Vanguard’s recent decision to exclude spot Bitcoin exchange-traded funds (ETFs) from its platform has raised concerns among some of its customers, leading them to consider alternative investment avenues.
The move comes as Vanguard emphasizes its commitment to traditional asset classes like equities, bonds, and cash, according to Investing Insider.
Vanguard officially stated that they will not offer spot Bitcoin ETFs for purchase on their platform and have no plans to introduce any Bitcoin or crypto-related products.
This decision is in line with their focus on conventional investment offerings, as they believe these assets are the foundation of a well-balanced, long-term investment portfolio.
Vanguard did not participate in the applications for spot Bitcoin ETFs in 2023, which has prompted investors to explore other platforms.
Tony Spencer, a Vanguard customer, claimed that the company informed him that they are not permitting the purchase of spot Bitcoin ETFs because it contradicts Vanguard’s investment philosophy.
Currently, Vanguard only allows investors to sell Grayscale’s flagship Bitcoin product, which was recently transformed into a spot ETF.
In response to Vanguard’s stance, some customers, including Coinbase’s senior engineering manager Yuga Cohler, are moving their funds to other platforms like Fidelity, which launched one of the ten spot Bitcoin ETFs on January 11.
Cohler expressed dissatisfaction with Vanguard’s decision, stating that it doesn’t align with his investment philosophy.
Neil Jacobs, a Bitcoin commentator, also voiced his disapproval and is in the process of transferring his funds out of Vanguard, describing the decision as a “terrible business decision.”
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The Wall Street Journal reported that customers of investment firms such as Citi, Merrill Lynch, Edward Jones, and UBS faced similar restrictions on purchasing spot Bitcoin ETFs on their respective platforms.
Some of these firms are still evaluating their approach to these products.
UBS is reviewing unsolicited offers from prospective spot Bitcoin ETF investors on a case-by-case basis and is currently making the ETF available only for “aggressive investors.”
Not all approved spot Bitcoin ETFs are available on their platform.
Citi has made a spot Bitcoin ETF available for institutional clients and is considering its adoption for individual wealth clients.
Merrill Lynch is monitoring the efficiency of spot Bitcoin ETF trading before deciding to offer these products to their customers.
In contrast, JPMorgan’s brokerage platform allowed spot Bitcoin ETF trading, with JPMorgan being an authorized participant of BlackRock’s iShares Bitcoin Trust ETF. However, JPMorgan disclosed potential risks to prospective investors considering these trades.
The first day of trading for spot Bitcoin ETFs, following regulatory approval, saw trading volumes exceeding 4.5 billion dollars, primarily driven by BlackRock, Grayscale, and Fidelity’s Bitcoin ETFs.
Additionally, the United States Securities and Exchange Commission approved applications from various ETF issuers, including ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Valkyrie, Bitwise, and Franklin Templeton, with Hashdex awaiting S-1 approval.
Several FTX clients have urged a U.S. bankruptcy judge to reconsider the defunct crypto exchange’s valuation of their cryptocurrency deposits, which is based on 2022 prices.
They argue that FTX’s approach is preventing them from benefiting from the recent surge in crypto prices.
The Official Committee of Unsecured Creditors, in support of the debtor’s motion to estimate claims based on digital assets, believes that collectively estimating claim values, as proposed in the motion, is the most efficient way to simplify the claim reconciliation process and expedite Chapter 11 confirmation.
The Debtors’ motion states that if the court determines that cryptocurrency deposits are not part of the estate, the appreciated cryptocurrency, which has grown by more than $5 billion since the petition date, must be returned to customers in kind and not used to pay administrative claims, among other things.
FTX’s bankruptcy plan outlines a reimbursement in U.S. dollars based on cryptocurrency prices at the time of the November 2022 bankruptcy filing.
FTX argues that U.S. bankruptcy law mandates valuing claims using that date, while customers contend that this method undervalues cryptocurrencies that have surged since the 2022 market low.
