Abracadabra.Money’s (MIM) Explosive Growth Sends SPELL to New Highs, Over 8.7 Bln Tokens to be Burned

Much like the MIM’s 38x growth in TVL in the last three months, the SPELL token is also up more than 100x.

Lending protocol Abracadabra money has surpassed $4 billion in total value locked (TVL).

According to DeFi Llama, the $4.15 billion worth of assets amassed by the protocol is spread across different blockchains, including Ethereum (ETH), Arbitrum, Avalanche (AVAX), and Fantom (FTM).

Just two months back, there was only $270 million worth of assets locked on the platform that allows users to produce magic internet money (MIM), a stablecoin that can be swapped for any other traditional stablecoin.

Over the month of October, Abracadabra grew 23% of the original decentralized finance (DeFi) project MakerDao (MKR), which currently has $17.53 bln in TVL.

MIM, the stablecoin, has surpassed $2.36 billion in market cap and is now inching closer to TerraUSD’s (UST) $2.8 bln.

The lending protocol that allows users to borrow a stablecoin (MIM) with interest-bearing assets relies on arbitrage to maintain its peg. And despite a 3x in its monetary supply over just one month, MIM has been able to relatively maintain its peg ever since its launch.

The native token of the protocol, SPELL, thanks to the protocol’s growth, is constantly hitting new all-time highs since the last two months. Today, the $2.27 billion market cap coin rallied to $0.3125 and is up 10,222.2% since early August.

SPELL holders get to stake their tokens to receive 75% of protocol fees. Currently, there are over 7K SPELL holders versus 10K SPELL holders, with this ratio increasing, meaning a higher proportion of SPELL holders are now staking.

This growth has been driven by the higher weekly protocol fees, which recently totaled $1.7 million.

“No Brainer”

On Monday, a total of 8,711,260,380 SPELL tokens will also be burned, announced the team on Twitter.

The new weekly benchmark, the number of SPELL tokens to be allocated to farms every week, will now be moved from the current 1.45 bln SPELL per week to 1.16 bln SPELL.

Earlier last month, the team proposed implementing a 20% reduction across all farms, starting from November 1st.

“Given the depth of the protocol reserve, we do not feel the need to use these tokens for any particular marketing effort, team reward, or other actions,” said the team. As such, the emissions that were intended to be used are now burned.

As such, for this week, the protocol will release only 624,188,139 SPELL tokens across all pools.

Additionally, last week, the proposal to deploy Cauldrons and Degenbox on Binance Smart Chain (BSC) was also passed with 99.88% votes.

With BSC currently seeing 1.6 mln daily active addresses, $20 bln of TVL being on-chain, and Binance announcing a $1 billion fund to increase BSC adoption, the multi-chain project Abracadabra.money sees this as a “no brainer” opportunity to deploy on BSC.

“With Abracadabra moving to BSC, we could capture more TVL, new assets, and completely new users,” it said.

Read Original/a>
Author: AnTy

Zoomer Meme Coin Outperforms the Boomer Meme Coin, Will This Mark the Top of the Cycle Again?

In the last 11 months, the price of Shiba Inu has risen by a whopping 138731974.5% which means if you had invested just $1,000 at the time, you would have been a billionaire. And a mere $100 would have helped you become a multi-millionaire.

There are even some instances where people have become millionaires by investing a small amount of money in dog coins early on.

But the fact is unless you have forgotten that you had invested in the meme coins or had the conviction to hold it throughout all these eye-popping gains and heart wrenching crashes of as much as 80% to 95%, you wouldn’t have managed to completely change your fortune much like many people who sold their coins after a few multiples.

Interestingly, some did manage to do so who gained the limelight this week as the price of SHIB rallied.

During the latest rally, the price of SHIB hit a new all-time high at $0.00008616. As of writing, SHIB is trading at $0.00007680.

The DOGE killer has actually finally flipped Dogecoin to become the 9th largest cryptocurrency. With a market cap of $43 billion, SHIB sits right above DOGE, whose market is $38.9 billion.

