Brazil’s Central Bank Governor Expects Crypto Investment in Country to Surpass $9 Billion

Brazil’s Central Bank Governor Expects Crypto Investment in Country to Surpass $9 Billion

Brazilians have already bought more than $4 billion in crypto this year up to August, as per the central bank report.

The total value of cryptocurrencies purchased by Brazilians this year has exceeded $4 billion, according to the data released by the Central Bank of Brazil in a report last week.

A total of nearly R$ 23.3 billion, $4.270 billion has been traded from January to August-end. In August, the purchase value was $496 million.

In August, Roberto Campos Neto, the president of Brazil’s central bank, also said that they need to pay attention to cryptocurrencies as they are here to stay. “We need to reshape the world of regulation,” he added.

The value of crypto assets bought by Brazilians reached its peak in May at $756 million. That month, the Brazilian market broke a record by trading R$ 826 million ($150 million) in Bitcoin in a single day.

But since then, they saw a drop in June and July at $695 million and $583 million, respectively. Still, these numbers have been much higher than the figures reported earlier this year in February at $386 million and $357 million in March.

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Last week, Deputy Governor for Monetary Policy at the central bank, Bruno Serra, said the Brazilians investment in crypto assets abroad is potentially three times greater than in American shares. He further said that there is a potential for this investment in crypto to reach R$ 50 billion (more than $9 billion in USD).

Serra also believes that people’s interest in cryptocurrencies is unlikely to fade anytime soon.

Earlier this month, as we reported, a bill advanced through Brazil’s House of Representatives, which has been in development since 2015, to regulate cryptocurrency in the country.

The bill calls for creating clearer definitions of crypto, will require virtual asset service providers to register, and further aims to crack down on crypto crimes by imposing higher fines and harsher prison sentences.

After being approved by a special committee of the Chamber of Deputies, the bill is currently in the hands of the Chamber’s Plenary, and once green-lit by them, it will advance to the Senate to be discussed before finally going to the president for a final nod.

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Author: AnTy

$95 Billion Investment Firm CEO Invests in Ether As “A Programmable Bitcoin”

$95 Billion Investment Firm CEO, Barry Sternlicht, Invests in Ethereum As “A Programmable Bitcoin”

Billionaire Barry Sternlicht revealed this week that he owns the top cryptocurrencies, Bitcoin (BTC) and Ether (ETH), due to the excessive amount of money-printing happening globally.

The chairman and CEO of Starwood Capital Group, an investment firm with $95 billion in assets under management (AUM), talked about cryptocurrencies in an interview with CNBC, where he noted that it makes sense to invest in them as a way to diversify a portfolio.

“The reason I own bitcoin is because the U.S. government, and every government in the Western Hemisphere, is printing money now to the end of time, and this is a finite amount of something and it can be traded globally.”

At the same time, he called Bitcoin a “dumb coin,” saying that its sole purpose is being a store of value, and it is crazy volatile. Here comes his second investment, Ether, which is

“a programmable Bitcoin, and there are tons of other coins built on that system.”

When asked about JPMorgan CEO Jamie Dimon calling Bitcoin “worthless,” Sternlicht said, “Gold is kind of worthless too” despite the precious metal having some “industrial uses.”

Additionally, Sternlicht, worth $4.4 billion, has “become very interested in blockchain technology as a whole,” which he believes is “going to change everything.”

“We’re probably in inning one.”

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Author: AnTy

AVAX Hits A New ATH as 3AC and Polychain Lead $230M Investment to Accelerate DeFi on Avalanche

AVAX Hits A New ATH as 3AC and Polychain Lead $230M Investment to Accelerate DeFi on Avalanche

“I consider AVAX to be crucial in turbocharging EVM DeFi for both builders and users,” said Su Zhu, CEO of Three Arrows Capital.

Avalanche blockchain has raised $230 million in a private sale, sending the AVAX token surging.

In response, the $14.2 bln market cap coin AVAX hit a new all-time high on Thursday at $68.34 and, as of writing, is trading around $64.5, up 1,650% YTD

The private sale, which was completed in June, was led by Three Arrows Capital and Polychain. Other participants in the investment included CMS Holdings, Dragonfly, R/Crypto Fund, Collab+Currency, Lvna Capital, and a group of angel investors and family offices.

Emin Gün Sirer, founder and CEO of Ava Labs, described this as the “largest investment” into the Avalanche ecosystem to date.

“I’m thrilled to see so many people realizing the power of Avalanche’s technology and community, and the opportunities for exponential growth.”

