Creditors of the now-defunct Mt. Gox Bitcoin exchange, which suffered a devastating hack in 2014 resulting in the loss of 850,000 BTC, have received an encouraging email hinting at forthcoming repayments.
On November 21, Nobuaki Kobayashi, the trustee responsible for overseeing the estate of Mt. Gox, began sending emails to rehabilitation creditors, indicating the start of repayments.
According to the email circulating on social media, Kobayashi plans to initiate the first repayments in cash during 2023, with expectations of continuing into 2024.
However, specific timelines for individual rehabilitation creditors were not provided, citing the complexity of handling repayments for the large number of creditors with various types of claims.
This news coincided with the announcement of the redemption of trust assets on November 22.
The rehabilitation trustee disclosed the receipt of 7 billion Japanese yen (approximately $47 million) to finance the repayment of claims, leaving trust assets at 8.8 billion yen, roughly $59 million.
The trustee also affirmed ongoing preparations for base, lump-sum, and intermediate repayments.
The Mt. Gox community greeted these developments with mixed reactions. Some found the email from the Mt. Gox trustee cautiously promising, finally seeing progress after years of uncertainty.
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However, others pointed out that the email only mentioned cash payments, whereas many victims of the Mt. Gox hack anticipated the return of substantial Bitcoin holdings.
Data from the Mt. Gox balance bot on X (formerly Twitter) indicated that the trustee holds 135,890 BTC in known addresses, valued at nearly $5 billion at the time of writing.
An additional 3,795 BTC (equivalent to $130 million) is held in unknown addresses, according to the Mt. Gox balance bot.
Some creditors acknowledged that while cash payments represent progress after a decade of waiting, they eagerly await the return of their Bitcoin holdings.
Additionally, the recent lawsuit filed by the United States Securities and Exchange Commission (SEC) against Kraken on November 21 caught the attention of the Mt. Gox community.
Kraken has played a significant role in the repayment process for Mt. Gox hack victims.
Concerns were raised about potential delays if Kraken were to face difficulties, leading to further delays in the repayment process.
Despite the newfound optimism within the Mt. Gox community, some remain skeptical due to the exchange’s history of failing to meet repayment deadlines.
Initially expected to complete repayments by October 2023, the trustee officially extended the deadline to October 2024 in September 2023.
The road to recovery for Mt. Gox creditors continues to be marked by uncertainty and anticipation.
Grayscale, the prominent crypto asset manager, recently held a crucial meeting with the Securities and Exchange Commission (SEC) to discuss the transformation of its flagship Bitcoin trust into a spot Bitcoin exchange-traded fund (ETF).
The meeting, which took place on November 20th, involved key figures such as Grayscale CEO Michael Sonnenshein, legal chief Craig Salm, ETF head Dave LaValle, and four other executives, alongside five representatives from the Davis Polk law firm.
The primary focus of these discussions was NYSE Arca, Inc.’s proposal to list and trade shares of the Grayscale Bitcoin Trust (BTC) under NYSE Arca Rule 8.201-E, as revealed in an SEC memo.
Grayscale has taken significant steps to advance this conversion, including entering into a Transfer Agency and Service Agreement with BNY Mellon, a major financial institution. Under this agreement,
BNY Mellon will serve as the agent for Grayscale Bitcoin Trust (GBTC), overseeing the issuance and redemption of shares and maintaining shareholder accounts.
Bloomberg ETF analyst James Seyffart noted that the collaboration with BNY Mellon was a strategic move, likely necessary for the conversion process but not necessarily indicative of an imminent transformation of GBTC.
Moreover, it was observed that the SEC’s division of trading and markets plays a crucial role in approving or denying 19b-4s, which are used to notify the SEC of proposed rule changes by self-regulatory organizations.
In a Twitter post on November 22nd, ETF Store President Nate Geraci emphasized a significant aspect of Grayscale’s meeting with the SEC, referring to the GBTC conversion as an “uplisting.”
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Geraci pointed out that Grayscale could gain a substantial advantage in the ETF category if they manage to “uplist GBTC to NYSE Arca” simultaneously with other issuers launching spot Bitcoin ETFs.
He stressed the importance of competitive fees in this endeavor and projected that Grayscale could enter the market with a substantial $20 billion in assets under management, even competing with industry giants like BlackRock.
Grayscale had previously submitted an S-3 form registration statement with the SEC on October 19th, expressing its intent to list GBTC shares on NYSE Arca under the ticker symbol GBTC.
In October, a U.S. appellate court directed the SEC to review its decision to deny Grayscale’s request to convert GBTC into a spot ETF.
Grayscale joins other major asset managers, including BlackRock and Fidelity, in seeking SEC approval for spot Bitcoin ETFs.
