Grayscale Launches XRP Fund Causing ETF Speculations

Grayscale Launches XRP Fund Causing ETF Speculations

Grayscale announced plans to launch a new XRP trust fund, allowing investors to gain exposure to the cryptocurrency without holding the asset directly. The firm previously shut down an XRP fund in 2021 after the US SEC filed a lawsuit against Ripple, classifying XRP as a security. XRP remains a popular cryptocurrency, ranking seventh by market capitalization with over $32 billion.

The token experienced a brief 8% spike following the announcement before stabilizing to a net gain of 4% within 24 hours. Grayscale believes that XRP, known for facilitating fast cross-border payments, has the potential to modernize legacy financial systems. This new fund marks Grayscale's ongoing expansion into various digital assets, having already launched an Avalanche trust earlier this month.

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eToro to Limit Crypto Offerings in the US After SEC Settlement

eToro has agreed to pay $1.5 million to the US SEC to settle charges of operating as an unregistered broker and clearing agency. As part of the settlement, eToro will limit the cryptocurrencies available for trading on its platform to major assets like Bitcoin, Bitcoin Cash, and Ethereum. The SEC applauded the move, stating that it ensures better investor protection and sets a regulatory precedent.

In the next 180 days, eToro will sell off the rest of its crypto holdings in smaller tokens, including AVAX, Dogecoin, XRP, and Cardano. Yoni Assia, eToro's CEO, said the settlement won't affect global operations, with 100+ coins still available to non-US users. eToro emphasized its commitment to complying with regulations and plans to reintroduce more tokens once a US regulatory framework is established.

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Coinbase Debuts Wrapped Bitcoin (cbBTC) on Ethereum & Base

Coinbase has debuted its own version of wrapped Bitcoin, cbBTC, which is now available on the Ethereum and Base networks. The ERC-20 token is backed 1:1 by Bitcoin held at Coinbase and can be used in decentralized finance applications for providing liquidity or collateral for loans. Supported DeFi protocols for now include Aave, Compound, and Curve, with plans to expand cbBTC to additional chains.

This move positions Coinbase to compete with Wrapped Bitcoin (WBTC), currently the largest tokenized Bitcoin product with a market cap near $9 billion. Unlike traditional Bitcoin trading on Coinbase, cbBTC is focused on non-custodial use in decentralized exchanges (DEXs). Coinbase's introduction of cbBTC marks the company's latest effort to bridge Bitcoin and the broader DeFi ecosystem.

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Sky (MakerDAO) Votes to Remove Wrapped Bitcoin (WBTC)

Decentralized lender Sky, formerly MakerDAO, is set to vote on removing all Wrapped Bitcoin (WBTC) from its platform, citing concerns about the asset's association with Tron founder Justin Sun. Sky holds approximately $200 million in loans collateralized by WBTC, which is a key token for Ethereum's DeFi and is the most used version of a wrapped BTC.

The governance proposal, led by risk management firm BA Labs, suggests gradually offloading wBTC over five steps, beginning on September 26. This move follows a partnership announced by BitGo, wBTC’s custodian, to decentralize control of the token’s custody by involving multiple global entities, including a controversial collaboration with BiT Global, linked to Justin Sun.

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Data of the Day

A recent report conducted by Castle Island Ventures and Brevan Howard shows that stablecoins are increasingly used for savings, payments, and cross-border transactions in emerging markets, particularly in countries like Nigeria, India, Brazil, and Turkey.

The survey found that 69% of respondents had converted local currency to stablecoins, while 39% used stablecoins for remittances or purchasing goods and services. Users cited the efficiency, yield potential, and reduced government interference as reasons for preferring stablecoins over traditional banking.

About 99% of all stablecoins rely on the US dollar and Tether (USDT) was the most popular stablecoin, with Tron, Polygoin, Ethereum and BNB Chain leading as preferred blockchain networks.

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More Breaking News

• Republican lawmakers have accused SEC Chair Gary Gensler of hiring employees based on political beliefs and requested related documents.
• Ethervista’s Telegram channel was temporarily suspended due to a bot-generated FUD attack, but the team is working with Telegram to resolve the issue.
• Binance announced TON's Hamster Kombat (HMSTR) as the 58th project on Binance Launchpool with 3% of the 100bn total tokens allocated to the 7-day event.
• A new bill introduced by Rep. John Rose proposes a joint SEC-CFTC committee to collaborate on shaping US crypto regulations.
• Donald Trump announced the launch date for his crypto project, World Liberty Financial, set for September 16, emphasizing crypto's future over traditional banking.
• US authorities are reportedly urging Nigerian officials to release Binance executive Tigran Gambaryan, detained for seven months on money laundering charges.
• Singapore's Parliament passed a law banning the use of cryptocurrencies in casinos to prevent money laundering and criminal activities.

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