U.S. Financial Services Committee seeks clarity on Meta’s crypto and blockchain ambitions https://coinmarket.news Tue, 23 Jan 2024 07:37:18 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 https://coinmarket.news/wp-content/uploads/2023/12/cropped-cmn_fav-32x32.png U.S. Financial Services Committee seeks clarity on Meta’s crypto and blockchain ambitions https://coinmarket.news 32 32 U.S. Financial Services Committee seeks clarity on Meta’s crypto and blockchain ambitions https://coinmarket.news/u-s-financial-services-committee-seeks-clarity-on-metas-crypto-and-blockchain-ambitions/ https://coinmarket.news/u-s-financial-services-committee-seeks-clarity-on-metas-crypto-and-blockchain-ambitions/#respond Tue, 23 Jan 2024 07:38:00 +0000 https://coinmarket.news/?p=6432 The U.S. House Financial Services Committee queries Meta on its crypto and blockchain ambitions, following trademark filings suggesting potential digital asset projects.

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The U.S. House Financial Services Committee is intensifying its scrutiny over Meta’s potential involvement in the cryptocurrency and blockchain sectors. This move comes in light of five trademark applications related to cryptocurrency and blockchain filed by Meta in 2022, which remain active.

In a letter dated Jan. 22, addressed to Meta’s founder and CEO Mark Zuckerberg and COO Javier Olivan, committee ranking member Maxine Waters highlighted the March 18, 2022, trademark filings. Waters pointed out that these applications suggest Meta might be planning to delve deeper into the digital assets ecosystem, contrary to its previous communications. On Oct. 12, 2023, Meta reportedly informed the Democratic Financial Services Committee staff that it had no ongoing digital asset projects.

This inquiry follows Meta’s decision to abandon its crypto stablecoin project, Diem (initially known as Libra), in mid-2019 due to legislative pressures. Diem was eventually sold to the now-defunct Silvergate Bank in January 2022 for $200 million. Additionally, Meta’s plans to release a digital wallet, Novi (previously Calibra), scheduled for 2020, have not materialized, with no new release date in sight.

The trademark filings in question cover a range of services in the crypto and blockchain sphere, including trading, exchange, payments, transfers, wallets, and related hardware and software infrastructure.

Each application has received a Notice of Allowance (NOA) from the U.S. Patent and Trademark Office, indicating that they meet the requirements for registration. Meta now faces deadlines to either affirm its intent to use the trademarks or request extensions. The earliest response deadline is Feb. 15, 2023, following the first NOA issued on Aug. 15, 2023.

In her letter, Waters seeks clarification from Meta on several points. These include how the company plans to respond to the NOAs, whether it intends to engage in any Web3, cryptocurrency, or digital wallet projects, the potential launch of a crypto payments platform, and any ongoing research into stablecoins or collaborations with stablecoin initiatives. She also inquired about Meta’s interest in adopting distributed ledger technology (DLT) and the possibility of incorporating crypto-related functionalities in its metaverse projects.

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Trezor alerts users to phishing attack affecting 66,000 customers https://coinmarket.news/trezor-alerts-users-to-phishing-attack-affecting-66000-customers/ https://coinmarket.news/trezor-alerts-users-to-phishing-attack-affecting-66000-customers/#respond Mon, 22 Jan 2024 16:08:04 +0000 https://coinmarket.news/?p=6424 Trezor warns 66,000 users of potential phishing risks following a breach of a third-party support portal, emphasizing device security remains intact.

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Trezor, a prominent hardware wallet manufacturer, has recently disclosed a security breach that compromised the contact details of approximately 66,000 users. This breach, announced on Jan. 20, stems from unauthorized access to a third-party support portal discovered on Jan. 17.

The company has acknowledged that users who engaged with Trezor’s support team since December 2021 may have been impacted by this breach. In light of this, Trezor has taken the initiative to email all potentially affected customers, alerting them to the risk of phishing attacks.

