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Crypto: AI Token Merger, Hashdex ‘DEFI’ ETF Launch, and Latest News

Fernanda T
Latest News
March 27 2024 4:06PM

Positive indicators hint at potential Bitcoin surge

Bitcoin (COIN:BTCUSD) is showing promising signs of an impending uptrend. One of the evidences is the increase in the number of wallets holding over 1,000 BTC and the reduction of stock on Coinbase, hitting its lowest level since 2018. These factors, coupled with accumulation by “whales” and a positive adjustment in exponential moving averages, suggest a significant upward trend. The scarcity of Bitcoins on Coinbase, combined with heightened interest from large investors, could foreshadow a substantial increase in Bitcoin’s value, setting the stage for new price records.

Additionally, Fernando Pereira, an analyst at Bitget, commented on Bitcoin’s recent move past a bearish setup, targeting its all-time high. He mentioned, “Bitcoin has surpassed a bearish formation and is now aiming for its historic peak, with $50 million in positions on the verge of being liquidated. Although this appears to be a substantial volume, it is relatively modest in the context of the current market’s low liquidity, which highlights a decrease in interest and suggests a consolidation phase.” At the time of writing, Bitcoin was down -1.95%, below the 69,000 mark.

Tuesday marks high activity in Bitcoin spot ETFs

On March 26, data from BitMEX indicates a record influx into Bitcoin ETFs, marking the highest day of entries since March 13, totaling $418 million or 5,986.1 BTC. Fidelity’s ETF (AMEX:FBTC) led with $279.1 million in entries, equivalent to 3,997.2 BTC, continuing its upward trend and raising the total to $7.49 billion or 140,883 BTC. BlackRock’s ETF (NASDAQ:IBIT) also saw a significant rise with $162.2 million in entries, while the Grayscale Bitcoin Trust (AMEX:GBTC) experienced outflows of $212.3 million. The Bitcoin ETF sector maintains a healthy flow with annual net entries of $11.7 billion or 206,659 BTC.

Hashdex’s “DEFI” Bitcoin ETF launch attracts initial interest

Wednesday marks the beginning of trading for Hashdex’s spot Bitcoin ETF (AMEX:DEFI) in the US markets, signaling strong initial interest. Hashdex, in partnership with Tidal Investments, has revamped the former Bitcoin futures ETF to focus more directly on physical Bitcoin, following the Nasdaq Bitcoin Reference Price. With a strategy involving holding 95% in physical Bitcoin and the remainder in Bitcoin futures and cash, Hashdex and Tidal aim to lead with an innovative offering in a competitive market.

GSR adjusts expectations for SEC’s approval of Ethereum ETF

GSR, a cryptocurrency sector company, has lowered its expectation for the SEC’s approval of a spot Ethereum ETF in May to 20%, a sharp decline from the 75% forecasted in January. Brian Rudick, an analyst at GSR, pointed to the apparent lack of action from the SEC, an ongoing investigation into Ether’s classification as a financial asset, and political pressures against new crypto ETFs as reasons for the adjustment. Rudick now anticipates that the approval of an Ethereum ETF could extend into 2025-2026, potentially involving litigation. At the time of writing, Ethereum (COIN:ETHUSD) was down -2.95% over the last 24 hours, trading at $3,481.09.

Token merger in AI alliance between, SingularityNET, and Ocean Protocol (COIN:FETUSD), SingularityNET (COIN:AGIXUSD), and Ocean Protocol (COIN:OCEANUSD), three pioneers in blockchain and AI, are joining forces in a proposed token merger, creating the Artificial Superintelligence Alliance (ASI). This collaboration aims to consolidate the tokens into a single ASI entity, boosting their valuations and fostering advancements in AI research and development. The announcement led to a significant price surge in the tokens, highlighting the potential for a decentralized and scalable AI infrastructure. The merger proposal will be submitted to the respective communities for a vote, aiming to form an open-source AI giant.

Near Foundation introduces on-chain signature protocol for accessing multiple blockchains

The Near Foundation (COIN:NEARUSD) has unveiled Chain Signatures, a groundbreaking protocol that allows users to sign transactions across multiple blockchains using a single Near account. This system, operational on Near’s testnet and set for mainnet launch in May, leverages a multi-party computation network (MPC) and Near’s validator protection. Besides expanding use cases for decentralized finance, Chain Signatures also supports multiple blockchains, including Ethereum and Bitcoin, eliminating the need for network-specific tokens for transactions.

Coinbase prepares defense after partial SEC ruling and expands Base usage for USDC balance custody

Paul Grewal of Coinbase Global (NASDAQ:COIN) expressed readiness to face the SEC lawsuit, despite a mixed ruling that partially recognized the allegations against the company but dismissed charges related to its crypto wallet. “We were prepared for this and look forward to learning more about the SEC’s internal views and discussions on cryptocurrency regulation,” said Grewal. This court decision negatively impacted the platform’s stock in Wednesday’s trading, signaling ongoing regulatory tension in the crypto sector. Coinbase is now gearing up to argue its position in future stages, highlighting the complex regulatory dynamics faced by cryptocurrencies.

Coinbase also announced plans to transfer a larger portion of customer and corporate USDC balances to Base, an Ethereum Layer 2 solution developed by the company itself. The initiative aims to reduce costs and speed up settlements without impacting user experience. This strategy is part of a broader move towards on-chain operations, with expectations that other companies will follow suit. Meanwhile, Base has seen a significant increase in total value locked (TVL), recently surpassing $1 billion, reflecting growing adoption and activity on the network.

