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Solana ETFs Move Closer as Grayscale & VanEck File Key Updates

by Ouess
written by Ouess

The race to launch the first Solana ETFs just heated up. Grayscale and VanEck submitted amended S-1 filings, revealing crucial details about fees, staking, and custody arrangements.

Grayscale’s Solana ETF (GSOL) Highlights

  • 2.5% sponsor fee – Higher than Bitcoin ETF counterparts
  • Coinbase Custody as sole custodian
  • Cash-only model (no in-kind creations initially)
  • Passive SOL holding (no staking yet, but may change)
  • Ticker: GSOL | Exchange: NYSE Arca

VanEck’s Competitive Edge (VSOL)

  • Lower 1.5% fee undercuts Grayscale
  • Staking rewards included (via third-party validators)
  • Gemini + Coinbase as co-custodians
  • Future LST integration possible
  • Ticker: VSOL | Exchange: Cboe BZX

Why This Matters

✅ Approval signals growing – Final SEC decision could come soon
✅ Staking differentiation – VanEck’s active approach may attract more investors
✅ Fee war begins – 1.5% vs 2.5% sets stage for competition

Both ETFs will track the CoinDesk SLX Index and operate as grantor trusts, avoiding stricter investment company regulations.

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Could Bitcoin Reduce U.S. Debt? VanEck’s Research Weighs In

by Ouess
written by Ouess

Senator Cynthia Lummis’ Bitcoin reserve bill, introduced after Trump’s pro-Bitcoin speech in July 2024, aims to use BTC to ease the national debt. A new study by VanEck explores how effective this strategy could be.

Source : X

Can Bitcoin Reduce U.S. Debt? VanEck’s Findings Explained

Their research suggests that if the U.S. government adopts a Strategic Bitcoin Reserve, it could offset 18% of the national debt before selling off any holdings. However, fully eliminating debt through Bitcoin alone seems unlikely.

VanEck’s Bitcoin Debt Calculator

Source : VanEck

📅 Release Date: February 21, 2025
🔍 Goal: Assess Bitcoin’s impact on U.S. debt
📊 Factors Considered: BTC purchase rate, price growth, national debt increase

VanEck’s tool allows users to simulate how BTC reserves might impact the national debt. It calculates potential outcomes based on Bitcoin price growth and government BTC purchases. However, the study warns that these predictions rely on past trends and assumptions.

Source : VanEck

Key Takeaways from the Research

  • The U.S. plans to accumulate 1 million BTC over five years and hold them for 20 years.
  • By 2049, these reserves could be worth $21 trillion, offsetting 18% of the projected $116 trillion debt.
  • The study assumes Bitcoin will grow 25% per year, reaching $21 million per coin by 2049.
  • National debt is expected to grow 5% annually, increasing from $36 trillion to $116 trillion.

Despite the potential benefits, Bitcoin alone won’t erase the U.S. debt anytime soon. Even Lummis acknowledged this, saying the goal is to reduce debt, not eliminate it.

Can Bitcoin Fully Pay Off U.S. Debt?

In August 2024, Donald Trump claimed that Bitcoin could potentially erase trillions in debt. But is that realistic?

🔹 To fully cover $50 trillion in debt by 2035, the U.S. would need 36 million BTC at $1M each.
🔹 Bitcoin’s total supply is only 21 million, making this scenario impossible.
🔹 Even accumulating 1 million BTC is challenging, requiring five years under Lummis’ plan.

Major Bitcoin holders like BlackRock (500K BTC) and Michael Saylor’s MicroStrategy (500K BTC) highlight how scarce BTC is. Even if the U.S. amasses 1M BTC, selling them without crashing the price would be difficult.

Why Selling Bitcoin Reserves Is Complicated

  1. Dumping BTC in large volumes could crash its price, reducing its effectiveness in debt repayment.
  2. Finding buyers for such large amounts wouldn’t be easy.
  3. Bitcoin’s scarcity means competing governments or institutions could limit the U.S.’s ability to buy more.

Even the most bullish BTC predictions don’t suggest Bitcoin could single-handedly eliminate U.S. debt. Instead, it may serve as a supplementary asset to reduce the burden.

Bitcoin as a Partial Debt Solution

While Bitcoin won’t wipe out U.S. debt, it could become a valuable financial tool for the government. The Strategic Bitcoin Reserve may provide long-term benefits, but relying solely on BTC for debt repayment isn’t feasible.

