Asset management firm Grayscale has recently adjusted the weightings of its cryptocurrency portfolios, resulting in changes to three of its funds.
These adjustments, which were announced on January 5th, are part of Grayscale’s routine quarterly review process.
The impacted funds include the Digital Large Cap Fund (GDLC), the DeFi Fund, and the Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund).
In the Digital Large Cap Fund, the new allocation breakdown now includes Bitcoin at 69.15%, Ether at 21.90%, Solana at 3.65%, XRP at 2.54%, Cardano at 1.62%, and AVAX at 1.14%.
As a result of this rebalancing, Polygon’s MATIC token has been removed from the GDLC portfolio.
READ MORE: Traders Gamble on Bitcoin ETF Approval with $1.5 Million in Bets on Polymarket
In the DeFi Fund, changes include the removal of the Curve DAO (CRV) token from the portfolio.
The updated basket of assets now consists of Uniswap at 41.11%, Lido DAO at 23.90%, MakerDAO at 13.39%, Aave at 12.63%, and Synthetix.
Interestingly, while MATIC was dropped from one of the portfolios, it still remains in the GSCPxE Fund. This fund’s composition now includes SOL at 44.54%, ADA at 19.77%, AVAX at 13.89%, Polkadot at 9.75%, MATIC at 8.25%, and Cosmos at 3.80%.
Grayscale’s fund managers regularly review and adjust the fund’s weightings to optimize performance in line with current market conditions, risk assessments, and investment objectives. This process is typically carried out on a quarterly basis.
Grayscale utilizes the CoinDesk DeFi Select Index methodology to determine the benchmarks for its funds.
It’s worth noting that funds like the DeFi Fund, designed to provide exposure to decentralized financial markets, have faced challenges due to the recent crypto market downturn.
As of the time of writing, the fund’s shares were trading at $22, reflecting a 9.28% decrease in the past 24 hours.
Furthermore, Grayscale is actively seeking regulatory approval for a spot Bitcoin exchange-traded fund (ETF) in the United States by converting its existing Grayscale Bitcoin Trust (GBTC) into a publicly listed BTC ETF.
The U.S. Securities and Exchange Commission (SEC) is expected to announce its decision on this matter on January 10th.
BlackRock, the world’s largest asset manager, is set to reduce its global workforce by approximately 3% in the coming days, according to reports.
This decision coincides with BlackRock’s optimism regarding its spot Bitcoin exchange-traded fund (ETF) application pending approval from the United States Securities and Exchange Commission (SEC).
Sources familiar with the matter have informed Fox Business, as of January 6th, that BlackRock intends to lay off roughly 600 employees as part of its routine internal adjustments, with decisions based on employee performance evaluations from the past 12 months.
BlackRock anticipates that the SEC will approve its Bitcoin ETF application on January 10th, which also marks the SEC’s deadline for deciding on the ARK 21 Shares spot Bitcoin ETF.
However, it’s important to note that the SEC’s official deadline for BlackRock’s application isn’t until January 15th.
This development follows a flurry of amendment forms recently filed with the SEC by spot Bitcoin ETF applicants.
BlackRock’s submission coincided with those of other asset managers, including Valkyrie, Grayscale, Bitwise, Hashdex, ARK 21Shares, Invesco Galaxy, Fidelity, Franklin Templeton, VanEck, and WisdomTree.
READ MORE: Grayscale in Talks with JPMorgan and Goldman Sachs for Proposed Spot Bitcoin ETF Partnership
These filings represent one of the final steps in the SEC approval process, allowing U.S. exchanges to list shares of investment securities directly tied to cryptocurrency.
Notably, in December 2023, Cointelegraph reported that BlackRock had made adjustments to its Bitcoin ETF application with the goal of increasing Wall Street banks’ participation.
They achieved this by introducing new shares within the fund that can be purchased with cash, rather than just cryptocurrency.
This in-kind redemption model allows major banks to act as authorized participants for the fund, thereby bypassing restrictions that previously prevented them from holding Bitcoin or crypto directly on their balance sheets.
