Coin360 Daily Dispatch | Crypto Market Updates & Highlights | January 8, 2024

Anticipation Peaks as Bitcoin ETF Nears Approval

The Bitcoin market is buzzing with anticipation over potential SEC approval of spot Bitcoin ETFs, driving competitive fee structures among major firms like BlackRock and VanEck. Bitcoin's price surged to $45,210, fueled by ETF hype and bullish technical indicators like the MACD. 

However, Matrixport predicts a potential 7% price drop in the next two weeks, citing bearish signals amidst this optimism. The market is poised at a critical juncture, balancing excitement over ETFs with caution over possible volatility. Meanwhile, altcoins market remains subdued ahead of the anticipated Spot Bitcoin ETF announcement.

Spot Bitcoin ETF: A Moment of Truth

Spot Bitcoin ETFs are nearing a pivotal moment, with asset managers finalizing Form S-1 amendments, hinting at imminent SEC approvals. Bloomberg analysts see over 90% approval odds, contrasting with Polymarket's 85%. 

Crypto advocate Scott Melker forecasts a $570 billion inflow post-approval, though some view this as exaggerated. The SEC cautions against hasty excitement over ETFs, emphasizing risk awareness. Former SEC Chair Jay Clayton believes ETF approval is inevitable, despite current SEC skepticism towards crypto.

Major Firms Amp Up Bitcoin Investments Ahead of Trading

According to its filing with the SEC, VanEck has purchased $72.5 million worth of bitcoin with 1,640 bitcoin now valued at $73.8 million. Bitwise plans to potentially seed with $200 million, and Pantera Capital Management LP has shown interest in purchasing up to $200 million of shares. Fidelity increased its seed amount to $20 million, and BlackRock has more than $2 billion lined up for trading. Trading to commence soon.  

Crypto Investment Products Attract $151M in Inflows

In the first week of 2024, crypto investment products garnered $151 million in inflows, primarily from the U.S. Bitcoin funds led with $133 million amid optimism for a spot Bitcoin ETF in the U.S. Ether products also saw positive sentiment, with $29 million in inflows. Other altcoin-based funds experienced mixed fortunes.  

Solana's Ecosystem Sees Mixed Fortunes

In December, Solana's ecosystem surged, propelling meme coins like BONK and Dogwifhat to over 1,000% gains. However, their prices have since plummeted by over 70% and 80% respectively. Despite this, Solana's on-chain activity soared, surpassing Ethereum in trading volumes and fees. The frenzy has waned, with profit-taking and capital shift to other blockchains observed.  

Upbit Gains Key License in Singapore's Crypto Market

Upbit has secured a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), enabling regulated digital payment token (DPT) services. This positions Upbit to expand offerings in Singapore, aligned with the country's Payment Services Act (PSA) of 2019. Singapore's clear regulatory structure has established it as a leading global crypto hub.  

Bit24.cash Denies KYC Data Exposure Claims

Bit24.cash, an Iranian crypto exchange, refutes claims of exposing user KYC data due to a storage flaw. Cybernews had reported the leak, but Bit24 denies the vulnerability and asserts the security of its storage system. Data breaches are common in the crypto sector due to the gathering of personal data for KYC protocols.  

CoinsPaid Hit by Second Major Crypto Breach

CoinsPaid, a crypto payment gateway, experienced its second breach, with over $7.5 million stolen through unauthorized transactions. Cyvers detected irregular activities, including the withdrawal of digital assets and CPD tokens, implicating multiple cryptocurrencies and external accounts. The company previously suffered a $37 million breach attributed to the North Korean state-backed Lazarus Group.  

Grayscale Revamps Crypto Funds Amid ETF Hopes

Grayscale recently restructured three crypto funds, adjusting asset weights and composition. Notable changes include Bitcoin now at 69.15% in the Digital Large Cap Fund, CRV removal from the DeFi Fund, and updated allocation in the GSCPxE Fund. Grayscale pursues a Bitcoin ETF approval, with a decision expected from the SEC on January 10.  

Lazarus Group Moves $1.2M Bitcoin, Raises Alarms

The North Korean hacker group Lazarus, linked to $3 billion in crypto hacks, moved $1.2M of bitcoin through a mixer. They possess $79M in wallets, including $73M in BTC and $3.4M in ETH. Recent attacks, like the $81M Orbit incident, resemble their modus operandi. Last year, North Korean hackers were involved in a third of all crypto thefts, totaling $600M.  

Top Altcoin Gainers and Losers

Gainers:

Internet Computer ICP (+12.58%)

Stacks STX (+12.37%)

Injective INJ (+11.17%)

Losers:

STEPN GMT (-10.45%)

Celestia TIA (-10.29%)

FTX Token FTT (-7.81%)