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When the news broke that Bitcoin mining company Riot Platforms made $32 million by reducing or being willing to reduce if needed its energy use last August in Texas, the outrage was immediate.

The states grid operator had frequently asked Texans to conserve electricity during sweltering summer heat, and many saw their power bills soar as they tried to stay cool. Meanwhile the state grid operator and an electricity provider effectively gave millions to a company whose industry is notorious for using gobs of electricity.

Riot made that giant sum of money because of how the states electricity market is designed. Companies that use large amounts of power, such as manufacturers or petrochemical plants, have long profited in similar ways.

There are two ways that large power users can make money on the states main power grid, according to industry experts. The Electric Reliability Council of Texas, which operates the grid, pays large industrial users that promise to reduce their power consumption as needed, giving ERCOT some wiggle room in case a power plant unexpectedly fails or power demand is higher than forecast.

A company such as Riot also can profit by buying power at negotiated rates ahead of time retail power companies allow big companies to lock in prices that way then selling it back into the state market when energy prices soar during extreme heat or cold. In Riots case, when electricity prices soared during the summer heat wave, Riot sold power back to TXU, a Dallas-based electricity provider, which sold it back to the grid.

In a September statement that was later deleted from its website, Riot characterized its actions as helping to stabilize the grid.

Riots windfall highlighted for everyday power consumers just how much the Texas market can benefit businesses. Critics saw particular problems with cryptocurrency.

Lee Bratcher, president of the Texas Blockchain Council, a group promoting cryptocurrency growth and innovation in Texas, said in an email that cryptocurrency operations can benefit the grid because they are able to reduce or completely shut down their operations quickly.

Bitcoin miners can use excess power overnight and on days where demand is normal, and they can turn off on very hot or very cold days when power is scarce and electricity prices are high, Bratcher said in an email.

But Mandy DeRoche, deputy managing attorney in the clean energy program at Earthjustice, a nonprofit environmental law group, said crypto mining businesses shouldnt be praised for reducing power on the grid when they are using so much to begin with.

I think that the rewards for their behavior are so lucrative and unfair, DeRoche said, adding, Its like were bending over backwards to give money to the (crypto) miner for putting the strain on the grid and the system in the first place.

China, which was one of the largest crypto mining hubs in the world, banned crypto mining in 2021, concerned about virtual currencies being used for criminal activity and disrupting financial systems. Cryptocurrency operations began opening in Texas, which as of March was home to five of the 10 largest Bitcoin mines in the U.S., according to an April investigation by The New York Times.

Some industry experts have advocated for Texas residents to be able to reap the same sort of benefits for using less power at critical times. Called demand response, its a way for power companies to pay or credit customers who agree to reduce their power usage when demand is high, by adjusting their thermostats or timing their energy-intensive activities like charging electric vehicles or running pool pumps at times when power demand is low.

Electricity providers such as Austin Energy and Reliant already have programs that pay customers to let the providers adjust their smart thermostats when necessary but the benefit is small. For residential customers, that typically translates to one-time bill credits that can range from $25 to $85.

Ed Hirs, a University of Houston lecturer and energy market expert, said hes worried that more Bitcoin mines coming to the state will mean higher electricity prices for Texans.

Why cant I get $5 a kilowatt an hour for shutting down my power? Hirs said. Why are these guys getting a sweetheart deal?

This summer, one of the hottest in recorded Texas history, Fort Worth resident Terri Rimmer said she conserved because she feared power being cut altogether. Rimmer remembers losing electricity for five days during the deadly 2021 winter storm, when ERCOT called for power cuts to millions of Texans because power generators failed in the extreme cold and the remaining power sources couldnt keep up with the high demand.

Rimmer said temperatures dropped as low as 25 degrees inside her home during the power outage. She bundled up in layers of clothing and blankets and shared her bed with her cat to stay warm.

That month, a Bitcoin mine that Riot Platforms acquired, Whinstone, received a $125 million windfall by selling power back to the grid, according to an investigation by the Tech Transparency Project.

This summer, when ERCOT warned of tight grid conditions because of unprecedented power demand, Rimmer, 57, turned off her air conditioning, closed her blinds and blackout curtains and put an ice pack on her chest to try to stay cool. Sweat glistened on her face.

"I wasn't like this before, Rimmer said. I didn't conserve until that winter storm hit. It's truly traumatizing. For me it changed how I do things."

According to Bratcher, there are more than 20 industrial-scale Bitcoin mining operations in Texas that can collectively consume up to 2,300 megawatts of energy a day enough to power about 460,000 homes during times of high demand in Texas. They house computers that run constantly to produce cryptocurrencies, decentralized digital currencies used as alternatives to government-backed, traditional currencies.

Crypto miners essentially compete to solve complex math problems that, when verified, produce one Bitcoin or other cryptocurrency that the companies can either hold as an asset or sell. The more computers they have and the longer they run, the better their chances of solving the problem the fastest.

Essentially every miner is running the exact same algorithm, and it really is just a matter of luck, said Samantha Robertson, a member of the corporate strategy team for Bitdeer, another Bitcoin company with an operation in Rockdale. In order to increase your chances, it makes sense to have these computers running at scale.

But if the value of Bitcoin is low and the cost of electricity is high, crypto companies can make more money selling power than mining Bitcoin. In August 2023, Riot reported selling 300 Bitcoins for a net proceeds of $8.6 million. Meanwhile, the company said it earned $24.2 million in credits to its electric bill for selling power back to the grid.

