Cathie Wood, CEO at ARK Investment Management has spoken with Bloomberg about adjustments in the ARK Next Generation Internet ETF. ARK Invest offloaded its 2.25 million shares in the Grayscale Bitcoin Trust (GBTC) and acquired 4.32 million shares of the ProShares Bitcoin Strategy ETF.

In his year-end reflections, Richard Teng, who assumed the CEO role at Binance on November 21 after Changpeng Zhao ("CZ") stepped down amid legal issues in the U.S., highlighted the company's 2023 achievements.

A New York judge agreed with the Securities and Exchange Commission (SEC) that Terraform Labs and its co-founder, Do Hyeong Kwon, had engaged in the offering and sale of unregistered securities.

Top stories in the Crypto Roundup today:

• ARK Invest Sells Remaining 2.25 Million GBTC Shares, Buys 4.32 Million Shares of ProShares ETF
• Binance Manages to Grow Its User Base by 30% to 170 Million
• S. District Court Judge Agrees With SEC That Terraform Labs Sold Unregistered Securities

ARK Invest Sells Remaining 2.25 Million GBTC Shares, Buys 4.32 Million Shares of ProShares ETF

Cathie Wood, CEO at ARK Investment Management has spoken with Bloomberg about adjustments in the ARK Next Generation Internet ETF. ARK Invest offloaded its 2.25 million shares in the Grayscale Bitcoin Trust (GBTC) and acquired 4.32 million shares of the ProShares Bitcoin Strategy ETF.

Wood attributed this shift to the regulatory and tax uncertainties associated with GBTC. A crucial factor in ARK's decision was the substantial reduction in the difference between GBTC's market price and its Net Asset Value (NAV), which has decreased from a high of 50% last year to a much smaller margin.

This strategy indicates ARK's careful stance in the present regulatory climate, with Wood stressing the value of regulatory stability, which the ProShares Bitcoin Strategy ETF offers by tracking Bitcoin futures. Unlike GBTC, this ETF has received regulatory approval, providing a more certain investment environment.

Wood also talked about ARK Invest's active pursuit of a spot Bitcoin ETF and her positive outlook on its potential approval, citing the SEC's increasing engagement and detailed queries as encouraging signs of their interest.

Wood remains positive about Bitcoin's prospects, despite ARK's change in investment strategy. She clarified that the move was a precautionary measure and not indicative of a change in their stance on Bitcoin.

Binance Manages to Grow Its User Base by 30% to 170 Million in 2023

In his year-end reflections, Richard Teng, who assumed the CEO role at Binance on November 21 after Changpeng Zhao ("CZ") stepped down amid legal issues in the U.S., highlighted the company's 2023 achievements.

Teng noted a significant increase in Binance's user base, with registered users reaching 170 million by the end of the year, a 30% increase from the previous year. According to Teng, this growth signifies Binance's expanding market presence and increasing trust among institutional investors.

Teng reported on Binance's service enhancements throughout the year, including the launch of the Binance Web3 wallet and the revamp of Binance Square. These developments, he mentioned, were in response to the growing demand for secure and accessible Web3 gateways. Teng also shared that Binance saw a 20% increase in Binance Pay users, a 39% rise in peer-to-peer (P2P) platform usage, and a 35% growth in Binance Earn engagement.

Focusing on security, Teng emphasized Binance's commitment to maintaining a $1.2 billion Secure Asset Funds for Users (SAFU) fund and expanding its proof-of-reserves system. He also mentioned Binance's collaborative efforts with global law enforcement and educational campaigns aimed at enhancing user security.

Looking ahead, Teng expressed optimism about Binance's future, stating that the company, with its strong financial foundation and growing global community, is well-prepared to navigate the evolving digital asset landscape.

U.S. District Court Judge Agrees With SEC That Terraform Labs Sold Unregistered Securities

A New York judge agreed with the Securities and Exchange Commission (SEC) that Terraform Labs and its co-founder, Do Hyeong Kwon, had engaged in the offering and sale of unregistered securities.

Judge Jed Rakoff of the U.S. District Court for the Southern District of New York issued a summary judgment in favor of the SEC on this claim. However, the judge also ruled in favor of Terraform regarding claims related to offering and conducting transactions in security-based swaps.

In his ruling, Judge Rakoff stated:

"There is no genuine dispute that UST, LUNA, wLUNA, and MIR are securities because they are investment contracts."

The court, however, did not grant summary judgment for either party on the fraud allegations, indicating these issues will be decided by a jury trial, as per the court filing.

The SEC had previously charged Terraform Labs and CEO Do Kwon in February concerning their algorithmic stablecoin, Terra USD, which experienced a dramatic collapse last year. The SEC accused Kwon and Terraform of conducting a "multi-billion dollar crypto asset securities fraud."

The agency alleged that they raised billions from investors through the sale of a suite of interconnected crypto asset securities, many of which were unregistered. This included “mAssets,” described by the SEC as security-based swaps designed to mirror the returns of U.S. company stocks, and the notorious Terra USD.

The remaining claims in the lawsuit are scheduled for a jury trial starting on January 24, 2024.

State of the Crypto by Top Tier Exchange Volume

Build your project with CoinDesk Data

Terms | Privacy

13 Charles II St, SW1Y 4QU

London, UK

This email may include advertisements by third parties. None of the advertised or promoted products and services have been verified or approved by us and this email is not any endorsement by us of the third party or of their products or services.