The amount of Ethereum held in accumulation addresses has surged past 19 million, according to the latest data from CryptoQuant. This figure has nearly doubled since January 2024, when it stood at 11.5 million. Analysts predict the number could surpass 20 million by the end of the year, as the approval of Ethereum Spot ETFs earlier this year has boosted confidence among both institutional and individual investors.
With this growing accumulation, the total value of these Ethereum holdings is projected to reach $80 billion by December 2024, with ETH priced at around $4,000. The increasing institutional interest in Ethereum is seen as a driving factor behind its mainstream adoption.
Currently, 71% of Ethereum holders are in profit, with over 74% having held their ETH for more than a year. Ethereum’s price recently reclaimed the $2,700 mark, marking a 10% rise over the past week.
A recent paper from the European Central Bank has sparked controversy by claiming that Bitcoin should either be heavily regulated or banned altogether to prevent older holders from profiting at the expense of new investors. Published on 12 October 2024, the report suggests that those who purchased Bitcoin early are exploiting newer buyers, a practice common to all financial markets. The authors argue that without intervention, the rising price of Bitcoin could lead to social unrest.
The paper also attempts to link Bitcoin to criminal activity, despite a US Treasury report from May 2024 confirming that fiat cash remains the primary tool for illicit transactions. Moreover, the authors neglect the fact that Bitcoin was created as a response to government-induced inflation, which continues to erode the value of fiat currencies globally.
Bitcoin’s pseudonymous creator, Satoshi Nakamoto, designed the digital asset as a decentralised method of payment and a hedge against monetary mismanagement. With rising public sector debt in both the UK and the US, critics argue that Bitcoin’s growing popularity is a direct reaction to the failings of traditional financial systems.
The European Union is set to enforce new common regulations for crypto asset service providers (CASPs) under the Markets in Crypto-Assets (MiCA) framework by 30 December, replacing national laws. The Cyprus Securities and Exchange Commission (CySEC) has already begun freezing CASP applications under Cypriot law as of 17 October, advising market participants to prepare for the upcoming changes.
CASPs that register under national regulations before the December deadline can continue to operate until July 2026, unless they receive or are denied MiCA authorisation before then. The transition will bring new regulatory standards, and CASPs must comply with the European Commission’s guidelines, which are still pending final publication. In the meantime, the European Securities and Markets Authority (ESMA) has issued draft standards for CASPs to follow.
Other European regulators, such as the Dutch Authority for the Financial Markets, are already investigating potential fraud and manipulation schemes before MiCA takes full effect. The new regulations aim to bring greater transparency and stricter oversight to the crypto market across the EU.
The Central Bank of the UAE has given preliminary approval to AED Stablecoin, positioning it to be the first regulated stablecoin pegged to the dirham in the country. The move follows the bank’s recent licensing framework, which restricts crypto payments to licensed dirham-pegged tokens, easing previous concerns over potential restrictions on crypto use.
If fully licensed, AED Stablecoin’s AE Coin could become a local trading pair for cryptocurrencies and be used by merchants for payments. Issuers of the stablecoin must back it with cash reserves held in UAE banks or a combination of cash and government bonds.
The UAE’s favourable regulatory environment has been attracting major players in the crypto space. While AED Stablecoin faces competition from Tether, OKX has launched a new trading platform, and M2 has introduced a system allowing direct dirham conversions to Bitcoin and Ether.
A 25-year-old man from Alabama has been arrested for hacking the US Securities and Exchange Commission’s X account in a scheme to manipulate Bitcoin prices. The incident, which occurred in January, involved a false post on the SEC’s account claiming the approval of Bitcoin exchange-traded funds, briefly causing Bitcoin’s price to rise by $1,000. The SEC swiftly deleted the post and denied the message, but the hack sparked criticism over security vulnerabilities on X.
The suspect, Eric Council Jr., used a SIM-swapping technique to access the account and later received Bitcoin as payment for his involvement in the hack. Following the incident, he reportedly searched online for information on how to avoid FBI detection. Council now faces charges of conspiracy to commit aggravated identity theft and access device fraud.
The SEC expressed its gratitude to law enforcement for their prompt action in the case, while the incident reignited concerns over the security of social media platforms, particularly since X’s acquisition by Elon Musk.
Grayscale, a prominent crypto asset manager, has officially filed with the United States Securities and Exchange Commission (SEC) to convert its $520 million Digital Large Cap Fund into an exchange-traded fund (ETF). The New York Stock Exchange (NYSE) submitted the request on Grayscale’s behalf in a 14 October filing. This move aims to simplify the buying and selling of shares for investors by creating a spot ETF that holds the underlying assets rather than relying on futures contracts.
