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⚡SEC's Approval of Bitcoin ETF✅

Croxroad

21 Oct 2023 — 5 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

🪙 SEC's Stance Softens

Coinbase's Chief Legal Officer, Paul Grewal, is feeling optimistic about the approval of a U.S. bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). In an interview with CNBC, he expressed hope that these ETF applications would be granted as they align with the law. Grewal's confidence is bolstered by a recent court ruling against the SEC, which determined that the regulator had no grounds to deny Grayscale's request to convert their GBTC bitcoin fund into an ETF. The SEC chose not to appeal this decision, signalling a potential green light for bitcoin-related ETFs in the near future. While Grewal didn't specify when this might happen, he emphasised that the decision ultimately rests with the SEC. Nonetheless, his outlook suggests that approval is on the horizon, given the robust proposals from reputable financial institutions in this space.

With the U.S. Court of Appeals emphasising that the SEC cannot reject Bitcoin ETF applications arbitrarily, Coinbase's Chief Legal Officer, Paul Grewal, is highly confident that the commission will fulfil its responsibilities by approving these applications. A Bitcoin ETF offers investors a convenient way to gain exposure to Bitcoin without the need to directly purchase the digital asset from an exchange, making it particularly attractive to retail investors seeking crypto exposure without actual ownership. If approved, this development would benefit Coinbase, the largest crypto exchange in the United States, as it is a common stock held in portfolios designed for crypto exposure. However, there are ongoing legal challenges related to Grayscale's attempt to convert GBTC into an ETF, involving allegations of investor fraud. Despite this, Grewal remains positive about the prospect of more Bitcoin ETFs gaining approval in the near future, as he believes the SEC will adhere to the law and apply it neutrally to pending applications.

Bitcoin has staged a notable comeback this year, surging by approximately 72% after enduring substantial declines in 2022. The resurgence is partly attributed to heightened investor interest, driven by expectations of the Federal Reserve winding down its interest rate hikes. Additionally, anticipation is building around the upcoming Bitcoin "halving" event, which will reduce rewards for miners, thereby limiting the coin's supply. However, despite these positive trends, trading volumes have waned as retail investors have become disinterested due to decreased market volatility and concerns stemming from the struggles of prominent industry players like FTX, BlockFi, and Three Arrows Capital. FTX, for instance, faced bankruptcy as investors withdrew due to liquidity concerns and is now embroiled in a high-profile legal battle involving alleged fraud. Paul Grewal, Chief Legal Officer at Coinbase, expressed optimism that such legal actions and regulatory efforts will hold bad actors accountable and help rekindle investor and consumer interest in the cryptocurrency space.

♻️ Hodl Hodl

In a captivating exploration of Bitcoin's influence in Argentina, Dany, a prominent figure in the Bitcoin sphere, shared illuminating insights during an exclusive interview on the Croxroad Podcast. This in-depth conversation unveiled key facets of Bitcoin's role in Argentina's economic landscape and its potential as a transformative force on the global stage.

Dany's discussions centred on several key themes, starting with Bitcoin's growing popularity in Argentina as a hedge against economic instability. The Argentine peso's volatility and history of devaluation have driven a significant uptick in Bitcoin adoption as individuals seek a more stable financial alternative.

Hodl Hodl, a peer-to-peer Bitcoin trading platform, emerged as a central topic. Dany highlighted the platform's commitment to decentralisation, echoing Bitcoin's foundational principles of self-custody and financial autonomy. Hodl Hodl aims to empower users with direct control over their transactions, promoting not only trading but also comprehensive financial education.

The Baltic Honeybadger conference, organised by Hodl Hodl, was also a highlight of the discussion. Dany emphasised how this event transcends the typical conference format by focusing on the broader socio-economic impact of Bitcoin. The conference serves as a platform for thought leaders to explore Bitcoin's role in personal freedom and financial sovereignty, challenging traditional financial paradigms.

Dany's vision extended beyond Argentina, envisioning Bitcoin as a global equaliser, challenging fiat currencies, and empowering individuals worldwide. His insights and optimism resonated with the broader crypto community, reinforcing Bitcoin's role as a beacon of hope for those seeking alternatives to traditional financial systems.

In the tapestry of Bitcoin's narrative, each thread—Hodl Hodl's empowering principles, the Baltic Honeybadger conference's focus on decentralisation, and Dany's vision of financial liberation—contributes to the broader story of a decentralised financial future. This narrative emphasises the pursuit of financial sovereignty and autonomy as Bitcoin continues to reshape the way we perceive and interact with finance.

To gain a deeper understanding of Dany's insights and Bitcoin's transformative journey, be sure to subscribe to the Croxroad Podcast's YouTube channel and access this exclusive interview. It offers a unique opportunity to hear from a prominent figure in the crypto world, making it a must-listen for anyone interested in the impact of Bitcoin in Argentina and beyond.

3️⃣ Three Inside Up

The Three Inside Up is a candlestick pattern that signals a potential shift from a downtrend to an uptrend. It's made up of three candles: first, a long bearish one, followed by a smaller bullish candle that fits within the range of the first candle. Finally, there's a third long bullish candle that solidifies the bullish reversal. The second candle's relationship to the first is similar to the bullish harami pattern. Once this pattern is complete, traders often consider taking a long position, anticipating a positive change in the market direction.