ETF news spices up the markets, Coinbase is recruiting a crypto army, and Napster is back in the crypto game. These stories and more, this week in crypto.
News on ETFs Moved Markets
ETF developments had mixed impacts on crypto markets this week. Ether surged in anticipation of Valkyrie’s forthcoming expansion of its Strategy ETF to offer access to ether futures, along with the bitcoin futures it already offered. However, Bitcoin’s price sputtered as spot Bitcoin ETF reviews faced delays amid looming U.S. government shutdown concerns. Nonetheless, Bitcoin ended the month gaining ground, posting its first positive September since 2016.
US Crypto Owners Unite at Capitol Hill
Dozens of crypto executives met with lawmakers on Capitol Hill, as part of a grassroots campaign organized by Coinbase to provide regulatory clarity for the industry. As part of a larger campaign Coinbase aims to mobilize the 52 million American crypto owners to call on their congressmen to support positive crypto legislation – if they want their votes in the 2024 US elections.
Kraken to Offer Stock Trading
Leading U.S. crypto exchange, Kraken, intends to expand its offerings to include stocks and ETF trading. The exchange plans to launch its trading services in the U.S. and United Kingdom in 2024, through a division called Kraken Securities. Licensing from U.S. regulatory authorities and already-held U.K. licenses would facilitate this expansion to compete directly with Robinhood.
3AC Co-founder Arrested
Su Zhu, co-founder of the defunct crypto hedge fund Three Arrows Capital, was arrested in Singapore while leaving the airport. 3AC once managed $10 billion in assets, making it one of the world’s most prominent crypto hedge funds. In 2022 the firm filed for bankruptcy after a crypto crash coupled with high risk investments wiped out its assets, leaving it unable to repay its lenders.
Chase Bank Bans UK Crypto Customers
JPMorgan’s Chase retail bank is blocking UK customers from making crypto transactions due to rising fraud. The bank cited a surge in crypto-related scams as the reason for its decision to prohibit crypto asset purchases with Chase debit cards, or transfers to crypto platforms from Chase accounts. Chase joins Natwest and Santander in restricting access to crypto in the United Kingdom.
MicroStrategy Resumes Buying Bitcoin
The world’s largest corporate bitcoin holder, MicroStrategy has resumed buying Bitcoin, acquiring nearly 5,500 BTC for $150 million. The company’s investment, totaling $4.7 billion, is now worth $4.1 billion. MicroStrategy’s stash of 160,000 Bitcoin with an average price of just below $30,000 per coin is still underwater given Bitcoin’s recent lack of significant upward movement.
US T-Bills Lead to Rise of MKR Price
The MKR token has enjoyed a 45% price surge in just four weeks thanks to MakerDAO’s investments in short-term US Treasury notes, which are now yielding over 5%. MakerDAO is one of the largest crypto lending protocols and issuer of the stablecoin DAI. MakerDAO has now invested more than $2 billion of its stablecoin reserves in US Treasuries.
Napster’s New CEO Has Crypto Plans
Napster’s new CEO Jon Vlassopulos revealed plans to integrate cryptocurrency into the platform’s future, as blockchain network Algorand is among the new owners of the platform. Vlassopulos believes Napster’s strategy will thrive by tapping into the “1000 true fans” theory, suggesting that music enthusiasts would pay more for enhanced access and experiences.
That’s what’s happened this week in crypto, see you next week.