Yet Another Bitcoin ETF, Mike Novogratz’s Galaxy Digital Positioning Itself to Lead This Boom

Yet Another Bitcoin ETF, Mike Novogratz’s Galaxy Digital Positioning Itself to Lead This Boom

While the first Bitcoin ETF has made its debut in Canada, the U.S. will be the next — “It’s all part of this accelerating evolution of being a store of value,” says the CEO.

Mike Novogratz’s crypto firm Galaxy Digital is filing for a Bitcoin exchange-traded fund (ETF) through CI Global Asset Management.

The preliminary prospectus dated February 16, 2021, with the securities commissions in each of the provinces and territories of Canada, is still subject to completion or amendment. Galaxy Digital is registered in Canada.

Galaxy Bitcoin ETF (“BTCX” or the “ETF”) will be managed by CI GAM, and Galaxy Digital will act as its Bitcoin sub-advisor and execute trades on behalf of the proposed ETF.

The fund will invest directly in Bitcoin with the holdings of BTC priced using the Bloomberg Galaxy Bitcoin Index, designed to measure the performance of a single Bitcoin traded in US dollars. Novogratz said in an interview,

“Crypto is being institutionalized at an accelerating rate.”

“And now an ETF product is showing up in Canada first; it will show up in the U.S. next. It’s all part of this accelerating evolution of being a store of value.”

No Bitcoin ETF has been approved in the US yet.

Already, the company’s closed-end fund CI Galaxy Bitcoin Fund (TSX: BTCG) is offered by CI GAM trading on the Toronto Stock Exchange in Dec. 2020.

Galaxy’s trading desk is one of the several that are providing BTC for the Purpose Bitcoin ETF, the first-ever approved, which debuted Thursday.

According to Novogratz, following Tesla and MicroStrategy buying Bitcoin, many more companies and pension funds are seeking to do the same.

“All of these stories — and there’s a story every day — really point to a sustainable bull market in crypto,” the billionaire former hedge fund manager said.

The price of Bitcoin surged to a new record high of about $56,600 late on Friday, pushing the market cap of the leading cryptocurrency past $1 trillion for the first time.

Read Original/a>
Author: AnTy

MicroStrategy Wants to Buy More Bitcoin with Another Round of 0 Million Debt

MicroStrategy Wants to Buy More Bitcoin with Another Round of $690 Million Debt

“CEO Michael Saylor is carrying out one of the highest conviction investment thesis we have seen in public markets.” – Bitcoin Bull Anthony ‘Pomp’ Pompliano

The publicly listed company has made yet another bet on Bitcoin by announcing that MicroStrategy intends to offer $600 million worth of convertible senior notes, up to an additional $90 million aggregate principal amount of the notes. The official announcement reads,

“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoins.”

Bitcoin proponent Michael Saylor, the chief executive of MicroStrategy, has already added a total of 71,079 Bitcoin to the company’s balance sheet and is now ready to add even more. MicroStrategy’s $1.145 billion Bitcoin investment has them owning 0.38% of BTC circulating supply.

In December, the company issued convertible senior notes to raise $635 million, whose entire proceeds were used to buy Bitcoin. Veteran investor Bill Miller was one of the buyers of MicroStrategy’s 0.75% convertible bond who called this “unique purchase” a “very little downside and an almost-free call option on Bitcoin.”

Now, yet again, MicroStrategy is ready to take up more debt due 2027, to buy even more Bitcoin, which has been hitting $50,000 for two days in a row.

With the latest jump in prices, the leading cryptocurrency’s market capitalization rose above $940 billion, just a few inches away from the trillion-dollar mark.

The notes will be issued via a private offering to qualified institutional buyers, which will mature on February 15, 2027, unless earlier repurchased, redeemed, or converted and will bear interest payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2021.

Read Original/a>
Author: AnTy

BoE Telling Banks to be Ready for Negative Rates Is Another ‘Boost’ for Crypto & DeFi

BoE Telling Banks to be Ready for Negative Rates Is Another ‘Boost’ for Crypto & DeFi

The Bank of England told British banks this week that they will need at least six months to prepare for a shift to negative interest rates.

It was back in October that BOE asked banks to be prepared for sub-zero rates after revealing in September that it was exploring the possibility to lower the rates below zero if necessary.

In a letter published Thursday, the head of the Bank’s Prudential Regulation Authority, Sam Woods, said a majority of banks would need time to implement tactical or strategic solutions to accommodate a negative bank rate, which is six months.

