Spot Bitcoin ETFs are approved but start with a hiccup, a stablecoin goes public and Bitcoin flies to the moon, only to get lost in space?! These stories and more, this week in crypto.
Bitcoin makes history
On Wednesday, the American SEC finally approved 11 spot Bitcoin ETFs in a process that began in 2013 when the Winklevoss twins first sought approval. Trading volumes exceeded $4 billion on the New York Stock Exchange, Nasdaq and CBOE on its first trading day. Grayscale's Bitcoin ETF accounted for half of that volume, including $1 billion in the first hour after markets opened. BlackRock's iShares Bitcoin ETF won most of the other half with its $1 billion first day of trading.
A fake tweet shakes the markets
A day before the approvals were announced, a fake tweet resulting from a hack of Account The account was hacked through an associated phone number, and this was possible because the account did not use two-factor authentication. The message was quickly exposed as a fraud, but not before leading to $90 million in Bitcoin liquidations.
Bitcoin plunges as euphoria ends
After the first ETFs began trading in the United States, Bitcoin briefly surpassed $49,000 for the first time since December 2021. The next day, however, the price of Bitcoin fell below $42,000, plunging almost 10%, as euphoria over ETF approvals gave way to a rout of “selling news”.
SEC: We do not support Bitcoin
President of the SEC Gary Gensler said that the ETF approvals were granted reluctantly, emphasizing that the decision does not reflect the commission's approval of Bitcoin itself. Gensler said last year's Grayscale court decision forced the commission's hand, but it did not signal support for Bitcoin or any other crypto asset; a category he still considers speculative and volatile.
USDC issuer files for IPO
Circle, the creator of the USDC stablecoin, filed an IPO application, to list the company on the stock exchange. The IPO is expected to take place once the SEC completes its review process. With a market cap of $25 billion, USDC ranks second in terms of stable value after Tether, which has a market cap of $95 billion.
New Ethereum Improvements Proposed
In an Ask Me Anything session, Ethereum co-founder Vitalik Buterin recommended a modest 33% increase in the gas limit to increase network capacity and reduce user spending. However, the proposal carries some risks, as larger blocks may lead to increased energy consumption, increasing the risk of chain splits and abandoned blocks.
X drops NFT profile photos
Social Media Platform abandoned his NFT profile picture service that allowed subscribers to use Ethereum-based NFTs as profile images. Formerly known as Twitter,
Houston we have a problem
The Peregrine 1 space mission recently took off with a commemorative plaque of the Bitcoin genesis block and a special Bitcoin token engraved with a private key for 1 BTC. The mission? Placing these objects on the surface of the moon, as a symbol that Bitcoin highlights remarkable progress in terms of technological advancement. Unfortunately, it appears there is a problem with the rocket's propulsion system, making it uncertain if Bitcoin will one day reach the Moon without issue.
This is what happened this week in crypto, see you next week.