Crypto & Blockchain Daily Brief Friday, January 26, 2024

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on whether to approve BlackRock's proposal for a spot Ethereum exchange-traded fund (ETF). The SEC announced on Monday that it was extending the review period for the proposal to August 10, 2021.BlackRock, the world's largest asset manager, filed an application with the SEC in March seeking approval to launch a spot ETF that would invest primarily in Ethereum futures. The proposed ETF would not hold actual ETH tokens but would instead invest in futures contracts tied to the cryptocurrency.The SEC's decision to delay its ruling on the BlackRock proposal is not unexpected, as the regulator has been cautious in approving cryptocurrency-related ETFs. The SEC has previously expressed concerns about the potential for market manipulation and lack of investor protection in the cryptocurrency market.The delay in the SEC's decision on the BlackRock ETF comes amid increasing interest in cryptocurrency ETFs from both retail and institutional investors. Several other companies, including VanEck, Fidelity, and WisdomTree, have also filed applications with the SEC for cryptocurrency ETFs.If approved, the BlackRock ETF would be the first ETF in the United States to offer exposure to Ethereum. Currently, there are no ETFs in the U.S. that directly track the price of Ethereum or any other cryptocurrency.The SEC has yet to approve a cryptocurrency ETF, although it has allowed several investment products tied to Bitcoin futures to launch. The approval of a spot Ethereum ETF would be seen as a significant milestone for the cryptocurrency industry and could pave the way for more institutional investment in Ethereum and other cryptocurrencies.

The United States Department of Justice (DOJ) has announced that it will be selling off $1.17 billion worth of Bitcoin that was seized from the Silk Road dark web marketplace. The Bitcoin was seized from Ross Ulbricht, the founder and operator of Silk Road, who was convicted in 2015 for drug trafficking, money laundering, and computer hacking. The DOJ plans to auction off the Bitcoin in smaller lots, with the first auction taking place on February 18, 2021. This will be the first time that the US government has sold Bitcoin seized from a criminal case in this manner. According to the announcement, the auction will be open to both US and international bidders.The US government has previously sold seized Bitcoin through public auctions, but this will be the largest amount of Bitcoin ever auctioned off at once. The proceeds from the auction will go to the US Marshals Service, which is responsible for managing and selling seized assets.The sale of the seized Bitcoin comes at a time when the cryptocurrency market is experiencing a bull run, with Bitcoin reaching all-time highs. This could potentially lead to higher demand and a higher selling price for the seized Bitcoin.The Silk Road was an infamous dark web marketplace that operated from 2011 to 2013. It facilitated the sale of illegal drugs, hacking tools, and other illicit goods and services. Ross Ulbricht, also known as "Dread Pirate Roberts," was arrested in 2013 and sentenced to life in prison without the possibility of parole.The sale of the seized Bitcoin is a significant step in the US government's efforts to combat illegal activities and recover funds from criminal enterprises. It also highlights the growing recognition of Bitcoin as a valuable asset that can be bought and sold like any other asset.