Bitcoin ETF debut, asset tokenization, Ripple’s buyback and more

    The approval  of Bitcoin ETF may pave the way for further derivatives products and strengthen BTC’s position in decentralized finance, but the long-term implications may extend well beyond financial markets.

    Ten years after Cameron and Tyler Winklevoss originally applied to form the Winklevoss Bitcoin Trust in 2013, a spot Bitcoin (BTC

    The exchange-traded fund (ETF) has finally been introduced in the United States. On January 10, the US Securities and Exchange Commission accepted nine ETF applications from numerous prominent asset management organizations.

    Market experts predict an investment inflow of roughly $10 billion into ETFs in 2024. The historic ruling solidifies Bitcoin’s position as a genuine asset and paves the way for a variety of derivative investment products, including future leveraged and short Bitcoin ETFs.

    Aside from that, the ruling may increase Bitcoin’s position in the decentralized finance (DeFi) sphere, notably as a collateral asset, opening up prospects to better connect the crypto business with traditional financial markets.

    However, the consequences of this trend may extend well beyond the financial markets.

    The approval by the US authority marks a watershed point in BTC’s greater use and recognition, marking a transformation that goes beyond the cryptocurrency and its underlying blockchain technology. Moments like this have the potential to restructure our economic system, shift trust views, and open up a new universe of possibilities that had not previously been envisioned.

    As predicted, crypto aficionados have been on a wild ride over the last several days. For those who may have missed something during the Bitcoin ETF mania, this week’s Crypto Biz also looks at Brevan Howard and Hamilton Lane tokenizing assets, Ripple’s repurchase, Core Scientific’s oversubscribed stock offering, and Grayscale’s fund rebalancing.

    Spot Bitcoin ETF trading volume surpasses $1.6 billion within minutes of launch

    Bitcoin spot exchange-traded funds (ETFs) got off to a strong start on January 11, with a total volume of roughly $1.6 billion only minutes after the opening bell. The decision comes after the US Securities and Exchange Commission approved the first Bitcoin ETFs. Grayscale (GBTC), BlackRock (IBIT), Fidelity (FBTC), and Ark (ARKB) were the most popular BTC ETFs at the start of trading.

    Brevan Howard, Hamilton Lane to tokenize assets through Libre protocol

    Brevan Howard and Hamilton Lane will be the first asset managers to tokenize assets using the new Web3 infrastructure provider Libre protocol, which is funded by Brevan Howard’s WebN and Nomura’s Laser Digital. Libre is slated to launch in the first quarter of 2024, providing asset tokenization and smart contracts via the Polygon network, as well as support for collateralized lending and automatic rebalancing of separate managed accounts. Brevan Howard, which specializes in macroeconomic trading methods, will use Libre to tokenize its portfolio of illiquid assets, whilst Hamilton Lane will utilize the protocol for fixed-income products.

    Ripple Labs to buy back $285 million stake in tender offer: Report

    Ripple Labs is to launch a tender offer to acquire back a $285 million interest in the firm from early investors and employees. The corporation intends to invest $500 million during the process. The budget covers the expense of converting restricted stock units into common shares. According to Reuters, investors will only be able to liquidate 6% of their shares. The deal will bring the company’s capitalization to $11.3 billion. Additional buybacks are expected as Ripple seeks to provide an exit for early investors. Ripple’s CEO, Brad Garlinghouse, stated that the business has no intentions to go public in the United States, where it is headquartered, due to the country’s unclear regulatory landscape.

    Grayscale drops MATIC, adds AVAX, XRP in funds rebalance

    Grayscale has rebalanced three of its crypto funds, withdrawing Polygon tokens and adding Avalanche and XRP, as announced on January 5. The updated allocations are part of Grayscale’s quarterly review and will affect its Digital Large Cap Fund (GDLC), DeFi Fund, and Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund). Although MATIC was removed from the GDLC’s new composition, it remains in the GSCPxE Fund basket. Changes to Grayscale’s DeFi Fund include the withdrawal of the Curve DAO (CRV) token from its portfolio.

    Bitcoin miner Core Scientific completes $55 million equity offering

    Core Scientific, a bitcoin miner, has finalized a $55 million equity fundraising round to help it return to solvency. According to the Jan. 8 release, the $55 million equity offering ended the previous week and was oversubscribed. CEO Adam Sullivan indicated that the monies received, together with the complete repayment of their debtor-in-possession loans, will allow the firm to leave Chapter 11 bankruptcy by the end of January. According to the company’s most recent financial declaration dated November 2023, Core Scientific had $2.3 billion in assets and $559 million in liabilities, for a net equity of $1.8 billion. The business also hopes to re-enter the Nasdaq stock exchange after its bankruptcy processes are over.

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