Cathie Wood’s ARK Funds Buy More Coinbase (COIN) Shares, Now Owning Just Under 1.3 Million

Cathie Wood’s ARK Funds Buy More Coinbase (COIN) Shares, Now Owning Just Under 1.3 Million

Cathie Wood has rebalanced the company’s portfolio in favor of cryptocurrency stocks, yet again.

ARK funds bought 187,078 shares of Coinbase on Friday, adding to the 341,186 shares purchased on Thursday and 749,205 purchased on Wednesday. In total, Wood’s fund has 1,277,469 COIN shares worth almost $437 million at Friday’s closing price of $342.

The funds added to were the flagship ARK Innovation fund, the Next Generation Internet ETF, and the Fintech Innovation ETF.

Separately, it yet again sold 134,541 shares of electric car maker Tesla, valued at $99.5 million, from its flagship fund and Next Generation Internet ETF, but still, TSLA remains by far the firm’s biggest position by value on its major funds.

This big bet on Coinbase gives ARK more indirect exposure to cryptos on top of Tesla, which announced a $1.5 billion investment in Bitcoin this year and started accepting cryptos as payment for its cars.

Founded in 2014, Ark invests in companies involved with disrupting trends.

While up 6.6% from Thursday closing prices, COIN share prices it is still down 21% from its debut peak of almost $430, about 42% above the reference price of $250.

The uptrend in share prices came as the price of Bitcoin recovered after falling to $60,000, and Loop Capital Markets analyst Kenneth Hill advised clients to buy shares of the largest crypto exchange in the US. BTC -8.23% Bitcoin / USD BTCUSD $ 56,246.00
-$4,629.05-8.23%
Volume 97.65 b Change -$4,629.05 Open $56,246.00 Circulating 18.69 m Market Cap 1.05 t
9 h A New Record: Over 1 Million Traders Liquidated for a Whopping $10.1 Billion 10 h Cathie Wood’s ARK Funds Buy More Coinbase (COIN) Shares, Now Owning Just Under 1.3 Million 11 h BitMEX Co-Founder Arthur Hayes Puts Ether Moon Target Above $20,000

The latest analyst to call for buy highlighted “lots of runways” for the company ahead of a “takeoff.”

“Coinbase’s market valuation may seem excessive to some given the prospects of increased competition in digital wallets business, which should rapidly eat into Coinbase’s sweet profit margins,” Ipek Ozkardeskaya, senior analyst at Swissquote, told Bloomberg.

“On the other hand, the competition is not here yet, while large trading volumes continue boosting Coinbase’s revenues for the moment.”

Besides the funds, retail traders also jumped in on COIN. Day traders purchased a net $57 million of shares during the debut on the Nasdaq Stock Market, as per VandaTrack.

Retail accounted for 7% of the $822 million individuals spent on all US stocks and ETFs on the day, making Coinbase the fifth-most popular debut with day traders since 2017.

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Coinbase was also the most traded stock on Fidelity’s platform on the day, with over 148,000 shares changing hands, nearly 9x more than Tesla.

The exchange going public has been seen as a watershed moment for the crypto industry, taking it further into the mainstream.

Coinbase CEO Brian Armstrong called this direct listing a “shift in legitimacy” for the entire industry.

“Crypto has a shot at being a major force in the financial world.”

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Author: AnTy

Rothschild Increases GBTC Exposure by 26% and Buys Grayscale’s ETHE Shares in Q1

Rothschild Investment Increases GBTC Exposure by 26% and Buys Grayscale’s ETHE Shares in Q1

Rothschild Investment Corporation owns 38,346 shares of Grayscale Bitcoin Trust (GBTC), which revealed the firm in an SEC filing.

As per the latest filing, the firm has added 7,892 shares of GBTC in the first quarter of 2021.

Besides increasing its position on GBTC, Rothschild reported a new position in Grayscale ETH Trust. The firm bought 265,302 shares of ETHE.

This week, both Bitcoin (BTC) and Ethereum (ETH) made a new all-time high at $65,000 and $2,500.

Grayscale currently holds just over 654k BTC and 3.17 million Ether, and both GBTC and ETHE are trading at a discount.

