News Desk

Ether futures exchange-traded funds (ETFs) are on the brink of debuting in the United States, potentially commencing trading as early as next week, as Bloomberg analysts have recently suggested.

On September 28, James Seyffart, an analyst from Bloomberg Intelligence, hinted at the possibility of the U.S. Securities and Exchange Commission (SEC) greenlighting a slew of Ethereum futures ETFs, stating that “it’s looking like the SEC is gonna let a bunch of Ethereum futures ETFs go next week potentially.”

This development comes on the heels of statements made by Eric Balchunas, a fellow ETF analyst, who suggested that the SEC is inclined to expedite the launch of Ether futures ETFs and clear its regulatory pipeline before a looming government shutdown, set to occur if Congress fails to agree on fiscal year funding by October 1.

Currently, there are 15 Ether futures ETFs from nine different issuers awaiting approval by the SEC, including prominent names like VanEck, ProShares, Grayscale, Volatility Shares, Bitwise, Direxion, and Roundhill.

Bloomberg analysts, assessing the situation, have given Ether futures ETFs a 90% probability of launching in October, with Valkyrie’s Bitcoin futures product anticipated to be the first to offer Ether exposure starting on October 3.

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However, the analysts also caution that not all of the proposed ETFs may see the light of day.

This development follows earlier reports in August that speculated on the approval of Ether futures ETFs in October, resulting in an 11% surge in ETH prices at the time.

As of the time of writing, ETH prices have witnessed a more modest 1% increase, hovering just above $1,600.

It’s worth noting that while the anticipation surrounding crypto futures products is palpable, they do not generate the same level of excitement as their spot-based counterparts.

The U.S. has already seen the introduction of Bitcoin futures ETFs since 2021, solidifying the presence of crypto-based financial instruments in the traditional financial landscape.

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On September 27th, Marco Ochoa entered a guilty plea in the United States District Court for the Southern District of New York, admitting to one count of conspiracy to commit wire fraud.

This plea marked a significant development in the case related to the Ponzi scheme orchestrated by IcomTech, a company of which Ochoa served as CEO from its establishment in 2018 until 2019.

The U.S. Department of Justice released a statement outlining the fraudulent activities of IcomTech. The company had promised its investors daily returns on various investment products, masquerading as a crypto mining and trading entity.

To lure in unsuspecting victims, promoters organized extravagant expos and community events worldwide. Additionally, IcomTech introduced its proprietary token, known as the “Icom.”

However, investigations revealed that the company never engaged in cryptocurrency mining as advertised.

Investors found themselves unable to withdraw the profits supposedly accruing in their accounts, leading to the inevitable collapse of IcomTech in late 2019.

In November 2022, charges were filed against Marco Ochoa and other high-ranking IcomTech executives.

Ochoa now faces a potential maximum sentence of 20 years in prison. U.S. Attorney Damian Williams emphasized the significance of Ochoa’s guilty plea, sending a clear message that cryptocurrency fraudsters would face legal consequences.

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Remarkably, Ochoa’s plea followed closely on the heels of another high-profile case in the Southern District of New York.

Pablo Rodriguez, co-founder of the AirBit Club Ponzi scheme, received a 12-year prison sentence from a separate judge, underscoring the increasing crackdown on cryptocurrency-related fraudulent activities.

In another related development on the same day, the Commodity Futures Trading Commission (CFTC) announced charges against Mosaic Exchange and its CEO, Sean Michael.

Mosaic Exchange allegedly enticed investors to permit the company to engage in cryptocurrency futures, swaps, and leveraged spot transactions on their behalf.

CFTC Commissioner Kristin Johnson expressed concern about the unregulated nature of these novel market structures.

Mosaic Exchange had executed digital asset derivatives trading on platforms like BitMEX and Binance, both of which had previously faced CFTC charges related to their failure to register as futures commission merchants, swap execution facilities, or designated contract markets, as well as their inadequate anti-money laundering and know-your-customer procedures.

Commissioner Johnson asserted the need for the CFTC to introduce regulations addressing gaps in these emerging markets, reflecting the ongoing efforts to safeguard investors and maintain the integrity of cryptocurrency trading.

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Hypothekarbank Lenzburg, a regional Swiss bank boasting assets exceeding $7 billion, has recently made headlines by becoming the sixth Swiss financial institution to join the Six Digital Exchange (SDX), according to a press release issued on September 27.

This strategic move aligns Hypothekarbank Lenzburg with other prominent Swiss banks, including Berner Kantonalbank, Credit Suisse, Kaiser Partner Privatbank, UBS, and Zürcher Kantonalbank, all of which are based in Switzerland. The parent company, Six Group, is headquartered in Zurich.

The key feature of this collaboration is Hypothekarbank Lenzburg’s integration into SDX’s central securities depository, granting the bank access to a revolutionary blockchain-based platform.