But the Bank also clarified that it is not sending a signal that negative rates are coming at some point in the future, but that it would be a step to be taken if the recovery to the UK economy falters. BoE had forecast a 4.2% slump in the first quarter, while the Threadneedle Street economists forecast the pre-pandemic levels will be achieved by GDP by March 2022.

This will Boost Asset Prices

BoE’s quantitative easing bond-buying program meanwhile remains unchanged at £895bn after pumping an additional £150bn into the economy.

In December, banking executives from Santander and HSBC warned that their systems weren’t ready for negative rates yet. Negative lending rates, which are expected to lower borrowing costs, would result in a loss of income for savers and pension funds.

Besides money printing, it has been ultra-low interest rates that have pushed investors to Bitcoin and cryptocurrencies as they search for an asset that could provide them higher returns.

Ever since the March sell-off, Bitcoin has jumped more than 1,000%, Ether did 17x, altcoins pumped, and DeFi tokens have simply exploded. Nigel Green, founder, and chief executive of deVere Group said,

“Whilst the debate on whether negative interest rates help the ‘real economy’ or not will continue, there is no doubt that they would help boost financial asset prices.”

According to him, investors will now be looking to top-up their portfolios and move to capitalize on “the lower entry points now before the next significant rally.”

Even Rates on Stablecoins in Double Digits

In the cryptocurrency market, even fiat-based stablecoins are enjoying high-interest rates, especially in the decentralized finance sector.

Popular in the decentralized finance space, the lending rates on stablecoins are up to double digits, as per Defirate. The lending average rate in the last 30 days for DAI is between 2% to 17% on different platforms; for USDC, it goes up to 14%, and USDT’s lending rate gets pushed to 17%.

The cryptocurrency market offers tons of opportunities for investors who want to build on their wealth if negative rates are implemented. And as Green said,

“The best way, as ever, is to bolster portfolios, ensuring they are properly diversified across asset class, sector, region, and currencies.”

Read Original/a>
Author: AnTy

GBTC Premium Collapses Under Zero For the First Time Ever, But its Biggest Holder Calls for ‘Up’

Another day, another Elon Musk induced pump. However, this time, it was a smaller one as Bitcoin only went to $34,700, and we are back under $33,000.

While sharing his support for BTC, Musk said he sees Bitcoin on the “verge of getting broad acceptance by conventional finance people.”

That’s to be expected as ever since last year, with central banks around the world printing money and debasing fiat currencies, institutional investors, family offices, and endowment funds have been taking a special interest in Bitcoin.

“As Bitcoin gains more mainstream adoption, participants are now more sophisticated investors,” said Joel Revill, CEO of Two Ocean Trust, a wealth management firm.

Hedge Funds Short on Bitcoin

While Bitcoin is resting, for now, the market sees this as a healthy sign for a higher move later. Not to mention, the network fundamentals are stronger than ever, with a hash rate near ATH and difficulty at its peak.

January actually saw the Bitcoin network at its all-time high with more than 22.3 million unique addresses active in the network sending or receiving BTC – the highest monthly number in Bitcoin’s history to date, as per Glassnode.

Bitcoin may also finally get the attention of retail investors from Wall Street Bets, given that hedge funds are record short on Bitcoin.

Wall Street bets have been pushing the prices of the heavily shorted company shares to the moon, which has led to the largest active hedge fund deleveraging to happen since Feb. 2009, as per Goldman Sachs.

As retail traders come together to pump the prices, hedge funds are selling their long positions and covering their shorts in about every sector in an attempt not to be the next Melvin Capital, which lost 53% on its investments in January.

While the traditional market investors have started to take the crypto route after Robinhood halted trading for the popular stocks and later limited their buy limits, we have yet to see the herd come for Bitcoin.

GBTC Premium Plunges into Negative

Hedge funds on CME are short on Bitcoin futures for more than $1 billion, which means they are betting that the price of the leading digital will fall. They have been increasing their short positions since October when the BTC price started climbing.

During this period, the price of Bitcoin went from about $10,000 to an all-time high of $42.000 in early January, and ever since then, it has been raging between $30k to $40k.

As data provider Skew has previously shared, these leveraged funds, while short on CME Bitcoin futures, are likely to be long on Grayscale Bitcoin Trust (GBTC) trying to collect the Grayscale premium and the CME futures basis.

Interestingly, for the first time ever, the GBTC premium, the difference between the market price of bitcoin and the implied price by GBTC, has gone negative today. This premium has been dropping ever since Dec. 22nd, 2020, when it was above 40%.

On Friday, as GBTC shares traded at a discount of -1.5%, Crypto enthusiast with Twitter handle AusteritySucks commented, “Whales who got in at NAV impatient, or retail dumping scared? guessing the former.”

