One week in review:
Oct. 10–16 We've selected the hottest materials of the past week for you to stay up to date with the latest crypto news: | | #1. Binance to launch $1B fund to develop BSC ecosystem | | | Binance, the world's biggest cryptocurrency exchange, announced an accelerator fund worth a whopping $1 billion this week. The funds will go toward supporting the development of the Binance Smart Chain ecosystem. | | | Binance outlined that the 10-figure sum will be part of a tiered development model across four specialist areas: Talent Development, the Liquidity Incentive Program, the Builder Program and the Investment & Incubation Program. | | | The largest benefactor of the fund is said to be the Investment & Incubation Program, which will receive around $500 million, according to Binance. The branch will focus on multichain expansion in areas such as metaverses, gaming, virtual reality and artificial intelligence. | | #2. Coinbase follows FTX and Binance in launching NFT marketplace | | | Coinbase announced on Tuesday that it is launching an NFT marketplace later this year. The platform will initially support tokens from the Ethereum blockchain and will be launched in the U.S. before being expanded globally. | | | Given that Coinbase's user base tallied in at around 68 million verified users and 8.8 million monthly active users in Q2, the firm's new NFT platform could soon mount some serious competition to giants such as OpenSea. | | | Evidence of this was seen two days after the announcement, as sign-ups for the waitlist reached almost 1.1 million people within 48 hours. In contrast, data from DappRadar shows that OpenSea has a rolling 30-day average of 261,000 active users. | | #3. Crypto lending firm Celsius Network raises $400M | | | Crypto lending platform Celsius Network raised $400 million in an equity funding round led by Caisse de dépôt et placement du Québec and WestCap. The firm said it will use the fresh capital to double its headcount to around 1,000 employees and expand its offerings and products. | | | "It's not $400 million. It's the credibility that comes with the people who wrote those checks," Celsius Network co-founder Alex Mashinsky said in an interview with the Financial Times on Tuesday. | | | Another firm to close a capital raise was crypto risk management firm Elliptic, which raised $60 million in Series C funding. The round was led by Evolution Equity Partners and included support from SoftBank Vision Fund 2, AlbionVC, Digital Currency Group, Wells Fargo Strategic Capital and SBI Group, to name a few. | | #4. Prediction of the week. SEC likely to allow Bitcoin futures ETF to trade next week: Reports | | | Regulatory approval of a physically backed Bitcoin exchange-traded fund (ETF) has eluded the crypto industry for years. A roundabout approach to the equation may become a reality, however, with a number of entities seeking approval from the U.S. Securities and Exchange Commission (SEC) for a Bitcoin ETF based on Bitcoin futures rather than on Bitcoin itself. | | | Two such ETFs, the ProShares Bitcoin Strategy ETF and the Invesco Bitcoin Strategy ETF, could see the green light from the SEC during the week of Oct. 18, according to Friday tweets from Eric Balchunas, a senior ETF analyst at Bloomberg. | | | "Bitcoin futures ETFs said not to face any opposition at SEC, according to multiple sources confirming this (aside, I'm hearing same thing)," Balchunas tweeted, posting an article from Bloomberg. "Pretty much done deal. Expect launches next week." Balchunas said he personally thinks approval is more than 90% likely. Early in October, Balchunas mentioned 75% odds for Bitcoin futures ETF greenlighting in October. | | | The commission, however, could also delay its decision. Cointelegraph also wrote a separate article this week covering comments from CFRA's senior director of ETF and mutual fund research, Todd Rosenbluth, who noted Bitcoin futures ETF approval may not arrive until 2022. | | | Meanwhile, evidence surfaced on Friday showing the groundwork being laid for a potential SEC approval of Valkyrie's Bitcoin futures ETF. Shares of the ETF received registration approval on the Nasdaq by the SEC. Although the SEC could decide to postpone a ruling for this particular ETF until December, the current deadline sits on Oct. 25. | | #5. FUD of the week. Bitmain stops shipment of Antminer crypto mining rigs into China | | | Top crypto mining equipment provider Bitmain closed its doors in China on Oct. 11. The firm was forced to stop its operations following the Chinese government's latest pushback against crypto and the devilish freedom it represents. | | | The firm also said its move to halt the shipping of crypto mining rigs was part of a response to China's carbon-neutral policies and environmental targets. However, Bitmain will continue to supply Antminer crypto mining rigs to users across the world, including those in Taiwan and Hong Kong, while the company has also upped its production capacity for its Antbox mobile mining containers. | | | "From October 11, 2021, Antminer will stop shipping to mainland China. For customers in mainland China who have purchased long-term products, our staff will contact them to provide alternative solutions," Bitmain said in an announcement. | | #6. FUD of the week. Bitcoin futures ETF will likely be delayed until 2022, says research firm CFRA | | | Even though Bloomberg's Eric Balchunas noted significant possible odds for a Bitcoin futures-based ETF approval during the week of Oct. 18 (as covered above), Todd Rosenbluth, the senior director of ETFs and mutual fund research at CFRA, expressed a different view earlier this week. | | | While he admits that a Bitcoin futures product is likely to be the first to be given the green light by the SEC, Rosenbluth asserts that the crypto sector may have to wait until next year due to the current clouded regulatory environment. | | | The researcher also suggested that regulators could be waiting for all of these products to meet their targets so that they can be approved simultaneously to avoid a "first-mover advantage." | | | Feel free to explore the most important news with Hodler's Digest: | | | |