Su Zhu, co-founder, and CEO of Three Arrows Capital, shared his excitement to co-lead the $230 million investment in Avalanche, saying,

“I consider AVAX to be crucial in turbocharging EVM DeFi for both builders and users, the Ava Labs team to be incredibly innovative and passionate, and the community to be the fastest-growing.”

The Avalanche Foundation, which is behind the Avalanche blockchain, will be using the proceeds from the token sale to support and accelerate the rapid growth of decentralized finance (DeFi), enterprise applications, and other use cases on the public blockchain.

Focused on speed and low transaction cost, this layer 1 blockchain is an Ethereum competitor much like Solana (SOL) and is also EVM (Ethereum Virtual Machine) compatible.

As we reported recently, to allow the transfer of assets from Ethereum (ETH) to the Avalanche blockchain, the team launched a bridge, and $1.3 billion has already been transferred to Avalanche using this.

It also supports several popular blockchains such as Tether (USDT), USDC, SushiSwap (SUSHI), Chainlink (LINK), and The Graph (GRT).

“Just a year after mainnet launch in Sept. 2020, and Avalanche is still just getting started with countless live projects organically flourishing and Avalanche Rush on the way. There’s no signs of slowing down progress toward fast, low-cost, and easy-to-use DeFi applications.”

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Author: AnTy

$500B German Asset Manager is Considering Adding Bitcoin to A ‘Handful’ of Private Funds

Union Investment, a $500 billion Germany-based asset manager, is testing a pilot program with Bitcoin exposure certificates. If the program becomes a success, it will also open Bitcoin exposure to other funds.

The certificates will be available in the quarter fourth of this year with the date yet decided.

For this, “We are considering adding bitcoins in small amounts of 1% to 2% maximum to a handful of other funds for private investors,” Portfolio Manager Daniel Bathe told Bloomberg.

Union Investment had its first Bitcoin exposure in its mixed fund at the beginning of this year. These were Delta 1 certificates in private funds that are allowed to invest up to 1% in Bitcoin, and currently, they are just below that, according to Bathe.

With this move into cryptocurrency, Union Investment aims to get ahead of its competitors, with one of the largest ones, DekaBank, not yet offering any fund with Bitcoin exposure. However, a spokesperson from Dekabank, Germany’s largest asset manager, did say in July that the firm was also considering investing in the leading cryptocurrency.

Germany is expected to see a massive wave of crypto adoption after a new law came into effect in August that allowed “Spezialfonds” that are holding $1.8 trillion to invest 20% in crypto.

“We are observing an increased interest of mixed fund managers in crypto assets,” said Kamil Kaczmarski, a consultant for financial service providers at Oliver Wyman in Frankfurt.

Traditional German investment managers are likely to begin their crypto exposure through certificates and other derivatives, as seen with German public bank Sparkassen, which recently made Bitcoin and crypto investment available to its customers via certificates, individual stocks, and ETFs.

The post 0B German Asset Manager is Considering Adding Bitcoin to A ‘Handful’ of Private Funds first appeared on BitcoinExchangeGuide.

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Author: AnTy

Gold-Focused Investment Manager Discloses Exposure to Bitcoin via GBTC

Gold-Focused Investment Manager Discloses Exposure to Bitcoin via GBTC

Investment manager, US Global Investors, which is well-known for specializing in gold and precious metals, disclosed in its latest regulatory filing with the Securities and Exchange Commission (SEC) that it now has exposure to Bitcoin.

The Texas-based company added GBTC shares in three of its funds viz Gold and Precious Metals Fund; Global Resources Fund; and World Precious Minerals Fund.

For the quarter ending June 30, the company reported owning 19,000 shares of Grayscale Bitcoin Trust (GBTC), currently worth just under $740k.

According to the document, the company further categorizes the investment type to be “Equity-common.”

GBTC is currently trading at a discount of 13.94% to the underlying Bitcoin’s price. This discount has been prevailing for the last six months, going as far as 21.23% in mid-May.

While it may come as a surprise that a gold favored firm is investing in cryptocurrency, gold bug Peter Shiff said, “this is not a surprise nor does it indicate a shift in the way other gold equity managers view crypto or Bitcoin,” noting that the CEO of US Global Investors, Frank Holmes is also the CEO of Hive Blockchain and has been active in crypto since 2017.

Ever since Bitcoin’s creation in 2009, which is currently worth more than $48k, gold has only grown from $890 to $1,815, representing a growth of only about 115%. In early August last year, the precious metal did hit a new all-time high but could only reach $2,075, while BTC went to nearly a $65k peak in April this year.

