Bitcoin ETF potential approval has been seen as a contributing factor to the cryptocurrency’s outperformance compared to other digital currencies amidst macroeconomic uncertainty, as stated by Coinbase Institutional. David Duong, the head of institutional research at Coinbase Institutional, mentioned that the difference in performance between Bitcoin and other tokens implies that the possible approval of one or more spot Bitcoin ETPs has already been partially priced in. However, the extent of Bitcoin’s outperformance if the U.S. Securities and Exchange Commission (SEC) approves ETFs remains uncertain.
Former Voyager Digital CEO Faces Lawsuits
In other news, Steve Ehrlich, former CEO of Voyager Digital, is facing lawsuits from the Commodity Futures Trading Commission (CFTC) and Federal Trade Commission (FTC) for alleged fraud and misrepresentation of customers’ government protections. The CFTC has also classified Circle’s USDC stablecoin and Bitcoin as commodities. Ehrlich is accused of defrauding customers by misleading them about the strength of his company and conducting business without proper registrations. According to the FTC, he falsely claimed that customers’ funds were protected by the Federal Deposit Insurance Corp.
Testimony in Sam Bankman-Fried Trial
Caroline Ellison, a witness in the Sam Bankman-Fried trial, concluded her testimony on Thursday. Ellison, who is Bankman-Fried’s ex-girlfriend, was questioned about her company’s accounting practices. She revealed that Alameda, the company in question, engaged with a few accountants during 2021 to 2022, but they either couldn’t or wouldn’t handle the task. Ryan Salame, former FTX Digital Markets CEO, initially prepared Alameda’s balance sheets. However, Ellison took over this responsibility, and the company’s financials have become the focal point of Bankman-Fried’s downfall.
Ethereum Mainnet’s Daily Fee Revenue at a Low Point
The daily fee revenue of the Ethereum mainnet has reached its lowest level since the DeFi boom of Summer 2020, putting ETH’s “ultra sound money” thesis to the test, as reported by IntoTheBlock. This development raises questions about the long-term prospects of Ethereum and the viability of its economic model.
Bitcoin ETF and Its Impact on the Market
The potential approval of a Bitcoin ETF has generated significant interest and speculation among investors and market observers. If the SEC approves one or more spot-based Bitcoin ETFs, it could lead to increased institutional investment and wider adoption of the cryptocurrency. This, in turn, might further boost Bitcoin’s price and solidify its position as the leading digital currency.
However, the impact of a Bitcoin ETF on the market is not entirely clear, as some experts argue that the approval has already been partially priced in. Additionally, the SEC’s decision could also influence other regulatory bodies and their approach to cryptocurrencies, either positively or negatively.
Conclusion
The ongoing developments in the cryptocurrency space, such as the potential approval of a Bitcoin ETF, lawsuits against former Voyager Digital CEO Steve Ehrlich, and the testimony in the Sam Bankman-Fried trial, highlight the complex and evolving regulatory landscape surrounding digital currencies. As the industry continues to grow and mature, it is crucial for investors and stakeholders to stay informed and adapt to the changing market dynamics.
