Table of Contents
Top Stories of The Week
Solana ETF Regulatory Filings Flood In as Gensler Sets Departure Date
In a significant development for cryptocurrency markets, multiple spot Solana exchange-traded funds (ETFs) are seeking approval from regulators. On November 21, Cboe BZX Exchange filed four separate 19b-4 forms with the United States Securities and Exchange Commission (SEC) for asset managers Bitwise, VanEck, 21Shares, and Canary Capital. This effort coincides with SEC Chair Gary Gensler’s announcement of his planned resignation in January 2025.
The Significance of 19b-4 Filings
The 19b-4 filings are critical as they represent a proposal for a rule change by entities such as stock exchanges or financial regulatory organizations. Unlike Form S-1 registration statements filed by VanEck and 21Shares earlier, these 19b-4 submissions are the final step in getting regulatory approval for the ETFs to be listed.
Implications for the Crypto Market
Should these ETFs be approved, they are expected to bring a new wave of institutional investment into the Solana network. This development reflects a growing trend towards integrating digital assets into traditional financial markets source.
FTX Provides Timeline for Creditor and Client Reimbursement Payouts
As FTX navigates its complex bankruptcy proceedings, the collapsed crypto exchange has outlined its schedule for creditor and former customer reimbursements. The finalization of claims is anticipated by January 2025, with payouts commencing in March 2025.
Managing the Payout Process
FTX plans to initiate reimbursement arrangements in December, coordinating with distribution agents responsible for managing the payout procedure via a customer portal. Interim CEO John J. Ray III emphasized the priority of returning funds to creditors and customers swiftly.
Challenges Ahead
The vast scale of these reimbursements highlights the persistent challenges in resolving FTX’s financial obligations, underscoring the significant impact of its bankruptcy on the crypto industry.
SEC Chair Gary Gensler to Step Down
SEC Chair Gary Gensler will leave his position on January 20, 2025. Known for his firm stance on regulating cryptocurrency, Gensler’s departure coincides with Donald Trump’s anticipated second term as U.S. President.
Gensler’s Impact on Crypto Regulation
Gensler’s tenure has been marked by increased scrutiny of cryptocurrencies, aiming to protect investors while ensuring that capital markets remain secure and transparent source.
Future Implications
President Trump’s opportunity to appoint a successor could herald a shift in U.S. regulatory policy towards a more crypto-friendly stance, reflecting broader market shifts favoring digital assets.
MicroStrategy Completes $3B Raise to Buy More Bitcoin Despite Stock Drop
MicroStrategy has announced the completion of a $3 billion offering of 0% convertible senior notes, slated for maturity in December 2029. Despite a 25% drop in MicroStrategy’s stock price, the company plans to use part of the proceeds to acquire more Bitcoin.
Convertible Senior Notes: A Strategic Move
These notes, issued at a 55% premium, offer a strategic opportunity for investment. Without regular interest payments, these convertibles represent a calculated risk, signaling the company’s staunch belief in Bitcoin’s long-term value.
Coinbase CEO to Meet with Trump for Personnel Appointments
In strategic political moves, Coinbase CEO Brian Armstrong is set to meet with President-elect Donald Trump. As the administration forms, Armstrong’s meeting is reportedly to explore potential roles for Coinbase personnel in government positions.
Crypto’s Role in Politics
This meeting signifies the growing intersection between the crypto industry and U.S. politics, potentially shaping the legislative landscape for digital assets for the coming years.
Winners and Losers
In a volatile week for cryptocurrencies, significant shifts were observed in asset values:
- Bitcoin (BTC): $98,877
- Ether (ETH): $3,319
- XRP: $1.47
Top Gainers:
- Stellar (XLM): Increased by 137.21%
- Hedera (HBAR): Rose 108.20%
- Mantra (OM): Jumped 72.86%
Top Losers:
- Peanut the Squirrel (PNUT): Down 35.62%
- Goatseus Maximus (GOAT): Decreased by 29.96%
- Popcat (SOL) (POPCAT): Dropped 23.72%
Most Memorable Quotations
- Jeffrey Zirlin, co-founder of Sky Mavis: "The good thing about memecoins is that they get the people who are only in [crypto] for primarily speculative reasons and are thinking very short-term — it attracts those people."
