BlackRock's Ethereum ETF Plan Is Confirmed in Nasdaq Filing (CoinDesk)
BlackRock wants to create an ETF that holds Ethereum's ether (ETH), a plan that deepens the world's largest asset manager's commitment to cryptocurrencies. Following the news, ETH's price surged to its highest level of the day near $2,100, up about 3% versus just before the filing came out. It later gave back about half that gain, though it remains up about 9% versus 24 hours earlier.
UBS Allows Wealthy Clients to Trade Crypto ETFs in Hong Kong (Bloomberg)
UBS Group AG joined rivals such as HSBC Holdings Plc in allowing clients in Hong Kong to trade some crypto-linked exchange-traded funds amid a push by the city to foster a digital-asset hub. Three crypto ETFs authorized by the Securities and Futures Commission will be accessible to wealthy clients on UBS’s Hong Kong platform from Friday, a person familiar with the matter said, asking not to be identified discussing private information.
Venture Capital Lightspeed Faction Starts $285M Fund for Blockchain Startups (CoinDesk)
Lightspeed Faction, a blockchain-focused venture capital (VC) firm, is starting a new $285 million fund that will primarily invest in early-stage projects. The VC, whose team members previously worked at Amber Group, Blockchain.com and Coinbase, will also provide "crypto-native" advice to the projects it will invest in. "Faction offers founders access to a team of experienced blockchain investors and operators, servicing the industry at a time when many have fled," the firm said in a statement Thursday. "The team is primed to provide crypto-native advice, with team members hailing from."
Polygon Labs Commences $85M Grant Program to Draw Builders to Its Ecosystem (CoinDesk)
Ethereum scaling platform Polygon Labs has started a grant program to entice developers to build applications in its ecosystem. Polygon Labs is offering a total of 110 million of its native token, MATIC, worth around $85 million at the time of writing, to projects in decentralized finance (DeFi), gaming, social media and more. Direct grants of up to 2 million MATIC ($1.55 million) will be offered to later stage projects, Polygon Labs said in an emailed announcement on Thursday. Early stage projects can apply for so-called quadratic funding grants, whereby community members make donations that act as votes on where they are allocated.
Celsius to Emerge from Bankruptcy With Repayment Plan Approved (Decrypt)
Celsius Network, the failed crypto lending company, is on track to exit bankruptcy after a judge approved its customer repayment plan in a Delaware bankruptcy court on Thursday. The plan, presented to the bankruptcy court on Oct. 2, called for establishing a new entity with $450 million in seed funding. Dubbed NewCo, it will focus on Bitcoin mining and staking while being owned by Celsius’ once-spurned customers and creditors.
U.S. SEC Said to Open Talks with Grayscale on Spot Bitcoin ETF Push (CoinDesk)
The U.S. Securities and Exchange Commission (SEC) has opened talks with Grayscale Investments on the details of the company's application to convert its trust product GBTC to a spot bitcoin exchange traded product (ETF), according to a person familiar with the back-and-forth, which could have momentous implications for the crypto industry. An SEC approval of one or more ETF applications is keenly awaited by the sector, which sees that moment as a milestone that could ease everyday investors' path into digital assets. Grayscale has been in contact with both the SEC's Division of Trading and Markets and the Division of Corporation Finance since winning its court fight, said the person, who requested anonymity because the talks remain private.
Near Foundation and Polygon Labs Collaborate to Build ZK Solution (CoinDesk)
The Near Foundation, the non-profit behind the Near Protocol, has announced a collaboration with Ethereum scaling solution firm Polygon Labs in an attempt to improve interoperability across chains. The deal brings the Near protocol closer to one of the largest blockchain networks, Ethereum, and enables blockchains with WebAssembly (WASM) technology to use Ethereum’s liquidity, according to a press release.
Wintermute vs. Near Foundation: A Feud Is Brewing Around the Failed USN Stablecoin (The Block)
A substantial amount of USN, a stablecoin on the NEAR blockchain that was sunsetted after it depegged last year, has triggered a very public spat between maker Wintermute and the Near Foundation. "Keeping things quiet is often a sensible approach to adversarial situations ... However, doing things this way just doesn't feel right to me in the post 3AC/Terra/FTX/Alameda world," Wintermute CEO Evgeny Gaevoy wrote on X on Tuesday evening, in a thread he titled "How we are not really friends with Near @NEARFoundation and Aurora Labs @auroraisnear going forward."