This platform enables the trading of various digital securities, encompassing digital bonds and digital equities.

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Marianne Wildi, the CEO of Hypothekarbank Lenzburg, expressed her enthusiasm for this development, stating, “The SDX membership marks a significant step in advancing our bank’s presence in digital assets.

Beyond token issuance and custody, our offering should include the possibility of listing digital value rights on a trusted trading venue.”

Switzerland has emerged as a global leader in cryptocurrency adoption, largely driven by its supportive regulatory environment.

In April, PostBank, a retail bank owned entirely by the Swiss government, formed a strategic partnership with the digital asset bank Sygnum, offering customers a comprehensive range of regulated digital asset banking services.

Furthermore, in May, Swiss Post introduced an innovative crypto stamp iteration, integrating physical and non-fungible token versions with cutting-edge artificial intelligence technology.

In sum, Hypothekarbank Lenzburg’s decision to join SDX underscores Switzerland’s commitment to fostering innovation in the digital asset space.

With the nation’s proactive regulatory framework and a growing ecosystem of blockchain-related initiatives, Switzerland is cementing its position as a global hub for the future of finance, poised to drive further adoption of digital assets and blockchain technology.

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Binance, the prominent cryptocurrency exchange, has officially announced its complete withdrawal from the Russian market by selling its operations to a newly established crypto exchange known as CommEX.

In a statement to Cointelegraph on September 27, Binance disclosed its agreement to transfer its entire Russian business to CommEX, though the financial specifics of the deal were not disclosed.

To ensure a seamless transition for existing Russian users, the off-boarding process is expected to span a year, with Binance assuring that all assets of its Russian user base remain safe and secure.

Noah Perlman, Binance’s Chief Compliance Officer, acknowledged that Russia was no longer compatible with Binance’s compliance strategy, expressing confidence in the continued growth of the global Web3 industry.

Binance has vowed to collaborate with CommEX to facilitate the migration of user assets, offering guidance on how to transfer them to the new exchange.

Russian users who have completed Know Your Customer checks will be the first to transition to CommEX, while Binance will gradually phase out its platform in Russia over the coming months, prioritizing a smooth user experience throughout the transition.

Furthermore, Binance CEO Changpeng Zhao assured Binance Coin (BNB) holders that they will retain their 25% trading discount on CommEX.

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In a notable departure from standard business practices, Binance clarified that it would sever all ties with Russia and not retain any ongoing revenue share or the option to repurchase shares in CommEX.

This development coincides with CommEX’s launch on September 26, as it aspires to provide a range of cryptocurrency trading services, encompassing spot, futures, and peer-to-peer trading.

Initially targeting Russian users, the platform is currently available in Russian and English only.

Binance had been contemplating its exit from the Russian market for some time, primarily due to mounting regulatory challenges associated with adhering to Western sanctions against Russia.

Despite this regulatory pressure, as of August 2023, Binance was still promoting its services to Russian users.

However, by early September, the exchange’s top Russian executives had departed.

It is worth noting that Russia was a significant market for Binance, accounting for 6.9% of total visits to the Binance.com website, according to SimilarWeb data, underscoring the significance of this strategic withdrawal from the Russian market for the exchange.

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U.S. District Judge Lewis Kaplan has issued a significant ruling allowing prosecutors from the United States Department of Justice (DOJ) to present evidence related to Sam Bankman-Fried’s political donations in his upcoming fraud trial.

The decision, part of a 16-page pretrial order issued on September 26, sheds light on what evidence will be admissible during the trial, slated to commence on October 3.

Initially, federal prosecutors had charged Bankman-Fried with various offenses, including conspiring to violate U.S. campaign finance laws, alongside seven other fraud and conspiracy charges.

However, these campaign finance charges were dropped as part of an extradition agreement with the Bahamas.

Judge Kaplan justified the inclusion of evidence pertaining to Bankman-Fried’s political contributions by stating, “Evidence that the defendant spent FTX customer funds on political contributions is direct evidence of the wire fraud scheme because it is relevant to establishing the defendant’s motive and allegedly fraudulent intent.”

Furthermore, the judge granted the prosecution’s request to introduce evidence detailing Bankman-Fried’s alleged involvement in creating the FTX Token and his purported instructions to manipulate the token’s price through Alameda Research, then led by CEO Caroline Ellison.

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Kaplan reasoned that the alleged manipulation of cryptocurrency tokens, impacting Alameda’s financials, was an integral part of the alleged conspiracy, making it admissible.

Kaplan emphasized that Bankman-Fried’s alleged instructions to Ms. Ellison were indicative of a “relationship of mutual trust” and that the evidentiary value outweighed concerns of unfair prejudice.

