5 Things to Know in Crypto Today: BTC Consolidates Near $24,000, ETH Continues Progress Towards $2,000

Key Points

• Cryptocurrencies are mostly consolidating on Friday ahead of the release of more US data.
• Bitcoin was last changing hands near $24,000 whilst Ethereum continues to push towards $2,000.
• BlackRock on Thursday announced that it has launched a spot Bitcoin private trust for its US-based institutional clients.

Bitcoin Pulls Back to $24,000, Ethereum’s March Towards $2,000 Continues

After coming within a whisker of hitting the $25,000 mark on Thursday, Bitcoin is in consolidation mode near $24,000 this Friday as traders eye the release of data at 1400GMT that will provide an update on the health of the US consumer, including their expectations for inflation in the years ahead. The world’s largest cryptocurrency is broadly flat on Friday, having failed to garner a lasting boost from another downside US inflation surprise on Thursday.

The continued hawkish tone of Fed policymakers this week, who have been keen to emphasize that it remains far too soon to declare victory in the fight against inflation and that more tightening remains appropriate, has been cited as tempering the market’s optimism. But Bitcoin still looks set to end the week around 3.5% higher.

Ethereum, meanwhile, has pulled back from Thursday’s highs near $1,950, but is still holding above the $1,900 level, supported by optimism about the network’s upcoming “Merge” after a successful trial run on one of its major public testnets this week. ETH looks set to end the week nearly 12% higher and bulls continue to eye a test of $2,000. In terms of other major altcoins, the likes of BNB, XRP, ADA, SOL and DOT aren’t much changed in the last 24 hours, according to CoinMarketCap.

Ethereum Devs Propose Tentative Mainnet Merge Dates

In wake of Thursday’s successful Goerli testnet “Merge”, developers are tentatively putting forward dates when the Ethereum mainnet merge to Proof-of-Stake from Proof-of-Work might go ahead. Developers seem to agree that the so-called Bellatrix upgrade, the upgrade that kick-starts the merge process, should go live on 6 September.

Tentative Mainnet Bellatrix fork slot/time 👇

Epoch: 144896
Time: 9/6/2022, 11:34:47 AM (UTC)

— terence.eth 🦇🔊 (@terencechain) August 11, 2022

There is then likely to be 14 days until the actual merge is activated, meaning 20 September is the most likely date. But there is also chatter about activating Bellatrix on 1 September, which could mean the merge going ahead on 15 September. 16 September is also being discussed as a possibility.

Developers will finalize the above dates in a call next week. Either way, the main Ethereum blockchain is on the cusp of becoming a PoS chain, which will reduce its energy consumption by some 99.95%.

BlackRock Launches Spot Bitcoin Private Trust, One week After Partnering With Coinbase

BlackRock on Thursday announced that it has launched a spot Bitcoin private trust for its US-based institutional clients. The world’s largest asset manager last week announced that it was partnering with Coinbase to offer cryptocurrency trading services to its clients.

BlackRock said in a post on its website that “despite the steep downturn in the digital asset market, we are still seeing substantial interest from some institutional clients in how to efficiently and cost-effectively access these assets using our technology and product capabilities”.

Some cryptocurrency enthusiasts took the opportunity to criticize the US Securities & Exchange Commission for failing to approve a spot Bitcoin Exchange Traded Fund (ETF). “BlackRock is allowed to offer its clients spot Bitcoin exposure through a private fund… But the SEC won’t approve a spot ETF for retail… I suppose retail investors are too clumsy to make adult decisions?” Coin Bureau said in a post on Twitter.

So let me get this straight…

BlackRock is allowed to offer its clients spot #Bitcoin exposure through a private fund.

But the SEC won't approve a spot ETF for retail.

I suppose retail investors are too clumsy to make adult decisions? Not like those uber smart rich folks.

— Coin Bureau (guy.eth) (@coinbureau) August 12, 2022

Huobi Founder Looking to Sell 60% Stake; FTX’s Bankman Fried, Tron’s Justin Sun Possible Buyers

Cryptocurrency exchange Huobi Global’s founder Leon Li is looking to sell a 60% stake in the company, according to a Bloomberg report out this Friday. Li has reportedly already held preliminary talks with Tron blockchain founder Justin Sun and the founder of competitor cryptocurrency exchange FTX Sam Bankman-Fried, Bloomberg said.

According to CoinGecko, Huobi Global saw the seventh highest trading volumes of any cryptocurrency exchange in the world in the past 24 hours of over $1 billion. The sale could reportedly value Huobi at $3 billion and could be completed by the end of the month.

FTX has been on a buying spree amid the current cryptocurrency market downturn, snapping up Japanese exchange Liquid, Canadian exchange Bitvo and agreeing to a deal to purchase BlockFi. The firm has also considered purchasing collapsed lending platforms Celsius Network and Voyager Digital.

Private Funds May Soon Have to Disclose Crypto Exposure to US Regulators

Private funds such as hedge funds may soon have to disclose their cryptocurrency exposure to US regulators, according to an amended proposal put forth by both the US SEC and Commodity Futures Trading Commission (CFTC). Earlier this week, both US regulatory bodies voted in favor of the proposal that will force private funds to report their crypto exposure on a Form PF.

This form is submitted to regulators confidentially. SEC Chair Gary Gensler said, “I am pleased to support the proposal because, if adopted, it would improve the quality of the information we receive from all Form PF filers, with a particular focus on large hedge fund advisers”.