In summary, BlackRock is streamlining its workforce as it awaits a potential SEC approval for its Bitcoin ETF application.
This move aligns with broader efforts to make cryptocurrency investments more accessible to traditional financial institutions, potentially opening up new avenues for institutional participation in the crypto market.
An anonymous Bitcoin user has made waves in the cryptocurrency world by transferring 26.9 Bitcoin, valued at approximately $1.17 million, to the legendary genesis wallet.
This wallet holds a special place in Bitcoin history as it was the first-ever wallet created on the Bitcoin network by the enigmatic Satoshi Nakamoto, the pseudonymous inventor of Bitcoin.
The intriguing Bitcoin transaction took place on January 5th at 1:52 am Eastern Time.
What makes this transaction stand out is the substantial transaction fee of $100, considerably higher than the typical fees associated with Bitcoin transfers.
READ MORE: Traders Gamble on Bitcoin ETF Approval with $1.5 Million in Bets on Polymarket
This unusual fee has raised eyebrows and sparked speculation within the cryptocurrency community.
The genesis wallet’s funding history is equally fascinating. Initially, it received funds from the consolidation of assets from three separate wallets, which were subsequently distributed to a total of 12 other wallets.
Most of the funds involved in this process were traced back to a wallet associated with Binance, a well-known cryptocurrency exchange, as identified by Arkham Intelligence, a blockchain analytics platform.
Conor Grogan, a director at Coinbase, couldn’t help but voice his thoughts on this mysterious transaction.
Italy, a pioneering European nation in the prohibition of OpenAI’s renowned chatbot, ChatGPT, has placed artificial intelligence (AI) at the forefront of its Group of Seven (G7) presidency agenda.
This year-long presidency, commencing in January and concluding in December, was officially unveiled by Italian Prime Minister Giorgia Meloni on December 4, 2023.
Meloni outlined several critical priorities, including supporting African development, offering support to Ukraine, and addressing the complexities associated with AI.
Expressing her apprehensions about AI’s impact on the labor market, she commented, “I am hugely concerned about the impact (of AI) on the labor market […] Today we are faced with a revolution where [human] intellect is in danger of being replaced.”
While specifics regarding Italy’s concerns about AI were not divulged by the Prime Minister, she indicated the intention to convene a dedicated AI-focused session involving G7 member nations before the inaugural leaders’ summit scheduled for June.
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Italy’s interest in AI’s influence on employment has been long-standing. In May 2023, the country allocated 30 million euros ($33 million) to the Fondo per la Repubblica Digitale (FRD) to bolster the skills of the unemployed and those whose livelihoods are susceptible to automation and AI encroachment.
Earlier in March 2023, the Italian Data Protection Authority initiated an immediate restriction on data processing by OpenAI, a U.S.-based company behind ChatGPT, for local users.
The agency cited the absence of a legal foundation justifying the extensive collection and retention of personal data for AI training as a primary concern. Subsequently, the ban was rescinded a month later after ChatGPT fulfilled all stipulated requirements.
However, in November, the Italian Data Protection Authority announced the commencement of a “fact-finding” inquiry to scrutinize data gathering practices for training artificial intelligence algorithms.
This investigation underscores Italy’s steadfast commitment to safeguarding privacy and ensuring responsible AI development within its borders.
As anticipation builds within the cryptocurrency community for the United States Securities and Exchange Commission’s (SEC) forthcoming decision regarding spot Bitcoin exchange-traded fund (ETF) applications, a unique form of speculation has emerged.
Traders are seizing this moment of suspense to wager on the approval outcome by January 15.
On the decentralized gambling platform Polymarket, which operates on the Polygon blockchain, traders are placing their bets with a simple “Yes” or “No” on whether the Bitcoin ETF applications will receive approval.
Presently, approximately $1.5 million worth of bets have been staked, and the majority of traders are favoring the “Yes” outcome.
The value of each share on Polymarket represents the odds of the respective approval or rejection, mirroring the volatility of the crypto market.
At the time of writing, a “Yes” share costs $0.79, while a “No” share is priced at $0.21.
