The crypto world is abuzz with anticipation as the institutional flow into Bitcoin exchange-traded funds (ETFs) is poised to accelerate further in the second half of 2024. Industry heavyweights like Bitwise have been engaged in "serious due diligence" discussions with titans representing "trillions of dollars in assets," all seeking to add or increase their exposure to Bitcoin ETFs in the coming months.

Matt Hougan, Bitwise's esteemed Chief Investment Officer, shared insights in a memo to investors, revealing that a diverse array of institutional players – ranging from individual investors and family offices to hedge funds and venture capital firms – are poised to significantly increase their stakes in spot Bitcoin ETFs by the end of June.

The allure of Bitcoin ETFs extends far beyond domestic shores, with overseas investors also expressing keen interest in tapping into this burgeoning market. In a groundbreaking move, Thailand's Securities and Exchange Commission has reportedly amended its rules to allow private funds to invest in spot Bitcoin ETFs traded on United States exchanges. Brazil, too, has followed suit, enabling investors to gain exposure to BlackRock's ETF through depositary receipts, underscoring the global appetite for this innovative investment vehicle.

However, the Bitcoin hype alone may not be sufficient to buoy Coinbase's cash flow. In a strategic move, the exchange giant plans to raise $1 billion through senior convertible notes, with the funds earmarked for repaying previous debt issuances. This capital injection is poised to bolster Coinbase's financial flexibility as it navigates the dynamic crypto landscape.

Alongside the buzz surrounding Bitcoin, this week's Crypto Biz explores the outlook for Ether ETFs, Ubisoft's foray into blockchain validation, Coinbase's challenges, and the global banking sector's embrace of distributed ledger technology.

SEC Radio Silence on Ethereum ETF 'not a Good Sign' – Bloomberg Analyst

Amidst the anticipation surrounding Ether ETFs, a lack of communication from the U.S. Securities and Exchange Commission (SEC) toward issuers has raised concerns among industry analysts. Eric Balchunas, a renowned Bloomberg ETF analyst, shared his perspective with Cointelegraph, downgrading the chances of Ether ETF approval to just 35% by May.

Balchunas highlighted that with less than 70 days remaining until the final deadline, the absence of any contact or comments from the SEC is "not a good sign." Moreover, he pointed to SEC Chair Gary Gensler's stance on Ether, arguing that Gensler still views the cryptocurrency as a security, potentially complicating the approval process.

Ubisoft Joins XPLA Blockchain as a Node Validator

In a significant development for the gaming industry, Ubisoft, the creative force behind hit franchises like Assassin's Creed and Far Cry, has joined the XPLA blockchain as a node validator. According to a press release from XPLA, Ubisoft will "actively participate in governance proposal decisions" as part of this partnership.

France-based Ubisoft is a gaming juggernaut, with its games having sold a staggering combined total of around 800 million titles. Boasting a market capitalization of nearly $2.75 billion, Ubisoft is the second-largest gaming company in Europe, behind only Poland's CD Projekt Red ($2.99 billion). Some of the most popular intellectual properties with games on the XPLA blockchain include The Walking Dead: All-Stars and Summoners War: Chronicles.

Coinbase Shares Dip After-Hours as Exchange Plans $1 Billion Convertible Notes Offer

In a move aimed at fortifying its financial position, Coinbase plans to raise $1 billion from senior convertible notes, with the proceeds earmarked for repaying debts and "general corporate purposes." The notes, which will be privately offered to eligible institutional buyers, must be repaid by April 1, 2030, unless earlier repurchased, redeemed, or converted, as per the firm's March 12 blog post.

These notes hold seniority over common stock, granting holders priority in the event of bankruptcy or liquidation. Coinbase intends to utilize the funds raised to repay at maturity its outstanding convertible senior notes due in 2026, 2028, and 2031, which bear respective interests of 0.50%, 3.375%, and 3.625%.

Global Banks Participate in Large-Scale Blockchain Pilot Test

In a testament to the growing adoption of blockchain technology within the financial sector, major institutions, including Goldman Sachs, BNY Mellon, and Cboe Global Markets, have successfully completed a large-scale pilot test leveraging distributed ledger technology.

Institutional investors executed over 350 simulated transactions across various domains, including tokenized assets, fund registry, digital cash, repo, securities lending, and margin management. These transactions were facilitated on the Canton network, a pioneering platform launched in May 2023 by startup Digital Asset Holdings.

The pilot test witnessed the participation of a diverse array of industry players, including 15 asset managers, 13 banks, four custodians, three exchanges, and the stablecoin issuer Paxos Trust. This collaborative effort underscores the financial sector's commitment to exploring and harnessing the potential of blockchain technology.

As the crypto landscape continues to evolve, industry players are adapting and positioning themselves to capitalize on emerging opportunities. From the institutional embrace of Bitcoin ETFs to the exploration of Ether-based investment vehicles and the integration of blockchain technology within traditional finance, the industry is poised for continued innovation and growth.