**Top Stories**

**▌Arthur Hayes Warns: Excessive Institutional Bitcoin Custody Could Threaten Bitcoin's Future**

The cryptocurrency sphere is abuzz with anticipation surrounding a potential spot Bitcoin ETF approval. However, Maelstrom Fund's founder, Arthur Hayes, expresses concerns about the potential negative impact on Bitcoin and its users.

Hayes argues that asset management giants like BlackRock essentially function as "state proxies," often acting in alignment with government interests. This stands in stark contrast to Bitcoin's ethos as a decentralized alternative to national currencies. Hayes paints a scenario where BlackRock and similar traditional finance entities accumulate a significant portion of the freely circulating Bitcoin supply. In such a system, users would essentially be purchasing derivatives, with the asset management firm acquiring Bitcoin and storing it with a custodian. This arrangement would prevent users from directly utilizing these Bitcoins, effectively transforming them into mere financial instruments rather than a usable cryptocurrency. Hayes cautions that if a BlackRock ETF grows too dominant, it could potentially "suffocate" Bitcoin by creating a large pool of immobilized coins.

**▌SEC Issues Subpoena to PayPal Regarding Stablecoin Development**

PayPal has received a subpoena from the U.S. Securities and Exchange Commission's enforcement division, specifically targeting the company's work on a dollar-pegged stablecoin. According to regulatory filings, the subpoena requests documentation related to the project. The SEC is also examining how Venmo facilitates transactions linked to customers' bank accounts.

Furthermore, the Consumer Financial Protection Bureau (CFPB) has launched its own investigation into the company.

In August, PayPal introduced its stablecoin, PayPal USD (PYUSD). The San Jose-based payments giant stated that the token is pegged to the U.S. dollar and fully collateralized by U.S. dollar deposits, short-term Treasury bills, and similar cash equivalents. Coingecko data indicates that the token currently has a market capitalization of approximately $158 million.

**Market Snapshot**

At the time of writing, coinmarketcap data shows:

Bitcoin (BTC) is trading at $35,029.3, up 0.41% in the last 24 hours;

Ethereum (ETH) is priced at $1,893.42, showing a 1.01% increase;

BNB is valued at $244.08, with a 1.35% gain;

XRP is trading at $0.6597, up 2.45%;

Dogecoin (DOGE) is at $0.0711, rising 1.80%;

Cardano (ADA) is priced at $0.3418, with a slight 0.07% increase;

Solana (SOL) is trading at $41.17, up 1.12%.

**Regulatory Developments**

**▌Hong Kong SFC Chief: Retail Access to Spot Crypto ETFs Under Consideration**

In a recent international interview, Hong Kong Securities and Futures Commission CEO Julia Leung revealed that Hong Kong is exploring the possibility of allowing retail investors to participate in spot cryptocurrency ETFs, provided regulatory requirements are met. Leung stated, "We welcome proposals leveraging innovative technology to enhance efficiency and user experience. We're open to experimentation as long as new risks are adequately addressed. Our approach remains consistent regardless of the asset class."

**Blockchain Innovations**

**▌Ordinals Wallet Emphasizes User Choice and Reduced Third-Party Reliance**

Ordinals Wallet recently shared on social media its commitment to customer-centric design, offering multiple login options to cater to diverse user preferences. For those who favor browser extensions, that option is available. Similarly, users who prefer web wallets are also accommodated. The company acknowledged that "Chrome extensions will always be at Google's discretion," and emphasized its efforts to minimize reliance on third parties, drawing inspiration from Satoshi Nakamoto's philosophy.

**Cryptocurrency Developments**

**▌Significant Token Unlocks: HFT and APT Lead Nearly $200 Million Release This Week**

TokenUnlocks data reveals that between November 6 and November 12, several major token unlocks are scheduled, including GLMR, HFT, EUL, 1INCH, and APT:

- 3.04 million Moonbeam (GLMR) tokens (valued at approximately $688,000) will be unlocked on November 7 at 08:00, representing 0.39% of the circulating supply.
- 160 million Hashflow (HFT) tokens (worth about $41.66 million) are set for release on November 7 at 08:00, accounting for 73.74% of the circulating supply. Early investors and core team members will begin their token unlocks this week.
- 140,000 Euler (EUL) tokens (approximately $500,000) will be unlocked on November 9 at 11:04, constituting 0.75% of the circulating supply.
- 15,000 1inch (1INCH) tokens (about $4,980) are scheduled for release on November 9 at 20:00, representing a negligible percentage of the circulating supply.
- 24.84 million Aptos (APT) tokens (valued at roughly $172 million) will be unlocked on November 12 at 08:00, accounting for 10% of the circulating supply. Investors and core contributors will commence their token unlocks this week.

**▌Immunefi Report: Crypto Sector Suffers $1.41 Billion Loss from 292 Hacking Incidents in 2023**

A recent report from Immunefi reveals that the cryptocurrency industry has endured losses exceeding $1.41 billion due to 292 distinct hacking and fraudulent activities from January to October 2023. October alone saw approximately $22.2 million in losses, primarily attributed to hacking and fraud incidents. The report identified BNBChain and Ethereum as the most frequently targeted blockchain networks, accounting for 83.3% of the total losses across all affected chains. Immunefi's data shows that BNBChain experienced the highest number of individual attacks with 11 incidents, representing 45.8% of the overall losses among targeted chains.

Ethereum, meanwhile, suffered 9 incidents, accounting for 37.5% of the total losses. Among Layer 1 blockchains, Avalanche recorded 2 incidents in October (8.3% of losses), while Polygon and Fantom each experienced 1 incident (4.2% each). Hacking events remain the primary cause of financial losses, surpassing fraudulent activities which resulted in total losses exceeding $16.35 million that month. Additionally, DeFi platforms continued to be the main target for exploits in October, accounting for 100% of the total losses. In contrast, no significant vulnerabilities were reported in CeFi platforms during this period.

**▌Glassnode Analysts Predict Potential Bitcoin Surge**

Glassnode analysts have identified a historical bullish indicator for Bitcoin (BTC) that has previously preceded explosive price rallies. Glassnode co-founders Jan Happel and Yann Allemann note that Bitcoin has successfully broken through multiple key resistance levels and is currently in a phase of increasing momentum. The analysts are particularly focused on Bitcoin's relative strength index (RSI), a traditional metric used to gauge asset momentum. With Bitcoin's RSI currently exceeding the 70 level, the analysts suggest that, based on historical patterns, Bitcoin may be poised for another significant upward movement.

**Economic Outlook**

**▌Fed Rate Decision: 95.2% Probability of Unchanged Rates in December**

According to CME's "FedWatch" tool, there is a 95.2% probability that the Federal Reserve will maintain interest rates in the 5.25%-5.50% range at its December meeting. The probability of a 25 basis point increase to the 5.50%-5.75% range stands at 4.8%. Looking ahead to January, the probability of rates remaining unchanged is 91.2%, with an 8.6% chance of a cumulative 25 basis point increase and a 0.2% probability of a cumulative 50 basis point hike.

**Crypto Glossary**

**Account Abstraction (AA) Technology**

Account Abstraction (AA) represents a novel paradigm for contract wallets based on ERC-4337. It enables on-chain interaction of contract accounts through an application layer approach. AA does not require modifications to ETH node consensus and, by operating on-chain contract accounts, can achieve greater programmability and contract composability compared to current EOA external accounts (such as MetaMask wallets).

**Disclaimer: Gate serves as a blockchain information platform, publishing articles for informational purposes only. These publications do not constitute investment advice. We encourage readers to establish sound investment principles and maintain a keen awareness of risk.**