- Adam Moskowitz, managing partner at The Moskowitz Law Firm: "In this quickly changing crypto landscape, it cannot be overstated how important these federal judges and willing partners are for resolutions."
- Gary Wang, co-founder of FTX: "I took the easy path, the cowardly path, instead of doing the right thing. I will spend the rest of my life trying to make amends."
Prediction of The Week
Bitcoin Back to $90K Next? Traders Diverge on BTC Price Pullback Odds
Bitcoin’s journey towards $100,000 faced a significant hurdle as sellers lined up, preventing further gains beyond $99,000. Traders suggest that a pullback to $90,000 could represent "healthy price action," facilitating sustained growth beyond six figures.
Market Dynamics at Play
Sell-side liquidity amounting to $300 million stalled Bitcoin’s ascent at Wall Street’s open. Analysts are divided on the market’s next moves, with predictions varying from a retracement to a potential breakthrough past resistance levels source.
FUD of The Week
South Korea’s Delio Declared Bankrupt with $1.75B in Assets Lost
Delio, a South Korean virtual asset platform, has been declared bankrupt following its inability to process withdrawals amidst $1.75 billion in liabilities. The court-ordered liquidation process commences as creditors prepare claims.
Impact on Investors
The bankruptcy has left numerous investors and customers stranded, raising concerns about asset management in the volatile crypto sector.
Coinbase Scammer Earns Five Figures Weekly from Targeting Crypto CEOs
A crypto phishing scam, impersonating Coinbase support tools, is reportedly generating substantial illegal earnings by targeting high-profile crypto CEOs and security engineers through sophisticated social engineering.
Security Concerns
The scam highlights the continuous cybersecurity challenges facing the crypto industry, emphasizing the need for robust defenses against such deceitful tactics.
US Charges 5 in $11M Crypto Hacking Scheme Linked to ‘Scattered Spider’
Prosecutors in the United States have indicted five individuals connected to a crypto-hacking group accused of stealing $11 million. The group allegedly used SIM-swapping and phishing techniques to access crypto accounts.
Legal Ramifications
The case underscores the persistent threat of cybercrime within digital finance, underscoring the exigency for comprehensive security measures and legal frameworks source.
Top Magazine Stories of The Week
Crypto Has 4 Years to Grow So Big ‘No One Can Shut It Down’: Kain Warwick, Infinex
Kain Warwick discusses how platforms like Infinex aim to adopt the Uber model, expanding to a scale whereby regulation becomes improbable.
Bitcoin’s $100K Push Wakes Taxman, Vitalik Visits Real Moo Deng: Asia Express
As Bitcoin flirts with $100K, global governments focus on crypto taxation and compliance, signaling deeper institutional interest and regulation.
110M Doodles Coffee Cups Appear at McDonald’s Across the US: NFT Collector
In a massive NFT partnership milestone, McDonald’s launches 110 million Doodles-themed coffee cups, expanding NFT reach to mainstream audiences.
FAQs
Q: What are 19b-4 filings and why are they significant for ETFs?
A: 19b-4 filings represent proposals for rule changes by regulatory bodies, crucial for ETFs seeking listing approval. They differ from initial Form S-1 registration statements, focusing on finalizing regulatory compliance.
Q: How does the SEC Chair’s resignation affect crypto regulations?
A: Gary Gensler’s resignation might herald a shift towards more favorable crypto regulations, depending on his successor’s stance. Policy directions may significantly change under new leadership, aligned with broader political shifts.
Q: What are the implications of MicroStrategy’s $3 billion convertible notes?
A: The completion of MicroStrategy’s $3 billion convertible senior notes, aimed at Bitcoin acquisition, reflects a high-risk, high-reward strategy, demonstrating strong belief in Bitcoin’s potential value despite market volatility.
In conclusion, the crypto industry continues to evolve rapidly, facing challenges with regulatory shifts, financial maneuvering, and security concerns. The developments highlighted this week reflect the dynamic and often unpredictable nature of the crypto landscape, demanding constant vigilance and adaptability from investors and regulators alike.
