Crypto Biz: SEC picks cash system for BTC ETF, Base gains traction, and more

CGPTPubblicato 2023-12-28Pubblicato ultima volta 2023-12-29

Introduzione

The United States Securities and Exchange Commission has opted for a cash creation and redemption mechanism to address its concerns over market manipulation in the event it approves the launch of a spot Bitcoin (BTC) exchange-traded fund (ETF).
The use of cash creations means new shares of a spot Bitcoin ETF will be only created or redeemed through cash transactions, unlike traditional ETFs based on stocks and commodities, which typically use an in-kind model where market participants handle the underlying assets directly.
Initially proposed by Hashdex — one of the asset managers seeking regulatory approval for the investment vehicle — the mechanism was developed to prevent intraday price manipulation, according to Hashdex’s original filing from August.
At the regulator’s request, other asset managers — including BlackRock, ARK Invest and Grayscale — have incorporated the mechanism in recent weeks.
Some speculators believe the SEC’s next move could target the need for a regulated market of significant size, likely requiring applicants to include the Chicago Mercantile Exchange for physical transactions. However, this may not be the case.
At a recent meeting with applicants, the SEC set a deadline of Dec. 29 for filing final S-1 amendments, warning that applicants who missed the deadline would not be considered for the January batch of potential approvals.
The latest hurdle removed that was in the way of an approval involved the resignation of Digital Currency Group’s Barry Silbert — described in more detail below. This week’s Crypto Biz also explores the Base network’s consistent growth, MicroStrategy’s stock surge, and more.
Grayscale refiles Bitcoin ETF application as Barry Silbert departs
Crypto asset manager Grayscale lodged an amended S-3 filing with the United States securities regulator on the same day Silbert — CEO of parent company Digital Currency Group — announced his resignation from Grayscale’s board of directors. Some crypto market commentators speculate that Silbert’s departure could significantly increase the odds that Grayscale will successfully convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF — an endeavor currently awaiting a decision from the Securities and Exchange Commission.
Barry's resignation was @Sonnenshein's X-Mas gift.

What to make of @bsilbert resigning from Grayscale?

Grayscale has had 9 meetings with the SEC per the table below (h/t @JSeyff)

Today, there are only allegations against DCG which have not been resolved in a court of law.… https://t.co/d7tZFFAOoU pic.twitter.com/NjjdWq0F3a
— Ram Ahluwalia CFA, Lumida (@ramahluwalia) December 26, 2023
Base network sees steady growth, surpasses $735 million in TVL
Coinbase’s Base network is showing consistent growth, although the rate has slowed since its initial surge. On Dec. 24, Base’s total value locked (TVL) reached nearly $735 million, marking a 4% increase over the previous week. Over 6.97 million transactions were completed on the network over the previous 30 days, with a daily speed of 3.45 transactions per second.
Chinese Web3 VC to launch $10 billion accelerator fund: Report
Chinese venture capital firm GBA Capital announced a $10 billion pledge to establish a Web3 fund. According to local news reports, the fund will invest in startups focusing on virtual reality, the metaverse and nonfungible tokens, seeking to transform the Guangdong-Hong Kong-Macao economic area into the world’s “meta-asset capital.” Since the beginning of the year, the region has been experiencing an influx of Web3 startups and overseas relocations. GBA Capital was established by China Europe International Financial Group in Hong Kong.
MicroStrategy’s stock surges 350% in 2023 on back of Bitcoin ETF hype
MicroStrategy has seen its stock price climb over 350% in 2023, primarily due to expectations surrounding the approval of a spot Bitcoin ETF in the United States. The company’s massive exposure to Bitcoin is backing its stock performance. MicroStrategy and its subsidiaries hold 189,150 BTC, representing a combined purchase price of approximately $5.9 billion and an average purchase price of $31,168 per coin. Its exposure to the cryptocurrency is leading some analysts to label its stock as “essentially a leveraged Bitcoin ETF.”

MSTR's performance in 2023. Source: Google Finance.Before you go: Meet the women who kicked ass in crypto in 2023. One of the crypto industry’s core philosophies is decentralization led by the community, regardless of one’s background, and crypto may be a golden ticket for women to hop on the tech train.
Crypto Biz is your weekly pulse on the business behind blockchain and crypto, delivered directly to your inbox every Thursday.

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OSL Group Partners with Circle to Expand Global Market Access Channels for USDC

OSL Group (863.HK) has partnered with Circle Internet Group (NYSE: CRCL) to expand the use of USDC on its trading and payment platform. Through OSL Global, users can now exchange USDC for USD at a 1:1 ratio and trade USDC against BTC, ETH, SOL, USDT, and USD. USDC has also been integrated as a unified margin currency for contracts to improve capital efficiency for both retail and institutional clients. Additionally, OSL’s payment services now support USDC for digital dollar settlements. Subject to regulatory approvals, OSL may also integrate Circle’s USYC, a leading tokenized money market fund. The collaboration aims to enhance stablecoin liquidity, support seamless value exchange, and strengthen digital asset infrastructure in Hong Kong and global markets.

