August 30, 2023
Good morning, accountants and auditors! Get ready to power up your knowledge with today’s edition of Morning Blockchain. We’ve got some exciting news about a legal victory that could pave the way for the first spot bitcoin ETF in the US, the ongoing struggles in the industry to establish reliable banking relationships, and the integration of blockchain and cryptocurrency in traditional financial markets. So crack open that energy drink and let’s dive in!
Court hands Grayscale win in long-running suit against SEC Grayscale Investments has won its case against the SEC regarding its application for a spot bitcoin exchange-traded fund (ETF), causing bitcoin’s price to spike and potentially paving the way for other firms like BlackRock and Fidelity to pursue spot bitcoin ETFs; the court ruled that the SEC’s treatment of Grayscale’s proposal was arbitrary and capricious and ordered a re-review of the ETF application. Quest for spot bitcoin ETF faces unsettled path despite Grayscale win The court ruling favoring Grayscale Investments and requiring the SEC to re-review its bid for a spot bitcoin ETF could potentially pave the way for the first spot bitcoin ETF in the U.S., although the SEC still has options to push back and appeal the decision. This is relevant to blockchain and cryptocurrency as it highlights the ongoing regulatory challenges and developments surrounding the approval of cryptocurrency-based financial products. Grayscale Bitcoin Trust discount shrinks after legal victory Grayscale’s victory against the SEC in their ongoing dispute has led to a decrease in the discount of the Grayscale Bitcoin Trust, which represents the difference between the market value of GBTC shares and the value of the underlying bitcoin in the trust, highlighting the relevance of the article to blockchain and cryptocurrency. Bitcoin price soars after Grayscale win in dispute with SEC Bitcoin’s price surged after a U.S. appeals court ruled in favor of Grayscale Investments, setting a precedent for the crypto industry and potentially leading to the approval of spot bitcoin ETFs, which could have ramifications for pending ETF applications from other financial institutions. Tether taps private bank to process dollar transfers: Bloomberg Tether, the largest stablecoin issuer, has reportedly started using Britannia Bank & Trust as its banking partner, as crypto firms face challenges in securing US banking partners; this development is relevant to blockchain and cryptocurrency as it highlights the ongoing struggles in the industry to establish reliable banking relationships and the growing dominance of Tether’s USDT token. Securitize tokenizes U.S. Treasury Bond yield fund for accredited investors Tradeteq has launched a digital asset, the USTY token, which gives investors access to a U.S. Treasury ETF and exposure to U.S. Treasury securities on the XDC Network, marking the first use of the XDC network by tokenization firm Securitize; this demonstrates the growing integration of blockchain and cryptocurrency in traditional financial markets. Bitcoin Tops $28K on Grayscale Ruling, While Crypto-Related Stocks Soar More Than 10% This article discusses a legal victory that could lead to the approval of a bitcoin ETF in the US, which would make it easier for the general public to invest in bitcoin without dealing with the complexities of buying and storing the cryptocurrency directly. This is relevant to blockchain and cryptocurrency as it highlights the potential for increased adoption and accessibility. Crypto bank SEBA obtains approval-in-principle in Hong Kong for crypto-related services Switzerland-based cryptocurrency bank SEBA has received an approval-in-principle from Hong Kong’s securities regulator to deal in securities, including crypto-related products, as it expands its presence in Asia, showing the increasing acceptance and support for blockchain and cryptocurrency in the region. Binance launches Send Cash in Latin America Binance has launched a platform called Send Cash, which allows for the transfer of crypto from Binance Pay in nine Latin American countries, enabling users to send digital funds more quickly and at reduced costs; this highlights the growing adoption of cryptocurrency in Latin America and Binance’s commitment to expanding financial inclusion and everyday use of crypto in the region. SEC Must Review Grayscale’s Bitcoin ETF Bid After Previous Rejection, Appeals Court Rules This article discusses a recent legal victory that could lead to the approval of a bitcoin Exchange-Traded Fund (ETF) in the U.S., which would make it easier for the general public to invest in bitcoin without the hassle of buying it directly or worrying about custody issues, and this is relevant to blockchain and cryptocurrency as it shows the potential for increased accessibility and mainstream adoption of bitcoin through traditional financial products. Canaan losses mount despite record Q2 Bitcoin mining revenues Canaan, a Bitcoin mining company, saw record-high revenues in Q2 due to increased sales of computing power and Bitcoin’s price recovery, but continues to struggle with profitability and net losses due to market conditions and regulatory changes, despite expanding into new mining projects in Africa and South America. Polygon Releases ‘Chain Development Kit’ for ZK-Powered Networks on Ethereum Polygon, a blockchain network known for its proof-of-stake network, is adapting to the trend of “rollups” and incorporating zero-knowledge cryptography, making it relevant to blockchain and cryptocurrency development. Zengo adds crypto inheritance feature to its keyless wallet Zengo, a cryptocurrency wallet provider, has launched a feature called Legacy Transfer that allows users to designate a beneficiary who will inherit their cryptocurrency assets if they become inactive, providing a multi-chain inheritance-style solution for cryptoassets; this is relevant to blockchain and cryptocurrency as it addresses the issue of secure self-custody and offers an innovative approach to protecting digital assets. Tokenized U.S. Treasuries Arrive to XDC Network as Digital Bond Market Grows Tokenization of real-world assets is becoming a hot trend in the digital asset industry, with the potential to transform the financial infrastructure and create a $5 trillion market in the next five years, according to a Bank of America report and Bernstein forecast; this is relevant to blockchain and cryptocurrency as it highlights the growing importance of blockchain-based tokens and their potential impact on traditional financial assets. Coinbase shares jump 14% amid market revelry over Grayscale win Coinbase shares surged after Grayscale Investments won a court battle against the SEC for its spot bitcoin ETF, potentially leading to gains for Coinbase if spot bitcoin ETFs become a reality, which could generate optimism in the cryptocurrency market, and as Coinbase has surveillance sharing agreements with venues trying to launch these funds to address concerns about market manipulation; with Coinbase’s revenues declining, approval of a spot bitcoin ETF could provide a new source of revenue for the company.