This could be because of fading demand for Bitcoin over $30k or increasing competition with BlockFi, Ninepoint Partners, and other filings for a Bitcoin trust. Overall, it needs to be seen if it’s only been a blip or it will persist.

What’s important is that Three Arrows Capital, the biggest GBTC holders, are bullish on Bitcoin, with one of the co-founders Kyle Davies calling for “up.”He tweeted,

“BTC 30k to 40k, the mkt got greedy with leverage and was punished for its sins back to 30k. Reborn deleveraged, Robinhood’s centralized gaffe, and the planet’s wealthiest innovator publicly joining the winning team. The time has never been better for a decentralized future.”

Moreover, Guggenheim’s proposed SEC filing to buy $500 million in Bitcoin via GBTC has been officially effective from Jan. 31st, 2021.

Read Original/a>
Author: AnTy

BlackRock CEO: We’re Watching Bitcoin, It Could Be Another Store Of Wealth But Not Proven Yet

BlackRock CEO: We’re Watching Bitcoin, It Could Be Another Store Of Wealth But Not Proven Yet

The Bitcoin market needs to have a broadening so that large sums of money can be invested without moving the value for it to be successful, said Larry Fink, the founder of the world’s largest asset manager with $8.67 trillion AUM.

The price of Bitcoin might still be stuck up around $30,000, but institutions are still watching it and getting involved.

As we reported, the world’s largest asset manager who has $8.67 trillion in assets under management as of January 2021, recently filed with the SEC to add Bitcoin futures as an eligible investment to two of its funds.

Now, BlackRock CEO Larry Fink again talked about all the excitement around the leading cryptocurrency. “We’re watching it, we’re enjoying the conversation,” said the founder and Chairman of the asset manager giant.

While talking about working together on climate change, which he sees as an “investment risk” and sharing optimism around capital coming into China, Fink also addressed the Bitcoin market in an interview with Bloomberg, where he says, Bitcoin “is still very small.’

“It can move in a very large increment with small movements of money. So, it is not the market for the calm,” he said but added that he “understands the enthusiasm around it.”

Fink reiterated his views that this asset category is very small relative to other asset categories. The untested, highly volatile market is getting a lot of attention from the business media, which believes it’s gonna have a huge future, he said.

“People are fascinated about it,” Fink said. “It could be another store of wealth. But right now, it’s still untested. It has huge volatility.”

Fink is playing it neutral now as he says that the leading digital currency “has not proven yet on the long term viability of it.”

“For it to be truly successful, it is gonna have to have a broadening of a market, and you can invest large sums of money without moving the value,” he said. “So we are watching it, we’re enjoying the conversation” and fascinated by how many people have enjoyed the conversation.

The CEO also said that some form of a digitized currency would be playing a bigger role in the future, but it’s to be seen if it would be Bitcoin or some other currency.

Read Original/a>
Author: AnTy

Grayscale Donates $1M in Support of Crypto Advocacy Group; Will Match Another Million

Grayscale Donates $1M in Support of Crypto Advocacy Group; Will Match Another Million

Major digital asset manager Grayscale investment is donating $1million and would match further pledges from other firms

Top asset manager Grayscale Investments has donated $1 million to crypto-based think tank Coin Center. Grayscale also plans to match subsequent pledges from donors up to an additional $1 million, per an official announcement. The donate and match campaign is set to run through the end of February 2021. Grayscale’s CEO Michael Sonnenshein explains,

“While it is the responsibility of blockchain and digital currency firms to support good policy-making in DC to drive this industry forward, it is in the interest of all users, developers, investors, and other market participants that regulators are properly informed about developments in this space.”

Grayscale’s donation takes a cue from Kraken that raised over $3 million for the cryptocurrency advocacy group in 2018. Jerry Brito, executive director of Coin Center, in a statement,

“We’re grateful and humbled by this generous commitment from Grayscale and the ongoing commitment by so many other individuals and firms who support us.”

Educating Policymakers on Cryptos

Coin Center is a Washington-based think tank created to advance public policy that benefits the blockchain space.

The advocacy group is known for fighting for Bitcoin’s cause. In 2017, Brito testified before members of the Terrorism and Illicit Finance Subcommittee of the House Financial Services Committee, explaining in simple details how Bitcoin works.

At the hearing, the Coin Center chief advocated for a deep understanding of the technology before slamming restrictive regulations on it.

Last month, Coin Center formed part of the opposition against the Treasury Department’s move against self-hosted wallets. Coin Center published an expert take from C Labs executive Jai Ramaswamy, who argued against restricting self-hosted wallets to detect and disrupt illicit financial activity in support of noncustodial wallets.

