🚀Court Ruling Backing Grayscale's ETF Ambitions Ignites Markets

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Digital asset markets shot upwards in response to a U.S. court ruling that the SEC failed to justify its denial of Grayscale's Bitcoin ETF applications. The combined crypto asset capitalized bounced $15B in just a few hours following the news.

The bullish momentum might have also received a boost from news that X, formerly Twitter, acquired a Rhode Island Currency Transmitter — paving the way for the firm to facilitate cryptocurrency payments for its 450M active users.

Aave launched support for sDAI — DAI tokens accruing yield via MakerDAO's DAI Savings Rate, following the token's recent meteoric success. However, the MakerDAO is exploring limiting DSR yields to 5% after bumping them up to 8% at the start of the month.

The dYdX community is voting to formalize the launch of its v4 iteration and dedicated appchain. The proposal includes plans to launch a new token governing its current v3 version moving forward.

And OpenSea is working on a new feature allowing NFT holders to access "redeemable" features, typically unlocking perks by burning their tokens. The move comes as OpenSea's NFT market share continues to decline following the rise of rival marketplace, Blur.

✍️ In today’s newsletter:

Markets climb after court upholds challenge to SEC dismissing Grayscale's Bitcoin ETF bid
X receives license paving the way for crypto expansion
sDAI adoption receives boost from Aave integration
dYdX votes on plan to complete v4 rollout and appchain migration
OpenSea looks to new NFT tech to reverse declining market share

📈 Markets in last 24 hrs:

Ticker	Value	24h
BTC	$26,109	↗ 0.1%
ETH	$1,653	↙ -0.23%
S&P 500	$4,498	↗ 1.45%
GOLD	$1,936	↗ 0.97%
Arch WEB3	0.72pts	↙ -0.66%
↳ FINANCE	0.76pts	↙ -0.99%
↳ INFRA	0.66pts	↗ 0.09%
↳ CONSUMER	0.85pts	↙ -0.87%

Learn more about Arch Indices here.

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Markets

Markets Soar On US Court Ruling In Grayscale’s Favor

TLDR Bitcoin bounced 7% and Ether rallied 5% in response to a U.S. court backing Grayscale's challenge to the SEC's decision to dismiss its Bitcoin ETF application. The court found the rejection was "arbitrary" due to overt similarities between Grayscale's proposed product and similar Bitcoin ETFs green-lit by the agency.

SO WHAT The court's decision is the latest blow to the SEC's crusade of regulation by enforcement targeting the web3 industry. In July, a U.S. judge also ruled that digital assets are not automatically securities even when sold through securities investment contracts in relation to Ripple's XRP token. The ruling undermined the SEC's ongoing complaint against Coinbase.

Business

Elon Musk’s X Obtains License To Enable U.S. Crypto Payments

TLDR X, the social media network formerly known as Twitter, is now licensed as a Rhode Island Currency Transmitter. X now has permission to transfer, custody, or exchange digital assets on behalf of users.

SO WHAT The certification enables the firm to launch crypto payment services for its more than 400M users. The platform previously rolled out support for BTC tipping in 2021 and followed up with NFT features for premium users last year.

Aave Launches sDAI Pool As MakerDAO Weighs Reducing Yields

TLDR sDAI holders can now use the token as collateral on Aave v3. Aave said the yield-bearing token could enable delta-neutral trading strategies via the protocol.

SO WHAT The news follows a nearly $1B increase in the supply of sDAI — DAI earning yield from MakerDAO's DAI Savings Rate protocol. MakerDAO increased DSR rates to 8% at the start of August, but is now considering capping the yield at 5% to deter whales from farming the token.

Governance

dYdX Community Votes On Appchain Migration and V4 Deployment

TLDR The dYdX community is voting on a proposal formalizing the long-awaited launch of its v4 iteration and dYdX Chain. The roadmap includes plans for a one-way bridge for transferring DYDX tokens onto the new network alongside airdropping a new token for governing its v3 protocol.

SO WHAT As the forefronts of blockchain scalability continue to expand, an increasing number of protocols are migrating to launch their own dedicated appchains. dYdX's move will see the leading decentralized derivatives protocol leave the Ethereum ecosystem in favor of bespoke Cosmos-based L1.

NFTs

OpenSea Unveils Standards For Redeemable NFTs

TLDR OpenSea is exploring standards for "redeemable" NFTs. The forthcoming NFTs allow holders to unlock exclusive off-chain or on-chain content, typically by burning their tokens.

SO WHAT OpenSea is fighting to reclaim market share after being usurped by the current leading NFT marketplace, Blur. OpenSea's foray into redeemable NFTs also follows its recent decision to stop enforcing creator royalties, driving a renewed slump in activity

🔎 OUR REPORTERS ARE WATCHING

🌍 ELSEWHERE

Swiss SEBA Bank gets approval-in-principle for Hong Kong crypto services (Reuters)
Coinbase Stock Soars 15% Following Grayscale’s Bitcoin ETF Win Against SEC (Decrypt)
BlockFi asks court for permission to convert trade-only assets into stablecoins (Cointelegraph)