Trezor emphasized the safety of users’ funds, reassuring that the security of Trezor devices remains uncompromised. “Your Trezor device remains as secure today, as it was yesterday,” the company stated.

However, the breach did lead to direct phishing attempts. At least 41 users received targeted emails from the attacker, seeking sensitive information related to their recovery seeds. Additionally, eight individuals who registered on a trial discussion platform linked to the same third-party vendor had their contact information exposed.

Phishing, a prevalent form of cybercrime, involves attackers masquerading as trustworthy entities to extract sensitive information from victims. This method is commonly used to obtain login credentials, credit card numbers, and other personal data.

In this incident, Trezor confirmed that no recovery seed phrases were disclosed. The company also reported having promptly alerted users who received the phishing emails within an hour of detecting the incident. Trezor warned that the exposure of email addresses could lead to increased phishing attempts, though no significant spike in such activities has been observed following the incident.

This is not the first security issue faced by Trezor. The company has previously alerted users about similar phishing attacks, including one in March where scammers attempted to steal funds through a fake Trezor website. Another incident involved counterfeit Trezor hardware wallets being sold, potentially compromising users’ private keys.

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X debuts payments account, sparking crypto community speculation https://coinmarket.news/x-debuts-payments-account-sparking-crypto-community-speculation/ https://coinmarket.news/x-debuts-payments-account-sparking-crypto-community-speculation/#respond Mon, 22 Jan 2024 10:21:50 +0000 https://coinmarket.news/?p=6410 X's launch of a new payments account triggers speculation in the crypto community about potential cryptocurrency integration, fueled by Elon Musk's past crypto ventures.

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X (formerly known as Twitter) has recently launched a dedicated account for its upcoming payment feature, a development that has ignited considerable speculation in the cryptocurrency community. While the specifics of this new payment feature, slated for release in mid-2024, remain undisclosed, the crypto community is abuzz with conjectures regarding the potential inclusion of cryptocurrencies in the platform’s payment system.

The new account, marked by its verified gold badge and an X badge, signals X’s official foray into the realm of financial services. However, no posts or detailed announcements have been made on the account as of yet.

The crypto community’s excitement stems in part from Elon Musk’s history of integrating cryptocurrencies into his business ventures. For instance, Musk’s Tesla has incorporated Dogecoin (DOGE) for payments in its merchandise store. This precedent, along with Musk’s frequent social media mentions of DOGE, has led many to speculate that Dogecoin could be a likely candidate for X’s payment system if cryptocurrencies are to be included.

Crypto researcher Mason Versluis echoed this sentiment among his 169,000 followers on X, expressing excitement over the potential inclusion of cryptocurrencies, specifically those beginning with “X” such as XRP, Stellar (XLM), and XDC.

Similarly, other subtle hints and gestures from Musk and X have been closely analyzed by the crypto community, suggesting an interest in incorporating DOGE in future projects. In one instance, a meme posted by X in October 2023 featuring a dog answering a phone call stirred speculation among Dogecoin enthusiasts about its possible significance.

This speculative atmosphere is further fueled by changes in X’s approach to crypto-friendly content. Some content creators, like Tokenicer, have observed a perceived reduction in payments for crypto-related content on the platform, suggesting shifting priorities since Musk’s takeover.

With Musk’s vision of transforming X into a platform that could handle comprehensive financial transactions, the crypto community remains keenly attentive to any signs or announcements from X that could confirm the integration of cryptocurrencies into its upcoming payment feature.

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Terraform Labs seeks bankruptcy protection amid legal troubles https://coinmarket.news/terraform-labs-seeks-bankruptcy-protection-amid-legal-troubles/ https://coinmarket.news/terraform-labs-seeks-bankruptcy-protection-amid-legal-troubles/#respond Mon, 22 Jan 2024 09:07:08 +0000 https://coinmarket.news/?p=6408 Terraform Labs, the company behind TerraUSD, files for Chapter 11 bankruptcy in the U.S., amidst ongoing legal challenges and the aftermath of its stablecoin collapse.