Currently managing over $524 million in assets, the fund is heavily weighted in Bitcoin, accounting for 76% of its portfolio, with Ether making up 18%. The conversion comes on the heels of the SEC’s changing stance on crypto ETFs, following a favourable court ruling for Grayscale earlier this year. Previously, the SEC had rejected all applications for spot crypto ETFs, but the new developments indicate a shift in regulatory approach.
Investors have been offloading shares following the ETF conversions of Grayscale’s Bitcoin Trust and Ethereum Trust, with notable outflows recorded. Since the conversion to ETFs, Grayscale’s Bitcoin fund has seen $21 billion in outflows, while its Ethereum ETF has recorded $3 billion. Meanwhile, Grayscale continues to expand its offerings, recently adding 35 altcoins to its consideration list for future investment products.
Cryptocurrency investment products saw a surge in inflows during 5–11 October, totalling $407 million, with Bitcoin leading the charge. Bitcoin investment products attracted $419 million, while short-Bitcoin investments saw outflows of $6.3 million. This significant uptick comes as political developments in the US, particularly polls favouring Republicans in the upcoming elections, appear to have boosted market confidence in Bitcoin.
CoinShares’ head of research, James Butterfill, highlighted the political shift as the main driver behind the increase in crypto inflows, noting that economic data had little impact on stemming outflows from the previous week. Investors seem to view Republicans as more supportive of digital assets, leading to a rise in Bitcoin’s price, which climbed by more than 2%.
Meanwhile, blockchain ETFs saw their largest weekly inflows of 2024, totalling $34 million. However, Ethereum continued its trend of outflows, with $9.8 million withdrawn from Ether products last week, indicating a contrast in investor sentiment between Bitcoin and Ethereum.
World Liberty Financial, a crypto project backed by Donald Trump, has secured over 100,000 signups ahead of its WLFI token launch on 15 October. The WLFI token, built on Ethereum as an ERC-20 asset, will serve as the governance token for the decentralised finance (DeFi) platform, allowing users to borrow, lend, interact with liquidity pools, and transact with stablecoins. In the US, however, only accredited investors will have access.
The platform’s team, including Zak Folkman, reiterated its plans to raise $300 million through the WLFI token sale, aiming for a $1.5 billion valuation. The project will initially launch on Ethereum with plans to expand to layer-2 networks. Former President Trump has pledged to turn the US into the world’s ‘crypto capital’ if elected in November, as he leads Kamala Harris by 9% on the Polymarket betting platform.
Stablecoins are rapidly emerging as a vital solution for businesses seeking to streamline payment processes, with Singapore recently hitting a milestone of $1 billion in stablecoin payment value. As a stable alternative to both traditional fiat and volatile cryptocurrencies, stablecoins are increasingly being adopted for everyday transactions, particularly within the e-commerce sector. Recent studies indicate that 64% of consumers are open to using cryptocurrencies and stablecoins for payments, with a growing number of retailers planning to accept them within the next couple of years.
These digital currencies, tethered to stable assets like the US dollar or Euro, offer notable advantages, such as faster transactions and reduced volatility. The stability allows businesses to mitigate the risks associated with sudden price fluctuations, making it easier to lock in profits. Furthermore, with stablecoins expanding across various blockchain networks, including faster and more cost-effective options like Polygon and Solana, they are becoming more accessible to a wider range of businesses. This shift not only simplifies payment processing but also enhances cross-border transactions by eliminating currency conversion hassles.
As regulations around cryptocurrencies continue to evolve, stablecoins are well-positioned to lead the charge in the transformation of financial settlements. With their increasing normalisation in markets like Singapore, these digital assets are set to play a crucial role in the future of e-commerce. The potential for stablecoins to overcome many of the challenges faced by traditional payment systems suggests that they will soon become a mainstream choice for businesses worldwide, ushering in a new era of digital financial solutions.
Australia, Canada, and Colombia have taken a step back from launching central bank digital currencies (CBDCs), raising concerns about their necessity and potential risks. While many governments push forward with digital currency plans, these countries’ central banks argue that existing payment systems already serve the public well. They also fear CBDCs could destabilise the financial system and accelerate the decline of cash.
The Reserve Bank of Australia and the Bank of Canada have both scaled down their CBDC projects, citing the need for further research. Colombia’s central bank similarly expressed doubts about the need for a CBDC, whether retail or wholesale. The decision reflects broader concerns within the financial industry, as critics warn that CBDCs could infringe on privacy and give governments excessive control over individual accounts.
Although CBDCs are still advancing in other parts of the world, the recent statements signal that their implementation may not be as inevitable as once believed. Central banks remain cautious, and the debate over the future of digital currencies continues.
