Weekly Crypto Recap: FalconX, MicroStrategy, Coinbase, Binance, and More

This week’s recap covers significant updates from FalconX, MicroStrategy, Coinbase, Binance, and key developments in the crypto market, including regulatory shifts in China, BlackRock’s Bitcoin ETF outflows, and notable legal matters.

FalconX Acquires Arbelos Markets to Strengthen Crypto Derivatives

FalconX, a prominent digital asset prime broker, has acquired Arbelos Markets, a New York-based derivatives trading firm. This acquisition marks a pivotal moment in the crypto derivatives space, as both firms emphasize enhancing market liquidity and expanding crypto’s role in traditional cross-asset portfolios. The deal follows FalconX’s backing of Arbelos in a substantial $28 million funding round earlier this year.

MicroStrategy’s $42 Billion Fundraising Plan

MicroStrategy, a major business intelligence company known for its significant Bitcoin holdings, plans to raise $2 billion via preferred stock offerings as part of its 21/21 Plan. The company is targeting a massive $42 billion in total fundraising over three years. Despite a 21% drop in shares in December, MicroStrategy’s stock has surged over 320% in 2024, outpacing Bitcoin’s 120% increase. Some investors view MicroStrategy as a viable alternative to Bitcoin and Bitcoin ETFs.

Coinbase Expands in Europe

Coinbase, the U.S.-based cryptocurrency exchange, has acquired the Cyprus unit of BUX and rebranded it as Coinbase Financial Services Europe. The acquisition grants Coinbase a Cyprus Investment Firm license, allowing it to offer contracts for differences (CFDs) in Europe. This move enhances Coinbase’s global reach and positions it to compete with major players like Charles Schwab, the $7 trillion asset manager.

China’s New Crypto Regulations and South Korea’s ETF Plans

China has introduced stringent new rules requiring banks to monitor risky transactions, including those involving cryptocurrencies. The regulations aim to curb unauthorized financial practices and increase oversight of digital asset trading. Meanwhile, South Korea’s Exchange Chairman revealed plans to evaluate crypto spot ETF approval in 2025 and is also considering allowing security token offerings.

Binance Secures Regulatory Approval in Brazil

Binance has received full regulatory approval from the Banco Central do Brasil to acquire Sim;paul, a licensed broker-dealer. This strategic move further strengthens Binance’s presence in Latin America’s largest market. The exchange also announced a temporary pause on Dash token deposits and withdrawals on January 7 for a network upgrade and hard fork.

DeFi and Market Performance

BIO Protocol successfully raised $64.41 million through a public sale, signaling strong investor interest in DeFi projects. The total crypto market cap has increased to $3.5 trillion, up from $3.42 trillion last week. However, NFT sales have declined by 17.54% to $132.7 million, according to CryptoSlam data. On the security front, crypto hacks in December 2024 resulted in $24.7 million in losses, down 71% from November.

BlackRock Bitcoin ETF Sees Record Outflows

BlackRock’s iShares Bitcoin Trust (IBIT) experienced its largest-ever single-day outflow of $332.62 million on January 2, part of a three-day streak of outflows totaling $392.6 million. This decline coincided with the resumption of U.S. trading after the New Year. Despite these outflows, other Bitcoin-related funds such as Bitwise’s BITB, Fidelity’s FBTC, and Ark 21Shares’s ARKB saw inflows, reflecting continued investor interest in crypto products.

Legal Matters: Do Kwon, Celsius Network, and Alex Mashinsky

Do Kwon, the former co-founder of Terraform Labs, pleaded not guilty to criminal fraud charges in Manhattan federal court on January 2 following his extradition from Montenegro. Meanwhile, Celsius Network has filed an appeal challenging a U.S. court ruling that dismissed its $444 million claim against FTX. Celsius had previously reduced its $2 billion claim, but it was deemed untimely. Former Celsius CEO Alex Mashinsky is facing multiple fraud charges related to the company’s collapse, with potential sentences of up to 115 years in prison if convicted.

This week’s crypto news highlights the evolving dynamics of the market, regulatory challenges, and major players positioning themselves for future growth. As the year progresses, the industry continues to see both opportunities and obstacles, with many eyes on key developments in the DeFi and regulatory sectors.