“The Old Guard has fallen,” stated well-known trader Hsaka pointing to Dogecoin becoming a boomer meme coin that has been outperformed by the zoomer meme coin.

Trading at $0.3, DOGE has a circulating supply of 131,875,387,607 DOGE and is currently the 2nd largest trading crypto asset on Binance and 5th largest on Coinbase.

Meanwhile, there are currently 549,153,115,436,361 Shiba Inu circulating in the market.

SHIB/USDT currently accounts for more than 25% of Binance’s volume at $13.27 billion compared to DOEG/USDT’s $3.9 billion, Bitcoin/USDT’s $3 bln, and Ether/USDT’s $2.18 billion, according to CoinGecko.

On Coinbase, SHIB accounts for more than 40% of its volume at over $5 billion versus DOGE’s mere $720 million.

Now that SHIB has pumped so much, traders have taken to short the dog coin in anticipation of a dump as people start to take profit and turn their paper profits into real money, and Robinhood is not looking to add more coins unless regulatory clarity comes. But it remains to be seen if those going short on SHIB will be profitable to get liquidated.

Some people are also concerned that, just like in May, SHIB’s pumping would send the market crashing. But not everyone agrees; as a matter of fact, this money could see itself moving to other coins as well.

“History always pinballs,” said Su Zhu, the CEO of Three Arrows Capital, who doesn’t see meme coins pumping marking the end of the cycle. “Our understanding of history changes history itself.”

“Dogcoins are net great for crypto,” added Zhu.

Read Original/a>
Author: AnTy

Circle’s Stablecoin USDC Launches on Hedera Hashgraph’s Network

Fulfilling its promise to expand to more blockchain protocols in the coming months, USDT close rival USDC has recently launched on the Hedera network.

The announcement by popular stablecoin issuer Circle on Monday, October 18, makes the asset the first stablecoin to launch on the network.

According to the press statement, USDC users can now deposit, withdraw, and transfer USDC based on the Hedera network within their Circle accounts. Users can tap Hedera for various USDC payments and settlements.

Cryptocurrency enthusiasts, with the launch of the USDC on the Hedera network, will have access to opportunities tied to this stablecoin, Jeremy Allaire, CEO and co-founder of Circle, said while commenting on the launch adding that,

“With Hedera, enterprises and financial institutions can access deep liquidity across countries and platforms, making USDC in Hedera an optimal asset for cross-border transactions and trades of all kinds.’’

Circle further said its integration with Hedera (HBAR) is in line with the main goals and objectives of the HBAR Foundation — a body created to support up-and-coming decentralized finance (DeFi) and non-fungible tokens (NFTs) projects that will be launched on the Hedera Hashgraph.

Giving its reasons for choosing Hedera as the supported network for USDC, Circle said the decision was due to the network’s interesting features, such as the ability to process a minimum of 10,000 transactions per second and the provision of real-time settlement, lower fees, and low bandwidth consumption.

Another top reason has been Hedera’s pivot towards a carbon-neutral network. The Byzantine Fault Tolerant (BFT) consensus protocol has since signed a partnership with Terapass to purchase carbon offsets quarterly thereby reducing the environmental impact of its operations.

This carbon-neutral status has seen the Hedera Hashgraph protocol attract several platforms with over 410,000 accounts currently running and over $1.6 billion worth of transactions processed on the blockchain platform.

The Rise of Stablecoins

Recently, there has been increased interest in stablecoins, mainly due to their ability to cushion against the effects of volatility. Stablecoins are a kind of digital assets whose values are tied to fiat currencies like the U.S. Dollar and Euro. USDC is present in over 85 countries, and it’s witnessing widespread adoption. Stablecoins are also being used to facilitate international trades.

In July, Circle partnered with MasterCard to enable individuals and businesses to utilize USD Coin (USDC) for transactions. Circle and Mastercard plan to use USDC to facilitate crypto-to-fiat conversions in a pilot program as part of the partnership.

