Crypto News Roundup ( 27th November to 1st December 2023)

Crypto News Roundup ( 27th November to 1st December 2023)
Here are the top stories that happened in crypto this week.
  • Football Star Cristiano Ronaldo Faces Legal Action Over Binance Promotion
  • Bitcoin Surges to $38.8K, Marking First Return to May 2022 Levels
  • First U.S. Bitcoin ETF Achieves Record AUM, Surpassing $1.47 Billion
  • Ripple XRP Approaches $1B in Trading Volume as $1 Price Nears
  • SEC Engages with Grayscale and BlackRock on Bitcoin ETFs

Footballer Cristiano Ronaldo

Renowned Portuguese footballer Cristiano Ronaldo, a top earner in the sport, is currently entangled in a lawsuit related to his involvement in promoting and participating in the sale of unregistered securities in collaboration with Binance. The plaintiffs are pursuing damages exceeding $1 billion.

Allegedly, Ronaldo's endorsement of Binance's non-fungible token (NFT) collection misled investors into making loss-generating investments. Ronaldo, with over 840 million followers on social media, actively promoted Binance and encouraged his audience to join his Web3 community, contributing to increased traffic on the crypto exchange.

The plaintiffs argue that Ronaldo's promotions facilitated Binance in soliciting investments in unregistered securities by leveraging his massive fan base. Despite the legal challenges, Ronaldo, now playing in Saudi Arabia, appears to maintain ties with Binance, as evidenced by a post on November 28.

Bitcoin Surges to $38.8K, Marking First Return to May 2022 Levels

Bitcoin next to bar chart with the price trend going up

Bitcoin experienced a notable surge, reaching $38,800 on December 1, 2023, a level not seen since May 2022. This upward movement aligns with a prolonged multi-month uptrend driven by expectations of increased institutional demand.

Over the past 24 hours, Bitcoin recorded a nearly 3% gain, mirroring positive movements in global stock markets. The rise in futures for U.S. indices and European indexes further supported Bitcoin's momentum. The cryptocurrency's strength has also contributed to the overall market capitalisation, surpassing $1.5 trillion, with a $400 billion increase since October.

Bitcoin's resilience has positively impacted large-cap tokens, with notable growth in artificial intelligence, layer one blockchains, and gaming, reflected in the doubling of prices for tokens like Solana's SOL and Avalanche's AVAX over the past two months. Some analysts, however, anticipate muted growth for Bitcoin as December progresses.

First U.S. Bitcoin ETF Achieves Record AUM, Surpassing $1.47 Billion

Bitcoin and a 100 Dollar note

The ProShares Bitcoin Strategy ETF (BITO), the inaugural bitcoin ETF in the United States, has set a new record for assets under management (AUM), reaching nearly $1.5 billion in Bitcoin futures contracts. This milestone underscores institutional interest in gaining exposure to BTC ahead of the anticipated approval of a spot Bitcoin ETF by January.

BITO achieved its previous record of $1.44 billion on November 10, 2021, around three weeks after its launch. The recent record, set on Tuesday, coincided with BTC reaching a new yearly high of $38,300. The fund's robust performance, coupled with rising BTC prices, contributed to significant growth in AUM, reaching $1.42 billion within the first ten days of November.

Globally, Bitcoin investment funds have attracted substantial capital, totalling $32 billion in AUM. While BITO is futures-based, a spot Bitcoin ETF, backed by actual BTC, is expected to invite institutional capital into BTC.

Ripple XRP Approaches $1B in Trading Volume as $1 Price Nears

Image by <a href="">Miloslav Hamřík</a> from <a href="">Pixabay</a>

Ripple (XRP) is inching closer to the $1 billion trading volume mark, signalling continued interest and potential for the asset to rally towards the $1 price level. Despite marginal declines in recent days, positive sentiment, coupled with progress in the SEC lawsuit, suggests a potential upward trajectory for XRP.

Currently trading at $0.604, down 0.93% in the last 24 hours, XRP has maintained a remarkable 77% gain for the year. Analysis indicates a nuanced outlook, with technical indicators suggesting a potential descent before a recovery. However, ongoing developments, such as a potential settlement in the SEC lawsuit, could significantly influence XRP's direction.

SEC Engages with Grayscale and BlackRock on Bitcoin ETFs

A gavel next to bitcoin and other cryptos

The U.S. Securities and Exchange Commission (SEC) recently held meetings with Grayscale and BlackRock to discuss their applications for spot Bitcoin exchange-traded funds (ETFs).

A memorandum reveals that the SEC met with Grayscale Investments on Nov. 29 to consider the proposed conversion of Grayscale's Bitcoin Trust into a spot Bitcoin ETF. Discussions centred on NYSE Arca's proposed rule change to list and trade shares of the Grayscale Bitcoin Trust.

In a separate meeting on Nov. 28, the SEC engaged with BlackRock and the Nasdaq regarding BlackRock's revised Bitcoin ETF model. BlackRock's proposed "In-Kind" redemption model aims to closely link the share price with Bitcoin's value but has raised concerns. The SEC suggested a "Cash" model, emphasising safety for broker-dealers but complicating the fund's operation.

Recent developments suggest growing expectations for the approval of a spot Bitcoin ETF in the coming months, potentially bringing institutional capital into BTC.

Disclaimer:  The information provided in this crypto news round-up is for informational purposes only and should not be considered financial or investment advice. Obiex will not be held liable for your investment decisions.