Seyffart remained optimistic about the progress of these developments, maintaining a 90% likelihood of ETF approval on or before January 10, 2024.
This indicates that the crypto industry continues to navigate regulatory channels in its pursuit of expanding investment opportunities for digital assets.
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.
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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.
Bitcoin is currently approaching a crucial Fibonacci retracement level, which could signify the peak of its pre-halving surge. Titan of Crypto, a prominent social media trader, has reiterated his BTC price target of up to $50,000 on November 19.
Bitcoin is encountering significant resistance as it struggles to surpass the $40,000 threshold, with several unsuccessful attempts in the past week.
This price region also holds significance for overall market profitability, as $39,000 serves as a break-even point for those who entered the market during the 2021 bull run.
Titan of Crypto has identified $39,000 as an essential boundary, but this time, it pertains to where BTC/USD should ideally stabilize before the April 2024 block subsidy halving event.
He mentioned, “The pre-halving rally I mentioned a year ago is on the verge of reaching its target range between $39k-$50k,” emphasizing the importance of patience.
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This update refers to a previous post from December 2022 when Bitcoin was recovering from a low of $15,600.
Titan of Crypto had then used Fibonacci retracement levels to predict a pre-halving peak of up to $50,000, representing a 220% increase.
Filbfilb, co-founder of the trading platform DecenTrader, still considers around $46,000 as a probable level, while not ruling out the possibility of a temporary BTC price dip.
Looking beyond the halving, there’s growing curiosity about Bitcoin’s future prospects, with forecasts ranging from $130,000 or more by the end of 2025.
On the downside, $30,900 has emerged as a potential support level for Bitcoin’s next correction. Some argue that a lower move to test liquidity would be beneficial and a typical element of Bitcoin market uptrends.
Currently, BTC/USD is trading at $36,500, as per data from Cointelegraph Markets Pro and TradingView. It has maintained a sideways trend over the weekend.
WisdomTree, a global exchange-traded fund (ETF) provider, has taken another step towards launching a spot Bitcoin ETF by filing an amended Form S-1 prospectus with the United States Securities and Exchange Commission (SEC) on November 16, 2023.
This move follows WisdomTree’s initial refiling of its spot Bitcoin ETF application in June 2023, where it proposed a rule change to list and trade shares of the WisdomTree Bitcoin Trust on the BZX Exchange, facilitated by the Chicago Board Options Exchange (CBOE).
The newly updated prospectus reveals that the WisdomTree Bitcoin Trust ETF plans to trade under the ticker symbol BTCW, with Coinbase Custody Trust acting as the custodian responsible for holding all the trust’s Bitcoin assets.
Bloomberg ETF analyst James Seyffart noted that this amended filing signals WisdomTree’s continued commitment to launching a Bitcoin ETF and suggests ongoing discussions with the SEC.
Seyffart emphasized that this step is part of the process and not a critical development.
Eric Balchunas, another Bloomberg ETF expert, expressed concerns about the time it took for WisdomTree to amend its Form S-1 Bitcoin ETF filing.
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He questioned whether the SEC was waiting for all S-1 filings to be updated before issuing a second round of comments.
Seyffart’s data revealed that among the 12 firms in the U.S. that have submitted spot Bitcoin ETF filings, only two have yet to amend their S-1 filings with the SEC: Franklin Templeton and Global X.
Franklin Templeton’s initial spot Bitcoin ETF deadline was set for November 17, but the SEC postponed it to January 1, 2024. Hashdex, which faced a similar deadline, also had its deadline moved to January 1, 2024, on November 15.
Global X, another firm that has not updated its S-1 filing, is awaiting its second spot Bitcoin ETF deadline on November 21.
While some expect the SEC to announce further delays in its decisions regarding upcoming deadlines, Seyffart maintains his belief that these delays will not significantly impact the high probability—90%—of the SEC approving a spot Bitcoin ETF before the end of January 2024.
The ETF industry continues to closely monitor these developments as the quest for a spot Bitcoin ETF in the U.S. unfolds.
Argentina’s presidential run-off election on November 19th witnessed a victory for Bitcoin-friendly candidate Javier Milei, who triumphed over his opponent Sergio Massa.
Milei secured over 55% of the votes, amassing a nearly 3-million-vote lead with almost 99% of the ballots counted, as per Bloomberg data.
In a show of sportsmanship, Massa, the incumbent minister of the economy, graciously congratulated Milei on his victory when more than 90% of the votes had been tallied, even before the official results were announced. Milei is set to assume office on December 10.
The central issue gripping Argentina throughout the election was its persistent inflation crisis, with the Argentine peso witnessing a staggering 140% annual inflation increase in the past year.
