The year 2023, with intense agendas for Bitcoin and cryptocurrencies, is coming to an end: What will happen in the first week of 2024?
What Developments Stand Out in the Last Week of 2023?
As 2023 comes to an end, expectations in the Bitcoin market remain positive. Bitcoin price has gained more than 150% this year, rising above the $40,000 level. At the beginning of this year, BTC was trading at $16,500. Bitcoin's institutional interest throughout the year helped revitalize the market. Before taking a look at the developments in the first week of 2024, let's take a look at what has happened in the last week...
MicroStrategy Purchased 14,620 Bitcoins for $615.7 Million
MicroStrategy once again purchased 14,620 Bitcoins, making a total cash payment of $615.7 million. The average price per Bitcoin was $42,110. As of December 26, 2023, MicroStrategy's total Bitcoin holdings reached 189,150 BTC. This asset was acquired at a cost of approximately $5.9 billion and an average price of $31,168 per Bitcoin.
Hong Kong Securities and Futures Commission: Ready for Applications for Approval of Virtual Asset Spot ETFs
The Hong Kong Securities and Futures Commission has issued a statement saying it is ready to consider applications for funds containing virtual assets. In this context, applications including exchange traded funds (ETFs) based on virtual asset spot trading will be accepted. Additionally, the Commission supports funds investing directly in virtual asset tokens, which are permitted for retail trading on eligible exchanges in Hong Kong, and allows virtual asset futures trading on traditional, regulated futures exchanges.
Brian Roberts, Head of Securities Product Development at the Hong Kong Securities and Futures Exchange (HKEX), stated that HKEX is ready to seize the opportunities presented by thematic investments. He stated that they will cooperate closely with issuers and stakeholders to smoothly introduce new products to the Hong Kong ETF market. He welcomed the regulatory announcement by the Hong Kong Securities and Futures Commission, emphasizing that Hong Kong has strengthened as the first market in Asia to allow the listing of virtual asset spot trading ETFs, strengthening its position as a leading digital asset hub in the region.
Grayscale Submits Revised S-3 Document; Hashdex Discusses Progress With SEC Regarding Bitcoin ETFs
Grayscale has filed another revised S-3 document that aims to convert its GBTC into a physically backed Bitcoin ETF. Grayscale has currently compromised and meets the SEC's cash-only origination/refund requirement. Additionally, Hashdex has once again entered into discussions with the SEC regarding an ETF. Unlike previous routine meetings with the "Trading and Markets" or "Corporate Finance" divisions, this meeting took place directly in SEC Chairman Gensler's office.
ARK Liquidates All GBTC Assets, Invests Approximately $100 Million in BITO
ARK liquidated its entire #GBTC position, which was the largest holding in #ARKW just a month ago. ARK purchased $#BITO with about half of the fund, likely as a liquidity transition tool. #BITO is a Bitcoin futures ETF launched by ProShares in October 2021. Speaking on BBTV about the sale of GBTC assets, Cathie Wood stated that "GBTC faces uncertainties regarding taxation and regulation and they do not know who will get approval." He also said, "We know we meet the standards, but we are uncertain about the status of others. Moreover, the discount has narrowed significantly, which gives us a double advantage."
Vitalik Evaluates Ethereum's Vision: Building a Free and Open Social Economic System
Vitalik shared his deeper vision of cryptocurrency in a blog post, stating that cryptocurrency is not just about creating isolated tools and games, but about building a freer and more open society and economy. Uncontrolled centralization and excessive financialization should not be the essence of cryptocurrency. At least some of the Ethereum ecosystem has been home to passionate advocates, many who initially entered with the goal of accumulating wealth, but who later became familiar with the ecosystem and turned to efforts to build a more open and decentralized world. The Ethereum social layer advocates a compromise specific to incentive mechanisms, with an emphasis on reward mechanisms, without being captive to them.
Binance Publishes 2023 Year-End Report
#Binance published its 2023 year-end report and announced that it gained over 40 million new users and recorded annual growth of almost 30%. By the end of 2023, Binance has 170 million registered users and offers trading for 431 assets across 1,785 trading pairs. The P2P platform currently supports 970 payment methods and 112 fiat currencies, and transaction volume has increased by 18% annually. Approximately $213 million was spent on compliance and security measures. Binance holds licenses, registrations and authorizations in 18 jurisdictions globally.
This year, Binance's investments are mainly focused on innovations in zero-knowledge proof cryptography, Web3 gaming, and DeFi. More than 2,000 applications were made to participate in the 2023 incubation and acceleration program and 36 companies received support.
Tether CEO: 4 Billion Dollars of Excess Reserves Achieved in 2023, Plans to Introduce New Products in 2024
Tether CEO Paolo Ardoino tweeted that currently Tether has reached a market cap of $91 billion, adding about $4 billion in excess reserves in 2023. Tether has invested in various projects in the Bitcoin mining sector, such as Holpunch, Synonym, Northern Data and Tether Energy. The company will continue to strengthen its existing services while planning to introduce new products in 2024.
Trump Team Sells 1,075 ETH for $2.4 Million
Arkham states that former US President Trump's team sold ETH. After accumulating Trump NFT release royalties for several months, three weeks ago the team began sending ETH to Coinbase, reaching a peak balance of $4 million. According to the deposits, the Trump team has sold 1,075 ETH so far for a total of $2.4 million.
Mt. Gox Claims, Japanese Yen Is Being Refunded to Creditors
Mt. Gox creditors are reporting on Reddit that they have begun receiving compensation from the long-closed Bitcoin exchange platform. A few posts, Mt. Gox has started sending refunds to users in Japanese yen via PayPal. Mt. Gox's civil rehabilitator stated that a system error mistakenly made duplicate transfers to some creditors. The officer reminded creditors of their legal obligation to check their PayPal accounts, verify the amounts transferred in error, and return them, emphasizing that they have no right to keep the funds from the second transfer.
What Will Happen Next Week?
As 2024 begins, a busy agenda awaits the Bitcoin market: spot Bitcoin ETFs. An approval is expected by the SEC in the first week. According to reports, the SEC is expected to announce its decision on spot Bitcoin ETFs on January 2 - 3. The SEC had requested that spot Bitcoin ETF applications be updated before December 29, 2023.
However, within the expectations, even if the SEC does not announce a decision on January 2 - 3, it will have to announce a decision by January 10. The reason for this is this: The last decision day of ARK Invest's spot Bitcoin ETF will be January 10, 2024.
Apart from this news, the US Federal Reserve will publish the FOMC meeting minutes on Wednesday. This development may create volatility on the Bitcoin market.