Catégorie : Crypto News

BlackRock’s spot Bitcoin (BTC) exchange-traded fund (ETF) IBIT became the most successful ETF launch in over 10 years, following the $418.8 million in net flows registered on Dec. 16.

Nate Geraci, CEO of The ETF Store, highlighted that IBIT had beaten approximately 2,850 ETFs. He added:

“In other words, IBIT has more lifetime inflows than any ETF launched since 2014. Did this in just over [11 months].”

Since its launch, IBIT has amassed $36.3 billion in positive net flows, surpassing the $36.2 billion in inflows received by US-traded spot Bitcoin ETFs, according to Farside Investors’ data.

The amount is nearly 3x higher than the $12.4 billion in inflows received by the second-largest spot Bitcoin ETF, FBTC, managed by Fidelity.

Additionally, IBIT holds the record for the most significant daily inflow among the Bitcoin ETFs, with over $1.1 billion captured in a single day. This is over 2x higher than FBTC’s single-day inflow record of $473.4 million, the second-largest daily inflow by a spot Bitcoin ETF.

Notably, spot Bitcoin ETFs secured over $36 billion in year-to-date flows despite Grayscale’s GBTC’s $21 billion in outflows since its conversion. 

ETFs in the spotlight

Crypto-related ETFs were one of the key topics for the market this year. They provided US-based institutional investors with a regulated way to gain exposure to Bitcoin and Ethereum (ETH).

Analysts see crypto ETFs as one of the main drivers of Bitcoin’s stellar growth this year. In a recent report, Bitfinex analysts pointed out ETF adoption is one of the main catalysts capable of changing Bitcoin’s patterns from previous cycles.

Additionally, Bloomberg senior ETF analyst Eric Balchunas highlighted how fast Bitcoin ETFs are growing. The total assets under management by these products traded in the US, including futures and leveraged ETFs, reached $130 billion, surpassing gold ETFs’ $128 billion.

Even taking just the nearly $117 billion in AUM from spot Bitcoin ETFs, Balchunas stated that it is “unreal” how close they are to gold ETFs within just 11 months after launch. Bitwise also considers ETFs one of the two main catalysts for significant growth in Ethereum over the next year.

Mentioned in this article

Federally approved digital asset securities platform Prometheum has filed a defamation lawsuit against crypto commentator Matthew Blumberg.

The dispute stems from a November 6 post on X, where the critic accused the firm of operating “an illegal unregistered commodities exchange” and engaging in shady dealings with the U.S. Securities and Exchange Commission (SEC).

Free Speech or Defamation?

Prometheum’s complaint, filed in the New York Supreme Court, argues that Blumberg’s statements were false, baseless, and damaging to its reputation. Further, the company claimed that the crypto enthusiast sought to boost his public profile as an industry expert at its expense. The legal filing cites several of the analyst’s offending posts, including one where he stated:

“They’re the scammers who testified in front of Congress reading the SEC’s talking points in exchange for a sweetheart deal where they were the only ones able to get a broker-dealer license to trade crypto securities.”

In the same post, Blumberg bragged about “constantly talking sh*t” about Prometheum while calling on the Commodity Futures Trading Commission (CFTC) to investigate the company for allegedly unlawfully operating a commodities exchange with regard to its custody of Ethereum.

In another post, the crypto watcher crowed over a possible implosion of the digital assets platform due to the impending departure of current SEC Chair Gary Gensler, whom he implied was some sort of protector of the firm.

Prometheum claims that these remarks, among others, were not only defamatory but also designed to stoke public distrust. The company further asserted that the comments have harmed its credibility and market share.

Blumberg Fires Back

However, the analyst, supported by prominent legal representation from Boies Schiller Flexner, has defended himself against the allegations, filing a countermotion to dismiss on December 16.

In the filing, he argued that his observations were foreclosed by New York’s anti-SLAPP laws, designed to protect individuals and entities from lawsuits intended to silence or intimidate them from exercising their free speech rights on matters of public interest.

The crypto enthusiast described his social media comments as “opinions about well-documented concerns” regarding the SEC’s dealings with Prometheum.

