UK Watchdog Extends Registration Regime Deadline for Crypto Businesses

FCA Extends Registration Deadline for Crypto Businesses; ‘Significantly High Number’ Not Meeting AML Standards

While issuing yet another warning to investors about crypto assets, FCA said even if a company is registered with them, they are “not responsible for making sure” that those businesses protect client assets.

The Financial Conduct Authority (FCA) says a significant number of cryptocurrency firms are withdrawing their applications to register with the agency because they are struggling to meet anti-money laundering and counter-terrorist financing standards. The U.K. markets regulator said in a statement Thursday,

“A significantly high number of businesses are not meeting the required standards under the Money Laundering Regulations resulting in an unprecedented number of businesses withdrawing their applications.”

As such, the FCA is extending the deadline for its Temporary Registrations Regime for existing crypto-asset businesses to March 31, 2022, from July 9, 2021.

This extension will allow crypto companies to continue to operate while their applications are under “robust assessment.” However, those firms that are not part of the regime or registered with the FCA will be subject to the regulator’s criminal and civil enforcement powers if they continue trading.

Currently, just five companies are registered with the FCA, including crypto exchange Gemini and British start-up Ziglu. Dozens of applications are sitting on the regime list.

In the same statement, the FCA issued yet another warning to investors about the highly speculative nature of crypto assets. Customers should be prepared to lose all their money quickly, the FCA said yet again.

The watchdog has no consumer protection powers for activities of a firm, and even if a company is registered with the FCA, “it is not responsible for making sure crypto-asset businesses protect client assets (i.e., customers’ money),” it adds.

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Author: AnTy

China’s Regulatory Crackdown Focused on High Leverage Derivatives Trading

China’s Regulatory Crackdown Focused on High Leverage Derivatives Trading

Buying, selling, and holding of cryptocurrencies is not affected; rather, derivatives trading is targeted as crypto exchanges suspend related services for Chinese users.

Ahead of the politically sensitive 100th anniversary of the ruling Communist Party on July 1, China recently took a strong stance against Bitcoin and crypto mining, which sent the prices of the cryptocurrencies crashing.

However, things seem to be leaning towards derivatives trading rather than the spot market.

One of the biggest Chinese cryptocurrency exchanges, OKEx, recently clarified that while the regulators are going to be more strict on exchanges and mining operations, people can still hold cryptos.

The exchange noted that the clampdown has been “mainly due to potential risks for consumers and society in China.”

Before the State Council’s notice, the China Internet Finance Association also warned the public about the risks of investing in cryptocurrencies, which focused on the fact that institutions should understand the nature of crypto assets, financial institutions shouldn’t engage with them and must abide the existing regulations, and that China does not offer legal protection for crypto-related investment.

Amidst this, China’s largest altcoin exchange MXC announced that new users in China are prohibited from trading futures.

“Due to recent dynamic changes in the market, MXC will be suspending some of our services such as Margin Trading and Futures to new users from a few specified countries & regions. Most users will be unaffected by this change,” said the exchange.

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Another exchange BitMart also reported a change in policy as per which it will suspend contract trading services for all Chinese users. While the positions already opened can be closed, no new positions are allowed.

“Chinese state media are severely criticizing high-leverage futures trading,” noted local media, Wu Blockchain.

Binance, Huobi, Bybit, and OKEx are the top four global exchanges, and Huobi, which is most sensitive to China’s policy, has also announced that it has banned new Chinese users from using futures, it added.

Recently, in an interview, Binance CEO Changpeng Zhao revealed that its Chinese market comprises 80% to 90% of retail, unlike the US, where it’s exactly the opposite with institutions accounting for this much share.

Wu Blockchain also noted that Binance has also changed all Chinese related to contracts and leverage to traditional Chinese because it is “worried about mainland China’s crackdown on leverage and derivatives trading.”

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Author: AnTy

“We’re In A Capitulation Phase,” Says Ark Invest’s Cathie Wood; High Conviction In $500k Bitcoin Target

“We’re In A Capitulation Phase,” Says Ark Invest’s Cathie Wood; High Conviction In $500k Bitcoin Target

While she believes it is a “really great time to buy,” she doesn’t know if the bottom is in because “You never know how low is low when a market gets very emotional.”

As Bitcoin price crashed more than 50% to $30,000 from its all-time high of $65k, the market sentiments have moved into the “extreme fear” category.

