Biggest News in Crypto This Week: Michael Saylor Buys more BTC | Ethereum ETFs Launch | Paradigm to Invest $850M
Before spot Ethereum ETFs can start trading their S-1 filings must be approved, and Gensler said these are being handled at the “staff level.” When asked directly whether ETH is a commodity, Gensler remained noncommittal, reflecting the SEC’s uncertain stance on the classification of the digital asset.
In contrast, Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam definitively stated, “yes,” when asked about ETH being a commodity. The distinction holds weight in determining the appropriate regulatory body for various cryptocurrencies.
The SEC will oversee securities, while the CFTC is set to regulate commodities. While Gensler has repeatedly suggested most digital assets fall under securities purview, he has refrained from specifically identifying them beyond those already targeted by the SEC in enforcement actions.
MicroStrategy Plans $500 Million Convertible Notes Offering to Boost Bitcoin Holdings
Nasdaq-listed business intelligence firm MicroStrategy has announced plans to raise $500 million through convertible senior notes due in 2032 in a private offering targeted at institutional investors in a bid to fuel fresh Bitcoin (BTC) purchases.
The offering will be subject to market conditions and could be increased by an additional $75 million. The notes will carry interest paid twice a year and will convert to MicroStrategy stock if certain conditions are met.
Proceeds from the sale will be used primarily to buy more Bitcoin, according to a company press release, as well as for “general corporate purposes.” MicroStrategy is the world’s largest corporate Bitcoin holder, with 214,400 BTC worth over $14 billion on its balance sheet.
Specifics of the offering, including the interest rate and conversion terms, will be determined closer to the sale date, with MicroStrategy noting it “expects that the reference price used to calculate the initial conversion price for the notes will be the U.S. composite volume weighted average price of MicroStrategy’s class A common stock from 9:30 am through 4:00 pm EDT on the date of pricing.”
Paradigm Raises $850 Million to Bolster Early-Stage Crypto Ventures
Cryptocurrency venture capital firm Paradigm has announced the closing of its third fund, securing $850 million to invest in early-stage crypto projects.
In a blog post unveiling the new fund, co-founder Matt Huang underscored the team’s strengthened conviction, stating that “crypto is now a main character on the world’s political stage.”
The conviction reflects the growing prominence of crypto regulation in the upcoming U.S. presidential election and the looming June 30th deadline for Europe’s MiCA stablecoin framework.
Paradigm has a successful track record in early-stage investments as the firm participated in the seed round for decentralized exchange Uniswap and spearheaded the Series B round for Flashbots last year.
Paradigm’s prior fund, launched in November 2021, secured a staggering $2.5 billion. However, the firm’s investment history hasn’t been without blemishes, as it famously invested $278 million in collapsed cryptocurrency exchange FTX.
