Bitcoin Depot, a leading cryptocurrency ATM company in the United States, has revealed its plans to go public after successfully closing a merger deal.
The merger, facilitated by fintech firm GSR II Meteora Acquisition Corporation, was approved by stockholders on June 30.
The deal, which was reported in August 2022, carried a price tag of $885 million and is expected to enable investors to access Bitcoin Depot on the Nasdaq exchange starting from July 3.
Brandon Mintz, the founder and CEO of Bitcoin Depot, stated that the merger was aimed at supporting various growth opportunities and fostering the widespread adoption of Bitcoin (BTC) in North America.
Investors will have the opportunity to trade Bitcoin Depot shares on the Nasdaq under the ticker symbols BTM and BTMWW for common stock and public warrants, respectively.
This announcement comes at a time when regulatory scrutiny of cryptocurrency firms in the United States is intensifying.
The Securities and Exchange Commission has recently filed lawsuits against major exchanges, such as Binance and Coinbase, accusing them of conducting unregistered securities offerings.
Despite this, investment vehicles that offer exposure to cryptocurrencies are gaining popularity. BlackRock, for instance, filed an application in June to list a Bitcoin exchange-traded fund, indicating growing interest in crypto-related investments.
Bitcoin Depot, established in 2016, has emerged as one of the largest crypto ATM companies in North America, boasting more than 9,130 locations, as stated on its website.
However, the crypto industry is not without its challenges. In May, Bitcoin of America, another ATM provider, announced the closure of its operations in Connecticut due to the state’s Department of Banking asserting that the company lacked the necessary licensing.
With its merger and subsequent public listing, Bitcoin Depot aims to capitalize on its strong market position and expand its operations further.
The company’s commitment to driving Bitcoin adoption aligns with the growing interest in cryptocurrencies and the increasing demand for accessible and user-friendly avenues to buy and sell digital assets.
As Bitcoin Depot makes its debut on the Nasdaq, it will be interesting to observe how this development shapes the landscape of the cryptocurrency industry in the United States.
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A member of the r/CryptoCurrency community, known as r/Vaginosis-Psychosis on Reddit, recently shared their bold investment strategy, claiming to have profited $19,500 or 25% by taking out three personal loans totaling $59,000 to purchase Bitcoin over the past 18 months.
As of now, they hold 2.65 BTC, valued at $80,400, and are optimistic about BTC reaching $100,000 by early 2025.
In a post on June 30 on r/CryptoCurrency, the Redditor explained their approach to acquiring BTC through these risky loans.
The first two loans, acquired in February and June 2022, amounted to $15,000 and $20,000, respectively.
These loans carried fixed annual percentage rates (APR) of 6% and 4.9% with monthly payments of $225 and $326.
The third loan, obtained in June 2023, was worth $24,000 with a fixed APR of 8% and monthly payments of $405.
According to the Redditor, they have already paid off the $15,000 loan in May and made a $3,500 payment on the second loan.
Their plan is to focus on repaying the most recent loan due to its higher APR. Including interest paid, their average acquisition cost for BTC is around $24,000 or $22,264 without considering interest.
The Redditor justifies their investment strategy by highlighting their belief in the declining value of the US dollar.
They aim to repay the loans using the potentially inflated dollars they earn from their job.
Expressing confidence in Bitcoin’s future, they anticipate its price to reach approximately $100,000 per coin within 18 months.
With over 500 comments on the post, opinions are divided. While some express support for the idea, others caution against the risks associated with this approach.
One top comment with 457 upvotes argues that taking out loans for crypto investing is a horror story, citing survivorship bias and emphasizing the calculated nature of the Redditor’s risk.
The Redditor provides additional context, revealing that they are single with no dependents and earn an annual income of around $60,000.
They have affordable rental arrangements and are willing to invest 25–30% of their income into BTC each month.
The main risks they face include a significant crash in BTC price without recovery in the coming years and the potential loss of holdings due to hacking if they keep their assets in a hot wallet.
Sustaining employment is crucial for them to continue repaying the loans.
Despite the risks, some commenters encourage the Redditor, highlighting the potential life-changing outcome if their investment pays off.
They view the calculated risk as worth taking, even if the BTC price fails to exceed $35,000 for several years.
