In a dynamic Thursday for the crypto sector, several significant developments are impacting players across various markets. The latest episode of The Block’s podcast, Layer One, featured insightful dialogues on the intersection of poker strategy and blockchain thinking, with guest contributions from leaders in the financial technology space.
Bitwise made waves by launching its U.S. spot XRP ETF, trading under the ticker XRP. To entice investors, the firm has waived the 0.34% management fee for the first month on the initial $500 million in assets. Chief Investment Officer Matt Hougan highlighted XRP’s long-standing operational history, low cost, and robust community as key factors behind its appeal. With this launch, Bitwise becomes the second U.S. firm to introduce a pure spot XRP product, following Canary Capital’s XRPC, which has already attracted $292.6 million in net inflows. Notably, Grayscale and Franklin Templeton are poised to enter the market next week with their own XRP offerings, alongside Grayscale’s anticipated Dogecoin ETF.
The market has seen a surge in altcoin ETFs recently, with Solana leading the charge, boasting six spot products that have collectively pulled in $476 million since their rollout in late October. Additionally, 21Shares has launched a leveraged Dogecoin ETF, coinciding with FalconX’s acquisition of the company.
In another noteworthy development, RippleX’s Head of Engineering, J. Ayo Akinyele, and outgoing CTO David Schwartz discussed the potential for native XRP staking during a recent panel. They acknowledged that while implementing such a feature could provide holders a more direct role in governance, it would also require managing complex dynamics concerning fairness and distribution within the XRP Ledger. Akinyele mentioned that significant adjustments to the fee-burning model would be essential for fostering a sustainable rewards pool, while Schwartz shared exploratory ideas about potential consensus mechanisms, noting their current impracticality.
Legal battles are also making headlines, as Core Foundation secured an injunction from a Cayman Islands court against Maple Finance, blocking the launch of a rival bitcoin yield product. The court ruled against Maple following allegations of misusing confidential information and violating an exclusivity agreement with Core. Maple, however, has denied any wrongdoing and maintained that its broader business activities remain unaffected.
Cipher Mining is making strategic moves with its full-site lease acquisition from Fluidstack, which pertains to its 300-MW Barber Lake campus. This agreement is projected to generate $830 million in contracted revenue and potentially up to $2 billion if optional extensions come into play. Furthermore, Google has increased its financial guarantee of Fluidstack’s commitments by $333 million, as Cipher seeks to raise the same amount through new senior secured notes to aid in the expansion of its West Texas operations.
Meanwhile, Coinbase has expanded its offerings by allowing verified U.S. users (excluding those in New York) to borrow up to $1 million in USDC using their ETH as collateral through Morpho. This initiative aims to meet the growing demand for crypto-collateralized loans. Coinbase’s previous BTC-backed credit product had already facilitated over $1.25 billion in borrowing, signaling a strong interest among users seeking liquidity without incurring taxable events.
Looking ahead, notable speeches are slated, with ECB President Christine Lagarde set to address the audience early Friday, followed by U.S. FOMC member John Williams. The ongoing Devconnect event in Buenos Aires continues to be a focal point for blockchain enthusiasts and professionals alike.
As always, keep an eye on The Block’s daily digest for the latest updates and insights from the evolving digital asset landscape.
