SEC - Page 174

Relai, a Swiss-based Bitcoin-only application, has announced an exciting development for its users – the integration of Blockstream’s Greenlight solution, which will introduce Lightning payment functionality to the platform.

This collaboration aims to enhance the Bitcoin payment experience for Relai’s user base, according to a detailed announcement provided to Cointelegraph.

Blockstream’s Lightning-as-a-service offering is being woven into the fabric of Relai’s dedicated Bitcoin wallet platform.

This integration is poised to empower approximately 100,000 Relai users with the ability to conduct Bitcoin (BTC) transactions swiftly and affordably via the Lightning Network, all the while retaining control over their private keys.

Importantly, this move allows Relai to bypass the need for creating and managing its own Lightning infrastructure.

The inception of Greenlight by Blockstream in June 2023 marked a significant stride toward facilitating rapid, cost-effective Bitcoin payments for developers and platforms, emphasizing user sovereignty over private keys.

Traditional custodial solutions, while convenient and quick to set up, often compromise user security and privacy.

In contrast, noncustodial services, which prioritize these aspects, typically demand extensive technical and operational input.

Greenlight’s novel approach divides custodial Lightning nodes into distinct, independently functioning components.

READ MORE: Arbitrum to Release $2.32 Billion in Vested Tokens, Sparking Market Speculation

It utilizes Core Lightning for its foundational structure, enabling all operations related to private keys to be executed on the user’s device, effectively making it the signer.

The rest, including operational requirements, are managed on Blockstream’s infrastructure.

This infrastructure is grounded in the Validating Lightning Signer project, ensuring thorough verification and safeguarding user autonomy over fund-related operations.

It mirrors the architecture of hardware wallets, which combine a user-operated client interface and signer with the wallet provider’s Bitcoin node that connects to the broader network.

This setup facilitates payment initiation and invoice signing by the user, with Blockstream managing the node responsibilities.

Founded in 2020, Relai has exclusively focused on Bitcoin trading and custody, boasting over $300 million in trading volume in its four-year history.

The platform’s pivot towards Lightning payments follows broader industry trends, with leading exchanges, including Coinbase, enhancing their Bitcoin transaction capabilities.

In September 2023, Coinbase, the largest U.S. exchange, announced its plan to adopt Bitcoin Lightning payments, underscoring Bitcoin’s pivotal role in the cryptocurrency ecosystem and its potential to enable quicker, more economical BTC transactions, as highlighted by CEO Brian Armstrong.

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On March 13, just before the Wall Street trading session commenced, Bitcoin achieved a new milestone in price discovery, demonstrating a bullish edge over selling pressures.

This achievement was recorded with Bitcoin reaching unprecedented highs of $73,679 on Bitstamp, as per data provided by Cointelegraph Markets Pro and TradingView.

Following a slight pause in its upward momentum the previous day, where Bitcoin stabilized near $72,000 and momentarily dipped by $4,000, it swiftly rebounded, mirroring the early week’s market dynamics that initially restricted gains due to resistance.

According to CoinGlass, resistance at $73,800 briefly capped further advances. However, the path towards $80,000 appeared largely unobstructed, a sentiment supported by minimal liquidation levels.

Jelle, a renowned trader, noted on X (formerly Twitter), “Bitcoin wiped out overleveraged longs, retested the 2021 cycle high & then bounced back to $72,000,” indicating a positive outlook for continued upward movement.

Tedtalksmacro, a financial analyst, highlighted the significant surge in institutional investments surpassing previous records, even considering the introduction of new spot Bitcoin ETFs in the United States.

READ MORE: Grayscale Proposes New Bitcoin Mini Trust to Offer Tax-Efficient Investment Option

He shared with his X audience, “Fund inflows like we have never seen before. It makes 2020 look small… price will continue to catch up over the coming months,” suggesting a steady ascent towards $100,000.

He cautioned that historically, a peak in these inflows often signals a critical juncture to exit the market within the following 2-3 months.

Record-breaking inflows were observed in the ETF sector, with a notable $1 billion of net contributions recorded on March 12. BlackRock’s iShares Bitcoin Trust was at the forefront of this influx.

BitMEX Research highlighted, “A record 14,706 BTC inflow on 12 March 2024,” underscoring the significant demand.

This influx represents a substantial fraction of Bitcoin’s newly-mined supply in 2024, estimated at around 65,500 BTC.

As of March 13, the combined holdings of the two largest ETFs, managed by BlackRock and Fidelity Investments, amounted to over 330,000 BTC.

