About 12 hours ago, we saw Bitcoin‘s price test the $41,800 level, but the leading cryptocurrency quickly recovered. As of the time of writing, BTC is trading at $42,670. Today, U.S. markets are closed, and we will see how ETF volumes have started the week tomorrow. For now, caution prevails among investors. So, what happened today?
Paying Rent with Bitcoin
Cryptocurrencies have established themselves as a new asset class with the U.S.’s spot Bitcoin ETF. This also paves the way for Bitcoin’s use for various purposes. An Argentine landlord battling high inflation found a solution in creating a Bitcoin-based rental contract. This situation shows how realistic the implication of BlackRock CEO’s comment that “it could be a refuge for people worried about their money devaluing” is.
In Rosario, Argentina’s third most populous city, the first Bitcoin-based rental agreement between a landlord and a tenant has been enacted. This contract, the first of its kind in Argentina, became possible due to a change in legislation by the new presidential administration.
BlackRock Releases Bitcoin Ad
On January 11th, investment giant BlackRock released its first advertisement for its own spot Bitcoin ETF, IBIT. We had seen how competition heated up in management fees, and this will also make its presence felt in marketing. The advertisement consists of approximately a two-minute video summarizing Bitcoin’s value proposition and how investors can invest in the new ETF, presented by a BlackRock executive.
Gensler Acknowledges Court’s Influence
Following the victory of GBTC, the SEC was determined to maintain its stubborn stance, but U.S. politicians sternly reminded the SEC that it too must comply with the law. Gary Gensler, the Chairman of the United States Securities and Exchange Commission (SEC), admitted that Grayscale’s legal victory against the regulator in August 2023 was a main catalyst in ETF approvals.
“We have denied these for years. But something changed. I am someone who believes in the rule of law and respect for the courts, and we are moving forward taking into account the new court decision. I think this is the most sustainable way forward.”
FTX Creditors Left Disadvantaged
FTX is offering to pay its customers in USD based on cryptocurrency prices at the time of FTX’s bankruptcy filing in November 2022. However, investors whose cryptocurrencies have appreciated in value want to be paid in the form of crypto. Bitcoin, Ethereum, SOL are among the biggest assets affected. SOL Coin alone climbed from $8 to $126, and the price of BTC held strong from $15,500 to the brink of $49,000.
