SEC Finally Opens the Door to Bitcoin ETFs 🚀
Welcome to the Daily Tribune on Thursday, January 11, 2024 ☕️
Hello Cointribe! 🚀
Today is Wednesday, January 10, 2024, and like every day from Tuesday to Saturday, we summarize the news of the last 24 hours that you shouldn't miss!
But first…
✍️ Cartoon of the day:
A quick look at the market…
🌡️ Temperature:
Sunny ☀️
24-hour crypto summary ! ⏱️
🌊 Ripple Makes Waves with Massive XRP Sell-off
Ripple, the company behind XRP, recently unlocked 1 billion XRP tokens, half of which have already been liquidated. This sale operation saw 100 million XRP, worth $56 million, transferred to intermediate accounts. Ripple retained 200 million tokens in its treasury, with the rest being released into circulation. Within 48 hours, 45 million XRP were deposited onto centralized exchanges, leaving Ripple with 100 million XRP in liquid form for future sales.
These Ripple sales, which represent a significant portion of daily XRP volumes, have a short-term impact on its price.
The liquidation of 100 million XRP by Ripple, beyond simple treasury management, can be interpreted as a strategic move in response to the evolving regulatory and financial landscape. This sale suggests that Ripple anticipates increased volatility or significant changes in the crypto ecosystem, potentially related to the approval of Bitcoin ETFs.
🚀 SEC Gives Green Light to Bitcoin Spot ETFs
The SEC has officially approved Spot ETFs for Bitcoin, a major decision for the BTC industry. Major players like VanEck, Fidelity, and BlackRock are now ready to offer unprecedented investment opportunities. This approval symbolizes the recognition of Bitcoin as a legitimate financial asset, providing a more accessible alternative to invest in Bitcoin. However, the market impact of this news has not been as dramatic as expected, as the market had already factored in this approval into Bitcoin prices.
The approval of Bitcoin Spot ETFs by the SEC opens up new possibilities for Bitcoin and its integration into the traditional financial system. However, the SEC emphasizes that it remains neutral on the merits of companies or investments, and this action is limited to ETFs that hold a single non-financial product - Bitcoin. Challenges such as Bitcoin's volatility and unresolved regulatory issues remain, but the future of Bitcoin remains promising.
The approval of Bitcoin Spot ETFs by the SEC, although hailed as a breakthrough, could actually signal an attempt to regulate and channel the influence of Bitcoin into the traditional economy. This decision could be seen as a step towards the institutionalization of Bitcoin, where regulatory control and surveillance could potentially limit some of Bitcoin's decentralized and free aspects.
🎲 Financial Firms Face the Challenge of Crypto Adoption
Major financial firms such as BlackRock, Invesco Galaxy, WisdomTree, and Fidelity are increasingly engaging in the crypto industry, despite the significant systemic risks. The growing adoption of cryptocurrencies by these institutions exposes them to a major price volatility risk. For example, Bitcoin experienced a more than 50% drop after reaching a peak in 2021. This volatility poses challenges in terms of risk management and can affect the institutions' reputation in case of significant losses.
In addition to volatility, the adoption of crypto by financial firms raises security challenges related to the constantly evolving blockchain technology. Security risks such as DDoS attacks, SQL injection threats, and malware are concerning. Regulatory uncertainty in the crypto domain also increases the risks of non-compliance, leading to sanctions and additional costs. To minimize these risks, financial companies must adopt wise practices such as staff training, regular audits, and consider cyber insurance.
The adoption of crypto by major financial firms may be a precursor to a consolidation phase in the crypto industry. By integrating crypto into their portfolios, these institutions may be paving the way for wider control of the crypto space, potentially marginalizing smaller, independent players.
🛑 The SEC Remains Cautious
The SEC has reached a historic milestone by approving Bitcoin ETFs cash, marking progress in recognizing BTC as a legitimate financial asset. However, the SEC remains cautious, insisting that its assessment is based on compliance with the Securities Exchange Act and aims to protect investors. Although this approval is an important step, the SEC does not endorse Bitcoin and reminds investors of the volatile and controversial nature of BTC.
The approval of Bitcoin ETFs by the SEC involves protective measures for investors, with comprehensive and truthful information provided by the ETF promoters. However, challenges such as regulation, volatility, and illicit uses of Bitcoin persist.
In the long term, the approval of Bitcoin ETFs by the SEC may reduce the appeal of Bitcoin for those who value it for its unconventional nature and could lead to a divergence between traditional investors and crypto purists.
Crypto of the Day: Zcash (ZEC)
Zcash (ZEC) is a cryptocurrency distinguished by its approach to privacy and security. Using Zero-Knowledge Proof technology, Zcash offers fully anonymous transaction options, a feature that sets it apart from other cryptocurrencies like Bitcoin. This technology allows users to mask transaction details, including the sender, recipient, and amount, while maintaining a secure decentralized network.
Zcash's native crypto, ZEC, was primarily distributed through mining, similar to Bitcoin. The main utility of ZEC lies in its ability to provide private and secure transactions. For holders of this cryptocurrency, it means the possibility of conducting financial transactions with a higher level of anonymity, which is particularly attractive to those who value privacy in their online activities. ZEC can be used for daily transactions where privacy is a concern, as well as for investments and trading on various cryptocurrency platforms.
Recent Performance
Current price: $24.49 (approximately €22.64)
Percentage increase/decrease: +20.02% (1-day increase)
Market cap: Approximately $399.87 million (approximately €369.88 million)
Rank on CoinMarketCap: 133
Crypto Analysis of the Day: Bitcoin (BTC)
Today, let's dive into the recent analysis of Ethereum (ETH). ETH has emerged from the shadows with a performance that deserves our attention.
First, let's talk about the current situation of ETH. After a consolidation period, ETH has reached an important milestone, surpassing $2,400 to reach approximately $2,600. This increase is partly driven by the approval of the first Bitcoin spot ETFs by the SEC. This is good news for Ethereum as it indicates not only a bullish trend but also a wider recognition of cryptocurrencies in the financial world. The 50-day and 200-day moving averages are rising, which is a positive sign. However, be cautious of bearish divergences that could signal a slowdown or consolidation ahead.
Next, let's zoom in on the ETHUSDT derivatives. Open interest in Ethereum has increased by over 35% in two days, which is massive! This shows that traders anticipate a continuation of the bullish trend. The heatmap of ETH/USD liquidations reveals that we have moved through a high liquidity area between $2,400 and $2,500. Demand seems currently higher than supply, reinforcing the idea that the bullish trend is not yet finished. But keep an eye on the levels of $2,200 and $2,150 as they could trigger significant volatility.
In conclusion, Ethereum starts 2024 on a positive note. The SEC's decision on Bitcoin spot ETFs has certainly played a role in this momentum. However, it is crucial to monitor the price's reaction at different key levels to confirm or refute the current assumptions.