An anonymous top holder known as “kiwi” has invested around $421,000 in “Yes” shares, while the leading holder for “No” holds only about $15,000 in “No” shares.
Polymarket has set the resolution date for January 15, 2024, at 11:59:59 pm Eastern Time, stating that the market will resolve as “Yes” if any spot Bitcoin ETF gains SEC approval by that deadline; otherwise, it will resolve as “No.”
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This implies that holders of either bet will experience either gains or losses based on the outcome by the stipulated deadline.
The platform asserts that the primary source for market resolution will be information directly from the SEC.
However, it also mentions the possibility of using a consensus of credible reporting sources to determine the market outcome.
While some members of the cryptocurrency community have criticized this betting activity, others have adopted a more humorous approach.
In a Cryptocurrency subreddit, one user referred to the bets as “putting up dollars to win dimes,” characterizing them as somewhat irrational.
Conversely, another community member humorously claimed they were about to lose their child’s college fund, while yet another apologized to their “crypto grandkids” for their impending actions.
As the crypto world watches and waits for the SEC’s decision, Polymarket’s speculative market serves as a unique reflection of the crypto community’s sentiment and willingness to take risks on significant developments in the space.
Arthur Hayes, a prominent figure in Bitcoin trading, has issued a warning, predicting a potential 30% to 40% crash in BTC prices in March.
In a blog post on January 4th, the former CEO of BitMEX highlighted the likelihood of a turbulent week in financial markets.
While Bitcoin enthusiasts have been optimistic due to the expected regulatory approval of the United States’ first spot Bitcoin exchange-traded funds (ETFs) and the upcoming block subsidy halving in April, Hayes believes that challenges lie ahead.
Hayes attributes his caution to the actions of the U.S. Federal Reserve, which is trying to stabilize an economy grappling with inflation and instability.
In March, the Fed’s Bank Term Funding Program (BTFP), established in response to the 2023 regional banking crisis, is set to expire. Shortly thereafter, the Federal Open Market Committee (FOMC) will decide on interest rates.
Hayes commented, “If my forecast is correct, the market will bankrupt a few banks within that period, forcing the Fed into cutting rates and announcing the resumption of the BTFP.”
Bitcoin and the broader crypto market are highly responsive to changes in macro liquidity, and a Fed bailout could aid them after an initial shock akin to the 2023 volatility.
READ MORE: Bitcoin ETF Approval Odds Remain High Despite SEC’s Need for More Time
However, Hayes believes that Bitcoin will rebound before the Fed meeting, asserting that it is the only neutral reserve hard currency not tied to the banking system, and it is traded globally.
He emphasized that Bitcoin knows the Fed always responds with liquidity injections in times of crisis.
Hayes anticipates a potential drop in BTC/USD prices ranging from 20% to 30% as March begins but believes that the upcoming halving will ultimately act as a catalyst for further price increases.
He cautiously stated that he won’t buy Bitcoin until after the critical March decision dates have passed.
The crypto community remains divided on the impact of ETF approvals. Concerns about potential rejections have already caused a nearly 10% drop in Bitcoin prices.
Some analysts argue that Bitcoin is due for a substantial correction, irrespective of ETF approval.
However, John Bollinger, the creator of the Bollinger Bands volatility indicator, predicts a positive reaction based on his tool’s readings, suggesting that Bitcoin might break higher in the near future.
Cipher Mining, a prominent player in the Bitcoin mining industry, has taken a significant step towards solidifying its position by acquiring 16,700 state-of-the-art Avalon A1466 miners.
These mining machines are set to be delivered in the second quarter, strategically timed to coincide with the highly anticipated Bitcoin halving event, expected in April.
This move underscores Cipher Mining’s ambition to emerge as a key player in the industry during this pivotal moment.
The purchase agreement was brokered with Canaan, the company responsible for manufacturing the Avalon A1466 miners, and involved a joint venture between Bear LLC and Chief Mountain LLC.
Cipher Mining holds a 49% stake in this joint venture, which will see the installation of half of these miners at the Bear facility and the remaining half at the Chief facility.