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Terraform Labs, the organization behind the collapsed TerraUSD (UST) stablecoin, has filed for Chapter 11 bankruptcy protection in the United States. This development follows a tumultuous period for the firm and its co-founder Do Kwon.

In a recent legal filing on Jan. 21, Terraform Labs sought protection at the United States Bankruptcy Court for the District of Delaware. The filing indicates that the company estimates its liabilities and assets to be in the range of $100 million to $500 million.

Chris Amani, CEO of Terraform Labs, commented on the bankruptcy filing in a separate statement. He acknowledged the challenges faced by the Terra community and ecosystem, emphasizing the necessity of this action to address legal issues while continuing to work towards the ecosystem’s goals. Amani expressed confidence in the resilience and growth of the ecosystem despite past setbacks.

This bankruptcy filing occurred shortly after the U.S. Securities and Exchange Commission (SEC) agreed to delay Do Kwon’s fraud trial to March 25, following a request from his legal team for a postponement.

The downfall of Terraform Labs began in May 2022 with the collapse of its Terra ecosystem. Following the implosion, Kwon’s whereabouts became a subject of speculation until his arrest in Montenegro in March 2023 for using forged travel documents.

The SEC had previously charged Terraform Labs and Kwon in February 2023, accusing them of orchestrating a multi-billion dollar fraud involving the tokens UST and Terra (LUNA).

Currently, both the United States and South Korea are seeking Kwon’s extradition. Speculation is rife regarding the possibility of Kwon facing multiple sentences in both jurisdictions. If extradited to South Korea, Kwon potentially faces a 40-year jail term for the majority of the alleged crimes committed there.

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European Banking Authority expands AML oversight to include crypto https://coinmarket.news/european-banking-authority-expands-aml-oversight-to-include-crypto/ https://coinmarket.news/european-banking-authority-expands-aml-oversight-to-include-crypto/#respond Wed, 17 Jan 2024 07:12:39 +0000 https://coinmarket.news/?p=6400 The European Banking Authority expands AML and CTF guidelines to include the crypto sector, enhancing the EU's defenses against financial crimes in this rapidly evolving domain.

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The European Union has taken a significant step in bolstering its Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) efforts by extending these guidelines to encompass crypto asset service providers (CASPs) within the region. This move, announced by the European Banking Authority (EBA) on Jan. 16, is designed to strengthen the region’s defenses against financial crimes within the rapidly evolving crypto sector.

The EBA’s amended guidelines are geared towards helping CASPs assess and mitigate their risk exposure to financial crimes, which may arise from various aspects such as customer profiles, product offerings, delivery channels, and geographic operations. Additionally, the guidelines provide insights on tailoring financial crime prevention strategies, including the potential utilization of blockchain analytics tools. These measures are set to be implemented starting from Dec. 30.

This initiative by the EBA is viewed as a crucial advancement in the EU’s fight against financial crime, ensuring a unified approach across member states in monitoring and mitigating risks associated with money laundering and terrorist financing within the crypto industry.

The revised guidelines also include specific risks and directives for financial institutions that either hold cryptocurrencies or provide services to crypto firms. Among the key aspects that crypto companies are advised to consider are the risks linked to anonymity-enhancing features, self-hosted wallets, decentralized platforms, and products enabling transfers to and from such services.

This development follows the EU’s previous efforts in regulating the crypto space, including the finalization of the Transfer of Funds Regulation (ToFR), which oversees crypto transfers, and the comprehensive Markets in Crypto-Assets (MiCA) regulations. While MiCA’s investor protection measures are scheduled to take effect in December, EU member states have the option to implement an 18-month transitional period. During this time, CASPs can continue operating without a license, offering a grace period for compliance with the new regulatory framework.

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Binance launches publicly in Thailand, challenging Bitkub’s dominance https://coinmarket.news/binance-launches-publicly-in-thailand-challenging-bitkubs-dominance/ https://coinmarket.news/binance-launches-publicly-in-thailand-challenging-bitkubs-dominance/#respond Tue, 16 Jan 2024 07:20:32 +0000 https://coinmarket.news/?p=6393 Binance officially launches in Thailand, offering a comprehensive platform with Thai baht trading pairs, challenging Bitkub's dominant market position.