Bitcoin is still up 14.5% in August and 64% YTD compared to bullion’s -0.19% and -4.46% performance, respectively.

The institutionalization of Bitcoin and crypto has been happening at a rapid pace this year in the aftermath of pandemic and ultra-loose monetary policy, which led to a surge in inflation while the central banks keep the interest rates virtually zero or in the sub-zero territory.

As we reported recently, Bill Miller also reported owning 1.5 million shares of GBTC in its Miller Opportunity Trust, and Morgan Stanely disclosed that it owns a huge amount of GBTC shares as well.

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Author: AnTy

Fidelity Predicting $100 Million per Bitcoin by 2035

Boston-based investment giant Fidelity Group is injecting a heavy dose of hopium in the market with its latest “very special” webinar, where it took a deep dive into Bitcoin and its possible effects on the market.

Fidelity, which also has its own crypto arm, Fidelity Digital Assets that builds enterprise-grade bitcoin custody services for large institutions, isn’t new to the space as it first started mining Bitcoin (BTC) in 2014 and then Ether as well.

Now, the firm is putting out bullish reports on Bitcoin and sees the leading digital asset hitting $1 million before this decade is over and a whopping $100 million by 2035.

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This much hopium was difficult to digest for some as one Redditor noted, “Bitcoin is not gonna reach $100 million. That would give it a market cap of $2,100 trillion. The total wealth of the entire world is $418 trillion.”

Jurrien Timmer, Director of Global Macro Fidelity, hosted the event that shared several charts to help the audience understand Bitcoin.

One of the charts depicts Bitcoin’s adoption curve based on active addresses count and compares it with broadband subscriptions, Internet users, and mobile phone subscribers.

The webinar also discusses purchasing power of various assets, not covering Bitcoin, where stocks are the clear winner at $3.9 billion, followed by bonds at $19.9 billion, and cash at $326k compared to the inflation index. The purchasing power of $1 has the least in fiat at a mere $0.02. Even the safe haven, gold, isn’t doing much better at $94 when the inflation index has a reading of $65.

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Author: AnTy

Asset Manager and Investment Firms Abruptly Withdraw Futures-backed Ether ETF

Asset Manager and Investment Firms Abruptly Withdraw Futures-backed Ether ETF, Another Bitcoin ETF Heads to the SEC

Investment firms ProShares and VanEck have withdrawn their Ether Futures ETF that was filed only just this week.

On Wednesday, VanEck filed for an Ethereum-based ETF that would invest in Ether futures, Canada’s approved and listed Ether ETFs, private Ether funds, and ETPs with exposure to ETH. ProShares also filed for an Ether futures-backed ETF called ProShares Ether Strategy ETF on the same day.

And now before the week was even over, both the firms abruptly withdrew their applications which according to Eric Balchunas, Senior ETF Analyst for Bloomberg could be propelled by the SEC.

“As long we ONLY see the Ether ones ejected, I’d say that’s decent news for bitcoin ETF. Sort of like them saying, look, let’s baby step this, only bitcoin rn. Stop exciting the crypto trade pubs with all these filings,” said Balchunas.

$400 billion asset manager giant Neuberger Berman which filed to have its $164 million Commodity Strategy Fund to invest up to 5% in Bitcoin and Ether through futures, filed a fresh one this week to only include Bitcoin and to “replace” the original.

Earlier this month, SEC Chair Gary Gensler made remarks that suggested he would look favorably upon futures-based ETFs.

Currently, there are still a dozen physically-backed Bitcoin ETF applications filed with the SEC along with several based on Bitcoin Futures contracts.

Amidst this, a new crypto ETF has been filed with the SEC.

Investment management firm AdvisorShares that offers a range of themed ETFs submitted an application for AdvisorShares Managed Bitcoin ETF.

This ETF will not invest directly in Bitcoin but in exchange-traded futures contracts on bitcoin and collateral, as per the filing. Morgan Creek Capital will serve as the sub-advisor of the Fund.

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Author: AnTy

Another Futures-backed Bitcoin ETF Filed for “Significant Investor Protections”

This time it’s from Mike Novogratz’s Galaxy Digital under the Investment Company Act of 1940.

Mike Novogratz’s Galaxy Digital has filed for a Bitcoin futures exchange-traded fund (ETF) with the SEC.

The Fund will not invest directly in Bitcoin rather in the futures trading on the regulated platform CME.