In September 2023, Riot said it earned $9 million in net proceeds from Bitcoin sales and $11 million in credits for selling power back to the grid.

Robertson said Bitdeer and other cryptocurrency companies are not doing anything different than other industries by selling power back to the grid when demand and prices rise.

Quite frankly were just playing by those rules, Robertson said.

Because of how much power cryptocurrency mines use and how quickly they can reduce their power consumption which can help relieve stress on the grid when demand is high it is important for ERCOT to work closely with them, ERCOT President and CEO Pablo Vegas said in a September interview.

I'm interested in their operating characteristics, Vegas said.

The electricity-selling agreements between retail power companies like TXU and cryptocurrency businesses like Riot arent public, so its difficult to discover exactly how the companies are benefiting from the current ERCOT rules, said DeRoche, of EarthJustice.

There's very little regulation, there's no reporting standards, DeRoche said during a September virtual press conference featuring cryptocurrency opponents from different organizations. It makes it difficult to track and to get a complete picture of the total impacts.

Eric Goff, a member of an ERCOT task force that was formed to help manage power demand from large industrial users, said ERCOT has proposed rules to have large power users such as Bitcoin mines register with ERCOT so it could track their impacts on the grid. The rules dont have a specific deadline to be implemented, he said.

Environmental advocates also argue that there is a less energy-intensive way, called proof of stake, to create Bitcoin that doesnt require computers to run so many calculations. The Texas Coalition Against Cryptomining held a weeklong protest in October to oppose Riots plans to build a cryptocurrency operation near the Central Texas city of Corsicana. Coalition Founder Jackie Sawicky faulted crypto businesses for failing to reduce their energy use.

Why are we tolerating this? Sawicky asked in an interview. Its insane.

In Texas, at least seven electric providers, including Austin Energy, Reliant and CPS Energy, offer residential demand response programs that typically let the providers remotely adjust customers smart thermostats a few degrees during critical periods when energy demand is high. Customers have to sign up for the programs.

Other companies such as OhmConnect are working with smart plugs in homes. Don Whaley, senior advisor to business at OhmConnect, said customers can plug devices such as refrigerators, lamps and other ordinary household electrical appliances into the smart plugs, allowing the company to adjust power consumption remotely when necessary.

While tens of thousands of Texans do participate in programs where they agree to reduce energy use Austin Energy said its program has 33,000 active smart thermostats, while Reliant said 100,000 customers are enrolled in its program the amount paid to residential customers is small.

Most companies give their customers credits that reduce their electricity bills. For example, Reliant and Direct Energy give out a one-time $25 credit for enrolling in the program, Austin Energy offers a $50 credit for enrolling and a yearly $25 credit for staying, and CPS Energy customers receive an $85 enrollment credit and an additional $30 for each year they participate.

Other companies incentivize through point systems. OhmConnect customers can earn points or currency called Watts that can be traded in for real money, gift cards or to make a donation to charity. Gexa Energys Green Rewards program gives residential customers Active Saver Rewards points that customers can redeem as credits to lower their power bills.

Octopus Energy, a Houston-based retail electric provider that has a startup-feeling office with exposed brick, said its Texas customers can sign up for programs that allow Octopus to adjust smart home thermostats and electric vehicle chargers based on power prices, which allows them to offer lower-cost power.

ERCOT is also running pilot projects in the Dallas and Houston areas that let people with Tesla Powerwall batteries sell their extra electricity onto the state grid when its needed. This concept is known as a virtual power plant and works by adding up lots of small power resources to create a meaningful amount of supply.

Texas Public Utility Commissioner Will McAdams said in an August interview that ERCOT needed to use all available strategies to get power onto the grid.

It was now or never, McAdams said. We needed to get this off the ground and allow our very interested Texas consumers to better engage in the ERCOT system.

Critics such as energy consultant Doug Lewin say the Public Utility Commission needs to get to a point where it can expand the pilot projects and make the concept a permanent part of how the grid works. Lewin also urged the PUC to put regulations in place so all residential customers can benefit from reducing power use on the grid just like large customers do.

This is absolutely critical if were going to have either a reliable or affordable grid, Lewin said.

A study by the American Council for an Energy-Efficient Economy, a nonprofit research advocacy group, found that if Texas implements statewide demand response and energy efficiency programs for residential customers and businesses from 2024 to 2030, Texas could reduce peak summer electricity demand by 15 gigawatts and the peak winter demand by 25 gigawatts.

Residential load is a small thing. Whaley said. But if we start getting this general acceptance to where people go, Oh okay yeah, I can go from 72 to 78 degrees for an hour because thats what the grid needs, then you start seeing real reductions in the market, to start seeing real impact.

Alejandra Martinez contributed to this story.

Disclosure: CPS Energy, Octopus Energy, Texas Blockchain Council, The New York Times and the University of Houston have been financial supporters of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here.

