WuBlockchain Weekly: Ethereum Spot ETF to Begin Trading Next Tuesday, Trump Urges Fed to Avoid Rate Cuts Before Election, Indian Crypto Exchange WazirX Hacked for Over $230 Million, etc

Jul 19, 2024

1. SEC: Spot ETH ETF Issuers Can Begin Trading on July 23 link

According to sources, the U.S. Securities and Exchange Commission (SEC) has informed spot Ethereum ETF issuers that trading may commence on July 23. The SEC has not provided further comments on the recently submitted S-1 filings, and the final versions must be submitted by Wednesday. Bloomberg Senior ETF Analyst Eric Balchunas tweeted that the SEC has finally responded to issuers, requesting the final S-1 forms (including fees) by Wednesday, so they can go effective after Monday’s close for a Tuesday (July 23) launch, assuming no unforeseen last-minute issues arise.

SEC Commissioner Hester Peirce, in an interview with Coinage founder Zack Guzmán, mentioned that the issue of whether an Ethereum ETF can engage in staking is still open for reconsideration. She noted, “Whether it’s staking or any feature of the product, those are things that can be revisited.” The interview also touched on the future of Ethereum ETFs, the development path of Solana ETFs, changes in SEC institutional culture, terminated crypto investigations, and her views on the future direction of SEC regulation.

2. MtGox Forum Poll: 55% of Participants Won’t Sell Bitcoin link

A Reddit poll on the MtGox forum reveals that out of 467 participants, 260 members (55%) indicated they would not sell any of the Bitcoin they receive as compensation, making this the most popular choice. Meanwhile, 88 members (18%) opted to sell all their Bitcoin, ranking as the second most popular choice. Additionally, 68 members (15%) plan to sell 1% to 25% of their Bitcoin, and 26 members (6%) intend to sell 25% to 50%.

3. Bitcoin Conference Featuring Trump to Tighten Security Measures, Attendance Expected to Hit Record High link

Following the attempted assassination of Donald Trump, Bitcoin Magazine CEO David Bailey reported that Trump remains in good spirits and is still committed to delivering his speech at the Bitcoin 2024 conference. The conference is set to take place from July 25 to 27 in Nashville, Tennessee. According to recent research by Coinbase, 50 million American adults hold cryptocurrency.

After a decline in attendance during the Bitcoin bear market, this year’s conference is expected to easily surpass last year’s attendance of approximately 12,000, potentially even matching the 2022 record of over 25,000 attendees. Brandon Green, the conference’s chief of staff, noted that ticket sales have accelerated since the announcement of Trump’s participation, predicting final attendance numbers between 20,000 and 45,000. This event could provide a unique “symbiotic” opportunity for both the Bitcoin industry and political figures. According to The Washington Post, one of the conference founders promised Trump that attending could generate $15 million in revenue for him.

4. Trump Announces Fourth NFT Release; Urges Fed to Avoid Rate Cuts Before November link

In an interview, Trump stated, “The previous series was very successful, selling out 45,000 cards in one day. I plan to do it again because people want me to.” In May, Trump’s campaign began accepting cryptocurrency donations. According to data from the Federal Election Commission cited by The Wall Street Journal, approximately $3 million of the $331 million raised by Trump’s campaign last quarter came from cryptocurrency. Trump also mentioned that if he wins, he will allow Jerome Powell to complete his term as Federal Reserve Chairman, which lasts until May 2026; he believes the Fed should avoid rate cuts before the November election; he plans to lower the corporate tax rate to 15%; he does not plan to ban TikTok; and he is considering appointing JPMorgan Chase CEO Jamie Dimon as Treasury Secretary.

5. Powell: Fed Won’t Wait for Inflation to Hit 2% Before Starting Rate Cuts link

Federal Reserve Chairman Jerome Powell, speaking at the Economic Club of Washington, D.C., stated that the Fed will not wait until inflation reaches 2% before starting to cut interest rates. He noted that waiting until inflation fully drops to 2% might be too late. The Fed currently needs more evidence of declining inflation to ensure the correctness of policy adjustments. Nick Timiraos of The Wall Street Journal reported that Powell’s latest remarks indicate that recent inflation and economic activity slowdowns are generally in line with the Fed’s expectations. However, Powell declined to say whether this justifies a rate cut at the policy meeting later this month. Last week’s inflation report showed broad economic improvement, prompting some private analysts to question whether the Fed needs to wait until September to lower rates.

