JPMorgan notes that the bitcoin price is already under pressure, having slipped below $40,000, and it sees the potential for “cryptocurrency ETF enthusiasm to further deflate, driving with it lower token prices, lower trading volume, and lower ancillary revenue opportunities” for firms such as Coinbase. Original
This week, spot Bitcoin ETFs recorded impressive inflows as the digital currency continued to battle the bears at the $41,000 mark. Meanwhile, the crypto scene witnessed updates on the Coinbase vs. SEC case. First week of trading: spot Bitcoin ETFs This week marked the first trading week for the recently-approved spot Bitcoin exchange-traded funds. Most products saw massive inflows, with BlackRock’s IBIT recording $500 million and Fidelity’s FBTC seeing $421 million inflows, per a Jan. 16 report. The Grayscale Bitcoin Trust (GBTC), which already commanded investments before its pivot to…
Bitcoin (BTC), the largest cryptocurrency in the market, has experienced a sharp drop below the $41,000 mark as exchange-traded funds (ETFs) for Bitcoin went live on January 12. The subsequent profit-taking, selling pressure, and outflows from Grayscale’s Bitcoin Trust ETF (GBTC) played a significant role in the downward trend. Grayscale’s Bitcoin Transfers To Coinbase Intensify On Tuesday, NewsBTC reported that six days ago, Grayscale initiated the first batch of BTC outflows from their holdings to a Coinbase, totaling 4,000 BTC (approximately $183 million) over six days. However, the asset manager…
Litigation analyst Elliott Stein thinks Coinbase will win full dismissal of the SEC’s current lawsuit against the exchange. Stein also correctly predicted Grayscale’s landmark victory over the SEC last year, which set the motion for spot Bitcoin ETFs earlier this month. Coinbase’s argument, perceived as more persuasive, hinges on the investment needing to be in a business and not merely an ecosystem, and it should come with an enforceable obligation. The perspective gained traction following a precedent set by the Ripple case, where the sale of digital assets on public…
If that were the case, it’d open up the possibility of treating collectables like Beanie Babies as securities, Coinbase lawyer William Savitt noted, in an echo of Judge Failla’s broader concerns about over-regulating commodities. Savitt added that, unlike stocks or bonds, crypto tokens don’t necessarily grant holders rights over a network. Source
“This is a fairly extreme case of a regulator wanting to have its cake and eat it too,” Dave Rodman, founder and managing partner at Rodman Law Group, told CoinDesk. “After all, the SEC deemed Coinbase sound enough to list on a US stock exchange, and it appears that it is backpedaling.” Source
Following the approval of spot Bitcoin ETFs, Grayscale has transferred some 31,638 BTC within its dedicated Coinbase accounts. According to Arkham Intelligence, the GBTC issuer moved a total of $1.3 billion in Bitcoin (BTC) since the U.S. Securities and Exchange Commission (SEC) approved 11 spot BTC exchange-traded funds (ETFs) on Jan. 10. The data available revealed transactions over three days, including Jan. 12, Jan. 16, and Jan 17. These deposits into Coinbase Prime wallets from Coinbase custody accounts all happened during the opening trading hours of the U.S. stock market.…
In a significant development that could potentially impact the Bitcoin price, Arkham Intelligence data reveals that Grayscale, the manager and owner of the Grayscale Bitcoin Trust (GBTC), has been sending a significant amount of Bitcoin to Coinbase since the launch of Bitcoin spot exchange-traded funds (ETFs) on January 12. Grayscale Bitcoin Trust Initiates Substantial BTC Outflow According to the data, four days ago, Grayscale initiated the first batch of BTC outflows from their holdings to the US-based exchange in four separate batches, totaling 4,000 BTC, which amounted to approximately $183…
YouTube analyst Crypto Capital Venture argues that if the judge rules in favor of Coinbase against the SEC, it could ignite an altcoin run with up to 100% on assets like ADA. Crypto Capital Venture looks at some of the events leading up to the decision, including that only 22 days after the SEC allowed Coinbase to go public, Gary Gensler from the SEC testified that the exchanges trading these assets do not have the regulatory framework at the SEC or CFTC. At the same time, the judge overseeing the…
Coinbase is the custodian of eight of the 11 approved Bitcoin ETFs, and several blockchain specialists and ETF consultants have raised concerns about this high concentration on one platform. The extensive involvement of Coinbase in these ETFs extends beyond mere custodianship. The digital-asset exchange is poised to provide a comprehensive suite of services, encompassing custodial, trading, and lending functions, to prominent players like BlackRock. However, this concentration of responsibilities within a single entity, Coinbase, is sparking concerns among experts in the blockchain and ETF sectors. Notably, the SEC has expressed…