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Why cant more Texans profit like Bitcoin miners for using less power? - The Texas Tribune

Investors should take a long position in crypto now or be sorry later, says Bernstein. The Wall Street firm published an extremely bullish 2024 crypto market outlook this week, predicting bitcoin will hit a new all-time high in the second half and could close the year at about $80,000, or roughly 88% above current levels. It also forecasts bitcoin will reach $150,000 in 2025. "We expect 2024 to be a break-out inflection year for crypto," Gautam Chhugani, Bernstein's lead crypto analyst, wrote in the note. "Not being long crypto strategically via a funds business or directly via digital asset ownership, or indirectly via crypto equities would prove costly for investors." Bernstein recommended bitcoin mining stocks, which offer a higher beta or higher risk and higher potential reward than bitcoin itself. Riot Platforms and CleanSpark are Bernstein's preferred picks. Chhugani said both companies are "market share consolidators" whose self-mining capacity gives them a strong operational edge against rivals. They also benefit from low power and production costs, high liquidity and balance sheet flexibility. "We are also in a favorable macro[economic climate], with rates peaking, inflation declining and chances of monetary stimulus in a major election year globally," Chhugani added. "We are not brave enough to be circumspect, and we like bitcoin and bitcoin mining stocks way too much here." Bitcoin has been in an uptrend for months as traders grow more convinced that the U.S. Securities and Exchange Commission will soon approve a spot bitcoin ETF. Many expect approval as early as this month. Still, although the cryptocurrency is off to a rocky start in 2024, it climbed more than 12% in December and soared 157% for 2023. Elsewhere, the Bernstein note also said ether is poised to benefit this year following its underperformance relative to bitcoin in 2023, when it nonetheless almost doubled, surging 89%. "We expect the Ethereum narrative to get stronger post the Bitcoin ETF approval, as the focus shifts to the Ethereum spot ETF applications by the same group of asset managers," Chhugani said. "We expect an Ethereum ETF approval by June 2024." CNBC's Michael Bloom contributed reporting.

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Buy these high-risk crypto stocks to play what may prove an explosive year for bitcoin, Bernstein says - CNBC

The Times 03/Jan/2009 Chancellor on brink of second bailout for banks

That was the message contained in bitcoins first-ever transaction block on Jan. 3, 2009. Today marks the 15th anniversary of that event.

The so-called genesis block featured what was then a 50 bitcoin (BTC) block subsidy worth a whopping $2.1 million at todays prices and the message above, referring to the economic turbulence of the day when bitcoin went live.

Months earlier, bitcoins pseudonymous creator, Satoshi Nakamoto, first published the protocols white paper, which outlined a system for digital money that didnt rely on a trusted central administrator. The white papers 15th anniversary was observed last October, as Blockworks previously reported.

Nakamoto played a central role in overseeing the protocols progress in its early years, but by 2010 had largely faded from public view.

As of the time of writing, the bitcoin network has processed 824,210 blocks, each occurring roughly though not precisely every ten minutes.

The anniversary comes during an auspicious time in bitcoins history.

The price is hovering above $40,000 a far cry from the days before bitcoin ever traded against the dollar. Bitcoin has become more deeply enmeshed in the global financial system, a state of affairs perhaps reflected best in the push by major institutions like BlackRock and Fidelity to create exchange-traded products that hold BTC.

The US Securities and Exchange Commission appears poised to potentially approve such a product, though todays price declines reflect what may be lingering anxieties around those prospects.

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Bitcoin's 'genesis' block of transaction was created 15 years ago - Blockworks

U.Today - The cryptocurrency market has witnessed a crucial surge in the (BTC) price, hitting a $45,000 high that resulted in a significant volume of liquidations. In a startling move that caught many off guard, the market saw liquidations amounting to $145 million. A majority of these were short positions, where traders had placed bets on a market reversal at the start of 2024, only to be swept away by unexpected bullish momentum.

This sudden and robust price action on Bitcoin is a clear indication of the continuation of the bull run, signaling a potent start to the year. A breakthrough above the $45,000 mark not only indicates good things for market sentiment but also fortifies the belief that the bullish market is continuing. The next major event on the horizon is the anticipated approval of a spot Bitcoin ETF in the second week of January.

Source: Investors, while optimistic, should brace for volatility as the market might experience a "sell the news" event post-ETF approval. Such events typically occur when the price of an asset rises in anticipation of a positive event and then falls after the event occurs as traders take profits.

The moving averages on the chart present a strong bullish pattern, with the price now well above both the 50-day and the 200-day moving averages, suggesting a strong uptrend. The 50-day moving average, in particular, appears to be acting as dynamic support for the price, indicating sustained bullish pressure.

Volume bars show an increase in trading activity around the breakout point, confirming the momentum behind the move. The Relative Strength Index is ascending toward overbought territory, reflecting the strong buying pressure that has accompanied the recent price surge.

This article was originally published on U.Today

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Bitcoin (BTC) Bears' $145 Million Bloodbath: $45000 Price Surge Pulls Liquidations Up By U.Today - Investing.com

Those closely following the spot bitcoin ETF saga probably already know Bloomberg Intelligence analysts put the chances of approval in the coming week at 90%.

But not all see it that way.

Markus Thielen, head of research for crypto platform Matrixport, said Tuesday he believes all such applications fall short of a critical requirement adding that US Securities and Exchange Commission Chairman Gary Gensler still sees this industry in need of more stringent compliance.

Read more: SEC delaying spot bitcoin ETFs not impossible, but unlikely: Balchunas

As the SECs Jan. 10 deadline to rule on a proposal by Ark Invest and 21Shares approaches, other industry watchers continue to debate these funds fate.

Stefan Rust, CEO data provider Truflation, said he agrees Gensler has not given any indication he is ready to give a bitcoin ETF the green light.

Governments and regulators havent yet identified how they can exert control over cryptocurrencies, Rust argued in a statement. No doubt they are looking for more time and choke points to inhibit access to cryptocurrencies from a decentralized system.