“The engagement between Circle and Mastercard reinforces how USDC is growing its role in payments and commerce on the internet while building a vital bridge between digital currency payment systems and large, established payment networks,” Circle co-founder and CEO Jeremy Allaire had said at the time.

USDC Gradually Becoming a Trailblazer

Circle has made significant moves after launching its token USDC in 2018 in a bid to make its version of the digital dollar the standard means of value transfer across the internet.

Besides Hedera, USDC is now supported across several blockchains, including Ethereum, Algorand, Solana, Stellar, and TRON. There are also plans for the digital asset to launch on networks like Celo, Tezos, Polkadot, Flow, Kava, Nervos, and Stacks in the future.

Read Original/a>
Author: Jimmy Aki

Assets in Crypto ETFs Triple in Just Six Months, Cathie Wood’s Ark to Start Investing in Canadian Bitcoin ETFs

Assets in Crypto ETFs Triple in Just Six Months, Cathie Wood’s Ark to Start Investing in Canadian Bitcoin ETFs

Bitcoin bull Cathie Wood’s Ark Investment Management is allowing one of its funds to invest in Canadian Bitcoin ETFs.

For this, the firm tweaked the prospectus for its $5.7 billion ARK Next Generation Internet ETF (ARKW).

This modification was made in a late-Friday filing that included that it may invest in “other pooled investment vehicles that invest in bitcoin (CRYPTO: BTC), such as exchange-traded funds that are domiciled and listed for trading in Canada (Canadian Bitcoin ETFs).”

A similar move was made by the $1.3 billion Amplify Transformational Data Sharing ETF (BLOK), a blockchain-focused product that showed a tiny stake in three Canadian Bitcoin ETFs.

Ark investment isn’t new to Bitcoin exposure, however, as ARKW has 5.5% of its fund invested in the Grayscale Bitcoin Trust, the second-largest holding in the fund.

Ark Invest owns more than 8.5 million shares of GBTC, which is currently trading at a discount of 14.58%.

Interestingly, the shares of this $30 billion vehicle have been trading at a discount ever since the first Canadian Bitcoin ETF, Purpose Bitcoin ETF (BTCC), was launched in February. GBTC is now aiming to convert its closed-ended trust into an ETF and has been making a lot of hires for the same.

The US ETF market is $6.8 trillion, more than 90% of which is controlled by BlackRock, State Street, Vanguard, Charles Schwab, Fidelity Investments, Invesco, and investors and issuers are eagerly awaiting the approval of a cryptocurrency ETF to invest in.

But the US Securities and Exchange Commission (SEC) has yet to approve a single Bitcoin ETF though the first such application was filed by Winklevoss twins in 2013. Ark itself has filed for a Bitcoin ETF by teaming up with Switzerland-based 21Shares AG.

SEC Chair Gary Gensler recently did signal openness to a futures-backed ETF.

Canada, meanwhile, has approved and listed several ETFs for both Bitcoin and Ether on Toronto Stock Exchange (TSX).

Total assets in the cryptocurrency ETFs globally have actually tripled to $9 bln as of June from $3 bln at the end of last year, according to data from ETFGI, a consultancy. The sums committed to leveraged and inverse ETFs, which amplifies gains, meanwhile has risen to a record $109 bln from $79 bln at the end of 2019.

Read Original/a>
Author: AnTy

Binance.US CEO Brian Brooks Steps Down Just After Three Months Due to “Differences over Strategic Direction”

Binance.US CEO Brian Brooks Steps Down Just After Three Months Due to “Differences over Strategic Direction”

Binance.US CEO Brian Brooks is already stepping down from his position just three months after taking up the role.

Brooks announced his resignation on Friday in a tweet saying, “Despite differences over strategic direction, I wish my former colleagues much success. Exciting new things to come!”