Sunil Kavuri, an FTX creditor activist, raised objections to the debtor’s motion to estimate claims.
When contacted by Cointelegraph, Kavuri clarified that his lawyers,
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Moskowitz and Boies, advocate for customers to receive “at least the value of crypto back” since property rights remain unresolved.
In addition to the Official Committee of Unsecured Creditors, FTX customers worldwide submitted letters to the U.S. bankruptcy court challenging FTX’s valuation approach before the Thursday deadline. FTX intends to have its list of cryptocurrency prices approved at a court hearing scheduled for January 25 in Wilmington, Delaware.
Some customers argue that the proposal unfairly favors stablecoin holders and external investors who acquired FTX bankruptcy claims at a lower cost, while holders of Bitcoin (BTC) and other volatile assets are left at a disadvantage.
The values of three major cryptocurrencies held by FTX customers—Bitcoin, Ether (ETH), and Solana (SOL)—have substantially increased since FTX declared bankruptcy.
Additionally, customers oppose the company’s decision to value its equity shares and token, FTT, at $0, which would erase over $700 million in FTT and FTX equity held by customers under the bankruptcy plan.
In a court filing on December 27, 2023, FTX argued that determining crypto prices based on the bankruptcy petition date is the only practical approach for initiating customer repayments.
FTX also pointed out that other bankrupt crypto firms like Celsius Network, BlockFi, and Voyager Digital had been permitted by courts to use petition-date prices to assess their customer claims.
The United States Commodity Futures Trading Commission (CFTC), responsible for overseeing U.S. derivatives markets, has released a comprehensive report aimed at addressing the risks associated with decentralized finance (DeFi).
In the report, the CFTC’s Digital Assets and Blockchain Technology Subcommittee acknowledges that DeFi offers promising opportunities, but also highlights the complexity and substantial risks it poses to the U.S. financial system, consumers, and national security.
To tackle these risks, the CFTC outlines a series of recommendations for policymakers and industry stakeholders.
One crucial aspect is the enhancement of technical capabilities and understanding of DeFi.
Additionally, the report suggests a thorough assessment of the existing regulatory boundaries, identification of potential risks and vulnerabilities, and the evaluation of policy responses to mitigate these risks.
Furthermore, the report emphasizes the importance of determining the most suitable targets and forms of regulatory intervention.
Policymakers are advised to carefully consider where intervention is likely to incur the lowest costs and result in the fewest unintended consequences, effectively balancing the costs and benefits of regulatory measures.
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The CFTC also underscores the need for increased engagement and collaboration between regulatory bodies, DeFi developers, and international standard-setting organizations to create a more effective regulatory framework.
In a public statement on January 8th, CFTC Commissioner Christy Goldsmith Romero emphasized the urgency of studying digital asset-related issues to prevent unforeseen negative consequences.
She stated, “From the time that I arrived at the CFTC, I have played a steady drumbeat that we need to study emerging issues related to digital assets or we could risk harmful unintended consequences.”
Romero hopes that the report can serve as an initial step in initiating a dialogue between policymakers and industry participants, given that DeFi remains at the forefront of concerns related to illicit financial activities, cyberattacks, and theft.
In conclusion, the CFTC’s report underscores the potential benefits and significant risks associated with DeFi in the U.S. financial system.
It provides a roadmap for addressing these challenges, emphasizing the importance of collaboration, understanding, and careful regulatory intervention to strike a balance between safeguarding the system and fostering innovation in the rapidly evolving world of DeFi.
Christmas came early last December for one lucky slot player, who won a record-breaking $42,100,000 USDT mega jackpot on the popular online sportsbook and casino site, Sportsbet.io. The player’s tale of holiday luck unfolded on December 20, 2023, as he was placing $50 USDT bets on Alchemy Gaming’s ‘Wheel of Wishes’ slot game.
