Research Summary
This report discusses the potential for Bitcoin (BTC) and Ethereum (ETH) Exchange-Traded Funds (ETFs), the launch of PayPal’s stablecoin PYUSD, and the ongoing hunt for the Curve (CRV) hacker. It also covers the latest developments in the DeFi sector, including the launch of various protocols and the potential approval of BTC ETFs. The report ends with a look at upcoming events, such as SAND’s 16.16% unlock on August 14th and potential news from the SEC about 21shares and Ark Invest’s Bitcoin ETF filings.
Key Takeaways
Bitcoin and Ethereum ETFs
- ETF Approval Timeline: The SEC has 240 days to consider, approve, or deny the ETF filings, which brings us to January 10th, 2024. The likelihood of a delay is high due to the involvement of BlackRock, a major player with a strategic partnership with Coinbase.
- ETF Types: The report discusses the possibility of different types of ETFs, including spot BTC, ETH futures, or a combination of BTC and ETH. The SEC’s stance on Ethereum being a security makes a spot ETH ETF unlikely.
- ETF Approval Chances: Bloomberg market analysts James Seyffart and Eric Balchunas give the approval of BTC/ETH ETFs a 65% chance, up 65x compared to the previous month’s 1%.
PayPal’s Stablecoin PYUSD
- Launch of PYUSD: PayPal has launched its stablecoin PYUSD, issued by Paxos, after pausing plans back in February. The stablecoin is claimed to be “the world’s safest dollar-backed digital asset.”
- Asset Protection: PYUSD has an “asset protection” function written in the code, which gives Paxos the right to “freeze” your assets if the government intervenes.
- Market Reception: Questions arise about whether the general public will care about a PayPal dollar and whether they will associate it with crypto.
Curve (CRV) Hacker Hunt
- Hacker Hunt: The deadline has passed for the CRV hacker, and a reward of $1.85M has been posted for the person who can identify and locate the hacker.
Actionable Insights
- Monitor ETF Developments: Keep an eye on the developments around the approval of BTC and ETH ETFs, as they could significantly impact the crypto market.
- Assess PYUSD Impact: Evaluate the potential impact of PayPal’s PYUSD on the stablecoin market and its implications for digital asset transactions.
- Stay Informed on Security Issues: Follow the developments in the CRV hacker hunt to understand the security risks in the DeFi sector.