But Bitcoin bull Cathie Wood, chief executive officer, and chief investment officer at Ark Investment, is unperturbed. According to her, Bitcoin is on a sale right now, reiterating her price target of $500,000 per BTC.

In an interview with Bloomberg on Wednesday, when asked if her moon target from back in April still stands, she responded in no uncertain terms, “We do. I do.”

“We go through soul searching times like this and scrape the models. And yes our conviction is as high.”

However, she didn’t rule out any deeper pullback either during a time “when a market gets very emotional.”

She pointed out how traders have been looking at a 200-day moving average and when BTC dumped below that, they also dump and run, the same as speculators. “This is as bad as it got during the Coronavirus crisis,” Wood added.

But based on all the analysis Ark has done with its crypto expert Yassine Elmandjra, all the indicators suggest that we are in the capitulation phase, which she said is a “really great time to buy,” no matter what the asset is.

“I think we’re in a capitulation phase.”

Besides Bitcoin, as we reported, Ark Invest is now also interested in Ethereum, and this week, they even bought more Coinbase shares, purchasing an additional $90 million. ETH -26.10% Ethereum / USD ETHUSD $ 2,490.54
-$650.03-26.10%
Volume 84.64 b Change -$650.03 Open $2,490.54 Circulating 115.94 m Market Cap 288.76 b
6 h “We’re In A Capitulation Phase,” Says Ark Invest’s Cathie Wood; High Conviction In $500k Bitcoin Target 7 h Tesla Has Diamond Hands Amidst “Extreme Fear,” Michael Saylor Now Owns 0.6% of BTC’s Circulating Supply 8 h Saxo Markets Launches BTC, ETH, & LTC Trading on ‘Strong Demand’

Tackling Environmental Concerns

While price-wise, nothing has changed for Bitcoin, what has changed is the environmental concerns around Bitcoin that caught the eye of Tesla CEO Elon Musk, who wants to make sure he understands this, she said.

“We believe that even this is going to change because first of all, right now the percentage of bitcoin mined with renewables and hydroelectric power is quite substantial.”

She further discussed how, in conjunction with Square, they believe that bitcoin mining can be integrated into the distribution grid, such as solar roofs, power walls in homes, and utility merchant power producers starting to include bitcoin mining in the ecosystem.

And this would happen because renewables are intermittent power sources which would mean bitcoin mining could take off.

“If there’s excess energy from solar being loaded into power walls it can be offloaded into bitcoin mining and the whole ecosystem, therefore, becomes much more economic. If this happens we believe that the adoption of solar is going to accelerate dramatically because there’s another profit center associated with it, Bitcoin mining.”

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Author: AnTy

Sushiswap’s SUSHI is the “Most Undervalued Token,” says Arca CIO Jeff Dorman

SUSHI price has been moving back upwards while SushiSwap enjoys high volume, keeping between $500 million and $1 billion, and liquidity around $5 billion this month.

After bottoming out at about $10, SUSHI is back to moving towards its all-time high of $23.38 as it trades around $17.5. If Bitcoin doesn’t correct and takes the entire crypto market down with it, SUSHI has a good chance to rally here and make a new ATH just like other cryptos. BTC -5.95% Bitcoin / USD BTCUSD $ 46,944.92
-$2,793.22-5.95%
Volume 58.82 b Change -$2,793.22 Open $46,944.92 Circulating 18.71 m Market Cap 878.39 b
9 h 70% Bitcoin Mining Pools Give Signal to Taproot’s Second Attempt 9 h Ether Will “Keep Gaining Market Share Relative to Bitcoin,” Says Pantera Capital 9 h Aker ASA Considering Accepting Bitcoin as Payment; Elon Musk’s Remarks Change Nothing

And this high can be a lot higher as according to Jeff Dorman, CIO of digital asset investment management firm Arca, Sushi is currently the “most undervalued token” in the crypto market.

In a detailed thread on Twitter, Dorman shared his reasoning for why the recent downward price action will be short-lived.

SUSHI, the native token of Sushiswap, which accounts for the second-largest DEX market share at 15.5% after Uniswap’s nearly 60% dominance, has been underperforming both UNI and the broader DEX market since the beginning of the year, as evident in the 50% peak-to-trough decline in March and Apri.

This is because of Uniswap V3 hype, PancakeSwap growth, and rolling 6-month vesting unlocks from initial Sushi yield farming, said Dorman.