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Binance, a global leader in cryptocurrency exchange, has officially opened its doors to the general public in Thailand, marking a significant step in its expansion into the Thai market. This move introduces a new dynamic in Thailand’s crypto exchange landscape, which has been predominantly led by the Bangkok-based Bitkub.

As per a statement released on Jan. 16, Binance Thailand (Binance TH) will now be accessible to all eligible users. The platform is introducing a dedicated order book for trading pairs in Thai baht, along with seamless integration with local banking systems for easy deposit and withdrawal of the local currency.

A spokesperson from Binance told that, for now, the focus will be solely on spot trading, although the company harbors broader ambitions for Binance TH. These plans are being pursued in close coordination with Thai regulators, seeking necessary approvals for expanding their services.

This public launch follows Binance’s initial “invitation only” phase, which began two months after receiving the green light from Thailand’s Securities and Exchange Commission. The exchange had first announced its intentions to enter the Thai market in May 2023 and subsequently obtained a digital asset exchange and brokerage operator license from Thailand’s Ministry of Finance.

Binance TH is a joint venture between Binance Capital Management and Gulf Innova, a subsidiary of Thai energy conglomerate Gulf Energy.

Binance’s entry into Thailand poses a challenge to Bitkub, which currently holds approximately 77% of the local market share, with a daily volume of around $30 million. Bitkub’s most active trading pair involves the Thai baht and Tether.

The Thai crypto market also includes other players like Upbit, Bitazza, and Zipmex, though Zipmex halted trading in November due to regulatory issues.

Gulf Binance CEO Nirun Fuwattananukul emphasized the meticulous planning and regulatory collaboration involved in setting up Binance TH. Binance CEO Richard Teng expressed the company’s commitment to contributing to Thailand’s digital economy growth.

Notably, Binance TH requires a Thai National Digital ID for Know Your Customer procedures, making it inaccessible to foreign residents in Thailand.

The Thai government remains active in regulating the crypto space, with plans to tax overseas income from stock and crypto trading starting in January 2024. Moreover, Binance’s recent “themes for 2024” report points to significant areas of growth in the crypto sector, including Bitcoin ecosystem developments, AI integration, and increased institutional adoption.

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OpenAI unveils GPT Store for personalized AI monetization https://coinmarket.news/openai-unveils-gpt-store-for-personalized-ai-monetization/ https://coinmarket.news/openai-unveils-gpt-store-for-personalized-ai-monetization/#respond Fri, 12 Jan 2024 15:07:08 +0000 https://coinmarket.news/?p=6387 OpenAI launches GPT Store, a marketplace for custom AI applications, enabling creators to monetize their GPT innovations and offering diverse user applications.

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OpenAI, a leading AI company, has announced the introduction of a new marketplace for personalized generative pre-trained transformer (GPT) applications, known as the GPT Store. This platform is designed to enable creators of custom AI systems to monetize their innovations.

The announcement was made in a blog post on Wednesday, Jan 10, where OpenAI detailed its plans to launch a revenue program for GPT builders in the first quarter of 2024. Initially, this program will be open to U.S. builders, who will earn based on the engagement their GPTs receive from users. The GPT Store will first be accessible to users subscribed to the paid ChatGPT plans.

Located within the ChatGPT website, the GPT Store serves as a hub where users can find and develop GPTs tailored for specific tasks, ranging from educational purposes to creative design. The marketplace is organized into various sections, including top picks, Dall-E, writing, productivity, research and analysis, programming, education, and lifestyle.

Each section caters to different needs: Dall-E focuses on generating images from textual ideas; writing aids in text refinement; productivity boosts efficiency in tasks; research and analysis GPTs assist in interpreting data; programming GPTs support coding endeavors; education GPTs facilitate learning; and the lifestyle section offers tips across various domains like travel and fitness.

