A spot Bitcoin ETF has been approved, but hiccups have begun. One stablecoin is released and Bitcoin takes off for the moon and gets lost in space?! This week we bring you these stories and more in cryptocurrency.
Bitcoin makes history
On Wednesday, the US SEC finally approved 11 spot Bitcoin ETFs in a process that began in 2013 when the Winklevoss twins first sought approval. On the first trading day, trading volume exceeded $4 billion on the New York Stock Exchange, NASDAQ, and CBOE. Grayscale’s Bitcoin ETF accounted for half of the trading volume, with $1 billion coming in in the first hour after the market opened. BlackRock’s iShares Bitcoin ETF accounted for most of the remaining half, with $1 billion in first-day trading volume.
Fake tweets shake up markets
A day before the approval was announced, a fake tweet resulting from the SEC’s hack of the The account was hacked through the associated phone number, possibly because the account did not use two-factor authentication. The post was quickly exposed as a scam, but not before it resulted in $90 million in Bitcoin liquidation.
Bitcoin plummets as euphoria ends
After the first ETF began trading in the U.S., Bitcoin briefly topped $49,000 for the first time since December 2021. However, the next day, the price of Bitcoin fell below $42,000, plunging nearly 10% as euphoria over the ETF’s approval turned into a ‘sell’. A major defeat in the news.
SEC: We do not support Bitcoin
SEC Chairman Gary Gensler said the ETF approval was granted reluctantly, emphasizing that the decision does not reflect the commission’s support for Bitcoin itself. Gensler said last year’s Grayscale court decision led to the commission’s decision but did not imply support for Bitcoin or any other cryptocurrency asset. It’s a category he still considers speculative and volatile.
USDC Issuer File for IPO
Circle, the creator of the stablecoin USDC, has filed for an initial public offering (IPO) to take the company public. The IPO is expected to take place after the SEC completes its review process. USDC has a market capitalization of $25 billion, making it the second-largest stablecoin behind Tether, which boasts a market capitalization of $95 billion.
New Ethereum Improvement Proposals
In an Ask-Me-Anything session, Ethereum co-founder Vitalik Buterin recommended increasing the gas limit by around 33% to increase network capacity and reduce user costs. However, this proposal comes with some risks, as larger blocks may increase energy consumption, increasing the likelihood of chain splits and block discards.
X discontinues NFT profile pictures
Social media platform Formerly known as Twitter,
Houston, we have a problem.
The Peregrine 1 space mission recently departed carrying a commemorative plaque for the Bitcoin Genesis block and a special Bitcoin token engraved with a private key of 1BTC. mission? Placing these items on the lunar surface is a symbol of Bitcoin’s remarkable progress in technological advancement. Unfortunately, there appears to be an issue with the rocket’s propulsion system, making it unclear whether Bitcoin will be able to safely reach the moon.
This is what happened in the cryptocurrency market this week. I will see you next week.