His resignation came amidst a series of compliance setbacks and regulatory scrutiny from all over the globe tied to the cryptocurrency exchange Binance. Binance CEO Changpeng Zhao said in a statement,

“I remain confident in Binance.US’s business and its commitment to serve its customers and innovate. As one of the largest cryptocurrency exchanges in the United States, Binance.US is poised to continue to grow and empower the future of finance. This transition will not impact Binance.US customers in any way as the company will continue to deliver best-in-class products and services.”

In a separate tweet, CZ wished Brooks the “very best in his future endeavors,” saying his work at its US-based entity has been “invaluable.”

Brooks was the acting Comptroller of the Currency during the Trump administration from May 2020 to January 2021, where he led efforts to provide regulatory clarity for stablecoin and digital asset custody. Brooks joined Binance.US in May, and before joining the regulator, he was the Chief Legal Officer at the competing exchange Coinbase.

“This reminds me of so many other stories of foreigners taking executive-level positions at Chinese companies. Just as an empirical fact, it frequently ends in disaster,” said Matthew Graham, CEO at VC Sino Global Capital, last month regarding the disappearance of Catherine Coley from the social media after Brooks replaced her as the CEO of Binance.US.

“Don’t be surprised if/when the Brian Brooks era ends in similar fashion,” Graham had said at the time.

Amidst this, the latest round of speculation in the market around Binance has been that it is “planning the ultimate rug pull” based on the fact that someone other than CZ is the beneficial owner of Binance, as narrated by a former Binance user who lost his funds on the platform during the May 19 crash when about $10 billion worth liquidation happened during which Binance went down.

But it seems more to do with how things work in China than the nefarious plan in action as claimed by Binance victim Francis Kim, whose Twitter bio says he’s here to expose the truth about the exchange.

Kim’s tweet about Binance “fundamentally misunderstands how business is done in China, where it’s quite common to have assets under other people’s names,” Graham said of the tweet.

Read Original/a>
Author: AnTy

ETFs Are Having the Best Year Ever, While SEC Refuses to Give A Bitcoin ETF The Green Light

ETFs pulled in $488.5 billion in less than 7 months of 2021 and are on track to break the $497 billion full-year record set in 2020. Meanwhile, in crypto, since 2013, not a single one has been approved by the US SEC, which says it wants to protect the investors when ETFs are what will ensure low fees, tax advantages, and relative ease of trading for them. 

  • US money managers are stampeding into exchange-traded funds, with ETFs having the best first half of inflows on record.

According to Bloomberg, ETFs are on the brink of attracting the most money in just seven months than in any calendar year on record. Towards the end of last week, at $488.5 billion, they were on track to break the $497 billion full-year record set in 2020.

As investors migrate to the cheaper, easier-to-trade, and more tax-efficient vehicle, almost all of the top 25 largest asset managers in the US either already offer an ETF or plan to do so.

ETF - The Flow Show

ETFs are vehicles that pool investor cash and trade all day like stocks but with an intermediary that helps investors defer tax liabilities. Ben Johnson, Morningstar’s global director of ETF research, said,

“The stress period we lived through in the first quarter of 2020 further validated not just the ETF structure but the ETF ecosystem in its entirety.”

In this ETF mania, Vanguard leads the ecosystem with $239 billion in its Vanguard S&P 500 ETF. Together BlackRock, Vanguard, and State Street Corp. account for roughly 80% of the market.

Due to ETFs popularity, mutual funds have also converted into an ETF with quant giant Dimensional Fund Advisors leading in this.

“It will be paramount that every existing asset manager has a viable ETF strategy moving forward,” said Nate Geraci, president of the ETF Store, an advisory firm.

Big Three ETFs

Besides the S&P 500 repeatedly hitting new all-time highs this year, star manager Cathie Wood is driving this growth. Wood’s Ark Investment Management has pulled in $15.3 billion this year.

It is expected that the growth that started in the first half of the year will continue in the second half of the year. ETFs have collectively lost money in only two months in the past three years, and even then, the outflows were relatively middle.