This expansion will contribute an additional 30 megawatts, equivalent to 1.25 exahashes per second (EH/s), to each of these mining centers.
Upon completion of this expansion, Cipher Mining’s total self-mining capacity will reach an impressive 8.4 EH/s.
The CEO of Cipher Mining, Tyler Page, emphasized the strategic importance of this acquisition, explaining that it positions the company for substantial growth, particularly in light of the Bitcoin halving event.
Historically, this event has been accompanied by a surge in Bitcoin’s price.
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Although the exact financial details of the 16,700 miner purchase were not disclosed, Cipher Mining expressed satisfaction with the favorable terms of the agreement, highlighting that the timing aligned with the market cycle for mining machines.
This isn’t the first time Cipher Mining has collaborated with Canaan. In the past, the company purchased a stack of Canaan machines, which performed admirably even in the scorching Texas summer heat, with temperatures reaching as high as 119 degrees Fahrenheit (48.3 degrees Celsius) in 2023.
In a separate transaction last year, Cipher Mining acquired 37,396 units of the latest Antminer T21 miners from Bitmain, amounting to a total investment of $99.5 million and adding 7.1 EH/s of self-mining capacity. However, delivery of these miners is expected in the first half of 2025.
Cipher Mining’s mining operations demonstrated consistent growth, with 465 BTC mined in December, marking a 7.4% increase from the previous month.
Currently, the company holds 796 BTC on its balance sheet, valued at approximately $34 million.
In terms of market performance, Cipher Mining’s share price (CIFR) experienced a remarkable rebound in 2023, surging by 638% from $0.56 to $4.13.
This impressive resurgence followed a challenging 2022 when CIFR plummeted by 88%.
With a current market capitalization of $1.01 billion, Cipher Mining is now trailing only behind Marathon Digital Holdings, Riot Platforms, CleanSpark, and Hut 8 Mining in the Bitcoin mining sector.
In 2023, the digital asset landscape saw a significant improvement in security as losses stemming from 751 security incidents amounted to just over $1.8 billion.
Although this figure remains substantial, it represents a remarkable 51% decrease from the previous year when losses due to hacks and various incidents reached a staggering $3.7 billion.
These findings are based on the annual report titled “Hack3d: The Web3 Security Report 2023” by CertiK, a prominent blockchain security firm.
On January 3, CertiK released this comprehensive document, shedding light on the state of Web3 security over the preceding year.
The report highlighted that the third quarter of 2023 was the most turbulent period, witnessing losses surpassing $686 million.
Notably, private key compromises continued to be the most expensive attack vector, causing over $880 million in losses through 47 incidents where private keys were compromised.
Within the blockchain realm, Ethereum emerged as the most impacted network. CertiK’s report disclosed that Ethereum suffered $686 million in losses across 224 incidents, averaging around $3 million per occurrence.
READ MORE: Rising Tide of Crypto Phishing Scams Costs Users $295 Million in 2023
In contrast, BNB Chain experienced 387 security incidents but incurred substantially lower losses, totaling $134 million compared to Ethereum’s figures.
Moreover, the report emphasized that cross-chain interoperability remains a challenge for the cryptocurrency ecosystem, with security breaches affecting multiple blockchains resulting in nearly $800 million in losses.
Ronghui Gu, co-founder of CertiK, expressed optimism about the state of blockchain security in 2023, characterizing it as a “positive development.”
He attributed the 51% reduction in losses to the broader bear market, which witnessed declining token and treasury valuations.
Gu expressed hope that if losses remain low during a bull run, it would signify that the Web3 industry is effectively assimilating essential security lessons.
In summary, the data from CertiK’s report indicates that 2023 marked a notable improvement in digital asset security, with a significant decrease in losses compared to the previous year.
This progress is attributed to proactive security measures and increased awareness within the industry, offering hope for further strengthening blockchain security in 2024 and beyond.
Grayscale Investments, a prominent crypto asset manager, is reportedly engaging in discussions with notable firms such as JPMorgan and Goldman Sachs regarding potential involvement in its proposed spot Bitcoin exchange-traded fund (ETF).
