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Crypto custody services, which support clients in managing their crypto assets, represent a new venture for Ripple, now unified under the brand Ripple Custody.
The company is best known for its XRP cryptocurrency and RippleNet, a distributed ledger platform facilitating fast interbank payments.
This settlement concludes a tumultuous period that began with the company’s bankruptcy in November 2022, which left millions of customers without access to their funds.
Last year, the exchange’s former chief, Sam Bankman-Fried, was found guilty of misappropriating customer funds before the collapse and was subsequently sentenced to 25 years in prison.
Under the terms of the agreement, former clients will be able to reclaim approximately 119% of the value held in their accounts at the time of the bankruptcy, as per FTX’s statement.
Creditors expect to receive their compensation within 60 days after the plan becomes operative, although the exact date remains to be determined.
This move marks a significant milestone as it is the first attempt to create an ETF specifically for XRP, the native token of the XRP Ledger.
The proposed Bitwise XRP ETF aims to provide investors with direct exposure to XRP through traditional brokerage accounts. This will make it easier for both institutional and retail investors to gain access to this digital asset. Bitwise’s decision to pursue an XRP ETF underscores the growing recognition of XRP’s potential and its established presence in the cryptocurrency market.
Bitwise is no stranger to the ETF landscape, having successfully launched Bitcoin and Ethereum ETFs in the past. The company’s experience and reputation in managing crypto assets lend credibility to this new venture. However, the approval process for the XRP ETF is expected to be rigorous, given the SEC’s cautious approach to cryptocurrency-related financial products.
The filing comes at a time when the cryptocurrency market is experiencing increased interest from mainstream investors. XRP, known for its fast transaction speeds and low fees, has been a popular choice for cross-border payments and remittances. If approved, the Bitwise XRP ETF could attract a new wave of investors looking to diversify their portfolios with digital assets.
While the SEC’s decision is still pending, the filing itself is a testament to the evolving landscape of cryptocurrency investments. There is a growing acceptance of digital assets in traditional financial markets. Investors and crypto enthusiasts alike will be watching closely as this development unfolds.
Others will likely follow suit.
Note the timing of the ETF announcement and the subsequent drop in XRP price.
Note: article written by AI
Shares associated with digital currencies also fell in after-hours trading. Crypto exchange Coinbase saw a decline of about 1%, and MicroStrategy experienced a 2% drop, following a decrease of 7.4% and 3.5% at the close.
Escalating conflicts in the Middle East have curbed investors’ appetite for risk as the new trading month and quarter got underway. On Tuesday 1st October 2024, Iran executed a ballistic missile strike on Israel in response to the recent assassination of Hezbollah leader Hassan Nasrallah and an Iranian commander in Lebanon.
The growing turmoil in the Middle East has driven oil prices higher and bolstered the U.S. dollar, casting a shadow over Bitcoin and other speculative assets.
As part of its international expansion efforts, the company aims to enhance its product offerings in the region.
According to a blog post-dated Tuesday 1st October 2024, Robinhood will enable customers within the European Union to deposit and withdraw over 20 different digital currencies via its platform, including Bitcoin, Ethereum, Solana, and USD Coin.
This development grants Robinhood’s European clientele the option of “self-custody” of assets, allowing them to personally hold their cryptocurrencies in a privately-owned wallet, rather than relying on a third-party service to manage their funds.
Both Bitcoin and Ether underwent substantial declines as investors moved away from high-risk assets. This downturn followed the Nasdaq’s worst three-week performance in two years and occurred as the Nikkei 225 reached a low not observed since the Black Monday crash of 1987.
It is generally seen as a trade or bet on the growth and of the development of the blockchain and of crypto more widely.
Many of the funds set to launch this week have temporarily waived fees in an attempt to attract buyers.
The Securities and Exchange Commission (SEC) has historically been wary of cryptocurrencies. However, the regulator was defeated in a legal battle last year concerning Bitcoin ETFs, which aided their launch in January 2024.
Given that both Bitcoin and Ether have regulated futures markets, the introduction of ether ETFs was viewed as the industry’s subsequent rational progression.
