Bitcoin sets a new high record for 2023

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The Blends Briefs
TL’DR: Here’s a sneak peek into today’s newsletter

• Bitcoin surges over 34,000 with the highest record since May 2022

• Ark Invest sold $5.8 Million in Coinbase Stocks and GBTC Shares

• Nym Technologies launched a $300 Million fund to fuel Web3 privacy innovations

• Solana’s largest decentralized finance protocol (DeFi), Marinade Finance, has begun blocking UK users

• Blockchain Life 2023 started today in Dubai, and The 1st Fintech and Blockchain Summit in Kuwait

• The Rising Status of Digital Assets in the GCC: Regulatory Trends and Challenges

• Spot Bitcoin ETF

A must-have
A high record for Bitcoin since May 2022

Bitcoin experienced a notable rally, surging over $34,000 after an earlier climb beyond $31,000. This marks a record high for 2023, reaching levels not seen since May of the previous year. The price increase triggered significant liquidations, with $220 million in BTC shorts and a total of $400 million in liquidations across the crypto market.

These two rallies at the beginning of the week are believed to be linked to growing expectations regarding the approval of Bitcoin spot ETF applications by the Securities and Exchange Commission (SEC). A Washington, D.C. judge recently instructed the SEC to reevaluate a long-delayed spot Bitcoin ETF application from Grayscale. Additionally, BlackRock, a global investment giant, updated its application to indicate progress toward launching its Bitcoin spot ETF, signaling confidence in future approval.

Analysts suggest that both price surges broke through key market resistance levels at $31,000 and $34,000, which is viewed as a bullish signal. This positive price action challenges the "Bearish Bitcoin Fractal," a model predicting record highs followed by significant declines, potentially indicating a more optimistic outlook for Bitcoin's performance.

This recent momentum in Bitcoin's price reflects increased interest and expectations surrounding regulatory developments and institutional involvement in the crypto market.

Global Biscuits

• Ark Invest sold $5.8 Million in Coinbase Stocks and GBTC Shares as bitcoin price climbs.

Ark Invest’s CEO Cathie Wood is a well-known advocate of Bitcoin and once predicted Bitcoin would reach 1 million dollars.

Ark Invest sold 42,613 shares of Coinbase and 100,739 shares of Grayscale Bitcoin Trust worth $5.8 million, based on Coinbase's closing price of $77.21 and GBTC's $24.71 on Monday among the ongoing crypto prices surge. Ark Invest is the second-largest shareholder of GBTC, holding over $130 million in the trust, which represents 10.42% of Ark's Next Generation Internet ETF (ARKW), while Coinbase represents 9.08% of the ARKW portfolio.

In the same context, earlier this month, Ark refiled for spot bitcoin ETF approval with the SEC in partnership with 21Shares, making it among 12 spot bitcoin ETFs awaiting approval by the SEC.

• $300 Million fund launched by Nym Technologies to fuel Web3 privacy innovations.

Nym Technologies, a privacy-focused infrastructure provider, has launched its Innovation Fund program, which aims to provide financial support to Web3 creators, developers, and privacy advocates across all stages of project development. Backed by venture capital investors like Andreessen Horowitz (a16z) and Polychain Capital, the program has a total funding commitment of up to $300 million. Nym Technologies uses a "mixnet" to protect user data, including transaction content and metadata, from surveillance.

The fund is open for applications and focuses on Nym-compatible Web3 wallets, Remote Procedure Calls (RPCs), and projects categorized as "public good services," which provide essential resources for the Nym ecosystem. It also extends to innovative concepts that enhance user privacy or promote open-source collaboration. Nym CEO Harry Halpin expressed a strong interest in a wide range of projects, including those related to censorship resistance, anonymous file-sharing for whistleblowers, anonymous social networks, and more.

This initiative reflects a commitment to advancing privacy solutions using Nym's technology stack, making it more accessible for developers, including those who may not be privacy experts. It signifies Nym's dedication to supporting projects that promote privacy and user empowerment within the Web3 space. More details bout the fund and how to apply through this link.

Tastes of the regions

• Solana’s largest decentralized finance protocol (DeFi), Marinade Finance, has begun blocking UK users and reportedly quits the UK market. Indeed, the platform has started the process of blocking its users in the region from accessing the site due to “compliance concerns” regarding Financial Conduct Authority (FCA) regulations. At the time of the report, Marinade Finance had over 75,000 users and more than $265 million in total value locked, representing 70% of all funds locked on Solana.

