Bitwise 10 Large Cap Index Adds AAVE and Uniswap; CIO Calls DeFi Inclusion a ‘Milestone Event’

Bitwise 10 Large Cap Index Adds AAVE and Uniswap; CIO Calls DeFi Inclusion a ‘Milestone Event’

The DeFi virus is spreading.

Cryptocurrency asset manager Bitwise Asset Management has added two new DeFi blue chips to its Bitwise 10 Large Cap Crypto Index as part of the January month-end index rebalance.

“DeFi assets entering the Bitwise 10 Large Cap Crypto Index is a milestone event,” said Matt Hougan, Chief Investment Officer at Bitwise.

The Bitwise 10 Large Cap Crypto Index (BITX) tracks a total return of the 10 largest crypto assets, which is measured and weighted by their free-float market capitalization and is currently trading at $36,286.

The Index now tracks Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), EOS, Tezos (XTZ), Stellar (XLM), Chainlink (LINK), Uniswap (UNI), and Aave (AAVE). Hunter Horsley, chief executive officer at Bitwise, said,

“The last few weeks has seen de-platforming & censorship by some of our country’s leading companies. In response, new decentralized services—with no corporation, executives, or board—are growing in popularity. Today, the 1st decentralized exchange (UNI) entered the Bitwise 10.”

Just last month, Bitwise liquidated its just over $9 million worth of position in XRP, representing approximately 3.8% share of the Fund, in response to the US Securities and Exchange Commission (SEC) suing Ripple And its top executives for allegedly selling unregistered securities XRP.

“The Bitwise 10 Crypto Index Fund does not invest in assets that are reasonably likely to be deemed securities under federal or state securities laws,” said the company at the time.

Bitwise is not the only one to provide its clients exposure to the world of decentralized finance through the popular DeFi tokens. As we reported, the largest asset manager Grayscale Investments has also filed with the SEC for several single-asset trusts that cover various DeFi tokens, including Aave.

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Author: AnTy

Grayscale Ethereum Trust (ETHE) Finally Opened to Investors After Over a Month

Grayscale Ethereum Trust (ETHE) Finally Opened to Investors After Over a Month

Grayscale, the largest digital asset manager, has resumed the private placement of the shares of its Ethereum Trust (ETHE).

“The Trust’s private placement is offered on a periodic basis throughout the year and is now available to accredited investors for daily subscription,” noted Grayscale Investment.

This is bullish news for Ethereum as it’s been 40 days that any new ETH has been added by Grayscale. It was on Dec. 22nd that Grayscale last purchased 131.25k ETH.

In the meantime, the premium of shares has fallen to 6.27% from the high of 269% last month, as a result of shares being released into the market following the end of their six-month lock-up period,

As of writing, ETHE has $4 billion assets under management (AUM) with 2.93 million ETH in its holding, representing 2.5% of Ether’s circulating supply.

This could result in huge inflows in EHE in the following weeks as Grayscale’s Bitcoin Trust purchased 41.2k BTC in the past three weeks, right after GBTC was opened to the accredited investors.

Interestingly, on top of this, CME will be launching the Ether futures on Feb 8th and combined together, they could bring a herd of institutional investors into Ethereum as well.

This can further give the much-needed push Ether has been in need of. The second-largest digital asset broke into a new all-time high a couple of weeks back, but Ether’s price discovery is lacking the same momentum as of Bitcoin BTC -4.47% Bitcoin / USD BTCUSD $ 32,716.53
Volume 51.7 b Change -$1,462.43 Open $32,716.53 Circulating 18.62 m Market Cap 609.04 b
3 h Bitwise 10 Large Cap Index Adds AAVE and Uniswap; CIO Calls DeFi Inclusion a ‘Milestone Event’ 4 h Grayscale Ethereum Trust (ETHE) Finally Opened to Investors After Over a Month 5 h The Graph Now Exploring Support for Bitcoin, Polkadot, Solana, BSC & Other Layer 1 Blockchains
, which surged to $42,000, double its previous ATH, in less than a month.

As of writing, ETH is trading around $1,316, down from yesterday’s push to about $1,450 in tandem with bullish Bitcoin.

