Thomas Goldstein

Swiss Asset Manager Pando Asset Joins U.S. Bitcoin ETF Race as BlackRock Refines Model with SEC

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Swiss asset manager Pando Asset has thrown its hat into the competitive ring of the spot Bitcoin exchange-traded fund (ETF) race in the United States, surprising many with its unexpected entry.

On the same day, investment giant BlackRock engaged in discussions with the country’s securities regulator, presenting an updated ETF model based on the regulator’s feedback.

On November 29, Pando Asset submitted a Form S-1 to the U.S. Securities and Exchange Commission (SEC), the document used to register securities with the agency, outlining its Pando Asset Spot Bitcoin Trust.

Similar to other ETF proposals, this trust intends to mirror Bitcoin’s price movements, with Coinbase’s custody arm responsible for safeguarding Bitcoin holdings on behalf of the trust.

Pando Asset joins a crowded field, becoming the 13th applicant seeking approval for a spot Bitcoin ETF in the U.S., competing with heavyweights like BlackRock, ARK Invest, and Grayscale.

READ MORE: Bitcoin Holds Strong at $38,000 Amid Speculation of Price Surges and Fed’s Powell Speech

In a November 29 post on X (formerly Twitter), Bloomberg ETF analyst Eric Balchunas expressed curiosity about Pando’s late filing, wondering why it emerged at this stage.

He also raised concerns about the potential implications if Pando’s ETF were to be approved alongside others on January 10, a date he and fellow Bloomberg ETF analyst James Seyffart have earmarked as a possible approval date.

This date coincides with the SEC’s deadline to either approve or deny ARK Invest’s application.

Seyffart, however, expressed doubts about Pando’s readiness to launch its ETF on the same day as others, acknowledging that unforeseen developments can occur in this space.

Meanwhile, the SEC held meetings with executives from BlackRock and Invesco on November 28 to discuss their respective ETF proposals, as revealed in agency documents.

BlackRock presented revisions to its redemption model, addressing concerns raised during a prior meeting regarding the impact on balance sheets and the risks faced by U.S. broker-dealers dealing with offshore crypto entities.

Balchunas clarified that BlackRock’s revised approach involves offshore entities acquiring Bitcoin from Coinbase and pre-paying U.S. registered broker-dealers in cash, as these broker-dealers cannot directly handle Bitcoin.

This strategy aligns with the SEC’s requirement for ETFs to have redemption models that place the responsibility on issuers to transact in Bitcoin, avoiding the need for broker-dealers to engage with unregistered subsidiaries or third-party firms for Bitcoin transactions.

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Save the Children’s Crypto Donation Campaign Surpasses $7.6 Million

A crypto donation campaign with a noble mission to enhance the lives of children across the globe has garnered an impressive total of over $7.6 million in contributions to date.

Notably, half of this substantial sum, amounting to $3.83 million, has been generously donated in the form of Ether (ETH), a prominent cryptocurrency in today’s digital landscape.

At the time of this report, the price of ETH was hovering at $2,026.

Despite this remarkable achievement, the philanthropic foundation spearheading the initiative, known as Save the Children’s HODL Hope Campaign, finds itself approximately $2.4 million short of its ambitious goal. Their aim is to amass a total of $10 million by the culmination of the year 2023.

Breaking down the donations, Bitcoin (BTC) commands a significant share, constituting 34% of the overall crypto contributions. This translates to slightly over $2.6 million in BTC donations.

USD Coin (USDC), a stablecoin pegged to the U.S. dollar and issued by Circle, emerges as the third most favored medium for contributing to this noble cause, accounting for approximately 7% of the total donations, which equates to nearly $520,000.

Conventional U.S. dollars made up a modest 2% of the donations, followed by major altcoins such as Bitcoin Cash, Tezos, ThunderCore, Tether, Litecoin, and Solana.

READ: Submit A Press Release to Yahoo Finance

Topping the charts on the donor leaderboard are the communities “Own The Doge (DOG)” and “PleasrDAO,” whose collective contribution of 291.16 ETH, exceeding $1 million, deserves special recognition.

However, it is important to note that many donors prefer to remain anonymous and thus do not feature on the leaderboard.

A substantial portion of the campaign’s funding, to the tune of approximately $3.9 million, originates from these anonymous donors, underscoring the privacy and security attributes inherent in cryptocurrency donations.

The seamless facilitation of cross-border fund transfers via cryptocurrencies has democratized participation in charitable endeavors aimed at addressing global challenges. This trend extends beyond the purview of Save the Children’s campaign.