Bitcoin ETFs have attracted about $17 billion in net inflows since their launch in January 2024.
An Ethereum ETF, or Ether ETF, is an exchange-traded fund that tracks the price of ether (ETH), the cryptocurrency with the second-highest market capitalization following Bitcoin. Unlike purchasing Ethereum on a cryptocurrency exchange, an Ethereum ETF is bought and sold on traditional stock exchanges.
An Ethereum ETF contains futures contracts linked to Ethereum’s price movements. These contracts enable investors to speculate on Ethereum’s future price without the need to own the cryptocurrency directly.
Investing in an Ethereum ETF offers exposure to Ethereum’s price volatility while eliminating the need to handle wallets or navigate the intricacies of cryptocurrency exchanges. Such ETFs offer traditional investors a practical avenue to engage with the cryptocurrency market, leveraging the conventional environment of stock exchanges.
The small cap-focused Russell 2000 also rose for the fifth straight day, rising 3.5% fast closing in on a new record high as the money continues to rotate from tech stocks.
The Dow Jones finished at 40,954, marking an increase of 1.85% for the day. It has experienced consistent daily gains since the previous week, culminating in an overall rise of over 4% over the past five trading days. The closing value on Tuesday 16th July 2024 represents the largest single-day gain since June 2023.
The market saw an uptick amidst a broader rally, driven by the news that June retail sales exceeded expectations, strong earnings reports to date, and the expectation of a benchmark interest rate reduction by the Federal Reserve in September.
Positive remarks from the Federal Reserve about potential interest rate cuts are bolstering market sentiment. Additionally, the buzz surrounding Trump’s re-election campaign and the recent assassination attempt on Trump at one of his election rallies seem to be influencing market movements as well.
However, Donald Trump reportedly said Taiwan should pay the U.S. for defence, in an interview with Bloomberg Businessweek published on Tuesday 16th July 2024. His comment had a negative impact on chip and tech stocks.
Crypto is enjoying the market rotation as more money is being ploughed back into cryptocurrencies. Bitcoin jumped from a low point in July 2024 of just below $56,000. Altcoins are also enjoying a mini-recovery.
According to the Arkham website, the United States’ government holds some 212,847 BTC making it one of the biggest holders of Bitcoin, while the treasuries of the U.K. and Germany reportedly hold around 61,245 BTC and 49,858 BTC each. (These values alter daily).
In addition to Bitcoin, the U.S. government also holds around $200 million in other cryptocurrencies like Ether (ETH), as well as major stablecoins like USDC.
Arkham, a crypto intelligence platform focused on deanonymizing entities on the blockchain network, has introduced a dashboard featuring the governments with the largest crypto holdings.
The U.K. government, reportedly ranked second, holds around $3.5 billion worth of Bitcoin at current valuations, according to Arkham’s data. The German government owns roughly $2.5 billion.
China, Russia, Ukraine, El Salvador, Finland, Bhutan and many others.
In 2021, El Salvador became the first country to make Bitcoin legal tender and mandated all local businesses to accept payments in BTC.
Bitcoin’s price plummeted over 6% in 24 hours, reaching $54,237, marking its lowest point since late February 2024.
The total cryptocurrency market lost over $170 billion in market capitalization within the same timeframe, according to CoinGecko.
The Mt. Gox bankruptcy estate’s trustee announced on Friday that repayments in Bitcoin have commenced for certain creditors via specified cryptocurrency exchanges.
The Mt. Gox Bitcoin payout pertains to the reimbursement process for creditors of the defunct Mt. Gox cryptocurrency exchange. Previously the world’s largest Bitcoin exchange, Mt. Gox fell in 2014 due to a significant hack, leading to the loss of about 740,000 Bitcoins.
Following extensive legal battles and postponements, the exchange is poised to start disbursing roughly $9 billion in Bitcoin and Bitcoin cash to its creditors. This payout is noteworthy as it entails a substantial return of bitcoin to users, which may influence the cryptocurrency market dynamics.
