The European Central Bank (ECB) has once again lashed out at Bitcoin, claiming that the recent approval of spot BTC ETFs changes nothing.

The central bank’s officials said Bitcoin’s fair value is zero, and the latest boom will spark massive collateral damage.

They claimed Bitcoin falls short in generating cash flow or other value-based returns, making it a poor investment.

While the ECB’s skepticism towards Bitcoin is not new, Nigeria is also growing skeptical of digital assets and crypto exchanges.

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In an effort to crack down on currency speculation while the naira tumbles to record lows, Nigeria has ordered telecom companies to restrict consumer access to the websites of companies like Binance, Coinbase, and Kraken.

Here are this week’s important crypto stories:

ECB Slams Bitcoin Again
The European Central Bank (ECB) has reiterated its position on Bitcoin, stating that the approval of spot ETFs for the cryptocurrency does not change its unsuitability as a means of payment or investment.

“We disagree with both claims and reiterate that the fair value of Bitcoin is still zero,” the central bank wrote.

ETF approval for Bitcoin – the naked emperor’s new clothes (ECB Blog)

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Kraken Files to Dismiss SEC Lawsuit
Crypto exchange Kraken has filed a motion to dismiss a November lawsuit from the Securities and Exchange Commission that accuses the firm of failing to register with the agency and commingling customer funds. The exchange contended that the SEC’s enforcement action came as retaliation for political speech.

Kraken moves to dismiss SEC lawsuit, citing retaliation from ‘a politically compromised agency’ (Fortune)

Nigeria Blocks Major Crypto Exchanges
Authorities in Nigeria have blocked access to some of the world’s largest cryptocurrency exchanges as the government tries to crack down on currency speculation while the naira tumbles to record lows.

On Wednesday, the country’s telecom regulator ordered telecom companies to restrict consumer access to the websites of companies like Binance, Coinbase, and Kraken.

Nigeria blocks access to crypto exchanges in an effort to curb currency slide (The Financial Times)

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FTX Cleared to Sell Stake in AI Startup
A US judge has ruled that bankrupt crypto exchange FTX may sell its shares in artificial intelligence startup Anthropic.

US Bankruptcy Judge John Dorsey in Wilmington, Delaware, approved FTX’s proposal to sell the shares after FTX reached a compromise in court with a group of FTX customers that had opposed the sale.

Crypto exchange FTX to sell shares in AI startup Anthropic (Reuters)

Jack Dorsey’s Block Gains Big From Bitcoin Bet
Fintech company Block has reported a remeasurement gain of $207 million on its Bitcoin holdings. As of December 31, 2023, Block held approximately 8,038 BTC for investment purposes with a fair value of $340 million.

The Jack Dorsey-owned company made $66 million in gross profit on bitcoin sales last quarter through Cash App, a banking services platform, representing a 90% increase year over year.

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Jack Dorsey’s Block Is Sitting on $207M Gain on Its Bitcoin Bet (CoinDesk)

Reddit Now Holds Bitcoin
Social media platform Reddit has revealed investments in Bitcoin and Ethereum using some of its excess cash reserves. This was included in the SEC filings as part of its preparations for the company’s initial public offering (IPO).

Still, the exact amount invested in these leading cryptocurrencies remains undisclosed.

Reddit says it invested ‘excess cash reserves’ in Bitcoin, ether (Blockworks)

Crypto Super PAC Continues to Raise Funds
Crypto-friendly super PAC Fairshake received $6.8 million in funding last month, including $4.9 million from Gemini co-founders Cameron and Tyler Winklevoss. Fairshake has quickly become one of the most popular super PACs for crypto-friendly donors this election cycle.

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Crypto Super PAC Fairshake Raised $6.8 Million From Winklevoss Twins and VCs in January (Decrypt)

Major ETF Issuers Talk About Crypto in Miami Conference
The discussion on the spot Bitcoin ETFs was the most well-attended panel of the entire Exchange ETF Conference in Miami Beach, Florida, so much so that the staff ran out of the headphones attendees were provided with to listen to the speakers.

Crypto no longer outsider at famed Miami Beach ETF conference (Fox Business)

Retail Investors Were Behind Recent Crypto Rally
Retail investors were likely responsible for the strong crypto market rally in February, JPMorgan said in a recent research report.

The bank said that the anticipation of “the bitcoin halving event, the next major upgrade of the Ethereum network, and the prospect of approval of spot ether ETFs by the SEC in May” attracted retail participation.

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JPMorgan Sees Retail Traders Jump Back Into Crypto Markets in February (Bloomberg)

South Korean Province Collects $4.6M in Crypto Tax
South Korea’s most populated province, Gyeonggi, has collected $4.6 million from crypto tax evaders. Using a new system, the province found 5,910 people who owed more than $2262 each. The $4.6 million collected so far has been from only 2,390 people last year.

South Korean province implements digital system to track tax evaders’ crypto (Cointelegraph)

The Bottom Line
The ECB has reiterated its critical stance on Bitcoin, despite the recent approval of spot Bitcoin ETFs, maintaining that Bitcoin’s intrinsic value remains at zero. Meanwhile, Nigeria is taking steps to limit cryptocurrency engagement amid concerns over financial stability.

Source: Techopedia

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