BlackRock updates BTC ETF application, El Salvador’s cryptocurrency citizenship gaining attention, and additional news: Hodler’s Digest, Dec. 10-16

BlackRock updates BTC ETF filing, El Salvador’s crypto citizenship gaining traction, and more: Hodler’s Digest, Dec. 10-16

Keep an eye on BlackRock’s developments regarding its Bitcoin ETF application, the rising interest in El Salvador’s crypto-linked citizenship, and an interview with Sam Bankman-Fried’s attorney.

by Editorial Staff 6 min December 16, 2023

Key Stories This Week

BlackRock modifies spot Bitcoin ETF to facilitate greater access for banks

BlackRock has amended its spot Bitcoin exchange-traded fund (ETF) application to simplify participation for Wall Street banks by allowing the creation of new shares in the fund with cash instead of solely cryptocurrency. The new in-kind redemption “prepay” model will enable major banking institutions like JPMorgan or Goldman Sachs to serve as authorized participants for the fund, allowing them to bypass limitations that prevent them from directly holding Bitcoin or other cryptocurrencies on their balance sheets.

El Salvador anticipates selling out Bitcoin ‘Freedom Visa’ by year’s end

El Salvador’s National Bitcoin Office reports that its $1 million Freedom Visa initiative has garnered hundreds of inquiries since its introduction on Dec. 7 and expects it to reach full capacity before the close of 2023. Initiated by the local government in collaboration with stablecoin provider Tether, the Freedom Visa is a citizenship-by-donation scheme that offers a residency visa and a pathway to citizenship for 1,000 individuals willing to contribute a $1 million Bitcoin or Tether donation to the nation. The program is capped at 1,000 participants each calendar year.

Sam Bankman-Fried’s attorney claims FTX fraud trial was “nearly impossible” to win: Report

The attorney representing Sam “SBF” Bankman-Fried in his criminal trial has acknowledged that the case was “nearly impossible” to win from the beginning. In an interview, Stanford Law School professor David Mills stated he advised the legal defense of SBF to concede to the allegations made by witnesses and the prosecution, aiming to persuade the jury that Bankman-Fried intended to rescue the company. Mills also revealed that he had agreed to provide his expertise to Bankman-Fried’s defense at the request of the FTX CEO’s parents, and characterized Bankman-Fried as “the worst person I’ve ever seen do a cross-examination.”

Yearn.finance appeals to arbitrage traders to return funds after $1.4M multisig error

Yearn.finance is seeking the return of $1.4 million in funds from arbitrage traders following a multisignature scripting mistake that led to a significant portion of the protocol’s treasury being depleted. The error transpired while Yearn was converting its yVault LP-yCurve — generated from performance fees on vault harvests — into stablecoins on the decentralized exchange CoW Swap. Yearn experienced considerable slippage when it received 779,958 DAI yVault tokens from the transaction, resulting in a 63% decline in the liquidity pool value.

SEC postpones decision on Invesco Galaxy spot Ethereum ETF to 2024

The United States Securities and Exchange Commission has postponed its ruling on whether to approve or deny a spot Ether ETF proposed by Invesco and Galaxy Digital. The companies submitted the spot ETH ETF application in September. This proposed spot crypto investment vehicle is among several under consideration by the commission, which has yet to approve an ETF with direct exposure to Ether, Bitcoin, or other cryptocurrencies.

Winners and Losers

As the week concludes, Bitcoin (BTC) is priced at $42,222, Ether (ETH) at $2,250, and XRP at $0.62. The total market capitalization stands at $1.6 trillion, according to CoinMarketCap.

Among the top 100 cryptocurrencies, the leading three altcoin gainers of the week are Bonk (BONK) at 131.38%, WOO Network (WOO) at 78.34%, and Helium (HNT) at 77.66%.

The three largest altcoin losers of the week are Terra Classic (LUNC) at -15.84%, Sei (SEI) at -14.48%, and Pepe (PEPE) at -12.10%.
For further details on cryptocurrency prices, be sure to check Cointelegraph’s market analysis.

