Author: Faith Yakubu

On Wednesday, Grayscale’s bitcoin (BTC) exchange-traded fund (ETF) witnessed an unprecedented daily outflow of approximately $18 million, marking a significant departure from its usual outflow patterns since its inception in January. Reports from Bitmex Research and Farside Investors revealed this record-low figure.

This notable development comes shortly after Grayscale CEO Michael Sonnenshein indicated that outflows from the Grayscale Bitcoin Trust (GBTC) are approaching an “equilibrium,” suggesting that the selling pressure associated with settlements of bankrupt crypto firms like FTX has largely subsided.

Analysts at Coinbase Institutional have speculated that the recent uptick in GBTC selling could be attributed, at least in part, to Genesis selling shares as part of its bankruptcy proceedings.

Since its launch, the GBTC product has witnessed a staggering $15 billion in bitcoin outflows and has experienced consistent outflows almost every week, contributing to downward pressure on the asset.

Furthermore, the ETF imposes the highest annual fees among its counterparts, standing at 1.5% of holdings, compared to rates as low as 0.19% for Franklin Templeton’s EZBC.

Despite these challenges, bitcoin continues to trade resiliently, hovering just above $70,600 during European morning hours, reflecting a 2.2% increase in the past 24 hours. The broader CoinDesk 20 index also saw a 1.7% rise.

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Bitfinex Securities El Salvador S.A. de C.V., a leading tokenized securities platform, is driving an innovative initiative to finance the construction of a Hampton by Hilton hotel complex at El Salvador International Airport through a tokenized debt issuance.

The token, dubbed HILSV, will be pegged to the U.S. dollar and tether (USDT) and will be issued on the Liquid Network, a bitcoin sidechain, as detailed in a recent press release.

This groundbreaking tokenized debt offering, marked by the launch of HILSV, signifies a significant milestone in the development of El Salvador’s capital markets. Bitfinex Securities has partnered with Inversiones Laguardia (HILSV), a reputable entity in El Salvador, to oversee the tokenized debt, with Ditobanx managing the tokenization and structuring of the transaction on the Liquid blockchain.

HILSV seeks to raise $6.25 million and will offer a 10% coupon over five years, with a minimum investment threshold of $1,000. Inversiones Laguardia S.A. de C.V. will facilitate the issuance of the tokenized debt.

The raised funds will be allocated towards the development of a 4,484-square-meter hotel complex, boasting 80 rooms, five commercial spaces, a swimming pool, restaurants, and various amenities across five levels. While Hilton Hotels is associated as a franchisor, it does not endorse any offering and bears no responsibility.

Despite Hilton’s limited involvement, the project is anticipated to create significant economic opportunities, with approximately 1,000 jobs during construction and up to 5,000 direct and indirect jobs upon operationalization.

Paolo Ardoinio, Bitfinex Securities CTO, hailed the launch of HILSV as a pivotal moment for El Salvador’s capital market, offering investors access to previously unavailable asset classes while enabling issuers to tap into new funding sources.

Roberto Laguardia, President of Inversiones Laguardia, emphasized the transformative impact of the project, leveraging digital asset laws to unlock capital markets and foster economic growth.

Bitfinex Securities made history in January by becoming the first regulated entity to secure a license for operation in El Salvador under the nation’s Digital Asset Securities Law. This landmark achievement aligns with the growing demand for regulated investment avenues, following the successful introduction of U.S. spot bitcoin exchange-traded funds.

Building on its momentum, Bitfinex Securities is set to unveil a series of financial asset issuances in the first half of this year, following the success of its tokenized bond offering in Kazakhstan.

El Salvador’s proactive stance on crypto adoption, including granting Bitcoin legal tender status and launching the “Adopting El Salvador Freedom Visa” program, further underscores its commitment to fostering innovation and financial inclusion.

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Cryptocurrency exchange Luno has become one of the inaugural firms to secure a license from South Africa’s Financial Services Conduct Authority (FSCA), solidifying its status as a recognized financial services provider within the country.

The granting of the financial services provider license to Luno comes in the wake of the FSCA’s classification of crypto assets as financial products under the Financial Advisory and Intermediary Services Act of 2002 (FAIS).

Expressing enthusiasm about this milestone, Christo de Wit, Luno’s South Africa country manager, underscored the significance of being the premier licensed crypto asset service provider in the nation. He emphasized Luno’s decade-long commitment to the crypto market and its dedication to ensuring compliance, safety, and security for its clientele.

Luno, initially launched in 2013, operates as a crypto exchange alongside offering a cryptocurrency investment app, extending its services to over 40 countries across Europe, Africa, Asia, and Australia.

The FSCA’s move to authorize operating licenses for 59 cryptocurrency exchanges signifies a broader regulatory framework taking shape. Out of over 300 South African crypto providers seeking permits, only 59 have met the FSCA’s criteria for approval. As per regulatory mandates, digital asset exchanges must obtain permits to conduct operations within the country.

