Matrixport Founder Addresses Bitcoin ETF Report and Market Volatility; BlackRock Set to Invest $10 Million in Bitcoin to Seed Anticipated ETF Launch; ENS Token Soars 72% as Ethereum Co-Founder, Vitalik Buterin, Commends Platform’s Significance
Matrixport Founder Addresses Bitcoin ETF Report and Market Volatility
Jihan Wu, the founder of Bitdeer and Matrixport, a Bitcoin mining company and crypto financial services firm, responded to the recent market turmoil triggered by a report suggesting a potential delay in the approval of Bitcoin exchange-traded funds (ETFs). Wu stated that the dissemination of the report was “not planned by Matrixport and is beyond our control.”
The Matrixport report, released for its clients, speculated that spot Bitcoin ETF proposals, widely anticipated for regulatory approval, might face rejection by the United States Securities and Exchange Commission (SEC) in January. This opinion coincided with a significant drop in Bitcoin’s price by over 10% to $40,800, followed by a subsequent recovery.
Matrixport’s researchers highlighted the dominance of Democrats in the current leadership of the SEC, led by SEC Chair Gensler, who is perceived as less favorable towards cryptocurrencies. Despite the report’s impact on the market, Wu emphasized that Matrixport analysts operate independently, expressing their opinions without any management influence.
Wu dismissed claims that the Matrixport report was responsible for Bitcoin’s price decline, attributing the volatility to high funding fees in Bitcoin perpetual markets and a recent pullback in crypto-related stocks. He also expressed confidence in the inevitable approval of a spot Bitcoin ETF by the SEC, believing it will attract fresh investments into Bitcoin despite the current uncertainties and market fluctuations.
BlackRock Set to Invest $10 Million in Bitcoin to Seed Anticipated ETF Launch
BlackRock, the world’s largest asset manager and a leading contender for the first spot Bitcoin exchange-traded fund (ETF) in the United States, is reportedly gearing up to purchase $10 million worth of Bitcoin on January 3, according to market analysts.
On December 23, research analyst James Seyffart shared on X (formerly Twitter) that BlackRock intends to use the purchased Bitcoin to seed its ETF. While Seyffart emphasized that the mentioned document is not yet finalized or approved, he suggested that the Bitcoin acquisition aligns with the prediction of ETF approval in January.
Seyffart clarified that the capital injection might not necessarily signal an immediate ETF launch, but it could indicate that BlackRock is anticipating a release shortly afterward. The analyst noted that the reference to January 3 could be a hint, drawing parallels to the date of the Bitcoin genesis block.
Bloomberg analyst Eric Balchunas also weighed in on the anticipated Bitcoin purchase by BlackRock, describing the $10 million investment as a “pretty big bump” from the initial $100,000 seed funding in October. Balchunas also highlighted Bitwise’s Form S-1 filing, revealing the intent to seed its pending spot Bitcoin ETF with $200 million, surpassing BlackRock’s planned purchase.
While January 3 has been speculated as the date for BlackRock’s Bitcoin seed funding, alternative reports suggest that the date might be pushed back to January 5. Both dates remain speculative at this point.
The United States Securities and Exchange Commission (SEC) set the deadline for amendments to spot Bitcoin ETF applications on December 29, 2023. BlackRock, along with VanEck and Valkyrie, filed last-minute amendments. Analysts anticipate the SEC’s decision on the ETFs to be announced by January 10.
ENS Token Soars 72% as Ethereum Co-Founder, Vitalik Buterin, Commends Platform’s Significance
The governance token of the Ethereum Name Service (ENS) experienced a remarkable surge of 72% on January 3, following accolades from Ethereum co-founder, Vitalik Buterin.
In a recent post on X (previously Twitter), Buterin emphasized the critical importance of the Ethereum Name Service, labeling it as “super important.” He underlined the necessity for the platform to remain accessible and affordable for all Ethereum network users, particularly those utilizing layer-2 networks.
Buterin advocated for layer-2 networks like Optimism, Arbitrum, and Polygon to support ENS addresses. He suggested the implementation of (trustless, merkle-proof-based) CCIP resolvers on all L2s, enabling ENS subdomains to be registered, updated, and read directly on these networks.
Following Buterin’s endorsement on X, the ENS token’s price surged from a yearly low of $8.50 to an impressive eight-month high of $14.70—a remarkable 72% increase, according to CoinMarketCap data. The current trading price of ENS has stabilized around $12.90 as of the time of publication.
ENS achieved an all-time high of $74.25 on November 28, 2021, coinciding with the broader crypto market’s downturn into a prolonged industry-wide bear market.
The Ethereum Name Service provides crypto enthusiasts the opportunity to acquire a “.eth” domain name, offering a user-friendly alternative to the intricate string of letters and numbers constituting a typical wallet address. This feature facilitates seamless fund transfers and receipts among users on the Ethereum network.
In a proposal made in September 2022, Buterin recommended the introduction of a 3% tax on ENS domain names, known as the “Harberger” tax proposal. The objective behind this proposal is to curb domain hoarding by early users seeking maximum profits, fostering wider adoption, and promoting more decentralized ownership of ENS addresses.