Notably, the Singapore Red Cross has joined the digital revolution, forging a partnership with Triple-A to accept cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and USD Coin (USDC) for their humanitarian and community service initiatives.

Benjamin William, the Secretary-General and CEO of the Singapore Red Cross, lauds this move, stating that it welcomes a new segment of tech-savvy donors eager to leverage their digital assets for making a positive difference in the world.

In summary, the Save the Children’s HODL Hope Campaign exemplifies the growing influence and acceptance of cryptocurrency donations within the philanthropic sector, marking a significant stride toward harnessing digital assets for the betterment of global humanitarian causes.

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Bank for International Settlements Unveils Groundbreaking CBDC Privacy Protocols

The Bank for International Settlements (BIS) Innovation Hub has unveiled the culmination of its private central bank digital currency (CBDC) endeavor, Project Tourbillon, in its recently released 46-page report on November 29.

This initiative explores critical elements such as privacy, security, and scalability, all within the context of two prototypes designed by cryptography pioneer David Chaum: eCash 1.0 and eCash 2.0.

These prototypes introduce a promising prospect of payment anonymity for CBDC transactions.

Among the prototypes, eCash 1.0 offers “unconditional payer anonymity,” while eCash 2.0 boasts enhanced security features.

The report suggests that it is indeed plausible to implement a CBDC that ensures payer anonymity while concurrently addressing concerns related to illicit transactions.

Project Tourbillon accomplishes this by establishing complete consumer anonymity during transactions with merchants.

In this innovative scheme, a consumer making a CBDC payment to a merchant remains entirely anonymous to all parties involved, including the merchant, banks, and the central bank.

READ MORE: Submit A Press Release to Bloomberg

The merchant’s identity is only revealed to the payer and is subsequently disclosed to the merchant’s bank as part of the payment process.

Importantly, the central bank retains no access to personal payment data but maintains the capacity to monitor CBDC circulation at an aggregated level.

However, during the initial phase, all users are required to undergo a Know Your Customer procedure at a commercial bank to gain access to the CBDC, mirroring the existing financial system’s practices.

Furthermore, the responsibility for ensuring that transactions adhere to regulatory requirements, such as Anti-Money Laundering, Countering the Financing of Terrorism, and tax evasion laws, falls upon the merchant’s bank.

The report concludes that Tourbillon’s payment process seamlessly integrates with today’s payment landscape, leveraging established technologies like QR codes, proof-of-stake protocols, and existing account relationships between customers, merchants, banks, and central banks.

BIS has been at the forefront of driving global CBDC adoption, actively assisting the Swiss National Bank in the development of wholesale CBDCs and collaborating on joint platforms with central banks in countries like China, Hong Kong, Thailand, and the United Arab Emirates.

Additionally, BIS is engaged in a transaction tracker proof-of-concept project with the European Central Bank, emphasizing its pivotal role in shaping the future of digital currencies on a global scale.

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California Governor Advocates GenAI Education to Secure the State’s Economic Future

California Governor Gavin Newsom is emphasizing the need for individuals to stay at the forefront of the rapidly advancing field of generative artificial intelligence (GenAI) by acquiring new skills and familiarizing themselves with this emerging technology.

A recent report has underscored the importance of providing Californians with access to educational and training opportunities related to GenAI.

The report recommends that residents of California should be offered educational and training resources in GenAI to support the state’s government workforce and prepare for the evolving skills required in the GenAI-driven economy.

It envisions state agencies providing training programs for government employees to harness state-approved GenAI tools to achieve equitable outcomes.

This move is seen as essential in response to the significant employment impact predicted by recent reports on GenAI.

The report cites Goldman Sachs’ forecast, which suggests that GenAI could affect up to 300 million jobs worldwide, even though it holds the potential for substantial productivity gains.

In light of this, the state of California aims to take the lead in training and supporting its workforce, enabling them to actively participate in the AI economy and fostering demand for businesses to establish themselves and hire within the state.

READ MORE: Australian Tax Regulator’s Cryptocurrency Tax Guidance Leaves DeFi Users in the Dark

The report also emphasizes the importance of initiating GenAI education initiatives at higher education institutions and vocational schools.

By integrating GenAI education into these institutions, California aims to equip its workforce with the skills necessary to excel in this technology-driven landscape.

Recent reports have consistently highlighted the potential impact of AI on jobs in the global economy.

The Organisation for Economic Co-operation and Development (OECD) released a report on July 12, which identified the jobs most vulnerable to AI. According to the research, “high-skill, white-collar jobs” are particularly exposed to AI-driven automation.

Moreover, industries that demonstrate the most significant advancements in AI often involve “non-routine, cognitive tasks such as information organization, memorization, and perceptual speed.”

