets, including Bitcoin (BTC), Ether (ETH), and Ethereum Classic.
Their primary objective is to maximize the available funds for distribution to creditors.
Genesis’s portfolio is predominantly composed of GBTC shares, accounting for approximately 87% of their total holdings, valued at $1.38 billion.
Meanwhile, ETHE makes up around 10% of their holdings, approximately $169 million, and ETHCG represents about 3%, totaling $38 million.
The filing reveals that as of September 2023, GBTC held about 3.2% of all circulating Bitcoin, while in December 2022, ETHE had roughly 2.5% of all circulating Ethereum, and ETCG held approximately 8.5% of all circulating Ethereum Classic.
READ MORE: FTX Seeks Approval to Sell $175 Million Claim Against Genesis Global Capital in Bankruptcy Case
Genesis noted that the recent conversion of GBTC into a spot Bitcoin exchange-traded fund (ETF) allowed for the redemption of shares in cash through its redemption program, following approval from the United States Securities and Exchange Commission on January 10.
However, the Ethereum trusts (ETHE and ETCG) do not have a redemption program, requiring written consent from the sponsor to sell or dispose of the shares. Genesis has requested the waiver of this written approval.
Recent reports have shown a significant sell-off of GBTC shares since its conversion.
On January 22, FTX, a bankrupt cryptocurrency exchange, sold 22 million GBTC shares valued at nearly $1 billion, fully liquidating its holdings.
In contrast, Genesis has expressed its intention to maximize the proceeds from the sale of these crypto assets.
The filing also emphasizes the commitment of both Genesis and Gemini (the sponsor) to make reasonable efforts to maximize the market price of any Trust Assets or Initial GBTC Shares and the proceeds received from their sale or redemption.