Research Summary

The report discusses key developments in the cryptocurrency sector, including the progress of Bitcoin ETF negotiations with the SEC, BlackRock and Bitwise’s updated Bitcoin Spot ETF applications, and the controversy surrounding Bitcoin developer Luke Dashjr’s proposal to disable Ordinals. It also covers the U.S. Space Force’s suggestion to investigate the strategic importance of PoW systems like Bitcoin, the acceptance of Bitcoin and USDT for municipal taxes in Lugano, and El Salvador’s new visa-free program. The report also provides updates on Binance, allegations against Gate, Phoenix Group’s IPO, and Sotheby’s inaugural Bitcoin Ordinals Art Auction.

Key Takeaways

Progress in Bitcoin ETF Negotiations

  • Advanced Discussions with the SEC: Asset management companies seeking to list Bitcoin ETFs have reached crucial technical discussions with the SEC, indicating potential approval. The SEC must make a final decision on ARK’s application by January 10th, with insiders suggesting possible approval early in the new year.

Updated Bitcoin Spot ETF Applications

  • Revised Applications by BlackRock and Bitwise: Both BlackRock and Bitwise have submitted updated S-1 documents for their Bitcoin spot ETFs to the SEC, indicating active resolution of issues between the issuers and the SEC.

Controversy Over Disabling Ordinals

  • Proposal by Bitcoin Developer Luke Dashjr: Dashjr’s proposal to disable Ordinals, which he claims is exploiting a vulnerability in Bitcoin Core to conduct spam attacks, has sparked controversy within the Bitcoin community.

Strategic Importance of PoW Systems

  • Suggestion by U.S. Space Force Member: Jason Lowery, a member of the U.S. Space Force, has suggested that the Secretary of Defense investigate the “national strategic importance” of Proof-of-Work (PoW) systems like Bitcoin, arguing that they can deter cyberattacks and represent the beginning of a cybersecurity revolution.

Acceptance of Cryptocurrency for Municipal Taxes

  • Initiative by Swiss City Lugano: Lugano, a Swiss city, now accepts Bitcoin (BTC) and Tether (USDT) for taxes and all other community fees as part of its “Bitcoin Plan” in collaboration with Tether.

Actionable Insights

  • Monitor the Progress of Bitcoin ETF Negotiations: The advanced stage of discussions between the SEC and asset management companies seeking to list Bitcoin ETFs suggests potential approval, which could significantly impact the cryptocurrency market.
  • Understand the Implications of Disabling Ordinals: The controversy surrounding Bitcoin developer Luke Dashjr’s proposal to disable Ordinals highlights the ongoing debates within the Bitcoin community about the platform’s vulnerabilities and potential solutions.
  • Consider the Strategic Importance of PoW Systems: The suggestion by a U.S. Space Force member to investigate the strategic importance of PoW systems like Bitcoin underscores the growing recognition of the potential of these systems in cybersecurity.
  • Explore the Acceptance of Cryptocurrency for Municipal Taxes: The initiative by the Swiss city of Lugano to accept Bitcoin and USDT for taxes and community fees indicates a growing trend of municipalities embracing cryptocurrencies, which could have significant implications for the broader adoption of digital currencies.

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