Bitcoin ETF: Slow Start, Huge Long-Term Potential

Bitcoin ETF: Slow Start, Huge Long-Term Potential

Bitcoin ETF's potential, $81.5M Orbit Chain Bridge hack, Ethereum's 2024 roadmap, and controversy over halting SBF's second trial.

Welcome to the first edition of Datawallet Daily for the year. As always, we’re spotlighting the key stories that have shaped the crypto market in the past 24 hours:

Bitcoin ETF: Slow Start, Huge Long-Term Potential

The launch of spot Bitcoin ETFs in the U.S. might not significantly impact Bitcoin’s price immediately, according to VanEck adviser Gabor Gurbacs. He anticipates initial ETF inflows of around $100 million, primarily from large institutions. Drawing a parallel with gold’s market response to its ETF in 2004, Gurbacs suggests Bitcoin could follow a similar, but faster, price appreciation due to its capped supply. 

He underscores the ETF’s potential to legitimize Bitcoin among institutional investors and nation-states. Bloomberg analysts Eric Balchunas and James Seyffart agree, emphasizing the ETF’s long-term significance over short-term inflows. Currently, Bitcoin is trading at approximately $42,525.

Orbit Chain Bridge Suffers $81.5M Hack

Orbit Chain’s cross-chain bridge reportedly suffered a hack resulting in the loss of $81.5 million in various cryptocurrencies and stablecoins. Five separate transactions were made to new wallets, transferring $50 million in stablecoins (30 million Tether, 10 million DAI, and 10 million USDC), 231 wBTC (worth about $10 million), and 9,500 eth (approximately $21.5 million). The incident was first detected by a user on social media. 

Orbit Bridge is closely associated with the Klaytn ecosystem, as many of its top tokens by market cap are Orbit Bridge wrapped assets. The specific details of the hack are currently unclear, and Orbit Chain has not provided immediate comments on the situation.

Vitalik Buterin Unveils Ethereum’s 2024 Roadmap Update

Ethereum co-founder Vitalik Buterin has unveiled an updated roadmap for Ethereum’s development through 2024, largely echoing the objectives set in 2023. Key areas of focus include the Merge, transitioning to proof-of-stake consensus; the Surge, aiming for 100,000 transactions per second; the Scourge, addressing risks like maximal extractable value (MEV) and centralized staking pools; the Verge, for simplified block verification; the Purge, to streamline the protocol; and the Splurge, encompassing additional aspects. 

Buterin emphasized addressing Ethereum’s economic centralization and enhancing network efficiency. The roadmap, while prioritizing these goals, does not specify a detailed timeline for their implementation.

Coinbase Lawyer, RFK Jr. Slam Halting of SBF’s Second Trial

Sam Bankman-Fried won’t face a second trial for charges including foreign bribery and bank fraud, as U.S. prosecutors drop these remaining allegations. The decision, particularly not to pursue charges of unlawful political donations, has sparked widespread criticism. Robert F. Kennedy Jr., a presidential candidate, and Coinbase’s Chief Legal Officer, among others, condemned the move, emphasizing the importance of transparency in political finance. 

Prosecutors argue that evidence from Bankman-Fried’s first trial, where he was found guilty on all counts, will influence sentencing. However, the crypto community and public figures express concern over the implications of omitting a public trial on these critical charges. Bankman-Fried’s sentencing is set for March 28, 2024.

Other breaking news

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