It is important to note that taking out loans to invest in cryptocurrency carries significant financial risks and should be approached with caution.
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The United States Bankruptcy Court for the Southern District of New York has granted approval for Celsius Network, a bankrupt cryptocurrency lender, to convert its altcoins into Bitcoin.
The decision was made by Judge Martin Glenn, and the liquidation process will pave the way for the distribution of funds to creditors in the near future.
The approval of this proposal came after extensive discussions between Celsius and the U.S. Securities and Exchange Commission (SEC).
According to the ruling of the bankruptcy judge, the struggling lender is now authorized to sell or convert any cryptocurrency assets, with the exception of tokens associated with Withhold or Custody accounts, into Bitcoin (BTC) or Ether (ETH) starting from July 1, 2023.
Celsius Network faced bankruptcy in 2022 following the collapse of the Terra ecosystem, which affected its Terra (LUNA) and TerraUSD (UST) tokens.
Creditors have been awaiting a resolution since the bankruptcy filing several months ago, and this recent approval opens up new possibilities and extends the ongoing proceedings.
In light of the recent regulatory crackdown by the SEC on altcoins, which the regulator has categorized as securities, many cryptocurrency companies are opting to convert their altcoins into BTC and ETH.
Notable altcoins that have been labeled as securities by the SEC include Cardano.
Despite the ongoing bankruptcy proceedings, Celsius Network was acquired by the crypto consortium Fahrenheit in May 2023.
Under the stewardship of its new owners, the network continues to operate.
The new owners have announced their intention to develop a revised bankruptcy plan, although specific details of these plans have not yet been disclosed.
However, it is now clear that the assets will be exclusively distributed in Bitcoin and Ether.
Following Celsius Network’s bankruptcy, other companies in the cryptocurrency industry, such as Voyager Digital and FTX, have also faced financial challenges.
As a result, they have been exploring unique strategies to address the demands of their creditors for reimbursement.
In summary, the United States Bankruptcy Court’s approval for Celsius Network to convert its altcoins into Bitcoin marks a significant step towards resolving the lender’s bankruptcy proceedings.
With the involvement of the SEC and the acquisition by Fahrenheit, the network is now moving forward under new ownership and is expected to distribute its assets in BTC and ETH.
This development reflects a broader trend in the industry as crypto companies grapple with regulatory concerns and seek solutions to address creditor demands.
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The launch of a spot Bitcoin exchange-traded fund (ETF) in the United States may face a longer delay as recent applications from investment managers have been deemed inadequate by the Securities and Exchange Commission (SEC).
The SEC has notified the Nasdaq and the Chicago Board Options Exchange (Cboe), representing asset managers, that their filings lack clarity and comprehensiveness.
The main concern raised by the SEC is the absence of a “surveillance-sharing agreement” with a spot Bitcoin exchange or insufficient details about surveillance arrangements.
However, the asset managers have the option to resubmit their applications after providing the necessary clarifications.
Following BlackRock’s inclusion among the companies aiming to launch the first spot Bitcoin ETF on Wall Street, a series of applications have been filed in recent weeks.
BlackRock’s application introduced a surveillance sharing agreement, which involves sharing information about market trading and clearing activities between entities to prevent potential market manipulation.
This move prompted ARK Invest and 21Shares to amend their own applications, including a similar surveillance agreement.
Other asset managers such as Invesco, WisdomTree, Valkyrie, and Fidelity have also resubmitted or amended their applications, with ARK Invest reportedly leading the race.
Exchange-traded funds (ETFs) are investment vehicles that track specific indices and are typically traded on exchanges.
In the cryptocurrency market, a cryptocurrency ETF refers to a fund that tracks the price of one or multiple digital tokens and comprises various cryptocurrencies.
The SEC has consistently denied spot Bitcoin ETFs since 2017. However, Canada has already made this financial product available.
Three notable funds—Purpose Bitcoin, 3iQ CoinShares, and CI Galaxy Bitcoin—have directly invested in spot Bitcoin in Canada.
In summary, the launch of a spot Bitcoin ETF in the United States is likely to experience a delay as the SEC has deemed recent applications inadequate due to a lack of clarity and comprehensive information.
