Bitcoin ETF Looks Likely

$122M SOL Staked | $60M Arbitrum Grants

Marco Manoppo & Karon Pangestu
October 16, 2023

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Happy Monday. We’re excited to see what comes next from the ongoing SBF trial as Bitcoin rallied over the weekend due to the SEC stating it won’t repeal the court decision regarding Grayscale Bitcoin ETF.

Maybe we’ll actually get a spot Bitcoin ETF before the end of the year?

In Today's Email:

What Matters: SEC on Grayscale ETF 🧑🏻‍⚖️
Products: Vaultka, Arbitrum perp DEX 📈
Charts: $122M staked SOL, US crypto deals lead 📊

Narratives: Arbitrum grants recipients. GMX, Camelot, and MUX Protocol are the largest recipients, accounting for ~60% of all grants. There might be new trading incentives.

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WHAT MATTERS

SEC Won't Appeal Grayscale ETF Court Ruling

The Coin Republic

State of play: The SEC has chosen not to challenge a recent court decision that deemed its rejection of Grayscale's application for a spot Bitcoin ETF as incorrect.

In August, the District of Columbia Court of Appeals ruled against the SEC's rejection of Grayscale's Bitcoin ETF proposal.
The SEC has rejected all spot Bitcoin ETF applications citing market manipulation and investor protection concerns.
Grayscale contended that if the SEC approved surveillance measures for futures-based ETFs, the same should apply to their spot ETF, given both depend on bitcoin's value.

The appeals court said the SEC didn't justify why Grayscale's proposal differed significantly from approved arrangements.

What’s next: The appeals court is set to issue a mandate on executing its decision, likely directing the SEC to reconsider Grayscale's application.

James Seyffart and Eric Balchunas, Bloomberg’s ETF analysts, are confident that there’s a 90% chance of approval on Ark’s spot Bitcoin ETH application.

so TLDR:
SEC decides to not appeal Grayscale case after Friday market close, two nights later, CME opens, nonstop turbo twap bid on BTC, both spot and perps
Market is anticipating? faster process for spot ETF approvals, likely all at once, perhaps not in March 2024 but before… twitter.com/i/web/status/1…
— RunnerXBT (@RunnerXBT)
7:57 AM • Oct 16, 2023

Our take: The SEC may be compelled to approve Grayscale's spot Bitcoin ETF by court mandate.

At worst, they might approve via the 19b-4 procedure and then delay through the Corporate Finance division or another SEC branch.

For builders and investors: Clarity on the ability to issue new spot crypto products will bring more capital into the ecosystem in the long term.

Although the recently launched Ethereum ETF trading volume has been lackluster at best, the industry still needs more regulated products in place to bring institutional capital in when they are ready.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our list of 100 smart crypto investors' wallet addresses 👇

PRODUCTS OF THE WEEK

Vaultka, The Catalyst of Perp DEX on Arbitrum

Vaultka

A custom vault tailored to maximize returns for each LP. Vaultka is a DeFi platform distinctly positioned as a driving force behind the decentralized perps on Arbitrum.

The Vaultka-GLP vault employs a thoroughly examined and fine-tuned algorithm to ensure optimal risk management.
Vaultka's GLP vault offers an economical auto-compounding solution with reduced costs and automated procedures.
Vaultka's Token Generation Event (TGE) begins on October 16th, 2023, at 12PM UTC and concludes on October 19th. The event will release 8M of VKA tokens (8% of total supply).

Other cool products:

1delta, a decentralized margin trading protocol.
ShoppleVerse, a web-based decentralized e-commerce platform.
Sonica, a Web3 no-code platform and launchpad system for projects.
ScieNFT, a platform to publish your research instantly on the blockchain.
CoinColelct, a platform to turn your digital assets into value and engagement.

CHARTS OF THE WEEK

FTX Stakes $122M of Solana

gelato.sh

State of play: The FTX estate staked 5.5M SOL from its main wallet on the Solana blockchain, worth $122M.

A wallet managed by the FTX estate delegated coins to Figment, a network validator, as first observed by on-chain analyst @solanobahn.
The chart above indicates a significant rise in staked Solana on October 14.
On September 11, a court filing revealed the FTX estate has reclaimed around $7B in assets, including over $1B predominantly in staked SOL.

Our take: There were concerns among crypto investors that the FTX estate could liquidate its large Solana holdings. Now, it doesn’t seem that they will be doing so in the short term.

US Maintains Lead in Crypto Deal Count

Messari

State of play: According to Messari, 54% of the crypto investors active in Q3 hailed from the United States, aligning with the four-year average of 55%.

Even as project founders increasingly relocate from the US seeking more friendly regulations, the majority of crypto's accredited investors remain rooted in the US.
Investors from Singapore come in second with almost 100 deal counts.
Investors from the UK recorded almost 50 deal counts, closely followed by those from China.

Our take: The US still has the most important role in crypto innovation. Nearly 48% of all Blockchain startup industry is found in the US alone.

It has to provide regulatory clarity, not just to boost the industry, but also to stay relevant in the future.

QUICK BITES

SEC does not plan to appeal court decision on Grayscale ETF.
Tether appoints CTO as CEO.
MetaMask appears to have been removed from the app store.
FTX Estate stakes $122M of Solana.
Ferrari to accept crypto as payment.
Australia proposes crypto exchange regulation.
Upbit obtains initial approval for a Singapore crypto license.

NOTEWORTHY READS & MEME

Stacy Muur’s read on intents breakdown.
Decentralised’s read on mapping the data landscape.
Our Network’s read on web3 social.

I’ve gone to war-torn, poverty-stricken countries and talked to the unbanked, the people who don’t know where their next meal is coming from, and they all seem really pumped up about account abstraction and intents-based architectures
— Gwart (@GwartyGwart)
11:53 AM • Oct 13, 2023

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.