SUSHI’s biggest competition is likely to be CAKE and not UNI, whose high gas fees turned CAKE into a viable DEX which is why we  zsaw flat TVL on SushiSwap & lower volumes in March / April, as users paid nothing in gas and earned higher LM rewards on Pancake, he added. CAKE -8.87% PancakeSwap / USD CAKEUSD $ 28.77
-$2.55-8.87%
Volume 313.42 m Change -$2.55 Open $28.77 Circulating 164.9 m Market Cap 4.74 b
10 h Sushiswap’s SUSHI is the “Most Undervalued Token,” says Arca CIO Jeff Dorman 1 w Cryptocurrency Related Stocks Tumbling in a Massive Divergence from Crypto Assets 1 w Ethereum Fork ETC Trading 12% Higher on Coinbase, CAKE Wicks Down Over 13.5% on Binance

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While these factors don’t have any actual impact on the token’s valuation and core business, they are affecting the price.

When it comes to vested supply, “dilution from yield farming can be just as painful when an asset is out of favor,” as happened with CRV and UNI during their short yield farming stint. CRV -12.47% Curve DAO Token / USD CRVUSD $ 3.23
-$0.40-12.47%
Volume 443.42 m Change -$0.40 Open $3.23 Circulating 354.56 m Market Cap 1.15 b
10 h Sushiswap’s SUSHI is the “Most Undervalued Token,” says Arca CIO Jeff Dorman 1 w Sushi Goes Live on Polygon (MATIC), Andre Cronje Proposes A Curve like Mechanism for it 3 w Uniswap Hits $10B In Weekly Trade Volume; DEX’s Current Pace Would Be Half A Trillion-Dollars per Year
YFI -13.92% yearn.finance / USD YFIUSD $ 66,807.76
-$9,299.64-13.92%
Volume 851.97 m Change -$9,299.64 Open $66,807.76 Circulating 36.64 K Market Cap 2.45 b
10 h Sushiswap’s SUSHI is the “Most Undervalued Token,” says Arca CIO Jeff Dorman 3 d Aave Is Testing Private Pools for Institutions to Ape into DeFi, Reveals CEO Stani Kulechov 3 d Yearn Capitalizes on Retail Mania, Sends YFI to Nearly A Six-Figure ATH

According to Dorman, some of Sushi’s inflation could be mitigated through an ongoing proposal made by Yearn creator Andre Cronje that recommends looking up additional SUSHI into oSushi. Currently supported by 97% of the community, SUSHI tokens will be locked for up to 3 years if this passes.

Another proposal, SIMP, has been introduced, which allows SUSHI rewards to be claimed immediately instead of vesting it over a six-month period with a penalty that is to be decided which will be directly sent to xSUSHI stakers. This is expected to end distraction and allow the project to focus on building.

With over 68% votes, currently, the community has chosen 0% penalty and unlock.

While the overhangs are impacting the price, they haven’t affected SUSHI’s performance as the DEX enjoys high volume, keeping between $500 million and $1 billion, and liquidity around $5 billion this month.

Sushi is also launching cross-chain and seeing traction with Polygon (MATIC) TVL at $400 million. Also, there is an ongoing Treasury Diversification Proposal that would diversify the SUSHI-only treasury into a basket of blue-chip DeFi tokens, de-risking & strengthening the balance sheet. MATIC 8.50% Polygon / USD MATICUSD $ 1.60
$0.148.50%
Volume 5.93 b Change $0.14 Open $1.60 Circulating 6.12 b Market Cap 9.77 b
10 h Sushiswap’s SUSHI is the “Most Undervalued Token,” says Arca CIO Jeff Dorman 2 d Ethereum Scaling Solution Arbitrum Opens its Mainnet with Sequencer for Developers 2 d Decentralized Trading Platform Slingshot Launches Open Beta On Polygon (MATIC)

So, “as investors rotate back into DeFi (and they are), these are the opportunities to look for,” said Dorman.

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Author: AnTy

Swiss Bank UBS Plans Cryptocurrency Offerings to High Networth Clients

Swiss Bank UBS Plans Cryptocurrency Offerings to High Networth Clients

Leading Swiss investment bank UBS Group AG is considering adding cryptocurrency offerings to its services.

UBS Group To Offer Cryptocurrency Services

According to Bloomberg, UBS is exploring various alternatives to offer its wealthy clients exposure to cryptocurrencies like Bitcoin.