He also reiterated that the firm was the first and only recipient of a special-purpose broker-dealer (SPBD) crypto license from the SEC, issued right before one of its co-CEOs testified before Congress in favor of the regulator. Many in the crypto community have long considered this a “sweetheart deal,” especially given how prominent players like Coinbase and Robinhood have not been able to acquire the same license despite trying on numerous occasions.

Even New York Congressman Ritchie Torres previously called for an investigation into the circumstances under which the platform received its SPBD license from the financial watchdog.

Additionally, Blumberg claimed that the company had contacted his mother in an apparent bid to bully him through her. He said they wanted him to sign a statement extolling their “innovative approach to crypto markets,” but when he refused, they sued.

Dennis Porter, founder of the Satoshi Action Fund, has unveiled a draft of an executive order crafted for President-elect Donald Trump to establish a Strategic Bitcoin (BTC) Reserve within the Exchange Stabilization Fund (ESF). 

The order allows for an initial allocation of up to 2% of the ESF’s total portfolio value over an 18-month pilot period. Furthermore, it would use BTC in the US government custody as the foundation for the Reserve.

The draft executive order sets out a roadmap for incorporating Bitcoin into the ESF, a fund traditionally used to stabilize the US dollar and respond to macroeconomic shocks. It also outlines a framework for integrating Bitcoin as a foreign-currency-like reserve asset while ending the auction of confiscated Bitcoin held by US authorities.

Draft suggestions

Among its primary provisions is the US Treasury would be authorized to acquire, hold, and manage Bitcoin as part of the ESF portfolio. Additionally, Bitcoin would be treated similarly to foreign reserves like gold or foreign currencies.

Moreover, the draft suggests that the Treasury establish a working group to develop custody systems to ensure the secure management of Bitcoin holdings. This includes evaluating solutions that provide the Treasury with direct access to reserves and leveraging existing custody infrastructure, such as systems currently employed by the US Marshals Service (USMS).  

The proposal would discontinue the auction of forfeited Bitcoin by the USMS. Instead, approximately 200,000 BTC currently in US custody — valued at $20.6 billion at $103,000 per Bitcoin — would serve as the initial foundation of the Strategic Bitcoin Reserve. 

The draft also includes robust oversight mechanisms to balance innovation with accountability. The Treasury would issue semiannual reports detailing Bitcoin transactions, holdings, and risk management strategies to Congress and the President. 

Additionally, the Treasury Inspector General and the Government Accountability Office (GAO) would conduct regular audits, with annual public summaries to ensure transparency.  

Jumpstarting legislation

While the ESF provides an initial vehicle for Bitcoin reserves, the draft acknowledges that it may not be a permanent solution. 

Within 24 months, the Treasury would be required to deliver a comprehensive report to Congress outlining the limitations and benefits of using the ESF as a Bitcoin custodian, alternative frameworks for reserve management, and legislative recommendations to enshrine the Strategic Bitcoin Reserve into US federal law.  

The proposal emphasizes that creating a Bitcoin reserve would not interfere with the Federal Reserve’s independence in setting monetary policy. This provision addresses concerns that Bitcoin integration could complicate traditional monetary frameworks or undermine confidence in the US dollar.  

On the contrary, by leveraging Bitcoin’s position as a non-sovereign global asset, the proposal aims to hedge against macroeconomic risks, stabilize the dollar, and position the US as a leader in financial innovation.  

If the draft is enacted, it would mark the largest government-led embrace of Bitcoin to date, with profound implications for the digital asset industry, US economic policy, and global reserve practices.

Mentioned in this article

TL;DR

• Binance expanded support for Simon’s Cat (CAT) by including it in multiple trading programs.
• The token reacted to the news with a rapid price increase.

The Binance-Fueled Pump

The world’s biggest cryptocurrency exchange recently added further support for the meme coin launched on the BNB chain – Simon’s Cat (CAT). First, it included it in its HODLer Airdrops Portal. The program rewards BNB holders with token distributions based on historical snapshots of their balances.

“By subscribing BNB to Simple Earn, users are automatically eligible for HODLer Airdrops (as well as Launchpool and Megadrop rewards),” Binance explained.

The company said it will distribute 1,143,000,000,000 CAT (12.7% of the token’s maximum supply) to lucky users.

