The Crypto Compass Issue #52

Hello readers,

In this issue, we start by discussing the interesting developments in BlackRock's pursuit of launching a spot Bitcoin ETF, involving key financial players like JPMorgan, despite the latter's CEO’s skeptical views on crypto. We then shift our focus to the major security breach at Orbit Chain's bridge protocol, which led to a significant loss of cryptocurrencies. Next, we cover MicroStrategy's ongoing commitment to Bitcoin, as it further expands its already substantial investment in the digital currency. Finally, the stringent actions of India's Financial Intelligence Unit against nine major cryptocurrency exchanges, indicating a move towards tighter regulatory oversight.

JPMorgan and BlackRock Navigate Crypto ETF Landscape Amid Regulatory Uncertainty

Despite JPMorgan CEO Jamie Dimon's long-standing criticism of cryptocurrencies, including a recent statement to Sen. Elizabeth Warren about shutting down crypto if possible, JPMorgan Securities LLC has been named as an authorized participant in BlackRock's proposed spot bitcoin ETF. BlackRock's recent SEC filing, which includes JPMorgan and Jane Street Capital as participants, indicates a significant move in the crypto ETF space, drawing attention and humor in the crypto community due to Dimon's stance.

As the SEC deadline for approving BlackRock's bitcoin ETF nears, discussions about the ETF's structure, particularly the cash redemption model, intensify. Analysts view BlackRock's proactive steps and the involvement of major financial players as bullish signs for the ETF's approval. Valkyrie and VanEck have also made similar moves, indicating a competitive race in the burgeoning spot bitcoin ETF market. The industry remains hopeful, especially after recent court rulings that may influence the SEC's decision on approving a spot bitcoin ETF.

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Orbit Chain Bridge Suffers $81.5 Million Cryptocurrency Hack

Orbit Chain, known for its cross-chain bridge protocol, Orbit Bridge, has reportedly been compromised, resulting in the loss of $81.5 million in various cryptocurrencies and stablecoins. The hack involved five separate transactions to different wallets, including $50 million in stablecoins (30 million Tether, 10 million DAI, and 10 million USDC), 231 wrapped Bitcoin (wBTC) worth approximately $10 million, and 9,500 Ethereum (ETH) valued around $21.5 million. The incident was first identified by a user named Kgjr. Orbit Bridge is closely linked to the Klaytn ecosystem, with the majority of its top tokens being Orbit Bridge wrapped assets. The exact details of the hack remain unclear.

MicroStrategy Expands Bitcoin Portfolio

MicroStrategy has significantly increased its Bitcoin investment, purchasing an additional 14,620 bitcoins for $615.7 million, at an average price of $42,110 each. This acquisition, made between November 30 and December 26, brings its total holdings to 189,150 bitcoins, valued at $8.1 billion. The company's overall investment stands at $5.89 billion. Additionally, MicroStrategy recently sold 1 million shares, raising $610 million.

Happenings of the week

• Bitcoin Starts the New Year Rising Past $45K, Highest Level Since April 2022

• Vitalik Buterin says original Web3 visions have ‘faded into the background’

• Vitalik Buterin shares updated 2024 roadmap for Ethereum

• Singapore PM Lee issues warning after deepfake video of him ‘promoting’ crypto investment emerges

India's Financial Intelligence Unit Cracks Down on Nine Crypto Exchanges for Non-Compliance

India's Financial Intelligence Unit (FIU) has issued compliance notices to nine prominent offshore cryptocurrency exchanges, including Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex. The FIU is seeking to block their websites in India through the Ministry of Electronics and Information Technology, citing their illegal operation under the country's Prevention of Money Laundering Act. These Virtual Digital Asset Service Providers (VDA SPs) are required to register with the FIU as Reporting Entities and comply with specific obligations, which they have reportedly failed to do.

Stay tuned for more updates next week! If you haven't yet, hit that subscribe button to ensure you never miss an issue. Found value in this edition? Please consider sharing it with your friends, colleagues, and fellow crypto enthusiasts. Together, let's navigate the world of crypto with clarity and insight!