KuCoin faces a $1 billion exodus following US charges

KuCoin experienced an exodus of approximately $1 billion in crypto assets within just 24 hours, a 20% reduction in assets under management. This massive outflow occurred as the exchange grappled with legal charges in the United States. Most withdrawals took place through Ethereum Virtual Machine-based networks, with net outflows on the Ethereum network reaching $840 million. This withdrawal wave follows serious accusations of anti-money laundering law violations by US federal authorities.

Conflict between Binance and the Nigerian government escalates with executive’s escape

In Nigeria, Africa’s largest crypto market, a heated dispute between the government and Binance culminated in the dramatic escape of an executive from house arrest and the country. This incident highlights the growing tension in a landscape where Nigeria, an economic powerhouse with a vast population, stands out for its significant Bitcoin adoption, driven by factors like high inflation and local currency depreciation. The controversy intensified with the government’s accusations of currency manipulation against Binance, leading to the detention of executives and restrictive measures against the company, exacerbating concerns over a potential wider crackdown on the crypto industry in the country.

21Shares launches Toncoin staking ETP on SIX Swiss Exchange

21Shares, a cryptocurrency asset manager, has launched a staking ETP for Toncoin on the SIX Swiss Exchange. This new ETP, named TONN, simplifies the staking process by eliminating the need for investors to set up and maintain their own nodes, providing an accessible way to generate passive income. This launch comes at a time when 21Shares continues to expand its portfolio of crypto products, having recently surpassed $5 billion in assets under management.

HSBC introduces Gold Token for investors in Hong Kong

HSBC (NYSE:HSBC) has introduced the HSBC Gold Token for retail clients in Hong Kong, marking its entry into the tokenized asset market. This move reflects the growing interest of the bank and local authorities in digital assets. The token represents digitized ownership of gold, combining the stability of this precious metal with blockchain technology. Regulatory approval from the Securities Commission bolsters its legitimacy. This initiative reflects the increasing digitization of real assets and strengthens Hong Kong’s position as a digital financial hub.

Crypto industry tokenizes diamonds in new fund

Diamonds are entering the blockchain era through tokenization, with Oasis Pro launching a token on the Avalanche C-Chain that represents a share of the Diamond Standard Fund, a collaboration between Diamond Standard Commodities and Horizon Kinetics. This pioneering move aims to make the estimated $1.2 trillion diamond market more accessible to investors. This initiative aligns with the growing trend of real asset tokenization, with major financial institutions exploring this innovation. The fund, aligned with the Diamond Standard Index, promises to open new investment avenues for pension funds and retirement accounts in the US.

UK’s FCA includes social media influencers and crypto memes in financial rules

The UK’s Financial Conduct Authority has clarified that social media influencers and crypto memes are subject to the country’s financial promotion rules. The regulation now encompasses communications that could be perceived as financial promotions, including crypto memes. The FCA reiterated that any content that could influence investment activity must follow its guidelines, including risk warnings and a reflection period for new investors.

US Senate candidate calls for SEC Chair Gary Gensler’s resignation

John Deaton, running for the US Senate, has called for the resignation of SEC Chair Gary Gensler, alleging that under his leadership, the commission has strayed from its mission to protect investors to pursue political agendas. Deaton criticizes the application of outdated laws to new technologies and accuses Gensler of harming investors in notable cases like Ripple and the rejection of a Bitcoin ETF. He also alleges a partnership between Gensler and Senator Elizabeth Warren, compromising the SEC’s independence.

Munchables recovers $62.5 million after hack

Munchables, a blockchain-based game on the Blast Ethereum Layer 2 network, announced the full recovery of the $62.5 million lost in a recent cyber attack. The attacker returned the necessary private keys, allowing the funds to be recovered without demanding a ransom. According to Pacman, the network’s founder, additional security measures are being implemented, including securing $97 million in a multisig account, to prevent future vulnerabilities and teach a valuable lesson about the importance of security in development.

Bitcoin mining profitability increases in February, reports Jefferies

According to investment bank Jefferies Financial (NYSE:JEF), Bitcoin mining became more profitable in February due to a 15% increase in the cryptocurrency’s value, contrasting with a more moderate 9% growth in the global hashrate. US mining companies saw their share of total Bitcoin production slightly decrease, from 19% to 17.5%, as new competitors entered the market. The report also highlights Marathon Digital’s (NASDAQ:MARA) strategy of acquiring hosting services to strategically position itself before the next halving, a tactic seen as advantageous by Jefferies.

Katena exonerated in $150 million dispute with Coinmint

A panel of arbitrators concluded that Katena Computing did not deceive Coinmint in a $150 million bitcoin mining equipment purchase agreement, which Coinmint claimed it never received. The decision dismissed all of Coinmint’s charges against Katena and DX Corr, and further ordered Coinmint to pay over $14 million to Katena. Despite the favorable decision for Katena, Coinmint intends to contest the arbitration award, arguing flaws in the process.

BOB successfully combines Bitcoin and Ethereum in funding

BOB, an innovative Layer 2 platform that merges the robustness of Bitcoin with Ethereum’s flexibility, has successfully raised $10 million in its initial funding phase. Led by prominent investors, the initiative aims to integrate Ethereum-style smart contracts into the Bitcoin ecosystem, overcoming technical challenges with innovative solutions like BitVM to maintain network efficiency.

peaq secures $15 million to expand decentralized infrastructure networks

peaq, a Layer 1 blockchain project focused on decentralized physical infrastructure networks, has raised $15 million in funding led by Generative Ventures and Borderless Capital. The investment, which saw participation from several other investment firms, aims to strengthen the peaq ecosystem by developing solutions such as multi-chain identities for machines, AI agents, and data verification. The capital will also support the development of peaq’s SDK, making it easier to build and implement applications by DePIN projects, which integrate hardware with web3 to create real and sustainable value.