Standard Chartered Unit, SBI Holdings Team Up To Invest $100 Million in Crypto Startups (The Block)
SC Ventures, the investment arm of the Standard Chartered bank, and SBI Holdings, the Japanese financial conglomerate, have partnered to set up a $100 million crypto vehicle in the United Arab Emirates. The vehicle, in the form of a joint venture, plans to invest in crypto across areas such as decentralized finance, tokenization, infrastructure, payments and the metaverse, the two companies said Thursday. It aims to invest globally, covering seed to Series C funding rounds.
Binance Announces Self-Custody Crypto Wallet During Conference (The Block)
Binance, the world's largest cryptocurrency exchange by volume, has launched a self-custody wallet that works within its native app. The company made the announcement during its Binance Blockchain Week conference in Istanbul, Turkey, it said in a statement. "Millions of Binance users can now explore and experience web3, without the risk of losing seed phrases or struggling with complicated onboarding processes," Binance said in its statement.
Stablecoin Issuer Circle Internet Considering 2024 IPO (Bloomberg)
Circle Internet Financial Ltd., issuer of the USDC stablecoin, is considering going public early in 2024, according to people with knowledge of the matter. The company is talking to advisers as it prepares for a potential initial public offering, said the people, who asked not to be identified discussing confidential information. Deliberations are ongoing and there’s no certainty that Circle will decide to proceed with a listing, the people said. While it’s not clear how much Circle would seek to be valued in an IPO, it was valued at $9 billion when it tried to go public in a blank-check deal in 2022.
Coatue Management marks down stake in OpenSea by 90%: The Information (The Block)
The American tech-focused investment manager Coatue Management has marked down its stake in OpenSea by nearly 90%, according to documents reviewed by The Information. Coatue reduced its previously valued $120 million stake in the NFT platform to $13 million in the second quarter of 2023, The Information reported. The move suggests that OpenSea is valued at $1.4 billion or less. Along with OpenSea, Coatue also marked down its stake in web3 infrastructure firm MoonPay by 90%.
Meta, Apple At Risk of Increased Regulation of Digital Wallets (Bloomberg)
Meta Platforms Inc., Apple Inc., Alphabet Inc. and other companies that offer digital wallets and payment apps would fall under US Consumer Financial Protection Bureau supervision under a newly proposed rule aimed at treating nonbanks more like traditional counterparts. Companies handling more than 5 million transactions per year would be regulated like banks, credit unions, and other financial institutions already under the CFPB’s supervision, the agency said in a statement Tuesday.
Robinhood to Expand Crypto Trading Into EU, Plans to Start UK Brokerage (CoinDesk)
Robinhood (HOOD), the popular trading platform, plans to start EU crypto trading and U.K. brokerage operations in the coming weeks. "With an experienced team in place, we will soon launch brokerage operations in the U.K.," Robinhood said in its third-quarter earnings statement on Tuesday. "As another step in global expansion, we are also planning to launch crypto trading in the EU following our U.K. launch," the firm added.
Arbitrum DAO May Dip Into $3.9B Treasury for Staking (Blockworks)
Arbitrum is looking to distribute more than $100 million in its native ARB token to anyone willing to to lock their tokens with the protocol’s DAO. The staking mechanism passed a temperature check early Monday morning, meaning community sentiment is positive, but a second on-chain vote is needed for the proposal to officially pass. Supporters say the payouts will put Arbitrum’s inflated treasury to use by rewarding long-term token holders. However, detractors argued that high yield would create sell pressure, and the staking proposal could make ARB appear to be a security.
FTX Wants to Sell $744M Worth of Grayscale, Bitwise Assets (CoinDesk)
Bankrupt crypto exchange FTX and its debtors have asked the U.S. bankruptcy court of Delaware to approve the sale of some trust assets, funds of Grayscale and Bitwise valued at an estimated $744 million, through an investment adviser, according to a court filing on Friday. “The Debtors’ proposed sale(s) or transfer(s) of the Trust Assets will help allow the estates to prepare for forthcoming dollarized distributions to creditors and allow the Debtors to act quickly to sell the Trust Assets at the opportune time,” the filing said. “Additionally, because the Debtors may sell the Trust Assets to one or more buyers in one or more sales, sales pursuant to the Sale Procedures will alleviate the cost and delay of filing a separate motion for each proposed sale.”
Kraken Said to Seek Partner to Help Build It a Layer 2 Blockchain Network (CoinDesk)
Kraken, the big U.S. cryptocurrency exchange, is considering several of the leading blockchain-technology firms to help launch its own layer 2 network, people familiar with the matter told CoinDesk. Such a move would bring Kraken in line with the move earlier this year by rival Coinbase to launch its own layer-2 network. Kraken is considering Polygon, Matter Labs and Nil Foundation among others about using their technology as the basis for the new network, according to the sources, who asked not to be named because the effort was not publicly disclosed and the conversations are still fluid. There may also be other teams in the discussions.