This prospectus has been filed under the Investment Company Act of 1940, much like four other applications from VanEck, ProShares, Valkyrie, and Invesco, after SEC Chair Gary Gensler signaled openness to futures-based ETFs that provides “significant investor protections.”

The SEC, however, has yet to approve a single crypto ETF while several, in double digits, have been filed with the US regulator.

Unlike the physically-backed ETF that would track Bitcoin more closely, “Bitcoin futures ETFs, if approved by the SEC, could cost investors 5-10 percentage points in annual returns by rolling contracts from one month to the next, potentially limiting their appeal,” wrote ETF Analysts for Bloomberg, Eric Balchunas and James Seyffart in a note.

Galaxy also filed for a Bitcoin ETF in April and is the sub-advisor to the CI Galaxy Bitcoin ETF, which has $256 million in assets along with the CI Galaxy Ethereum ETF, which has almost $510 million in assets.

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Author: AnTy

Kryptoin Files for a Physically-backed Ethereum ETF

Investment advisor Krypton has filed a proposal with the US Securities and Exchange Commission (SEC) for an Ethereum exchange-traded fund (ETF) Trust. Back in May, VanEck filed for a similar ETH investment vehicle.

The Delaware-based firm said in its filing that the trust would not purchase or sell ETH directly, rather will do so in ‘in-kind’ transactions in blocks of 100,000 shares.

However, the Trust will be paying its Sponsor a unified management fee in “ETH only,” and the Sponsor will pay all of its operating expenses out of this fee, it added.

With this Trust, the firm’s investment objective is to provide exposure to the second-largest cryptocurrency with a market cap of $378.5 billion, at a price “reflective of the actual Ethereum market where investors can purchase and sell Ethereum.”

The trust provides direct exposure to ETH, and its shares will be valued on a daily basis. Investors who want to buy or sell shares of the Trust will do so through their brokers.

The company has chosen Gemini as its custodian, while a Delaware trust company will act as the Trustee, and the Bank of New York Mellon will serve as its administrator and the transfer agent.

Kryptoin’s application for a Bitcoin ETF submitted in October 2019 is already under SEC’s review.

More than 20 cryptocurrency-related ETFs have been filed so far, but a single one has yet to be approved. Krypton’s Ethereum ETF might not get approved any time soon either as SEC Chair Gary Gensler is more open to futures-backed ETF for greater investor protection, four of which have been filed in less than the last two weeks.

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Author: AnTy

Cathie Wood’s Ark Investment Bets More on Both Bitcoin and Ethereum

Cathie Wood’s Ark Investment Bets More on Both Bitcoin and Ethereum

Cathie Wood’s Ark Investment has reported an increase in the ownership of Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE) at the end of the second quarter.

In a new SEC filing, Ark reported 9,557,723 shares of GBTC, an increase of just over 10% from 8,675,881 GBTC shares reported at the end of March. In July, Ark bought just over 450k GBTC shares more, which would be reported after the end of Q3.

As for the ETHE shares, Ark reported owning 721,936 shares, which is a nearly 13% jump from 639,069 at the end of the first quarter.

Ark’s combined holdings of GBTC now represent a weightage of 0.65% across all of its funds, down from 0.9% at the end of March but up from 0.45% in June.

Grayscale Investments is the world’s largest digital asset manager in the world which; just this week hired ETF veteran David LaValle as its global head of ETF to convert its $26.6 billion Bitcoin fund into an exchange-traded fund (ETF).

US SEC, meanwhile, has yet to approve a single Bitcoin ETF while in an interview with CNBC this week, SEC Chair Gary Gensler said that he would anticipate that his staff will “review potentially some ETF filings around investing in bitcoin futures on the Chicago Mercantile Exchange under what we call in our craft the 1940 Act.”

The 1940 Investment Company Act regulates mutual funds and closed-end funds, which intends to provide significant investor protections.

Gensler shared a similar openness to a Bitcoin futures-backed ETF at the Aspen Security Forum on Tuesday, following which $364 billion Invesco and ProFunds which manages $60 billion, filed for ETFs that provide exposure to Bitcoin through futures.

“I’d be shocked if we don’t have a futures-based [ETF] product by year-end,” said Dave Nadig, chief investment officer and director of research of ETF Trends and ETF Database.

In the interview, Gensler also referenced GBTC, which, unlike an ETF, is a closed-end fund hence bearing a high premium or discount and not offering tax benefit either.

“We already have some funds in the crypto space. The largest has been around for about seven years, it’s not an ETF, but it’s been around; it’s about $20 billion in size,” Gensler said.

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Author: AnTy