Chase White and Joe Flynn, analysts at Compass Point Research & Trading, said in a Dec. 15 note that recent meetings between fund issuers and the SEC support the firms base case of January spot bitcoin ETF approval. The regulator could hold off though, they added.

We think theres a chance the SEC isnt quite ready to approve ETFs in early [January] and will ask Ark Invest [and] 21Sharesto refile the application to give the SEC more time, rather than reject it outright, White and Flynn wrote.

But Scott Johnsson, general partner at Van Buren Capital, said in a series of X posts Wednesday he is confident approval will come between Jan. 8 and Jan. 10.

Read more: Industry watchers pin down possible bitcoin ETF approval dates

He added: Theres no more bullets in the SECs gun.

The SECs August court loss to Grayscale Investments put more pressure on the regulator to approve spot bitcoin ETFs, industry watchers and executives have argued. Judges in the case said the regulators decision to deny the conversion of the Grayscale Bitcoin Trust (GBTC) to an ETF but approve bitcoin futures ETFs was arbitrary and capricious.

Alex Thorn, head of research at Galaxy Digital, called several arguments in the Matrixport report nonsensical in an X post, citing Grayscales court win.Galaxy has proposed a spot bitcoin ETF with partner Invesco.

Matrixport co-founder Jihan Wu defended Thielens report, saying he believes spot bitcoin ETF approval at some point is inevitable. Thielen did not return a request for comment.

Lucas Kiely, chief investment officer of digital wealth platform Yield App, called bitcoins Wednesday price dip a buying opportunity.

Should the SEC once again reject bitcoin ETFs, it would this time be blocking attempts from not just crypto-focused firms, but from fund giants such as BlackRock, Fidelity, Invesco and Franklin Templeton.

BlackRock, which manages roughly $9 trillion in assets, has only ever had one ETF proposal rejected by the SEC a so-called non-transparent fund structure in 2014.

There is too much pressure and expectation from the worlds biggest asset managers for Gary Gensler and the rest of the approval committee to keep kicking the can down the road, Kiely said.

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With bitcoin ETF decision imminent, industry watchers debate if SEC will delay - Blockworks

After an early positive start to 2024, crypto prices took a turn Wednesday, leaving investors and analysts searching for answers.

Earlier in the week, bitcoins price had seen an upswing, fueled by growing anticipation around the possibility of the US Securities and Exchange Commission approving a bitcoin ETF. However, the mood shifted when bitcoins (BTC) value dropped by 8% early Wednesday to around $40,800, falling from its highs of close to $46,000 on Tuesday.

Some have attributed this downturn to a report from Matrixport, a crypto financial services platform. Matrixports analysis suggested that the SEC is likely to reject all bitcoin spot ETF applications in January. However, ETF experts are skeptical of the companys findings, labeling the speculation as misguided.

Matrixport analysts said the SECs voting group is dominated by Democrats and Chair Gensler is not embracing crypto in the US, and therefore an ETF approval is far off.

Read more: Fees, seeds and APs: What we know and dont know about the planned bitcoin ETFs

Matrixport added that a denial from the SEC will lead to cascading liquidations as we expect most of the $5.1 billion in additional perpetual long Bitcoin futures to be unwound.

We could see Bitcoin prices declining by -20% very quickly and falling back to the $36,000/$38,000 range, Matrixport added.

Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, said Matrixports claims would have made more sense back in the fall. Given the extensive meetings the SEC has held with potential issuers, the products are all but a done deal, safe for interference from the highest levels of government.

While traders may have been spooked by Matrixports pessimism, other analysts say there are other factors at play.

A more likely reason for the drop is an overheated market, Noelle Acheson, author of the Crypto is Macro Now newsletter, said. BTC basis the spread between the futures price and the spot price, and an indicator of trader sentiment had reached stretched levels, even on the usually sober CME.

Premiums on bitcoin futures contracts hit more than $2,000 Tuesday, a sign some experts say points to increased interest in the asset.

Usually the spot and futures market for bitcoin trade at the same price, Michael Zhao, researcher at Grayscale, said. However, because the CME futures price of bitcoin is higher relative to the spot price, one could hypothesize that there is institutional anticipation for a market event like the spot bitcoin ETF approval, given its been bid up so hard.

Matrixport may be bearish on ETF prospects, but the firm said it is confident that regulators will green light another crypto operation in 2024: a rebooted version of the bankrupt FTX exchange.

While the announcement of FTXs winning bid could occur in December 2023, we project the exchange to be operational by May or June 2024, analysts from Matrixport wrote in a research note published in November 2023.

In its latest reorganization plan released in mid-December 2023, FTX did not include information about whether it would attempt to restart the exchange.

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Bitcoin falls 8% on anti-ETF news, analysts remain confident - Blockworks

The SEC is holding meetings today with major exchanges, including the New York Stock Exchange, Nasdaq, and the Chicago Board Options Exchange (CBOE), regarding spot Bitcoin ETFs.

The information was revealed by a Fox Business journalist earlier today, bringing some sense of relief for the wider crypto community after crypto services firm Matrixport reported that the SEC would likely reject all ETF applications in January. This report triggered a major liquidation in todays market, as the crypto market lost more than $540 million in just four hours.

SCOOP: The @SECGov is holding meetings today with the exchanges (@Nasdaq, @CBOE, @NYSE) to finalize comments on the 19b-4s submitted by the $BTC Spot ETF issuers.

