Kalam Crypto #86: Grayscale's SEC win clears path for Bitcoin ETF approval.
This week, a momentous legal victory for Grayscale vs. the SEC, Bitcoin ETF approval inevitable, a successful test of Chainlink’s CCIP with SWIFT, and MakerDAO's proposal to shift from Ethereum to Solana.
“Your success in life depends on your ability to make good decisions. Your happiness depends on your ability to not care about the outcomes.” Naval Ravikant
Ahlan wa sahlan, and welcome to the 86th edition of CoinMENA's weekly newsletter, Kalam Crypto. This week, a momentous legal victory for Grayscale vs. the SEC, Bitcoin ETF approval inevitable, a successful test of Chainlink’s CCIP with SWIFT, and MakerDAO's proposal to shift from Ethereum to Solana. All that and more, so let's dive into this week's letter, and talk crypto:
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Global News 🌍
Another legal victory for the crypto industry vs. the SEC: A U.S. federal court has ruled that the Securities & Exchange Commission (SEC) must reconsider its rejection of Grayscale Investments' request to turn the Grayscale Bitcoin Trust (GBTC) into an ETF, potentially paving the way for the first spot bitcoin ETF in the U.S. This legal victory for Grayscale, following Ripple's recent favorable ruling, increases the likelihood of the SEC approving multiple ETF applications simultaneously. The court found that the SEC's inconsistent treatment of similar products, approving bitcoin futures ETFs while rejecting Grayscale's proposal, was arbitrary and unlawful due to the lack of a clear explanation from the SEC.
SEC delays decision on Bitcoin ETFs: The SEC announced on Thursday that it will be postponing its decisions on seven proposals for spot bitcoin ETFs. The agency is currently dealing with a surge in applications, leading to extended deadlines for these ETFs. Specifically, the decision deadlines for BlackRock's iShares Bitcoin Trust, Fidelity's Wise Origin Bitcoin Trust, the VanEck Bitcoin Trust, the WisdomTree Bitcoin Trust, and the Invesco Galaxy Bitcoin ETF have been moved to October 17, while the deadline for the Valkyrie Bitcoin Fund has been pushed to October 19. However, several experts consider the approval a matter of when, not if, especially in light of the favorable ruling in the Grayscale case.
Lightning Round ⚡️
Successful SWIFT experiment with Chainlink CCIP: Swift partnered with banks to experiment with Chainlink's Cross-Chain Interoperability Protocol (CCIP). Their findings revealed that by integrating Swift's messaging standards with Chainlink's CCIP, it becomes feasible to create interoperability between traditional banks and blockchain networks. This experiment highlights the potential to connect conventional financial systems with emerging blockchain technologies.
Maker DAO shifting to Solana? Rune Christensen, MakerDAO’s co-founder, suggested a proposal that a forthcoming appchain dedicated to the DeFi lending protocol could be built using the codebase of Solana instead of Ethereum. In response, Ethereum co-founder Vitalik Buterin sold his entire remaining stake of 500 MakerDAO tokens, equivalent to 353 ETH ($580,000)
Keep an eye on 👀
Bitcoin adoption in Argentina outpacing El Salvador: El Salvador made headlines in 2021 by granting Bitcoin legal tender status, but its actual adoption of the cryptocurrency is being outpaced by its neighbor. Argentina is experiencing a rapid increase in Bitcoin adoption driven by economic challenges, including high inflation rates predicted to reach 147% in 2023. Additionally, the rise of pro-Bitcoin presidential candidate Javier Milei has contributed to the cryptocurrency's popularity in Argentina. Milei's success in the summer primaries and potential policy changes have led to a significant increase in Bitcoin's price in the country.
Tweet Of The Week 🐥
Quiz Corner ✅
Last week’s question: Which term describes the process of converting plaintext into unreadable ciphertext to secure communication? Answer: Encryption
This week’s question: This type of scam involves using email, phone, or text to entice individuals into providing sensitive information:
B) Pyramid Scheme
C) Ponzi Scheme
D) Identity Theft
See the answer in next week’s newsletter. Or check out our new learning platform https://university.coinmena.com/