Milei has been a vocal critic of the country’s central bank, labeling it a “scam” and accusing politicians of using it to impose an “inflationary tax” on the populace.
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He has also endorsed Bitcoin as a move toward “returning money to its original creator, the private sector.”
Nevertheless, Milei has not indicated any immediate plans to make Bitcoin legal tender in the country.
In stark contrast, Massa holds opposing views on money, banking, and cryptocurrencies.
In October, he pledged to introduce a central bank digital currency (CBDC) if elected, with the aim of addressing Argentina’s persistent inflation crisis.
While Massa emerged victorious in the initial round of the presidential election in October, his success was insufficient to secure the presidency outright, leading to the final run-off vote.
Javier Milei’s triumph signifies a significant shift in Argentina’s political landscape, with a leader who is outspokenly supportive of Bitcoin and skeptical of traditional banking institutions set to take the reins.
As the country grapples with its inflation woes and economic challenges, the world will be watching to see how Milei’s presidency unfolds and whether any changes in financial policy will accompany his tenure.
Mike Belshe, the CEO of cryptocurrency exchange BitGo, is optimistic about the prospects of a spot Bitcoin exchange-traded fund (ETF) gaining approval.
However, he acknowledges that there are hurdles to overcome in this journey.
In an interview with Bloomberg on November 16, Belshe revealed that discussions between companies seeking Bitcoin ETF approval and the United States Securities and Exchange Commission (SEC) indicate a favorable outcome is on the horizon.
Despite his optimism, Belshe cautioned that challenges lie ahead.
He believes that the SEC may still reject more ETF proposals before granting approval.
One key requirement emphasized by the SEC is the separation of cryptocurrency exchanges from custodial services. Belshe stresses that addressing this condition is essential to securing approval.
Belshe referenced Sam Bankman-Fried, the former CEO of the now-defunct crypto exchange FTX, who advocated for multifaceted operations.
Bankman-Fried proposed taking on various functions within the industry to improve efficiency and compliance with regulations.
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The anticipation surrounding the potential approval of a spot Bitcoin ETF has led to a significant increase in fees on the Bitcoin blockchain.
On November 16, transaction fees on the Bitcoin blockchain reached $11.6 million, representing a 746% rise in average transaction fees compared to 2022.
Despite these challenges, Bitcoin has remained stable, trading near 18-month highs and surpassing its previous bear market range.
Currently, 12 asset management firms are awaiting decisions on their Bitcoin ETF applications.
Bloomberg analyst James Seyffart predicts a 90% chance of approval for these applications by January 10, 2024.
In summary, Mike Belshe, CEO of BitGo, remains hopeful about the approval of a spot Bitcoin ETF.
While he anticipates a positive outcome, he acknowledges the need to address market structure concerns outlined by the SEC.
The surge in Bitcoin blockchain fees underscores the growing excitement surrounding the ETF’s potential approval, and the cryptocurrency market continues to show resilience despite regulatory challenges.
CoinShares, the prominent European digital asset manager, has recently secured an exclusive option to acquire Valkyrie Funds, the exchange-traded fund (ETF) unit of its United States-based competitor, Valkyrie Investments.
This strategic move, announced on November 17, signifies CoinShares’ intent to expand its operations into the United States, potentially positioning itself at the forefront of the burgeoning ETF market in the country.
Jean-Marie Mognetti, CEO of CoinShares, expressed his optimism about this acquisition, emphasizing its potential to capitalize on the current fragmentation within the global ETF market.
He noted that the establishment of crypto spot ETPs in Europe since 2015 is an indicator of the evolving landscape, with the U.S. poised to follow suit.
Mognetti believes that this market disparity presents both challenges and significant opportunities for CoinShares.
The option to acquire Valkyrie Funds will remain active until March 31, 2024.
During this period, Valkyrie Funds will continue to operate as an independent entity until the acquisition by CoinShares is finalized, marking an exciting development in the digital asset investment sphere.
In addition to the acquisition option, CoinShares and Valkyrie have also agreed on a brand licensing term.
This agreement allows CoinShares’ name to be used in future S-1 filings with the U.S. Securities and Exchange Commission (SEC), which are typically filed when companies plan to go public.
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If the SEC approves the Valkyrie Bitcoin Fund, it will incorporate the CoinShares name into the ETF, further solidifying their collaboration.
Valkyrie had previously filed for the spot Bitcoin (BTC) ETF on June 21, along with other financial heavyweights like BlackRock.
CoinShares, overseeing more than $3.2 billion in assets under management, had already expressed optimism about the U.S. cryptocurrency ETF market in September.
They emphasized that the United States, as an economic powerhouse, is actively addressing digital asset regulation, dispelling any notion of lagging behind in this rapidly evolving space.