“ETFs are an easy button of sorts that you can hit to get exposure to any number of different segments of the market,” drawing from a broader investor base, said Morningstar’s Johnson.

8 Years and Counting

While ETFs are having a wild year in the traditional world, the Bitcoin market hasn’t had one yet in the US after eight years. Meanwhile, in other parts of the world, Canada and Brazil, several Bitcoin and Ether ETFs have been approved and traded on exchanges.

Recently, the U.S. Securities and Exchange Commission (SEC) postponed its decision on Wisdom Tree’s Bitcoin ETF and said that it is looking for comments from the public on the product, which isn’t’ the first time.

Several Bitcoin ETFs and a couple of Ether ETFs have been filed with the SEC, but the regulator has yet to give any positive signs despite having the new Chair Gary Gensler. He told Congress this spring,

“The exchange that trades crypto tokens has not yet been registered as an exchange with the SEC.”

“Overall, this has significantly reduced investor protection compared to traditional securities markets and has increased the chances of fraud and tampering accordingly.”

The world’s largest digital asset manager, Grayscale, is also looking to turn its flagship product GBTC into an ETF, towards which CEO Michael Sonnenshein reiterated that they are 100% committed. Last week, they said Grayscale is working with BNY Mellon to achieve this.

According to Sonnenshein, the SEC is looking for a couple of different maturation points in the underlying market, which he believes are the “final stages” that regulators need to approve such a product and give investors the protections they are looking for.

For the US, to approve a Bitcoin ETF “is a matter of when not if,” he said on Monday.

While the SEC says it wants to protect the investors, especially the retail, ETFs will ensure low fees, tax advantages, and relative ease of trading for them.

The adoption of ETFs was what upended the way bonds, stocks, and commodities are traded. Giving Bitcoin ETFs greenlight will also allow anyone with a securities account to invest in crypto.

Read Original/a>
Author: AnTy

“Ethereum to Scale by 100X in the Coming Months,” Says Vitalik on Optimism Rollups Launch

“Ethereum to Scale by 100X in the Coming Months,” Says Vitalik on Optimism Rollups Launch

Ethereum co-founder Vitalik Buterin believes the blockchain is closing in on solving its scalability problem, predicting the Optimistic rollup launch in the coming month. The Optimism rollup is a layer two solution aiming to scale the blockchain by a factor of 100, which will solve the medium-term high gas fees as the community awaits the launch of Ethereum 2.0.

Speaking in a podcast aired on Tuesday, Buterin stated Ethereum 2.0 developers are working to integrate these layer two solutions, adding that the Optimism rollup will solve Ethereum’s scalability problems before sharding is introduced on ETH 2.0. He said,

“Rollups are coming very soon. We’re fully confident that by the time that we need any more scaling of that, sharding will have already been ready for a long time by then.”

Rollups are off-chain solutions that compute and store transactional data before bundling up the information and recording it on a blockchain. This reduces the data load on Ethereum, allowing transactions to be processed faster and lowers the fee paid per transaction.

The growth of decentralized finance (DeFi), yield farming, and recently non-fungible tokens (NFT) markets have seen the transaction fees on Ethereum skyrocket to all-time highs. The Optimistic rollup solution’s launch aims to reduce the high gas fees and mold ETH into a user-friendly and cheap form of currency.

According to Buterin, Optimism rollups will increase the blockchain’s scalability by 100 as the chain awaits the launch of sharding – once ETH 2.0 is fully launched.

“The thing to remember is that if you have rollups, but you do not have sharding, you still have 100X factor scaling, right? You still have the ability for the blockchain to go up to somewhere between 1,000 and 4,000 transactions a second, depending on how complex these transactions are.”

Optimism rollups only account for one of the layer two solutions currently in development – adding to Arbitrum’s scaling solutions and ZK rollups. The rollups have been in testing for the past year, and some projects have already integrated them, including Loopring and zkSync. Vitalik predicts Optimism rollups will be fully launched in the “coming months” given the progress already shown by the rollup.

