Monat: Januar 2025

• Nasdaq has filed a 19b-4 form for the proposed Canary Litecoin ETF.
• The SEC recently asked Canary Capital to amend the S-1 form of the proposed Litecoin ETF.
• The initial filing for the Canary Litecoin ETF was made in October 2024.

Nasdaq has taken a pivotal step by filing a 19b-4 form for the proposed ‘Canary Litecoin ETF,’ signaling the start of the US Securities and Exchange Commission (SEC) review process.

This filing comes just after Canary Capital amended its S-1 form, completing the necessary duo of documents required for the SEC’s consideration.

The 19b-4 form, submitted on Wednesday, outlines that US Bancorp Fund Services, LLC will act as the administrator for the ETF, with US Bank N.A. tasked with managing the fund’s cash assets. The custody of the actual Litecoin for the ETF will be handled by Coinbase Custody Trust Company LLC.

Canary Litecoin ETF is part of the growing list of proposed crypto ETFs

This move by Nasdaq and Canary Capital is part of a broader trend where multiple firms are pushing for spot ETFs based on various cryptocurrencies, including Solana and XRP, amidst speculation that the incoming Trump administration could be more favourable towards crypto regulations.

The SEC has previously given the green light to Bitcoin ETFs in January 2024 and Ethereum ETFs later that year, paving the way for other crypto-based financial products.

Bloomberg Senior ETF Analyst Eric Balchunas has expressed optimism about the Litecoin ETF’s prospects, stating on X that feedback from the SEC on the S-1 form bodes well for approval. However, he also noted that the imminent change in SEC leadership could introduce significant variables.

Gary Gensler’s tenure as SEC Chair concluded on Monday, and President-elect Donald Trump has nominated Paul Atkins, a former SEC commissioner known for his crypto-friendly views, to take over. The confirmation hearing for Atkins might occur in March, potentially influencing the regulatory climate for cryptocurrencies.

Canary Capital’s initial filing for the Litecoin ETF occurred in October 2024, marking the beginning of this regulatory journey.

With the 19b-4 and S-1 forms now in place, the focus shifts to the SEC, where the process will unfold over the coming months. This filing is a critical milestone in potentially bringing Litecoin to mainstream investors through a regulated financial product, highlighting the growing intersection between traditional finance and the digital asset space.

The post Nasdaq files 19b-4 form for ‘Canary Litecoin ETF’ SEC approval appeared first on CoinJournal.

• Coinbase has introduced USDC loans with Bitcoin as collateral.
• The loans are available for US customers.
• The loans have no fixed repayment and they auto-adjust based on the activities on Base.

In a move to expand its decentralized finance (DeFi) offerings, Coinbase has introduced a novel service allowing its US customers (excluding those in New York) to borrow USD Coin (USDC) by leveraging their Bitcoin (BTC) as collateral.

This innovative feature, announced in a recent update, aims to provide users with quick and flexible access to funds without the necessity of selling their Bitcoin.

The process leverages Coinbase’s cbBTC stablecoin

Users pledge their Bitcoin (BTC), which is then converted into cbBTC, a wrapped version of Bitcoin specifically designed by Coinbase for use in DeFi applications. This conversion enables Bitcoin, which typically operates outside the DeFi ecosystem due to its technical framework, to interact seamlessly with DeFi protocols.

The cbBTC is subsequently sent to Morpho, a DeFi lending protocol built on Coinbase’s Base blockchain. In return, borrowers receive USDC, a stablecoin pegged to the US dollar, which they can utilize for various purposes such as covering expenses, international transfers, or conversion into US dollars.

The interest rates on these loans are dynamically adjusted based on market activities on the Base blockchain, reflecting Coinbase’s commitment to aligning DeFi with user needs.

Notably, this loan service comes at a time when the crypto lending sector has been under scrutiny following the high-profile bankruptcies of entities like Celsius and BlockFi in 2022, which significantly dented trust in crypto lending.

By integrating with Morpho, Coinbase is stepping in as a middleman to potentially restore some confidence, offering a transparent, smart contract-based lending experience.

No fixed repayment timelines

What sets this service apart is the absence of fixed repayment schedules. Borrowers have the liberty to repay the loan at their own pace, as long as the value of the Bitcoin collateral remains above a certain threshold relative to the loan amount.

However, should Bitcoin’s value plummet, the system is designed to automatically liquidate enough collateral to cover the loan, safeguarding the protocol’s integrity.

The advantages of such crypto-backed loans are manifold. For one, they allow users to bypass immediate capital gains taxes by borrowing against their assets rather than selling them. Moreover, these loans operate on blockchain technology, ensuring transparency and efficiency through automated processes.

The post Coinbase introduces USD Coin (USDC) loans using Bitcoin as collateral appeared first on CoinJournal.

• Crypto-friendly trading platform eToro files for US IPO.
• eToro is eyeing the IPO at a valuation of $5 billion.

eToro, a crypto-friendly trading platform and social investment network, has reportedly filed for public listing in the United States.

The Financial Times reported on Jan. 16 that eToro had submitted an application for an initial public offering with the US Securities and Exchange Commission. The company’s quest for an IPO in the US comes with the SEC filing likely opening up eToro’s public trading in New York, the FT reported.

eToro is eyeing the IPO at the valuation of $5 billion, with the trading platform likely to be listed as soon as Q2 of 2025.

While eToro’s largest footprint remains in the United Kingdom, the company wants to tap into the vast potential that’s the US market. The company raised $250 million in a funding round in 2023, with its valuation at $3.5 billion. Ahead of the key milestone, eToro is working with global banks such as Goldman Sachs, UBS and Jefferies as it eyes over $5 billion in the IPO.

eToro, founded in 2007, had increased its business model to include crypto. However, in September 2024, it ceased nearly all of its crypto offerings amid the negative pressure from the SEC.

The post eToro files for IPO in the US: report appeared first on CoinJournal.