Better Than Winning the Lottery
Although unconscionably lucky, the total jackpot was significantly buoyed by the structure of Games Global’s WowPot!™ jackpots. WowPot!™ takes a progressive percentage of every player’s bet and adds it to the total, giving players a chance to win amounts that can even exceed a national lottery win. In fact, the record-breaking $42 million USDT jackpot won on Sportsbet.io exceeded the average jackpot of the popular EuroMillions average jackpot of December, 2023 by around $7 million.
Anonymous Player Mulls New Future
Choosing to remain anonymous, the Sportsbet.io player initially could not believe his eyes, and is still unsure of what life will look like following the record breaking win. The unnamed player is not making any big decisions and is still overwhelmed by the whole experience but extremely grateful that he continued to use Sporstbet.io over the years.
“Not in a million years did I think that relaxing with a few spins on my favorite sportsbook and casino would change everything. I’ve been playing with Sportsbet.io for years, and it has proven to be the best decision I’ve ever made.”
Sportsbet.io Director Alex Haig Congratulates Winner
In honor of the record-breaking jackpot win, Sportsbet.io’s Director, Alex Haig, personally commended the winner, revealing the triumph as the largest-ever prize bestowed by a single spin in the realm of online slot gaming. Mr Haig emphasized the seamless withdrawal process, highlighting that despite the size of the sum, the fortunate player secured their funds in less than 90 seconds
Celebrating with the Team
As if clinching the record for the biggest online slots jackpot wasn’t euphoric enough, the winner is also set for an unforgettable celebration to follow. A ticket to Sportsbet.io’s headquarters in London awaits, promising an exclusive dining experience with the team. The fortunate player is also set to enjoy an experience of watching a Premier League football game from the VIP box at Newcastle United FC, where Sportsbet.io is an official club partner.
Several potential issuers of spot Bitcoin exchange-traded funds (ETFs) may need to reveal their on-chain addresses for the underlying BTC holdings to remain competitive, according to industry activist Samson Mow, CEO of Jan3.
While the approval of spot Bitcoin ETFs is eagerly anticipated in the United States, concerns have arisen regarding the transparency and verification of these ETFs.
Mow suggests that providing verifiable on-chain proof of Bitcoin reserves would be the optimal way for spot Bitcoin ETF issuers to ensure the legitimacy of their holdings.
Surprisingly, none of the 14 existing applicants for these ETFs have taken steps to offer on-chain proofs, Mow noted in an interview with Cointelegraph.
Skepticism has arisen among cryptocurrency observers regarding the holdings of spot Bitcoin ETFs, with some fearing that they may create “millions of unbacked BTC.”
Bloomberg ETF analyst Eric Balchunas emphasized that holding actual Bitcoin is in the best interest of ETF issuers to maintain their reputation and trustworthiness.
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Leah Wald, co-founder and CEO of Valkyrie, suggests that investors can verify whether spot BTC ETF issuers truly hold Bitcoin by reviewing publicly available records from the ETF provider, similar to verifying equity ETF holdings.
Regulators will also monitor the underlying asset holdings, ensuring a level of transparency.
However, some spot Bitcoin ETF applicants, like Grayscale Investments, have refused to disclose addresses due to security concerns.
Mow acknowledges that there’s a hypothetical possibility of an issuer creating an “unbacked” spot Bitcoin ETF if they violate the rules, even though regulations are in place to prevent this.
Despite potential rule violations, Mow believes that transparency will be a crucial competitive aspect in the spot Bitcoin ETF race.
As the competition escalates, he anticipates that one or more funds may disclose their addresses to establish themselves as transparent and reliable issuers.
The United States Securities and Exchange Commission is expected to approve the first spot Bitcoin ETFs in early January, with many analysts targeting January 10 as the approval date.
However, there’s also anticipation of fierce fee competition among ETF issuers, with some, like Invesco and Galaxy, waiving fees for the first six months and for the first $5 billion in assets.
According to ETF analysts Balchunas and Seyffart, there’s a 90% chance of the SEC approving a spot Bitcoin ETF by January 10, though a rejection remains possible if the regulator requires more time for consideration, an event they describe as the “rug pull of a decade.”
