GM, frens! Ambire here with our weekly newsletter. The market looks way more lively this week, and that’s why we’ll be talking about crypto stocks and ETFs, EU Data Act potentially killing crypto in Europe, Simpsons airing an NFT themed episode and BAYC ApeFest event blinding (quite literally) its attendees. Plus we’re sharing some Ambire Wallet browser extension teasers!

Let’s get down to it:

Crypto stocks are PRINTING due to ETF optimism

Crypto stocks are rallying due to the anticipation of a Bitcoin and Ethereum exchange-traded fund (ETF) being approved by the U.S. Securities and Exchange Commission (SEC). This has sparked a surge in stock prices for companies like MicroStrategy, Coinbase, Marathon Digital, and Galaxy Digital, all of which have seen double-digit gains.

Riot Platforms and Marathon Digital are leading the pack with almost 10% and over 17% increases, respectively. This rally is not unique to the stock market, as Bitcoin itself has also seen a 6.4% increase before settling around 1.5% higher.

However, the real driving force behind this rally may be different than what we've seen in previous bull runs. According to some analysts, there's a pretty big gap between the demand for bets on Bitcoin going up and the demand for bets that it will go down. In fact, it's the widest margin we've seen in two-and-a-half years! This suggests that people really believe in the potential for some serious gains. It might also explain why these stocks are rallying even more than Bitcoin itself.

Coinbase, one of the largest cryptocurrency exchanges, has also contributed to this rally after reporting higher-than-expected revenue over the last quarter. This surge in stock price, which has seen a 15% increase in just one week, is further fueled by the company's beat on loss per share estimates.

Meanwhile, MicroStrategy continues to see impressive gains since the start of the year, with a whopping 260% increase. The BTC-maxxi-led company has been acquiring massive amounts of Bitcoin and even reported a net loss of $143 million in their recent earnings report due to impairment losses on their digital asset holdings. However, this hasn't stopped investors from keeping an eye on the company's acquisition of more than 6,000 bitcoins between June and September.

Overall, the market seems reinvigorated, but is this rally going to last? With the ongoing speculation around the approval of these ETFs, some are cautious about the potential for a market crash once this hype dies down.

We can't know for sure how long this rally will last, but one thing is certain - the crypto industry is evolving and maturing. With more institutional investors getting involved and regulatory bodies starting to take it seriously, the future looks even more promising than ever.

BlackRock takes a bold step into Ethereum

According to new information, BlackRock has recently applied for a Spot Ethereum ETF which has caused a big stir in the space. This move by the Wall Street giant was observed after documents were uploaded to Nasdaq's website showcasing their application for a “proposed rule change for listing and trading shares of the iShares Ethereum Trust ("Trust") under Nasdaq Rule 5711(d) (“Commodity-Based Trust Shares”).

This is not the first time BlackRock has shown interest in the crypto world, as they had previously registered documents for the iShares Ethereum Trust on the Delaware Department of State Corporations Division website. This sparked speculations that they would be applying for an Ethereum Spot ETF, which turned out to be true.

Interestingly, BlackRock's approach for the Ethereum ETF application was a bit more rushed compared to when they applied for a Bitcoin Spot ETF. For Bitcoin, they registered documents first and then sent the application to the SEC a week later. However in this case with Ethereum, they took immediate action and submitted the ETF application on the same day as registering documents.

This further solidifies the growing acceptance and interest in crypto, particularly Ethereum. Many experts have speculated that Ethereum is a strong contender for the next big ETF approval, and BlackRock's application only adds to that narrative.

Ethereum, and by extension the Ethereum ecosystem including all ERC-20 tokens have the potential to disrupt traditional financial markets, and it seems like BlackRock wants a piece of that action. As the Ethereum ecosystem continues to grow and evolve, we can expect more institutions and big players like BlackRock to jump on board.

EU Data Act and potential impact on smart contracts

The European Parliament recently voted to approve the Data Act, a legislation aimed at regulating the sharing of data. While the act received overwhelming support with 481 votes in favor and only 31 against, it contains a controversial clause that has raised concerns within the crypto community.

Mainly, one of the provisions in the bill states that automated data-sharing agreements, commonly known as smart contracts, must be capable of being safely terminated. This has caused alarm among organizations and individuals involved in blockchain tech and crypto.

