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Delays Hit Ethereum ETFs | Recap of Crypto News This Week – Mar 11, 2024

Bitcoin reaches a new peak, Ethereum fees surge amidst memecoin frenzy, and speculation arises about Tesla’s Bitcoin acquisitions. These and more stories in the world of cryptocurrency this week.

Bitcoin Hits Record High

Bitcoin experienced a surge to all-time highs amid a turbulent week of trading; initially surpassing $69,200 before a sharp dip of 10%. However, by the end of the week, Bitcoin had recovered and briefly crossed the $70,000 mark for the first time. The influx of billions into Bitcoin ETFs and the anticipation of the upcoming halving event continue to drive excitement among investors. Additionally, Ether reached $4,000 for the first time in over two years, fueled by growing speculation surrounding spot Ether ETFs.

Fees Spike Due to Memecoin Craze

The memecoin frenzy is back as Ethereum-based meme tokens like Pepe, Shiba Inu, and Floki more than doubled in value. Shiba Inu led the way, with its market cap climbing to over $25 billion. Its growth can be attributed to increased token burning and the anticipated Shibarium network upgrades. The surge in meme coins has caused Ethereum gas fees to hit a nearly 2-year high, resulting in challenges for transfers.

Asian FOMO Boosts Bitcoin

Asian investors, particularly from South Korea, China, and Hong Kong, have been the primary driving force behind Bitcoin’s recent surge, accounting for approximately 70% of trading volume. Asia contributed $800 billion of the total $1.17 trillion in Bitcoin traded in February. This trend indicates a significant FOMO effect in the region, as evidenced by a 12x increase in “bitcoin” searches on the WeChat messaging app.

Ethereum ETFs Postponed

The US SEC has postponed decisions on two new crypto products, including Ethereum ETF applications. This delay has initiated a public comments period to gather opinions on whether arguments supporting approved Bitcoin ETFs are applicable to Ethereum and the potential manipulation risks. Additionally, the SEC has deferred a decision on allowing exchanges to list and trade spot bitcoin ETF options.

BlackRock’s Move Towards Bitcoin ETFs

BlackRock, the world’s largest asset manager, has updated its filing with the SEC to indicate its intention to purchase spot Bitcoin ETFs for its funds. The BlackRock Global Allocation Fund and Strategic Income Opportunities Fund aim to generate investment returns through a mix of assets, including Bitcoin.

FTX Resolves Dispute with BlockFi

Bankrupt firms BlockFi and FTX have reached an agreement to settle their legal dispute, with FTX agreeing to pay $874 million to BlockFi. This includes settling customer claims against FTX.com and Alameda Research. The resolution is viewed positively as it will reduce litigation expenses in BlockFi’s bankruptcy proceedings.

Spain Halts Worldcoin Project

Spain has halted the Worldcoin crypto project, co-founded by OpenAI CEO Sam Altman, due to privacy concerns. The Spanish government’s data protection agency has ordered Worldcoin to suspend activities in the country for three months, emphasizing the risks associated with processing sensitive biometric data in exchange for WLD tokens.

Is Tesla Adding to its Bitcoin Holdings?

Rumors swirl around Tesla’s Bitcoin holdings, as its BTC wallet currently holds approximately 11,509 bitcoins, around 1,800 more than reported in its last earnings report. Some speculate a recent Bitcoin purchase announcement during Tesla’s upcoming earnings call, while others consider the possibility of an accounting error. Tesla initially bought $1.5 billion in Bitcoin in February 2021, later selling 75% of its holdings in 2022.

That’s the roundup for this week in the world of crypto. Stay tuned for more updates next week.

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