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Author: AnTy

Digital Asset Manager Grayscale Says It Is ‘100% Committed To Converting GBTC Into An ETF’

On conversion of GBTC into an ETF, the holders of GBTC shares won’t need to take any action, and the management fee, currently at 2%, will be reduced. Meanwhile, the world’s first Bitcoin ETF (BTCC) holds 16,462 BTC without a single outflow since its debut.

Today, the world’s largest digital asset manager clarified its intentions for a bitcoin ETF: they are fully committed to converting its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF).

Launched in 2013, GBTC is currently a publicly-traded Bitcoin fund in the US and an SEC-reporting company.

Today, with $34 billion in AUM, GBTC only stands behind SPDR Gold Trust in terms of global commodity ETPs. With $2.6 billion in weekly volume, it stands in third place behind only GLD and iShares Silver Trust.

For several years now, Grayscale has been examining ETFs closely from both a commercial and regulatory perspective, said the fund in its official announcement on Monday.

Grayscale actually submitted an application for a Bitcoin ETF in 2016 and has been in conversation with the SEC since then. But they later withdrew the application because the regulatory environment for digital assets wasn’t advanced enough. So far, not a single Bitcoin ETF has been approved either.

This year, however, many applications for the same have been filed, and the market has high expectations from the SEC, especially with President Joe Biden’s nominee for the SEC chair Gary Gensler. The company said,

“While several firms have submitted Bitcoin ETF applications in the form of an S-1 or 19b-4 to the SEC, we are confident in our current positioning and engagement with the SEC.”

When GBTC converts to an ETF, the company says, the holders of GBTC shares won’t be needed to take any action. Also, the management fee, currently at 2%, will also get reduced accordingly.

Since late Feb., GBTC’s coveted premium has been running in the negative, which has been attributed to the rise of other products, including several Bitcoin ETFs trading in Canada.

The first-ever Bitcoin ETF from Purpose Investments (BTCC) currently holds 16,462 BTC, with $1.22 billion in AUM. Launched in mid-February, the Purpose Bitcoin ETF has seen only inflows, and not a single outflow has been recorded yet.

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Author: AnTy

MicroStrategy’s Massive Premium Implies Bitcoin Price of $122k, says Investment Firm Short on MSTR

The price of the MSTR shares have crashed 60% in less than a month since company executives started selling some stocks.

Bitcoin bull Michael Saylor, the co-founder, and chief executive officer of publicly-traded business intelligence company MicroStrategy, has been betting big on the leading digital currency.

The company bought another 205 BTC on Friday, bringing its total holdings to 91,065 BTC, representing 0.488% of Bitcoin’s circulating supply.

While the company continues to bet more and more on Bitcoin, its share prices are not feeling the same bullishness. MSTR share prices have crashed nearly 60% in less than one month from their all-time high of about $1,314 on Feb. 9.

On Friday, the MSTR shares fell as low as $537 before recovering to $620. Interestingly, MSTR is suffering from losses more than Bitcoin.

During the same period, the price of Bitcoin went from $46,500 to an ATH of $58,300, only to see a correction of 26% to almost $43k. Currently, BTC is consolidating in the $40k-$50k range.

The losses in the cryptocurrency market have actually been the result of the weakness in the stock market, which has been reacting to the rising bond yields. “The bond market selloff is showing some signs of stability, and that could mean the bitcoin pullback is nearing its end,” said Edward Moya, a senior market analyst at OANDA.

In related news, MicroStrategy President and CFO Phong Le sold 10,000 shares of MSTR on March 2nd, at an average price of $802.46 a share. Company CTO Timothy Edwin Lang sold 10,000 shares of MSTR stock on Feb 22nd.

Moreover, General Counsel Wei-ming Shao sold 5,000 MSTR shares on March 3rd. Director Jarrod M Patten and Stephen X Graham also sold 1,150 shares and 2,000 shares respectively on Feb. 24.

Distorted from fundamentals

The traditional media and funds have voiced their opinion against the company’s increasing Bitcoin bet. This week, WSJ called MicroStrategy’s Bitcoin buying spree “irresponsible,” based on Marc Lichtenfeld, chief income strategist at The Oxford Group’s view, who calls Bitcoin a “very speculative and volatile asset.” He said,

“I have never seen a company do this. This is beyond the excesses I have seen during the dot-com boom, and I think it makes them very, very vulnerable.”