Since immutability (the ability to not be changed or altered) is one of the main features of blockchain technology, this clause could potentially make most smart contracts unlawful in the EU. This poses a challenge for organizations using any blockchain as a means of data sharing.

The July 7 version of the bill mentioned "smart contracts" broadly, without specifying if it referred to privately owned and permissioned data records. This ambiguity led to concerns being raised by organizations linked to popular blockchains such as Stellar, Polygon, NEAR, and Cardano. In an open letter addressed to the EU Parliament, these organizations expressed their concerns about the potential impact on smart contracts and called for further clarification on the matter.

The final version of the bill will now need formal approval from the European Council, which comprises the 27 member nations' heads of state. It remains to be seen if any changes or clarifications will be made regarding this controversial clause before it becomes law.

But in case it would, this would a huge setback for the growth and adoption of blockchain technology in Europe, as smart contracts are a fundamental part of decentralized applications and the functioning of many blockchains. It could also lead to legal challenges and uncertainties for businesses operating in the EU that rely on smart contracts.

Ambire Wallet development update: Teasers for the browser extension

As we near the end of 2023, it’s time to look back and reflect on what we have achieved this year. We also thought, why not give you a quick update on what is happening with Ambire Wallet? The web wallet and the mobile apps are smashing it, and we’re working very hard on the development of the wallet extension - coming to a web browser near you soon!

Check out the full update:

Simpsons air an NFT-themed episode

The Simpsons, one of the most popular American TV shows, recently aired a Halloween special episode that featured NFTs and blockchain technology. Titled "Wild Barts Can't Be Token," the special took a humorous approach toward NFTs.

During the episode, Marge rescues Bart from the digital world, where he had turned into an NFT. The mayor of Springfield also embraced the trend and decided to convert all the city's art into digital form.

The episode mocks some of the most popular NFT collections, such as Beeple and Bored Ape Yacht Club, by suggesting that not all digital art is valuable. However, it cleverly portrays some NFTs as highly sought after and worthy of high prices.

This isn't the first time The Simpsons mentioned crypto on their show. They've had episodes like "Frinkcoin" with Jim Parsons as a guest, where he explains crypto and blockchain, and "The King of Nice" where Krusty the Clown loses money on NFTs. Matt Groening, the creator of The Simpsons, has also incorporated crypto themes into his other shows, like Futurama.

Overall, the NFT community isn't overly happy with the show's depiction of NFTs, but hey, at least it brought a bit of mainstream attention back to the industry.

The market's reaction to the episode was also noteworthy, as prices for Bored Ape Yacht Club NFTs saw a slight increase right after the episode aired.

BAYC event flashbangs degens with UV radiation

BAYC or Bored Ape Yacht Club recently held a highly-anticipated ApeFest event in Hong Kong, but it didn't go very well for some of their apes.

After the party and celebrations, attendees started experiencing eye discomfort, vision problems, and skin irritation. In response to these complaints, Yuga Labs, the company behind BAYC, launched an investigation and found that UV-A-emitting lights in one corner of the event were responsible for these issues.

UV-A is a type of electromagnetic radiation that can penetrate the skin and cause immediate tanning. It is also known to contribute to skin aging, wrinkles, and potentially even skin cancer development, according to WHO. The seriousness of this issue was highlighted when one attendee, Asif Kamal, served a legal notice to Yuga Labs, claiming eye damage from the event.

In light of this, Yuga Labs has reached out to affected attendees and is urging them to seek medical attention. They have also asked those impacted to contact them on social media platform X for further assistance.

Unfortunately, this is not the only issue that Yuga Labs has had to deal with recently. The company faced criticism for laying off a portion of its staff and for racist posts made by their former social lead.

But in the end, will that bother the Bored Apes and their dedicated (some might say, obsessed) community? Probably not. In the meantime, Yuga Labs is too busy trying to rectify all this mess so nothing comes back around to bite them in the future.

Other worthy reads

A good thread on speculation by 3xLiquidated:

Community warning about a potential FTX asset selloff:

Some of the current narratives by Viktor:

That's all for now, frens.

We'll see you next week. And remember, the market conditions are temporary, but our commitment to building a better DeFi is here to stay. Thanks for joining us, and we look forward to seeing you back next week. Cheers!

Yours, The 🔥 Team

Brought to you by Ambire: The Only Web3 Wallet That You’ll Need!