In conclusion, California, under Governor Gavin Newsom’s leadership, is taking proactive steps to prepare its workforce for the challenges and opportunities presented by GenAI.

By offering education and training programs and positioning itself as a hub for GenAI innovation, California aims to remain at the forefront of the AI revolution while ensuring equitable access to these emerging technologies.

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Hong Kong’s Hospital Authority Harnesses AI to Tackle Rising Superbug Threat

Hong Kong’s Hospital Authority is gearing up to confront a significant uptick in two formidable superbugs, vancomycin-resistant enterococci and Candida auris, through the power of artificial intelligence (AI).

Over the past three years, the prevalence of multidrug-resistant organisms, commonly referred to as superbugs, has seen a troubling rise on the island.

This surge can be attributed to the reallocation of resources aimed at combatting the COVID-19 pandemic.

Dr. Raymond Lai, the chief infection control officer at the Hospital Authority, explained that this shift in resources resulted in a shortage of isolation wards available for patients infected with MDROs.

He stated, “A significant number of isolation wards were allocated to Covid-19 patients, leaving fewer wards available for those infected with MDROs.”

Additionally, the COVID-19 pandemic led to a substantial increase in the prescription of broad-spectrum antibiotics, fostering the development of antibiotic resistance within these superbugs.

READ MORE: OpenAI’s CEO Turmoil Sparks Debate Over AI Regulation and Congressional Action

According to the authority, the antibiotic resistance rate of vancomycin-resistant enterococci surged from 0.22% in 2021 to 1.2% in 2023, with the number of patients carrying these microorganisms rising from fewer than 40 in 2021 to approximately 140 by late September 2023.

Candida auris, first discovered in Hong Kong in 2019, has also witnessed a spike in carriers, escalating from nearly 200 in 2020 to over 300 by October 31, 2023.

Dr. Lai cautioned that about 10% of individuals hosting this fungus could progress to invasive infections, posing a mortality risk ranging from 53% to 83.3%.

To address this pressing issue, the Hospital Authority is set to launch an AI pilot program in January 2024 at the Prince of Wales Hospital in Sha Tin and Princess Margaret Hospital in Kwai Chung.

The AI system will analyze clinical data to assess the necessity of prescribing antibiotics, initially focusing on a single popular type of antibiotic before expanding its scope to include eight other types and covering 17 public hospitals.

This initiative is not the first instance of AI being harnessed to combat antibiotic resistance.

In May 2023, researchers from the Massachusetts Institute of Technology and McMaster University employed AI to identify a new antibiotic capable of combating Acinetobacter baumannii, a bacteria responsible for numerous drug-resistant infections.

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Bitcoin Overtakes Ethereum in Daily Transaction Fees Amidst Ordinals Frenzy

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Bitcoin has taken the lead over Ethereum in terms of average daily transaction fees due to a recent surge in Ordinals-related activity on the Bitcoin network.

According to BitInfoChart data, as of November 20th, the average daily transaction fee for Bitcoin reached $10.34, while Ethereum’s fees averaged $8.43.

Bitcoin’s average daily trading fee hit a six-month high on November 16th, peaking at $18.67, while Ethereum’s fees reached $7.90.

This shift marks a significant change in the fee dynamics between the two cryptocurrencies over the past five days.

The sudden increase in Bitcoin transaction fees can be attributed to a growing interest in assets built on the Ordinals Protocol.

This protocol enables the creation of non-fungible token (NFT)-like assets and BRC-20 tokens on the Bitcoin blockchain.

After a period of relatively low activity between September 25th and October 23rd, Ordinals-based assets began to see a substantial uptick in late October, according to data from Dune Analytics.

READ MORE: Worldcoin (WLD) Faces Turbulence Amid Sam Altman’s Departure and CEO Replacement

Since October 24th, over six million Ordinal assets have been created, resulting in more than 800 BTC in fees, equivalent to approximately $30 million, being distributed across the network.

This surge in Ordinals-related activity gained momentum when ORDI, the second-largest BRC-20 token by market capitalization, was listed on Binance on November 7th.

The listing triggered increased buying activity for BRC-20 tokens, causing the price of the ORDI token to soar by more than 50% in a single day.

In addition to these developments, on November 17th, the Ordinals-based project Taproot Wizards announced a successful seed round, securing $7.5 million in funding.

This announcement further solidified the interest and investment in Ordinals-based assets and projects on the Bitcoin network.

As Bitcoin continues to outpace Ethereum in terms of transaction fees, it reflects the growing popularity and utility of Ordinals-based assets and the broader adoption of blockchain technology for creating and trading digital assets.