Anonymous sources familiar with the plan told Bloomberg that UBS would only invest a small percentage of their client’s wealth in cryptos due to their volatile nature of the sector. One of the means being considered includes investing through third-party investment vehicles.

UBS is a Swiss multinational bank founded over 170 years ago at the advent of the Swiss banking industry. It’s known as a billionaire’s bank that manages a large amount of private wealth globally. The firm counts around 50% of the world’s billionaires as its clients.

Banking Giants Considering Offering Crypto Services

Several banking giants seem to have warmed up to offering cryptocurrency trading and custody services following Bitcoin’s terrific rise this year.

The news of UBS comes after banking firm Citigroup revealed it was mulling the idea of floating a crypto trading, custody, and financing service.

The global head of foreign exchange at Citi, Itay Tuchman, revealed Citigroup’s interest in crypto when he spoke about how the bank had seen a high surge of interest in Bitcoin from large clients since last August. Tuchman, however, said the firm is in no rush to launch crypto services.

Many other investment banks are pushing towards cryptocurrencies. Earlier this year, Goldman Sachs relaunched its cryptocurrency trading desk after a three-year hiatus, with new plans to once again support Bitcoin futures trading.

Morgan Stanley also became the first major US bank to offer its wealth management clients access to Bitcoin funds. The bank announced that it would launch access to three funds allowing Bitcoin ownership.

Sources have also revealed that JPMorgan Chase & Co is preparing to let private wealth clients invest in a managed Bitcoin fund for the first time.

BNY Mellon Corp also joined the crypto train when it disclosed its intention to form a new unit to help clients hold, transfer and issue digital assets in February.

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Author: Jimmy Aki

Reflecting On “High Momentum,” Crypto Exchange Volumes Jump Up Into The Trillions

Reflecting On “High Momentum,” Crypto Exchange Volumes Jump Up Into The Trillions

2021 has been an explosive year so far.

As prices rallied, so did the crypto market cap from about $780 billion at the beginning of the year to an all-time high at $2.35 trillion on April 17. As of writing, the total market cap is just under $2 trillion.

With this price move, the volume on cryptocurrency exchanges also exploded. As Coinbase revealed in its Q1 2021 results, it did $335 billion in trading volume in just three months.

In total, last month, crypto exchanges did $1.17 trillion, and in April, so far, we have already surpassed $1.26 trillion, as per The Block data.

Comparatively, $3.32 trillion was recorded in volume by the New York Stock Exchange (NYSE) alone in March. NYSE is the largest exchange venue, operating NYSE, NYSE Arca, NYSE Chicago, NYSE American, and NYSE National, which makes up 20-25% of US equity exchange trading.

Interestingly, while total crypto trading volume was a mere 8% of NYSE Group’s volume in September 2020, it reached 48% in February 2021.

These numbers could be benefitted by unique features of the crypto market, which runs 24/7, around the globe, and has thousands of crypto assets, in some cases tokenized stocks as well, listed on them.

Interestingly, Bison, the crypto trading app of Boerse Stuttgart, Germany’s second-biggest stock exchange which is one of the largest in the world, also achieved €2 billion (US$2.4 billion) in trading volume so far this year, up from €35 million ($42.3 million) in November.

