BlackRock revises BTC ETF filing, El Salvador’s crypto citizenship trending, and more: Hodler’s Digest, Dec. 10-16
Top Stories This Week
BlackRock revises spot Bitcoin ETF to enable easier access for banks
BlackRock has revised its spot Bitcoin exchange-traded fund (ETF) application to make it easier for Wall Street banks to participate by creating new shares in the fund with cash rather than just crypto. The new in-kind redemption “prepay” model will allow banking giants such as JPMorgan or Goldman Sachs to act as authorized participants for the fund, letting them circumvent restrictions that prevent them from holding Bitcoin or crypto directly on their balance sheets.
El Salvador expects to sell out Bitcoin ‘Freedom Visa’ by end of year
El Salvador’s National Bitcoin Office says its $1 million Freedom Visa program has already received hundreds of inquiries since its launch on Dec. 7 and expects it to sell out before the end of 2023. Launched by the local government in partnership with stablecoin issuer Tether, the Freedom Visa is a citizenship-by-donation program that grants a residency visa and pathway to citizenship for 1,000 people willing to make a $1 million Bitcoin or Tether donation to the country. The program is limited to 1,000 slots per calendar year.
Sam Bankman-Fried’s lawyer says FTX fraud trial was “almost impossible” to win: Report
The lawyer responsible for Sam “SBF” Bankman-Fried’s criminal trial defense has admitted that the case was “almost impossible” to win from the outset. During an interview, Stanford Law School professor David Mills said he recommended the legal defense of SBF admit to the allegations of witnesses and state prosecution and convince the jury that Bankman-Fried intended to save the company. Mills also disclosed that he had agreed to lend his expertise to Bankman-Fried’s defense at the behest of the FTX CEO’s parents, and described Bankman-Fried “as the worst person I’ve ever seen do a cross-examination.”
Yearn.finance pleads arb traders to return funds after $1.4M multisig mishap
Yearn.finance is hoping arbitrage traders will return $1.4 million in funds after a multisignature scripting error resulted in a large amount of the protocol’s treasury being drained. The error occurred while Yearn was converting its yVault LP-yCurve — earned from performance fees on vault harvests — into stablecoins on the decentralized exchange CoW Swap. Yearn suffered significant slippage when it received 779,958 DAI yVault tokens from the trade, resulting in a 63% drop in the liquidity pool value.
SEC pushes deadline for decision on Invesco Galaxy spot Ethereum ETF to 2024
The United States Securities and Exchange Commission has delayed its decision on whether to approve or reject a spot Ether ETF proposed by Invesco and Galaxy Digital. The companies filed the spot ETH ETF application in September. The proposed spot crypto investment vehicle is one of many being considered by the commission, which, to date, has never approved an ETF with direct exposure to Ether, Bitcoin or other cryptocurrencies.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $42,222, Ether (ETH) at $2,250 and XRP at $0.62. The total market cap is at $1.6 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Bonk (BONK) at 131.38%, WOO Network (WOO) at 78.34% and Helium (HNT) at 77.66%.
The top three altcoin losers of the week are Terra Classic (LUNC) at -15.84%, Sei (SEI) at -14.48% and Pepe (PEPE) at -12.10%.
For more info on crypto prices, make sure to read Cointelegraph’s market analysis.
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Most Memorable Quotations
“I’m a big fan of this stablecoin called Tether…I hold their treasuries. So I keep their treasuries, and they have a lot of treasuries.”
Howard Lutnick, CEO of Cantor Fitzgerald
“This [blockchain] can be leveraged to ensure proper recycling and handling of waste materials by tracking them from origin to destination.”
Dominic Williams, founder and chief scientist at Dfinity
“Digital currencies are the natural evolution of the world’s payment system, and Europe […] is paving the way for this inevitable shift.”
Michael Novogratz, CEO of Galaxy Digital
“I thought it was almost impossible to win a case when three or four founders are all saying you did it.”
David Mills, criminal trial attorney of Sam Bankman-Fried
“Our bipartisan bill is the toughest proposal on the table cracking down on crypto’s illicit use and giving regulators more tools in their toolbox.”
Elizabeth Warren, U.S. senator
“We have to understand that the Central Bank is a scam. What Bitcoin represents is the return of money to its original creation, the private sector.”
Javier Milei, president of Argentina
Prediction of the week
‘No excuse’ not to long crypto: Arthur Hayes repeats $1M BTC price bet
Bitcoin and altcoins are a no-brainer bet in the current macro climate, Arthur Hayes says. In a post on X (formerly Twitter) on Dec. 14, the former CEO of exchange BitMEX said that investors have “no excuse” to short crypto.