On January 2nd, Bitcoin surged to fresh 21-month highs, igniting excitement in the Asian trading session.
Data from Cointelegraph Markets Pro and TradingView indicated that Bitcoin’s price momentum was gaining strength after the holiday season.
The primary catalyst for this surge was the renewed enthusiasm surrounding the United States’ first spot Bitcoin exchange-traded fund (ETF). BTC/USD gained momentum, reaching $45,922 on Bitstamp.
Speculation regarding the ETF was rampant, with rumors suggesting a potential decision might come ahead of the official approval window scheduled for January 4th.
Market participants were unanimous in attributing the recent upward movement in Bitcoin’s price to anticipation of the ETF’s approval.
Crypto analyst Tony, in an update to subscribers on X (formerly Twitter), described this anticipation as a driving force.
Trader and podcast host Scott Melker summarized, “Bitcoin is trading as if an ETF is on the verge of being approved.”
Analyzing changes in the order book, fellow trader Skew observed some selling activity, although the volume remained relatively low.
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He confirmed in his latest X post that the price had stalled since spot selling began and highlighted the importance of previous highs as a key level to watch on a potential dip, specifically at $44.4K.
Estimates for Bitcoin’s potential price with the ETF focus centered around $48,000, despite the cryptocurrency already gaining up to 8% in the early days of 2024.
Interestingly, Bitcoin did not experience significant losses from traders betting against it. CoinGlass data indicated that only $38 million in Bitcoin shorts had been liquidated at the time of writing.
Previously, high funding rates across exchanges hinted at a widespread belief that the ETF event would trigger an upside move.
Cross-crypto short liquidations stood at $62 million. Skew pointed out that earlier short positions were caught off guard during the move past $45,000, particularly in the perpetual swap market.
This underexposure of the perpetual market to the current spot-driven surge suggested the potential for a feedback loop of volatility, especially around the $45,000 price level.
In summary, Bitcoin’s recent rally to 21-month highs was driven by excitement over the potential approval of the first U.S. spot Bitcoin ETF.
Traders and analysts closely monitored the market, with many anticipating further price gains and potential turbulence as the ETF decision date approached.
Leading Bitcoin mining companies are emphasizing the importance of efficiency to stay profitable and operational following the upcoming halving in 2024.
Bitcoin’s protocol mandates a reduction in the BTC rewarded to miners for adding blocks to the blockchain every 210,000 blocks, occurring roughly every four years.
The next halving, the fourth of its kind, will cut mining rewards from 6.25 BTC to 3.125 BTC. This reduction in rewards has significant implications for miners’ profitability and return on investment in hardware and operational costs.
Efficiency will be a key factor during the halving, according to Jaime Leverton, CEO of Hut8. Miners will need to optimize their operations to continue mining, leading Hut8 to develop specialized software for their Canadian mining sites.
They also plan to purchase four power plants in Ontario to power their operations, totaling 310MW.
Hut8 recently completed a merger with US mining firm USBTC, significantly increasing their hash rate from 2.6 EH/s to 7.3 EH/s in November 2023.
Taras Kulyk, CEO of SunnySide Digital, highlights the direct connection between the 50% reduction in block rewards and the price of BTC and transaction fees.
Lower-efficiency miners may need to shut down if these economic incentives don’t compensate for their costs.
Colin Harper, head of research at Luxor, also emphasizes efficiency and suggests that smaller miners may need to power down their machines due to reduced BTC rewards, unless there is a surge in Bitcoin’s price to boost profitability.
Core Scientific CEO Adam Sullivan states that the halving’s impact will depend on Bitcoin’s price and will directly affect how many miners can remain operational.
Lower Bitcoin prices could lead to more machines coming offline, reducing the network’s difficulty.
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However, Sullivan believes that Bitcoin’s protocol inherently encourages mining, and the network will adjust as miners exit the industry.
This view is shared by others, with a consensus that as long as Bitcoin holds value, mining will continue.