As VanEck’s research suggests, Bitcoin could offset 18% of the national debt—but a full payoff remains out of reach.

What do you think? Could Bitcoin play a bigger role in national debt reduction, or is this strategy flawed?

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DeFi

DePin Projects Transforming Infrastructure: Latest Updates

by Ouess
written by Ouess

Decentralized Physical Infrastructure Networks (DePin) are revolutionizing real-world infrastructure by enabling decentralized projects to reshape industries. From decentralized wireless services to AI-driven innovations, the DePin space has been buzzing with activity. Here are some of the latest developments.

VanEck Invests $2.5M in DAWN

VanEck has made a bold move into the DePin sector with its $2.5 million investment in DAWN (Decentralized Autonomous Wireless Networks). DAWN is working to create a decentralized wireless service provider, which VanEck describes as an “AirBnB for the internet.”

In a statement, VanEck highlighted the limitations of legacy internet infrastructure:

https://twitter.com/vaneck_us/status/1868654409544351999

While this is a rare DePin investment for VanEck, it demonstrates the growing potential of decentralized wireless networks to challenge traditional ISPs.

Exabits Raises $15M in Seed Funding

Exabits, an AI GPU tokenization startup, secured $15 million in seed funding, bringing its valuation to $150 million. The company tokenizes GPU resources, allowing fractional ownership and enabling greater access to AI compute power.

https://twitter.com/exa_bits/status/1867323669380538724#m

This funding marks a 300% quarterly revenue increase for Exabits. As GPUs play a crucial role in AI and DePin ecosystems, this innovation could significantly impact the growing demand for decentralized AI services.

IoTeX Advocates for Clear Regulations

IoTeX, a leader in DePin modular infrastructure, has joined the Blockchain Association to push for better regulations in the space. In a recent blog post, CEO Raullen Chai emphasized the importance of collaboration with policymakers to create a thriving DePin ecosystem.

https://twitter.com/iotex_io/status/1868747941906624918#m

“By joining the Blockchain Association, IoTeX aims to unlock the full potential of decentralized infrastructure under clear and consistent regulation,” Chai stated.

IoTeX is working with other DePin leaders, including Hedera and Helium, to ensure a regulatory environment that fosters innovation.

Karrier One Launches Decentralized WiFi Hotspots

Karrier One has launched its decentralized WiFi hotspot devices, leveraging the Sui blockchain to expand internet access. Users providing WiFi offloading services to carriers can earn KONE tokens.

https://twitter.com/karrier_one/status/1867208812014305370#m

This initiative aims to address underserved areas and relieve the strain on traditional telecom providers. Karrier One’s close collaboration with the Sui network has been essential to the project’s development, demonstrating how blockchain can bridge connectivity gaps.

Conclusion

DePin projects like DAWN, Exabits, IoTeX, and Karrier One are leading a wave of innovation in decentralized infrastructure. From transforming wireless networks to advocating for better regulations, these updates highlight the potential of decentralized technology to reshape real-world infrastructure.

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Market Watch: U.S. Futures Rise Amid Inflation Uncertainty and Crypto ETF Approvals

by Ouess
written by Ouess


U.S. futures for stock indices inched higher on Thursday, anticipating a crucial consumer inflation report that might impact hopes for early interest-rate cuts. Concurrently, crypto stocks saw an upswing following regulatory approval for exchange-traded funds (ETFs) linked to Bitcoin.

The S&P 500, rallying nearly 17% from October lows, gained momentum in December after the Federal Reserve hinted at addressing inflation, suggesting possible rate cuts. The index is on the cusp of its all-time closing high, achieved in January 2022.

Market focus now turns to the December Consumer Price Index (CPI) report, scheduled for 8:30 a.m. ET, as traders gauge the potential timing of the Fed’s monetary policy adjustments. Despite consumer prices showing a slight decline during the central bank’s recent tightening phase, economists predict the headline CPI to rise to 3.2% in December, surpassing the Fed’s 2% target.

Excluding volatile elements like food and energy, the forecast for December remains at a 0.3% unchanged rate from the previous month, with year-on-year inflation expected to ease to 3.8% from November’s 4%.

