The R Roundup : SEC & ETFs Start The Bullrun🐂 - Issue #123

In a landmark development, spot Bitcoin exchange-traded funds (ETFs) have received the green light and are set to commence trading this Thursday after securing final approval from the Securities and Exchange Commission (SEC).

As the crypto community eagerly awaits its debut, questions arise regarding the impending influx of billions into the market and the potential shift in regulatory dynamics.

Industry experts anticipate substantial inflows within the initial 24 to 48 hours, with projections ranging from significant to record-breaking. Anthony Rousseau, Head of Brokerage Solutions at TradeStation, emphasises the need to recognise the long-term implications as financial institutions, boasting over $100 trillion in assets under management, consider allocating funds to Bitcoin.

As the ETF race intensifies, fee reductions from big players like BlackRock and Ark Invest/21Shares underscore the competitive landscape. The question of readiness looms, with some speculating that not all proposed spot Bitcoin ETFs may launch on Thursday. Looking ahead, attention is already turning to potential spot Ether ETFs, with industry leaders like Fidelity and BlackRock having recently applied for approval.

This pivotal moment not only signifies a big win for the crypto market but also prompts speculation on whether the SEC's stance, shaped by Chair Gary Gensler, may evolve in the wake of growing institutional interest and court precedents.

Near Foundation Staff Trim💇‍♂️

Near Foundation, has announced a significant workforce reduction of approximately 40%, impacting 35 employees primarily in marketing, business development, and community teams.

This decision, disclosed by Near Protocol co-founder and Near Foundation CEO Illia Polosukhin, follows a comprehensive review indicating that the foundation's activities were not operating at peak effectiveness, potentially due to overextension.

Polosukhin emphasized a strategic consolidation to focus on a narrower, high-impact set of activities. The engineering team at Near contributor Pagoda remains unaffected, and the Near Foundation is committed to assisting displaced staff in finding new opportunities within the Near ecosystem or the broader crypto industry.

Despite the staff cuts, Polosukhin reassured stakeholders that the Near Foundation's treasury remains robust, boasting $285 million in cash, 305 million Near tokens ($1.1 billion), and $70 million in investments and loans. This financial stability positions the foundation to continue supporting the growth, development, and decentralization of the Near Protocol and its ecosystem.

The decision to downsize, according to Polosukhin, aligns with a longer-term decentralization plan. As the ecosystem evolves, the Near Foundation anticipates a reduction in its footprint, with various nodes assuming more activity in the network and across the ecosystem. Despite the staff adjustments, the Near Protocol has reported a robust year, hosting top web3 apps and experiencing a surge in daily users, indicative of its continued growth and relevance in the crypto space.

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Coinbase Teams Up With Yellow Card For African Expansion💳

Coinbase, in collaboration with African stablecoin exchange Yellow Card, is set to broaden its reach in emerging economies, starting with 20 countries across Africa.

The partnership, commencing in February, aims to provide over half of Africa's population access to USDC purchases through the Coinbase Wallet app. Furthermore, users will be able to send the stablecoin without fees via popular messaging apps like WhatsApp, iMessage, and Telegram.

Yellow Card users will have the additional benefit of buying USDC on Base, an Ethereum layer 2 incubated by Coinbase, offering cost-effective transactions. In a blog post, Coinbase highlighted the significance of the partnership in addressing economic challenges in high-inflation and remittance-dependent countries across Africa.

The move aligns with Coinbase's "Go Broad, Go Deep" strategy, emphasizing compliant international expansion. This development follows Coinbase's recent announcement about acquiring a MiFID-licensed entity to enhance its derivatives offerings in the European Union, showcasing the platform's commitment to strategic growth.

This partnership not only strengthens Coinbase's foothold in Africa but also exemplifies its dedication to fostering economic freedom and modern financial systems in regions that have historically lacked access. As Coinbase continues its global expansion, collaborations like these underscore the company's proactive approach to meeting the diverse needs of users worldwide.

Ripple To Repurchase $285 Million In Shares 💵 

Ripple Labs, renowned for its XRP coins, is set for a buyback of $285 million worth of shares from early investors and employees, valuing the company at an impressive $11.3 billion.

The tender offer values Ripple at $11.3 billion, with investors permitted to sell up to 6% of their stake, according to anonymous sources. Ripple, the privately held company, confirmed the tender offer and disclosed plans to allocate $500 million for the buyback. This amount will cover the conversion of restricted stock units into shares and associated taxes. Ripple intends to conduct regular share buybacks to enhance liquidity for investors, with CEO Brad Garlinghouse affirming the company's commitment to remaining private amid U.S. regulatory uncertainties.

Garlinghouse revealed that Ripple currently holds over $1 billion in cash and boasts a balance sheet featuring over $25 billion worth of crypto, predominantly in XRP coins. This strategic move follows a recent legal victory for Ripple against the U.S. Securities and Exchange Commission (SEC), where a U.S. District Judge ruled that XRP sales on public exchanges did not qualify as unregistered securities offerings.

Despite facing challenges during its legal battle, Ripple has persevered and continued to grow, emphasizing that 95% of its clientele comprises non-U.S. financial institutions. The company's recent acquisition of Switzerland-based crypto custody firm Metaco for $250 million further attests to its robust financial position and commitment to advancing cross-border transactions using XRP. As Ripple charts its course, its valuation and strategic moves underscore resilience and confidence in the cryptocurrency landscape.

A Week At RR📆

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