Despite Matrixports report of a possible denial, Bloombergs analysts have claimed that no substantial evidence pointing towards a rejection of the ETFs has been reported.

People tagging me like crazy on this rejection report. We have heard nothing to indicate anything but approval but I want to give the guy benefit of doubt so Im asking if he has any sources or if he just speculating. He seems to be bitcoin bull and recently tweeted https://t.co/KV7k4NXtba

There was a brief debate on X between Bloomberg analyst Eric Balchunas and Matrixports Markus Thielen, who published the potential rejection report. Thielen clarified that the report wasnt based on any comments from SEC insiders or the ETF applications. However, he cited consensus among researchers to reach this prediction and has turned bearish on Bitcoin.

My report is not based on issuer, nor on SEC insider comments. Obviously this is massively out of consensus. I do think the SEC will vote it down. And yes, after being the biggest bull all year (predicted 45k by Xmas on Feb 1), I turned bearish today but the arguments were ready

However, todays meeting suggests a more optimistic outlook, aligning with broader market expectations of a possible approval by the SEC, potentially as soon as the following week. Jan. 10th has been identified as a critical date, marking a deadline for the numerous spot Bitcoin ETF applicants.

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SEC holds urgent meetings with Nasdaq and NYSE to discuss Bitcoin ETFs - crypto.news

Options trading analysts pointed to Jan. 10 and beyond as the timeline for an SEC decision on spot Bitcoin ETFs amid bearish speculation that all applications may be rejected.

Greekslive noted that a U.S. Securities and Exchange Commission (SEC) stand on spot Bitcoin (BTC) ETFs was unlikely to arrive before Jan. 7, citing stock price actions from crypto mining operations and digital asset-related companies in America.

Current month puts are now cheaper, and block trades are starting to see active put buying, with options market data suggesting that institutional investors are not very bullish on the ETF market.

The likelihood of the ETF's passage became less and less likely, and the market saw a stalemate. Weakness in crypto mining stocks, and the sell-off in several crypto-related U.S. stocks, also reinforced the market's skepticism. ATM option IV plummeted to 52% for the week and pic.twitter.com/orjr1Wcwwf

The report was released to a market gripped by speculation surrounding 14 spot Bitcoin ETF applications filed by TradFi giants like BlackRock and crypto-native entities like Hashdex. Such products have been historically rejected by the SEC, although recent developments indicated by multiple meetings and updated filings fueled optimism for a different outcome in 2024.

However, some opinion leaders surmised that the SEC could delay spot Bitcoin ETFs beyond January. Indeed, Matrixport said the SEC may reject all bids for a fund that invests in Bitcoin at spot prices as crypto.news reported.

Legal experts said this outcome could result in litigation against the SEC due to a court ruling during the Grayscale case.

If the @SEC were to deny all spot $BTC ETFs, the applicants would immediately sue and the D.C. Court of Appeals would again rule that the SEC was arbitrary & capricious.

The SEC gave every reason they had for denying Grayscaleand lost.

I expect multiple approvals on Jan. 10.

A massive 7% drop followed the report from Matrixport in BTCs price as the token dipped below $43,000 and triggered over half a billion in liquidations across crypto markets. These liquidations had occurred within only four hours at press time.

While Matrixport expects Bitcoin to return toward $36,000, the company foresees a surge in BTC prices this month. Analysts at the crypto startup predicted a surge to at least $50,000 before February and a new all-time high above $125,000 by the years close.

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Greekslive: Spot Bitcoin ETF approval unlikely until 2nd week of January - crypto.news

The United States-based exchange Cboe accepted the registration for listing shares of a spot Bitcoin (BTC) exchange-traded fund proposed by Fidelity Investments.

In a Jan. 3 filing with the U.S. Securities and Exchange Commission (SEC), the Fidelity Wise Origin Bitcoin Fund said it intended to register its shares as securities listed on the Cboe BZX Exchange. The Form 8-A filing, while part of the process of registering an ETF with the SEC, did not necessarily suggest the commission would approve the investment vehicle.

My understanding here is that this is just a securities registration, said Bloomberg ETF analyst James Seyffart on X (formerly Twitter). In order to list the ETF still needs a 19b-4 approval and they need an effective/approved/completed S-1 document. No 19b-4 yet [...] Im still looking towards next week.

Seyffart pointed to Bitwises spot Bitcoin ETF registration with NYSE Arca, filed on Dec. 29, but both filings dont mean theyre approved or anything yet, according to the analyst. Volatility Shares Trust filed Form 8-A with the SEC in June ahead of its launch to list shares of a leveraged Bitcoin futures ETF on the Cboe BZX Exchange.

Many on social media seemed confused at the distinction between full SEC approval of a spot Bitcoin ETF and the registration with a U.S. exchange. Some experts, including Seyffart, have speculated that the commission could approve multiple spot BTC exchange-traded product applications ahead of a Jan. 10 final deadline for a crypto investment vehicle from ARK Invest and 21Shares.

Related: Likely rejection or smooth sailing? Experts weigh in on potential spot Bitcoin ETF

Despite many applications from asset managers, including Bitwise, Fidelity, WisdomTree, Invesco Galaxy, Valkyrie and VanEck, the SEC has never approved a spot BTC exchange-traded product for listing and trading on a U.S. exchange. In June 2023, BlackRock the firm with roughly $9 trillion in assets under management applied for a spot Bitcoin ETF in the United States.