Optimism rollups are expected to be embraced by some of the leading DeFi projects, including Uniswap, which recently launched its upgrade, Sushiswap, AAVE, and derivatives platform, Synthetix. MakerDAO, a borrowing and lending DeFi platform, also introduced its DAI stablecoin to Optimism rollups.

Despite increasing Ethereum’s scalability, Optimism still faces some challenges, in that transferring tokens from the main blockchain to L2 is easy. Still, the reverse process takes up to a week to complete the transaction. This is to allow for potential fraud proofs.

In a forum chat, the MakerDAO community looks to reduce the “reverse process” transaction time on DAI tokens on the L2 solution. The post reads,

“Introducing the Optimism Dai Bridge with Fast Withdrawals – a bridge which will allow locking up L1 DAI to mint L2 oDAI (Optimism-based DAI) as well as allowing oDAI to be burned in exchange for near-instant access to L1 DAI.”

The Optimism Dai Bridge with Fast withdrawals will be launched in the latter half of 2021, the post confirmed.

Read Original/a>
Author: Lujan Odera

Robinhood Adds 6 Million New Crypto Users in First 2 Months; 2021 Starting With A Bang

Robinhood Adds 6 Million New Crypto Users in First 2 Months; 2021 Starting With A Bang

“The numbers are clear: 2021 has started with a crypto bang,” says the online brokerage.

Zero commission online brokerage Robinhood revealed that 6 million new users signed up for its cryptocurrency services in the first two months of this year.

The company launched its crypto services three years ago. Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Ethereum (ETH), Ethereum Classic (ETC), and Litecoin (LTC) are the only available cryptos on the platform.

Robinhood Crypto, which is licensed to engage in virtual currency business activity by the New York State Department of Financial Services, recorded high trading volume amidst a sharp rise in the prices of cryptos.

These numbers just show that much like crypto exchanges which have been registering a sustaining number of new peaks in new user sign-ups and volume, the crypto-mania has spread to everyone.

As we reported, in January, the global crypto users broke the milestone of 100 million, and this week, Square also revealed in its earnings report that its Cash App recorded 1 million new Bitcoin users in January 2021, adding to its 3 million throughout 2020.

As for Robinhood’s crypto division, they averaged about 200,000 new customers trading on its platform per month in 2020, the company said in a blog post. “The numbers are clear: 2021 has started with a crypto bang,” it said.

Robinhood crypto traders by year

Source: Robinhood

The average transaction size of crypto investors on the platform is around $500.

Robinhood, which also offers stock and options trading, currently allows its customers to only buy, sell, and hold cryptos and recently said it also plans to introduce the ability to deposit and withdraw cryptos to other wallets.

The company is expected to go public this year, with a value of over $20 billion, nowhere near the more than $100 billion valuation crypto exchange Coinbase got. The largest crypto exchange in the US, Coinbase, filed to go public with Nasdaq through a direct listing on Thursday.

Read Original/a>
Author: AnTy

Privacy Browser Brave Unknowingly Leaked Users’ Dark Web Activities: Researchers

Privacy-oriented web browser Brave has been leaking users’ web data for months unknowingly through a bug in its code. The bug named Support CNAME, which was incorporated into its Tor mode offering had been sending user data to local network providers without the company knowing.

Leaked DNS Requests

Tor mode on Brave Browser allows users to access hidden services better known as .onion dark web domains while using Brave’s private browsing windows. The feature, which was added in 2018, was created to ensure increased privacy for Brave users while surfing the web.

But in recent research revealed on Friday for the Brave stable build, a Reddit user said Brave’s Tor mode was re-routing web queries for .onion domains to public internet domain name system (DNS) resolvers rather than designated Tor nodes.

Although the claims were initially refuted, other security experts confirmed the issue and asked the privacy browser to do something about it.

A DNS leak occurs when a request that should be sent through a private network arrives at a DNS server unprotected. The DNS server is likely your local network provider who will likely collect, evaluate and possibly sell the data. A DNS leak also leaves a trail that can be traced by government officials, hackers, or anyone with top-level security clearance.

