The Potential Impact of a Bitcoin ETF Approval
In the world of digital assets, the approval of a spot bitcoin exchange-traded fund (ETF) is seen as a significant step forward. According to Steve Scott and AJ Nary from BitGo, a digital asset custody firm, a Bitcoin ETF approval could be beneficial in allowing advisors and investors to enter the new asset class through a familiar investment vehicle. However, they caution that it may not immediately lead to the creation of ETFs encompassing a basket of crypto assets. As the only digital asset categorized as a commodity at present, the regulatory landscape in the US remains uncertain. The absence of a clear market structure has resulted in the downfall of crypto exchange FTX, and thus, further rejections of ETF applications are anticipated. To increase the chances of approval, applicants will need to demonstrate the custody of assets with a qualified custodian, separate from the entity responsible for trading. The timeline for approval, however, remains speculative.
“A spot bitcoin ETF won’t likely pave a quick path to, say, an ETF basket of crypto assets.”
– Steve Scott and AJ Nary, BitGo
It is believed that once the first asset management company receives approval, a group of investment companies that meet the previously mentioned requirements could be approved in quick succession or even simultaneously.
Source: American Banker
Cyberattack on INX Digital Company
On December 20, 2023, INX Digital Company, a security token and digital asset trading platform, reported a cyberattack on a third-party vendor providing services to one of its subsidiaries. The unauthorized access to the vendor’s servers resulted in unauthorized trades and a loss of $1.6 million for the subsidiary. INX clarified that no customer data or personal information was compromised, and its operations remain unaffected. Immediate actions have been taken to address the security vulnerability, investigate the incident, and notify law enforcement. Additional security measures have also been implemented to prevent future attacks.
“No customer personal information or other data was compromised, and INX.One remains fully operational.”
– INX Digital Company
Source: CoinDesk
Bybit Integrates Manta Network for Enhanced Privacy
Crypto exchange Bybit has partnered with Manta Network, a privacy-preserving protocol utilizing zero-knowledge (ZK) technology. The integration allows Bybit Wallet’s over 800,000 users to experience the benefits of the Manta Network’s ZK technology within the Web3 Wallet. This collaboration expands the functionality of the Bybit Wallet and broadens the user base for Manta Network’s ZK technology.
Source: Bybit Blog
Core Scientific Files Amended Plan of Reorganization
Crypto miner Core Scientific has filed an amended plan of reorganization and extended the subscription deadline for its Equity Rights Offering to January 5, 2024. The company has reached a global settlement with key stakeholders, and the plan aligns with this agreement, marking progress towards confirmation and eventual exit from Chapter 11. The Bankruptcy Court has approved the company’s request to modify certain dates and deadlines, including an extension for voting on the plan and filing objections. The final approval and confirmation of the plan will be considered at a combined hearing scheduled for January 16, 2024. Core Scientific anticipates emerging from Chapter 11 in mid-to-late January 2024.
Source: Core Scientific Website
