Crypto Guides, Knowledge & Insights

Prometheum Receives Regulatory Approval in the United States for Clearing and Settling Digital Asset

According to CoinDesk, Prometheum Inc. has announced that it has obtained the latest regulatory approval under the rules of the U.S. Securities and Exchange Commission (SEC) to test a fully compliant encrypted platform complying with the SEC regulations. As per the extended license documents released by FINRA (Financial Industry Regulatory Authority), Prometheum has become the first and only company to obtain a special-purpose encrypted broker-dealer license under SEC rules. It has been granted approval to carry out digital asset security trading clearance and settlement.　　Prometheum plans to commence providing digital asset custody services to asset management firms, hedge funds, and other financial institutions in the first quarter of 2024. By the second quarter, the company aims to offer trading and settlement services to customers—starting with institutional clients and subsequently catering to retail investors. Kaplan also sees this as a potential platform for traditional securities tokenization.　　Prometheum has proposed that it disclosed to regulatory authorities the securities it intends to support when it receives approval from one of the approximately 70 SEC-regulated Alternative Trading Systems (ATS). Some of these have already been classified as securities by the agency. For instance, it informed regulators that it could offer assets such as Flow (FLOW), Filecoin

2023-12-22Deep Dive

QCP Capital: Bitcoin Price Could Retreat to $36,000 Before Resuming the Upward Trend

QCP Capital stated in their report that the expected approval of a Bitcoin spot ETF in January next year is anticipated to initially face weak demand, potentially leading to a scenario of “selling on the news.” This could cause short-term volatility in Bitcoin and shift attention towards Ethereum.　　According to QCP Capital: “The actual demand for a Bitcoin spot ETF might start off lower than the market expects. Projected resistance for Bitcoins price lies within the range of $45,000 to $48,500, with a potential retracement to $36,000 before resuming the upward trend. Ethereum is seen as a potential secondary investment choice, and the market is expected to shift focus from Bitcoin towards Ethereum. Speculative interest in the upcoming Ethereum spot ETF might drive up the price of Ethereum, even before the ETFs actual launch.”　　

2023-12-22Deep Dive

Three Arrows Capital Liquidation Advisor: Expected Asset Recovery for Creditors Around 45.74%

Three Arrows Capital (3AC) liquidators at Teneo estimate that creditors can recover about 45.74% of the assets from the bankruptcy estate.　　In a report submitted to creditors in December, Russell Crumpler and Christopher Farmer, liquidation co-leaders at Teneo, noted that as of December 18, the companys assets were valued at $1.16 billion, while the recognized value for distribution to creditors was estimated at $2.7 billion.　　The report indicates that Teneo has resolved litigation involving various parties, including DCG, Genesis, and BlockFi, increasing the reported company assets by around $292 million. BlockFis settlement is still pending approval. The report also states that 154 claims for 3AC assets have been filed, totaling $3.4 billion. Of these, $2 million in claims were unrecognized for distribution, while claims worth $32.2 million have been rejected or are expected to be rejected, and disputed claims worth $76 million exist.　　Furthermore, the report mentions that Zhu Su, co-founder of 3AC, completed his house arrest on December 20 following his arrest in Singapore. Meanwhile, the liquidators continue to investigate the relationship between 3AC and Tai Ping Shan, a company closely associated with it. Legal expenses in the bankruptcy proceedings have accumulated to $49.7 million.　　

2023-12-22Deep Dive

BlackRock Files Revised Bitcoin Spot ETF, Commits to Cash Purchase and Redemption Mechanism

On Monday, BlackRock submitted a revised application for a spot Bitcoin ETF to the SEC. The filing revealed that BlackRocks ETF would employ a cash purchase and redemption mechanism, a model that the SEC favors.　　Earlier, on December 14th, Invesco and Galaxy had submitted the third amended S-1 filing for the “Invesco Galaxy Bitcoin ETF” to the U.S. SEC. The document pledged a commitment to focus on launching a Bitcoin ETF created solely through cash.　　Eric Balchunas, an ETF analyst at Bloomberg, pointed out that this is a clear signal indicating the SECs preference for cash-based creation methods for initial ETF product approvals.　　