While the SEC has not approved any spot crypto ETF, it has given the green light for investment vehicles linked to BTC and Ether (ETH) futures. Many in the industry have suggested that approving a spot in Bitcoin ETF could increase crypto adoption and potentially increase the acceptance of blockchain technology.

Magazine: 10 best long reads about crypto in 2023

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Cboe approves registration for listing Fidelity spot Bitcoin ETF no SEC approval yet - Cointelegraph

Crypto asset manager Grayscale Investments isreportedly in talks with firms, including JPMorgan and Goldman Sachs, about a potential role in its proposedspot Bitcoin (BTC) exchange-traded fund (ETF).

Bloomberg reported on Jan. 4 that Grayscale held talks with both investment banks for the role, citing sources familiar with the matter. It comes less than a week after Grayscale filed an amended S-3 application with the United States Securities and Exchange Commission but didnt list any authorized participants.

Meanwhile, an earlier media report alsosuggestsGoldman Sachs is in discussion with BlackRock to act as an authorized participant for its ETF, citing sources familiar with the matter.

BlackRock previously amended its S-1 filing to name quantitative trading firm Jane Street and JPMorgan as authorized participants in its proposed ETF.

An authorized participant plays a key role in managing an ETF, as it facilitates the creation and redemption of shares in the fund.An ETF issuer can name multiple financial firms to act as authorized participants.

Notably, ETF applicants arent required to name authorized participants in their S-1 or S-3 filings, meaning that other financial firms could still come on board.

Related: Likely rejection or smooth sailing? Experts weigh in on potential spot Bitcoin ETF

While JPMorgan has already been named as an authorized participant for several proposed spot Bitcoin ETFs, Goldman Sachs could join other Wall Street giants, including Cantor Fitzgerald and Jane Street, which have been given an authorized participant role for other ETF issuers.

Goldman Sachs has historically held a neutral stance toward cryptocurrencies and the digital asset sector. In a Dec. 27 interview with Fox Business, Goldmans head of digital assets, Matthew McDermott, said that a Bitcoin ETF approval would help the crypto market mature and invite increased institutional investment into digital assets more broadly.

A spot Bitcoin ETF has never been approved in the United States. However, ETF analysts predictthe likelihood of approval is 90% before Jan. 10.

There are currently14 asset managers are looking to issue a spot Bitcoin ETF, which would provide institutional investors with direct and regulated exposure to Bitcoin in the United States.

Magazine: Which gaming guild positioned itself best for the bull market?

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Grayscale in talks with JPMorgan, Goldman Sachs for Bitcoin ETF role: Report - Cointelegraph

Bitcoin holders have lots to be happy about in the New Year: Prices are up, a spot ETF seems all but approved, and a record number of bitcoins havent moved in one year. Today is even Bitcoins 15th birthday.

The US government should also be chuffed. Thanks to a healthy price rally, the Feds are now holding at least $8.3 billion in bitcoin up from $5 billion less than three months ago.

Between November 2020 and 2022, authorities in three separate actions altogether disclosed seizing 207,189 bitcoin (BTC) tied to seminal dark web market Silk Road, its hacker Jimmy Zhong, as well as the hackers of crypto exchange Bitfinex.

Read more: DOJ gets Silk Road coins worth $305M stuck in Bitcoin mempool

Less than 5% of those hauls have been sold after officials offloaded 9,861 BTC once owned by Silk Road on Coinbase last February. The trades netted $215 million for $21,800 per bitcoin on average, about half the current price.

US attorneys at the time said they intended to sell the rest of Silk Roads bitcoin 41,491 BTC worth $1 billion then and $1.8 billion today in four batches over the next calendar year, a period which expires in two months.

Only one batch has been potentially processed so far, when the US Department of Justice sent 8,200 BTC ($252 million then, $350 million now) to Coinbase last July. But its so far unconfirmed whether any trades actually took place.

Counting those transactions as sales would mean the US has generated $640 million by seizing and selling bitcoin over the past decade.

The price of bitcoin has multiplied 70 times in that time. Had the US government opted to hold all its seized bitcoin, rather than sell it, the Feds would still have around 400,000 BTC ($17.4 billion), nearly double its current cache.

Markets could indeed see more Silk Road bitcoin dumped by the US government over the next couple of months. Theres however no word yet on a timeline to sell the bitcoin seized from Bitfinex hackers Ilya Dutch Lichtenstein and Heather Razzlekhan Morgan.

In any case, the US could have the largest government bitcoin stash in the world, according to at least one set of researchers last year. The US was found leagues ahead of El Salvador, Ukraine, Bhutan, Venezuela and Finland, which together hold only 4,000 BTC ($172 million).

China was left out of that particular paper. Beijing seized 195,000 BTC ($8.4 billion) from crypto Ponzi scheme PlusToken in 2020 alongside swathes of other cryptocurrencies, including ether (ETH) and XRP.

If Beijing hasnt sold too early like the US, that would put the two superpowers basically tied for bitcoin holdings.

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Happy New Year: US government now holds more than $8B in bitcoin - Blockworks

Many are speculating on the ramifications of the United States Securities and Exchange Commission potentially deciding on exchanges listing a spot Bitcoin (BTC) exchange-traded fund (ETF) ahead of the Jan. 10 deadline.

At the time of publication, the SEC had not announced whether it planned to approve or disapprove of multiple spot BTC exchange-traded product applications in its pipeline. The commission has until Jan. 10 to decide whether to reject or approve listing shares of a Bitcoin ETF from ARK Invest and 21Shares. Analysts speculated that should the SEC approve one spot crypto investment vehicle, it could approve multiple ones.

