ETH vs SEC, BlackRock's first tokenized fund, Ledger's new wallet? 😍

Hola degens,

Welcome back to another edition of Web3 Creator - your no-BS news stand for all things crypto!

This week, we've got a steaming hot cup of SEC drama brewing with Ethereum Foundation, BlackRock's big crypto splash, and Bitcoin is defying the odds (and some outflows).

And of course your moment of zen aka meme of the week.

Let's dive in!

ETH: Friend or foe to the SEC? A push to label Ethereum a security

SEC is probing Ethereum Foundation.

The U.S. Securities and Exchange Commission (SEC) is taking aggressive steps that could classify ETH as a security - potentially killing prospects for an Ether ETF.

The SEC issued several subpoenas to companies about their dealings with the Ethereum Foundation.

• According to sources familiar with the subpoenas, the SEC's probe into the Ethereum Foundation intensified shortly after Ethereum's shift to proof-of-stake consensus in September 2022.

• This transition provides SEC pretext to label Ether as an investment contract security under Chair Gary Gensler's leadership. 

• Gensler has suggested proof-of-stake tokens could resemble securities, contrasting with previous SEC guidance that Ether was not a security.

This could torpedo hopes for a spot Ether ETF by big names like BlackRock and Fidelity. 

Industry folks are divided.

Patrick McHenry, chair of the House Financial Services Committee has also shared disapproval of the reported move:

While others think the Proof-of-Stake switch was like waving a red flag in front of a bull.

So, what's next?

As the SEC continues delaying decisions, some predict Ether ETF applications may be initially denied before potential approvals emerge in 2024 or 2025...

BlackRock $9T investment behemoth launches its first Tokenized fund

Asset management giant BlackRock has launched its first tokenized fund - the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).

BlackRock has partnered with established players like Securitize and BNY Mellon to ensure the smooth operation of the fund.

3 things you need to know:

• BUIDL will provide qualified investors the opportunity to earn yields on U.S. dollar holdings by subscribing through Securitize's tokenization platform. This paves the way for more traditional financial products to be digitized.

• The fund seeks to maintain a stable $1 per token value, paying out dividends daily as new tokens to investors' crypto wallets.

• It invests 100% of assets in cash, Treasury bills and repo agreements, allowing investors to earn yield while holding the tokenized asset.

The minimum investment of $5 million suggests this fund is initially targeted at institutional investors.

Major crypto firms like Anchorage, BitGo, Coinbase are ecosystem participants.

Bonus Fun Fact: The name BUIDL is a play on the crypto community slogan "HODL" (Hold On for Dear Life), but instead emphasizes the act of building within the crypto space.

The best part? 

Blackrock is now the owner of at least $40,000 in memecoins and NFTs ever since the address went public. 

Ranging from Ordinals Pepe (PEPE) coin to a CryptoDickbutts S3 NFT.

Just another day in crypto. 😂

Bitcoin ignores ETF outflows gains $6K

It's been a volatile few days for Bitcoin (BTC) and the crypto markets. 

After trading sideways in the low-$60,000s for over a week, Bitcoin has since staged a furious recovery, surging past $67,000 as of Tuesday morning—a gain of over 12% from its recent swing low.

While a welcome relief for the bulls, Bitcoin's big bounce came despite U.S. Bitcoin ETFs seeing net outflows for the third straight day.

According to data from Farside Investors, a combined $261.5 million exited the 10 U.S. spot Bitcoin ETFs on on March 20 alone.

In total, U.S. Bitcoin ETFs have now seen three consecutive days of net outflows totaling $742 million. For some context, that's equal to around 1.2% of the ETFs' total assets under management.

The outflows were largely driven by the Grayscale Bitcoin Trust (GBTC), which hemorrhaged $386.6 million on March 20.

Final words:

It's a stark contrast from last summer when even modest ETF outflows would send Bitcoin reeling.

Part of the reason for Bitcoin's staunch resolve likely has to do with the upcoming halving in early April. Bitcoin's halving events, which occur every four years or so, reduce BTC's issuance rate by 50%.

Historically, Bitcoin has tended to rally in the lead-up and aftermath of halvings as investors front-run the supply shocks. According to IntoTheBlock, Bitcoin has surged 290% on average one year after its previous halving events.

With just 30 days left until Bitcoin's next halving, bulls are increasingly optimistic that history will repeat itself.

News from the crypto market 💼

• Solana earns Blockchain Ecosystem of 2024 by a staggering margin. 👏

• Coinbase to launch DOGE futures, says it ‘transcended’ meme origins. Crypto exchange Coinbase has announced plans to launch futures trading for Dogecoin, Litecoin and Bitcoin Cash as soon as April 1. (link) 

• UN panel investigating 17 cryptocurrency heists  $750 million linked to North Korea. North Korea’s cyberattacks generate approximately 50% of its foreign currency income. (link)

• Ledger announced it's launching its new hardware wallet “very soon.” The new Ledger Stax will roughly be the size of a credit card and will support a wide range of tokens - including BTC, ETH, SOL, and NFTs. (link)

• MicroStrategy has purchased an additional 9,245 BTC for approximately $623 million. Holding a total of 214,246 BTC, acquired for roughly $7.53 billion at an average price of $35,160 per Bitcoin. (link)

• Extradition of Do Kwon to South Korea finalized. Official notice confirms that Kwon will now face criminal charges in his home country related to the collapse of his multi-billion-dollar Terra-LUNA ecosystem. (link)

Meme of the week 😉

That’s a wrap. See you next Thursday with the best of Web3!