SEC rejects Bitwise ETF / Bitwise to refile / IRS issues crypto guidelines

Inside Bitcoin presented by Vettery.

Presented by Subscribe | View in browser Market Watch: The market has made a slight recovery, but still remains down. More importantly, though, prices haven't moved too much on the news that the SEC rejected Bitwise's Bitcoin ETF application. Bitcoin: $8,565 (⬆️ 0.19%) // $154 billion maket cap. Ethereum: $192 (⬆️ 0.59%) // $20.8 billion market cap. XRP: $0.274 (⬇️ 2.38%) // $11.8 billion market cap. Bitcoin Cash: $232 (⬇️ 2.86%) // $4.1 billion market cap. Tether: $1 (⬇️ 0.04%) // $4.1 billion market cap. Top 100 Winner: Ravencoin: $0.037 (⬆️ 15.15%) // $171 million market cap. Top 100 Loser: Nash Exchange: $1.04 (⬇️ 9.79%) // $37 million market cap. Prices are as of 2:02 p.m. EDT.       1. The U.S. Securities and Exchange Commission (SEC) has rejected Bitwise's Bitcoin exchange-traded fund (ETF) proposal. According to the SEC, the application, in connection with NYSE Arca, didn't meet legal requirements which would prevent market manipulation. The decision follows on from comments from Matt Hougan, managing director and global head of research at Bitwise, who said earlier this week that it was "close" to approval for a Bitcoin ETF. Bitwise first filed for an ETF in January but the SEC postponed its August decision to October, stating that it required more time. –COIN DESK Why It Matters: To date, the SEC has rejected all applications for a Bitcoin ETF citing market manipulation as one of its main reasons.       2. Bitwise and NYSE Arca will refile its Bitcoin ETF application "as soon as appropriate." In a press release, the companies said that they "appreciate" the feedback from the SEC and that they will continue to work with the regulator to address the concerns raised. Despite the setback, Bitwise leadership said it was pleased with the progress that the industry has made. It feels that with additional research steps can be made to resolve the SEC's issues. The question now becomes what organization, if any, can crack the SEC's aversion of a Bitcoin ETF. –COINTELEGRAPH       A MESSAGE FROM VETTERY Keep your recruiting strategy competitive with Vettery's 2019 Tech Salary Report We aim to make the recruiting process more transparent for job-seekers and hiring managers, across the board. And we noticed there's one thing people can't stop talking about: salary. We believe that when all parties are on equal footing, everyone is poised to have a better hiring experience. Get the report 3. Throwback Thursday: The Launch of Litecoin On October 9, 2011 Charlie Lee, a former engineer at Google, launched Litecoin via BitcoinTalk. During the announcement, Lee mentioned proof of work, premines, fast transactions, difficulty retargeted, coin regeneration, fairness, a 51 percent attack, and the coin's source code. Since 2011, Litecoin has become the sixth most valuable altcoin, with a market value today worth $3.67 billion. During the 2017 market bull run, Litecoin reached an all-time high of over $350. However, it's now trading at just under $60. Highlights of Litecoin's development include the time that Lee decided to sell and donated his coins in 2017. At the time, he stated that there was a "conflict of interest" with him holding Litecoin. Prior to its halving event August 4, the price of Litecoin fell 18 percent. At the time, it was reported that instead of helping to push the price of Litecoin up, it was running the risk of turning into a liability. The future of Litecoin is unknown, just like the rest of the market, but miners will continue to mine and investors will continue trading as long as interest remains for it.       4. The Internal Revenue Service (IRS) has issued new guidelines that informs crypto users on how the agency expects them to report earnings on their holdings. The question-and-answer document is the first since 2014 and comes amid increasing attention from tax auditors as to how crypto holders report their earnings. Earlier this year, the IRS sent over 10,000 letters to crypto holders warning them that they may face penalties for failing to pay taxes on their crypto investments. –BLOOMBERG Why It Matters: This may encourage crypto holders to be more forthcoming on their crypto earnings.       A MESSAGE FROM DATASTAX Scale Out, Don't Stress Out. Ensure your Database is Holiday-Ready. The holiday rush is about to begin—and in 2019, it's expected to be the biggest spending season ever. Learn more about why holiday sales success starts with your underlying database.  Read the holiday database report.   5. Former CFTC Chair Christopher Giancarlo has said that 2019 is the year to get serious about crypto policy. Known as "Crypto Dad," Giancarlo stated that 2017 was the year that regulators woke up to crypto due, in part, because of the Bitcoin bubble. Now, he went on to say, is the time when regulators and policy makers need to do more than be aware of the industry. –THE BLOCK       6. Bakkt's Bitcoin futures contracts have risen by 796 percent in one day. Data from the unaffiliated Bakkt Volume Bot (@BakktBot) shows that the number of contracts traded on October 9 was 224. This is compared to just 25 the previous day. At present, this represents an all-time high for the company.–@BakktBot       7. E-commerce company Overstock has opened a blockchain research and development center in Ireland. Located in Sligo, the company currently has 80 technologist working for it. According to a press release, Overstock is planning to hire 20 more before the end of the year. Overstock vice-president and site lead David Kenny said they are "delighted" with their new home and that it provides a great work-life balance. –COINTELEGRAPH       8. Coinbase Custody is to support Telegram's Gram (GRM) token when the Telegram Open Network (TON) goes live. In a blog announcement, it did note that it would support it, and two other tokens, subject to them passing the company's internal evaluation framework and regulatory approval. The other tokens Coinbase Custody will support are Sola (SOL) and OXT (OXT). –COINBASE BLOG       9. Hedera Hashgraph, NEM, Stellar, and Tron are just a few names supporting a new initiative called the Blockchain Education Alliance. Mousebelt, a blockchain development and investment firm, is behind the alliance, which, so far, has 13 members of the crypto space supporting it. In the next few months, 15 more are expected to join. Working with universities, Mousebelt is hoping that by getting more students involved in the space there will be people who are passionate to help develop the industry. –DECRYPT       10. Around 5,200 French tobacconists will have the opportunity to sell Bitcoin coupons again following a scheme was suspended earlier this year. Keplerk, the company behind the initiative, had to halt the project in February. Long confirmation times meant that users were receiving their redeemed Bitcoin up to eight hours later. With confirmation times down, Keplerk has restarted the project. –BFM TV       This newsletter was written and curated by Rebecca Campbell. She has been writing and reporting on various industries for the past 10 years, more specifically tech in the last three. Connect with her on Twitter. Editor: David Stegon (senior editor at Inside, whose reporting experience includes cryptocurrency and technology).       Ad Vettery is changing the way people hire and get hired. Get in touch.

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