In the past week, it’s fallen more than 10%.
Crypto investment products reportedly notched a second consecutive week of outflows, according to analysts. Last week, they saw their lowest trading volumes globally since the U.S. Bitcoin ETFs launched in January 2024.
Advisors’ hesitations stem from Bitcoin’s price volatility and its relatively brief history. Bitcoin ETFs serve as a conduit between cryptocurrency and conventional finance. According to a BlackRock spokesperson – financial advisors are cautiously, but progressively, embracing the long-anticipated Bitcoin ETFs since their launch.
Currently, it is estimated that approximately 80% of Bitcoin ETF purchases are being made by self-directed investors who decide their own allocation, frequently via an online brokerage account.
It started the week on a decline after a not-so-good weekend, with its volatility making it challenging to hold its price level. Despite this, Bitcoin recorded a minor gain on Monday 17th June 2024, in early trade, with its price on international exchanges standing at roughly $66,000.
Since Bitcoin halving, miners have been searching for more lucrative income streams as AI and crypto industries collide.
The revenue from crypto mining, especially Bitcoin, has significantly decreased in recent months. After the ‘Bitcoin halving’ event in April 2024, rewards earned by Bitcoin miners were cut by 50%. As a result, miners have been seeking alternative revenue streams.
Following the unveiling of ChatGPT by OpenAI in November 2022, there has been a significant increase in the demand for AI computation and infrastructure. This surge has led to a flurry of investments in AI models and startups, presenting miners with new opportunities to transition into the AI sector.
Bitcoin miners are progressively turning to ‘stranded energy site’s – these are locations with surplus or untapped energy for mining operations. At the same time, they are channelling investments into AI at more stable sites. This strategic move enables them to leverage the potentially higher returns from AI.
Core Scientific, a Bitcoin mining company, has recently entered into a 12-year agreement with cloud provider CoreWeave to supply infrastructure for AI applications. This partnership is anticipated to generate in excess of $3.5 billion in revenue over the duration of the contract. CoreWeave, supported by Nvidia, offers rental of graphics processing units (GPUs) essential for AI model training.
In conclusion, Bitcoin miners are increasingly adopting AI to adjust to the evolving market dynamics and to uncover new revenue streams beyond conventional mining. The merging of AI and the cryptocurrency industry offers promising prospects for both fields.
This move occurs less than half a year after the Securities and Exchange Commission greenlit Bitcoin ETFs. These funds have been a significant triumph for the industry, with net inflows reportedly exceeding $12 billion.
May was widely anticipated as a likely verdict time for the ether funds, aligning with the SEC’s deadline to determine the fate of the VanEck Ethereum ETF.
Numerous firms that back Bitcoin ETFs – such as Bitwise, BlackRock and Galaxy Digital – have been reported to have initiated the process to launch their own ether ETF.
Ether’s value saw a modest increase following a 20% climb earlier in the week in anticipation of the SEC’s ruling. However, some investors might be holding back, considering the SEC’s approval of the rule change doesn’t ensure the launch of all proposed funds.
Bitcoin halving, which happens roughly every four years, cuts the rate of new Bitcoin creation by half. This event is tied to the method of recording and generating Bitcoins. Transactions are logged on a blockchain, a ledger accessible to all.
Miners compile transactions into blocks and connect them by resolving cryptographic challenges, earning new bitcoins as their reward.
Satoshi Nakamoto, the enigmatic creator of Bitcoin, designed the cryptocurrency to have a maximum circulation of 21 million coins. To ensure this, the Bitcoin protocol halves the reward given to miners every 210,000 blocks, an event that occurs approximately every four years.
The latest Bitcoin halving took place in the early hours of Saturday 20th April 2024, reducing the reward for adding a new block of transactions to the blockchain from 6.25 Bitcoins to 3.125. Bitcoin’s halving will persist until the total supply approaches the 21 million cap, anticipated around the year 2140.
The halving of Bitcoin reduces the number of new coins entering circulation, which, in theory, could drive up the price if demand remains constant.
