Ethereum ETF, Solana’s Rise & FTX News in StealthEX x CryptoDaily Digest

October 5, 2023

Crypto World

Maciej Zerelik

Step into the exciting crypto sector with StealthEX and CryptoDaily’s weekly update! We simplify the complex crypto market, bringing you easy-to-understand updates on price changes, new tech, rules, and important team-ups every week. Your straightforward guide to crypto is here, ensuring you get all the essentials. Welcome to your friendly crypto news update!

Grayscale’s Ambitious Ethereum ETF Endeavor

In a pivotal move that underscores the burgeoning interest in cryptocurrency investment, Grayscale Investments, the world’s largest crypto asset manager, has announced that NYSE Arca has filed with the SEC to convert its Ethereum Trust into a spot Ethereum ETF.

Launched in March 2019, the Ethereum Trust has evolved to become the largest Ether investment vehicle globally, boasting nearly $5 billion in assets under management. Grayscale CEO Michael Sonnenshein expressed that this filing represents a significant stride in bringing Ethereum further into the U.S. regulatory perimeter, aligning with Grayscale’s commitment to providing investors with transparent, regulated access to crypto through familiar product structures.

The application to convert the Ethereum Trust into a spot Ethereum ETF is seen as a natural progression in its evolution. It comes at a time when the crypto industry is witnessing a surge in interest from retail and institutional investors. Grayscale’s Global Head of ETFs, David LaVelle, highlighted this filing as a crucial milestone, reflecting Grayscale’s ongoing efforts to build a top-tier ETF team and product suite, thereby serving investors as a globally respected asset manager with unparalleled crypto expertise.

This move by Grayscale follows in the footsteps of asset managers Ark Invest and 21Shares, who have also applied for the first spot Ethereum ETF in the U.S. The SEC, however, has been cautious in greenlighting Bitcoin spot ETF applications, citing concerns related to the potential risks of crypto investments. 

Grayscale has previously urged the SEC to approve Bitcoin spot ETF applications, emphasizing the importance of regulatory approval for the growth and stability of the crypto market.

Solana’s Remarkable Ascent: A Surge in Total Value Locked Amidst Potential Challenges

In a striking development, Solana, a renowned blockchain platform, has witnessed a substantial surge in its Total Value Locked (TVL), soaring to nearly $340 million this Monday, as per data from DeFi Llama.

The platform has seen a more than 4% increase in its TVL in the past 24 hours and observed its native token, SOL, experiencing a robust week, marking a 29% increase since its lowest point in September.

This surge in Solana’s TVL and SOL’s price comes amidst the backdrop of the U.S. government successfully averting a shutdown, which seemingly played a pivotal role in SOL’s price appreciation of as much as 14% on Sunday. Currently consolidating at resistance, SOL is priced at $24.20.

However, the journey ahead for Solana and SOL may be somewhat smoother. The FTX has been approved to liquidate its crypto holdings, which include a substantial amount of SOL.

FTX reportedly holds about $1.2 billion in SOL, with approximately 22 million SOL tokens (valued around $400 million) being unlocked and available for sale, representing nearly 4% of SOL’s total supply. 

Additionally, 40 million to 44 million tokens, or around $860 million, are currently staked, with another $17 million worth of SOL tokens expected to be unlocked monthly for the next four years.

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Coinbase Achieves Regulatory Milestone in Singapore

Coinbase, a prominent US-based cryptocurrency exchange, has successfully obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), marking a pivotal move in its global expansion strategy. 

This regulatory nod allows Coinbase to broaden its digital payment token services to individuals and institutions in Singapore, even amidst skepticism from the new president-elect, Tharman Shanmugaratnam. 

Recognized by Coinbase as a priority market, Singapore has seen the crypto firm introduce user-friendly funding options and integrate SingPass, Singapore’s digital identity system, to streamline user onboarding. 

Furthermore, Coinbase actively engages in Singapore’s Web3 ecosystem through various initiatives, including training, hiring programs, and investments, affirming its commitment to supporting and growing with the Singaporean crypto and Web3 ecosystem.

CertiK Report Unveils Sobering Crypto Exploit Figures

Blockchain security firm CertiK has released a security report revealing a sobering $329 million in crypto and digital assets compromised through various exploits in September 2023 alone. The Mixin Network cross-chain protocol was notably impacted, suffering a breach that resulted in a $200 million loss. 

The report also highlighted attacks on the CoinEx exchange and Stake.com, leading to losses of $53 million and $41 million, respectively. Cumulative losses from exploits, scams, and hacks throughout 2023 have reached $1.34 billion. 

The report underscores the urgent need for robust security measures, transparency, and education in the crypto space to safeguard against the evolving sophistication of threat actors.

FTX Hacker Begins Moving Stolen Assets

The hacker behind the FTX cryptocurrency exchange breach in November 2022 has suddenly started moving millions worth of stolen Ethereum (ETH). FTX was hacked hours after declaring bankruptcy and witnessing the resignation of its founder, Sam Bankman-Fried, with approximately $600 million worth of ETH stolen.

According to Arkham, a blockchain intelligence platform, the hacker has moved a substantial amount of ETH for the first time since the theft, utilizing smart contract system RailGun and decentralized exchange protocol ThorChain to move around $8 million worth of ETH. The movement of these funds comes just days before Sam Bankman-Fried is set to go on trial in the US, facing fraud charges.

Celsius Navigates Through Bankruptcy with a Customer-First Approach

In a pivotal move amidst bankruptcy, Celsius, a once-thriving crypto lender, is navigating through financial turmoil with a staunch commitment to its customers. The firm, currently insolvent, has sought court approval to initiate customer repayments by the close of 2023, as revealed during an October 2 hearing. Legal counsel Christopher Koenig articulated the firm’s strategy to distribute a substantial $2.03B in cryptocurrencies, namely Bitcoin (BTC) and Ethereum (ETH), to creditors.

Celsius has garnered support from its creditors, with over 95% voting in favor of its reorganization plan, which promises to recover between 67% and 85% of their holdings. A pivotal component of this restructuring is the inception of a new entity, NewCo, seeded with $450 million and a focus on Bitcoin mining and staking. NewCo, while owned by Celsius’ clientele, will be managed by the crypto consortium Fahrenheit, which secured the bid to acquire Celsius in May.

Fahrenheit has pledged up to $50 million as an equity stake in NewCo, aligning the interests of both entities. The restructuring proposal, initially presented in August, also includes plans for NewCo to be listed on the Nasdaq, providing additional liquidity and awarding creditors with company equity.

This article is not supposed to provide financial advice. Digital assets are risky. Be sure to do your own research and consult your financial advisor before investing.