Bitget Newsletter 2

After only one week of being in charge, the newly elected Argentinian president, Javier Milei has begun revolutionizing the Argentinian economy by confirming he will shut down the country’s central bank. This bold step is more than a political statement; it's a potential catalyst for a significant shift in the global cryptocurrency market.

His radical plans, set to commence after his inauguration on December 10, include shutting down the Central Bank, dollarizing the economy, and exploring the potential adoption of cryptocurrencies like Bitcoin as alternative official currencies. These moves signal a dramatic shift from traditional economic models, positioning Argentina as a potential frontrunner in the global digital currency revolution.

How the Crypto Market Stands to Gain

• Global Legitimacy and Acceptance: Argentina's governmental endorsement of cryptocurrencies could be a game-changer. It could pave the way for broader acceptance and integration of digital currencies into mainstream financial systems globally.

• Reserve Diversification: The absence of a central bank could lead Argentina to diversify its national reserves, potentially increasing holdings in cryptocurrencies. This move could be a significant vote of confidence, bolstering the crypto market.

• Pioneering Regulatory Frameworks: Milei’s administration could develop cryptocurrency-friendly regulatory frameworks, encouraging investment and development in the sector and setting a precedent for other nations.

Narrowing GBTC Discount Signals Rising Optimism in Crypto Markets Amid ETF Hopes

The GBTC, known as the world's largest Bitcoin fund, has witnessed its discount to net asset value (NAV) narrow to levels not seen since July 2021. This shift indicates a growing confidence in the potential approval of Bitcoin spot exchange-traded funds (ETFs) in the United States, a move that could significantly impact the broader crypto market.

The Changing Landscape of GBTC

On the 24th of November 2023, the GBTC discount rate reached an 8.6% mark compared to its NAV, according to Ycharts data. This figure hasn’t been this close to its NAV since July 2021, signaling a potential shift in investor sentiment. Since February 2021, GBTC has been trading at a discount, plummeting to a record low of nearly 50% in December of the previous year. This recent contraction of the discount rate is a remarkable turnaround, reflecting renewed investor interest and confidence.

ETF Optimism Fuels Market Sentiments

The sharp decrease in NAV can be attributed to the growing anticipation surrounding the approval of Bitcoin spot ETFs in the U.S. Eric Balchunas, a prominent ETF analyst at Bloomberg, highlighted this optimism, noting that recent developments with Grayscale could be a significant factor. In its bid to transition GBTC from a closed-end fund to an ETF, Grayscale has been in active discussions with the U.S. Securities and Exchange Commission (SEC). A recent memo from the SEC revealed that these discussions involved proposed rule changes for listing and trading GBTC under NYSE Arca Rule 8.201-E.

Animoca Brands Become TON's Largest Validator

Hong Kong-based Animoca Brands, a leading venture capital firm specializing in gaming and metaverse projects, has become the largest validator on the TON (Telegram Open Network) blockchain, highlighting its strategic commitment to the Web3 ecosystem.

Strategic Investment in TON Ecosystem

Though specific terms remain undisclosed, Animoca Brands' investment in TON reflects its dedication to fostering innovation in the gaming and metaverse domains. The firm is notably backing TON Play, a gaming infrastructure project within the TON ecosystem. This move strengthens TON's position in the blockchain space and aligns with Animoca's focus on enhancing decentralized applications (DApps) in the gaming industry.

Supporting GameFi and Web3 Transition

Animoca Brands is extending its support beyond gaming infrastructure. The firm is actively involved in nurturing various GameFi projects on the TON blockchain. Co-founder and Executive Chairman Yat Siu emphasizes this investment as a crucial step in onboarding the next million Web3 users, facilitating a smooth transition from Web2 to Web3 technologies.

Telegram's Endorsement and Market Impact

This isn't the first major announcement to come out of TON. In a significant development last September, Telegram endorsed TON as its preferred blockchain for Web3-related developments. Considering Telegram's user base of 800 million, this endorsement positions TON as a key player in the blockchain space.

Binance Drama Continues

SEC's Persistent Probe into Binance.US

It’s been a week since Binance pleaded guilty, yet this saga seems to be just getting started. The U.S. Securities and Exchange Commission (SEC) continues its relentless investigation into Binance.US, the American arm of Binance, over allegations of fraudulent practices. The SEC is suggesting that Binance.US has a backdoor for accessing user assets and has been involved in market manipulation and securities law violations. The accusations include commingling user assets and diverting them to entities controlled by CZ and inflating Binance.US's trading volumes.

Further Developments

After resigning from his role as the CEO of Binance, CZ has additionally relinquished his position as the chairman of the board for Binance.US, the American subsidiary of the major exchange.

In a recent update shared by Binance.US on Tuesday, the company confirmed CZ's departure and discussed various issues linked to the significant settlement between its parent company and the Justice Department last week. The announcement stated, "CZ has chosen to step down from his position as the Chairman of our Board and has reassigned his voting rights via a proxy setup." Moving forward, CZ's involvement with Binance.US will be strictly financial, indicating his withdrawal from any decision-making or governance roles in the company.

To make things even worse for CZ the U.S. Department of Justice has raised alarms regarding the possibility of CZ fleeing the country, as noted in a recent legal document. In a filing last week, CZ's legal representatives maintained that his voluntary surrender to U.S. authorities and the significant bail he has offered indicate his commitment to face the legal proceedings, arguing against the notion of him being a flight risk. CZ, who holds citizenship in both the United Arab Emirates (UAE) and Canada and is not a U.S. national, willingly came to the U.S. to respond to the charges against him. His legal team insists that these voluntary actions should alleviate any worries about him attempting to flee the country, however, as it stands, CZ isn’t allowed to leave the country.

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