Crypto Daily Roundup, 16 Oct: BTC hits $28K amid ETF approval optimism

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Crypto News Key Highlights:

Bitcoin whales have been steadily accumulating more BTC, while Ethereum whales have been selling their holdings. Ethereum whales may have transferred ETH into smart contracts, aligning with Ethereum 2.0's staking protocol, showcasing differing strategies among large crypto holders. Ethereum remains a dominant leader in smart contracts.

FTX estate recently staked 5.5 million SOL tokens, worth $122 million, allaying concerns of a massive sell-off. The exchange delegated these tokens to the Figment staking service on the Solana network. This move signals FTX's commitment to holding its significant SOL investments despite its bankruptcy status and retains a crucial role in the Solana ecosystem.

Bloomberg analysts James Seyffart and Eric Balchunas anticipate a 90% chance of the US SEC approving a Spot Bitcoin ETF by Ark Invest's January 10 deadline. Recent changes to the ETF's prospectus suggest possible approval. The SEC's decision not to appeal the Grayscale case further bolsters these ETF applications.

The trial against FTX co-founder Sam Bankman-Fried took a twist as BlockFi's CEO, Zac Prince, testified about the company's $1 billion exposure to Alameda and FTX. Prince's testimony diverged from the government's account, painting BlockFi as a victim rather than a participant in alleged schemes. The trial unravels the complexities of the case.

Australia's Treasury plans to introduce a comprehensive licensing system for cryptocurrency exchanges, aiming to enhance consumer protection and align with global standards. Exchanges must obtain an AFSL from ASIC, focusing on safeguarding customer interests. Draft legislation is expected by 2024, with a 12-month transition period for compliance. Public feedback is sought for well-informed regulations. Additionally, Australia is exploring central bank digital currency research. These measures demonstrate a commitment to balanced crypto regulation while fostering innovation.

Australian crypto exchanges have largely praised the Treasury's plan to regulate them under existing financial services licensing measures. The proposal seeks to provide regulatory certainty, promote innovation, and enhance consumer protection. While some express concerns about fitting the crypto industry into traditional financial regulation, most consider it a positive step for Australia's crypto sector.

Grayscale Bitcoin Trust (GBTC) is trading at a 15.87% discount to Bitcoin's net asset value (NAV) as of October 13, the lowest in nearly two years. This narrowing discount is attributed to the potential approval of spot Bitcoin exchange-traded funds (ETFs) in the United States, with analysts anticipating further reductions in the discount as ETF approval approaches.

Ayman Alsayari, the governor of the Saudi Central Bank, urged the International Monetary Fund (IMF) to regulate cryptocurrencies for better supervision and coordination. The G20 Roadmap, endorsed by the G20 Finance Ministers, seeks enhanced regulation of crypto assets to address potential financial stability risks. The IMF advocates reforms in the crypto space to foster global economic stability amidst economic uncertainties. Governments are reevaluating cryptocurrency regulation using the IMF-FSB guidelines, aiming to create a more regulated crypto space that aligns with traditional financial bodies' understanding and control.

Crypto Fest 2023, set for November 24 at Cape Town's Cabo Beach Club, is a highly anticipated event in the blockchain and crypto industry. This year's theme, 'Cryptopia,' marks the 5th annual edition, offering networking, educational workshops, global speakers, a Metaverse Gaming Zone, NFT Gallery, and an after-party, all celebrating the potential of blockchain and crypto technologies, especially in Africa. The event is a must-attend for industry enthusiasts and thought leaders.

Also read - 24 Crypto Update, 15 Oct: Crypto market has shown a slight recovery