To use certain GPTs like WebGPT, users are required to sign up for ChatGPT Plus. The concept of the GPT Store was first introduced by OpenAI, backed by Microsoft, at its inaugural developer conference in November 2023, with an initial plan to launch the store later that month.

However, as reported by Reuters, the launch was postponed to December 2023 as OpenAI sought to refine its GPTs based on user feedback. This postponement coincided with the brief removal and subsequent reinstatement of OpenAI CEO Sam Altman, following concerns raised by employees.

Additionally, on Jan. 10, OpenAI announced ChatGPT Team, a new paid subscription designed specifically for corporate users. Priced between $25 to $30 per user per month, ChatGPT Team offers private, work-focused usage while ensuring data segregation for enhanced confidentiality.

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Coinbase and Yellow Card join forces to enhance crypto access in Africa https://coinmarket.news/coinbase-and-yellow-card-join-forces-to-enhance-crypto-access-in-africa/ https://coinmarket.news/coinbase-and-yellow-card-join-forces-to-enhance-crypto-access-in-africa/#respond Fri, 12 Jan 2024 14:22:12 +0000 https://coinmarket.news/?p=6374 Coinbase partners with African fintech Yellow Card to enhance crypto access in 20 African countries, focusing on USD Coin (USDC) and improving fiat-crypto conversions.

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Coinbase, a leading global cryptocurrency exchange, has announced a strategic partnership with Yellow Card, an African crypto fintech company, aimed at expanding the availability of its services across 20 African countries, with a particular focus on enhancing access to the USD Coin (USDC) stablecoin.

On Jan. 11, Coinbase revealed that this collaboration will facilitate a more streamlined process for its African customers to convert between fiat currency and cryptocurrencies, including USDC. The partnership involves integrating Yellow Card’s payment infrastructure within Africa into Coinbase’s system, allowing users to seamlessly transition between fiat and digital assets.

As per Yellow Card CEO Chris Maurice, the integration will enable African users to effectively use Coinbase Wallet for on-ramping and off-ramping fiat to Bitcoin and USDC on Ethereum’s layer-2 rollup, Base. This feature will be accessible via the Coinbase Wallet, which recently added a function allowing transfers through links on various social media platforms like iMessage, Telegram, WhatsApp, Facebook, and Instagram.

Maurice also indicated that along with USDC, other cryptocurrencies and stablecoins supported by Coinbase would be integrated into the service.

Yellow Card operates in 20 African nations, including Nigeria, South Africa, Botswana, Ghana, Kenya, and Tanzania. Coinbase highlighted the significant potential of this partnership in regions plagued by high inflation and heavy reliance on remittances, offering a more economically viable transaction method.

Coinbase emphasized the youthful demographics of the African continent and the need for economic opportunities in these regions, asserting that Africa is “by far” the youngest continent.

Maurice expressed confidence that this partnership would facilitate easier commerce across the continent. He emphasized the practicality of stablecoins like USDC in addressing real challenges faced by individuals and businesses in Africa.

In a region where common crypto use cases include international payments, remittance, and protection against inflation, this partnership between Coinbase and Yellow Card is seen as a significant step in leveraging cryptocurrency to overcome banking and currency challenges in Africa.

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Circle prepares for IPO in the U.S. https://coinmarket.news/circle-prepares-for-ipo-in-the-u-s/ https://coinmarket.news/circle-prepares-for-ipo-in-the-u-s/#respond Thu, 11 Jan 2024 15:24:30 +0000 https://coinmarket.news/?p=6368 Circle Internet Financial, issuer of USD Coin, confidentially files for an IPO in the U.S., signaling a major step in bridging traditional finance with digital currency.

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Circle Internet Financial, the company behind USD Coin (USDC), the world’s second-largest stablecoin by market cap, has taken significant steps towards becoming a publicly traded entity. According to a recent report by Reuters on Jan. 11, Circle has confidentially filed for an initial public offering (IPO) in the United States.

