Coin360 Daily Dispatch | Crypto Market Updates & Highlights | November 30, 2023

MicroStrategy Boosts Bitcoin Holdings by 10%

In November, MicroStrategy increased its bitcoin holdings by 10%, purchasing 16,130 BTC for around $608 million. The firm now holds 174,530 BTC at an average price of about $30,252 per coin. Additionally, MicroStrategy plans to raise up to $750 million in a sale of class A common stock.  

Competition Heats Up in U.S. Bitcoin ETF Market

Swiss asset manager Pando Asset has joined the U.S. spot Bitcoin ETF race with its Pando Asset Spot Bitcoin Trust, becoming the 13th applicant. BlackRock, meanwhile, revised its ETF model to address SEC concerns, proposing a cash pre-payment system to U.S. broker-dealers. 

Grayscale is updating its Grayscale Bitcoin Trust agreement, aiming for smoother share creation and redemptions, and operational efficiencies in anticipation of converting to a spot Bitcoin ETF. 

ProShares' Bitcoin Strategy ETF (BITO) reached $1.47 billion in assets, indicating strong institutional demand and closely tracking Bitcoin's spot prices, highlighting the growing interest and competition in the Bitcoin ETF space.

Ark Invest Adjusts Holdings in Coinbase, Robinhood, and SoFi

Ark Invest sold $5 million in Coinbase shares and bought $2 million in Robinhood as the fintech app starts UK stock trading. Meanwhile, they purchased $1.5 million in SoFi shares as SoFi exits crypto. 

Ark's moves align with Robinhood's UK expansion and SoFi's crypto service termination. Coinbase's stock is up 20% this week, while Robinhood's is up 11%. SoFi's stock fluctuated, peaking at $11.45 in July before falling below $7.

FTX Gains Approval to Sell Trust Assets Post-Bankruptcy

FTX, post-bankruptcy, gained court approval to sell trust assets, including Grayscale and Bitwise shares worth around $873 million. Galaxy's role expanded to aid in sales. FTX's trust holdings may now be valued at $873 million due to a narrowed GBTC discount and crypto price rally. FTX disputes the IRS's $24 billion claim, seeking court intervention for its dismissal to accelerate asset distribution.  

Binance Faces Legal Challenges and Discontinues BUSD

Binance grapples with legal issues in the Philippines and a lawsuit involving Cristiano Ronaldo, while discontinuing its BUSD stablecoin. Despite a DOJ settlement, it remains a crypto market leader. Binance also introduces a pilot program for off-exchange collateral storage, aiming to reduce counterparty risk for institutions. 

Celsius Begins Withdrawals Amid Bankruptcy Proceedings

Celsius, a bankrupt cryptocurrency lending platform, has begun withdrawals for eligible customers, allowing them to access 72.5% of their cryptocurrency holdings minus fees. The company faced legal obstacles, bankruptcy proceedings, and regulatory challenges, including lawsuits from the SEC, FTC, and CFTC, with settlements and a proposed restructuring plan in progress.  

Trust Wallet's Bitcoin Node Issue Causes Transaction Delays

Trust Wallet experienced a Bitcoin node issue, resulting in failed or delayed transactions and missing transaction history. The surge in Bitcoin transactions, reaching over 600,000 in the past week, is attributed to the problem. The increase in transactions has led to a spike in average transaction fees to around $14.  

DraftKings and Polygon's Controversial Staking Deal

DraftKings reportedly received millions of MATIC tokens from Polygon in a special staking deal, then charged a 100% commission on delegated tokens. The validator underperformed and was removed from the network after earning substantial rewards. Polygon's undisclosed allocation and special treatment of DraftKings have raised questions about the integrity of the arrangement.  

Bitcoin's November Surge Tied to Federal Reserve Expectations

In November, Bitcoin is expected to experience its best month since 2020, nearly gaining 10% in value. This surge is linked to expectations of a Federal Reserve rate pause. ProShares’ Bitcoin Strategy ETF (BITO) saw record-high assets, reflecting strong institutional interest. 

An anonymous buyer amassed $424 million in Bitcoin, becoming a significant holder. Meanwhile, Bitcoin long futures held by asset managers on CME reached an all-time high, indicating bullish sentiment, despite hedge funds maintaining a net short position.

SEC Reviews Fidelity's Ethereum ETF Amid Market Shifts

The SEC is reviewing Fidelity's proposal for an Ethereum ETF, aiming to track the Fidelity Ethereum Index. Ethereum's market faces a critical juncture with whales selling 3,150 ETH for $6.37 million, generating profit from an initial purchase of 2,762 ETH at $1,825 each. Meanwhile, a notable whale has accumulated 31,149 ETH (over $54 million) in Ethereum since September, indicating significant interest in the asset. 

Concurrently, Ethereum's network is experiencing an exodus of validators, likely due to the recent increase in Ether's value, leading to a decrease in ETH issuance and a shift in the staking pool dynamics.

Cardano's Price Surge Leads to Holder Losses

Cardano's recent price surge has left over half of its holders in unrealized losses, with only 35.71% in profit. The critical resistance point at $0.38 and low trading volumes indicate a faltering uptrend. However, experts suggest minimal resistance, citing significant accumulation around the $0.37-$0.38 range by 166,470 wallets.  

KyberSwap Hit by $54.7 Million Hack

KyberSwap suffered a $54.7 million attack. The hacker demands executive control, ownership of KyberDAO, and all assets. They promise to revamp the project, benefitting token holders and employees. The deadline for compliance is December 10th, with direct contact available via Telegram. No official response has been made. 

AntPool to Refund $3 Million in Excessive BTC Transaction Fee

AntPool will refund 83 BTC, valued at over $3 million, to a user who mistakenly paid an exorbitant transaction fee. The mining pool detected the issue and froze the fee, urging the fund owner to verify their identity before Dec. 10. A claimant has emerged and provided evidence of ownership.  

Hong Kong Proposes ICO Mechanism and Islamic Banking

The Hong Kong Securities and Futures Professional Association proposed measures, including an ICO mechanism and Islamic Banking to bolster the economy. However, the specifics of the ICO suggestion were not detailed. The dwindling trend of ICOs in 2020 due to regulatory pressure and the entry of institutional investors into the crypto market was mentioned. Hong Kong is in the process of establishing crypto regulations.  

Brazil Approves 15% Tax on Foreign Crypto Earnings

The Brazilian Senate has approved a 15% tax on crypto earnings from foreign exchanges, effective from 2024. This reflects a global trend towards crypto regulation. Brazil aims to generate $4 billion in revenue, while Thailand also plans to tax foreign crypto trading income as part of its economic stimulus measures.  

Top Altcoin Gainers and Losers

Gainers:

FTX Token FTT (+9.62%)

Injective INJ (+9.40%)

Theta Network THETA (+8.34%)

Losers:

Sei SEI (-8.53%)

Stacks STX (-8.11%)

IOTA MIOTA (-5.32%)