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Author: AnTy

India Proposes Bill to Ban “Private” Crypto’s and Introduce a CBDC, But No Need to Panic

India Proposes Bill to Ban “Private” Crypto’s and Introduce a CBDC, But No Need to Panic

The proposed bill is yet to be presented, and WazirX CEO says they have “been preparing for this” and “pushing for regulations.”

The Indian government is now planning to introduce a bill to ban all private cryptocurrencies and launch its own central bank digital currencies (CBDC).

“To create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. The Bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency (sic) and its uses,” reads the screenshot shared by Crypto Kanoon on Twitter.

However, this isn’t the first time that there are talks of such a bill to be proposed in India or in the crypto space.

Not to mention, the market has been seeing a lot of FUD in the ongoing bull market — China and Tether FUD has already been renewed.

“Let’s not be afraid. We’ve been preparing for this. We’ve been pushing for regulations. I believe this bill will be referred to a standing committee for further deliberations,” tweeted Nischal Shetty, founder, and CEO of Indian exchange WazirX, which is acquired by leading spot exchange Binance.

When it comes to a CBDC, central banks of several countries have taken steps towards this, and Shetty believes it a good thing, but the scary part is banning private cryptocurrencies, which he believes are expected to be in the context of crypto being used as a “currency.”

“Crypto as an asset/utility would be ok in India. It would also be ok to trade these assets. There are millions of Indians who own crypto assets. Billions of dollars of people’s money and wealth are at stake here. I’m sure the Government understands that” he said.

He further goes on to explain that there is no such thing as a “private cryptocurrency” because, by their nature, they are decentralized and public.

“Attacking digital assets by confusing them to be INR competitors wud be amateurish,” he said.

Being a large country, India has the second-largest population in the world after China; the WazirX CEO expects the government to understand the underlying terminologies before presenting any related bills and not be in a rush and destroy the general public’s value by doing it wrong.

Shetty is rather “looking forward to a healthy debate if this is presented” and expects this to be a precursor to positive crypto regulations.

“Wrong or hasty regulations will set us back by a decade. Right regulations will catapult India to the forefront of this technology,” Shetty said.

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Author: AnTy

The Graph Now Exploring Support for Bitcoin, Polkadot, Solana, BSC & Other Layer 1 Blockchains

The Graph Now Exploring Support for Bitcoin, Polkadot, Solana, BSC & Other Layer 1 Blockchains

After successfully launching its mainnet on Ethereum blockchain, The Graph protocol for indexing and querying data is now exploring providing support for additional Layer 1 blockchains.

Blockchain interoperability is a pain point for developers. Amidst the growing DeFi and NFT spaces, applications need to interact with many protocols and chains, reads the official announcement while noting over 7,000 subgraphs are deployed to date. The team said,

“Additional Layer 1 integrations will dramatically increase the number of subgraphs and the ability for dApps to work in a multi-blockchain environment to give users optionality and the best Web3 experience.”

The blockchains under consideration include Bitcoin, Polkadot, NEAR, Cosmos, Solana, Avalanche, Binance Smart Chain, and Celo to support Web3 development and make it easy for developers to access on-chain data and build decentralized applications.

Already many Ethereum projects have built subgraphs to retrieve data, including Uniswap, Aave, Synthetix, ENS, and DAostack. Eva Beylin, Director at The Graph Foundation, said,

“After launching mainnet, we are looking to accelerate the upward trajectory of the Web3 ecosystem. That means ensuring that no matter which Layer 1 blockchain you are building on, you can build a subgraph and easily access data from across chains. We think this is a key part of unlocking that next wave of innovation on the decentralized internet.”

The community is currently conducting due diligence on Layer 1’s infrastructure, and they are expected to be onboarded in the coming months.

However, Ethereum will remain the standard, and GRT an ERC20 token, said the team.

The Graph Network’s native $889 million market cap GRT token is currently trading at $0.713 and enjoying an uptrend. It is also up over 101% YTD.