Going long on crypto is the key to success as markets bet on the United States Federal Reserve lowering interest rates next year, Hayes argues. “At this point, there is no excuse not to be long crypto,” part of his post stated.
“How many more times must they tell you that the fiat in your pocket is a filthy piece of trash,” he wrote. Hayes further reiterated a longstanding $1 million BTC price prediction as a result of macro tides eroding the value of national currencies.
FUD of the Week
Ledger patches vulnerability after multiple DApps using connector library were compromised
The front end of multiple decentralized applications using Ledger’s connector were compromised on Dec. 14. Ledger announced that it had fixed the problem three hours after the initial reports about the attack. Protocols affected include Zapper, SushiSwap, Phantom, Balancer and Revoke.cash, stealing at least $484,000 in digital assets. The attacker utilized a phishing exploit to gain access to the computer of a former Ledger employee. The hack sparked criticism about Ledger’s security approach.
Bitcoin inscriptions added to US National Vulnerability Database
The National Vulnerability Database flagged Bitcoin’s inscriptions as a cybersecurity risk on Dec. 9, calling attention to the security flaw that enabled the development of the Ordinals Protocol in 2022. According to the database records, a datacarrier limit can be bypassed by masking data as code in some Bitcoin Core and Bitcoin Knots versions. As one of its potential impacts, the vulnerability could result in large amounts of non-transactional data spamming the blockchain, potentially increasing network size and adversely affecting performance and fees.
SafeMoon falls 31% in five hours after filing for Chapter 7 bankruptcy
The token of decentralized finance protocol SafeMoon has fallen 31% in five hours after the company behind it filed for bankruptcy. SafeMoon officially applied for Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” on Dec. 14. The latest blow comes only a month after the U.S. Securities and Exchange Commission charged SafeMoon and its executives with violating securities laws in what the regulator described as “a massive fraudulent scheme.” Several former SafeMoon supporters expressed frustration on Reddit regarding the bankruptcy, alleging they were rug-pulled by the SafeMoon developers.
Read also
Top Magazine Pieces of the Week
Terrorism & Israel-Gaza war weaponized to destroy crypto
Draconian anti-crypto legislation could soon be passed to solve a terrorism funding “crisis” that many argue is vastly overstated.
Korean crypto firm raises $140M, China’s $1.4T AI sector, Huobi battle: Asia Express
Line Next raises $140M, China’s AI market surpasses $1.4T, Sinohope stagnates due to stuck FTX deposit, and more!
J1mmy.eth once minted 420 Bored Apes… and had NFTs worth $150M: NFT Creator
NFT collector J1mmy.eth trades like Warren Buffett, his collection peaked at $150 million, and he once minted 420 Bored Apes with Pranksy.
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Building a permanent US strategic Bitcoin reserve would likely require targeted legislation rather than executive action, according to VanEck’s head of digital assets, Matthew Sigel. Speaking at Bitcoin 2025 in Las Vegas, Sigel said the most viable path forward may involve inserting Bitcoin mining incentives into the congressional budget reconciliation process.
According to Sigel, the most effective path to growing a US strategic Bitcoin reserve would be through targeted amendments to congressional budget legislation. These could include tax credits for mining companies that use methane gas and other incentives aimed at encouraging miners to share a portion of their mined BTC with the federal government.
He argued that such an approach would allow the reserve to grow organically over time. Sigel also highlighted the limitations of executive actions in achieving this goal:
“The problem with executive action is that it’s going to prompt lawsuits. And anything over $100 million is going to get sued by the Elizabeth Warrens of the world. So, I would say start with something maybe in the Exchange Stabilization Fund for $100 million.”
US President Donald Trump established the US Bitcoin Strategic Reserve through a March 7 executive order. According to the order, the US government can only acquire Bitcoin through budget-neutral strategies or asset forfeiture, prompting a range of different ideas on how to add to the government’s stockpile of nearly 200,000 BTC.
Related: Bitcoin’s new highs may have been driven by Japan bond market crisis
Lawmakers, officials pitch different ideas to grow strategic Bitcoin reserve
Wyoming Senator Cynthia Lummis, the US lawmaker who introduced legislation for a Bitcoin strategic reserve in July 2024, proposed converting a portion of the gold certificates held by the US Treasury to Bitcoin.
Converting gold to Bitcoin would allow the US government to purchase more Bitcoin without incurring a cost to the taxpayer, Lummis said.
Bo Hines, the executive director of the President’s Council of Advisers on Digital Assets, echoed the idea in March 2025.
Hines called on the US Treasury to revalue its gold holdings, which are currently priced at just $42.22 per troy ounce, and convert a portion of those gains to Bitcoin. This strategy would also be budget-neutral, Hines said.