Kulyk is optimistic about the influence of Bitcoin Ordinals and increased scarcity of new Bitcoin in 2024, which could sustain profitable mining.
Contrary to past concerns about a “Bitcoin death spiral,” Blockstream CEO Adam Back believes such a scenario is unlikely.
He points out that mining profitability has increased significantly, and sophisticated mining firms have prepared for the halving’s potential effects.
Back contends that the least efficient miners are likely to drop out, but Bitcoin’s price appreciation and increased hash rate may prevent a significant drop in hash rate during the halving.
2024’s outcome will hinge on Bitcoin’s price performance and mining efficiency.
In summary, the upcoming Bitcoin halving in 2024 is prompting miners to focus on efficiency to maintain profitability, with the hope that Bitcoin’s price will continue to rise and offset the reduction in mining rewards.
The mining industry remains adaptable, with experienced miners prepared for the challenges ahead.
VanEck, a prominent asset manager known for its pending application for a Bitcoin exchange-traded fund (ETF) with the United States Securities and Exchange Commission (SEC), recently unveiled a pro-crypto advertising campaign.
On December 29th, the company shared its “Born to Bitcoin” video on X (formerly Twitter). Interestingly, the video did not explicitly endorse a BTC exchange-traded product.
This move came approximately two weeks after VanEck expressed a preference for “buying and holding” BTC due to the high costs associated with advertising.
In a trend seen among various asset managers seeking SEC approval for spot Bitcoin or Ether ETFs, VanEck’s advertising initiative aligns with an effort to increase public awareness and support ahead of potential approvals.
For instance, Bitwise enlisted actor Jonathan Goldsmith to reprise his iconic “Most Interesting Man in the World” persona in a December marketing campaign promoting Bitcoin.
Similarly, Hashdex introduced an ad spot highlighting the potential use cases of innovative technologies like cryptocurrencies.
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However, VanEck’s advertising campaign faced criticism online, primarily centered on the perceived low production quality of the ad, considering the firm’s substantial assets under management, exceeding $76 billion as of September.
The campaign mainly featured a silhouette of a figure walking in front of a city skyline, with a nod to the iconic “Buy Bitcoin” sign displayed behind Janet Yellen in 2017.
It’s worth noting that, as of the publication date, the SEC had not granted approval for a spot Bitcoin or Ether ETF to be listed on any U.S. exchange.
Nevertheless, the commission had taken steps to allow investment vehicles linked to crypto futures in 2021. Speculation abounded among experts that the SEC might begin approving multiple spot crypto ETFs as early as January 2024.
VanEck’s pro-crypto advertising effort, while not explicitly endorsing an ETF product, reflects the industry’s eagerness to engage with regulators and the public to secure approval for cryptocurrency-based exchange-traded funds, potentially opening up new avenues for investors in the crypto market.
The eagerly awaited 2024 Formula One season is set to witness the arrival of Stake F1 Team, an exhilarating partnership that melds the world of high-speed racing with the captivating allure of Stake, a renowned betting, entertainment, and lifestyle brand. This transformative collaboration underscores the evolution of sponsorship dynamics in Formula One and unveils an entirely new brand presence for the sport.
Stake, having previously inked a successful partnership with the team in 2023, is now poised to ascend to the role of exclusive Title Partner for both the 2024 and 2025 seasons, signaling its commitment to reshaping the Formula One landscape. In a bold move, Stake will assume full control of the team’s identity, securing exclusive naming rights, and even taking charge of the team’s social media platforms, which will now operate under the moniker Stake F1 Team, a clear reflection of the team’s fresh and dynamic image.
The Stake F1 Team is ushering in an era where traditional sponsorship norms are shattered, with a distinct emphasis on redefining marketing activations. Here, excitement is the linchpin, underlining a fan-centric approach that positions the team as one of the most captivating entities in the world of Formula One.