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Author: AnTy

Korean Ministry of Science DeFi Report; Covers AAVE, COMP, UNI, SUSHI, SNX, & More

Korean Ministry of Science Publishes a Report on DeFi, Covers AAVE, COMP, UNI, SUSHI, SNX, and Others

DeFi can replace a large part of the work of traditional financial institutions but “still not much demand for DeFi in real life,” it says.

The Korean Ministry of Science and ICT and the Korea Internet & Security Agency has published a report covering the booming decentralized finance (DeFi) sector in detail.

“The DeFi market is growing rapidly,” states the report while covering the different aspects of the sector, including TVL, with the project Maker having the largest shares of the ecosystem with DEXs and lending services the largest share by category.

It further points to the number of unique active wallets (UAW) as well as customer deposits that show that the DeFi market is growing.

The research was conducted jointly by Block Media Co., Ltd. and Chain Partners Co., based on the Blockchain-based innovative finance ecosystem research service project of the Korea Internet & Security Agency (KISA). It also clarifies that this does not represent the official opinion of the government.

The report ‘Blockchain-based innovative finance ecosystem research’ gives a brief introduction of different DeFi projects, including blue chips like AAVE, Uniswap, Sushiswap, and Synthetix.


“DeFi aims to build a financial system in the form of P2P without a central agency or intermediary based on smart contracts of blockchain technology.”

While DeFi is mainly used in the mortgage loan sector, it noted that “there is high hope that it can be expanded to many financial sectors such as asset management, derivatives, and insurance in the future.”

“In fact, there is also the possibility of replacing a large part of the work of traditional financial institutions,” states the report only to mention that “there is still not much demand for DeFi in real life,” because of the infrastructure which is not easy to build. Additionally, the goal of providing financial services to everyone without a bank account is still a long way to go.

As for all the money and interest focused on DeFi, that is because there is a lot of demand for investment purposes — “many investors are paying attention to DeFi on the news that profits of tens to hundreds of percent are generated in the era of low-interest rates,” with many similarities with the derivatives market.

The report says that the market was created with good intentions allowing anyone to easily use financial services such as loans, transactions, and investments without unnecessary intermediaries.

But there can, of course, be side effects, as was the case with ICOs, which the report says was “a very good system for start-ups where it is difficult to raise funds and investors who are difficult to recover investments in the middle.”

With DeFi, the entry barrier is too high, too, as it requires Metamask. Not to mention, there is no customer center. In other words, although DeFi has relieved credit risk to some extent, it is also a homework that a lot of management risk still remains, it reads.

With no obligation to verify customer identity (KYC), there is a high concern that it could be used for illegal money flow as well. As the scale of DeFi increases, regulatory authorities have no choice but to increase the monitoring of DeFi, “which may lead to a contraction of the DeFi market,” it said. The report reads,

“It can be seen that DeFi is performing a more fundamental digital transformation in that it is attempting the maximum amount that can be implemented in a program for financial logic.”

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Author: AnTy

BlockFi Registers the ‘BlockFi Bitcoin Trust’ with the Securities and Exchange Commission

BlockFi Registers the ‘BlockFi Bitcoin Trust’ with the SEC to Compete With Grayscale’s GBTC

Crypto lending service provider BloackFi has filed for a Bitcoin Trust with the US Securities and Exchange Commission (SEC).

The ‘BlockFi Bitcoin Trust’ has yet to raise money from investors, but as a Rule 506(c) exempt offering, it would be able to offer the product publicly.

With this trust, BlockFi will directly compete with Grayscale’s Bitcoin Trust (GBTC), whose investors are predominantly institutions. Grayscale is the largest digital asset manager currently holds 648.47k BTC, representing approximately 3.5% circulating supply of Bitcoin.

The premium of GBTC is currently down at 3.52% from the highs of over 40% on Dec. 22nd and much lower than over 130% in the summer of 2017.

BlockFi currently caters to both retail and institutional clients. It has more than $8 billion in total client balances and over 125,000 funded accounts.

The firm reported about $100 million in revenue in 2020, which was an increase of 22x from the previous year.

Besides BlockFi, this week, another firm Valkyrie which has $2.3 million in sales, registered a Bitcoin trust.

