Welcome to the Genfinity Weekly News Recap! As you navigate through your busy work week staying informed about the latest developments in the realm of Web3 and finance can be a challenge. However, we are here to provide you with an overview of the crypto news you might have overlooked this week.
Genfinity Weekly News Recap
Bitcoin
It was only last week that Bitcoin reached $73,000, surpassing its previous 2021 peak, driven primarily by the launch of BTC ETFs and speculation surrounding the impending Bitcoin halving. However, maintaining this level has proven difficult.
Essentially, analysts estimated that the selling of holdings by significant Bitcoin owners, which increases supply, could eventually lead to greater institutional adoption, potentially initiating a self-reinforcing cycle of price fluctuations and ultimately determining Bitcoin’s genuine worth. You can read our Genfinity article for in-depth details regarding Bitcoin’s price discovery.
On another positive note, Cointelegraph reported that some analysts believe the current sideways trading around $66,000 is a healthy sign that allows for more investors to participate before a potential breakout. Others argue that a price dip, even below recent levels, would be beneficial for the long-term sustainability of the bull market. On-chain data suggests there was some panic selling on March 20th, but the data highlights that larger investors are still accumulating Bitcoin.
Blackrock
Tokenized asset fund
CoinDesk reported that BlackRock (BLK), a prominent investment management firm, has introduced a tokenized asset fund, as disclosed in a filing submitted to the U.S. Securities and Exchange Commission. Known as the BlackRock USD Institutional Digital Liquidity Fund, this initiative is established in collaboration with tokenization company Securitize and operates from the British Virgin Islands. The fund’s initial capital of $100 million, denominated in Circle’s USDC stablecoin, was recorded on the Ethereum blockchain.
This development comes on the heels of BlackRock’s recent venture into digital asset funds, including the launch of a Bitcoin exchange-traded fund (ETF) in January, which has accrued over $15 billion in assets under management.
The establishment of the BlackRock USD Institutional Digital Liquidity Fund marks a significant milestone in the tokenization of real-world assets (RWA), an emerging sector that blends digital assets with traditional finance. This approach aims to leverage blockchain technology for quicker settlements and improved efficiency.
Coinbase – Blackrock + Securitize infrastructure provider
In a major development for the crypto ecosystem, Coinbase was chosen as the infrastructure provider for BlackRock and Securitize’s new tokenized investment fund. This follows the success of BlackRock’s Bitcoin ETF, which attracted significant assets and highlighted growing institutional interest in cryptocurrency. Coinbase’s selection validates its capabilities as a leading crypto platform. Its Coinbase Prime service offers a suite of tools for institutional investors, including trading, custody, and reporting. This partnership allows BlackRock to leverage Coinbase Prime’s integration with its Aladdin platform, enabling seamless management of both traditional and digital assets.
Coinbase Prime provides institutional investors with a secure and compliant gateway to digital assets. This not only facilitates the growth of tokenized investment funds but also shapes the future of institutional investing. This collaboration signifies a deeper integration of crypto into traditional finance.
Memecoins & NFTs
BlackRock appears to be venturing into the world of memecoins and NFTs. Onchain data suggests a BlackRock-linked wallet has received at least $40,000 worth of these digital assets since mid-March. Investigated by Cointelegraph, this follows BlackRock’s filing for a new tokenized fund and hints at their broader interest in cryptocurrency beyond just Bitcoin. The firm’s CEO, Larry Fink, has also expressed his belief in the future of tokenized financial assets. BlackRock’s digital asset fund, “BUIDL,” will allow institutional investors to earn yields on their USD Coin holdings.
Ethereum
The Ethereum Foundation, a non-profit organization tied to Ethereum’s network, is under scrutiny by an undisclosed governmental authority, as indicated in its GitHub repository. Reported by CoinDesk this week, this inquiry coincides with a pivotal moment for Ethereum’s technology — there is growing interest from American investment firms in offering an ETH exchange-traded fund (ETF). Despite recent approvals of Bitcoin ETFs, the SEC has been slow in greenlighting Ethereum ETFs.
Notably, Fortune has reported that the SEC is considering classifying ETH as a security, a move with significant implications not only for Ethereum but also for the prospects of an Ethereum ETF and the broader cryptocurrency market. The SEC has issued investigative subpoenas to U.S. companies in recent weeks, hinting at the scope and focus of the inquiry.
The Ethereum Foundation acknowledged the voluntary inquiry from the state authority, emphasizing the need for confidentiality. Notably, the Foundation had previously pledged to disclose any government inquiries outside of routine business operations but removed this assurance from its website along with its warrant canary, an indication some companies use to notify the public about government subpoenas or inquiries.
It was speculated that the timing of the SEC’s actions may be linked to a May 23 deadline, prompting speculation about their true intentions. Following the news, Ethereum experienced a decline to $3,200, while Bitcoin fell to approximately $62,000, disappointing from its earlier recovery to $64,000.
Ethereum ETF delay
The SEC has extended the decision timeline for VanEck’s application for a spot Ether ETF listed on the Cboe BZX Exchange, with a final decision due by May 23. Cointelegraph reported that this move allows the SEC more time to deliberate on the proposed rule change. The decision follows similar delays for Ether ETF applications from Hashdex and ARK 21Shares, raising questions about the future of ETH ETF approvals amidst reported investigations into ties between firms and the Ethereum Foundation, potentially impacting the classification of Ethereum as a security.
The SEC’s decision to delay VanEck’s application comes after it began approving investment products linked to Ether futures in October 2023, suggesting a growing acceptance of Ether as a commodity.
Regulation
Genesis Global
Genesis Global Capital, a bankrupt crypto lender, has reached a final agreement with the U.S. Securities and Exchange Commission to pay $21 million to settle charges related to securities law violations linked to the now-defunct Gemini Earn program. Summarized by CoinDesk, the settlement follows a recent decision by a New York judge to allow the SEC case against Genesis and crypto exchange Gemini to proceed, despite their attempts to halt it.
Genesis, along with two affiliates, had filed for bankruptcy shortly after facing SEC charges. The agreement, disclosed in court documents in February 2024, has now been concluded, but the SEC will only receive its share of the penalty after other claims are settled in bankruptcy court.
Web3 Technology
CoinLedger, a cryptocurrency tax reporting software platform, has partnered with MetaMask, a Web3 self-custody wallet provider, to enhance interoperability and functionality for MetaMask users. Through this collaboration, users can easily import their transaction history into CoinLedger’s software with a single click, simplifying the tax reporting process. Reported by Cointelegraph, this partnership enables users to sync their portfolio and generate tax forms seamlessly. This partnership addresses the growing complexity faced by digital asset owners and traders, particularly with the approaching tax reporting deadline of April 15.
Interest rates
Reuters covered Federal Reserve Chair Jerome Powell’s statements after his policy meeting this week. Powell emphasized that despite recent high inflation readings, the core narrative of gradually easing price pressures in the U.S. remains unchanged. However, Powell admitted that these readings haven’t boosted the central bank’s confidence in winning the battle against inflation. The decision to reduce rates will hinge on the Fed gaining more certainty that inflation can continue its downward trajectory towards the 2% target amid a resilient economy.
While the Fed kept rates unchanged and maintained the outlook for three rate cuts this year, it upgraded its projections for economic growth and predicted a slightly slower pace of inflation. The decision reflects officials’ cautious approach to rate cuts amid ongoing economic strength and job market growth. Despite the median policymaker anticipating rate cuts in 2025 and 2026, the Fed remains vigilant for further signs of inflation moderation before initiating any rate adjustments.
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