Tether, the company behind the world’s largest stablecoin, has made a strategic investment of $100 million to acquire a 9.8% stake in Adecoagro, a major agricultural producer in Latin America.

Global asset manager VanEck has announced plans to close and liquidate its Ethereum futures ETF, known as the VanEck Ethereum Strategy ETF (EFUT). 

A U.S. District Judge has granted portions of Coinbase's motion to compel the U.S. Securities and Exchange Commission (SEC) to provide key documents in their ongoing lawsuit, however, the judge denied the exchange's request to subpoena SEC Chair Gary Gensler.

Top stories in the Crypto Roundup today:

• Tether Invests $100 Million in Latin American Agricultural Firm Adecoagro
• VanEck to Close and Liquidate Its Ethereum Futures ETF (EFUT)
• Judge Partially Grants Coinbase’s Request for SEC Documents in Ongoing Legal Battle
• Open Interest Declines in August Amid Wider Market Downturn

Tether Invests $100 Million in Latin American Agricultural Firm Adecoagro

Leading stablecoin issuer Tether has made a strategic investment of $100 million to acquire a 9.8% stake in Adecoagro, a major agricultural producer in Latin America, in a move that marks Tether’s first step into the agriculture and food sectors, reflecting its efforts to diversify its investment portfolio beyond digital assets and financial technologies.

Prior to this, Tether's investments focused on innovative areas such as artificial intelligence, peer-to-peer platforms, and Bitcoin mining, with the company also backing digital education initiatives. According to a filing, the Adecoagro investment was made using Tether’s working capital, resulting in over 10 million shares in the agricultural firm.

Founded in 2002, Adecoagro has grown into one of Argentina’s major dairy producers, processing 550,000 litres of milk daily at its Buenos Aires plant. The company expanded its operations into Brazil in 2005, adding sugar, ethanol, and energy production to its portfolio, which has solidified its position in the Latin American agribusiness sector.

Tether's USDT, with a market capitalization above $118 billion, is currently the market’s leading stablecoin. The company recently announced the development of a new stablecoin tied to the United Arab Emirates dirham backed by UAE-based reserves, which will be introduced in partnership with Phoenix Group and Green Acorn Investments.

The stablecoin market has seen increased competition, with PayPal’s USD stablecoin surpassing $1 billion in market capitalization. Ripple Labs has also started testing its Ripple USD stablecoin across blockchain networks like XRP Ledger and Ethereum.

VanEck to Close and Liquidate Its Ethereum Futures ETF

Global asset manager VanEck has announced plans to close and liquidate its Ethereum futures exchange-traded fund (ETF), known as the VanEck Ethereum Strategy ETF (EFUT). The decision to dissolve the fund was approved by the Board of Trustees of VanEck ETF Trust on 5 September 2024.

VanEck regularly evaluates its ETF offerings based on multiple factors, including performance, liquidity, assets under management, and investor interest. After a detailed analysis of these elements and other operational concerns, the company determined that liquidating the EFUT fund was in the best interest of investors.

The EFUT fund, traded on the CBOE under the ticker EFUT, will remain available for trading until market close on 16 September 2024. After that, the shares will be de-listed, and no further transactions will be possible. Shareholders who retain their shares beyond this date will receive a cash distribution equal to the net asset value of their holdings, scheduled for 23 September 2024. These proceeds will be deposited into the cash portion of their brokerage accounts.

VanEck’s press release encourages shareholders to be aware of the potential tax implications of the liquidation. Shareholders will generally recognize a capital gain or loss based on the difference between the amount received from the sale and their adjusted cost basis. Additionally, shareholders may receive a final distribution of any remaining income or capital gains before liquidation.

VanEck has confirmed that the final tax status of these distributions, including any return of capital, will be provided to shareholders in the year-end tax reporting for 2024.

Judge Partially Grants Coinbase’s Request for SEC Documents in Ongoing Legal Battle

A U.S. District Judge has granted portions of Coinbase's motion to compel the U.S. Securities and Exchange Commission (SEC) to provide key documents in their ongoing lawsuit, howeverthe judge denied the exchange's request to subpoena SEC Chair Gary Gensler. This ruling is a significant step in the discovery process as the case between Coinbase and the SEC continues.

The dispute began when the SEC sued Coinbase for operating as an unregistered securities exchange in 2023. Coinbase responded by filing a motion seeking documents related to the tokens mentioned in the SEC’s complaint, records on the SEC’s internal discussions about allowing Coinbase to go public in April 2021, and statements made by Gensler during his tenure at the agency.

On 5 September 2024, U.S. District Judge Katherine Polk Failla ruled to grant part of Coinbase’s request while denying others. For example, the SEC is required to search for more documents than it initially offered, though not as many as Coinbase had asked for. The search will include internal memorandums about whether certain tokens met the Howey Test, a key legal standard for defining securities.

Coinbase had previously subpoenaed Gensler for documents, but the request was dropped following assurances from the SEC that Gensler hadn’t used personal channels for SEC business. Judge Failla also excluded current and former SEC commissioners from the required document search.

Paul Grewal, Coinbase’s Chief Legal Officer, expressed satisfaction with the ruling, saying the decision will help Coinbase access key documents for its defense. He noted that despite some limitations, the court granted much of what Coinbase had been seeking.

Open Interest Declines in August Amid Wider Market Downturn

The retail derivatives market took a hit in August, with open interest plunging 15.7% to $45.8 billion, in a decline primarily fueled by a surge in liquidations, triggered by fears surrounding the Japanese Yen carry trade and a broader downturn in traditional financial markets.

Leading cryptocurrency exchange Binance saw its open interest contract by 21.4% to $14.6 billion while OKX and Bybit experienced even more significant declines of 23.1% and 25.0%, respectively.

Dig deeper into the world of cryptocurrency trading with CCData’s latest Exchange Review report.

State of the Crypto by Top Tier Exchange Volume

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