Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

First off, we've got some exciting news about ETFs that we think you'll love. And guess what? Coinbase is not holding back in response to Senator Warren's comments. It's quite the showdown! Next, brace yourself for some words of caution from the ever-controversial Arthur Hayes, who has a warning for the BTC community. Lastly, we've got all the juicy details on the top 5 DeFi projects that you definitely don't want to miss out on.

Happy reading!

📰 News Highlights:

🕒 SEC Sets Deadline for Spot Bitcoin ETF (Link)(Link)(Link)

The United States Securities and Exchange Commission (SEC) has set the clock ticking for spot Bitcoin exchange-traded fund (ETF) applicants.

The deadline, on Dec. 29, is crucial for those eyeing the first wave of potential spot Bitcoin ETF approvals in early January. Miss the deadline, and you're out of the running.

Recent discussions on Dec. 21 between SEC officials and representatives from major firms like BlackRock, Grayscale Investments, ARK Invest, and more, emphasized the impending deadline. The SEC's stern message: No final S-1 amendments filed by Dec. 29, no spot in the initial wave of approvals. 

This development adds suspense to the crypto narrative as multiple spot Bitcoin ETF filers race against time, tweaking their S-1 filings to align with the SEC's preferences. The crypto community eagerly anticipates the outcome, with potential approvals reshaping the landscape by Jan. 10.

🛡️ Coinbase vs. Senator Warren (Link)(Link)(Link)

Coinbase steps into the regulatory arena with a firm rebuttal to Senator Elizabeth Warren's claims. The cryptocurrency exchange vehemently denies Warren's allegations that it employed former government officials to obstruct regulatory progress for digital assets. 

In a letter dated Dec. 22, Coinbase's Chief Policy Officer, Faryar Shirzad, declares Warren's claims as "unfounded" and a "willful misrepresentation" of the exchange's intentions.

The exchange, known for actively advocating responsible crypto regulations, emphasizes its commitment to user protection. The recruitment of government personnel, Coinbase clarifies, aligns with its broader initiative to safeguard the interests of crypto users in the United States.

🚫 Warning from Arthur Hayes (Link)(Link)(Link)

Arthur Hayes, former CEO of BitMEX, sends a cautionary message about the potential peril of spot Bitcoin exchange-traded funds (ETFs). 

In a thought-provoking blog post on Dec. 23, Hayes suggests that if spot Bitcoin ETFs become too successful, they could spell doom for Bitcoin itself. His reasoning? Spot Bitcoin ETFs, designed to amass assets and store them away, might lead to a decrease in Bitcoin transactions, causing miners to lose incentive and the network to collapse.

Hayes envisions a scenario where traditional finance-managed ETFs turn Bitcoin into a state-controlled financial asset, contradicting its essence as peer-to-peer electronic money. 

This cautionary tale comes just ahead of the anticipated approval of pending spot Bitcoin ETF applications, expected between Jan. 5 and Jan. 10, 2024.

💰 Sotheby’s: A Record Year in Digital Art Sales (Link)(Link)

Sotheby's Vice President, Michael Bouhanna, reveals an exciting year in digital art sales, clocking in at nearly $35 million. In 2023, Sotheby's showcased its prowess with its first live digital art auction, boasting $12 million in sales. 

Notably, the highest fee for digital artwork to date, a whopping $6.2 million, was fetched by the nonfungible token (NFT) "Ringers #879."

Sotheby's year-end results underscore its foray into the digital art space, with over 25 auctions exclusively dedicated to or featuring digital art. 

The auction house's commitment to innovation extends to the launch of its own on-chain marketplace for secondary NFT trades, named Sotheby's Metaverse. As the traditional and digital art worlds converge, Sotheby's positions itself at the forefront of this cultural shift.

🔍 Industry Insights: 

Beyond the Hype: The Real Money Makers of DeFi - Top 5 by Revenue (Link)

For years, DeFi's success was measured by a single metric: Total Value Locked (TVL). But as the market slogged through a bear in 2023, cracks started to show.

Critics pointed out how TVL could be easily manipulated by "whales" throwing in large sums, obscuring the true value of a protocol. Some even called for its retirement, suggesting it was time for DeFi to find a better ruler.

So, what if the answer wasn't abandoning TVL, but looking at it alongside a new metric? Enter revenue: cold, hard cash that protocols actually earn.

This list flips the script, ranking the top 5 DeFi protocols by their 2023 revenue, revealing the moneymakers behind the hype:

1. Maker: The Bond King (Revenue: $95.91 million)

Maker isn't just minting stablecoins anymore. They're buying U.S. Treasury bonds, capturing sweet interest in a rising rate environment. This savvy move helped Maker top the revenue chart.

2. Lido: The Staking Kingpin (Revenue: $55.79 million)

Lido rode Ethereum's Proof-of-Stake wave, letting users earn staking rewards on their ether. Their tokenized staked ether (stETH) became a crypto giant, and Lido now controls a hefty chunk of the staked ether market.

3. PancakeSwap: The DEX Dynamo (Revenue: $52.31 million)

This Binance Smart Chain favorite isn't just about swapping tokens. They're innovating with concentrated liquidity and even launched a gaming marketplace. Their  sheer volume makes them a revenue powerhouse.

4. Convex Finance: The Curve Whisperer (Revenue: $42.23 million)

Convex amplifies yield for Curve LPs and stakers, making it a favorite for those who want to squeeze the most juice out of their DeFi assets. Their control of Curve votes makes them a force to be reckoned with.

5. GMX: The Perpetual Pioneer (Revenue: $37.52 million)

For those who love leveraged trading, GMX is the go-to. This Arbitrum-based perpetual swap exchange raked in cash, proving there's still plenty of appetite for high-octane DeFi action.

This is just a glimpse into the changing landscape of DeFi. While TVL may not be the whole story anymore, it's clear that revenue is a powerful metric that reveals the true earning power of these protocols. As DeFi evolves, finding the right mix of metrics to measure success will be crucial.

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💡 Feature of the Day:

Bitcoin ETF’s Poised to Rack Up Monster Inflows, Threatening to Drown Out the Competition (Link)

Get ready for a historic shakeup in the crypto world! There are currently 150 crypto ETPs (Exchange Traded Products) out there, with $50 billion in total assets. But get this: a single U.S.-approved spot Bitcoin ETF could DOUBLE that entire market. Yes, you read that right.

And it's not just wishful thinking. Experts predict a January 10th green light from the SEC for this long-awaited ETF. Bitwise believes it could become the most successful ETF ever, attracting a whopping $72 billion in just five years! Even conservative estimates from VanEck see $2.4 billion flooding into such an ETF within the first three months of 2024.

Why the hype? Spot Bitcoin ETFs exist elsewhere — Canada, Australia, and Germany already have them. But a U.S. version would unleash a wave of institutional investment that the crypto world has never seen before. In fact, crypto ETFs already brought in $1.6 billion this year, nearly double 2022's total! 

And guess what? The top 20 crypto ETFs saw $1.3 billion pour in during 2023, with ProShares Bitcoin Strategy ETF alone raking in an extra $278.7 million.

So buckle up, folks. 2024 could be the year Bitcoin ETFs rewrite the rules of the game. Hold onto your crypto hats, because this ETF wave is about to break the bank, and maybe the internet too.

😂 Crypto Meme of the Day: 

And that’s it for this today.

With all of the recent hacks taking place, remember to protect your crypto assets with today’s sponsor Trezor hardware wallets.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com