WuBlockchain Weekly: VanEck Submits Solana ETF Application, Expected Launch of Physical Ethereum ETF Soon, Binance Bans Accounts Violating Megadrop Activity, etc

Jun 28, 2024

1. VanEck Announces First Solana ETF Application in the U.S. link

VanEck has announced the first-ever application for a Solana spot exchange-traded fund (ETF) in the United States. VanEck regards Solana as a commodity, emphasizing its blockchain’s high throughput, low fees, and robust security, making it suitable for a variety of applications including payments, trading, gaming, and social networking. VanEck also highlights that Solana combines historical proof and proof-of-stake mechanisms, supporting thousands of transactions per second and offering a superior user experience compared to Ethereum. As early as 2021, Grayscale launched its sixteenth product, the Solana Trust Fund, targeted at institutional and high-net-worth investors.

The document states that the trust, its sponsor, the SOL custodian, or any other associated persons are prohibited from engaging in any activities that directly or indirectly use any portion of the trust’s SOL to earn staking rewards, generate additional SOL, or produce income or other gains. However, the application for a Solana spot ETF faces challenges, such as the absence of a futures ETF similar to Bitcoin and Ethereum. Additionally, the SEC’s classification of SOL as a security led to its delisting from Robinhood.

A 2023 VanEck report on Solana sparked widespread discussion, projecting that by 2030, the SOL token price could surge to as high as $3,211.28 (with Ethereum’s target price at $11,800), and that Solana might be the first blockchain to host an application with over 100 million users.

Bloomberg analyst James Seyffart noted that it remains unclear whether VanEck’s move to apply for the first Solana ETF in the U.S. will prompt other issuers to follow. If there is a change in the management at the U.S. White House and SEC, a Solana ETF might have a chance to launch sometime in 2025, though this is not guaranteed.

GSR released a report evaluating the potential impact of a Solana spot ETF on SOL’s price. If the fund’s inflow relative to Bitcoin’s inflow is 2%, 5%, and 14% in bearish, benchmark, and ideal scenarios respectively, and if Solana’s market cap has averaged 4% of Bitcoin’s market cap over the past year, SOL could grow 1.4 times in a bearish scenario, 3.4 times in a benchmark scenario, and 8.9 times in an ideal scenario.

2. Reuters: SEC May Approve Spot Ethereum ETF Launch by July 4th link

The U.S. Securities and Exchange Commission (SEC) may approve the launch of an Ethereum spot ETF before July 4. Currently, negotiations between asset management companies and regulatory agencies have entered the final stage. Executives of the two companies stated that the process of amending the prospectus has progressed to the point where only “minor” issues need to be resolved. A lawyer working with one of the issuers stated that only “final polishing” work remains, and approval “should not take more than one or two weeks.” 21Shares submitted a registration application for an Ethereum spot ETF with the U.S. SEC on June 28 (Form 8-A12B). Submission of the 8-A form implies that once the product is approved, it can be traded on the exchange.

3. Trump to Speak at Bitcoin 2024 Conference link

Former U.S. President Trump is discussing the possibility of speaking at the Bitcoin 2024 conference in Nashville at the end of July. The event, hosted by Bitcoin Magazine, is scheduled for July 25–27. Trump is not the only U.S. presidential candidate planning to speak at the conference; presidential candidate Robert F. Kennedy Jr. also intends to deliver a speech there. Representatives from Bitcoin Magazine did not respond to requests for comment.

4. Biden Administration Rehires Former Cryptocurrency Advisor Carole House link

The Biden administration has reappointed its former cryptocurrency advisor, Carole House, as a special advisor to the White House National Security Council, focusing on critical infrastructure policy and cybersecurity. House previously advised President Biden on the 2022 executive order regarding cryptocurrencies and digital assets. She has held positions at the Commodity Futures Trading Commission and the National Security Council, maintaining a moderately supportive stance on cryptocurrencies while also emphasizing the need for “enhanced enforcement.”

5. Nomura Securities: 54% of Japanese Institutional Investors Plan to Invest in Cryptocurrency Within Three Years link

A recent survey by Nomura Securities reveals that 54% of institutional investors in Japan plan to invest in cryptocurrencies within the next three years, primarily motivated by diversification and inflation hedging. Despite facing obstacles such as regulations and market volatility, the market holds a positive attitude towards mainstream cryptocurrencies like Bitcoin and Ethereum. If cryptocurrency ETFs are approved in Japan, the market is expected to become even more active.