In summary, CoinShares’ exclusive option to acquire Valkyrie Funds marks a strategic leap towards expanding its presence in the United States and tapping into the potential of the growing ETF market.
This move holds the promise of reshaping the digital asset investment landscape on a global scale.
On November 14th, Bitcoin faced a critical test as it dipped to the $35,000 support level, experiencing a significant drop in price.
In just one hour, the cryptocurrency plummeted by over $1,000, creating a sense of sell-side pressure in the market.
Fortunately, Bitcoin managed to find support at the $35,000 mark, acting as a springboard for a recovery to approximately $35,600 at the time of this report.
This sudden volatility came shortly after what initially seemed like a positive development for Bitcoin and the crypto market, with United States inflation data showing a slowdown beyond expectations.
However, it became evident that beyond smaller retail investors, there was limited enthusiasm for purchasing Bitcoin at its previous levels, which had recently reached 18-month highs.
Analysts pointed out that Bitcoin whales began to cash in on their profits on November 3rd as the BTC price surged from $35,000 to nearly $38,000. Over 15 wallets holding more than 1,000 BTC each either sold or redistributed their holdings.
An accompanying chart from on-chain analytics firm Glassnode revealed that the number of whale wallets had reached its lowest point in about a month.
Following the release of the inflation data, monitoring resource Material Indicators highlighted the need to anticipate periods of downside movements within the broader Bitcoin uptrend.
They cautioned against assuming that the market would only move upwards, emphasizing that market dynamics are more complex and require patience and conviction from investors.
A subsequent update revealed that bid support had shifted closer to the spot price, moving from $33,000 to $34,500, while whales continued to offload their holdings.
One notable development was the surge in long liquidations, with data from CoinGlass indicating the highest daily volume of long Bitcoin liquidations in several months, totaling $120 million on November 14th.
Interestingly, this amount was nearly equal to the short Bitcoin liquidations that occurred when the price spiked to $38,000 the previous week.
Furthermore, across the cryptocurrency market, long positions in various cryptocurrencies were liquidated, amounting to nearly $300 million.
In conclusion, Bitcoin’s recent price action showcased the cryptocurrency’s ongoing volatility, with fluctuations driven by factors such as profit-taking by whales and market sentiment.
Traders and investors need to exercise caution and be prepared for both upward and downward movements in the ever-evolving cryptocurrency market.
In less than two months, institutional investment in Bitcoin has witnessed a staggering influx of over $1 billion, signaling a resurgence in interest in cryptocurrencies.
CoinShares, a prominent crypto asset management firm, highlighted this remarkable trend in its latest weekly report on November 13, underscoring the growing capital flow into Bitcoin and altcoins.
The surge in Bitcoin, Ether, and select altcoin prices can be attributed to the mounting excitement surrounding the potential approval of the United States’ first spot exchange-traded fund (ETF).
Since November 2022, the total market capitalization of the cryptocurrency market has skyrocketed by $600 billion, according to data from TradingView.
However, the past two months have witnessed a substantial uptick in funds allocated to crypto investment products, with CoinShares revealing, “Digital asset investment products saw inflows totaling US$293 million last week, bringing this 7-week run of inflows past the US$1 billion mark, leaving year-to-date inflows at US$1.14 billion, making it the third-highest yearly inflows on record.”
One of the most noteworthy statistics indicating the resurgence of crypto in 2023 is the Assets Under Management (AUM) of crypto exchange-traded products (ETPs).
Since the beginning of the year, this figure has nearly doubled, with a remarkable 10% increase occurring in just the past week.
CoinShares noted, “At US$44.3 billion, total AuM is now the highest since the major crypto fund failures in May 2022.”
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Moreover, the report highlighted that investors seeking long positions in Bitcoin accounted for the majority of the trading volume.
“Bitcoin saw inflows totaling US$240 million last week, pushing year-to-date inflows to US$1.08 billion, while short-bitcoin saw US$7 million outflows, indicative of continued positive sentiment,” the report stated.
This renewed interest has also spurred on-chain analytics firm Glassnode to reevaluate Bitcoin supply dynamics.
As the fourth halving event approaches, Bitcoin holdings for storage now exceed the amount mined by a factor of 2.4.
This development signifies a significant milestone for Bitcoin, attracting intrigue from investors due to its impressive historical returns.
Furthermore, Philip Swift, the creator of the statistics platform Look Into Bitcoin, pointed out the increasing number of wallet entities, both large and small, as a sign of growing adoption.
It’s important to note that this article does not offer investment advice or recommendations.
All investment and trading decisions involve risk, and readers are advised to conduct their own research and due diligence before making any investment decisions.