According to economic principles, a stable demand coupled with a reduced supply should lead to a price increase.
Analysis of the three previous halvings (in 2012, 2016, and 2020) indicates an average price surge of 16% in the 60 days post-halving.
Typically, investors see the highest price increase approximately 500 days following a halving event.
Despite a recent drop from its peak, Bitcoin holds a high-level interest for crypto investors, even with its volatile behaviour. It has posted a 40% increase in 2024 compared to the same period last year.
In summary, the halving of Bitcoin reduces the availability of new coins, which could lead to an increase in value. However, the complete effects may only become apparent gradually over time.
Amid this volatility, the European Union’s securities watchdog, the European Securities and Markets Authority (ESMA), has sounded a cautionary note.
ESMA’s latest report highlights a considerable concern: the high level of concentration in crypto trading. A handful of exchanges, led by Binance, dominate the market. In fact, Binance alone accounts for more than half of all crypto trading activity. While this concentration might seem advantageous from an efficiency standpoint—thanks to economies of scale—it raises significant questions.
Imagine a scenario: Binance, Coinbase or any crypto platform for that matter experiences a catastrophic failure or malfunction. The repercussions would reverberate far beyond its platform.
The entire crypto ecosystem would feel the impact. Investors, traders, and enthusiasts would face disruptions, financial losses, and uncertainty. The interconnectedness of the crypto world amplifies the stakes.
ESMA’s concerns centre on systemic risk. When a single entity dominates a market, vulnerabilities emerge. What if Binance falters due to technical glitches, cyberattacks, or regulatory crackdowns? The fallout could destabilise other exchanges, trigger panic selling, and erode investor confidence. The crypto market, already prone to wild swings, would face heightened turbulence.
ESMA’s report underscores the need for vigilance. Regulatory bodies must strike a delicate balance: promoting innovation while safeguarding stability. Diversification across exchanges, robust risk management practices, and stress testing are essential. Additionally, fostering competition and encouraging new players can dilute concentration risk.
Crypto enthusiasts should heed ESMA’s warning. While the allure of rapid gains remains strong, prudent risk assessment is crucial. Investors must diversify their holdings, stay informed, and choose exchanges wisely. As the crypto landscape evolves, collaboration between regulators, industry players, and investors will shape its future.
In this high-stakes game, the EU watchdog’s message is clear: Tread carefully as you navigate the digital frontier.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research and consult professionals before making investment decisions
Remember to always do your own careful research or employ regulated financial advice.
He references the launch of the first U.S. Bitcoin exchange-traded fund (ETF) and the forthcoming Bitcoin halving event as key factors.
“The overall market capitalization of the cryptocurrency industry is expected to double by the end of this year, influenced by a range of macroeconomic factors,” Garlinghouse reportedly said.
He also considers the potential for favorable regulatory changes in the United States as another catalyst for the market’s growth.
Let’s check in on the prediction at the end of the year and see where the crypto market is.
The cryptocurrency went below $63000. Last week it climbed to a record $73679.
The move helped drag other cryptocurrencies lower. Ether lost more than 5% and was recently trading at $3,287.58 after topping $4,000 last week for – a drop some analysts predicted following the network’s *Dencun upgrade. The token tied to Solana fell 8%, Dogecoin lost 7% and XRP slipped 2%.
*Dencun introduces a scaling technology called proto-danksharding. This feature aims to drastically reduce transaction fees on Layer 2 (L2) rollups like Pontem’s SuperLumio, Optimism, and Arbitrum. By efficiently managing large data chunks, *proto-danksharding streamlines transaction processing, particularly for L2 solutions.
*Proto-Danksharding, also known as EIP-4844, is an intermediate step toward achieving a truly scalable Ethereum blockchain. Proto-Danksharding aims to make transactions on Layer 2 as cheap as possible for users and ultimately scale Ethereum to handle over 100,000 transactions per second. It serves as a precursor to full Danksharding.
In summary, Proto-Danksharding paves the way for more efficient and cost-effective Layer 2 solutions, enhancing Ethereum’s scalability and usability.