According to Lichtenfeld, MSTR shares are “completely distorted from (its) business fundamentals” and simply linked to Bitcoin.

Another criticism came from investment management firm Bireme Capital which published its Q4 2020 Investor Letter, revealing that it is short on MicroStrategy, declaring $450 as its fair value.

The fund that had a net return of 47.1% for the year ending 2020 said MicroStrategy has a massive premium, its market cap increasing by $9 billion on a ~$3b windfall on its bitcoin purchases.

According to Bireme Capital’s calculations, MSTR’s current share price implies a bitcoin price of $122,000. The letter reads,

“MicroStrategy (MSTR) is the latest firm with shrinking revenues and negligible profits to pivot to the blockchain. Rather than attempt to start a cryptocurrency business, MSTR pivoted in the most straightforward way possible: it simply bought hundreds of millions of dollars worth of bitcoin overnight. In one light, this is an utter abdication of all the principles of corporate finance. Why not return the money to shareholders, who can decide for themselves whether or not they want to own bitcoin? But in another light, this was a brilliant end run around the SEC, who has been denying bitcoin ETF proposals le and right for years. MSTR went from being a mere stagnant software business to the de facto bitcoin ETF.”

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Author: AnTy

BTC Breaks Yet Another Level, k, as Elon Musk says, Bitcoin and Ethereum ‘Seem High’

Since making a similar remark on his electric car company, the price of TSLA shares has surged 400%. Tesla CEO is also busy mining his favorite cryptocurrency Dogecoin as a “fun family project.”

The market value of Bitcoin hit the milestone of $1 trillion on Friday as the price of the digital asset broke past many levels.

Today, we went even higher, past $57,000, aiming for the sweet round number of $60k now. As of writing, BTC/USD has been comfortably trading above $57k, with a market cap of $1.06 billion.

With Bitcoin continuing to roar higher, Tesla CEO Elon Musk threw some love at Bitcoin with yet again the picture of Bitcoin in his Twitter profile, but “Just for a day.”

Musk also took a jab at gold bug Peter Schiff, who thinks and talks about Bitcoin day and night, all the time, and this time as well saying gold is real money and better than both fiat and Bitcoin, referring to Musk calling “Bitcoin is almost as BS as fiat money.”

“An email saying you have gold is not the same as having gold. You might as well have crypto. Money is just data that allows us to avoid the inconvenience of barter. That data, like all data, is subject to latency & error. The system will evolve to that which minimizes both.”

Musk explained to Schiff, adding, “That said, BTC & ETH do seem high lol.”

Musk made a similar infamous comment regarding his electric car company back in May last year, “Tesla stock price is too high imo.” Since then, the price of TSLA shares has surged 400%.

Besides Bitcoin, the founder and CEO of SpaceX is also busy mining his favorite cryptocurrency, Dogecoin.

“I just set up some little Doge mining rigs with my kids. It was fun,” said Musk on Saturday. He also shared that he has been using Antminer L3+ rigs to mine the meme coin, which was bought off eBay.

“Not really economic, but it was a fun family project,” he added.

The Next Major Milestone

When it comes to Bitcoin, the leading digital currency is enjoying more than a 92% uptrend in 2021 so far.

Despite the latest round of gains, over 17% this week, the funding rates on Bitcoin perpetual contracts haven’t heated up, currently between 0.0158% on Deribit and 0.1457% on Huobi, as per Viewbase.

While the Perp-spot basis is flat, the basis of the future is sky high while implied volatility is falling and 25-day skew rising, noted trader and economist Alex Kruger adding, “leverage is very high, but inflows are gargantuan.”

Now that the first milestone for $1 trillion has been hit, the next major milestone ahead for Bitcoin is surpassing the market cap of gold which is about $10 trillion. This will put the price of Bitcoin around $500,000.

Qiao Wang of DeFi Alliance has a 90% conviction that it will happen in our lifetime but will this happen during this hype cycle, that’s to be seen.

