LianGuai Morning News | Spot BTC ETF expected to be approved from January 5th to 10th next year, signs of initial recovery in DeFi and NFT markets.

Anticipated Approval of BTC ETF and Rebound in DeFi and NFT Markets Reported in LianGuai Morning News, Set for January 5-10 Release

Headline

▌Morgan Stanley Report: Initial Signs of Recovery in DeFi and NFT Markets

Morgan Stanley stated in a research report on Thursday that there are preliminary signs of recovery in the decentralized finance (DeFi) and non-fungible token (NFT) markets, following the improved sentiment in the cryptocurrency market with the expectation of the approval of the Bitcoin exchange-traded fund (ETF) by US-listed spot bitcoin exchanges. The report suggests that this growth has occurred after a slowdown in the past two years, “so people are optimistic that the worst period for DeFi/NFT activity may be over.”

The report also notes that the Ethereum blockchain does not seem to have benefited from the recent recovery in DeFi and NFT activity and faces issues related to “network scalability, slow transaction speeds, and high fees,” as well as increasing competition from other layer-one chains.

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▌Bloomberg Analyst: Approval Window for Spot Bitcoin ETF Expected Between January 5 and 10, 2024

Bloomberg analyst James Seyffart stated on X platform that the approval window for a spot Bitcoin ETF is expected to be between January 5 and 10, 2024.

According to SEC filings, the comment period for Franklin/Hashdex ends on January 5, and the comment deadline for Ark/21 is January 10.

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Market Update

As of writing, according to coinmarketcap data:

Recent trading price for BTC is $37,690.1, with a daily change of +0.19%;

Recent trading price for ETH is $2050.6, with a daily change of +0.86%;

Recent trading price for BNB is $227.7, with a daily change of +0.49%;

Recent trading price for XRP is $0.6057, with a daily change of +0.63;

Recent trading price for DOGE is $0.0835, with a daily change of +1.41%;

Recent trading price for ADA is $0.3753, with a daily change of +0.16%;

Recent trading price for SOL is $59.33, with a daily change of -0.42%.

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Policy

▌Florida Governor: SEC is the Judge, Jury, and Executioner in the Cryptocurrency Field

Florida Governor and Republican presidential candidate Ron DeSantis strongly criticized the Biden administration’s approach to cryptocurrencies in an interview with The Washington Examiner. DeSantis said, “The SEC, under Biden’s leadership, is the judge, jury, and executioner in the cryptocurrency field, while the Federal Reserve continues to promote the development of CBDCs.”

DeSantis opposes the lawsuits brought by the SEC against cryptocurrency companies, stating, “Innovation is fleeing overseas due to regulatory reforms. I will defend the rights of Americans to hold digital assets without government interference. Cryptocurrency regulations should be made by Congress, not regulatory agencies that do not understand the industry.”

▌Congressman Tom Emmer fiercely criticizes the Treasury Department’s proposal to strengthen control over cryptocurrencies

During the Blockchain Association Policy Summit, Congressman Tom Emmer, a member of the House Financial Services Committee from Minnesota, strongly criticized the Treasury Department’s proposal to strengthen control over cryptocurrencies, criticizing the agency for having a “savior complex.”

This week, the Treasury Department proposed recommendations to lawmakers, including suggestions for new sanction tools and strengthening its authority over dollar-backed stablecoins. Deputy Secretary Wally Adeyemo stated that “dollar-backed stablecoin providers” operating outside the United States would not be able to use the dollar unless procedures are put in place to prevent terrorists from using their platforms.

Emmer stated, “They want to bring all of this into a surveillance state that they’ve created. We can’t let it happen. This is Congress’s purview, not his.”

▌US legislators claim GOP leadership dispute has led to cryptocurrency bill being postponed to next year

US Republicans had hoped that cryptocurrency legislation in the US could be passed in the House of Representatives this year, but primary lawmakers now have their sights set on 2024, by which time the Digital Asset Bill may receive approval in the Republican-controlled House. However, it still faces challenges in the Democratic-controlled Senate.

French Hill, Chairman of the Subcommittee on Digital Assets within the House Financial Services Committee, said that two major cryptocurrency bills are being considered by the House, one aimed at regulating US stablecoin issuers and another aimed at establishing a comprehensive framework for the cryptocurrency market, which may have been moved to “early 2024.”

Senator Kirsten Gillibrand (Democrat from New York), who is working with Lummis on cryptocurrency legislation, stated that “it takes time to pass laws.”

▌Experts: UK government will adopt multiple strategies to track crypto tax evaders

The UK government issued a notice on Wednesday encouraging cryptocurrency users to voluntarily report unpaid taxes to avoid penalties. Experts argue that ignorance cannot be an excuse for tax evasion, despite a 2022 government survey showing that 72% of UK cryptocurrency owners have not read their cryptocurrency tax guides.

David Lesperance, founder of tax consultancy firm Lesperance and Associates, believes that UK regulatory agencies can employ multiple strategies, including whistleblowers and recent bankrupt creditor lists, to track unreported cryptocurrency. If investors have funds in collapsed cryptocurrency companies like FTX or Celsius, they may be “designated as creditors” in the bankruptcy proceedings. Furthermore, the Treasury Department may need to invest more resources and hire companies like LianGuailantir to assist in investigations.

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Blockchain Applications

▌Horizen Ecosystem Integrated with Ascent Exchange

The Horizen ecosystem has announced its integration with Ascent Exchange and provides a simple earning opportunity through ICHI Vault, where each ICHI Vault allows depositors to deposit a single token and use it as liquidity in the underlying liquidity pool. The Vault prioritizes token earnings for depositors while preventing impermanent loss.

