SEC delays BlackRock Ethereum ETF decision, Polymer Labs secures $23M, OKX token sees dramatic drop, Nexo claims $3B from Bulgaria.
BlackRock Ethereum ETF Delayed by SEC

BlackRock Ethereum ETF Delayed by SEC

Jan 25, 2024
| Issue

Welcome to the latest update from Datawallet Daily. As always, we’re bringing you the pivotal stories that have shaped the crypto world in the last 24 hours:

BlackRock Ethereum ETF Delayed by SEC

In the latest development within the crypto exchange-traded fund (ETF) landscape, the U.S. Securities and Exchange Commission (SEC) has postponed its decision on BlackRock's proposed spot ether ETF. This move, aligning with earlier delays on similar proposals, including Fidelity's fund, extends the decision timeline to March 10. This delay was anticipated by industry experts following the SEC's recent approval of numerous spot bitcoin ETFs, which signaled a shift in regulatory perspectives.

Despite this progress for bitcoin ETFs, spearheaded by the votes of SEC Commissioners Hester Peirce, Mark Uyeda, and Chair Gary Gensler, the path forward for ether ETFs remains uncertain. The SEC’s current stance on ether ETFs was clarified by Commissioner Peirce, who emphasized the agency's intention to leverage existing precedents in future evaluations. This approach aims to avoid repeating past legal challenges faced in the approval process of crypto funds.

The SEC's decision delay reflects a cautious approach towards crypto asset securities, as articulated by Chair Gensler. He underlined that recent Bitcoin ETF approvals should not be interpreted as a broader acceptance of listing standards for crypto assets.

Polymer Labs Raises $23M for Ethereum Interoperability Hub

Polymer Labs, an Ethereum Layer 2 developer, has successfully raised $23 million in Series A funding, led by Blockchain Capital, Maven 11, and Distributed Global, with participation from Coinbase Ventures and others. The funding will advance Polymer’s project to build an Ethereum interoperability hub, aiming to connect Ethereum and its rollups and eventually all blockchains. 

Utilizing the Inter-Blockchain Communication protocol and Optimism Stack, Polymer seeks to enable secure and efficient cross-chain communication. The fresh capital will help expand its team and launch its mainnet, following the anticipated testnet release. This initiative positions Polymer at the forefront of addressing interoperability challenges in the blockchain ecosystem.

OKX Token Plummets 50% Amid Liquidation Cascade

OKX’s native exchange token, OKB, experienced a rapid 50% drop in just three minutes due to a series of liquidations caused by abnormal price fluctuations. However, OKB has since rebounded from a low of $25.17 to $45.64, with its 24-hour trading volume surging by 2,100% to reach $79 million, as reported by CoinMarketCap. 

The exchange has assured affected users that they will be fully compensated for losses resulting from the liquidation cascade, including losses from on-chain trades. OKX also plans to optimize its risk control rules and mechanisms to prevent similar incidents in the future. Despite the crash, OKB remains one of the largest exchange tokens with a market cap of $2.8 billion. 

Nexo Seeks $3B in Damages From Bulgaria

Cryptocurrency lender Nexo has initiated an arbitration claim against Bulgaria, seeking $3 billion in damages. Nexo alleges that Bulgaria engaged in “wrongful and politically motivated actions” involving unjustified and oppressive criminal investigations. The Bulgarian Prosecutor’s Office closed its money laundering investigation against Nexo in December due to a lack of evidence. 

Nexo contends that these investigations harmed its brand, reputation, and potential business opportunities, including a U.S. IPO. The arbitration claim has been submitted to the International Centre for Settlement of Investment Disputes (ICSID) at the World Bank in Washington, DC. 

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