Spot Bitcoin ETFs Pose Risks, OKX to Discontinue Mining Pool Services: Market Update

·

Headlines

CFTC Chair Warns of Risks in Spot Bitcoin ETFs, Calls for Federal Legislation

U.S. Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam expressed concerns over risks associated with recently approved spot Bitcoin ETFs during an American Bar Association event. He emphasized the urgent need for federal legislation to regulate cryptocurrencies.

Behnam stated, "I worry that the regulatory approval of Bitcoin ETPs introduces risks, as retail and institutional investors might misinterpret technical approval as comprehensive oversight of digital assets. Federal legislation has never been more critical." He also highlighted unresolved issues like conflicts of interest and customer protections in the opaque digital asset market.

OKX to Phase Out Mining Pool Services

OKX announced via official notice its decision to discontinue mining pool products and related services due to operational adjustments. Key dates:


Market Snapshot

Latest prices (as of reporting):


Regulatory Developments

SEC Commissioner Highlights Fear of Decentralization

SEC Commissioner Hester Peirce remarked, "Regulators are deeply apprehensive about decentralization because it removes their control. Yet, this very feature strengthens financial system resilience."

Hong Kong SFC Alerts Public to Suspicious Crypto Products

The Securities and Futures Commission (SFC) warned against two high-yield staking programs—Floki Staking Program and TokenFi Staking Program—promising 30%-100% annual returns. Neither product is SFC-approved, and their managers failed to substantiate yield claims.

South Korea Advances Crypto Regulations

South Korea’s Financial Intelligence Unit (FIU) plans amendments to the Special Financial Information Act by early February, introducing stricter bank standards for issuing real-name accounts to virtual asset operators. The revised rules will align with the forthcoming Virtual Asset User Protection Act (effective July 2024).


Blockchain Innovations

Musk’s xAI Aims to Raise $6B to Compete with OpenAI

Elon Musk’s xAI seeks $6 billion in global funding at a $20B valuation, targeting Middle Eastern sovereign wealth funds and Asian investors. Morgan Stanley is coordinating the raise to support generative AI development.

De.Fi Announces "DEFI" Token Launch and Airdrop

Following investment by 21Shares, De.Fi unveiled its DEFI token and Season 1 airdrop. Staking DEFI tokens will qualify users for rewards, with snapshots pending.

Friend.tech Concludes Test Phase Rewards

The Web3 social platform distributed the final 90M test-phase points this week, reserving 10M for its upcoming V2 release.


Crypto Spotlight

BlackRock’s Bitcoin ETF Surpasses $2B AUM

BlackRock’s IBIT became the first spot Bitcoin ETF to exceed $2B in assets, holding 49,952 BTC. Fidelity’s FBTC (44,000 BTC) is poised to follow.


Economic Trends

Mixed U.S. Stock Market Close


Crypto Glossary

What Are Crypto Hedge Funds?

Crypto hedge funds pool investor capital to strategically trade digital assets, employing tactics like derivatives trading. They bridge investors and digital markets while mitigating risks inherent to volatile cryptocurrencies.

👉 Explore crypto investment strategies


FAQ

Q: Why is the CFTC concerned about Bitcoin ETFs?
A: Chair Behnam fears retail investors may conflate ETF approvals with full regulatory oversight, exposing them to unchecked market risks.

Q: When will OKX mining services fully shut down?
A: All services terminate on February 26, 2024.

Q: How can users qualify for De.Fi’s airdrop?
A: Stake DEFI tokens and stay active—rewards are snapshot-based.

👉 Learn more about secure trading

Disclaimer: Content is informational only. Invest responsibly and assess risks thoroughly.


### **SEO Keywords**:  
- Spot Bitcoin ETF  
- OKX mining pool  
- Crypto regulations  
- Blockchain innovations  
- BlackRock Bitcoin ETF  
- Crypto hedge funds