Asset managers have the opportunity to rectify the filings and resubmit them after addressing the SEC’s concerns.
While spot Bitcoin ETFs have been denied by the SEC since 2017, Canada has already approved and offers several funds that directly invest in spot Bitcoin.
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Bitcoin (BTC) experienced a sharp decline below the $30,000 mark after the opening of Wall Street on June 30, causing concern among investors regarding the future of the first spot exchange-traded funds (ETFs) for the cryptocurrency.
The drop in BTC’s price was accompanied by reports that the U.S. Securities and Exchange Commission (SEC) had rejected applications for the first Bitcoin spot-price ETF.
These applications had initially fueled a recent price surge that propelled Bitcoin to new yearly highs.
According to sources cited by The Wall Street Journal, the applications had been returned, leading BTC/USD to hit a nine-day low before recovering to hover around $30,000.
The report highlighted that the applications were rejected due to a technicality – the failure to name the spot bitcoin exchange and provide sufficient information about surveillance-sharing agreements.
Despite the setback, some market observers viewed this as a minor issue that could be addressed by updating the language and resubmitting the applications.
In fact, financial commentator Tedtalksmacro saw the SEC’s actions as a positive sign, suggesting that it provided guidance to asset managers like BlackRock on how to get the applications approved.
Meanwhile, Bitcoin’s price continued to trade lower, losing over $1,000 from its daily highs at the time of writing.
This decline occurred just before the monthly and quarterly candle close, adding to the significance of the situation.
Adding to the confusion in the markets, the U.S. macroeconomic data released showed the Personal Consumption Expenditures (PCE) Index falling lower than expected, marking its biggest drop in a year.
Despite signs of slowing inflation, the markets began pricing in a higher possibility of interest rate hikes in July.
The increasing expectations of a rate hike were reflected in the latest data from CME Group’s FedWatch Tool, which indicated a nearly 90% chance of a 25-basis-point increase.
The Kobeissi Letter, a financial commentary resource, argued that despite the data, inflation remained too high, highlighting that the core PCE inflation rate had remained unchanged since December 2022 at 4.6%, posing a significant challenge for the Fed.
In summary, Bitcoin experienced a price drop below $30,000 due to reports of the SEC rejecting applications for Bitcoin spot-price ETFs.
However, market observers remained optimistic, considering the rejection to be a technicality that could be addressed.
Additionally, the markets faced confusion with lower-than-expected PCE data and rising expectations of interest rate hikes, despite concerns about high inflation levels.
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The United Kingdom is on the verge of passing a bill that will subject cryptocurrencies to the same regulations as traditional assets, signaling a significant milestone for the local crypto community.
This legislation, known as the Financial Services and Markets Bill, has received approval from the upper chamber of the U.K. parliament on June 19 and is now awaiting King Charles’ royal assent, the final step required for a parliamentary bill to become law.
Discussions surrounding the bill began in the British Parliament back in July 2022, and its enactment is expected to bring about legal clarity and support the wider adoption of cryptocurrencies in the country.
Under the new law, the Treasury, Financial Conduct Authority (FCA), Bank of England, and Payments Systems Regulator will be granted the authority to establish and enforce regulations for crypto businesses.
The introduction of this legislation reflects the U.K.’s ambition to leverage the advantages of blockchain technology for the private sector and the overall economy.
Andrew Griffith, the economic secretary to the U.K. Treasury, expressed the country’s desire to enable firms to fully utilize the opportunities presented by crypto assets through appropriate regulatory measures.
The long-term vision is to create an environment that allows businesses to maximize the potential benefits derived from cryptocurrencies.
Furthermore, this regulatory framework could serve as a catalyst for attracting more crypto firms to the U.K., particularly in light of the increasingly stringent regulatory environments observed worldwide.
A recent example is venture capital firm Andreessen Horowitz (A16z), which announced the establishment of its first office outside of the United States in London.
This decision followed productive discussions with the U.K. prime minister, policymakers, and the FCA, with the firm’s crypto founder and managing partner, Chris Dixon, highlighting the appeal of a predictable business environment as a key factor behind the expansion.
The impending passage of the Financial Services and Markets Bill in the U.K. signifies a pivotal moment for the crypto community within the country.