While the details of the IPO, including the number of shares to be offered and their price range, remain undisclosed, this move marks a pivotal step in Circle’s journey towards public trading. The company anticipates that the IPO will move forward after the U.S. Securities and Exchange Commission (SEC) completes its review, though this is contingent on prevailing market conditions.

Circle’s path to an IPO began to take shape in 2021, with an initial announcement of a plan to go public via a merger with Concord Acquisition Corp. This deal, initially valued at $4.5 billion, later increased to an estimated $9 billion in 2022 but was ultimately terminated.

The possibility of Circle pursuing a direct IPO resurfaced in 2023, as per a Bloomberg report citing anonymous sources. These reports suggested that Circle was in discussions with advisors in preparation for a potential IPO. At that time, a spokesperson for Circle acknowledged that becoming a publicly listed company in the U.S. has been a long-term strategic goal, although they refrained from commenting on the speculation.

Circle is widely known for issuing USDC, a stablecoin pegged to the U.S. dollar. USDC has established itself as one of the leading stablecoins globally, boasting a market capitalization of $25 billion.

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SEC officially approves spot Bitcoin ETFs, following misleading tweet confusion https://coinmarket.news/sec-officially-approves-spot-bitcoin-etfs-following-misleading-tweet-confusion/ https://coinmarket.news/sec-officially-approves-spot-bitcoin-etfs-following-misleading-tweet-confusion/#respond Wed, 10 Jan 2024 22:05:43 +0000 https://coinmarket.news/?p=6343 SEC approves first regulated spot Bitcoin ETFs in the U.S., a major shift in cryptocurrency investment options, after initial confusion from a misleading tweet.

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The U.S. Securities and Exchange Commission (SEC) has finally approved the first regulated spot Bitcoin exchange-traded funds (ETFs) in the United States. This significant development comes just a day after a misleading tweet from the SEC’s official account caused market turmoil.

On Jan. 10, the SEC greenlit the 19b-4 applications from a slew of major financial players, including ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex, and Franklin Templeton. This move authorizes the listing and trading of spot Bitcoin ETFs on various exchanges. An initial posting of the filing on the SEC website was briefly replaced by an ‘Error 404’ message, before being made accessible again through an alternate link.

SEC decision approving Bitcoin ETFs. Source: U.S. SEC

This landmark decision marks the first time a regulated U.S. exchange-traded product will offer investors direct exposure to Bitcoin’s price, eliminating the need for direct purchase or self-custody of the cryptocurrency. Instead, investors can acquire shares in ETFs with Bitcoin as the underlying asset.

There was some confusion initially regarding the ‘Error 404’ message that appeared after the SEC’s approval of the 11 spot Bitcoin ETF filings. ETF analyst James Seyffart speculated on X (formerly Twitter) that this could have been either an accidental early release or a result of overwhelming site traffic. He anticipated that the document would be reposted regardless.

The journey to this approval has been a long one, stretching back to 2013 when Cameron and Tyler Winklevoss first sought to launch a Bitcoin ETF. Until now, the SEC had consistently rejected such proposals, citing concerns about market manipulation and fraud. However, the regulatory body revisited its stance following a successful legal challenge by Grayscale in August 2023, which led to the overturning of the SEC’s previous denial.

With the approval of spot Bitcoin ETFs, the financial industry is now keenly observing when these ETFs will commence trading. Estimates suggest significant inflows into these products, with Galaxy Research’s Alex Thorn predicting up to $14 billion in the first year and VanEck forecasting about $2.4 billion in the first quarter of 2024 alone.

These ETFs, which require the SEC’s approval of both the S-1 (or S-3) and 19b-4 forms, represent a crucial evolution in the cryptocurrency market. The recent filing amendments by ten issuers on Jan. 8, where they disclosed their intended fees, underscore the competitive landscape of this new investment product. BlackRock, the world’s largest asset manager, announced a fee of 0.2% until its fund reaches $5 billion in assets under management, with others like Bitwise, Ark 21Shares, and VanEck setting their fees slightly higher. Grayscale stands out with the highest fee rate at 1.5%.

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