Shortly after, Binance listed the meme coin with a seed tag. The exact trading pairs available to users are CAT/USDT, CAT/BNB, CAT/FDUSD, and CAT/TRY. It is worth noting that the seed tag category identifies newly listed and innovative cryptocurrency projects that may carry higher risk and volatility.

Earlier today (December 17), the exchange doubled down on its support for Simon’s Cat, adding it to the Binance Simple Earn, “Buy Crypto,” Binance Convert, Binance Margin, Binance Auto-Invest, and Binance Futures programs. 

Somewhat expectedly, the aforementioned efforts resulted in a massive price spike for CAT. Its valuation soared by approximately 50% on a daily scale, hitting a new all-time high of $0.00006330 (per CoinGecko’s data). In the following hours, the price slightly retraced to the current $0.00005597.

The Previous Support

Binance initially embraced Simon’s Cat in October of this year when it introduced 1000CATUSDT perpetual contracts in its futures program. The offering allows up to 75x leverage and supports the multi-assets mode. In other words, it enables clients to use numerous margin assets such as Bitcoin (BTC) when trading the contract. 

Perpetual contracts let traders bet on the price movements of a certain token without directly owning it. With no expiration date, they can be held indefinitely. While such contracts offer opportunities for significant rewards, the high leverage and constant exposure to liquidation make them inherently risky, especially for inexperienced traders.

Other meme coins that have recently enjoyed additional support from Binance include Peanut the Squirrel (PNUT), Pepe (PEPE), Ponke (PONKE), and others. 

Ethereum (ETH) is poised for a resurgence in 2025 as it rides a wave of emerging trends to capitalize on a $100 trillion opportunity in tokenizing real-world assets (RWAs), according to a letter shared with investors by Bitwise’s senior investment strategist, Juan Leon. 

The document highlighted that the crypto market was marked by two narratives this year: Bitcoin’s (BTC) new all-time high, driven by spot exchange-traded funds (ETF) approval in the US, and Solana’s (SOL) meteoric popularity as retail investors piled into memecoin speculation. 

As a result, Ethereum’s 66% year-to-date return paled when compared to BTC’s 130% gain and SOL’s 106% rally.

ETFs signaling changes

However, recent signs suggest a reversal of sentiment. Over the past 10 days, Ethereum ETFs have attracted a staggering $2 billion in net inflows, eight times the $250 million net inflows recorded in the preceding four months.

On Dec. 5, data from Farside Investors pointed out that the spot Ethereum ETFs traded in the US registered $428.5 million in inflows, a new daily record propelled by $292.7 million directed at BlackRock’s ETHA.

Moreover, Ethereum ETFs saw less than three-digit daily inflows in only 3 out of the 10 past trading days saw inflows.

This surge indicates that institutional and retail investors are warming up to Ethereum again.

RWA growth

The tokenization of real-world assets might be the fuel for Ethereum’s resurgence. This process involves digitizing traditional assets — such as Treasury bills, real estate, and commodities — into blockchain-based tokens, offering faster, cheaper, and more efficient trading and settlement.  

Tokenization is no longer a far-off dream. Major players like BlackRock, Franklin Templeton, and UBS have adopted blockchain technology to tokenize RWAs. BlackRock’s tokenized treasury fund, BUIDL, currently has a market cap of $544 million. 

According to the letter, real-world assets are valued at roughly $100 trillion globally, creating a staggering opportunity. While it could take decades for significant portions of this market to shift to blockchain rails, Leon sees immense potential upside. 

Considering that Ethereum holds 81% of the RWA market, Leon estimates that fees generated from RWA-linked activity on Ethereum could ultimately surpass $100 billion annually, more than 40 times the network’s $2.4 billion in fees year-to-date.

The letter attributes Ethereum’s dominance to its status as the most reliable and decentralized smart contract platform, secured by its long history of supporting decentralized applications and its vast distributed validator network.  

As the world’s largest asset managers explore tokenized assets, Ethereum remains the “battle-tested” standard. Furthermore, regulatory tailwinds could accelerate this transformation, setting Ethereum for potentially explosive growth. 

