Spot Bitcoin ETFs are approved but start with a hiccup,
one stablecoin is going public
and Bitcoin lifts off toward the moon,
only to get lost in space?!
These stories and more, this week in crypto.
Hi, I’m Nate Martin from 99Bitcoins.com,
and here’s what’s happened this week in crypto.
On Wednesday,
The US SEC finally approved 11 spot Bitcoin ETFs
in a process that began in 2013
when the Winklevoss twins first sought approval.
Trading volumes exceeded $4bn
across the New York Stock Exchange,
Nasdaq and CBOE on the first trading day.
Grayscale’s bitcoin ETF accounted for half of that volume
with $1bn of it coming in the first hour after markets opened.
BlackRock’s iShares bitcoin ETF claimed the bulk of the other half
with its first day trading of $1bn.
A day before the approvals were announced,
a fake tweet resulting from a hack of the SEC's X account
stated that all Bitcoin ETFs had been approved,
causing upheaval in crypto markets.
The account was hacked through an associated phone number,
and was possible because the account wasn’t utilizing
two-factor authentication.
The post was quickly exposed as a fraud,
but not before leading to $90 million in Bitcoin liquidations.
After the first ETFs began trading in the US,
Bitcoin briefly topped $49,000 for the first time since December 2021.
Next day however, Bitcoin’s price dropped below $42,000,
plunging nearly 10%,
as the euphoria over ETF approvals gave way to a ‘sell the news’ rout.
SEC Chair Gary Gensler indicated
that the ETF approvals were granted reluctantly,
emphasizing that the decision does not reflect
the commission’s endorsement of Bitcoin itself.
Gensler said that last year’s Grayscale court decision
forced the commission’s hand,
but it doesn't signal support for Bitcoin
or any other crypto asset;
a category that he still views as speculative and volatile.
Circle, the creator of stablecoin USDC,
has filed for an initial public offering,
to take the company public.
The IPO is expected to take place
after the SEC completes its review process.
With a $25 billion market cap,
USDC holds the spot
as the second-largest stablecoin after Tether,
which boasts a market cap of $95 billion.
In an Ask-Me-Anything session,
Ethereum co-founder Vitalik Buterin recommended
a modest 33% increase in the gas limit
to boost network capacity and reduce user expenses.
However, the proposal comes with some risks,
as larger blocks may lead to increased energy consumption,
raising the potential for chain splits
and abandoned blocks.
Social media platform X
has discontinued its NFT profile picture service
that allowed subscribers to use Ethereum-based NFTs
as profile images.
Previously known as Twitter,
X embraced NFTs and bitcoin tipping
in September 2021,
expanding its NFT offerings by October of the following year
with "NFT Tweet Tiles."
The Peregrine 1 space mission recently took off
carrying a Bitcoin genesis block commemorative plaque,
and a special Bitcoin token engraved with a private key for 1 BTC.
The mission?
To place those items on the surface of the moon,
as a symbol that Bitcoin highlights remarkable progress
in terms of technological advancement.
Unfortunately, it seems there's a problem
with the rocket's propulsion system,
making it uncertain as to whether Bitcoin will ever reach the Moon safely.
That’s what’s happened this week in crypto,
see you next week.