Weekly Crypto Digest: Breaking Down the Latest in Bitcoin, Ethereum, and the Blockchain World
Nasdaq Pushes for In-Kind Redemptions in BlackRock’s Bitcoin ETF
Nasdaq has taken significant steps to advance the adoption of Bitcoin ETFs by proposing a rule change to allow in-kind creation and redemption for BlackRock’s spot Bitcoin ETF. This move would enable “Authorized Participants” to settle in Bitcoin rather than cash, simplifying the management of fund shares. This adjustment aligns with Bloomberg ETF analyst James Seyffart’s view that BlackRock should have had this capability from the start. Alongside this filing, six new crypto ETF applications have been submitted, signaling growing momentum in the institutional crypto investment space.
MicroStrategy Faces Potential Tax Obligations on $19B Bitcoin Gains
Despite holding rather than selling Bitcoin, MicroStrategy, led by Michael Saylor, may owe taxes on its unrealized gains. Under the Inflation Reduction Act of 2022, corporations face a 15% minimum tax rate based on adjusted earnings. This could compel the company to pay taxes on its $19 billion Bitcoin portfolio, acquired through years of strategic accumulation. While an exemption might emerge under the new administration, the situation underscores the evolving complexities of crypto taxation.
President Trump Pardons Ross Ulbricht in Full
Silk Road founder Ross Ulbricht publicly thanked President Trump for granting him a full pardon after serving over 11 years of a life sentence without parole. His release has reignited debates around justice, crypto’s association with the dark web, and the impact of Silk Road on the broader digital asset ecosystem. Ulbricht expressed profound gratitude, calling the pardon an “amazing blessing” and a turning point for him and his family.
SEC Rescinds Controversial SAB 121 Crypto Accounting Rule
The US Securities and Exchange Commission has officially rescinded the controversial SAB 121 rule, which required financial firms holding crypto for clients to list those assets as liabilities. The crypto industry criticized this measure for creating unnecessary administrative hurdles. SEC Commissioner Hester Peirce celebrated the decision, noting that SAB 121 was far from favorable for the industry. This move could make holding and managing crypto assets significantly more straightforward for financial firms.
Elon Musk Targeted by Senator Elizabeth Warren Over Tax Proposals
Senator Elizabeth Warren has urged Elon Musk, Chair of the Department of Government Efficiency (DOGE), to support tax reforms aimed at the wealthy. Her proposals include funding the IRS more robustly, closing tax loopholes, and implementing a capital gains tax on estates. Musk’s leadership of DOGE has drawn scrutiny for potential conflicts of interest. The letter signifies ongoing debates about wealth redistribution and cryptocurrency’s role in the financial ecosystem.
Market Highlights: Winners and Losers of the Week
At the close of the week:
- Bitcoin (BTC): $104,900
- Ethereum (ETH): $3,322
- XRP: $3.10
The total market capitalization reached $3.60 trillion.
Top Gainers:
- Official Trump (TRUMP): +372.53%
- Raydium (RAY): +32.13%
- GateToken (GT): +24.35%
Top Losers:
- Sonic (prev. FTM) (S): -31.97%
- ai16z (AI16Z): -30.77%
- dogwifhat (WIF): -30.68%
Bitcoin’s Path to $150,000: A Speculative Outlook
Bitcoin’s price dynamics are mirroring the 2016-2017 cycle, with Glassnode’s James Check predicting a peak of $120,000 to $150,000. He termed this range the “topping cloud,” indicating that prices above this threshold would likely be short-lived. With Bitcoin currently trading at $103,019, both short- and long-term holders are in profit. However, Check warns that speculative fever beyond $150,000 could result in a sharp pullback.
FUD and Controversies
John McAfee’s Widow Launches Suspected Scam Token
Janice McAfee introduced a memecoin in honor of her late husband, sparking mixed reactions. Although initial enthusiasm was evident, on-chain analysis revealed questionable token allocations, casting doubts on its legitimacy.
Rising Crypto Donations to Extremist Groups in Europe
A Chainalysis report highlighted an increase in crypto donations to extremist groups in Europe, even as global donations have dipped. This trend raises concerns about regulatory gaps and the misuse of digital assets.
Ledger Co-founder Rescued After Kidnapping
David Balland, co-founder of Ledger, was freed after a traumatic kidnapping incident in France. The case involved a ransom demand in cryptocurrency, spotlighting the darker side of digital finance.
Expert Quotes of the Week
- “Governments should hold Bitcoin—it’s the new gold standard.”
Coinbase CEO Brian Armstrong - “Bitcoin provides a global solution if you are concerned about political or economic stability.”
- — Larry Fink, CEO of BlackRock
- “The Trump family will use Ethereum to launch significant businesses.”
- — Joe Lubin, co-founder of Ethereum
Conclusion
From institutional Bitcoin ETFs to regulatory shifts and market volatility, the crypto landscape remains dynamic. As Bitcoin edges toward speculative highs, investors must navigate both opportunities and risks carefully. With evolving regulations and increasing adoption, the crypto ecosystem continues to shape the future of finance.
Stay updated for more insights and analyses next week!