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NEWS
The Bitcoin ETF & Institutions: Making Crypto Mainstream Again
Here’s the deal: 43 applications for Bitcoin ETFs have been filed in North America between December 2020 and June 21, 2023. And while many of these were rejected, BlackRock, Bitwise, WisdomTree, Invesco, and Valkyrie do not give up that easily because they all filled applications again this week.
ARK Investment Management, helmed by veteran investor Cathie Wood, is reportedly taking the lead in the competition for a spot Bitcoin Exchange-Traded Fund (ETF). This development follows BlackRock’s own filing for a spot Bitcoin ETF on June 16, which generated optimism within the cryptocurrency market. Initial reports suggested that BlackRock could become the first issuer of a spot Bitcoin ETF in the United States, but some executives and analysts hold a different view.
This instilled investor confidence from the expectation that these institutional players would bring more liquidity to the market, bolster sentiment, and foster even greater and wider adoption. Cryptocurrencies shot up across the board and observers started chattering about a so-called third wave of adoption, led by large firms.
Despite the uncertain regulatory environment, macroeconomic pressures, and the fact that a spot Bitcoin ETF approval is unlikely to come soon, numerous applications reveal a readiness to seize the opportunity in case it arises. They are unwilling to miss out, neither are we, and neither should you.
The Global Crypto Roundup
- BlackRock could become the first issuer of a spot Bitcoin ETF
- Brazil’s Central Bank Takes Charge of Crypto
- A bill to “fire Gary Gensler
- Coinbase continues its battle with the SEC
- CEX volume at an all-time low
- Binance forced to reduce its presence in Europe?
- News from the digital euro: Cash+
- In France, the AMF publishes its first thoughts on DeFi
- 52% of the largest US companies have undertaken Web3 projects
- Singapore joined hands with Korea, Italy on CBDC project
- Mastercard yet again affirming its commitment
- MicroStrategy has added a 12,333 BTC
- The New UK Asset Class
Brazil’s Central Bank Takes Charge of Crypto
Brazil’s President Luiz Inácio Lula da Silva, also known as Lula, may have been inspired by Aristotle’s famous words – “Nature abhors a vacuum”, as he issued legislation that defines the Brazilian Central Bank as the leading digital assets regulatory body in the country.
The move is expected to catalyze growth in Latin America’s largest economy and create an optimistic environment for crypto ventures. While some issues – such as asset segregation and clear definitions of securities – appear to be “work-in-progress,” the regulations introduce clarity, paving the way for increased activity and developments in the industry. Ordem e Progresso, indeed.
Coinbase continues its battle with the SEC
Following the SEC’s legal attack on Binance, the US regulator is now repeating the operation, this time with Coinbase. The institution considers that the company has failed to comply with securities regulations. Coinbase distinguished itself by responding with a video entitled “update the system”, which was widely shared on the networks.
At the same time, other territories such as Hong Kong are taking advantage of the situation to invite Coinbase to set up shop outside the USA.
CEX volume at an all-time low
Decentralized exchanges (DEX) continue to lose ground to centralized exchanges (CEX). Currently, around $5 billion is traded daily on centralized exchanges, a low not seen since 2020. Recent events have largely contributed to the mistrust of CEXs.
Binance forced to reduce its presence in Europe?
Regulatory tensions surrounding Binance are forcing the platform to review its support. In the space of a few days, the giant has announced its withdrawal from Cyprus, it has also been forced to end its services in the Netherlands for lack of a license, and the Belgian Autorité des Marchés Financiers has ordered a suspension of its services in the country.
On the French side, the Binance branch is reportedly under investigation for failing to meet several of its legal obligations.
In France, the AMF publishes its first thoughts on DeFi
The Autorité des Marchés Financiers (AMF) has just published a discussion paper on the subject of decentralized finance (DeFi). In particular, it highlights the complexity of the exercise due to the very nature of the protocols. Simply determining the criteria according to which an activity could be considered DeFi requires a delicate trade-off. At present, the criteria are likely to revolve around permissiveness and the number of entities or users.
52% of the largest US companies have undertaken Web3 projects
Entitled “The State of Crypto: Corporate Adoption”, a study conducted by Coinbase and The Block Research reveals that 52% of Fortune 100 companies are investing in crypto or blockchain-related initiatives since the start of 2020. The finance, technology and retail sectors are the most represented in this study. In contrast, we find that only 1% of these companies’ investments are geared towards DeFi. Here is how to transition your brand from Web2 to Web3.
Singapore joined hands with Korea, Italy on CBDC project
Singapore’s Monetary Authority (MAS) joined hands with Korea, Italy, and the IMF to spice things up for CBDC research. The regulator released a fresh new whitepaper — the so-called innovative Purpose Bound Money (PBM) protocol — which proposes standards for digital money and looks into possible business and operating models for these. The focus of the paper is programmable money, i.e. money that is meant to be used for a specific purpose, regardless of whether the underlying currency is a CBDC, a tokenized bank deposit, or a stablecoin. Amazon is already on board, testing purpose-bound money for online retail payments.
The New UK Asset Class
The UK Law Commission proposed a new digital property category to include cryptocurrencies and NFTs under UK law, aiming to provide legal clarity and protection for crypto asset holders. Under the proposal, they’d fall under personal property categories such as “things in possession,” like gold, and “things in action,” such as company shares. Prime Minister Rishi Sunak requested the assessment in line with the government’s ambition to establish the UK as a crypto hub, where “a surgical” rather than “an agricultural approach” will be utilized. That last bit is just good to know.
BTC: Gold Post-Covid – 1:0
Bitcoin and gold are locked in an apparent showdown for supremacy when it comes to the best store of value. BTC’s performance has outshined gold by a whopping 430% since the COVID-19 low. In 2023, Bitcoin went up more than 50%, while gold is chugging along at a far more modest 6.2% increase. Do you get on a wild ride or prefer ascending slow and steady?
Mastercard yet again affirming its commitment
Mastercard is no stranger to cryptocurrencies as the payment processing giant has been active in the space. Yet, the company has taken another step forth announcing its plans to pilot tokenized bank deposits in its UK-based testbed, dubbed the Multi-Token Network (MTN).
With Mastercard yet again affirming its commitment to remain active and build, the space receives a welcome legitimacy boost – it’s what helps us achieve new all-time highs in every way imaginable.
News from the digital euro: Cash+
The Banque de France has given details of the future Digital Euro called “Cash+”. It should be available to European citizens within 5 to 6 years. Its main function will be to be a digital currency that can be used by all member countries of the European Union (EU). It will be issued and controlled by the European Central Bank (ECB).
Despite these clarifications, doubts persist as to its usefulness, particularly in comparison with the current liquid currency.
MicroStrategy has added a 12,333 BTC
MicroStrategy, led by Bitcoin-enthusiast CEO Michael Saylor, has added a cool 12,333 BTC to its stash after splurging $347M in its latest (digital asset) shopping spree. This purchase brings MicroStrategy’s BTC holdings to a total of 152,333, or about $4.6B, for an average buy price of $29,668 per coin.
Michael Saylor predicted earlier this month that the US regulatory crackdown on cryptocurrencies will help Bitcoin nearly double its market share.
A bill to “fire Gary Gensler
Ohio’s 8th District Republican Congressman Warren Davidson has introduced a bill to restructure the Securities and Exchange Commission (SEC), and remove Chairman Gary Gensler from office. While it’s not certain that this bill will ever come to fruition, it at least underlines the fact that Gary Gensler’s decisions do not meet with unanimous approval in the USA, and that the Web3 industry is becoming a real sovereignty issue for countries.
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