Abu Dhabi’s Bold Move: Sovereign Wealth Fund Invests Heavily in Bitcoin ETFs

A transformative trend is unfolding in the cryptocurrency landscape. Mubadala Investment, the sovereign wealth fund of Abu Dhabi, has made a considerable investment in Bitcoin exchange-traded funds (ETFs). Recent reports indicate that the fund currently holds Bitcoin ETF assets valued at approximately $436 million.

Abu Dhabi’s strategic move is part of a broader institutional interest in Bitcoin, with the State of Wisconsin Investment Board recently revealing a $321 million investment in BlackRock’s iShares Bitcoin Trust ETF. Analysts forecast that 2025 will see an influx of institutional investors entering the Bitcoin market, building on this momentum.

The overall sentiment within the crypto market remains positive, especially following the recent political developments in the United States. There are strong beliefs that a change in leadership could lead to more crypto-friendly policies, significantly benefiting Bitcoin and other digital currencies.

As the U.S. clarifies its position on cryptocurrencies, other countries are advancing with their initiatives. Abu Dhabi’s investment serves as an indication of the growing global acceptance of Bitcoin as more sovereign wealth funds and governmental entities explore digital asset opportunities. This trend hints at a substantial increase in market adoption in the upcoming years.

BlackRock Takes Bitcoin Investment Global with New ETP Launch in Europe

BlackRock is expanding its footprint in the crypto arena with plans to introduce a Bitcoin exchange-traded product (ETP) in Europe. This strategy marks a significant extension of its operations beyond the U.S. where the iShares Bitcoin Trust (IBIT) has attracted over $58 billion in assets.

Switzerland has been chosen as the base for this new Bitcoin ETP, leveraging its favorable regulatory environment for cryptocurrencies. BlackRock is expected to initiate marketing activities for the product shortly. This decision aligns with Switzerland’s emerging reputation as a leading hub for digital assets.

Moreover, BlackRock has been diligently enhancing its presence in the cryptocurrency market globally. Last month, it launched a Bitcoin ETF in Canada, utilizing the Cboe Canada exchange under the ticker symbols IBIT and IBIT.U. This fund is structured to closely track Bitcoin’s market performance, similar to its counterpart in the U.S. The European ETP is anticipated to follow a comparable framework, offering a secure and regulated pathway for investors to gain exposure to Bitcoin.

The European crypto landscape, while expanding, still significantly trails the U.S. in terms of total market value. Despite housing over 160 crypto-tracking products, the European market’s valuation stands at $17.3 billion, markedly lower than the U.S. market’s $116.4 billion.

Regulatory frameworks are also reshaping Europe’s crypto future, with the Markets in Crypto-Assets (MiCA) regulation enforcing stricter rules on transparency, governance, and anti-money laundering. Major exchanges are in the process of obtaining MiCA licenses, positioning Europe for considerable growth in its cryptocurrency ecosystem.

21Shares Plans to Introduce the U.S.’s First Ethereum ETF with Staking Rewards

A potential revolution is on the horizon in the U.S. crypto investment sector. Cboe BZX Exchange has submitted a proposal to the Securities and Exchange Commission (SEC) aimed at introducing staking capabilities in the 21Shares Core Ethereum ETF. Should this proposal receive approval, it would mark 21Shares as the pioneer in offering a spot Ethereum ETF in the U.S. that also provides staking rewards.

This proposed rule change, filed under Form 19b-4, would enable a portion of the ETF’s Ethereum assets to be staked, allowing investors not only to hold ETH but also to earn passive income through staking activities.

Staking involves locking Ethereum to enhance blockchain security while participants earn rewards in return. Unlike conventional ETH ETFs, which solely track the price of Ethereum, a staking-integrated ETF would enable investors to benefit from an additional stream of returns. Cboe BZX intends to introduce a “point-and-click” mechanism for staking, ensuring that the ETH remains securely locked without needing to be transferred, thus mitigating security risks while generating rewards.