Founded in 2017 by a visionary group of technology and betting industry entrepreneurs, Stake has rapidly risen to prominence as a major player in the sports and entertainment sphere. Its expanded engagement with Formula One adds another jewel to its crown, alongside high-profile partnerships with global icons like Canadian superstar Drake, Everton Football Club, and the UFC.
In 2023, Stake made an indelible mark on the Formula One scene, leveraging unique activations that resonated far beyond the sport’s traditional fan base. The anticipation for the 2024 F1 calendar is palpable, with Stake gearing up for an array of high-profile experiences, beginning with the highly anticipated launch of the new C44 in February, heralding the start of a spectacular year.
Alessandro Alunni Bravi, Team Representative, lauded Stake’s burgeoning journey within Formula One, underscoring its unique ability to connect with fans and introduce newcomers to the sport. He also celebrated the exciting collaborations with Stake’s illustrious ambassadors, including Argentine football legend Sergio Aguero and Indian-Canadian rapper Karan Aujla, setting the stage for an even more thrilling 2024 season.
Edward Craven, Co-Founder of Stake, exuded enthusiasm for the team’s reimagined identity, driven by an unbridled passion for speed, innovation, and pushing boundaries. Craven tantalizingly hinted at “mind-blowing activations” on the horizon, both on and off the racetrack, as Stake F1 Team charts an electrifying future.
Akhil Sarin, Chief Marketing Officer of Stake, hailed the brand’s resounding success in elevating global brand awareness within the digital landscape. He affirmed Stake’s unwavering commitment to delivering unforgettable experiences that epitomize innovation, entertainment, and global connectivity as they embark on this exhilarating journey alongside Stake F1 Team.
As the curtain rises on the 2024 Formula One season, Stake F1 Team’s entry promises to redefine the sport, fusing the adrenaline of racing with the captivating allure of Stake, creating a thrilling experience that will leave fans on the edge of their seats both on and off the track.
The Avalanche Foundation, a nonprofit organization overseeing the development of the Avalanche Network, has revealed plans to utilize its $100 million nonfungible token (NFT) incubator fund to purchase meme coins.
This strategic move is part of the foundation’s “Culture Catalyst” initiative, initially launched in March 2022 with the primary aim of funding promising NFT projects on the Avalanche Network.
The “Culture Catalyst” initiative is designed to position Avalanche as a hub for creativity, culture, and lifestyle fostered by blockchain technology.
The foundation intends to achieve this by deploying its fund to acquire select Avalanche-based meme coins, thereby curating a unique collection that celebrates the culture and fun embodied by these coins.
Avalanche argues that meme coins transcend mere utility assets, representing the collective spirit and shared interests of diverse cryptocurrency communities.
The foundation is committed to actively participating in the meme coin market, with plans to engage in max bidding for all meme coins on its network.
However, it’s important to note that not all meme coins will find a place in the foundation’s collection.
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Avalanche has established strict criteria for selecting meme coins, including the number of holders, liquidity thresholds, project maturity, adherence to fair launch principles, and overall social sentiment.
One meme coin that has gained significant attention on the Avalanche Network recently is Coqinu (COQ), a rooster-themed token known for its humorous and explicit approach to its lack of intrinsic value, team, and roadmap.
Surprisingly, COQ witnessed an astonishing surge of over 1.47 million percent in value between its inception on December 8 and its all-time high on December 20, as reported by DexScreener data.
Avalanche’s decision to enter the meme coin market comes amidst a broader market frenzy for meme coins across various blockchain networks capable of supporting smart contracts.
Remarkably, one trader managed to turn a $450 investment into over $1.5 million in realized profit.
This trader acquired 4.86 trillion COQ tokens with 17.26 Avalanche tokens, ultimately selling 4.61 trillion COQ for 32,251 AVAX, worth $1.26 million, just one week later.
The trader currently holds 250 billion COQ tokens, valued at $318,300 at the current market prices.
In conclusion, the Avalanche Foundation’s foray into meme coins reflects its commitment to embrace and support the evolving culture and creativity enabled by blockchain technology, even in unconventional and often speculative corners of the cryptocurrency space.