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6. Bolivia Lifts Ban on Bitcoin and Other Cryptocurrencies link

Bolivia has lifted its ban on Bitcoin and other cryptocurrencies, which had been in effect since December 2020. The Central Bank of Bolivia (BCB) officially announced on June 26 that banks can now conduct cryptocurrency transactions. Although cryptocurrencies can now be traded through authorized electronic channels, the BCB reminds citizens that cryptocurrencies are not considered legal tender. This means businesses are not obligated to accept them as a form of payment.

7. Turkish Parliament Passes Capital Markets Law Amendment link

The Turkish Parliament has passed an amendment to the Capital Markets Law, stipulating that unauthorized crypto asset service providers will face imprisonment of 3 to 5 years. Service providers must obtain authorization from the Capital Markets Board (SPK) and comply with TUBITAK standards. Violators will face severe penalties, including up to 22 years of imprisonment and hefty fines. The SPK will be responsible for overseeing transactions involving crypto assets, ensuring market transparency and stability, and taking measures to prevent market manipulation.

8. Binance: Bulk Purchases of KYC Used to Obtain Megadrop Rewards, 297 Main Accounts Confirmed and Blocked link

Regarding the Binance Megadrop account banning incident, Binance Web3 responded to WuBlockchain, stating that individuals attempted to fraudulently obtain Megadrop rewards by purchasing large quantities of KYC verifications. After being flagged by the system, they tried to consolidate funds into a single account to evade detection, triggering further risk control measures and subsequent freezing. According to statistics, the Megadrop Lista event had over 1 million participants, with 10,200 accounts identified as fraudulent (this number is still being updated). After further investigation into account consolidation and other behaviors, the platform confirmed and banned 297 main accounts, one of which had aggregated up to 9,000 KYC sub-accounts.

Binance also stated that funds recovered from freezing malicious accounts will continue to be used for project activities to benefit genuine users. They emphasized a strong stance against malicious actors and assured that their risk control measures target only identified fraudulent accounts, with no impact on genuine users.

9. Bybit Undergoes Major Executive Reshuffle link

WuBlockchain reported exclusively that Bybit recently underwent a large-scale overhaul of its senior management. Nearly all department heads, including those in spot trading, derivatives, customer service, and VIP services, were replaced, though the reasons remain undisclosed. Bybit’s current leadership includes CEO Ben and COO Helen, who oversees HR and other business departments.

Earlier, Bybit experienced significant management upheaval following delays in Notcoin deposits, with several executives choosing to resign voluntarily. The sudden initiation of Chinese user registrations also sparked concern among some employees.

Helen responded to WuBlockchain, stating that the recent leadership changes are part of regular organizational development. Bybit continues to expand into multiple regions with a focus on stronger localization, aiming to provide the most relevant products for regional users.

10. Mt. Gox Will Begin Repaying Creditors in BTC and BCH in Early July 2024 link

Mt. Gox has released an official announcement stating that preparations have been completed, and repayment to creditors with BTC and BCH will commence in early July 2024. To ensure compliance, necessary technical and financial regulatory measures have been implemented. Repayments will involve necessary transactions and verifications with cryptocurrency exchanges. Specific implementation details are forthcoming.

Fundraising

Vitalik-supported blockchain MegaETH raised $20 million in seed funding. link
Ora announced completion of a $20 million financing round led by Polychain. link
Rollup deployment platform Conduit completed a $37 million Series A financing. link
Berachain’s liquidity protocol Infrared secured investment from Binance Labs. link
Web3 entertainment and gaming platform Redacted announced completion of a $10 million strategic financing. link
Crossover Markets completed a $12 million Series A financing round with participation from Wintermute and others. link
Chain abstraction intent engine ENSO announced completion of a $4.2 million financing. link
Swedish blockchain carbon removal company Net Zero Company completed a $5.5 million seed funding round. link
Security startup PQShield announced completion of a $37 million Series B financing. link
SoSoValue announced completion of a $4.15 million seed funding round. link
Allora Labs completed a $3 million strategic financing. link
Decentralized proof-of-stake network NovaNet announced completion of a $3 million financing. link
Covalent Network announced completion of a $5 million strategic financing. link
Blockchain golf project GolfN successfully completed a $1.3 million pre-seed financing. link
Bitcoin analytics startup Rebar completed a $2.9 million seed funding round. link
Decentralized oracle network developer AnchorZero announced completion of an $8 million seed funding round. link

Learn more, check out crypto-fundraising.info.

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