▌Yearn v3 launched on Polygon

According to official X account news, Yearn v3 has now launched on Polygon and aims to be the foundational layer for all DeFi yields. As open and composable as possible, v3 will gradually add new vaults and strategies before being released on other chains.

▌STASIS, the issuer of Euro stablecoins, integrates with Stellar

The issuer of Euro stablecoins, STASIS, has announced its integration with Stellar, bringing new digital versions and transparent, euro-backed stablecoins to the Stellar network. STASIS EURO is a constituent and regulator of the European stablecoin and a key participant in the market. EURS-assets are settled against Euro-Guthaben at a 1:1 ratio and reserved at the Bank of Lithuania (Zentralbank Litauens).

▌Celestia introduces Ethereum fallback feature for OP Stack integration

Celestia has announced on the X platform the introduction of Ethereum fallback feature for OP Stack integration. The fallback minimizes disruptions to end users to the greatest extent possible if errors occur while publishing L2 block data to Celestia and helps ensure that user funds do not get stuck in the L2 bridging contract. L2 can fallback to publishing its block data to Ethereum as DA call data, and once the interruption is resolved, L2 will automatically resume publishing DA to Celestia.

▌Flare Labs initiates FAssets internal testing on the Coston testnet

According to an official press release, Flare Labs has begun internal testing of FAssets on the Coston test network. The initial tests will cover all major components and key user scenarios. The FAssets system allows non-smart contract tokens such as BTC, XRP, and DOGE to be used in smart contracts on Flare in a trustless manner. By minting these non-smart contract tokens into FAssets, they can earn income or rewards in decentralized applications on the Flare network.

Once FAssets are live on Flare, users can also connect to other networks using Flare Labs’ trustless bridge network, LayerCake, or any other third-party bridges built on Flare.

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Cryptocurrencies

▌Grayscale hires John Hoffman as Managing Director, possibly preparing for the launch of a spot Bitcoin ETF

According to a memo released this week, the U.S. Securities and Exchange Commission (SEC) has been in formal contact with asset management companies before making a decision on whether to approve a Bitcoin ETF. The regulatory agency stated in the memo that it met with Grayscale on Thursday to discuss the potential conversion of the Grayscale Bitcoin Trust into an ETF. SEC officials also met with representatives from BlackRock and Nasdaq. According to another memo, while the SEC may still decide to block crypto ETFs, many industry experts expect such funds to be launched in the U.S. early next year. In recent months, the regulatory agency has delayed decisions on several Bitcoin funds and may choose to approve or reject all applications around the same time.

The Chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, has always been a candid critic of cryptocurrencies, but he recently stated in a public appearance that he will listen to his staff’s opinions on potential Bitcoin ETFs.

Grayscale recently hired John Hoffman, a longtime executive at Invesco ETF, as its CEO. Hoffman will serve as Grayscale’s director of distribution and strategic partnerships, indicating that the cryptocurrency asset management company is preparing to launch the fund after obtaining approval.

▌ Celsius Network’s proposal to transform into a Bitcoin mining business may require seeking new creditor votes

US bankruptcy judge Martin Glenn stated during a court hearing on Thursday that cryptocurrency lending institution Celsius Network may need to seek new creditor votes regarding its proposal to transform into a Bitcoin mining business. Celsius stated last week that it has downsized its post-bankruptcy business plan to focus solely on Bitcoin mining, citing the SEC’s skepticism towards its other planned business lines.

Glenn expressed disappointment in Celsius’ delayed shift and referred to the company’s need to reach an agreement with the SEC as a “record-breaking requirement.” The judge noted that this is not a transaction passed through creditor votes, and the modified agreement may face “strong opposition” from creditors.

▌ Grayscale report: About 74% of Bitcoin addresses hold less than 0.01 BTC

A report from Grayscale shows that as of November 6, 2023, about 74% of Bitcoin addresses hold less than 0.01 BTC, worth approximately $350. Only 2.3% of Bitcoin owners possess 1 BTC or more (as of November 6, 2023, each Bitcoin is worth around $35,000).

Furthermore, as of November 6, 2023, the top five wallets in terms of Bitcoin holdings are either cryptocurrency exchanges or government entities.

▌ Coinbase CEO “quite optimistic” about approval of spot Bitcoin ETF

Coinbase CEO Brian Armstrong is “quite optimistic” about the approval of a spot Bitcoin ETF. He emphasized that he does not have any “proprietary or insider knowledge” on the matter but stated, “From everything I’ve publicly read, I feel like we’re getting closer and closer to approval.”

Among the 13 potential Bitcoin ETF issuers, 10 have chosen Coinbase Custody as their custodian, including newcomer LianGuaindo Asset. Brian Armstrong stated that Coinbase has stored “billions of dollars” worth of cryptocurrencies in the past decade and added, “I think it’s a good validation of Coinbase and people’s trust in us.”

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Important Economic Updates

▌ The US purchases 2.73 million barrels of oil for its strategic reserves at an average price of $79.1 per barrel

Documents show that the US Department of Energy has signed contracts to purchase 2.73 million barrels of crude oil at an average price of approximately $79.1 per barrel. This purchase includes 930,000 barrels from ExxonMobil, 600,000 barrels from Phillips 66, 600,000 barrels from Sunoco, and 600,000 barrels from The Macquarie Group. (Jin10 Data App)

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LianGuai Encyclopedia

▌What is the Pyth network?

Like Chainlink, Pyth is an oracle service – a platform that provides data to the blockchain. However, Pyth’s market-centric “real-time data” feed is significantly faster than Chainlink, which should allow the service to better accommodate certain financial use cases.

Disclaimer: As a blockchain information platform, LianGuai’s published articles are for informational purposes only and should not be considered as actual investment advice. Please adopt the correct investment mindset and always be aware of the risks involved.

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