This figure is quintuple the quantity of Bitcoin mined during the same period, illustrating the massive scale of institutional participation in the cryptocurrency market.

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Grayscale, a leading investment manager, has announced its intention to launch a smaller version of its Grayscale Bitcoin Trust, known as GBTC, through a new product dubbed the “mini” trust.

This new offering, aiming for a listing under the ticker symbol “BTC,” was introduced to the United States Securities and Exchange Commission (SEC) via an S-1 form on March 11.

Upon SEC approval, the Grayscale Bitcoin Mini Trust plans to make its debut on the New York Stock Exchange, operating independently from the original GBTC fund.

This innovative trust is designed to distribute shares to current GBTC investors, with an additional contribution of Bitcoin from GBTC itself, although the exact amount remains unspecified.

One of the main goals of this new trust is to provide GBTC shareholders with a tax-efficient method to gain exposure to Bitcoin.

Bloomberg ETF analyst James Seyffart elaborated on the benefits via a March 12 X post, stating, “There is no fee disclosed yet or what % of $GBTC will spin off but pretty sure this will be a non-taxable event for a chunk of those shares to get into a cheaper and cost-competitive product.”

READ MORE: Bitcoin ETFs Will Hold Over 10% of BTC Supply By Q3

The timing of Grayscale’s filing coincides with Bitcoin reaching a record-breaking high of $71,415 on March 11, following Ether’s significant milestone of surpassing the $4,000 mark earlier in the month.

In response to the flourishing cryptocurrency market, asset manager VanEck announced a fee waiver for its Bitcoin Trust ETF, applying to the first $1.5 billion in funds through March 31, 2025, underscoring the competitive environment in the ETF space.

The broader ETF market is also witnessing significant activity, with U.S. spot Bitcoin ETFs achieving a historic $10 billion in daily trading volume on March 5.

This surge in activity surpasses the previous record set just a week earlier.

However, the SEC’s lack of communication regarding Ether-based ETFs has led to skepticism about their approval.

Senior Bloomberg ETF analyst Eric Balchunas expressed concerns about the prospects for Ether ETFs, noting, “The main thing is the fact that we’re 73 days from the final deadline, and there’s been no contact or comments from the SEC to the issuers.

“That’s not a good sign.”

This silence casts doubt on the potential approval of Ether-based ETFs by May, reflecting the regulatory uncertainties surrounding cryptocurrency investments.

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Two prominent voices within the crypto community have recently made a call to action for their followers on X, emphasizing the urgency of acquiring Bitcoin, gold, and silver in the face of escalating U.S. national debt.

On March 11, Balaji Srinivasan, an entrepreneur and angel investor, took to X to express his view that Bitcoin represents a critical solution to counteract the challenges posed by rampant government expenditure and the threat of asset confiscation.

Highlighting the severity of the situation, Srinivasan, with nearly a million followers and a background as Coinbase’s former CTO, painted a grim picture of the current economic landscape, likening it to the decline of empires past due to treasury looting.

He pointed out the alarming growth in government debt, noting a 25% increase since 2020, bringing the total to a staggering $34.5 trillion.

Srinivasan, who also serves as a general partner at venture capital firm Andreessen Horowitz (a16z), outlined possible responses to this crisis.

These range from denial to attempting political solutions or succumbing to apathy.

However, he advocates for a more radical approach: leveraging Bitcoin to “starve the beast,” thereby limiting the government’s ability to confiscate or inflate currency.

He highlighted the current daily deficit spending of $10 billion as a sign of escalating problems.

READ MORE: Grayscale and Coinbase Meet with SEC to Push for Spot Ether ETFs

Echoing Srinivasan’s concerns, Robert Kiyosaki, author of “Rich Dad Poor Dad,” also advised on the importance of readiness, recommending investment in assets like Bitcoin for their value preservation qualities.

Kiyosaki’s post referenced the rapid increase in national debt, painting a bleak picture of America’s financial health.

Furthermore, Srinivasan warned of potential aggressive actions by a financially desperate state, such as asset confiscation.

He cited various international and domestic precedents where governments have taken control of private assets under different pretexts, underscoring the safety Bitcoin offers as an asset beyond state control.

In 2023, Srinivasan placed a significant bet on Bitcoin’s value skyrocketing due to U.S. hyperinflation.

His stance is particularly relevant as the U.S. prepares to release crucial economic data, including inflation rates, which could influence upcoming Federal Reserve decisions.

With interest rates holding steady at 5.5% since July 2023, the crypto community closely watches these developments, seeking refuge in decentralized assets amid financial uncertainty.

To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.