The Crypto Roundup: 10 June 2024

Latest price and news from the crypto space

Latest price from our hand picked list of digital assets

Bankrupt cryptocurrency lender Genesis Global Capital has requested the permission of the U.S. Bankruptcy Court in New York to offload around $1.6 billion worth of trust assets, including around $1.4 billion worth of Grayscale Bitcoin Trust shares.

One of the issuers of the spot Bitcoin exchange-traded funds (ETFs), Valkyrie, has added BitGo as a second custodian alongside Coinbase for its BRRR ETF. The move makes it the first spot Bitcoin ETF issuer to diversify custody of its BTC.

El Salvador’s pro-Bitcoin president Nayib Bukele is set to be reelected for a second five-year term leading the country, with exit polls showing him leading by a significant margin after voting ended.

Top stories in the Crypto Roundup today:

Genesis Asks Court for Permission to Sell $1.6 Billion in Assets
Valkyrie Becomes First Spot Bitcoin ETF to Add Second Custodian
El Salvador’s Bitcoin-Friendly President Set to Win Re-Election

Genesis Asks Court for Permission to Sell $1.6 Billion in Assets

The firm, which is part of the Digital Currency Group, would also offload shares of Grayscale Ethereum Trust worth around $165 million and $38 million in Grayscale Ethereum Classic Trust shares.

To expedite the process, Genesis has also asked the court to reduce the usual timelines, aiming for a quick hearing on their asset sale proposal set for Thursday, February 8.

The assets at the heart of this sale include GBTC which was initially used as collateral in the agreement between Genesis and Gemini for the Earn program. Genesis is also looking to secure rights to an additional 31.18 million shares worth, around $1.2 billion, promised to Gemini but never handed over in a matter that’s still unsettled.

Valkyrie Becomes First Spot Bitcoin ETF to Add Second Custodian

BitGo's CEO, Mike Belshe, celebrated the collaboration saying it’s a “huge win,” and highlighted Valkyrie's forward-thinking strategy in reducing risk associated with ETF custody, calling it the “best approach” to do so. Market analysts have expressed a similar sentiment, suggesting other ETF providers could soon add in new custodians.

The approach not only helps reduce counterparty risk, but also positions the ETF issuer to negotiate better fee structures with custodians in the future in a bid to improve their profitability.

It comes after spot Bitcoin ETFs entered a fee war even before their launch on January 11, and seven of them offered to waive fees for a limited time.

El Salvador’s Bitcoin-Friendly President Set to Win Re-Election

Bukele, who has been in office since 2019, has maintained high approval ratings and was the frontrunner in pre-election forecasts. In his first term, Bukele gained international attention for taking aggressive measures against gang-related violence and in moving El Salvador toward Bitcoin.

In September 2021, El Salvador made history by adopting Bitcoin as legal tender, along with the U.S. dollar, to stimulate its economy, attract investment, and increase financial inclusion for its people.

The country has since been buying the cryptocurrency as an investment, with its BTC holdings swinging into profit late last year. This year, the country is looking to launch its Bitcoin-backed “Volcano bonds,” after receiving regulatory approval to do so. These bonds are set to fund the development of a renewable energy-powered Bitcoin mining operation.

State of the Crypto by Top Tier Exchange Volume

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