U.S. Bitcoin ETF Odds Rise as Grayscale Takes its Case against the SEC to Court
Grayscale is currently suing the SEC in court as it seeks approval to convert the $14 billion Bitcoin Trust into an ETF. Industry watchers were caught by surprise in the early moments of the case as two members of the D.C. Circuit panel of judges grilled SEC lawyers and raised doubts over their claims that Bitcoin markets can be manipulated. Over the course of the day, GBTC soared nearly 15% as investors priced in the rising odds of an ETF conversion. Recently, GBTC traded at a discount of nearly 50% to its net asset value so the increase is all from that discount narrowing. Even with Tuesday’s move, GBTC still trades at a 35% discount to NAV and the outcome is far from uncertain, but at least for now the prospect for a Bitcoin ETF has gotten a little bit brighter.
Kraken Looks Beyond Recent Settlement With Upcoming “Kraken Bank” Launch
Kraken is set to launch its bank amid current regulatory environment challenges and the recent closure of its staking services for clients in the United States. The bank launch comes during a tumultuous time for the industry, preceded by the collapse of FTX and numerous enforcement actions by officials. Despite Kraken’s recent $30 million settlement with the SEC, the company is moving forward with its plans to launch its bank. Kraken’s chief legal officer Marco Santori confirms that “Kraken Bank is very much on track to launch, very soon.”
Visa and Mastercard Press Pause On Crypto Push Amid Industry Setbacks
Visa and Mastercard are postponing plans to form new partnerships with crypto firms after a series of bankruptcies has shaken investors’ confidence. The payment companies are delaying the launch of certain crypto-related products and services until the regulatory environment, and overall market conditions improve. Both Visa and Mastercard had previously announced partnerships with crypto firms and established teams to explore blockchain technology. While this retreat underscores the ongoing uncertainty surrounding crypto regulation, it doesn’t appear to deter either firm’s overall crypto strategy or focus.
United States Gets 1st Nuclear-Powered Bitcoin Mining Facility With TeraWulf’s Nautilus
TeraWulf has launched the US’s first nuclear-powered Bitcoin mining facility, Nautilus Cryptomine. The facility has nearly 8,000 mining rigs online, representing a hash rate capacity of about 1 exahash per second (EH/s), and plans to add another 8,000 rigs to increase total capacity to 1.9 EH/s by May. TeraWulf secured a five-year power agreement at 2 cents per kilowatt hour (kWh), significantly reducing its energy costs compared to the US industrial average of 9 cents/kWh. TeraWulf uses more than 91% of zero-carbon energy, making ESG a core part of its business strategy in hopes of greening the mining industry.
