$3 Million Transaction Fee 🤡

Hello, and welcome to De.Nomics newsletter, your daily digest to stay ahead in the world of Web3 and decentralized technologies at a regional focus. Today, we have plenty of trending news and stories. So, get your cup of tea and some biscuits, and let’s go ahead.
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The Blends Briefs
TL’DR: Here’s a sneak peek into today’s newsletter

• Coinbase Stock Hits 18-Month High.

• GBTC Could See $2.7B of Outflows if ETF Conversion Is Approved.

• Bitcoin Sender Overpays Record-Breaking $3 Million Transaction Fee.

• Shutting Argentina’s Central Bank is 'Non-Negotiable'.

• Hong Kong’s Victory Securities Obtains Retail Crypto Trading License.

• Dictionomics: Grayscale Bitcoin Trust (GBTC).

Global Biscuits

Coinbase Stock Hits 18-Month High.
Coinbase's stock (COIN) on the Nasdaq has reached an 18-month high, trading at $115.75 per share, marking a nearly 6% increase in the past day. The stock is now at its highest price since before the collapse of the Terra crypto ecosystem in May 2022. Over the past month, Coinbase's stock has surged over 41%, reaching $82 per share. The renewed interest in Coinbase could be linked to its role as the custodian or surveillance-sharing partner for several high-profile Wall Street firms' spot Bitcoin exchange-traded fund (ETF) applications, including BlackRock and Fidelity. The potential approval of a Bitcoin ETF by the U.S. Securities and Exchange Commission is driving attention to Coinbase.

GBTC Could See $2.7B of Outflows if ETF Conversion Is Approved.
JPMorgan analysts suggest that a significant amount of Grayscale Bitcoin Trust (GBTC) shares have been acquired in the secondary market this year, anticipating the trust's conversion to an exchange-traded fund (ETF). The bank estimates that around $2.5 billion has flowed into GBTC since the beginning of the year, rising to $2.7 billion when considering the covering of short interest. If the SEC approves GBTC's conversion to an ETF, investors might take profits, leading to a potential outflow of funds from GBTC, which could impact Bitcoin prices. The report notes that the balance of risks for Bitcoin prices is skewed to the downside, with the potential for some of the funds to completely exit the Bitcoin space.

Bitcoin Sender Overpays Record-Breaking $3 Million Transaction Fee.
A Bitcoin sender accidentally paid a record-breaking $3 million in transaction fees for a transaction intended to send 139.42 BTC (worth around $5.1 million). However, 83.64 BTC was consumed by transaction fees, leaving the recipient with just 55.77 BTC (around $2 million). This incident, likely a mistake, highlights the importance of careful attention when setting transaction fees on the Bitcoin network. Such errors have occurred in the past, underscoring the need for users to double-check their transactions to avoid overpaying in fees.

Tastes of the regions

Shutting Argentina’s Central Bank is 'Non-Negotiable'.
Javier Milei, Argentina's President-elect, stated that the closure of the country's central bank is a "non-negotiable matter," reiterating a signature campaign pledge. The announcement comes as Milei works to assemble his team before taking office on December 10. Milei has emphasized a commitment to slashing state spending, subsidies, and implementing various economic reforms, including the closure of the central bank. However, his more radical proposals face significant challenges, given the limited number of seats his libertarian coalition holds in Congress and the absence of support from provincial governors.

Hong Kong’s Victory Securities Obtains Retail Crypto Trading License.
Hong Kong-based Victory Securities (8540) has obtained approval from the Securities and Futures Commission (SFC) to provide crypto services to retail clients. The investment firm is the first licensed corporation to offer crypto trading and advisory services to retail investors, joining other firms like HashKey Exchange and OSL Digital Securities in the Hong Kong crypto market. The regulatory framework introduced earlier this year allows for the offering of crypto services to retail investors in Hong Kong, contributing to the region's growing role in the cryptocurrency market.

Dictionomics: Grayscale Bitcoin Trust (GBTC)

Grayscale Bitcoin Trust (GBTC) is a type of investment vehicle that allows investors to gain exposure to the price movement of Bitcoin without having to buy or store the cryptocurrency directly. GBTC is a trust that holds bitcoin and issues shares that represent ownership of the underlying assets. GBTC shares trade on the over-the-counter (OTC) market and can be bought and sold through most brokerage accounts. GBTC aims to track the performance of the Bitcoin Price Index (BPI), which measures the average price of Bitcoin across major exchanges. However, GBTC often trades at a premium or discount to the BPI, depending on the supply and demand of the shares. GBTC is one of the most popular ways for retail investors to access the Bitcoin market, but it also comes with some risks and fees that should be considered before investing.

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