These developments highlight the dynamic nature of the cryptocurrency ecosystem and the constant evolution of its use cases and applications.

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Decentralized Exchange dYdX Implements New Risk Measures After $9 Million Insurance Fund Depletion

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Decentralized crypto exchange dYdX has taken significant steps to enhance risk management following the depletion of a $9 million insurance fund on November 17th, which was used to cover users’ losses.

This move comes in response to a targeted attack that caused the liquidation of nearly $38 million worth of positions due to a profitable trade on the YFI token.

In an announcement made on X (formerly Twitter), dYdX disclosed that it has raised margin requirements on several “less liquid markets,” impacting tokens such as Eos, 0x Protocol (ZRX), Aave, Algorand, Internet Computer, Monero, Tezos, Zcash, SushiSwap, THORChain, Synthetix Network Token, Enjin Coin, 1inch Network (1INCH), Celo, Yearn.finance, and Uma.

The founder of dYdX, Antonio Juliano, described the attack as a “targeted attack” on the exchange.

He explained that the individual behind the attack caused YFI’s open interest on dYdX to surge from $0.8 million to $67 million in just a few days.

This same individual had previously attempted to manipulate the SUSHI market on dYdX a few weeks earlier.

Despite increasing initial margin ratios for YFI, it proved insufficient to prevent the attack, as the actor managed to withdraw a significant amount of USDC just before the YFI price crash.

To mitigate similar risks in the future, dYdX has banned “highly profitable trading strategies” on its platform, using language reminiscent of Mango Markets’ exploiter Avraham Eisenberg during his $116 million attack in 2022.

READ MORE:Yearn.finance’s YFI Token Plummets 43% in Five Hours, Raising Exit Scam Concerns

The YFI token experienced a sharp decline of 43% within a few hours on November 17th, erasing over $300 million in market capitalization after a rapid 170% surge in November.

Nevertheless, over the past 30 days, the token still managed to gain more than 90%, trading at $9,190 at the time of writing.

Although the Yearn.finance team has not officially commented on the incident, there is no indication of them controlling the majority of the token supply.

Etherscan data shows that large centralized exchanges hold a significant portion of YFI tokens, dispelling initial concerns of a potential scam.

These developments mark a significant effort by dYdX to fortify its defenses and protect its users from similar incidents in the future.

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OpenAI Founder Sam Altman Ousted as Turmoil Escalates, Triggering Wave of Resignations

The ongoing upheaval at OpenAI has reached new heights with the sudden removal of its founder, Sam Altman, on November 17, causing a ripple effect throughout the artificial intelligence (AI) company.

In the wake of Altman’s ousting, three senior researchers have reportedly chosen to resign from their positions.

The decision to remove Altman from his role as CEO was officially announced in a blog post by OpenAI’s board of directors.

They cited Altman’s alleged lack of consistent transparency in his communications with the board as the primary reason for his removal, asserting that this hindered the board’s ability to fulfill its responsibilities.

Consequently, Mira Murati, the company’s chief technology officer, has assumed the role of interim CEO.

This significant change in leadership set off a chain reaction within OpenAI, resulting in key figures departing from the organization.

Co-founder and president Greg Brockman made his exit public mere hours after Altman’s removal.

Several senior staff members have also reportedly tendered their resignations, including Jakub Pachocki, the director of research; Aleksander Madry, the head of preparedness; and Szymon Sidor, a senior researcher.

Additionally, one employee, Alex Cohen, found himself laid off alongside Altman.

READ MORE:Sushi Partners with ZetaChain for Native Bitcoin Swaps Across 30 Blockchains

Cohen, responsible for preparing presentations for OpenAI’s board of directors, expressed his confusion over the situation, revealing that he received a cryptic text message from Sam Altman before his abrupt dismissal.

This unexpected turn of events has left many speculating about the future of OpenAI, with Cohen predicting that more employees may follow suit and seek new opportunities elsewhere.

The decision to remove Altman from his leadership role is believed to have arisen from disagreements with Ilya Sutskever, co-founder and chief scientist at OpenAI.

These disagreements appear to revolve around issues related to fundraising and the development of AI technologies.

As for Altman’s future endeavors, they remain uncertain in the wake of these recent developments.

Altman is also a founder of Tools for Humanity, a developer involved in the crypto project Worldcoin.

He has received invitations to join other projects, including one from Charles Hoskinson, the founder of Cardano, who has extended an offer for Altman to join the ecosystem’s decentralized large language model.