This action follows a trend of crypto-related companies withdrawing from the UK market due to regulatory compliance issues. Binance ceased accepting users from the UK on October 16, while PayPal and Bybit also restricted crypto services for UK customers. The U.K. FCA introduced the Financial Promotions (FinProm) Regime on October 8, aiming to establish fair and transparent advertising standards for cryptocurrency companies. Some firms, such as OKX and MoonPay, have expressed their intention to comply with these regulations.

The move by Marinade Finance underscores the challenges faced by crypto companies in navigating the evolving regulatory landscape, potentially impacting the availability of DeFi services for UK users.

• Blockchain Life 2023 started today in Dubai. The premier crypto event, known as the Crypto Whales Meeting Point, is set to unite over 7,000 attendees from 120 countries on October 24-25 in Dubai. This influential gathering brings together global crypto investors, government officials, miners, developers, and promising startups to shape the future of cryptocurrencies and Web3 at the 11th Blockchain Life Forum.

With over 80 renowned speakers from innovative companies, attendees can expect insights and groundbreaking ideas from industry leaders.

• The 1st Kuwait Fintech and Blockchain Summit, organized and hosted by the Kuwait College of Science and Technology (KCST), is set to take place from October 24th to 26th, 2023. This landmark event in the financial technology landscape aims to bring together experts, thought leaders and enthusiasts to delve into the realms of fintech and blockchain technology.

With the world's increasing embrace of digitalization and innovative financial solutions, the summit provides a platform for discussions, knowledge exchange, and collaboration in the sector. It features diverse sessions, workshops, and panel discussions with prominent speakers and pioneers in fintech and blockchain, covering topics like decentralized finance (DeFi), digital currencies, regulatory challenges, and cybersecurity.

Digital Asset Landscape in the GCC: Balancing Security and Accessibility

The GCC region is witnessing a growing interest in digital assets, such as cryptocurrencies and tokens. However, these assets pose significant challenges for custodians who need to ensure their security and accessibility. One of the main trade-offs that custodians face is whether to use hot storage or cold storage solutions for storing digital assets. Hot storage refers to online platforms that allow users to access their assets quickly and easily but also expose them to the risk of hacking or service disruption. For example, some hot storage providers have been victims of cyberattacks that resulted in the loss of millions of dollars worth of digital assets. Cold storage, on the other hand, involves offline devices or locations that keep the assets away from the internet but also make them less convenient to use. For example, some cold storage methods require users to physically access a hardware wallet or a safe deposit box to retrieve their assets. Custodians need to balance these factors and provide solutions that meet the needs and preferences of their clients while complying with the regulatory and legal frameworks of the GCC countries.

The regulatory and legal frameworks for digital assets in the GCC vary from country to country but generally aim to provide clarity and certainty on the status, treatment, and supervision of digital assets and their service providers. For instance, the Dubai International Financial Centre Authority (DIFCA) has issued a consultation paper on its proposal to enact a new Digital Assets Law (DAL) and to amend several existing DIFC laws to accommodate the legal features and consequences of the recognition of digital assets as a type of property. The DAL defines a digital asset as a thing that exists as a notional quantity unit manifested by the combination of the active operation of software by a network of participants and network-instantiated data independent of any particular person or legal system. The DAL also sets out the conditions for a person to have control and ownership of a digital asset, which include the exclusive ability to prevent others from obtaining substantially all the benefit from the digital asset, the ability to obtain substantially all the benefit from the digital asset, the exclusive ability to transfer those abilities to another person, and the ability to identify oneself as having those abilities.

Other GCC countries have also introduced or are planning to introduce regulations for digital assets, such as Bahrain, which has issued rules for crypto-asset platform operators under its Central Bank of Bahrain (CBB) Rulebook Volume 6, and Saudi Arabia, which has established a joint committee with the United Arab Emirates (UAE) to pilot a cross-border cryptocurrency project. The Law Commission of England and Wales has also published a report on digital assets, which provides guidance on how digital assets can be treated as personal property under English law. The report suggests creating a third category of property for digital assets, distinct from things in possession and things in action, and adopting a principle that control is at the root of title to digital assets. These developments indicate that there is increasing recognition and acceptance of digital assets as a legitimate form of property and value exchange in the GCC region and beyond.

Dictionomics
Word of the day… Spot Bitcoin ETF

Spot Bitcoin ETF

A Spot Bitcoin ETF is an open-end fund that can issue or redeem shares based on demand. It's designed to closely track the spot price of Bitcoin. An ETF is traded on major exchanges, similar to stocks, and can be bought and sold throughout the trading day at prices that are in line with the underlying asset. ETFs allow for the creation and redemption of shares to meet demand.

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