Q2 2024: Five stories that shaped cryptocurrency
Quarterly retrospective covering April 1–June 30, 2024. Dated June 30, 2024. Stories selected for market impact, policy significance, and consequences for cryptocurrency infrastructure.
1. Bitcoin completes its fourth halving
Bitcoin’s fourth halving occurred at block 840,000 on April 20 UTC, reducing the block subsidy from 6.25 to 3.125 BTC. The event implemented the next scheduled reduction in new issuance, making transaction fees a larger part of miners’ potential revenue relative to the subsidy. It was important for mining economics and renewed public attention to Bitcoin’s programmed supply limit. The protocol change was predictable, while its commercial consequences depended on prices, fees, operating costs, and how miners adapted to earning fewer newly created coins for each block. Source: The Block, April 19 U.S. time.
2. The SEC approves exchange-rule changes for spot Ether products
The SEC approved proposed exchange-rule changes for Ether-based exchange-traded products on May 23. The decision was an important step toward U.S. securities-market access to direct Ether exposure, following the Bitcoin product approvals earlier in the year. It changed expectations about the range of cryptocurrency assets that could enter conventional investment channels. The approval concerned the exchanges’ listing arrangements; registration statements and other preparations still had to be completed before trading could begin, making it distinct from a launch-day announcement. Source: SEC approval order, May 23.
3. Hong Kong launches spot Bitcoin and Ether ETFs
Six spot cryptocurrency ETFs began trading in Hong Kong on April 30, covering Bitcoin and Ether. The launches extended regulated fund-based access in an important Asian financial centre and provided a regional counterpart to the U.S. Bitcoin products. They also demonstrated different market arrangements, including the availability of in-kind subscription and redemption structures for the Hong Kong products. The initial debut was a concrete infrastructure milestone, with its longer-term significance dependent on investor demand, distribution, liquidity, and the operational performance of the new funds. Source: South China Morning Post, April 30.
4. The U.S. House passes FIT21
The House of Representatives passed the Financial Innovation and Technology for the 21st Century Act on May 22 by a vote of 279–136. The bill proposed a framework for cryptocurrency market oversight and sought to address the respective roles of securities and commodities regulators. Its bipartisan support made it a significant legislative signal for businesses seeking clearer rules for issuing and trading digital assets. At the quarter’s end, House passage was progress within Congress; it did not establish that the proposal had cleared the Senate or become law. Source: The Block, May 22.
5. Mt. Gox announces a July repayment start
The Mt. Gox rehabilitation trustee announced on June 24 that repayments in Bitcoin and Bitcoin Cash would begin in early July through designated exchanges. The notice followed years of work after the exchange’s collapse and said repayment arrangements would proceed as the required confirmations were completed. The announcement mattered to creditors awaiting assets and to markets considering the possible return of a large pool of coins to circulation. It provided a start timetable rather than confirmation that all creditors had already received funds or would receive them simultaneously. Source: Mt. Gox trustee notice, June 24.