Bitcoin’s decline started last week when traders began to capitalize on profits following its approximately 70% surge from the beginning of the year to its peak last Wednesday. Data from CryptoQuant indicates a significant increase in investors liquidating their Bitcoin holdings for profit on 12th March 2024.
Moreover, the act of securing profits resulted in a surge of long position liquidations for leveraged Bitcoin investments. Centralised exchanges witnessed approximately $122 million in long position liquidations on Monday, as per analysis from Bitcoin exchanges.
The previous week saw nearly $372 million worth of long liquidations over the span of three days.
The introduction of spot Bitcoin ETFs in the U.S. earlier this year has significantly contributed to the rally of Bitcoin. This surge began even before the ETFs were officially launched, spurred by the anticipation of their regulatory approval. Concurrently, growing interest from investors and a higher demand for Bitcoin have led to increased leverage and amplified volatility.
Investors and analysts caution that traders ought to proceed with care in March due to the anticipated volatile price movements and a surge in trading volumes, which could result in a deviation from Bitcoin’s sustained upward trend.
Tread with extreme care – or DON’T TREAD AT ALL! Bitcoin is an extremely volatile asset and too unpredictable to trade for my liking.
This surge is attributed to a growing demand for new spot exchange-traded funds (ETFs), which have been approved for listing in the U.S. by some of the world’s largest financial firms.
The market for these ETFs is expected to reach $62 billion in the next two or three years. The cryptocurrency keeps surprising everyone with its value, which has grown to an amazing $1.42 trillion and is still rising… again!
Bitcoin moved off its all-time record shortly after achieving it.
Bitcoin jumped gain, edging ever closer to its all-time high after the rally took a breather over the weekend. Last week, Bitcoin surged $10,000 in the space of a couple of days.
It looks very much like the ETFs are kicking in during normal weekly trading moving Bitcoin other than just at weekends. The market also has an eye on the halving event due in April.
Bitcoin mining is the process of using computers to validate transactions and add them to the blockchain, a distributed ledger that records all Bitcoin activity. Miners compete to solve complex mathematical problems and the first one to find a valid solution gets the block reward, which is currently 6.25 Bitcoins per block.
The Bitcoin halving is coded into the Bitcoin protocol by its perceived creator, Satoshi Nakamoto, as a way to control the total supply of Bitcoin and make it scarcer and more valuable.
There can only be 21 million Bitcoins in existence, and the halving ensures that the last Bitcoin will be mined around the year 2140.
The Bitcoin halving has implications for the Bitcoin network and the price of Bitcoin. On one hand, the halving reduces the inflation rate of Bitcoin and increases its scarcity, which could lead to higher demand and upward pressure on the price.
On the other hand, the halving also reduces the profitability of mining and could cause some miners to exit the network, which could affect the security and stability of the network.
The Bitcoin halving is an important event for the Bitcoin community and the cryptocurrency industry, as it reflects the unique and innovative nature of Bitcoin as a digital and decentralized form of money.
The gains came on the back of MicroStrategy disclosing another large purchase of about 3000 Bitcoins for $155 million.
Analysts see a flow of funds into Bitcoin ETFs and the asset’s upcoming halving event as other bullish factors.
Bitcoin also broke through the 51000 level, marking the first time it has hit this value since December 2021.
The price rise continues a rally that began in January 2023. Bitcoin is up more than 21% in 2024 so far.
The Bitcoin ETF approval is a massive achievement for the crypto industry as a whole, which first attempted to launch a Bitcoin ETF some 10 years ago.
Grayscale’s big legal win against the SEC in August 2023 over the regulator’s refusal to let it convert its popular Bitcoin Trust (GBTC) into an ETF breathed fresh optimism into the idea.
Following the SEC’s decision, Bitcoin’s value fell then gained some traction, as expected by traders. However, the volume of inflows into the new funds remains to be seen, Bitcoin ETFs are still widely expected to increase demand for the cryptocurrency and drive Bitcoin higher.