A Jan. 3 report from 10x Researchs Markus Thielen suggested that despite bullish trends in the price of Bitcoin, ETF applicants hadnt met the requirements necessary for SEC approval. The research paper was released amid reports that the SEC planned to hold meetings with major exchanges to finalize comments on applications submitted by spot crypto ETF issuers.

The prevailing one-sided market consensus anticipates SEC approval of Bitcoin Spot ETFs by next week, said Thielen. We, however, see an opportunity to trade against consensus, emphasizing the risk involved in positioning ahead of events with significant price implications.

He added:

Other analysts have speculated that the SEC will likely approve the offering from ARK Invest and others in the next 10 days, based on meetings with representatives of exchanges and legal precedent. In October, the commission was forced to revisit a spot Bitcoin ETF application from Grayscale Investments after a judge ruled its decision to reject the offering was arbitrary and capricious.

I expect multiple approvals on Jan. 10, said James Murphy, founder of Ludlow Street Advisors, on X. The SEC shot all their bullets against Grayscale. The Court would very likely find the SECs new reason [for potential rejection] pretextual, reject it and I would think sanctions against the SEC lawyers could be in play.

Related: Spot Bitcoin ETFs could be rejected if the SEC wants more time Analyst

The SEC has never approved a spot BTC exchange-traded product for listing and trading on a U.S. exchange despite many applications from asset managers in previous years. In June 2023, BlackRock the worlds largest asset management company applied for a spot Bitcoin ETF in the United States, renewing interest in the investment vehicle and leading to speculation that the commission would need to act.

Thielen, also an analyst for crypto trading platform Matrixport, authored a Jan. 2 report claiming the SEC will reject a spot Bitcoin ETF. After thereport was disseminated across multiple social media platforms and news outlets, Matrixport founder Wu Jihan said on X that it was intended for the firms clients rather than the media.

Magazine: BlackRock meets with SEC over ETF, Binances new era begins and SBF loses release bid: Hodlers Digest, Nov. 1925

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'Likely rejection' or smooth sailing? Experts weigh in on potential spot Bitcoin ETF - Cointelegraph

The crypto fundraising space keeps showing consistent and gradual recovery, with millions injected into startups rounds of all sizes in December. Among the months highlights, venture capital firm Foresight Ventures disclosed a third $10 million accelerator dedicated to companies exploring artificial intelligence, Bitcoin Ordinals and direct-to-consumer protocols, while Hong Kong-based GBA Capital also pledged $10 billion to establish a Web3 fund.

In Asia's biggest blockchain series funding round, South Korean nonfungible token (NFT) developer Line Next raised $140 million from a consortium spearheaded by Crescendo Equity Partners, a private equity firm backed by Peter Thiel.

According to data from Messari, there was an impressive 81% surge in the total deal volume in the last quarter of 2023, reaching $3.83 billion. Among the key investment rounds over the past three months were Blockaid securing $33 million, Ritual raising $25 million, Drift with a $23.5 million round, Blast at $20 million, and Privy closing a deal at $18 million.

Cointelegraphs venture capital (VC) roundup outlines some of December's most successful ventures.

Bitcoin startup Lolli has raised $8 million in a series B round led by BITKRAFT Ventures, according to an announcement on Dec. 14. Participants in the round included previous backers such as Serena Williams' Serena Ventures, as well as new investors like Sfermion, Ulta Beautys Prisma Ventures, Hypersphere Ventures, Rahul Pagidipati, 2 Punks Capital, and MZ Web3 Fund. Lolli provides shoppers with Bitcoin and cash back rewards at a number of retailers, including Ulta Beauty, Groupon, and Booking.com. The company claims to support over 25,000 stores and has allegedly given out more than $10 million in Bitcoin rewards since its creation in 2018. With the funds raised in the round, Lolli intends to expand its rewards services to other enterprises, including payment service providers.

NodeKit has raised $1.2 million in a pre-seed round to develop its shared sequencer on Avalanche Subnet for decentralized rollups. The round was led by Borderless Capital with participation from Avalanches Blizzard Fund, Polygon Ventures, Wormhole Cross-Chain Ecosystem Fund, and angel investors such as Avails Anurag Arjun. NodeKit's SEQ focuses on optimizing performance, robustness, and interoperability for rollups, thus allowing a decentralized network of validators. "Further, rollups integrating with SEQ will gain new cross-chain interoperability. This interoperability is possible because SEQ orders blocks for multiple rollups, allowing for atomic inclusion using atomic bundles within the same block," the startup said in a statement. SEQ is one of the first initiatives to leverage Avalanches HyperSDK toolkit. On testnet, HyperSDK has hit 140,000 transactions per second.

The venture capital arm of crypto exchange HTX (formerly Huobi) invested in at least two new companies in December. According to announcements, HTX Ventures portfolio now includes Academic Labs, a platform that uses AI and Web3 technology for digital assets education, and Cumulus Encrypted Storage System (CESS), a blockchain-powered decentralized storage and content delivery network (CDN) infrastructure for Web3. HTX Ventures has not disclosed how much it invested in the companies. However, CESS revealed that the funding round attracted a total of $8 million from various investors, including HTX Ventures. Academic Labs offers education in software development, trading strategies, business English, and startup foundations using adaptive artificial intelligence and NFTs to gamify practical learning. CESS, on the other hand, offers a platform for on-chain data sharing and value transactions, allowing developers to build and deploy DApps. In both rounds, funding will support projects expansions and product developments.

