The Week in Review: Investment firm says layer-2 industry poised for growth, and SBF sentenced

The highlights from this week’s headline grabbers. All the important crypto news, numbers and events in three bullet points or less. 

Layer-2 solution industry on Ethereum could skyrocket, says investment firm

• Investment firm Van Eck says that layer-2 (L2) solutions built on Ethereum could reach a $1 trillion valuation by 2030 given their use cases in gaming, banking and the metaverse. 
  

• These estimates are based on research in which the firm evaluated 46 L2 networks across five key areas and predicted “thousands” of rollups to eventually emerge, according to CoinDesk. 
  

• While the industry will grow, researchers expect competition to be fierce in this market, which could have an impact on the prices of the native cryptos in these protocols.

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US Department of Justice moves Bitcoin worth $2 billion 

• The DOJ yesterday reportedly moved more than 30,000 Bitcoin, linked to Silk Road, to a US crypto exchange. 
  

• The last confirmed sale of Bitcoin by the US government was in March 2023 when it sold roughly 50,000 Bitcoin, also linked to the Silk Road seizure. 

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Sam Bankman-Fried sentenced to 25 years in prison

• The founder of FTX, the defunct crypto exchange, was sentenced to 25 years in prison on Thursday last week after being found guilty of fraud.
  
  
• Bankman-Fried told ABC News that he feels remorse for his crimes. “It’s most of what I think about each day,” he said. “I never thought that what I was doing was illegal. But I tried to hold myself to a high standard, and I certainly didn’t meet that standard.” 
  

• “I’m haunted every day by what was lost. I never intended to hurt anyone or take anyone’s money. But I was the CEO of FTX, I was responsible for what happened to the company, and when you’re responsible it doesn’t matter why it goes bad. I’d give anything to be able to help repair even part of the damage,” Bankman-Fried said.

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SEC reportedly wants to label ETH a security  

• The Securities and Exchange Commission (SEC) in the US reportedly wants to classify Ethereum as a security, not a commodity like Bitcoin. It has raised some questions whether this will impact plans from BlackRock and other asset managers to create an Ethereum ETF, similar to the Bitcoin ETFs. 
  

• The SEC has received eight applications to bring a spot Ethereum ETF to the market. The final decision by the regulator is due in May, with many experts saying it’s unlikely the SEC will approve the filings.  
  

• Asked on Fox News whether an ETH ETF is still possible even if the SEC gets its way, Larry Fink, CEO of BlackRock, said, “I think so.” 

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London Stock Exchange to list Bitcoin and Ethereum investments

• The London Stock Exchange announced it will list Bitcoin and Ethereum exchange-traded notes (ETNS) on the exchange at the end of May. 
  

• “We have decided to launch the market in Crypto ETNs on 28 May 2024 to enable the maximum number of issuers to be present in the market on the first day of trading,” the LSE said in a release.
  
  
• An ETN will mirror the performance of Bitcoin or Ethereum, and will be listed on the LSE for investors to buy and sell like a regular stock. The ETN’s value would track the price of Bitcoin, allowing investors to gain exposure to Bitcoin’s price movements without directly owning the cryptocurrency.

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TL;DID read

Your questions about the Bitcoin halving answered

The Bitcoin halving is expected to happen around 21 April. We’ve tackled the most pressing questions around this unique event, which only happens once every four years. Find answers HERE. 

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Economic events to look out for in April 

March was an eventful month in the crypto market, with Bitcoin soaring to a new all-time high of $73,600. Many other cryptocurrencies rode the apparent wave of optimism, but it wasn’t all smooth sailing, with bouts of volatility throughout March. With the Bitcoin halving set to take place later in April, the upcoming month promises to deliver as much, if not more excitement. But where will the price go?
READ MORE. 

*This information should not be construed as a solicitation to trade. All opinions, news, research, analysis, prices or other information is provided as general market commentary for information purposes only and is not investment advice or recommendation. Luno always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.