Notably, while allowing certain evidence for the DOJ, Kaplan also permitted Bankman-Fried’s defense team to question government witnesses, including Ellison, former FTX engineer Nishad Singh, and FTX co-founder Gary Wang, about their recreational drug use, provided they informed the court in advance.

Kaplan rejected DOJ motions to restrict the defense’s cross-examination of witnesses on privileged matters and ruled against Bankman-Fried discussing details of his pre-trial detention, family background, wealth, or age before the jury.

In this complex legal battle, the admissibility of evidence surrounding political donations and cryptocurrency manipulation adds a new dimension to the forthcoming trial of Sam Bankman-Fried, a high-profile figure in the cryptocurrency industry.

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In anticipation of Taiwan’s forthcoming crypto regulation framework scheduled for release in September, the nation’s digital asset platforms have joined forces to establish an industry association.

The Taiwan Virtual Asset Platform and Transaction Business Association, comprising its founding members MaiCoin Group, BitoGroup, and Ace Exchange, emerged from a preparatory group formed in early September.

Legally, the initiative is set to take effect in October, pending the government’s issuance of the crypto framework.

The preparatory group currently boasts representation from nine crypto exchanges.

Alongside the aforementioned trio, it includes BitstreetX, Hoya Bit, Bitgin, Rybit, Xrex, and Shangbito, showcasing a collective effort to shape Taiwan’s crypto landscape.

The primary objective of the association is to champion the interests of the crypto industry. It aims to serve as a representative body for various entities, including exchanges, peer-to-peer trading platforms, financial investment platforms, wallet hosting companies, and other crypto-related businesses.

Wang Chenhuan, President of Ace Exchange, emphasized the association’s role, stating, “The association is a family and a beacon.

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“It guides us in the direction, collects information, sets standards, builds consensus, speaks on our behalf, and leads us to further progress.”

In early September, the Financial Supervisory Commission of Taiwan crafted a draft featuring ten guiding principles for the regulation of digital currencies within the country.

While the document had yet to be made public, local media sources indicated that one of the principles revolves around the prohibition of foreign virtual asset service providers from engaging in illegal solicitation of business activities within Taiwan.

Interestingly, in August, Binance, the world’s leading crypto exchange by trading volume, submitted an application for registration in Taiwan.

The exchange had already been conducting operations in the country through a local entity known as Binance International Limited Taiwan Branch (Seychelles), demonstrating the growing interest of major players in Taiwan’s evolving crypto landscape.

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On September 22, the Dollar Strength Index (DXY) reached its highest point in nearly a decade, signaling a growing favor for the United States dollar compared to other fiat currencies like the British pound, euro, Japanese yen, and Swiss franc.

This surge in demand, however, has left investors pondering its potential impact on Bitcoin and cryptocurrencies, although the connections between the two remain somewhat tenuous.

The DXY made headlines by confirming a golden cross pattern, where the 50-day moving average surpassed the longer 200-day moving average.

This technical signal is often interpreted as a precursor to a bullish market.

Remarkably, the U.S. dollar exhibited strength in September despite concerns about inflation and economic growth in the world’s largest economy.

Expectations for U.S. GDP growth in 2024 sit at a modest 1.3%, significantly lower than the four-year average of 2.4%. This slowdown is attributed to factors such as tighter monetary policy, rising interest rates, and diminishing fiscal stimulus.

However, not all increases in the DXY reflect unwavering confidence in the U.S. Federal Reserve’s economic policies.

When investors opt to sell U.S. Treasurys and hold onto cash, it suggests potential recession or heightened inflation.

The current 3.7% inflation rate has dampened the appeal of a 4.4% yield, driving investors to demand a 4.62% annual return on five-year U.S. Treasurys as of September 19, marking a 12-year high.

Surprisingly, investors are choosing cash over government bonds, a counterintuitive move that aligns with the strategy of waiting for more favorable entry points.

They anticipate the Fed’s continued interest rate hikes to secure higher future yields.

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The relationship between a stronger DXY and reduced demand for Bitcoin may not be straightforward.

While there’s a decreased appetite for risk-on assets, exemplified by the S&P 500’s 4.3% September decline, investors are aware that hoarding cash doesn’t guarantee stable purchasing power.

The government’s ongoing debt ceiling increases risk dilution, diminishing nominal returns due to the expanding money supply.

This explains why assets like Bitcoin and select tech companies might thrive during an economic slowdown.

If the S&P 500’s downtrend persists, investors may initially flee risk markets, potentially affecting Bitcoin negatively.

However, this analysis overlooks the fact that inflation and recession pressures are likely to increase the money supply, favoring Bitcoin as investors seek refuge against “stagflation” – stagnant growth amid rampant inflation.

In conclusion, the DXY’s golden cross may not necessarily spell doom for Bitcoin, especially when considering longer timeframes.

The cryptocurrency could continue to serve as a hedge against economic turbulence, even as traditional markets experience fluctuations.

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