The price of gold reached an all-time high of $3,500 per ounce in April but experienced a minor pullback to around $3,300 on May 27.
Magazine: TradFi fans ignored Lyn Alden’s BTC tip — Now she says it’ll hit 7 figures: X Hall of Flame
US President Donald Trump supports the BITCOIN Act and has a team of experts in the White House working to roll out landmark digital asset legislation in the coming weeks, according to Wyoming Senator Cynthia Lummis.
Speaking at the Bitcoin 2025 conference in Las Vegas, Nevada, Lummis said she is bringing the BITCOIN ACT to the “attention of the American people and the world,” adding that, “President Trump supports the bill.”
In March, Lummis reintroduced the BITCOIN Act — landmark legislation that directs the US government to acquire 1 million Bitcoin (BTC) over five years. The acquisitions would be financed using existing funds within the Federal Reserve System and the Treasury Department.
As Cointelegraph reported, the Trump administration has reiterated the need to use “budget-neutral ways” to acquire Bitcoin without burdening taxpayers.
At the Bitcoin Conference, Lummis said the Trump administration has a team working on “digital asset issues,” including legislation on stablecoins, market structure and the Bitcoin Strategic Reserve.
“They will probably roll out in that order,” she said.
“The Senate Banking Committee has passed the stablecoin bill out of committee,” said Lummis, adding:
“We’re getting close to being ready to have it on the floor. We’ve worked for untold hours with the minority party to satisfy them, and we should be voting on it the week before we get back from this break.”
Related: Senator Lummis’ new BITCOIN Act allows US reserve to exceed 1M Bitcoin
GENIUS Act on stablecoins is “going to pass,” says White House crypto czar
The White House seems to be in alignment with Senator Lummis.
Last week, Trump’s top crypto adviser, David Sacks, said the GENIUS stablecoin bill is “going to pass” the Senate with bipartisan support after clearing a key procedural vote on May 19.
GENIUS refers to the Guiding and Establishing National Innovation for US Stablecoins Act, possibly the most comprehensive federal push to establish a legal framework for dollar-pegged stablecoins.
Stablecoins have become one of the most prominent use cases for blockchain technology, with some industry advocates arguing that they could help extend the US dollar’s dominance as the global reserve currency.
Collateralized, dollar-backed stablecoins like Tether’s USDt (USDT) and Circle’s USDC (USDC) account for more than 85% of the $250 billion market, according to CoinMarketCap.
Related: Former CFTC chair criticizes STABLE Act amid calls for urgent regulatory clarity
Peter Mandelson, the UK ambassador to the United States, has told Sky News he “regrets” his association with paedophile Jeffrey Epstein.
Lord Mandelson‘s links to the late billionaire were exposed in a 2019 report by JP Morgan bank, filed in a New York court.
Epstein killed himself in August of that year while awaiting trial on charges of sex trafficking minors.
He had previously served an 18-month sentence after pleading guilty to procuring a person under the age of 18 for prostitution.
Whilst serving that sentence, the JP Morgan report suggests that Mr Mandelson stayed at Epstein’s Manhattan flat.
Epstein wrote to his private banker on 17 June 2009: “Peter will be staying at 71st over weekend…”
At the time, Lord Mandelson was the Business Secretary in the UK government under then-Prime Minister Gordon Brown. He was appointed UK ambassador to the United States in December 2024.
Jeffrey Epstein. File pic: New York State Sex Offender Registry via AP
Sky News asked him if he did, indeed, stay at Epstein’s flat while the disgraced financier was in jail.
He replied: “I’m not answering any questions about him. My knowledge of him is something I regret, I wish I’d never met him in the first place.”
Asked why he had an association with Epstein whilst he was in jail, Lord Mandelson replied: “Why did many people meet him? He was a prolific networker. And I wish I’d never met him in the first place.”
Read more from Sky News:
Manhunt after two people shot dead in US park
Kremlin accused Trump of ’emotional overload’
As US ambassador, Lord Mandelson represents Britain’s interests in Washington and has vowed to treat Donald Trump‘s administration with “respect, seriousness and understanding of where they are coming from politically”.
This comes after Lord Mandelson described the US president as a “danger to the world”, for which he apologised earlier this year.
He told the Alain Elkann Interviews podcast in 2019: “What Donald Trump represents and believes is an anathema to mainstream British opinion.”
US President Donald Trump, vice president JD Vance, and UK ambassador to the US Peter Mandelson. Pic: AP
Mr Mandelson added: “Even those who have a sneaking admiration for Donald Trump because of his personality, nonetheless regard him as reckless, and a danger to the world.”
But in January this year, Lord Mandelson said he now considered his remarks “as ill-judged and wrong”.
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