The letter noted that an increasingly pro-crypto U.S. Securities and Exchange Commission (SEC) may provide much-needed clarity, removing barriers to adoption and institutional participation.

Mentioned in this article

Lido, the prominent liquid staking protocol, has announced the discontinuation of its liquid staking protocol on Polygon, marking the end of its operations over the coming months. Following extensive discussions on the DAO forum and a community vote, LDO token holders officially approved the decision to phase out Lido on Polygon.

The process is set to begin shortly.

Lido’s Exit from Polygon

Initially launched in 2021 through a proposal by Shard Labs, Lido on Polygon faced challenges such as limited user adoption, insufficient rewards, and high resource maintenance demands, according to the official blog post. Additionally, the evolving DeFi space – specifically the growing focus on zkEVM solutions – has reduced the demand for liquid staking on Polygon PoS, which hindered Lido’s ability to serve as a foundational DeFi layer.

These factors, combined with Lido’s strategic focus on Ethereum, as outlined in the GOOSE and reGOOSE governance initiatives, led to the reevaluation and eventual discontinuation of Lido on Polygon.

The phase-out process carries several key implications for stMATIC holders. As such, rewards will be discontinued during the transition, and a temporary pause in operations is scheduled between January 15-22, 2025, during which no withdrawals will be processed.

Users are encouraged to unstake their MATIC tokens through the Lido on the Polygon front-end before June 16, 2025. After this deadline, front-end support will cease, and withdrawals will only be accessible through blockchain explorer tools.

The timeline begins on December 16, 2024, when new staking will no longer be accepted. A six-month withdrawal period will follow, spanning December 16, 2024, to June 16, 2025, to facilitate a smooth transition for users.

Lido has previously halted its operations on Solana last year. This decision came after a community vote, citing financial sustainability concerns and low fees as key issues. Lido was initially launched on Solana on September 8, 2021.

Setbacks for Polygon Ecosystem

Lido’s current decision to wind down on Polygon comes after lending protocol Aave proposed discontinuing its operations. The proposal was made by Aave’s founder, Marc Zeller, on December 13 in response to Polygon’s governance request regarding a new bridging mechanism, which raised concerns about the risk profile of bridged assets.

In a related development, liquid restaking protocol Swell announced that its Layer 2 is migrating to the Optimism Superchain, moving away from the Polygon Chain Development Kit (CDK) as part of this transition in October.

The European Securities and Markets Authority (ESMA) has released its final guidance ahead of the full implementation of the Markets in Crypto-Assets (MiCA) regulations across the region, according to a Dec. 17 statement.

This marks a culmination of 18 months of regulatory efforts, during which ESMA developed over 30 Technical Standards and Guidelines in collaboration with the European Banking Authority (EBA).

Strengthening market oversight

A significant focus of ESMA’s guidance is tackling market abuse in crypto markets. The publication includes a structured reporting format for suspected abuse and establishes protocols for cooperation between regulators across borders.

These measures aim to equip authorities with tools to identify market manipulation and enforce penalties effectively.

The document also addressed reverse solicitation, outlining the conditions under which crypto-asset service providers (CASPs) can engage with clients.

Additionally, it sets guidelines for suitability assessments, ensuring CASPs provide advice tailored to investors’ needs. ESMA emphasized the alignment with existing financial regulations to promote consistency across advisory services.

Meanwhile, investor protection remains central to the framework. The guidance highlighted policies CASPs must implement to safeguard client transfers and outlined requirements for classifying crypto-assets as financial instruments.

MiCA implementation phases

Europe’s MiCA regulation will take full effect at the end of this month. The first phase, which came into force six months ago, targeted stablecoins.

Since its rollout, stablecoin issuers like Tether have faced significant compliance challenges, resulting in its USDT stablecoin being delisted across some platforms.

The second phase will focus on broader crypto industry regulations, addressing crypto-asset operations, market integrity, and investor protections.

ESMA believes its final guidance will support the consistent and effective implementation of MiCA across the region. However, Verena Ross, ESMA Chair, noted:

“It is crucial to recognize that the new regime would not suffice to eliminate the inherent uncertainty and volatility in the crypto-assets market, and investors should fully understand the risks before engaging in this space.”