By bringing cryptocurrencies under the same regulatory framework as traditional assets, the new law aims to provide legal clarity and foster the growth of the crypto industry.
This move positions the U.K. as an attractive destination for crypto firms seeking a supportive regulatory environment, potentially paving the way for further advancements in the adoption and utilization of cryptocurrencies in the nation.
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The Chicago Mercantile Exchange (CME) Group revealed its intention to launch Ether/Bitcoin Ratio futures on June 29.
The introduction of these futures contracts is scheduled for July 31, pending regulatory approval.
The settlement of Ether/Bitcoin Ratio futures will be in cash, determined by the final settlement price of CME Group’s Ether (ETH) futures divided by the final settlement price of CME Group’s Bitcoin (BTC) futures.
Additionally, this new contract will follow the same listing cycle as CME Group’s Bitcoin and Ether futures contracts.
Giovanni Vicioso, CME Group’s global head of cryptocurrency products, highlighted the potential for relative value trading opportunities between Ether and Bitcoin.
While these assets have traditionally exhibited a strong correlation, their market dynamics may now differ, enabling investors to capitalize on their performance variances. Vicioso stated:
“By introducing Ether/Bitcoin Ratio futures, investors can gain exposure to both ether and bitcoin in a single trade without taking a directional view.
This new contract will facilitate opportunities for a wide range of clients seeking to hedge positions or execute various trading strategies, all in an efficient and cost-effective manner.”
CME Group initially entered the cryptocurrency market in December 2017 by launching the first Bitcoin futures contract.
In February 2021, they expanded their offerings by introducing an Ether futures contract. Recognizing the growing demand for cryptocurrency investment opportunities, CME Group further broadened its product range in 2022 with the introduction of micro BTC and ETH futures contracts, providing traders with additional options to engage in these digital assets.
On April 17, CME Group unveiled plans to enhance its cryptocurrency options by introducing new options for standard and micro-sized Bitcoin and Ether contracts.
These contracts were expected to be available from May 22, pending regulatory review.
This expansion included daily expiries from Monday to Friday, allowing traders to better manage short-term price risks associated with Bitcoin and Ether.
The aim was to provide market participants with increased precision and flexibility in managing the short-term price volatility of these digital assets.
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Fidelity Investments, a prominent asset manager, has taken a step forward in its pursuit of a spot Bitcoin exchange-traded fund (ETF).
As disclosed in a filing by Cboe BZX Exchange with the United States Securities and Exchange Commission (SEC) on June 19, Fidelity has submitted an application for the ETF.
This move by Fidelity follows a series of similar applications made by other financial giants.
BlackRock, WisdomTree, Invesco, and Valkyrie had all submitted their respective spot Bitcoin ETF applications in the preceding days, with BlackRock initiating the trend on June 15.
According to Bloomberg, a total of seven spot Bitcoin ETF applications have been filed this year. Notably, Fidelity, WisdomTree, and Invesco are making a second attempt at securing approval for their spot BTC ETFs.
The applications submitted for the spot Bitcoin ETFs emphasize the significance of the regulated CME Bitcoin Futures market as it pertains to the spot Bitcoin market.
Fidelity’s application, much like others, argued extensively on this point and supported its claim with thorough research.
In its 193-page application, Fidelity stated, “The lack of a Spot Bitcoin ETP exposes U.S. investor assets to significant risk because investors that would otherwise seek crypto asset exposure through a Spot Bitcoin ETP are forced to find alternative exposure through generally riskier means.”
It also highlighted past instances, such as the cases of FTX, Celsius, BlockFi, and Voyager Digital, where investors had resorted to riskier alternatives due to the absence of a spot Bitcoin ETP.
Fidelity Digital Assets Services, a regulated custodian licensed by the New York Department of Financial Services, would be entrusted with the custody of the trust’s Bitcoin.
Furthermore, Cboe BZX Exchange announced its intent to establish a surveillance-sharing agreement with a United States-based cryptocurrency exchange.
It’s worth noting that the SEC is yet to approve any of the applications for a spot Bitcoin ETF. Fidelity’s filing, using the 19b-4 form, revealed that the firm is reviving its Wise Origin Bitcoin Trust product, which was initially submitted for approval in March 2021.