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Author: AnTy

European Central Bank (ECB) Member: ‘Not Sure Why People Invest’ in Crypto Assets

European Central Bank (ECB) Member: ‘Not Sure Why People Invest’ in Crypto Assets

Central bank members are back with their warnings regarding Bitcoin and cryptocurrencies.

Much like any other time, the warnings remain the same — be prepared to “lose all their money” for crypto investors.

This time the warning came from European Central Bank governing council member Gabriel Makhlouf.

The latest warning from a central banker on the cryptocurrency on Friday when Makhlouf, who is also governor of Ireland’s central bank, said, “Personally, I’m not sure why people invest in those sorts of assets, but they see them as assets clearly.”

“Our role is to make sure that consumers are protected,” he added.

Makhlouf doesn’t see any “financial stability issues at the moment arising from Bitcoin itself” but said the concern is more about the consumer “making the right choices.”

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Author: AnTy

Billionaire Mark Cuban Endorses DeFi as the Real RobinHood

Billionaire Mark Cuban Endorses DeFi as the Real RobinHood

Billionaire Mark Cuban has taken a liking to decentralized finance (DeFi). Not only is he actively involved in owning some of these DeFi tokens and testing out the products, like leading lending platform AAVE but he is also continuously endorsing them on Twitter.

On Friday, the Maverick Dallas owner took to Twitter to share that a part of the trading that retail investors are doing on retail broker Robinhood goes to the zero-commission platform itself.

“This is one more way that Wall St takes advantage of the little guy,” said Cuban, one of the investors on Shark Tank.

While in traditional finance the platforms like Robinhood are the ones taking a cut of the retail’s money, the same percentage of APR is paid to the user itself in the world of DeFi. He wrote,

“Imagine if you pooled your crypto and the platform was getting 30% APY and didn’t pay all but fees to you? What would happen?”

For starters, in traditional finance, no one will allow the retail user to “hold the shares and lend them in YOUR name, so you get the Yield (Yield Farming in stocks!).”

If someone does provide this feature, “one trick that I have been on both sides of is to lend out stock to shorts at a high APY and then call back my shares, which forces the short to cover. Now if WSB did this en masse, it would be the mother of all short squeezes,” said Cuban.

He goes on, the power is in numbers, and what is happening right now in the battle between the retail traders (WallStreetBets) and Wall Street is that the latter “is learning an expensive lesson.” He said,

“Buy and Trade Together can be a whole lot more powerful than old-school buy and hold.”

So, here he suggests small individual traders work together, share information, educate each other, and “use their combined strength to focus on good companies, with strong prospects, the power shifts from wall street to main street.”

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Author: AnTy

Dogecoin Beats Bitcoin by Becoming the Most Tweeted Crypto Ever as Mia Khalifa Buys the Top

Dogecoin Beats Bitcoin by Becoming the Most Tweeted Cryptocurrency Ever as Mia Khalifa Buys the Top

This week on Thursday, Dogecoin became the most tweeted cryptocurrency, beating even Bitcoin’s records set on Jan 2nd, 2021 and Dec. 22nd, 2017, after Wall Street Bets pushed the prices of DOGE to past $0.08. DOGE -46.45% Dogecoin / USD DOGEUSD $ 0.03
Volume 8.48 b Change -$0.01 Open $0.03 Circulating 128.16 b Market Cap 3.67 b
8 h Dogecoin Beats Bitcoin by Becoming the Most Tweeted Cryptocurrency Ever as Mia Khalifa Buys the Top 8 h Bitcoin Market Looking for New Lows After Elon Musk’s Pump & Dump 1 d Crypto Industry Capitalizing on Wall Street’s Losses Big Time, And Getting Rewarded

With more than a 1,000% increase in the cryptocurrency’s prices, everyone jumped on the meme coin that saw over 100k tweets from more than 50k unique (non-bot) Twitter accounts, as per data source The Tie.

During the run-up, a 1,939% increase in Twitter volume and a 1,650% increase in trading activity was registered.

The trading activity was so high that, briefly, DOGE did more than double the volume than the leading cryptocurrency.

This recent price boom shows that “the crypto market remains strongly sentiment driven.”