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Most Notable Quotations

“I’m a big fan of this stablecoin called Tether…I hold their treasuries. So I keep their treasuries, and they have a lot of treasuries.”

Howard Lutnick, CEO of Cantor Fitzgerald

“This [blockchain] can be utilized to ensure proper recycling and management of waste materials by tracking them from origin to destination.”

Dominic Williams, founder and chief scientist at Dfinity

“Digital currencies are the natural progression of the world’s payment system, and Europe […] is leading the way for this inevitable transition.”

Michael Novogratz, CEO of Galaxy Digital

“I believed it was nearly impossible to win a case when three or four founders are all asserting you did it.”

David Mills, criminal trial attorney for Sam Bankman-Fried

“Our bipartisan bill is the most stringent proposal on the table targeting crypto’s illicit use and equipping regulators with additional tools.”

Elizabeth Warren, U.S. senator

“We must recognize that the Central Bank is a scam. What Bitcoin signifies is the return of money to its original creation, the private sector.”

Javier Milei, president of Argentina

Prediction of the week

‘No reason’ not to invest in crypto: Arthur Hayes reiterates $1M BTC price bet

Bitcoin and altcoins are a clear investment choice in the current macroeconomic environment, according to Arthur Hayes. In a post on X (formerly Twitter) on Dec. 14, the former CEO of exchange BitMEX stated that investors have “no reason” to short crypto.

Going long on crypto is essential for success as markets anticipate the United States Federal Reserve reducing interest rates next year, Hayes contends. “At this point, there is no reason not to be long crypto,” part of his post indicated.

“How many more times must they inform you that the fiat in your pocket is a worthless piece of trash,” he wrote. Hayes further reiterated a longstanding $1 million BTC price forecast due to macroeconomic trends diminishing the value of national currencies.

FUD of the Week

Ledger addresses vulnerability after several DApps using connector library were compromised

The front end of various decentralized applications utilizing Ledger’s connector was compromised on Dec. 14. Ledger announced that it had resolved the issue three hours after the initial reports of the breach. Protocols affected include Zapper, SushiSwap, Phantom, Balancer, and Revoke.cash, resulting in the theft of at least $484,000 in digital assets. The attacker employed a phishing exploit to gain access to the computer of a former Ledger employee. The incident raised concerns regarding Ledger’s security measures.

Bitcoin inscriptions added to US National Vulnerability Database

The National Vulnerability Database identified Bitcoin’s inscriptions as a cybersecurity threat on Dec. 9, highlighting the security flaw that facilitated the creation of the Ordinals Protocol in 2022. According to the database records, a datacarrier limit can be circumvented by disguising data as code in certain versions of Bitcoin Core and Bitcoin Knots. One potential consequence of this vulnerability could be the flooding of the blockchain with substantial amounts of non-transactional data, potentially increasing network size and negatively impacting performance and fees.

SafeMoon drops 31% in five hours following Chapter 7 bankruptcy filing

The token of the decentralized finance protocol SafeMoon has plummeted 31% in five hours after the company behind it filed for bankruptcy. SafeMoon officially submitted a Chapter 7 bankruptcy application, also referred to as “liquidation bankruptcy,” on Dec. 14. This latest setback follows only a month after the U.S. Securities and Exchange Commission charged SafeMoon and its executives with breaching securities laws in what the regulator described as “a massive fraudulent scheme.” Several former supporters of SafeMoon expressed their dissatisfaction on Reddit regarding the bankruptcy, claiming they were rug-pulled by the SafeMoon developers.

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Terrorism & Israel-Gaza war weaponized to undermine crypto

Severe anti-crypto legislation may soon be enacted to address a terrorism funding “crisis” that many argue is greatly exaggerated.

Korean crypto firm secures $140M, China’s $1.4T AI sector, Huobi struggles: Asia Express

Line Next raises $140M, China’s AI market exceeds $1.4T, Sinohope stagnates due to frozen FTX deposits, and more!

J1mmy.eth once minted 420 Bored Apes… and owned NFTs valued at $150M: NFT Creator

NFT collector J1mmy.eth trades like Warren Buffett, his collection peaked at $150 million, and he once minted 420 Bored Apes alongside Pranksy.

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