To address this sort of issue, the Tor network was created in 2002. This network directs your web traffic through myriads of nodes, hiding the location you are searching from and protecting against network surveillance and traffic analysis.

Brave Browser has subsequently addressed the issue and released a formal fix for the erring bug the same day the data leak was discovered. The company said it first found the CNAME bug in its Brave Nightly build which developers mainly use. The issue was fixed on Feb. 4, and it proceeded to look into the stable build. It delayed the fix because it looked for other likely bugs that may result from the data leak.

The company has advised users genuinely concerned about their privacy to use the Tor network instead.

Brave’s User Community Grows By 130%

But despite what might seem like a bad deal for the ads blocking browser, Brave browser has enjoyed some measure of success in 2021. In a published report, the privacy portal said it has seen its user community increase from 11.6 million to 25.4 million as of Feb. 2 reflecting a 130% increase.

The Brave browser is sometimes compared to the famous Tor network due to its privacy-centric business model. Its Tor mode deployment in 2018 has seen it become a household name in a few short years.

The Chromium-based browser also rewards its users a basic attention token (BAT) for accepting to view ads. These digital tokens can then be exchanged for other crypto-assets or given to content creators through its in-built wallet.

With the idea of privacy becoming a much-discussed topic in the last decade, Brave may continue to find itself in business for a long time to come.

Read Original/a>
Author: Jimmy Aki

“Outrageous Demand” for Bitcoin & Crypto from Retirement IRAs

  • Grayscale continues to add Bitcoin to its stash, currently holding 570,860 BTC.
  • In the past six months, GBTC’s holdings have grown by 56% to represent more than 3% of Bitcoin’s circulating supply.

As we reported, Michael Sonnenshein, Managing Director of the Grayscale Investments, said the most extensive digital assets manager had seen inflows that “are now probably up 6x what they were last year.” Sonnenshein said in an interview on Thursday,

“It’s some of the world’s largest investors and the allocations that they’re making are bigger than we’ve ever seen before and their time horizon for this is generally something over the medium to longer-term.”

This growing demand can be further seen in the premium that people pay to get exposure to digital assets through Grayscale.

GBTC shares are currently trading at a premium of more than 30%. This premium has been slowly grinding up since early October, when it was just around 6%. However, we are nowhere near the 132% premium people paid in March 2017. On-chain analyst Willy Woo said,

“Wow 33% GBTC premium, that’s outrageous demand for Bitcoin via retirement IRAs.”

“If I was a Euro Pacific shareholder I’d be wondering why the company is not getting in on that obvious growth business. Like Kodak revolutionized photos until one day it didn’t run towards digital.”

However, it’s not just Bitcoin that Grayscale users are after. The premium on other products is even higher than GBTC except for its BCH product, which is actually on a discount (-13%).

ETHE is trading at 170% premium, ETCG 43%, and LTCN at the most significant 2,259% premium. Trader and economist Alex Kruger said,

“When crypto heats up, premiums to Net Asset Value (NAV) for Grayscale products skyrocket.”

“Driven by dumb money buying Grayscale products from a brokerage.”

Grayscale is currently holding 2.94 million ETH, 948.34k LTC, 12.29 million ETC, 225k BCH, 35.65 million XRP, 18.94 million XLM, 192.7k ZEC, and 450.11k ZEN.

In an attempt to protect the average folk by restricting access to asset purchases, SEC has ended up creating “a racket where the many subsidize the few,” said Alex Kruger. Because primary issuance is for accredited investors, an average person has to buy in the secondary market to pay a premium.

The institutions that are buying GBTC do so directly from Grayscale at a 2% fee with a 6-month lock-up but gain a premium twice a year.

The crypto market has repeatedly pointed out that more competition and ETF getting approval from the US Securities and Exchange Commission will push these premiums down.

Read Original/a>
Author: AnTy