Launched in 2018, the app also recorded an 83% surge in the number of its active users to 400,000 since the year started. It allows users to trade Bitcoin (BTC), Ether (ETH), Litecoin (LTC), XRP, and Bitcoin Cash (BCH). BTC -0.83% Bitcoin / USD BTCUSD $ 50,052.83
-$415.44-0.83%
Volume 49.01 b Change -$415.44 Open $50,052.83 Circulating 18.69 m Market Cap 935.51 b
4 h Louisiana Passes Bill Encouraging Bitcoin’s Increased Usage while Commending it on its Success 6 h Olives Are A Better Inflation Hedge Than Bitcoin, says “Black Swan” Author 8 h Ethereum London Upgrade with EIP-1559 Set to Be Released on July 14th
ETH -4.39% Ethereum / USD ETHUSD $ 2,214.41
-$97.21-4.39%
Volume 31.87 b Change -$97.21 Open $2,214.41 Circulating 115.61 m Market Cap 256 b
8 h Ethereum London Upgrade with EIP-1559 Set to Be Released on July 14th 9 h Reflecting On “High Momentum,” Crypto Exchange Volumes Jump Up Into The Trillions 1 d Hong Kong Restaurant Starts Accepting Bitcoin, Ether & other Cryptos as Payment
LTC -4.71% Litecoin / USD LTCUSD $ 224.92
-$10.59-4.71%
Volume 4.57 b Change -$10.59 Open $224.92 Circulating 66.75 m Market Cap 15.01 b
9 h Reflecting On “High Momentum,” Crypto Exchange Volumes Jump Up Into The Trillions 4 d Social Trading Platform, eToro US, Adds Chainlink (LINK) & Uniswap (UNI) For Trading 4 d Venmo Allows its 70 Million Customers to Now Buy, Hold, and Sell Crypto Directly Within the App
XRP -6.48% XRP / USD XRPUSD $ 1.05
-$0.07-6.48%
Volume 8.58 b Change -$0.07 Open $1.05 Circulating 45.4 b Market Cap 47.65 b
9 h Reflecting On “High Momentum,” Crypto Exchange Volumes Jump Up Into The Trillions 1 d Hong Kong Restaurant Starts Accepting Bitcoin, Ether & other Cryptos as Payment 1 d SOL Bucks the Trend and Hit a New ATH as Crypto Market Sees Another Sell-off
BCH -6.16% Bitcoin Cash / USD BCHUSD $ 769.18
-$47.38-6.16%
Volume 3.51 b Change -$47.38 Open $769.18 Circulating 18.72 m Market Cap 14.4 b
9 h Reflecting On “High Momentum,” Crypto Exchange Volumes Jump Up Into The Trillions 4 d Cryptocurrency Inflows Record A Five-Week High; XRP Captures Institutional Interest 4 d Venmo Allows its 70 Million Customers to Now Buy, Hold, and Sell Crypto Directly Within the App

This growth in both users and trading volume “reflect the current high momentum in the crypto market and the increasingly broad interest in cryptocurrencies,” said Ulli Spankowski, CEO of Sowa Labs GmbH, a Boerse Stuttgart subsidiary that developed the app.

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Author: AnTy

Cryptocurrency Inflows Record A Five-Week High; XRP Captures Institutional Interest

Cryptocurrency Inflows Record A Five-Week High; XRP Captures Institutional Interest

Inflows into digital asset investment products totaled $233 million last week, the largest since early March. It is, however, nowhere near the record inflow seen in late January. CoinShares, one of the largest crypto asset managers, in its weekly report wrote,

“We believe this recent renewed appetite for digital assets is due to a combination of increasing acceptance from institutional investors, fears for inflation, and price momentum.”

Last week, the price action also pushed assets under management to over $64 billion for the first time.

What’s even more interesting is the crypto assets that the funds have been flowing into. Bitcoin (BTC), without any doubt, continues to see the largest inflows of $108 million, with Ethereum (ETH) right behind at $65 million. This time other altcoins also captured institutions’ interest, with XRP, which CoinShares just launched an XRP ETP, being the most popular among all. BTC 0.91% Bitcoin / USD BTCUSD $ 56,484.77
$514.010.91%
Volume 67.71 b Change $514.01 Open $56,484.77 Circulating 18.69 m Market Cap 1.06 t
3 h South Koreans to Face Tougher Crypto Laws to As Regulators Tackle Cases of Money Laundering 3 h Wall Street Journal Blasts The SEC for Setting ‘Inconsistent Rulings’ in Ripple Lawsuit 4 h TIME Now Accepts Crypto as Payment for Subscriptions in the US and Canada
ETH 6.97% Ethereum / USD ETHUSD $ 2,338.20
$162.976.97%
Volume 39.3 b Change $162.97 Open $2,338.20 Circulating 115.55 m Market Cap 270.18 b
3 h Wall Street Journal Blasts The SEC for Setting ‘Inconsistent Rulings’ in Ripple Lawsuit 6 h Social Trading Platform, eToro US, Adds Chainlink (LINK) & Uniswap (UNI) For Trading 8 h Cryptocurrency Inflows Record A Five-Week High; XRP Captures Institutional Interest
XRP 5.23% XRP / USD XRPUSD $ 1.39
$0.075.23%
Volume 15.54 b Change $0.07 Open $1.39 Circulating 45.4 b Market Cap 63.16 b
3 h Wall Street Journal Blasts The SEC for Setting ‘Inconsistent Rulings’ in Ripple Lawsuit 8 h Cryptocurrency Inflows Record A Five-Week High; XRP Captures Institutional Interest 9 h Celebrating DogeDay: Companies Announce DOGE Support, Network Gains Traction

XRP had weekly inflows of $33 million, nearly doubling its assets under management to $83 million.