It would be unwise to make too much of these Bitcoin price moves in the short-term, but the approval is likely going to lead to some longer-term price increases. Now that the bitcoin ETF speculation has come to fruition it looks like traders may rotate to alternative cryptocurrencies such as Ether to prepare for future market developments.
The SEC is due to give decisions on spot ETH ETF applications beginning in May 2024. BlackRock, Invesco and Ark Invest are among the firms in line for approval, as well as Grayscale.
The opportunity to be in at the beginning will not want to be missed by these companies.
It has approved what are known as ‘spot’ Bitcoin Exchange-Traded Funds (ETFs), which can be purchased by anyone from pension funds to retail investors. This now means that some of the biggest asset managers in the world, including BlackRock and Fidelity can trade a crypto related ETF.
Now, instead of using a crypto asset exchange such as Binance, Coinbase or Kraken to purchase and hold a token like Bitcoin, traders can now trade a ‘spot’ Bitcoin ETF for direct exposure to the digital asset market.
It may also mean that investors could pay lower fees than they would if they bought the digital currency from a crypto exchange directly.
Basically, it is now cheaper than ever to buy Bitcoin – but is this positive for the long-term?
A Bitcoin ETF allows investors to buy a product that tracks the price of Bitcoin through the same method they already use to buy stocks and other existing products. This also reduces additional worry of managing their crypto related holdings, which typically involves maintaining a cryptocurrency wallet and a safe storage system to safeguard that investment.
ETFs are holdings or portfolios that allow investors to ‘bet’ on multiple assets, without having to buy any themselves. Traded on stock exchanges like shares, their value depends on how the overall portfolio performs in real time.
An ETF could comprise a combination of gold and silver bullion, for example, or a mixture of shares in both big technology and energy companies. Some ETFs already contain Bitcoin indirectly – but a spot Bitcoin ETF will buy the cryptocurrency directly, ‘on the spot’, at its current live price, throughout the trading day.
Based on an idea by someone called, Satoshi Nakamoto, Bitcoin was the first cryptocurrency and remains the most valuable and famous to-date. Its price is often seen as a barometer for the whole industry of thousands of other coins (altcoins), tokens and products built on the same blockchain technology.
And with an influx of new money, many expect a surge in interest in cryptocurrency technology in general.
Some say this decision shows the existing ‘old financial school’ establishment is finally taking Bitcoin seriously, at least as a speculative asset. For those who consider Bitcoin legitimate ‘digital gold’, what better proof could there be than the biggest wealth-management institutions flocking to buy, and now overseen by regulators?
Others say cryptocurrency is about rejecting traditional financial systems in favour of a decentralised, people-powered alternative. And investment bankers buying Bitcoin just to get rich on U.S. dollars is not what Satoshi Nakamoto had in mind.
But judging from the chatter on social media, the prevailing sentiment is expecting the new cash injection will make existing Bitcoin investors and owners rich.
The price of Bitcoin can change rapidly and often without warning or explanation – it is a volatile asset. So investors will need to be aware when investing in ETFs linked to a digital coin.
But ETFs are often sold as high-risk, high-reward products anyway. It is EXTREMELY high risk – don’t do it if you don’t understand it and even if you do, or think you do – BE CAREFUL! These products can rip the shirt off your back!
Another potential risk is cyber-crime. Bitcoin and other cryptocurrencies have been the subject of huge and costly attacks that have seen crypto companies drained of sometimes hundreds of millions of dollars overnight. And if the likes of Blackrock become major holders of Bitcoin, their cyber-security will be tested in ways never before. Let’s hope their security systems are extremely robust.
Another downside is the heavy cost to the environment is that Bitcoin use a massive number of powerful computers around the world, to process transactions on the blockchain ledger and to create coins – this is known as mining.
Renewable energy use is growing – but it remains to be seen how investment companies will tackle the environmental cost of Bitcoin.
ETFs are here now – but BE CAREFUL when entering a Bitcoin related ETF trade or investment, or any type of ETF for that matter. If it goes wrong, you will lose your money, and quickly.
