Discover ARK Invest's ETF proposal, Russia's digital ruble initiative, Coinbase's new lending platform and more on today's newsletter.
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ARK Invest and 21Shares File Proposal for Spot Ether ETF

ARK Invest and 21Shares File Proposal for Spot Ether ETF

Discover ARK Invest's ETF proposal, Russia's digital ruble initiative, Coinbase's new lending platform and more on today's newsletter.

Last update:
Sep 7, 2023
| Issue
#
99

Welcome to the 99th edition of Datawallet Daily. Today’s drop covers the following topics:

ARK Invest and 21Shares file proposal for spot Ether ETF

Ark Invest and 21Shares are spearheading a significant move in the crypto sector with their recent proposal to the SEC to launch a spot ether ETF, aiming to amplify their foothold in the crypto product landscape. This initiative is in tune with the SEC's ongoing deliberations on green-lighting spot bitcoin ETFs and ether futures funds. 

Notably, this ETF intends to directly hold ether, which currently stands as the second-largest entity in the crypto market, boasting an approximate valuation of $195 billion. If approved, this venture is slated to make its trading debut on the Cboe BZX Exchange, although finer specifics remain under wraps.

This move, marked by a Wednesday filing, showcases a strategic reaction to the evolving regulatory environment, with the SEC showing increased openness towards such ventures, especially following their recent courtroom loss to Grayscale Investments. This changing tide has sparked a surge in optimism among analysts regarding the potential approval of US spot bitcoin ETFs by the close of 2024.

Digital ruble will displace banks, claim Russian lawmaker

In a recent meeting, Anatoly Aksakov, a Russian lawmaker and the head of the State Duma Banking Committee, stated that with the advancement of blockchain technology, banks will eventually become obsolete. Although no concrete plans have been implemented in Russia to eliminate banks entirely, Aksakov believes that their role will diminish over time. The growing acceptance of blockchain technology as the foundation for cryptocurrencies has prompted institutions to adopt it more widely. 

Additionally, central banks in various countries, including Russia, have begun exploring the concept of central bank digital currencies (CBDC) as an alternative to traditional assets. In fact, Russia has already initiated a pilot program involving its own digital currency called the digital ruble in collaboration with banks. As these developments progress further and gain momentum within financial systems worldwide, it is expected that reliance on traditional banking institutions will gradually decline.

Circle joins forces with Legend Trading

Circle, a cryptocurrency company, and Legend Trading, an institutional-grade trading platform, have recently made a joint announcement regarding their expansion plans for stablecoin services in the Latin American and Asia-Pacific regions. According to Decrypt's report, this collaboration is aimed at enhancing the accessibility of USDC to cater to the needs of large entities and institutional customers who are actively engaged with Legend Trading in these two fast-developing markets.

Coinbase is launching a lending platform for institutional investors

Coinbase plans to introduce a cryptocurrency lending platform specifically designed for institutional investors in the United States. The aim is to address the void left by lending firms that failed during the industry's crisis in 2019. This new service enables institutions to lend out digital assets using standardized terms and adheres to Regulation D exemption requirements, allowing for capital raising without full SEC registration. Coinbase has reportedly stated their intention to provide this much-needed solution for institutional investors.

BTC on-chain metrics points to mire bearishness 

The doubt surrounding the medium-term market outlook for cryptocurrency has resurfaced due to modifications in important measures for the largest digital asset globally. These changes primarily involve on-chain and technical indicators.

Although bitcoin (BTC) has experienced a gain of over 55% since the beginning of the year, it is still showing signs of exhaustion among buyers, as both investor sentiment and conviction appear to be diminishing.

Bitcoin initially saw a surge in value after Grayscale's recent victory against the SEC. The victory allowed Grayscale's application for a spot bitcoin ETP to be reviewed by regulators. As a result, the price of bitcoin rose above $28,000 on August 29th.

Other breaking news

Wrapping up

That’s all for today’s edition, folks. Stay tuned and we look forward to bringing you more insights in tomorrow’s edition.