Evolution of the Crypto Industry Over Time: Bitcoin ETF Applications from 2013 to 2024
The foundations of the crypto industry were laid in 2013 when the Winklevoss twins applied for a Bitcoin ETF. However, at that time, Bitcoin's market value had surpassed $1 billion, and its price was around $87. Financial Times' concerns back then revolved around Wall Street not seeing Bitcoin as a suitable asset class for a $2 trillion ETF market.
Bitcoin ETF Applications in 2013-2014
Comparing applications from 2013-2014 with current ones reveals how the industry has matured and grappled with regulatory compliance. The storage problem, one of the SEC's concerns in 2013, has now been addressed through more complex systems involving cold storage, advanced private key management, and comprehensive risk controls.
Successful 2024 Applications
With the arrival of 2024, applications have succeeded, and market surveillance mechanisms have come into play. Referencing agreements with companies like Coinbase and NASDAQ, it's evident that regulators and ETF providers are adopting a model that doesn't overly restrict broader market activities, highlighting the use of personally identifiable information.
Rejected in 2017
The Winklevoss twins' 2017 application was rejected due to high fraud and market manipulation risks. Current Bitcoin ETF applications indicate the industry's maturity and compliance with regulations, considering past experiences. Increased regulations and improved infrastructure in the future could facilitate more institutional participation and growth.
Statement from SEC Chairman Gary Gensler
SEC Chairman Gary Gensler stated on January 9 that there is no evidence or indication that unauthorized individuals who accessed the SEC's X account have accessed social media accounts, other systems, data, or devices.
Gensler emphasized that the SEC takes the security breach seriously and is investigating not only regulators but also crypto investors and marketplaces. He mentioned that assessments of whether additional security measures for commission staff are necessary are ongoing.
Gensler announced that the investigation into the matter is ongoing. According to Gensler, the individual who gained unauthorized entry on January 9 tweeted about the approval of spot BTC ETFs through the SEC's X account.
Statement from X Regarding the Incident
SEC contacted X to prevent unauthorized access. X announced that they promptly blocked unauthorized access to the account. President Gensler reminded that neither X nor any other social media account was used to announce developments.
Digital Turkish Lira Project: Central Bank's Initial Steps
Central bank published the Phase 1 Evaluation Report within the scope of the digital Turkish lira project. The report indicates that the efforts revolve around architectural design, technical tests, and general principles. However, it was emphasized that, at this stage, the project does not yet have an official nature.
The digital Turkish lira system is designed to integrate with digital identity and public services, progressing accordingly. Each user will have a unique "MOTA" value, serving as a label for digital Turkish lira accounts while preserving personal privacy.
Programmable Payments and Competition
Programmable payments play a significant role among the services provided by the digital Turkish lira. The central bank report suggests the emergence of a new sector focusing on smart contract writing with the digital Turkish lira.
Account Identification Mechanisms and Privacy
While emphasizing the creation of account identification mechanisms with the MOTA value, the report highlights the protection of personal privacy. However, it is acknowledged that financial intermediaries may have access to identity verification information with this value for legal transactions.
Hardware wallets are targeted for the secure storage and use of the digital lira. This is expected to contribute to the development of the local hardware wallet market and the emergence of manufacturers. Expectations for users and institutions have reached a high level with the development of the digital Turkish lira.
Bonus: What Happens to Crypto Assets When You Die?
As crucial as the security of crypto assets is the issue of accessing them in the event of the owner's death. According to Glassnode's 2020 data, it is estimated that 10% of Bitcoin's circulating supply is permanently lost, attributed to neglected security measures.
Inheriting Crypto Assets
Users looking to secure their assets need to determine the correct approach to accessing crypto assets. Selecting the right person is a challenging process for everyone in terms of trust and technological knowledge.
When leaving crypto assets as an inheritance, considering both trust in the chosen heir and their level of technological knowledge is crucial. Trusting multiple individuals can prevent theft but carries the risk of system collapse in case of an error.
The person leaving the assets should determine the heir's location and plan access steps to the assets. Safely storing and backing up copies of necessary passwords and key information is crucial to provide access to the assets.