FTX Relaunch Effort Includes Celsius Winner Proof Group, Sources Say (CoinDesk)
Silicon Valley investment firm Proof Group, part of the Fahrenheit consortium that successfully bid for bankrupt cryptocurrency lender Celsius, is in the running to relaunch FTX, according to two people familiar with the plans. FTX, at the time one of the largest crypto exchanges, collapsed almost a year ago, sending shockwaves through the industry. Since then, the bankrupt exchange has received multiple bids for a potential restart, now narrowed down to a shortlist of three, according to Perella Weinberg Partners, an investment bank involved in the process.
XRP Leads Altcoin Rally as Ripple Scores Legal Wins and New CBDC Partnerships (The Block)
The price of XRP has increased by over 8% in the past 24 hours to become the top-performing digital asset in the cryptocurrency top ten. The token's price has risen by over 22% in the past week, with trading volume jumping to $2 billion from Sunday’s $1 billion, CoinGecko data shows. According to YouHodler Chief of Markets Ruslan Lienkha, there are "several factors" pushing up the price of XRP at the moment. He underscored Ripple's "quite successful confrontation" with the Securities and Exchange Commission, and the company's involvement in global CBDC projects.
The SEC Is Struggling to Hire Crypto Experts, Because They Seem to Want to HODL (The Block)
The Securities and Exchange Commission's Office of Inspector General, which supervises the financial regulator, says the agency is having a hard time hiring crypto experts who don't want to sell their digital assets to get a job. "Many qualified candidates hold crypto assets, which the Office of the Ethics Counsel has determined would prohibit them from working on particular matters affecting or involving crypto assets," the office said in a report dated Oct. 31. "This prohibition, according to SEC officials, has been detrimental to recruiting, as candidates are often unwilling to divest their crypto assets to work for the SEC."
Hong Kong Mulls Allowing Spot Crypto ETFs in Pursuit of Asia Hub (Bloomberg)
Hong Kong is assessing whether to allow exchange-traded funds that invest directly in crypto as officials step up efforts to create an Asia-Pacific digital-asset hub while tackling the fallout of the JPEX scandal. The city is weighing retail-investor access to such spot ETFs providing regulatory concerns are met, Securities and Futures Commission Chief Executive Officer Julia Leung said.
OpenSea Cuts Half of Employees as CEO Announces New Direction (The Block)
NFT marketplace OpenSea is letting go of half of its employees as the firm plots a major redirection. The firm is creating a new foundation to foster innovation, OpenSea co-founder and CEO Devin Finzer wrote in a social media thread. Doing so requires "shifting to a smaller team with a direct connection to users." "So today, we’re saying goodbye to a number of OpenSea teammates," Finzer said. The move is a part of the firm's push toward the so-called "OpenSea 2.0," which focuses on product upgrades to technology, reliability, speed, quality and experience.
US Supreme Court Agrees to Take Up Coinbase Case Involving Arbitration Jurisdiction (The Block)
The U.S. Supreme Court announced on Friday that it would hear a case involving Coinbase and whether a dispute involving a Dogecoin sweepstakes can be settled through arbitration. The move comes almost a year after Judge Sallie Kim, for the U.S. District Court for the Northern District of California, denied Coinbase's motion to take the dispute to arbitration, according to an opinion from December 2022. Arbitration can be favored by companies because it can cost less and be resolved more quickly.
BitGo and Copper Combine Crypto Custody Settlement Networks (CoinDesk)
Cryptocurrency safekeeping firms BitGo and Copper are combining their respective in-custody settlement networks, a way of accessing trading on a growing list of major exchanges without users’ assets leaving the secure confines of cold storage. The joining up of qualified custodian BitGo’s Go Network with Copper’s popular ClearLoop system will give users access to exchanges such as Bybit, OKX, Powertrade, Bitget, Gate.io, Deribit, BIT, Bitfinex, and Bitstamp.
Magic Eden, Yuga Labs Launching Ethereum NFT Marketplace to Enforce Royalties (The Block)
Solana-based NFT marketplace Magic Eden has announced it's partnering with Yuga Labs, the company behind the Bored Ape Yacht Club and Cryptopunk NFT collections, in order to launch a new marketplace for Ethereum NFTs that honors creator royalties. The marketplace is set to launch "by the end of the year," Magic Eden said in its announcement. Yuga Labs called the endeavor "the first major ETH marketplace contractually obligated to honor creator royalties."