Crypto & Blockchain Daily Brief Friday, May 24, 2024

VanEck's Ethereum exchange-traded fund (ETF) with the ticker symbol ETHV has been listed on the Depository Trust & Clearing Corporation (DTCC) website. The DTCC is a post-trade financial services company that provides clearing and settlement services for the financial markets, including ETFs. The listing of VanEck's Ethereum ETF on the DTCC's website is seen as a significant milestone for the cryptocurrency industry as it signals the growing acceptance and integration of digital assets into traditional financial systems. VanEck's Ethereum ETF aims to provide investors with exposure to Ethereum, the second-largest cryptocurrency by market capitalization, through a regulated investment vehicle. The ETF allows investors to gain price exposure to Ethereum without the need to hold the underlying asset directly. This can be particularly beneficial for institutional investors who may have restrictions on holding cryptocurrencies directly but are interested in gaining exposure to the digital asset market. The listing of VanEck's Ethereum ETF on the DTCC's website is expected to increase the accessibility and visibility of the ETF among investors. It also demonstrates the continued mainstream acceptance of cryptocurrencies and blockchain technology. The move may pave the way for more traditional financial institutions to offer similar products and services related to cryptocurrencies, further bridging the gap between the digital asset market and traditional finance.

Coinbase, a popular cryptocurrency exchange, has announced that it will now allow XRP trading for its customers in New York. This move comes after the New York State Department of Financial Services (NYDFS) granted Coinbase a BitLicense, allowing the exchange to offer XRP trading to its users in the state. The addition of XRP to Coinbase's New York trading platform is significant because XRP is the native cryptocurrency of Ripple, a company that has been involved in legal battles over the digital asset. XRP trading on Coinbase in New York is now available through various channels, including the Coinbase website, mobile apps, and Coinbase Pro, the exchange's professional trading platform. This development is expected to increase the accessibility of XRP to a broader audience of cryptocurrency traders and investors in New York. Coinbase's decision to offer XRP trading in New York reflects the exchange's commitment to complying with regulatory requirements and expanding its services to meet the needs of its customers. The addition of XRP trading in New York is likely to attract more users to Coinbase's platform and contribute to the growing adoption of XRP in the state. Overall, Coinbase's inclusion of XRP trading in New York is a positive development for both the exchange and XRP enthusiasts in the state, as it provides more opportunities for individuals to buy, sell, and trade XRP in a regulated and secure environment.

The U.S. House of Representatives has passed the Financial Technology Protection Act (FIT21), a bill aimed at promoting innovation in the fintech and cryptocurrency sectors. The bill received strong bipartisan support, with 331 representatives voting in favor and only 101 against it. The FIT21 bill is designed to address regulatory challenges faced by fintech companies and to encourage the development of new technologies in the financial industry. One key aspect of the bill is the creation of a working group composed of representatives from various federal agencies, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The working group will be tasked with studying the impact of emerging technologies, such as blockchain and cryptocurrencies, on the financial system and making recommendations for regulatory action. The FIT21 bill also includes provisions to promote financial inclusion and access to banking services for underserved communities. Additionally, it seeks to enhance consumer protection measures in the fintech sector by fostering collaboration between industry stakeholders and government agencies. Overall, the passage of the FIT21 bill represents a significant step towards creating a more conducive regulatory environment for fintech and cryptocurrency companies in the United States. The bill's bipartisan support signals a recognition of the importance of fostering innovation in the financial industry while ensuring consumer protection and regulatory compliance.

Grayscale Investments, a prominent cryptocurrency asset management company, has announced its support for Bitcoin on the Layer 2 scaling solution called Near Protocol. This move by Grayscale signifies the company's interest in exploring Layer 2 technologies to address the scalability issues faced by Bitcoin and other cryptocurrencies, which often suffer from slow transaction speeds and high fees. Near Protocol aims to improve the scalability and performance of blockchain networks by enabling faster and more cost-effective transactions. Grayscale's decision to support Near Protocol for Bitcoin is seen as a strategic move to leverage Layer 2 technology to enhance the efficiency of Bitcoin transactions. By utilizing Near Protocol, Grayscale aims to provide its clients with improved access to Bitcoin and offer them a more seamless and affordable way to invest in the digital asset. The integration of Bitcoin with Near Protocol is expected to bring benefits such as faster transaction confirmation times, lower fees, and enhanced scalability for Bitcoin users. This partnership between Grayscale and Near Protocol is a significant step towards addressing the scalability challenges faced by Bitcoin and other cryptocurrencies, ultimately making digital assets more accessible and user-friendly for investors. Overall, Grayscale's support for Bitcoin on Near Protocol demonstrates the company's commitment to exploring innovative solutions to enhance the performance and scalability of cryptocurrencies, while also providing its clients with improved access to digital assets.

The Fantom Foundation's community has recently approved its first "Sonic" proposal with overwhelming support of 99%. The Sonic program aims to enhance the Fantom ecosystem by introducing new features and improvements to the network. The proposal was put forward by the community, signaling a decentralized governance approach within the Fantom Foundation. The Sonic proposal, which received nearly unanimous support, focuses on implementing new features such as staking rewards and a dedicated marketplace for NFTs on the Fantom network. The proposal's success highlights the community's active engagement and commitment to driving innovation within the Fantom ecosystem. The Fantom Foundation is known for its high-performance blockchain platform that offers fast transaction speeds and low fees. By introducing the Sonic program, Fantom aims to further enhance its network capabilities and provide users with a more comprehensive and efficient platform for blockchain transactions. The overwhelming support for the Sonic proposal demonstrates the strong community backing behind Fantom's development initiatives. With a decentralized governance model in place, the Fantom Foundation is paving the way for community-led decision-making and innovation within its ecosystem. Overall, the approval of the Sonic proposal with 99% support reflects the community's confidence in Fantom's vision and commitment to advancing the capabilities of its blockchain network. This milestone sets a positive precedent for future community-driven initiatives within the Fantom ecosystem.