The Interchain Foundation (ICF) announced a $26.4 million budget for its funding program in 2024. According to an announcement, the capital will be used to maintain and develop the Interchain Stack, an open-source and decentralized blockchain ecosystem or blockchain-based apps and services. Projects underwritten by the program include Binary Builders, Confio, Cosmology, Informal Systems, Strangelove Ventures, and Zondax. The Interchain Foundation supports the Cosmos network and its ecosystem. Its roadmap for the coming months includes expanding composability of the Cosmos SDK, as well as investments on the CometBFT platform, on the Inter-Blockchain Communication Protocol, along with funding for the smart contract framework CosmWasm, for the CosmJS library, and security audits for the Interchain Stack.

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VC roundup: blockchain storage, rollups, and Bitcoin rewards draw investors - Cointelegraph

The original cryptocurrency Bitcoin (BTC) experienced sudden, massive and sharp outflows on the15th anniversary of its genesis day, erasing most of its gains over the past 30 days.

Bitcoin tumbled below $42,000 on Jan. 3, losing at least $3,000 of value in just two hours, according to data from CoinGecko. On CoinMarketCap, Bitcoin dropped to as low as $40,700 from its intraday high of$45,600 recorded at the time of writing.

At the time of writing, Bitcoin is trading at $42,608, down nearly 6% over the past 24 hours, CoinGecko data shows. The cryptocurrency is also down 1.5% over the past 14 days while seeing almost no gains over the past 30 days.

The sharp drop in BTCs price came as digital financial services platform Matrixport retracted its recent forecast that the United States Securities and Exchange Commission would potentially approve the first spot Bitcoin exchange-traded funds (ETFs) in January 2024.

Matrixport took to X (formerly Twitter) on Jan. 1 to express confidence that Bitcoin would surge to $50,000, driven by factors like an imminent Bitcoin spot ETF approval. The firm also stated that a potential spot Bitcoin ETF approval could be announced even ahead of most traders expectations for approval on Jan. 8, 9 or 10.

Just a day after issuing a forecast on possible approvals in 2024, Matrixport made a U-turn on its prediction, updating its forecast on Jan. 2 to claim that the SEC willreject all Bitcoin spot ETFs in Januaryand that spot Bitcoin ETF approvals wont come before Q2 of this year.

Related:Peter Schiff says spot Bitcoin ETF could crash BTC price

The community reacted quickly to Matrixports controversial forecasts, with many accusing the firm of manipulating Bitcoins price.

Bitcoin investor Alistair Milne noticed that Matrixport was founded by Jihan Wu, a Chinese billionaire crypto entrepreneur and co-founder of the crypto mining firm Bitmain. Industry analyst James Van Straten noted that Wu is a prominent supporter of Bitcoin Cash, a hard fork of Bitcoin created in 2017.

If anyone believes anything that Matrixport publishes, I have a bridge to sell to you, the analyst wrote.

Some major spot Bitcoin ETF observers have also reacted to the news. We have heard nothing to indicate anything but approval but I want to give the guy benefit of doubt so Im asking if he has any sources or if he just speculating, Bloomberg ETF analyst Eric Balchunas wrote on X.

"To be clear tho: not saying rejection outright impossible, Balchunas later stated, adding, But weve heard nothing to indicate that.

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Bitcoin plunges $3K in just 2 hours on 15th anniversary of genesis day - Cointelegraph

Coinbase country head for Singapore Hassan Ahmed believes the approval of a spot Bitcoin exchange-traded funds (ETF) will be the catalyst for a structural market change for the flagship digital asset.

Ahmed made the statement during an appearance on CNBC International on Jan. 2. He said:

[The ETFs] are as big a deal as people are making it out to be.

Ahmed added that the ETF hype is more than a mere trend and will create a regulated path for trillions of dollars to come into the industry that has so far been locked out of the asset class.

Ahmed said that the SEC is currently making way for the ETFs, which have been in the works for more than a decade now. He said it is likely that the SEC will give the industry an update by the Jan. 10 deadline.

According to the Coinbase exec, the SEC is unlikely to reject the spot ETFs as its hand has been forced by approving the futures Bitcoin ETF in the past. Since the two are similar structurally, the regulator does not have a good reason to continue rejecting them.

He added that the regulators recent actions point to a positive outcome; however, nothing is a done deal.

Ahmed said that once these ETFs are approved, it will further destigmatize and legitimize Bitcoin for institutional investors like wealth managers and asset managers in the U.S. who have been waiting on the sidelines for years now.

The ETFs will almost certainly lead to increased demand for the flagship cryptocurrency.

Ahmed pointed out two key catalysts for Bitcoin in 2024: an increase in demand and a reduction in supply due to the upcoming halving event. He posited that these factors could lead to explosive growth for Bitcoin.

Ahmed added that the demand for Bitcoin block space is rising on the back of Ordinals and Inscriptions, which has led to BTC transaction fees hitting a relative high since 2020.

According to the Coinbase executive, this trend will lead to additional miner revenue and network security in the long term.

The potential approval of this ETF is seen as a pivotal moment in the cryptocurrency sector, indicating a growing acceptance and institutional interest in digital assets. This development, Ahmed suggests, could provide a compliant and familiar channel for asset managers and allocators to engage with the asset class.

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Coinbase exec claims spot Bitcoin ETF is not overhyped - CryptoSlate