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6. Vitalik: Opposes Choosing Political Allies Based on Crypto Support link

Vitalik published an article titled “Against Choosing Your Political Allies Based on Who is ‘Pro-Crypto’,” where he stated that although cryptocurrency is becoming increasingly important in modern politics, focusing excessively on this point may go against the values that initially led people to enter the crypto space. He emphasized that cryptocurrency is not just about money and blockchain but also encompasses broader ideals of technological and personal freedom. Freedom is not limited to payments but includes communication, digital identity, and freedom of thought. He argued that politicians who support cryptocurrency may not necessarily share the same stance on other issues of freedom and technology.

In response to Ethereum co-founder Vitalik Buterin’s recent statement, “opposing political voting based on crypto support,” Cardano founder Charles Hoskinson countered by saying that his primary goal has always been to keep the government completely out of cryptocurrency. When that goal becomes unattainable, the remaining choices become very clear. He argued that if they continue to overregulate, we should not vote for them. Voting for Biden, according to Hoskinson, equates to voting for the demise of the American cryptocurrency industry, and therefore, we should cast our votes for candidates who support cryptocurrency.

7. a16z Co-founder Explains Shift to Supporting Trump link

a16z co-founder Marc Andreessen stated that although he has been a Democrat for most of his life, he will support Trump in the 2024 presidential election. He argues that the Biden administration has stifled startups through overregulation and potentially unnecessary taxation, whereas a Trump administration would foster innovation. Andreessen disagrees with the current White House plan for “overregulation” of artificial intelligence. Unlike the Biden administration, Trump’s cryptocurrency regulation plan is seen as “a comprehensive endorsement of the entire field.” Biden’s proposal to tax unrealized capital gains has compelled Andreessen to cast his vote for Trump.

8. BlackRock CEO: Bitcoin is a Legitimate Financial Instrument link

BlackRock CEO Larry Fink, in an interview with CNBC, admitted, “My views from five years ago were incorrect. I now believe Bitcoin is a legitimate financial instrument.” He stated that Bitcoin is a legitimate financial asset that everyone should hold. On Monday, BlackRock announced that its assets under management (AUM) reached $10.6 trillion in the second quarter. Its BTC ETF, IBIT, now holds over 300,000 BTC, making it the largest public holder of Bitcoin.

Dell Technologies CEO Michael Dell retweeted the CNBC interview video of BlackRock’s Larry Fink, commenting that Bitcoin is “fascinating.”

9. Grayscale Officially Launches Decentralized AI Fund link

Grayscale has officially launched the Grayscale Decentralized AI Fund LLC, aimed at enhancing investment in AI within the cryptocurrency sector. The fund rebalances quarterly, with initial investments allocated as follows: Bittensor (TAO) 2.92%, Filecoin (FIL) 30.59%, Livepeer (LPT) 8.64%, Near (NEAR) 32.99%, and Render (RNDR) 24.86%. The fund focuses on three main areas: chatbots, generative image creation, and other decentralized AI applications; addressing issues related to centralized AI such as deepfakes, misinformation, and authentication bots; and supporting AI-related infrastructure including GPU computing, data storage, and decentralized marketplaces.

10. Indian Crypto Exchange WazirX Possibly Hacked, Losses Exceed $230 Million link

On-chain investigator ZachXBT reported that the Indian cryptocurrency exchange WazirX may have been hacked, with losses exceeding $230 million. Stolen assets include 54.3 trillion SHIB ($102 million), 15,298 ETH ($52.5 million), 20.5 million MATIC ($11.24 million), 64.02 billion PEPE ($7.6 million), 5.79 million USDT, and 135 million GALA ($3.5 million). The attackers have begun selling SHIB and other tokens, exchanging them for 9,956 ETH ($34.36 million). The WazirX hacker holds 56,813 ETH ($197.64 million), with only $25.29 million in remaining altcoins unsold. WazirX has confirmed the security breach and temporarily halted withdrawals of Indian Rupees (INR) and cryptocurrencies.

Fundraising

Blockchain data network developer Chainbase has secured $15 million in Series A funding. link
OKX Ventures announces its investment in zkLink. link
Bitcoin DeFi firm Liquidium has raised $2.75 million in seed funding. link
Partior has completed a $60 million Series B round led by Peak XV Partners. link
Token distribution protocol ZAP has raised $15.1 million, reaching a valuation of $100 million. link
Fintech company Tapi has secured $22 million in Series A funding, with participation from a16z and others. link
Web3 social platform beoble has announced $3 million in funding. link
Haruko has completed a $6 million Series A round. link
Fintech firm Caliza has raised $8.5 million in funding, led by Initialized. link
Crypto AI startup Mira has secured $9 million in seed funding. link
Allium Labs has raised $16.5 million in Series A funding. link
Real-world asset (RWA) credit protocol Zivoe has announced $8.35 million in funding. link
HashKey Capital has invested in CatizenAI’s launch platform Pluto Studio. link

Learn more, check out crypto-fundraising.info.

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