Recap of This Week’s Crypto Highlights (Jan 8th – 14th): Noteworthy Crypto News You May Have Overlooked
This week was marked by a flurry of activity, anticipation, and enthusiasm, as several significant events unfolded in the crypto space. One event that captured the attention of many was the approval of the Spot Bitcoin ETF by the Securities and Exchange Commission (SEC). This news quickly spread on social media platforms, overshadowing other major developments in the industry. In this article, we will provide a roundup of the week’s news.
SEC Warns Against FOMO
The week began with the SEC issuing a warning about FOMO (fear of missing out), just before approving the Spot Bitcoin ETF. In a tweet on Friday, regulators cautioned investors against making impulsive investment decisions based solely on speculative hype. The approval of Bitcoin ETFs generated high anticipation among investors, leading to a temporary surge in the price of Bitcoin, which reached nearly $48k during the approval process.
Upbit Singapore Receives License from MAS
South Korea’s largest crypto exchange, Upbit, secured a significant institutional license (MPI) from the Monetary Authority of Singapore (MAS). The announcement was made on January 8th on Upbit’s website. The MPI license enables institutions to offer crypto and fiat-related services, expanding Upbit’s operations while enhancing security.
BlackRock Announces Layoffs
Amidst the heightened speculation surrounding the approval of the Spot Bitcoin ETF, financial giant BlackRock made a significant move by announcing a 3% reduction in its workforce, resulting in the unfortunate layoff of 600 employees. This decision was part of the company’s strategy to reallocate resources and keep pace with technological advancements.
Valkyrie, Ark/Share, and Others Update ETF Filings
Several companies, including Valkyrie, Wisdomtree, Invesco/Galaxy, iShares, Ark/21Shares, and VanEck, submitted updated S1 filings to the SEC for the launch of Bitcoin spot exchange-traded funds (ETFs). This occurred as the countdown to the approval of the Spot Bitcoin ETF reached its final stages. During the same week, BlackRock and VanEck also submitted revised applications for spot Bitcoin ETFs, addressing concerns raised during the initial commentary phase. Many of these companies reduced their fees, with BlackRock charging 0.3%.
Standard Chartered Predicts Trading Inflows
With the imminent approval of the Bitcoin ETF, numerous industry experts and analysts predicted a surge in trading. Some warned investors to exercise caution due to the high volatility associated with such developments. Standard Chartered anticipated that Bitcoin inflows could range from $50 million to $100 million. This prediction was based on the fact that the approval of spot Bitcoin ETFs provides institutional investors with a regulated and secure avenue for investing in Bitcoin, while also enabling retail investors to gain exposure to the cryptocurrency.
US CPI Inflation Rises to 3.4%
The United States Consumer Price Index (CPI) experienced a significant increase, reaching 3.4% in December. This figure surpassed the previous month’s high of 3.1%, signaling a notable uptick in inflation that caught the attention of financial markets.
SEC Twitter Account Hacked
Amidst the anticipation surrounding the approval of the Spot Bitcoin ETF, false news spread throughout the crypto industry, claiming that Bitcoin had been approved. It was later confirmed that the SEC’s Twitter account had been hacked. The industry was shocked by this false news.
Approval of All Spot Bitcoin ETF Applications
On January 11th, the Securities and Exchange Commission approved all eleven spot Bitcoin ETF applications submitted by ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex, and Franklin Templeton. This decision followed a long period of chaos and endless debate.
South Korea Continues Crypto Ban
Despite the immense popularity of the Spot Bitcoin ETF approval within the crypto industry, Korean regulators remained unimpressed and decided to continue their ban on cryptocurrencies. This crucial step was taken to protect investors’ interests, as regulators expressed concerns about illegal fund outflows, money laundering, and the speculative nature of cryptocurrencies leading to false hopes.
Do Kwon Requests Delay in SEC Fraud Case
In a new development, Do Kwon, co-founder of Terraform Labs, requested a delay in his trial at the United States District Court. The original trial date of January 29th was shifted to March 2024. Kwon explained that he wanted to stand trial in person.
Circle Files for IPO
Circle, the creator of USDC stablecoin, filed for an initial public offering (IPO). The company submitted a draft S-1 document to the SEC, paving the way for a potential IPO.
In conclusion, these were the major news stories of the week, with the approval of the Spot Bitcoin ETF generating significant buzz in the crypto world.