Grayscale’s donation comes amidst a change of guard as a new administration settles into Washington. With the new faces at the Securities and Exchange Commission (SEC) helms and the Commodity Futures Trading Commission (CFTC) comes new ideas and possibly new regulations. However, there are speculations that the Biden administration is tapping technocrats with experience with blockchain technology.

Read Original/a>
Author: Jimmy Aki

Michael Saylor’s MicroStrategy Buys Another $50 Million (2,574) in Bitcoin

  • Founder Michael Saylor discloses MicroStrategy purchased another $50 million in Bitcoin
  • The tech company now owns over 40,824 BTC

MicroStrategy is known as a platform for business analytics, guiding other enterprises in their efforts to transform their own brands. The brand originally launched in 1989 with founder Michael Saylor, signing McDonald’s as their first major client in the early 1990s. In recent years, the company launched MicroStrategy 2020 as a way to use machine learning technology and augmented intelligence for business strategies.

Now, Saylor has announced another change – another massive investment, adding to the companies Bitcoin holdings. In a tweet on Friday, Saylor explained that the company purchased $50 million in Bitcoin, which amounts to 2,574 bitcoins. At the time of the purchase, the average cost per Bitcoin was $19,427.

This purchase is not the first time that the company has added Bitcoin to the company’s financial assets. In August this year, the company turned to Bitcoin as it experienced fewer returns during the coronavirus pandemic that was detrimental to the economy. At the time, MicroStrategy purchased 21,454 BTC for $250 million in Bitcoin, the average price was much lower at about $11,635. A little over a month later, they purchased another 16,796 BTC for $175 million. With today’s purchase of 2,574 BTC, the company owns just over $766M with bitcoin current hovering at $18,770.

Not only is the company extremely bullish on the top cryptocurrency, but Saylor has become a beacon in recent months, spreading the word of bitcoin to his peers. He even disclosed that he owns 17,732 BTC personally, worth over $332M.

Saylor’s faith in Bitcoin was recently discussed with Marc Friedrich. The CEO doesn’t believe that Bitcoin is in early the same position as it was even five years ago, making arguments against it irrelevant. With the massive growth since 2017, Saylor compares the asset to the career of Lebron James.

“…Lebron James played basketball from age 9 to 18, and he was talented but erratic and volatile. But then he grew up and from age 18 to 28, he destroyed everybody and everything in his way,” Saylor remarked.

Large transactions of Bitcoin – i.e. anything above $100,000 in value – have increased significantly amongst institutional investors in the last few months. Analysts say that there have been many factors to influence the investment, but Saylor and other investors believe that Bitcoin will remain to be a store of value in the market.

To view the disclosure that Saylor revealed in the tweet, here.

Read Original/a>
Author: Krystle M

Ukraine’s Cryptocurrency Draft Bill Received 67% Approval In its First Parliamentary Hearing

Ukraine has marked another milestone towards the path of crypto regulation, with the country’s proposed draft bill passing its first parliamentary hearing this week. This was the document’s initial debut in the Verkhovna Rada parliament and was passed by an overwhelming 240 votes out of the possible 340. It is now set for a second hearing before the final one, after which it may be adopted as law.

Notably, Ukraine has been making significant efforts to support its growing crypto industry. The country might soon join a short-list of jurisdictions that have already implemented crypto regulations. Unsurprisingly, this Eastern European country was named by crypto intelligence firm Chainalysis as one of the leading countries in crypto adoption.

Ukraine’s Proposed Crypto Draft Bill

This proposed crypto legislation expounds on fundamental operational pillars within the nascent industry; it also presents an oversight approach by its Ministry of Digital Transformation.

For starters, the draft bill seeks to recognize crypto assets as ‘a set of data in electronic form that can be an independent object of civil transactions, as well as certify property or non-property rights.’ Ideally, virtual assets will not be considered as legal tender in Ukraine if the bill is adopted into law.

Other than the detailed definitions to distinguish virtual assets, the bill further singles out digital assets backed by other goods or services. According to the draft bill, this particular class of crypto assets must be taken out of circulation when the underlying ceases to exist.

On the issue of ownership, virtual assets will be deemed to belong to the party that holds the private keys, except for custodial situations and illegal proceeds or those forfeited through a judicial process. Virtual Asset providers also have to be registered and comply with Ukraine’s KYC/AML & data protection stipulations.

A Reprieve for Ukraine’s Crypto Community?

