The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk news reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Wednesday! Here’s what you need to know today in crypto: |
- The mechanics of BlackRock’s proposed spot bitcoin ETF have changed.
- The SEC has not met legal requirements to sue, Binance said.
- Justin Sun said assets held on HTX and Poloniex are safe after last month’s hack that saw more than $200 million removed.
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CoinDesk Market Index (CMI): 1,604 −1.9%
Bitcoin (BTC): $41,213 −1.4%
Ether (ETC): $2,181 −1.7%
S&P 500: 4,643.70 +0.5%
Gold: $1,996 +0.9%
Nikkei 225: $1,996 +0.9% |
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A change to the mechanics of BlackRock's proposed spot bitcoin (BTC) ETF opens the door for Wall Street banks, which face restrictions holding cryptocurrencies, to play a key role. BlackRock recently made it so authorized participants (APs) – a vital part of the ETF ecosystem – will be able to create new fund shares with cash, rather than only with cryptocurrency. As highly regulated U.S. banks are unable to hold bitcoin themselves, this set-up would enable the likes of JPMorgan or Goldman Sachs – firms with some of the largest balance sheets in the world – to act as APs to BlackRock's ETF. (Whether they want to is another matter.) The cash APs use in this process can then be exchanged into bitcoin by an intermediary and warehoused by the ETF's custody provider, as per a memo filing relating to a Nov. 28 meeting involving the Securities and Exchange Commission, BlackRock and Nasdaq. |
Binance, Binance.US and Changpeng Zhao argued that the U.S. Securities and Exchange Commission (SEC) did not meet the requirements of the “Howey Test” in its suit against the two companies and their founder in a new filing Tuesday. Binance and Zhao filed a reply to the SEC alongside Binance.US, which submitted its own separate but similar filing arguing the SEC did not show that the exchanges’ U.S. customers had any contracts that would meet the definition of an “investment contract,” or that other elements of the Supreme Court case were met. It’s the latest bid to dismiss the lawsuit filed by the federal regulator in June, when the SEC alleged that Binance and Binance.US allowed the general public to buy and trade unregistered securities by listing certain cryptocurrencies and offering a staking service. Crypto mogul Justin Sun has said that assets held on HTX and Poloniex are “100% safe” after last month’s hack that saw more than $200 million siphoned out of the exchanges. Both exchanges have opened withdrawals for certain assets, although several altcoins remain locked. Bitcoin (BTC) and Tron (TRX) are the two digital assets that can be withdrawn. This led to both tokens trading at a premium on Poloniex over the past few weeks, which meant users would have to take a haircut of up to 10% to liquidate their asset and withdraw another. The freeze came after hackers stole $114 million out of Poloniex’s hot wallets on Nov. 10; this was followed up by $97 million being stolen from HTX and blockchain protocol Heco Chain. |
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Market Insight: ARK Invest Sells Coinbase Shares for Third Straight Day |
Cathie Wood’s investment management firm, ARK Invest, sold Coinbase (COIN) stock for a third straight day as the shares held steady within 5% of the year’s high. The firm offloaded a total of 82,255 shares worth about $11.5 million at Tuesday’s closing price from the ARK Innovation (ARKK), ARK Next Generation Internet (ARKW) and ARK Fintech Innovation (ARKF) exchange-traded funds (ETF). It has reduced its stake in the crypto exchange on all but two trading days this month. Coinbase stock has been surging as bitcoin (BTC) climbs. The largest cryptocurrency by market cap has added about 150% this year, while Coinbase has almost quadrupled. |
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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