2023-12-21Deep Dive

Hegic Shutdown Raises Insider Trading Suspicions, Potentially Earning $17 Million via Whiteheart

Hegic, an on-chain options protocol, recently raised a suspected profit of $17 million through internal transactions by acquiring affiliated project Whiteheart, a hedging protocol. At the end of last month, Molly Wintermute, an anonymous developer from Hegic, announced abandoning the development plans for Whiteheart, stating that Whiteheart would refund $28 million to investors and shut down. The redemption announcement caused a six-fold surge in the Whiteheart token, reaching $3500. Blockchain data reveals that three days before the Whiteheart project closure announcement, Hegics treasury (separate from Whitehearts treasury) acquired almost one-third of the WHITE token supply. Added to a prior September purchase of WHITE, Hegics treasury now holds an amount equal to half of Whitehearts treasury, amounting to $17 million worth of Ethereum.　　Experts suggest that from a securities law perspective, the Whiteheart transactions may raise issues related to trust responsibilities, shareholder rights, and asymmetric information in the cryptocurrency market. While Hegic and Whiteheart are organized differently from traditional companies, and WHITE is not a stock, the involvement of the U.S. SEC in cryptocurrency regulation could potentially alter this scenario.　　

2023-12-21Deep Dive

Survey: 87% of Interviewed Institutions Invest in Blockchain Protocol Tokens

Sygnum, a digital asset bank, released its inaugural institutional crypto market report last week. According to the survey results, 87% of respondents invested in “blockchain protocol tokens, such as Bitcoin, Ethereum, and Solana (Layer 1 protocols).” Additionally, 57% of respondents plan to increase their allocation of crypto assets in the future.　　Regarding the reasons for investing in cryptocurrencies, the report noted that 66% of respondents stated it was to “capture exposure to the broader trend of cryptocurrencies,” while 46% mentioned portfolio diversification as their investment motivation.　　Moreover, 37% of investors “consider cryptocurrencies to be a better investment than traditional assets, highlighting their appeal as a hedge in traditional markets.”　　This report involved Sygnums survey of over 150 institutional investors with an average of more than 10 years of investment experience in early Q4. The participants included Sygnums institutional client base and equity investors, banks, hedge funds, multi-family and single-family offices, foundations, and asset management companies.　　

2023-12-21Deep Dive

Major Unlockings Expected for NYM, EUL, and ID This Week

Token Unlocks data indicates that this week (December 18th to December 24th), NYM, EUL, and ID will experience significant unlocks:　　On December 20th at 8:00, Nym token NYM will unlock 3.34 million tokens (approximately $601,000), accounting for 0.53% of the circulating supply.　　On December 21st at 1:54, Euler token EUL will unlock 123,340 tokens (approximately $387,000), constituting 0.66% of the circulating supply.　　On December 22nd at 8:00, SPACE ID token ID will unlock 18.49 million tokens (approximately $5.17 million), accounting for 4.29% of the circulating supply.　　

2023-12-18Deep Dive

Loss of Digital Assets Worth $1.4 Billion Due to Issues with Private Key Management

According to IntoTheBlock data, analysis of DeFi vulnerabilities reveals that most digital asset losses originate from flaws in mechanism design and smart contract vulnerabilities, highlighting the urgent need for comprehensive audits. Its worth noting that issues related to private key management resulted in digital currency losses valued at $1.4 billion.　　

2023-12-18Deep Dive

The First Bitcoin Spot ETF Could Launch Within the Next 23 Days

Cryptocurrency influencer Crypto Rover posted on X platform stating that the first Bitcoin spot ETF might be launched within the next 23 days. Among the 13 spot Bitcoin ETF applications listed by Crypto Rover, 12 were submitted this year, with the most recent application submitted on December 5th. Only one application was submitted before 2023, which is the Grayscale Bitcoin Trust (GBTC) application, resubmitted on October 19, 2021.　　

2023-12-18Deep Dive

Cathie Wood Sells Some Crypto Assets and Invests in Social Commerce Giant Pinterest

Cathie Wood-led Ark Invest heavily acquired shares of the social commerce company Pinterest on Friday while simultaneously reducing holdings in cryptocurrency-related stocks.　　To detail, Ark acquired a total of 572,445 shares of Pinterest, amounting to approximately $21.39 million. Additionally, Ark also sold 18,962 shares of Coinbase valued at $2.8 million and 12,000 shares of GBTC valued at $409,200.　　

2023-12-18Deep Dive

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