While some stakeholders believe that crypto should not be regulated, Ukraine’s move to join the legally advanced crypto jurisdictions might be a reprieve for its locals. The country has previously been a victim of sudden crypto service halts by big players like Bittrex, who cited uncertain regulatory conditions. Ukraine’s Ministry of Digital Transformation is optimistic that clear regulatory frameworks will encourage crypto growth both locally and internationally.

Read Original/a>
Author: Edwin Munyui

Canaan Reports a Q3 Net Loss $12.3 Million Despite the Crypto Market Comeback

Canaan Creative, a Nasdaq listed Bitcoin miner manufacturer, has reported another loss in Q3 according to the latest unaudited financials released on Nov 30. This time the number jumped to $12.3 million, which is around four times the $2.38 million reported for the previous quarter. Contrary to the BTC market performance, the firm appears to be struggling after its share price tumbled on the announcement of the Q3 results.

Revenues also dropped to $24 million compared to $100 million in Q3 of 2019; however, this was a 5% increase from Canaan’s Q2 revenues this year. The financial report quotes a figure of $26 million for cash equivalents, which is an 18% jump from its previous $22 million in Q2. It further highlights that Canaan has allocated $30 million into short-term financial products where it can withdraw liquidity conveniently at any time.

Canaan’s CFO, Quanfu Hong, defended the performance and attributed a big part of the loss to reduced activity at the onset of the COVID-19 pandemic. Hong noted that demand has started to increase, and they are set to be back on track with Q4 pre-sale orders,

“Demand for mining machines in the market continued to rebound in Q3 2020. We have received a large number of pre-sale orders scheduled for delivery starting in the fourth quarter.”

Nonetheless, Canaan is still taking a hit on its market share according to the latest stats; its terra hashes sales tanked to 2.9 million compared to 3.7 million in Q3 of 2019. On average, one T/H costs $8.27 this year, while last year’s price was well over $27 per T/H. Its competitors Microbt, Bitmain, and Ebaang, continue to capitalize on the shortcomings.

Currently, one Canaan share price is trading at $5, having lost 13% within the past 24 hours. Like Bitmain, the firm has also been a victim of internal wrangles, which saw some of its directors dropped from the registry back in July.

Read Original/a>
Author: Edwin Munyui

Andre Cronje’s Yearn.Finance Confirms Fifth Partnership with DEX SushiSwap

It’s another day and another merger for Yearn.Finance, which just notched up its fifth major collaboration in a week.

In a blog post from yesterday, yearn founder Andre Cronje confirmed that the decentralized finance (DeFi) protocol had collaborated with decentralized exchange (DEX) SushiSwap.

Overlapping Developments and a Path Forward

SushiSwap is a fork of DEX Uniswap. In his blog post, Cronje explained that Yearn and SushiSwap had overlapped in recent developments. SushiSwap has expanded on its automated market maker (AMM), and Yield has broken bonds with its money market and yield strategies. With so much overlap in the systems, Cronje claimed that they could take their relationship to the next level.

Under the new merger, both protocols have agreed to share resources. The total value locked in both protocols will also increase, and the collaboration will see Yearn strategies use SushiSwap going forward.

Also prominent in the new marriage is that SushiSwap will help Yearn launch Deriswap, a new product from Cronje. Announced last week, DeriSwap is a protocol that combines different aspects of DeFi. It focuses primarily on options, swaps, futures, and loans. While Cronje offered scant details about the protocol, he pointed out that it would use the standard Uniswap contract, with liquidity providers offering ETH-BTC. When traders swap tokens, liquidity providers earn fees.

Beyond the developments already laid out, Cronje also highlighted that users would need to vote on several new ones. These include Yearn participating in SushiSwap’s governance and adding SUSHI tokens to its treasury and vice versa. Developers are also proposing grants for Sushi contributors, which will be paid via yGift, and more.

Yearn’s Landmark Week

This appears to be the one merger that doesn’t have to do with any other announced by Yearn Finance in the past week. So far, Yearn’s SushiSwap collaboration is it’s fifth in a week, demonstrating the protocol’s seriousness about expanding its footprints across the DeFi space.

Yesterday, the lending and savings protocol Akropolis confirmed that it had partnered with Yearn to develop its operational strategies.

The protocol will benefit from the expanded Yearn ecosystem, including names like lending protocol Cream and insurance market coverage provider Cover.

Yearn is expected to benefit from Akropolis’ business development infrastructure and institutional contacts. Akropolis will deprecate AkropolisOS and Spark, two of its products that aren’t related to yield farming. Both products will be moved to open-source development and incorporate front ends to allow professional traders to access the new ecosystem from Akropolis and Yearn.

Read Original/a>
Author: Jimmy Aki