Web3 🌗 Wednesday Highlights: Alpha Protocol's $20M Fund, Perpetual Protocol's Moves, Grayscale's Bitcoin ETF Push, and Coinbase's Lending Service
💸 Alpha Protocol Ventures Announces $20M Web3 Fund
✨ Perpetual Protocol's Token Moves and Sales
🛸 Grayscale Pushes SEC for Bitcoin ETF
💰 Coinbase Introduces Crypto Lending for Major Investors
🌐 Genesis Global Trading's Crypto Spot Update
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Welcome to another exciting day in the world of Web3! Today, we've gathered a collection of cutting-edge updates that are making waves in the crypto and blockchain sphere. From new investment opportunities to regulatory advancements, we've got it all covered. Dive into today's Web3 Highlights and stay ahead of the curve!
1. Alpha Protocol Ventures Announces $20M Web3 Fund
Alpha Protocol Ventures (APV) has established a $20 million fund to invest in undervalued Web3 projects, with a focus on blockchain gaming, digital collectibles, decentralized finance, and layer-1 and layer-2 protocols. The fund has secured backing from various investors, including Ethernity CEO Nick Rose and Web3 investment firm Morningstar Ventures. APV aims to support both innovative startups and projects during bear markets, recognizing the exponential growth potential of the crypto ecosystem. This initiative highlights the ongoing interest and investment in Web3 projects and platforms by venture capital firms and fund managers in 2023.
Gareth Jenkinson
2. Perpetual Protocol's Token Moves and Sales
Following a price surge, the Perpetual Protocol Foundation has moved 903,000 PERP tokens to Binance. This transaction marks a continuation of their actions since March, during which they have shifted a total of 7 million PERP tokens to Binance, totaling approximately $4.62 million in value.
3. Grayscale Pushes SEC for Bitcoin ETF
Grayscale's legal team has urged the SEC to move forward with its proposed Spot Bitcoin ETF after a court ruled in favor of Grayscale, stating that the SEC inadequately explained its rejection of the ETF. Grayscale believes the ETF should be approved, as it would rely on the same market surveillance arrangement as Bitcoin futures ETFs. They argued that delaying the approval would harm investors. Joseph Hall of Davis Polk, representing Grayscale, highlighted inconsistencies in the SEC's approach and emphasized the need for a level playing field for nearly one million investors. Approval of the spot Bitcoin ETF is likely forthcoming.
4. Coinbase Introduces Crypto Lending for Major Investors
Coinbase has launched a crypto lending service for institutional clients in the U.S. The platform aims to fill the gap left by the troubles faced by companies like Genesis and BlockFi in the crypto lending sector. Notably, $57 million has already been raised for this program, as per a U.S. Securities and Exchange Commission filing. In this service, clients can lend money, primarily in the form of crypto assets, and receive collateral exceeding the loan value, providing a safety net. Coinbase can subsequently offer secured loans to institutional trading clients, akin to traditional finance's prime brokerage services. This offering differs from Coinbase's canceled Lend program, which targeted retail customers and faced SEC objections. The new lending service is designed for institutions, subject to less stringent regulations due to the presumption that large investors can handle it. It aims to support the crypto revolution by providing economic freedom and opportunity.
Nick Baker
5. Genesis Global Trading's Crypto Spot Update
Genesis Global Trading (GGT), a subsidiary of Barry Silbert's Digital Currency Group, is shutting down its crypto spot trading operations in September. This decision was made voluntarily and for business reasons, with GGT working closely with regulatory authorities to ensure an orderly discontinuation of services. GGT, based in New York, specializes in over-the-counter market-making services for digital assets and is licensed by several regulatory bodies.
However, the closure of spot trading operations doesn't affect derivatives trading through GGC International Limited, which will remain operational. Genesis Trading, in its second-quarter report, highlighted challenges in spot market liquidity and a growing focus on derivatives trading. It noted that a significant portion of future crypto trading growth would likely occur in the derivatives market.
Genesis Global Holdco, another Genesis-linked company, filed for bankruptcy earlier in the year, while GGT avoided such troubles. These companies are indirectly associated with Digital Currency Group, which has faced its own challenges, including a missed debt payment to Gemini and a subsequent lawsuit alleging fraudulent activity.
Katherine Ross
In the ever-evolving world of Web3, today's highlights have showcased significant developments across the crypto landscape. Alpha Protocol Ventures' $20 million Web3 fund demonstrates the growing interest in blockchain gaming, collectibles, and decentralized finance. Meanwhile, Perpetual Protocol's token moves and Grayscale's plea to the SEC for a Bitcoin ETF shed light on the regulatory intricacies of the industry. Coinbase's latest crypto lending service, tailored for institutional investors, fills a crucial void left by previous market players. Lastly, Genesis Global Trading's decision to cease its crypto spot operations reflects the dynamic nature of the crypto market. Stay tuned for more updates as the Web3 revolution continues to reshape the digital landscape, offering new opportunities and challenges for investors and enthusiasts alike