Before that, going above $100k will make it the world’s largest asset, dethroning Apple. The hopium from Su Zhu, the CEO of Three Arrows Capital,

“This is not yet another cycle; this is the End of Cycles. The one where after BTC flippens gold, it doesn’t flip back. The one where web3 supersedes web2. Where culture is collected and accrued digitally instead of physically. Where life is lived mindfully rather than mindlessly.”

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Author: AnTy

4th Richest Billionaire, Bill Gates, Shares Opinions on Bitcoin; Throws Shade At the Asset’s Volatility

4th Richest Billionaire, Bill Gates, Shares Opinions on Bitcoin; Throws Shade At the Asset’s Volatility

Bill Gates has claimed that he doesn’t hold a specific view on Bitcoin as an investment. Microsoft has refrained from integrating Bitcoin in any way, although the company’s bosses aren’t ruling it out.

  • Bitcoin continues to draw reactions from some of the world’s most notable names, whether in tech, political, or finance.
  • In a recent interview, however, Microsoft founder and former chief executive Bill Gates explained that he is standing on the fence regarding the asset.

Sitting on the Fence

Bill Gates appeared on CNBC Squawk Box, where he spoke with host Andrew Ross Sorkin on several topics, including cryptocurrency. Sharing a summary of the interview, Sorkin explained that he had approached the billionaire about his opinions on Bitcoin and its climate change implications.

Like many billionaires, Gates has focused more on his philanthropic efforts in the past few years. After spending decades fighting malaria, the billionaire is now looking to improve environmental sustainability and eradicate the coronavirus. Considering that Bitcoin had always been criticized for the effect that mining has on the environment, Sorkin was curious to know Gates’ take on the leading cryptocurrency.

Sharing his views, Gates explained that he is pretty much sitting on the fence as far as Bitcoin is concerned. The billionaire explained that while he doesn’t own any Bitcoin, he doesn’t think less of the leading digital asset as well.

However, Gates went in a more nuanced direction, explaining that he recognized Bitcoin’s potential for digitizing asset management and speeding up transactions. Comparing that to the work of his Gates Foundation, the former CEO explained,

“I do think moving money into a more digital form and getting transaction costs down, that’s something the Gates Foundation does in developing countries. But there, we do it so that you can reverse the transactions and you have total visibility over who’s doing what.”

Gates added that he was also skeptical of Bitcoin’s volatility, explaining that he didn’t know how to predict the asset’s progression since it always seems susceptible to speculative mania.

Microsoft Watches as Tech Goes Crypto

While Gates appears to be minding his words, the billionaire has been a pretty sharp critic of cryptocurrencies in the past. In a Reddit “Ask Me Anything” session back in 2018, the billionaire criticized cryptocurrencies’ anonymous nature, explaining that it was generally not a good thing,

At the time, Gates explained that cryptocurrencies were being used to purchase illegal drugs and substances from nefarious individuals. Given that these drugs end up in the United States and have been feeding the country’s opioid crisis, he pinned some of the country’s drug-related deaths on cryptocurrencies.

Gates and Microsoft also appear to remain uncommitted to cryptocurrencies, despite the market’s incredible maturity over the past year.

Several tech companies already made the move to crypto in the past few months, including auto manufacturer Tesla and payment processors MasterCard and PayPal. This week, e-commerce behemoth Amazon also posted job openings for engineers as it looks to build a digital currency. Despite all these tech-crypt integrations, Microsoft has chosen to stay away from the crypto market.

Brad Smith, the Seattle-based tech giant’s president, told CNN this week that they have so far not had any discussions about making any crypto investments. While he left the door open for a possible pivot, he asserted that there are no plans for now.

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Author: Jimmy Aki

French Central Bank Settles $2.4 Million Simulated Monetary Shares in CBDC Pilot

French Central Bank Settles $2.4 Million Simulated Monetary Shares in CBDC Pilot

Banque de France has announced that it successfully settled €2 million (US$2.43 million) worth of simulated monetary shares on a private blockchain network as part of its CBDC pilot. The central bank, which has previously expressed openness to the idea of CBDCs, said that the pilot began on Dec 17 with the support of private players in the financial market. French Central Bank Settles $2.4 Million Simulated Monetary Shares in CBDC Pilot

According to the announcement, Banque de France collaborated with a U.K blockchain startup dubbed SETL, which provided the blockchain infrastructure and CBDC stablecoin. Other notable partners include DXC, OFI AM, GROUPAMA AM, CITIGROUP, CACEIS, and IZNES.