In alignment with its stance on regulatory oversight, the FSCA had previously classified cryptocurrency assets as financial products in 2022, underscoring the necessity for regulation to safeguard financial consumers and combat illicit financial activities like money laundering and terrorism financing. Exchanges were given until November 30 to apply for licenses, failing which they risked enforcement actions.

The FSCA’s approach to regulating crypto assets, outlined in 2021, emphasizes a phased and structured integration into the South African regulatory landscape. With a surge in retail interest in crypto assets, the FSCA remains vigilant against instances of consumer abuse, fraud, and market misconduct, both domestically and internationally. Recent media reports have highlighted schemes exploiting crypto assets, further reinforcing the imperative for regulatory intervention to uphold market integrity.

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Auradine, a web infrastructure startup, and Bitcoin miner manufacturer, has secured $80 million in a Series B funding round as it prepares for the upcoming Bitcoin halving event and the shipment of its Teraflux Bitcoin miners.

The funding round, described as “oversubscribed,” saw participation from a range of investors, including StepStone Group, Top Tier Capital Partners, MVP Ventures, Maverick Capital, Celesta Capital, Mayfield Fund, and Marathon Digital, among others. According to Auradine, the round exceeded its initial target of $70 million due to heightened investor interest.

CEO and co-founder Rajiv Khemani disclosed that the Series B round comprised $60 million in equity and $20 million in debt, mirroring the structure of Auradine’s previous Series A round, which totaled $81 million. While Khemani refrained from commenting on the company’s current valuation, he expressed confidence in Auradine’s trajectory towards potentially reaching a $1 billion valuation in the future.

Auradine’s Series B funding comes ahead of the anticipated Bitcoin halving event, which is expected to occur next week. Khemani noted that the company has already secured $80 million in bookings and boasts an order pipeline exceeding $200 million, driven by robust demand for its Teraflux bitcoin miners.

With a focus on energy efficiency and demand response, Auradine anticipates that its products, particularly its EnergyTune capability and energy-efficient silicon, will align well with post-halving market dynamics.

Established in 2022 and headquartered in California, Auradine introduced its Teraflux bitcoin miners in November last year. The company has since supplied its machines to over 30 prominent data-center-scale miners. Notably, Auradine emphasizes the importance of designing its bitcoin miners in the U.S. to ensure decentralized supply and enhance national security amid geopolitical challenges.

While Bitcoin miners constitute Auradine’s inaugural product line, the company is exploring opportunities to expand into other sectors, including blockchain and artificial intelligence. Khemani revealed that Auradine is actively developing additional product lines within these domains, aiming to deliver innovative solutions soon.

Currently employing approximately 75 individuals, Auradine plans to expand its workforce, particularly in research and development and supply chain operations, to support its growth initiatives.

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International cryptocurrency exchange platform Coinbase has introduced an easier way for UK customers to engage in cryptocurrency transactions with the launch of Apple Pay integration.

The announcement, made on Wednesday, reflects Coinbase’s commitment to fostering greater crypto adoption in the UK.

Apple Pay Integration Facilitates Crypto Transactions in the UK

The UK holds significant importance for Coinbase, witnessing over $1.39 billion in cryptocurrency gains last year alone. The introduction of Apple Pay integration is poised to streamline the process of buying and selling cryptocurrencies for UK residents.

Daniel Seifert, Coinbase’s Country Director for the U.K. and Vice President, of EMEA, expressed pride in the announcement, emphasizing that the integration allows UK users to leverage Apple Pay for easy, secure, and private cryptocurrency transactions online and in-app. Seifert highlighted the alignment of this move with Coinbase’s overarching goal of enhancing accessibility to digital assets in the UK.

Challenges and Opportunities in the Crypto Market

The launch of Apple Pay coincides with a period of challenges in the crypto market. Coinbase’s latest market commentary report, released on April 5, highlighted a slowdown in crypto volumes as the market seeks new narratives to drive further growth.

However, Coinbase remains optimistic about the market’s prospects, particularly with the upcoming Bitcoin halving event scheduled for April 20 or 21. This event will witness a reduction in the block reward for Bitcoin miners, potentially leading to a decrease in Bitcoin supply and an associated increase in its price.

Positive Developments for Coinbase and the UK Crypto Market

Both the introduction of Apple Pay integration and the impending Bitcoin halving event are viewed as positive developments for Coinbase and the UK crypto market at large.

With its strategic position, Coinbase stands to benefit from the growing interest in cryptocurrencies within the UK. The integration of Apple Pay represents a significant step forward in enhancing accessibility to cryptocurrencies for UK residents, aligning with Coinbase’s mission to make digital assets more accessible globally.

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