🕺Wizards and Wiz-ettes… This is mambo #5 💃
One, two, three, four, five
All the wizards in the car,
so come on, let's ride 🚗
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This week has been a wild ride in the world of crypto, with some big news stories breaking. Here's a quick rundown:
😞 ETH futures ETFs flop on Day 1
🇺🇸 The U.S. VS. SBF: Day 1 Highlights
📈 Cryptober and Happy Hallow-green
🇭🇰 Hong Kong Exchanges and Clearing launches a DAML-based settlement platform.
🚫 XRP leads crypto rally after SEC's appeal bid is rejected.
So, grab a wand, put on your wizard's glasses, and let's get started!
ETH futures ETFs flop on Day 1
The crypto world was buzzing with excitement when the U.S. Securities and Exchange Commission (SEC) approved nine exchange-traded funds (ETFs) based on Ether futures last week.
These funds, which track the prices of contracts to buy or sell ETH at a future date, were supposed to offer investors a new way to gain exposure to the second-largest cryptocurrency without having to hold it directly.
However, the debut of these funds on Monday was far from impressive. According to Bloomberg, the nine ETH futures ETFs had a combined trading volume of just $2 million by midday, which is a fraction of the $1 billion that the first Bitcoin futures ETF saw on its first day of trading in October 2021.
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Why did the ETH futures ETFs flop so badly?
There are several possible reasons.
One is that the crypto market is in a slump, with Bitcoin hovering around $28,000 and Ether around $1,700, down from their all-time highs of over $60,000 and $4,000.
Another is that the demand for Ether futures is much lower than that for Bitcoin futures, as evidenced by the fact that Ether futures open interest is only about one-fifth of Bitcoin’s futures market.
Some investors may be waiting for a more direct way to invest in Ether, such as an ETF that tracks the spot price of the cryptocurrency rather than its futures contracts.
The SEC has not approved any such product yet, but it has hinted that it may be more open to them in the future.
The U.S. VS. SBF: Day 1 Highlights
The trial of the century in the world of cryptocurrency has officially commenced: The United States is pitted against Sam Bankman-Fried.
The individual responsible for the FTX collapse is now confronted with a total of 7 criminal charges, which encompass offenses such as fraud and money laundering.
The initial day of the trial unfolded rather uneventfully, absent of any legal arguments, witnesses, or the customary courtroom exclamations of "objection”, ever so prevalent on the big screen.
Instead, the primary focus of the day revolved around the process of ‘voir dire’, an elaborate term for the selection of the jury.
The task at hand is to choose 18 jurors, a procedure anticipated to conclude by the end of the day. Following this, both sides will present their opening statements, marking the commencement of testimonies from the first witnesses.
Wizardias take on the FTX collapse
Cryptober, and happy Hallow-green
October is historically a bullish month for Bitcoin, with an average return of +29% since its inception in 2009.
In fact, Bitcoin has only had two red Octobers in its history, and both of those occurred during bear markets.
Interestingly, Bitcoin and Ethereum have both ended October in the green for the past five years.
Additionally, Bitcoin just ended September in the green, which has only happened twice before. The last two times it happened, Bitcoin had a green October, November, and December.
One possible explanation for Bitcoin's strong performance in October is that it is a month when many institutional investors rebalance their portfolios. As a result, they may be more likely to buy Bitcoin in October, which could drive up the price.
In addition to the above, here are some other factors that could support Bitcoin's price in October 2023:
- The upcoming launch of the Bitcoin Taproot upgrade, which is expected to improve Bitcoin's privacy and scalability.
- The increasing adoption of Bitcoin by institutions and businesses.
- The growing popularity of Bitcoin as a hedge against inflation.
Tired of the bear? Read here to see 5 things that can beat it.
Of course, there are also some risks that could weigh on Bitcoin's price in October 2023, such as:
- A potential regulatory crackdown on cryptocurrencies.
- A major security breach or hack.
- A general sell-off in the risk asset markets.
One for the Skeptics
October could also be a bullish month for Bitcoin because it is the month of Halloween, a holiday associated with risk-taking behavior.
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Hong Kong Exchanges and Clearing launches DAML-based settlement platform
The Hong Kong Exchanges and Clearing (HKEX), a global financial leader, has launched a new settlement platform using DAML digital ledger technology.
This platform aims to streamline and improve the accuracy of post-trade processing for financial products such as stocks, bonds, and derivatives.
The DAML-based settlement platform is a major breakthrough for the HKEX, as it will help the exchange remain competitive in the global financial landscape.
It is also a testament to the growing adoption of digital ledger technology in the financial industry.
XRP leads crypto rally after SEC's appeal bid is rejected
The price of XRP, the native cryptocurrency of the Ripple network, has surged in recent days after the US Securities and Exchange Commission (SEC) had its appeal bid rejected by a federal judge.
The SEC is suing Ripple and its executives, alleging that they sold XRP as an unregistered security. Ripple has denied the allegations, arguing that XRP is a utility token and not a security.
The judge's decision to reject the SEC's appeal bid is a major victory for Ripple and XRP holders. It means that the case will now go to trial, where Ripple will have the opportunity to defend itself against the SEC's allegations.
The outcome of the Ripple-SEC trial could have a significant impact on the entire cryptocurrency industry. If Ripple wins, it could send a message to other regulators that XRP and other utility tokens are not securities.
Implications for the Crypto Industry
The Ripple-SEC case is one of the most important cases in the history of the cryptocurrency industry. The outcome of the case could have a significant impact on the regulation of cryptocurrencies in the United States and around the world.
If Ripple wins, it could send a message to other regulators that utility tokens are not securities. This could lead to increased adoption of utility tokens and other cryptocurrencies.
However, if the SEC wins, it could set a precedent that could make it more difficult for cryptocurrency companies to operate in the United States and other countries.
Image credit to https://coingape.com
What's Next for Ripple?
The Ripple-SEC case is expected to go to trial in early 2024. The outcome of the trial is uncertain, but it is likely to have a significant impact on the entire cryptocurrency industry. Learn more about Ripple and alternative layer 1's here..
Magic Crypto Ball 🔮
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Binance faces a class-action lawsuit, accused of attempting to monopolize the crypto market,
with SEC allegations of harming FTX via social media posts.
U.S. District Judge rejects SEC's appeal in the Ripple case, dealing another blow to the SEC.
OpenSea introduces OpenSea Studio for NFT creators and collectors.
Ryan Turnbull
Introducing Ryan Turnbull, a passionate Australian Chief Vibe Officer at Wizardia. Among many things, Ryan builds Wizardia’s community, creates captivating live streams, forms partnerships with other web3 projects, and produces engaging video and blog content. With his expertise, Ryan introduces crypto gaming to both masters and beginners, fostering a vibrant, exciting and supportive environment.
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