ETF Rethink Trips Up Bitcoin | North Korean Hackers Stole $600 Million In Crypto In 2023

Doubts Surface As SEC Deadline On Spot Bitcoin Funds Approaches

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Nina Bambysheva Senior Reporter, Forbes Money & Markets
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Steven Ehrlich Director, Forbes Digital Assets
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WILL THEY, WON’T THEY?

Bitcoin retreated 6% from its New Year's high of $45,919 to $43,276 on Friday amid a frenzy of speculation over whether the U.S. Securities and Exchange Commission will approve exchange-traded funds tied directly to the world’s largest cryptocurrency, more than a decade after initial attempts were rejected. Other major tokens also fared poorly, with ether, solana and XRP declining 2%-7%.

The SEC is expected to approve or reject applications from several asset managers, including BlackRock, Fidelity and Grayscale, to launch a spot bitcoin ETF as soon as January 8.

However, crypto firm Matrixport said in a Tuesday note it expects the agency to reject all applications this month, citing SEC Chair Gary Gensler’s critical view of crypto. “From a political perspective, there is no reason to approve a bitcoin spot ETF that would legitimize bitcoin as an alternative store of value,” Markus Thielen, the firm’s head of research, writes.

Crypto bulls hope that the introduction of bitcoin ETFs will increase interest in owning digital assets and drive prices up, but some analysts forecast a sell-the-news pullback once the funds become available.

NEW IRS MANDATE FOR CRYPTO TRANSACTIONS OVER $10,000

The controversial tax reporting requirement, which obliges brokers to report cryptocurrency transactions exceeding $10,000 to the Internal Revenue Service, came into effect on January 1. According to the rule, brokers will report personal information related to these transactions, including the sender’s name, address and taxpayer identification number, within 15 days. Here’s what else you need to know.

Also: How Are Cryptocurrency Profits Taxed On Your 2023 Taxes?

CURRENT PRICE OF TOP 5 COINS (7-Day % Change)

Coin

Price

Percent Change

Bitcoin (BTC)

$43,653

4.3%

Ether (ETH)

$2,237

2.6%

Tether (USDT)

$1.00

0%

Binance Coin (BNB)

$315

2%

Solana (SOL)

$98

5.3%

Source: Forbes Digital Assets. Prices as of 3:07 p.m. on January 5, 2024.

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NORTH KOREAN CRYPTO HACKERS SWIPED $600 MILLION IN 2023

Hackers tied to North Korea stole at least $600 million in cryptocurrency last year—almost a third of all funds stolen in crypto attacks in 2023—according to a report by blockchain intelligence firm TRM Labs. Since 2017, Pyongyang-linked actors have made off with nearly $3 billion worth of digital currencies.

North Korea conducts nearly all its attacks by stealing private keys and seed phrases, which are critical security elements of digital wallets. Hackers transfer the victims’ tokens to wallets controlled by North Korean operatives. They then get swapped mostly for tether or tron and converted to cash using over-the-counter brokers.

ELSEWHERE

JPMorgan, Goldman In Talks With Grayscale About Bitcoin ETF Role

Bloomberg