If the SEC grants approval, it could redefine the Ethereum ETF landscape in the United States. This move would give 21Shares a competitive advantage, paving the way for more staking-enabled crypto investment products in the future.

Ethereum’s Pectra Upgrade Readies for Testnet Launch, Mainnet Release Coming in April

The Ethereum network is on the verge of a significant upgrade, named Pectra, set to commence its testing phase shortly. Developers have arranged for the first testnet forks to take place in February and March, with the mainnet release aimed for April. This upgrade is focused on enhancing scalability, reducing costs, and refining staking processes.

Tim Beiko, a vital Ethereum core developer, has confirmed the upgrade timeline. The Holesky testnet fork is planned for February 24, followed by the Sepolia fork on March 5. If all proceeds as expected, the final mainnet debut date will be established on March 6.

Pectra merges two crucial upgrades: Prague, which enhances Ethereum’s execution layer, and Electra, targeting its consensus layer. The upgrade introduces numerous features designed to enhance operational efficiency. Significant improvements include Blob Spaces for improved data storage, PeerDAS for enhanced layer-two scalability, and Verkle Trees to streamline data management.

Noteworthy modifications, such as EIP-7251, would permit validators to elevate their stakes from the current limit of 32 ETH to as much as 2,048 ETH. Previously, exceeding the 32 ETH threshold necessitated multiple validators, causing network congestion. This change is set to simplify the staking process while minimizing delays.

The upgrade also integrates Account Abstraction, allowing users to pay gas fees using stablecoins like USDC or DAI instead of ETH. This update could significantly enhance transaction flexibility, making the Ethereum network more accessible to a broader audience.

Ripple Expands into Portugal via Partnership with Unicâmbio for Efficient Payments

Ripple is making significant strides in Portugal by partnering with Unicâmbio, a prominent currency exchange service. This collaboration aims to introduce Ripple’s payment technology in the region, facilitating faster and more cost-effective funds transfer between Portugal and Brazil.

The partnership, announced on February 10, 2025, signifies Ripple’s prominent entry into the Portuguese market. By incorporating Ripple Payments, Unicâmbio’s corporate clients stand to benefit from minimal transfer delays and cost reductions. Utilizing blockchain technology, the partnership strives to enhance the efficiency and security of cross-border transactions.

Ripple noted this partnership as a pivotal milestone in its expansion strategy, emphasizing the economic ties linking Portugal and Brazil. Cassie Craddock, Ripple’s Managing Director for the UK and Europe, underscored the significance of this collaboration, citing Portugal’s thriving crypto environment as a strategic fit for Ripple’s payment solutions. The initiative aims to optimize cross-border transactions and improve overall system efficiency between the two countries.

Parents of Sam Bankman-Fried Seeking Presidential Pardon from Trump

The parents of Sam Bankman-Fried are actively pursuing a presidential pardon for their son. Joseph Bankman and Barbara Fried, both esteemed Stanford Law professors, are reportedly consulting with legal professionals and individuals connected to former President Donald Trump. However, the extent of their direct communication with the White House remains uncertain.

Bankman-Fried received a 25-year prison sentence following his conviction on multiple counts of fraud, making his trial one of the most significant cases in crypto’s history. The jury found him guilty of stealing billions while managing FTX and deceiving both investors and creditors. The collapse of FTX resulted in the loss of approximately $8 billion in customer assets.

Currently, his legal team has positioned an appeal to challenge the verdict. In parallel, his parents are exploring alternative routes, including negotiating for a presidential pardon.

Trump’s perspective on cryptocurrency and financial misconduct may play a critical role in determining whether such a request holds any potential. Although some sources indicate that discussions are still in preliminary stages, the possibility of a pardon could ignite substantial controversy. Bankman-Fried’s future continues to hang in the balance as his legal team navigates the appeal process amid ongoing discussions.