Ipek Ozkardeskaya, Senior Market Analyst at Swissquote Bank, notes, “Data in line, or ideally softer than expected, will keep the Fed doves in charge of the market.” Despite ongoing geopolitical tensions and rising transportation costs, the prevailing expectation for 2024 remains disinflation due to weakened demand.

Money markets indicate a 68.8% probability of the central bank initiating a rate cut of at least 25 basis points in March, and a 95.6% likelihood of another reduction in May, despite recent resistance from policymakers.

In parallel, crypto stocks, including Coinbase, Bitfarms, and Riot Platforms, saw premarket gains of 4.5% to 7.0% following the approval of the first U.S.-listed Bitcoin ETFs by the U.S. securities regulator.

As of 5:40 a.m. ET, Dow e-minis increased by 7 points (0.02%), S&P 500 e-minis rose by 4.75 points (0.1%), and Nasdaq 100 e-minis gained 54 points (0.32%).

Citigroup faced a 1.2% decline after revealing a filing indicating approximately $3.8 billion in charges and reserves, impacting its fourth-quarter earnings to be reported on Friday. Other major banks like JPMorgan Chase, Bank of America, and Wells Fargo are also set to report on the same day.

Boeing saw a marginal uptick of 0.4% as regulatory approvals are awaited for the resumption of its 737 MAX 9 planes following a cabin panel issue attributed to a “quality” problem.

During the session, investors will closely examine comments from Richmond Fed President Thomas Barkin, a voting member this year.

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VanEck’s Support for Bitcoin: A Commitment to Development and ETF Innovation

by Ouess
written by Ouess

Investment firm VanEck has committed to allocating 5% of the potential profits from their proposed spot Bitcoin exchange-traded fund (ETF) to support Bitcoin core developers at Brink. Their intention is to provide sustained backing for Bitcoin developers over a decade using proceeds from the potential ETF’s profits.

VanEck has initiated its support by donating an initial sum of $10,000 to Brink, an organization established in 2020 to advance the Bitcoin protocol through research, development, and backing the Bitcoin developer community.

Brink operates a fellowship program aimed at introducing new software engineers to Bitcoin development and extends grants to existing Bitcoin developers. In 2023, it received a substantial $5 million grant from Jack Dorsey’s Smart Small funding initiative. Additionally, billionaire investor Tim Draper contributed $150,000 in December 2023 to further support Bitcoin developers.

If VanEck’s spot Bitcoin ETF, among the 12 other ETF applicants, gets regulatory approval, it will mark the first listing of such an ETF in the United States. The approval of a spot Bitcoin ETF would represent a significant milestone for the cryptocurrency industry, providing investors with a regulated and accessible means to invest in Bitcoin.

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Bitcoin

Bitcoin ETF Fee Wars: BlackRock, VanEck, and Ark/21Shares Slash Rates

by Ouess
written by Ouess

On Monday, BlackRock, VanEck, and Ark/21Shares revealed their competitive edge by announcing reduced fees for their upcoming spot bitcoin exchange-traded funds (ETFs), intensifying the battle for market dominance ahead of the approval deadline.

BlackRock proposed a fee of 0.30%, while VanEck aimed lower at 0.25%. Notably, ARK 21Shares Bitcoin ETF also slashed its planned fee from an earlier 0.80% to match VanEck’s at 0.25%.

These substantially reduced fees compared to their counterparts escalate the rivalry among various contenders striving to secure a portion of the spot bitcoin ETF market.

This race pits crypto entities like Grayscale Investments against established financial giants like BlackRock. The expectation of a swift approval for this investment vehicle has bolstered bitcoin’s value and restored confidence in an industry unsettled by the FTX collapse in November 2022.

The push for cryptocurrency ETFs gained momentum last year following Grayscale’s hard-won legal victory against the Securities and Exchange Commission (SEC). In August, a federal appeals court ruled against the regulator’s rejection of Grayscale’s application for a spot bitcoin ETF, marking a pivotal shift.

Before this ruling, the SEC had turned down numerous similar proposals, citing concerns about anti-fraud measures and safeguarding investor interests.

These ETFs offer investors exposure to bitcoin without directly owning the cryptocurrency. Regulatory approval could potentially encourage institutional interest in the leading cryptocurrency, often avoided by institutions due to regulatory uncertainties.

While BlackRock, VanEck, and Ark/21Shares aimed for competitive fees, Grayscale, on the other hand, proposed a higher fee of 1.5% on Monday, setting itself apart in the fee structure.

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