Inflows were also seen in Tezos (XTZ) at $7 million, Polkadot (DOT) at $5 million, Bitcoin Cash (BCH) at $4 million, and Binance (BNB) at $3 million. Other crypto assets collectively saw $6 million of inflows. XTZ 1.52% Tezos / USD XTZUSD $ 5.70
$0.091.52%
Volume 651.56 m Change $0.09 Open $5.70 Circulating 767.09 m Market Cap 4.37 b
6 h Social Trading Platform, eToro US, Adds Chainlink (LINK) & Uniswap (UNI) For Trading 8 h Cryptocurrency Inflows Record A Five-Week High; XRP Captures Institutional Interest 5 d European Banking Giant, Société Générale, Issues Security Token On Tezos Blockchain
BCH 3.49% Bitcoin Cash / USD BCHUSD $ 942.35
$32.893.49%
Volume 8.03 b Change $32.89 Open $942.35 Circulating 18.71 m Market Cap 17.64 b
8 h Cryptocurrency Inflows Record A Five-Week High; XRP Captures Institutional Interest 9 h Venmo Allows its 70 Million Customers to Now Buy, Hold, and Sell Crypto Directly Within the App 4 d Chainlink Releases Whitepaper 2.0, Set to Revolutionize DeFi Industry Through Decentralized Oracles
BNB 15.12% Binance Coin / USD BNBUSD $ 586.90
$88.7415.12%
Volume 9.34 b Change $88.74 Open $586.90 Circulating 153.43 m Market Cap 90.05 b
8 h Cryptocurrency Inflows Record A Five-Week High; XRP Captures Institutional Interest 8 h Binance Hires Former Top US Banking Regulator, Brian Brooks as CEO of its US Exchange 9 h Celebrating DogeDay: Companies Announce DOGE Support, Network Gains Traction

Trading volume for these digital asset investment products was also high, totaling $4.8 billion. Last seen in early February 2021, this level represents a rise of 59% compared to last week.

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Author: AnTy

NYDIG Raises $200M from High Profile Investors, Insurance Firms’ Bitcoin Exposure Surpasses $1B

NYDIG Raises $200M from High Profile Investors, Insurance Firms’ Bitcoin Exposure Surpasses $1B

Soros Fund Management, New York Life, MassMutual, Morgan Stanley, Stone Ridge Holdings Group, and FS Investments are the big names, preparing to have an “explosion of innovation in Bitcoin products and services” in the coming months and quarters.

Bitcoin investment firm New York Digital Investment Group (NYDIG) has secured an investment of $200 million in a funding round led by some massive names.

Besides the parent company Stone Ridge Holdings Group, the strategic partners included Morgan Stanley, New York Life, MassMutual, Soros Fund Management, and FS Investments, announced NYDIG Monday. Bessemer Venture Partners and FinTech Collective, who led the two prior funding rounds, were also significant participants.

NYDIG will be working with these firms, which have been in partnership for years, for Bitcoin-related strategic initiatives spanning investment management, insurance, banking, clean energy, and philanthropy.

“These partnerships leave no doubt that institutional adoption of Bitcoin has arrived,” said Robert Gutmann, co-founder, and CEO of NYDIG. The firm is also planning to have an “explosion of innovation in Bitcoin products and services” in the months and quarters of partnership with these new investors.

NYDIG also shared that life, annuity, and property & casualty insurers now own, in aggregate, more than $1 billion of direct and indirect bitcoin exposure through the firm. Michael Saylor, CEO of MicroStrategy, which owns 91,064 BTC commented,

“Institutional funds are now flowing into Bitcoin at an accelerated rate via private equity, public equity, public debt, direct purchases of the commodity, & commodity futures.”

Towards the end of last month, Stone Ridge also filed with the SEC to add Bitcoin to its diversified alternatives fund. Anthony Scaramucci of SkyBridge called this open-ended mutual fund ready to buy BTC a “BIG deal.”

“Stone Ridge filing opens the door for every mutual fund to add Bitcoin (if they want to),” he said at the time.

While Bitcoin price is trading above $50k, there is simply no lack of bullish news in the market.

Goldman Sachs Group revealed substantial demand for digital assets from institutions as it works to reboot its Bitcoin trading desk. Additionally, in a survey of nearly 300 clients by the firm, 40% currently have crypto exposure.