SEC Reviews Grayscale’s Applications for Dogecoin and XRP ETFs, Invites Public Feedback

The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Grayscale’s proposals to establish spot ETFs for Dogecoin and XRP. Prior to finalizing its decision, the SEC is seeking public input on the applications. Interested stakeholders have a 21-day window from the publication of the notice in the Federal Register to submit their comments.

Once this feedback period concludes, the SEC will begin its assessment process, which may result in an approval, rejection, or extension of its review timeframe. Grayscale is working to transform its existing trusts into ETFs, aiming to enhance regulated investment opportunities for both institutional and individual investors.

Grayscale’s application adheres to the traditional 19b-4 filing procedure, granting the SEC up to 240 days to come to a decision after the initial 45-day review window. For the Dogecoin ETF, Grayscale has outlined a structure where cash transactions occur instead of direct DOGE transfers, aligning with regulatory standards while alleviating concerns about digital asset management. Coinbase Custody is designated to manage the fund’s asset storage, while BNY Mellon will oversee administrative functions. Pricing data will be gathered from major U.S. crypto exchanges like Coinbase, Kraken, and Crypto.com.

Hong Kong Accepts Bitcoin and Ethereum for Wealth Verification as Part of Residency Program

Hong Kong has officially recognized Bitcoin and Ethereum as acceptable forms of wealth verification under its Capital Investment Entrant Scheme (CIES). This landmark change allows high-net-worth individuals to incorporate these cryptocurrencies into their residency applications, reaffirming Hong Kong’s position as a prominent center for digital assets.

Under the new rules, applicants can utilize their BTC and ETH holdings to demonstrate their financial eligibility for the program. Despite this inclusion, successful applicants must invest at least HK$30 million (approximately $3.8 million) in traditional financial assets, excluding their cryptocurrency holdings. This stipulation ensures that while digital assets can assist in meeting initial qualifying standards, the fundamental investment criteria remain intact.

Invest Hong Kong, the agency governing this initiative, underscored the importance of balancing innovation with strict regulatory frameworks. By integrating cryptocurrencies into its residency program, Hong Kong seeks to attract global investors while ensuring robust oversight.

The acknowledgment of Bitcoin and Ethereum has initiated changes in financial verification directives. Chartered accountants in Hong Kong are now formulating updated valuation approaches to assess crypto assets. Applicants are required to furnish detailed transaction records, wallet addresses, and supportive documents to validate their holdings.

With this development, legal and financial specialists have noted a noticeable uptick in inquiries regarding the amended CIES. David Cameron, Managing Partner at DCLO, reported increasing interest, emphasizing the firm’s commitment to guiding investors through the evolving regulations. As interest escalates, Hong Kong’s residency-by-investment program is poised to become a pivotal destination for wealth migration backed by cryptocurrencies.

Tornado Cash Developer Alexey Pertsev Released, Continues Legal Battle

After three years of pretrial detention, Alexey Pertsev, the developer behind Tornado Cash, has been released, albeit under electronic monitoring as he fights his money laundering conviction. This case is viewed as setting an important legal precedent for developers focusing on privacy-enhancing technologies.

Pertsev, a Russian national, previously faced a 64-month prison sentence in the Netherlands. His release comes in response to multiple denied bail requests and ongoing discussions about the legal treatment of developers involved in privacy-related projects. The court has allowed Pertsev to focus on appealing his conviction.

In a statement shared on X, Pertsev expressed gratitude towards his legal team and supporters, highlighting the substantial financial toll of his defense. He urged continued backing, emphasizing that his legal fight is far from over.

Tornado Cash garnered scrutiny following a sanction by the U.S. Treasury in August 2022, which accused the platform of facilitating over $7 billion in money laundering. Pertsev’s arrest coincided with these sanctions, landing him charges of enabling illegal transactions. His defense maintains that he merely developed open-source software and should not be held accountable for its misuse by others.