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US Financial Services Committee to Probe Illicit Activities in Cryptocurrency Ecosystem

The United States House of Representatives Financial Services Committee (FSC) has scheduled a crucial hearing for November 15th, aimed at delving into illicit activities within the cryptocurrency ecosystem.

Titled “Crypto Crime in Context: Breaking Down Illicit Activity in Digital Assets,” this hearing is expected to feature prominent figures from the crypto industry.

Among the notable witnesses set to participate in the hearing are Bill Hughes, senior counsel and director of global regulatory matters at Consensys, and Jonathan Levin, co-founder and chief strategy officer at Chainalysis.

They will be joined by Jane Khodarkovsky, a former federal officer and specialist in human trafficking finance.

The FSC has made it clear that their primary objective is to ensure that the digital asset ecosystem remains secure and impervious to exploitation by malicious actors.

The focus of the hearing will primarily revolve around discussions related to illicit activities, such as money laundering and terrorist financing, within the cryptocurrency space.

The FSC cited a Chainalysis report from January 2023, which highlighted that illicit cryptocurrency volumes had surged to all-time highs, coinciding with an increase in sanctions and hacking incidents.

Furthermore, the hearing will scrutinize the effectiveness of Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) measures enforced by crypto exchanges and decentralized finance providers. It aims to assess the adequacy of these measures in combating illegal activities.

READ MORE: Former FTX Executives Launch Backpack Exchange in Dubai

The role played by governing entities, including the Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC), and the Department of Justice (DOJ), will also come under the spotlight during this hearing.

In a related context, back in July, Representative Patrick McHenry, the chairman of the FSC, announced plans to draft legislation that would provide regulatory clarity for stablecoins designed for payment purposes.

This move seeks to address concerns surrounding the issuance and use of stablecoins.

Meanwhile, the Department of Justice (DOJ) has taken steps to bolster its efforts in combating cryptocurrency-related crimes.

It has decided to merge its Computer Crime and Intellectual Property Section with the National Cryptocurrency Enforcement Team to form a more robust unit specifically tasked with combating ransomware crimes.

This strategic move reflects the government’s commitment to tackling crypto-related criminal activities effectively.

In conclusion, the upcoming FSC hearing signifies the government’s proactive stance in addressing the challenges posed by illicit activities within the cryptocurrency space and ensuring the integrity of the digital asset ecosystem.

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ProShares Launches Short Ether Strategy ETF (SETH) for Cryptocurrency Investors

ProShares, a prominent issuer of exchange-traded funds (ETFs), has introduced a new financial product aimed at capitalizing on the fluctuating price of Ether, a leading cryptocurrency.

On November 2, the company unveiled the Short Ether Strategy ETF, which is set to commence trading on the New York Stock Exchange’s Arca platform, utilizing the ticker symbol SETH.

The Short Ether Strategy ETF, or SETH, is specifically designed to provide investors with a means of profiting from the inherent volatility in the price of Ether.

Much like ProShares’ other cryptocurrency-linked ETFs, SETH seeks to gain exposure to the cryptocurrency market by utilizing Ether futures contracts, as outlined in their official announcement.

ProShares CEO Michael Sapir emphasized the significance of this launch, stating that SETH addresses a persistent challenge for investors interested in taking a short position on Ether.

He noted that establishing such exposure can often be a burdensome and expensive endeavor.

With SETH’s launch, ProShares is facilitating accessibility to both profit opportunities during Ether’s price increases and declines, all within the framework of a traditional brokerage account.

SETH is the latest addition to ProShares’ expanding portfolio of ETFs linked to cryptocurrencies.

Notably, in October 2021, ProShares introduced the groundbreaking Bitcoin Strategy ETF, one of the earliest Bitcoin-linked ETFs to be offered in the United States.

READ MORE: Rising Institutional Demand Will Propel Bitcoin Price to $120,000 by Year’s End

Building on this success, the company later launched the Short Bitcoin Strategy ETF in June 2022, targeting investors interested in shorting Bitcoin following its decline below the $20,000 threshold.

In addition to SETH, ProShares offers various other crypto-related ETFs, including the ProShares Ether Strategy ETF, Bitcoin and Ether Market Cap Weight Strategy ETF, and Bitcoin & Ether Equal Weight Strategy ETF.

These diverse offerings enable investors to tailor their exposure to the cryptocurrency market according to their specific investment objectives and risk tolerances.

In summary, the introduction of the Short Ether Strategy ETF (SETH) by ProShares represents another significant step in the evolution of cryptocurrency investment opportunities in the traditional financial markets.

With the convenience of trading through traditional brokerage accounts, investors now have an accessible avenue to profit from Ether’s price movements, both upward and downward, in an increasingly dynamic digital asset landscape.

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