According to sources familiar with the matter, Bloomberg reported this development on January 4.
These discussions have surfaced shortly after Grayscale filed an amended S-3 application with the United States Securities and Exchange Commission (SEC), which notably did not specify any authorized participants.
Simultaneously, an earlier media report has indicated that Goldman Sachs is in talks with BlackRock, aiming to assume the role of an authorized participant for BlackRock’s ETF, citing inside sources.
An authorized participant plays a pivotal role in the management of an ETF, facilitating the creation and redemption of shares within the fund.
ETF issuers can appoint multiple financial institutions as authorized participants.
Notably, ETF applicants are not obliged to disclose their authorized participants in their S-1 or S-3 filings, which implies that other financial entities may still join in the future.
READ MORE: Global Bitcoin ATM Count Falls by 11.1% in 2023, Breaking 10-Year Growth Streak
While JPMorgan has already been designated as an authorized participant for several proposed spot Bitcoin ETFs, Goldman Sachs may soon join the ranks of other Wall Street giants, including Cantor Fitzgerald and Jane Street, which have previously secured authorized participant roles for other ETF issuers.
Goldman Sachs has historically maintained a neutral stance regarding cryptocurrencies and the digital asset sector.
Matthew McDermott, the Head of Digital Assets at Goldman Sachs, emphasized in a December 27 interview with Fox Business that the approval of a Bitcoin ETF would contribute to the maturation of the crypto market and attract increased institutional investment into digital assets on a broader scale.
Notably, a spot Bitcoin ETF has never received approval in the United States.
Nevertheless, experts in the ETF industry anticipate a 90% likelihood of approval before January 10.
Presently, there are 14 asset managers seeking to launch a spot Bitcoin ETF.
This development would offer institutional investors a regulated and direct avenue to gain exposure to Bitcoin within the United States.
Polychain Capital, a prominent crypto venture capital firm, has recently confirmed a security breach affecting the X (formerly Twitter) account of its founder and CEO, Olaf Carlson-Wee.
The hacker behind the breach exploited Carlson-Wee’s account to promote phishing links disguised as a website, offering a fraudulent airdrop.
The breach was first detected on January 4, prompting Polychain to issue a public statement advising X users to refrain from engaging with Carlson-Wee’s account until further notice.
The hacker initiated the attack by posting a deceptive message on X at 8:20 pm UTC, promoting a fictitious “$PCHAIN” token airdrop.
The message encouraged followers to click a link to participate, claiming, “In celebration of the New Year, we have decided to start the $PCHAIN phase 1 distribution early!
What are you waiting for? Get your share before it’s too late!” It included a link purportedly related to Polychain.
Phishing scammers often employ such tactics to deceive users into initiating malicious transactions that can lead to the theft of cryptocurrency from their wallets.
The hacker persisted in their efforts, with approximately 41,000 X users having seen the initial fraudulent post at the time of writing.
READ MORE: Bitcoin ETF Approval in the U.S. Faces Uncertainty Amidst Skepticism and Delay Predictions
This incident adds to the growing list of cryptocurrency-related phishing scams, with a recent report by security platform Scam Sniffer revealing that such scams victimized 324,000 individuals and resulted in losses totaling nearly $300 million in 2023 alone.
Unfortunately, this is not the first time that prominent figures in the crypto space have fallen victim to similar attacks.
Ethereum co-founder Vitalik Buterin had his X account compromised in September, where the hacker managed to siphon $691,000 from victims who clicked on a malicious link that falsely promised a free nonfungible token.
Moreover, other venture capital firms like Blockchain Capital and decentralized finance protocol Compound Finance also experienced similar security breaches in August and December.
These incidents involved luring users with promises of token claims.
Polychain Capital, headquartered in San Francisco, specializes in managing actively managed portfolios of various blockchain assets.
Established in 2016, the firm had amassed $2.6 billion in assets under management as of July 2023.
The breach of Olaf Carlson-Wee’s X account serves as a reminder of the ongoing challenges posed by cyber threats in the cryptocurrency industry, emphasizing the need for robust security measures and vigilant user awareness.