Howdy folks,
What a week this has been!
On Tuesday, Bitcoin (BTC) soared above $45k, its highest since April 2022, only to retreat amid a bearish sentiment fueled by social media and a Matrixport report predicting the SEC’s rejection of all spot BTC ETFs. Despite the drop to just over $40k, BTC rebounded to around $44k, reflecting the market’s volatility and investor response to regulatory speculations.
In compliance news, Coinbase UK is adapting to the Financial Conduct Authority’s (FCA) stringent financial promotion rules. The exchange has revamped user requirements, now mandating forms to continue using the service, showcasing its commitment to align with the FCA’s regulations.
The crypto ETF market witnessed a significant inflow of $2.25 billion in 2023, with Bitcoin claiming a dominant 87% share, totaling $1.9 billion. This surge, over 2.7 times the inflow from 2022, underscores Bitcoin’s preeminence in the digital asset space.
Optimism for a spot Bitcoin ETF approval grows, with Bloomberg ETF Analyst Eric Balchunas suggesting favorability from three out of five SEC commissioners. As the January 10 deadline nears, his insights contribute to the anticipation surrounding the SEC’s decision, keeping investors on edge.
Let’s dive into this week’s heavy hitters:
1. Bitcoin ETFs See $1.9 Inflows in 2023, Reach 87% Dominance
While markets anticipate the Securities and Exchange (SEC) decision on Spot Bitcoin exchange-traded funds (ETFs), similar products have been gaining ground. ETFs in the US and spot funds in other countries have seen significant growth in 2023.
The industry saw a record influx of investments, totaling $2.25 billion for the year. This surge in inflows was led predominantly by Bitcoin.
2. Bitcoin ETF Favored by 3/5 SEC Commissioners: ETF Expert
As the next deadline for the SEC to decide on spot Bitcoin ETF applications approaches, the crypto markets are beginning to feel the tension, and even experts have not been excluded from these jitters.
3. Coinbase UK Shows Full Cooperation to FCA’s Stringent Rules
The Federal Conduct Authority (FCA), the vigilant guardian of the UK’s financial markets, recently intensified its crypto regulation efforts, unfurling stringent laws that initially prompted several major exchanges, including Binance, Paypal, and Bybit, to exit the country. While many platforms scurried away, Coinbase, on the other hand, decided to stay, complying with everything the financial watchdog threw their way.
4. Crypto Payments Now Accepted by 312 Major Brands: Study
Crypto payments are becoming increasingly available to users, especially in retail. A recent study by CoinLedger has highlighted the diverse sectors now embracing cryptocurrency as a viable payment method.
The retail and e-commerce sector leads the way, with major brands such as Adidas, H&M, and Etsy now accepting digital currencies.
5. What Is EVM Parallelization, and Why Is It Driving Sei Hype?
A new narrative emerges every few months to spark excitement and drive speculation in the crypto markets. In 2023, dominant narratives included Artificial Intelligence (AI), Ethereum rollups, and real-world asset tokenization.
As 2024 enters into gear, a new narrative called EVM parallelization is springing up, driving excitement around the Sei blockchain.
In this article, DailyCoin breaks down the concept of EVM parallelization and why it’s such a big deal.
6. Daily Bitcoin Fees Now Exceed All Other Blockchains
Transaction fees are critical for incentivizing network support from miners and validators. Transaction fees are dynamic and typically depend on the level of network activity, with high network activity generally equating to higher fees to use the network.
With the growing popularity of Ordinals, competition for Bitcoin block space is heating up, pushing transaction fees higher. Daily Bitcoin fees are now greater than all other blockchains, including Ethereum, which already has a reputation for sky-high fees.