Unfortunately, the previous application was rejected despite two deliberation extensions.
With approximately $11 trillion in assets under administration, Fidelity Investments holds significant clout in the financial industry.
If approved, its spot Bitcoin ETF would provide investors with a regulated and more accessible avenue for exposure to Bitcoin, reducing the need for riskier alternatives.
However, the ultimate decision rests with the SEC, and the market awaits their verdict on these applications.
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The price of Bitcoin (BTC) remained within a narrow trading range between $30,000 and $31,000, showing no significant upward or downward movement, according to data from Cointelegraph Markets Pro and TradingView.
However, market participants started to anticipate a potential breakthrough above resistance levels.
Several traders and analysts expressed optimism about Bitcoin’s future performance.
A popular trader known as Jelle tweeted that Bitcoin’s current price action resembled its breakout in late 2020, suggesting a potential upward trend.
Another prominent analyst, Rekt Capital, pointed out positive signs on monthly timeframes, indicating that Bitcoin was positioning itself for a monthly close above a resistance level that had previously rejected its price.
Michaël van de Poppe, the founder and CEO of trading firm Eight, echoed the positive sentiment, stating that both Bitcoin and altcoins were showing promising movements, suggesting the possibility of another upward leg in the markets.
On the macroeconomic front, market participants were eagerly awaiting the release of major data, including comments on economic policy by Jerome Powell, the chair of the United States Federal Reserve.
The volatility catalyst for risk assets was expected to be the Personal Consumption Expenditures (PCE) figures, which served as Powell’s preferred inflation measurement tool.
Additionally, the options open interest expiry on June 30 attracted attention, as it amounted to a substantial $4.7 billion.
Traders speculated on the potential impact of this expiration on the crypto market, with some expecting spot buying from dealers to hedge their books if the options were rolled into more calls.
Tedtalksmacro, a financial commentator, suggested that there might be limited movement in the crypto market until the expiry of the options open interest.
Overall, while Bitcoin remained range-bound in the short term, market participants showed growing optimism about a potential breakout above resistance levels.
Traders and analysts highlighted similarities to past bullish trends, and the release of macroeconomic data, including PCE figures and the options expiry, was expected to bring potential volatility to the market.
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EDX, a recently launched cryptocurrency exchange, is reportedly preparing to switch its custody provider from Paxos Trust to Anchorage Digital.
The exchange, which received support from prominent traditional finance entities like Citadel Securities, Fidelity Digital Assets, and Charles Schwab, operates on a noncustodial business model aimed at eliminating conflicts of interest.
EDX currently facilitates trading in two cryptocurrencies, Bitcoin and Bitcoin Cash.
Notably, Bitcoin Cash has experienced significant growth since the exchange’s inception, with a 70.43% increase over the past week and a remarkable 101.36% surge in the last month.
Following the exchange’s announcement of its partnership with Paxos in October, the United States Securities and Exchange Commission proposed stricter custody regulations for crypto firms.
Paxos, holding a BitLicense from the New York Department of Financial Services, faced an investigation earlier this year for undisclosed reasons.
Additionally, Paxos obtained preliminary conditional approval for a U.S. bank charter from the United States Comptroller of the Currency (OCC) in 2021, but that approval reportedly lapsed by the end of March.
Anchorage Digital, on the other hand, became the first crypto firm to receive a national trust bank charter from the OCC in January 2021.
However, it faced regulatory issues a year later due to Anti-Money Laundering deficiencies and subsequently agreed to a consent order.
Shortly thereafter, Anchorage Digital formed a custody network with prominent crypto exchanges including Binance.US, CoinList, Blockchain.com, Strix Leviathan, and Wintermute.
EDX has plans to introduce EDX Clearing, a clearinghouse designed to settle trades executed on the EDX Markets platform, later this year.
While EDX declined to comment on the change of its custody provider, Anchorage Digital did not respond to requests for comments regarding the matter.
The decision to switch custody providers signifies EDX’s commitment to establishing a secure and compliant infrastructure for its users.
With the support of reputable financial heavyweights and the intention to introduce a clearinghouse, EDX aims to enhance its trading platform and ensure a seamless experience for cryptocurrency traders.
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