Web3🌗Wednesday Unpacked: Bitcoin's Slide, Paradigm's Pivot, FTX Resurgence, and BlockFi's Rebound

Hello, Web3 Enthusiasts! Welcome to another exciting Wednesday in the world of Web3 and cryptocurrency. We've got a jam-packed update for you today, featuring some of the hottest topics in the crypto sphere. Are you ready to delve into the depths of Web3? Let's explore these intriguing developments and gain a deeper understanding of the ever-evolving crypto landscape.

1. Bitcoin's Unexpected Turn: Could the Spot BTC ETF be Facing Challenges?

Bitcoin's price faced a 3% dip, dropping from $34,500 to about $33,500 due to concerns over spot Bitcoin ETF approvals. The removal of BlackRock’s iShares Bitcoin Trust ticker from DTCC’s list raised uncertainties. Bloomberg's Eric Balchunas suggested that the delay might be intentional. Despite this, the DTCC's action is considered a technicality and may not significantly impact ETF approval prospects. Recent SEC decisions and adjustments by major Wall Street players imply constructive collaboration, instilling confidence in imminent approvals. Analysts anticipate multiple spot Bitcoin ETFs gaining approval within months, with JP Morgan suggesting it could happen by January 10th. Matrixport still forecasts Bitcoin reaching the $40,000 range. These market dips could present buying opportunities, with a prevailing bullish trend expected in the near term.

Bitcoin Dips 3% in Minutes as DTCC Removes BlackRock’s iShares Bitcoin Trust Ticker From List – Are Spot BTC ETF Approvals At Risk?

The ticker’s removal is just a technicality and Bitcoin’s uptrend is likely to remain in place as long as markets remain certain of near-term spot BTC ETF approvals.

Cryptonews

2. Paradigm's Co-Founder Ventures into the Realm of Science

Fred Ehrsam steps down as managing partner at Paradigm to focus on exploring personal interests in science. He remains committed to crypto and its transformative potential. Ehrsam highlights his passion for bio research, aligning with past crypto interest in this field. Co-founder Matt Huang and COO Alana Palmedo continue as managing partners. In recent events, Huang testified in the trial involving former FTX CEO Sam Bankman-Fried, detailing how FTX's actions affected Paradigm's investments.

Co-Founder of Paradigm, a Top Crypto Investor, Steps Down as Managing Partner to Focus on Science

Fred Ehrsam, who will be a general partner instead, said he wants to devote more time to “explore areas of science” that he’s passionate about.

CoinDeskHelene Braun

3. FTX Explores Comeback for Crypto Exchange

FTX considers offers to revive the crypto exchange, previously one of the largest, post-bankruptcy due to fraud allegations. Decision by mid-December. Options: sell, partner, or self-restart. Recovered $7B in assets, including $3.4B in crypto. Settlements reached with creditor groups. FTX founder, Sam Bankman-Fried, resigned as CEO due to financial turmoil. He faces charges of misusing customer funds. The recovery percentage for creditors hinges on the exchange's value.

FTX Is Negotiating With Three Bidders to Restart Crypto Exchange - BNN Bloomberg

FTX Trading Ltd. is considering proposals from three bidders to restart trading on what had been one of the world’s biggest crypto exchanges before the company sank into bankruptcy amid fraud allegations.

BNNBloomberg News

4. BlockFi's Strong Revival, Wallets Now Accessible

BlockFi, a crypto lending platform, has announced its emergence from bankruptcy and is now facilitating withdrawals for both U.S. and international users. According to a recent blog post, withdrawals are currently accessible for nearly all Wallet customers, while BlockFi Interest Account (BIA) and Loan customers will have the ability to withdraw some assets in early 2024. This development empowers BlockFi to pursue assets owed by other firms, including bankrupt platforms like Three Arrows Capital and FTX. The company can also proceed with asset distribution to its creditors and handle claims processing. Users with assets on BlockFi's Wallet are encouraged to log in and submit a withdrawal request. Initial distributions for BIA and Loan customers are anticipated in early 2024, with subsequent disbursements contingent on BlockFi's success in FTX bankruptcy litigation and other factors.

BlockFi emerges from bankruptcy and opens wallet withdrawals

BlockFi was a crypto lending platform that filed for bankruptcy in November due to the FTX contagion.

CointelegraphTom Blackstone

As we wrap up this Web3 Wednesday update, it's clear that the crypto space is as dynamic as ever. The potential shifts in the Spot BTC ETF approval, Paradigm's co-founder venturing into science, FTX's revival discussions, and BlockFi's impressive resurgence are all testament to the rapid evolution of this industry. Each development holds its own significance, shaping the future of Web3. Stay tuned for more exciting updates on the horizon, as the crypto world continues to unfold. Remember, being in the loop with these transformative events is key to navigating the crypto landscape effectively. Until next time, keep exploring and innovating in the realm of Web3!

WEB3 AI ML