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OSL Group Partners with Circle to Expand Global Market Access Channels for USDC

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Lattice Capital Founder: Crypto VC, Believing is Seeing

In the face of a significant contraction in crypto VC funding, industry observers debate whether this signals a decline in crypto's appeal or a sign of market maturation. While some investors are leaving crypto entirely or diversifying into other high-growth sectors like AI, Lattice Capital co-founder Regan Bozman argues for staying the course. He expresses skepticism about crypto funds successfully pivoting to AI or deep tech, citing intense competition and lack of inherent advantage. Bozman believes the current crypto downturn, with fewer founders and less capital, actually presents a prime investment opportunity for those who are truly committed. He contends that the crypto financial infrastructure is only 5% built, with massive growth potential remaining in areas like non-USD stablecoins and crypto-based financial applications in global markets. The key is to focus on early-stage, specialized opportunities that larger funds may overlook.

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Lattice Capital Founder: Crypto VC, Believing is Seeing

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The Top Bitcoin Predictions From Industry Experts Go As High As $500,000

A compilation of Bitcoin price predictions from industry experts, including banks, hedge fund managers, and venture capitalists, shows a wide range of bullish forecasts, with estimates going as high as $500,000. Bitcoin is currently trading around $78,000, showing signs of recovery. On the lower end, Citigroup projects a base target of $126,000 by end-2026, while other predictions include $148,000 from Pantera Capital, $150,000 from JPMorgan, $180,000 from VanEck, and up to $200,000 from Standard Chartered. More optimistic forecasts see Bitcoin reaching near or above $200,000, with Tom Lee targeting $189,000, Tim Draper at $250,000, Cathie Wood at $275,000, Robert Kiyosaki at $350,000, Anthony Scaramucci at $400,000, and Chamath Palihapitiya and Mike Novogratz projecting $500,000. The broad range of predictions highlights significant market division regarding Bitcoin’s upside this year, though overall sentiment remains bullish. Some major forecasts have already been revised downward, such as Citigroup cutting its 12-month target to $112,000 and Standard Chartered reducing its 2026 year-end target to $150,000, while maintaining a long-term $500,000 view for 2030.

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The Top Bitcoin Predictions From Industry Experts Go As High As $500,000

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North Korean Hackers Loot $500 Million in a Single Month, Becoming the Top Threat to Crypto Security

North Korean hackers, particularly the notorious Lazarus Group and its subgroup TraderTraitor, have stolen over $500 million from cryptocurrency DeFi platforms in less than three weeks, bringing their total theft for the year to over $700 million. Recent major attacks on Drift Protocol and KelpDAO, resulting in losses of approximately $286 million and $290 million respectively, highlight a strategic shift: instead of targeting core smart contracts, attackers are now exploiting vulnerabilities in peripheral infrastructure. For instance, the KelpDAO attack involved compromising downstream RPC infrastructure used by LayerZero's decentralized validation network (DVN), allowing manipulation without breaching core cryptography. This sophisticated approach mirrors advanced corporate cyber-espionage. Additionally, North Korea has systematically infiltrated the global crypto workforce, with an estimated 100 operatives using fake identities to gain employment at blockchain companies, enabling long-term access to sensitive systems and facilitating large-scale thefts. According to Chainalysis, North Korean-linked hackers stole a record $2 billion in 2025, accounting for 60% of all global crypto theft that year. Their total historical crypto theft has reached $6.75 billion. Post-theft, they employ specialized money laundering methods, heavily relying on Chinese OTC brokers and cross-chain mixing services rather than standard decentralized exchanges. Security experts, while acknowledging the increased sophistication, emphasize that many attacks still exploit fundamental weaknesses like poor access controls and centralized operational risks. Strengthening private key management, limiting privileged access, and enhancing coordination among exchanges, analysts, and law enforcement immediately after an attack are critical to improving defense and fund recovery chances. The industry's challenge now extends beyond secure smart contracts to safeguarding operational security at the infrastructure level.

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North Korean Hackers Loot $500 Million in a Single Month, Becoming the Top Threat to Crypto Security

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Circle CEO's Seoul Visit: No Korean Won Stablecoin Issuance, But Met All Major Korean Banks

Circle CEO Jeremy Allaire's recent activities in Seoul indicate a strategic shift for the company, moving away from issuing a Korean won-backed stablecoin and instead focusing on embedding itself as a key infrastructure provider within Korea’s financial and crypto ecosystem. Despite Korea accounting for nearly 30% of global crypto trading volume—with a market characterized by high retail participation and altcoin dominance—Circle has chosen not to compete for the role of stablecoin issuer. Instead, Allaire met with major Korean banks (including Shinhan, KB, and Woori), financial groups, leading exchanges (Upbit, Bithumb, Coinone), and tech firms like Kakao. This approach reflects a broader industry transition: the core of stablecoin competition is shifting from issuance rights to systemic positioning. With Korean regulators still debating whether banks or tech companies should issue stablecoins, Circle is avoiding regulatory uncertainty by strengthening its role as a service and technology partner. The company is deepening integration with trading platforms, building connections, and promoting stablecoin infrastructure. This positions Circle to benefit regardless of which entity eventually issues a won stablecoin. Allaire also noted the potential for a Chinese yuan stablecoin in the next 3–5 years, underscoring a regional trend of stablecoins becoming more regulated and integrated with traditional finance. Ultimately, Circle’s strategy highlights that future influence in the stablecoin market will belong not necessarily to the issuers, but to the foundational infrastructure layers that enable cross-system transactions.

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Circle CEO's Seoul Visit: No Korean Won Stablecoin Issuance, But Met All Major Korean Banks

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