And the pump and dump seem to be in effect as the price of DOGE is already down 55% from its recent highs and currently trading around $0.038.

But unlike the traditional market, there are no hedge funds that are short-selling the cryptocurrency; rather, the late-comers are the ones left holding the bag. Mia Khalifa is one of the bagholders who literally bought the top on DOGE as she tweeted on Thursday, “Okay I caved and bought the dog stocks.”

The Reddit trading group WallStreetBets along with SatoshiStreetBets were looking to pump DOGE to the moon with $1 as the target. Still, those who have been holding their Shiba Inu-themed coins bags for a long time took this as an opportunity to make some profits finally.

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Author: AnTy

Bitcoin Market Looking for New Lows After Elon Musk’s Pump & Dump

While the endorsement from Tesla CEO and Bridgewater Associates founder is “bullish” for the leading crypto, Ray Dalio says the idea of “a church that one is devoted to determining one’s investment position on Bitcoin” is discomforting.

Bitcoin had a wild Friday as we pumped and dumped beautifully.

What looked like a change of Bitcoin market trajectory turned out to be nothing more than a short-lived pump.

This pump was propelled by the world’s richest person, Tesla CEO Elon Musk, who changed his bio to “bitcoin” that followed up with “In retrospect, it was inevitable.” This tweet was also put in block 668197 mined by yhc5t3.

It turned out to be just like the Xi pump back in October 2019 when Chinese President Xi Jinping’s call for China to accelerate the development of blockchain technology sent BTC above $10,500.

Now, the market is expecting Bitcoin to go back to testing the lows. Already Bitcoin is down more than 7% and dropped under $33,000. Trader Benjamin Blunts is calling for the incoming of new lows at “sub 28k.”

Besides this short-lived pump, Musk taking Twitter CEO Jack Dorsey’s route also resulted in others doing the same. These individuals include Reddit founder Alexis Ohanian who is also busy “staking sats,” Anthony Scaramucci of SkyBridge Capital, YouTuber MrBeast, crypto exchange Gemini founder Tyler Winklevoss and other Bitcoin enthusiasts all having simply “Bitcoin” in their Twitter bio.

“Bitcoin is the signal and it’s getting louder,” commented Michael Saylor, CEO of MicroStrategy on this.

Another positive momentum for Bitcoin came from Bridgewater Associates founder Ray Dalio this week, who turned positive on the cryptocurrency. Mike Novogratz called this endorsement from Musk and Dalio “bullish” for Bitcoin, stating:

“BTC is a store of value. All stores of values are belief systems. And we are getting new converts to the church at an accelerating rate. Stay long.”

However, Dalio was quick to chime in to say that he doesn’t call himself “a convert to the church of an accelerating rate,” rather he would be interested in the response to his assessment of Bitcoin and knowing “what am I missing?”


Exchanges Can’t Handle the Growing Demand

While Musk tweaking his Twitter bio presented the market a pump opportunity, trading platforms couldn’t keep up with the demand they are seeing even since WallStreetBets got on the Dogecoin train and took the road to crypto space after Robinhood paused trading in some of the hot stocks on Thursday such as GME.

Robinhood also temporarily disabled the features that allowed users to buy cryptos instantly. However, the popular retail platform doesn’t offer the ownership of cryptos, rather just buy and sell opportunity through IOUs.

“Due to extraordinary market conditions, we’ve temporarily turned off Instant buying power for crypto. Customers can still use settled funds to buy crypto. We’ll keep monitoring market conditions and communicating with our customers,” said a Robinhood spokeswoman.

As we reported, users then moved on to crypto exchanges but like every other time they couldn’t keep up with this much demand.

Binance said the risk of new users put its system under stress, with its CEO Changpeng Zhao noting that user sign-ups and trades jumped to a record high as well, forcing the exchange to briefly suspend withdrawals.

“We almost ran out of DOGE coin addresses,” Zhao told Bloomberg. “Our system couldn’t generate new addresses fast enough to match new users coming in. It’s crazy.”

US-based Coinbase also reported that “due to a technical issue, we are experiencing degraded service where some trades may not be able to be completed.”

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Author: AnTy