“We see this as a hugely exciting time exploring the potential of that technology,” said Matt McDermott, global head of digital assets for Goldman Sachs Global Markets Division.

Today, PayPal also confirmed that it is acquiring the digital custody firm to “expand its initiatives to support cryptocurrencies and digital assets.”

The acquisition is expected to be completed in the first half of 2021, of which financial terms weren’t disclosed.

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Author: AnTy

Ethereum Price Bounces as the Network Prepares to Attract a New & Wider User base

Ether enjoyed some green moves over the weekend, going as high as $1,755 before making its way to $1,650 on Monday. As of writing, ETH/USD is trading around $1,700.

This upward move followed Bitcoin, making some recovery in tandem with the stock market. Besides aligning with wide market appreciation, Ether’s greens could also be attributed to an upcoming significant change to the network.

Over the weekend, Ethereum blockchain developers approved the EIP-1559 that will burn the network fees paid in Ether, creating a positive feedback loop for its price. The proposal will be part of the London hard fork that can come as early as July.

“This is probably one of the biggest milestones we’ve seen recently,” said Eric Turner, director of research at cryptocurrency analytics firm Messari. Up until the EIP 1559 goes into effect, the supply of Ether has been theoretically infinite. “Now, they’re actually controlling inflation on Ethereum,” and “in some cases, you’re looking at negative inflation, so it’s definitely important,” Turner said.

While scaling Ethereum will lower fees, per user, at the same time, it will “increase the overall userbase by even more, and therefore increase the total fees,” notes Qiao Wang of DeFi Alliance.

This proposal will help attract a new user base by making the platform “easier, faster, and cheaper to use,” explained Wang. Implementing EIP-1559 would mean that only Ether can be used to pay the transaction fees on the network, cementing Ether’s role in the ecosystem.

Tim Beiko, a senior product manager at ConsenSys, also said, going forward, “we’ll gauge demand for the network, and we put that average price as part of the network itself.”

EIP-1559 “fixes a bug in the economics of Ethereum we’ve known about from the start,” Beiko added.

A small bounce in Ether’s price relative to Bitcoin can also in part be attributed to NFTs (non-fungible token) going mainstream.

Traditional media is all over the NFTs, which are being sold for a hefty price. Recently, a publicly available 10-second video clip was sold for $6.6 million.

“At this point, NFTs have made a greater impact than DeFi. Both in terms of cultural impact and news users brought into the wide crypto ecosystem,” said Wang. According to him, it is largely because NFTs are easier than DeFi, from a users’ perspective. “Playing games, collecting items are easier than complex financial games,” he added.

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Author: AnTy

Fed Is Investing ‘Time and Labor’ As A Digital Dollar is ‘High Priority’ says Chairman Powell

Fed Is Investing ‘Time and Labor’ As A Digital Dollar is ‘High Priority’ says Chairman Powell

The Federal Reserve is also “committed” to solving the tech problems. Treasury Secretary, unlike her predecessor, also says it “makes sense for central banks to be looking at.”

Federal Reserve Chairman Jerome Powell told Congress on Tuesday that a digital dollar is a “high priority project for us.”

While the central bank is “looking carefully” at the prospect of issuing a digital currency, Powell said there are “significant technical and policy questions” related to it. Powell said,

“We are committed to solving the technology problems and consulting very broadly with the public and very transparently with all interested constituencies as to whether we should do this.”

Much like always, the Chairman said that as the world’s reserve currency, the US doesn’t have to be the first, but the point is in getting it right.

“This is something we’re investing time and labor in, across the Federal Reserve System.”

Just this week, Treasury Secretary Janet Yellen also said that the Biden administration supports research into the viability of a sovereign digital currency, unlike her predecessor Steven Mnuchin who didn’t see any need for that at the point.

“It makes sense for central banks to be looking at” issuing a digital dollar, Yellen said at a virtual conference on Monday hosted by the New York Times.

According to her, the digital version of fiat currency can help with the financial inclusion of lower-income groups.

“Too many Americans don’t have access to easy payments systems and banking accounts, and I think this is something that a digital dollar, a central bank digital currency, could help with.”

“It could result in faster, safer, and cheaper payments, which I think are important goals.”

Janet Yellen Treasury Secretary

While positive about a digital dollar, Yellen echoed Powell’s views about needing to address the issues first.

“There’s a lot to consider here, but it’s absolutely worth looking at,” she said.

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Author: AnTy