With the conversation on CBDCs starting on a high note this year, the Central Bank of France is among the global monetary authorities moving relatively fast in research and development. The bank had requested CBDC use case proposals as early as March 2020; they are now set to continue with more pilot experiments within the course of this year. It is also quite noteworthy that France is among the countries that are willing to partake in a digital Euro pilot, should one be rolled out soon.

Meanwhile, other jurisdictions, including the U.S, are now taking a keen interest in the potential of a CBDC based monetary ecosystem. Last week, the Fed reserve Chair Jerome Powel said in an interview that developing CBDCs is of ‘high priority’ in the fight against ‘bad private-sector money.’ China is also forging ahead with its CBDC pilot and recently rolled out the pioneer digital yuan ATMs in the region of Shenzen. These developments concur with the BIS findings last year, where it noted increased activity in CBDCs.

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Author: Edwin Munyui

Grayscale ETHE Price & Premium Crashes as Millions of Shares Flood the Market

Grayscale ETHE Price & Premium Crashes as Millions of Shares Flood the Market

Grayscale Ethereum Trust share price fell 48% and premium 94% despite the price of Ether surging past $1,000.

The shares of Grayscale’s Ethereum Product, ETHE, that had been trading at a premium of 270% on Dec. 22nd have now come down to just under 15%.

This premium has been coming down over the years; back in June, this premium was at about 950%, and before that in 2018, it was around 3,550% based on the demand for the product, price of the underlying asset, availability of other products, and the lock-up period of these shares.

The premium on ETHE has been on an incline since October, when crypto assets started rallying. But this week, the 6-months lock-up period for these shares ended, which pushed this premium down.

“A significant number of private placement investors have their lock-ups ending today and are receiving shares this week,” noted Joshua Frank, CEO at The TIE.

Grayscale’s ETH holdings are still at 2.94 million ETH, worth $2.94 billion, but with no new additions since Dec. 9.

Interestingly, the ETHE share price has fallen over 48% to Nov. 30 level of $12 while during the same period, the price of Ether rallied more than 75% to above $1,000.

The cause of this fall in ETHE price was a flood of new shares in the Grayscale Ethereum Trust. Besides the 47 million shares already outstanding, another 116 million were available to trade as their lock-up period ended.

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Because regulators haven’t approved an exchange-traded fund (ETF) for cryptocurrencies, Grayscale’s exchange-traded product works similar to a closed-end mutual fund. Here, a fixed number of shares are issued that can at times trade at premiums or discounts with a six-month lock-up period, but without a method to realign the prices.

“By failing to allow a crypto ETF in the U.S., the SEC has left retail investors exposed to significant risks via wide mispricing in less-efficient vehicles, while giving an advantage to accredited investors such as wealthy individuals, hedge funds and private-equity firms,” said James Seyffart, associate analyst for Bloomberg Intelligence.

The price of ETH actually went to the Jan. 2018 high of $1,000 on Coinbase on Sunday only to drop to $885 right after.

One trader expects ETHE investors to affect the price and send it crashing in the near future.

“What are boomers gonna do tomorrow when they see that ETH is up 70% and ETHE is down -50%? and then the next boomers and the next and the next? a reflexive cycle. down to the depths of namek.”

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Author: AnTy

Senator-Elect Urges Treasury Secretary to ‘Engage with Industry” & Against ‘Hasty’ Wallet Regulations

U.S. Senator-elect from Wyoming, Cynthia Lummis, shares her “deep” concerns with the Treasury Department considering “a hasty rule” to govern the self-hosted digital asset wallets and the Bank Secrecy Act.

Ever since Coinbase CEO Brian Armstrong first tweeted last month about Treasury Secretary Steven Mnuchin planning on imposing new restrictions on businesses that interact with these self-hosted wallets like exchanges, the market has been abuzz with uncertainty and some fear.

As we reported a week ago, several US lawmakers also sent a letter to the Treasury Secretary, expressing their concern about these rumored regulations, saying they will “crush a nascent industry” and “hinder American leadership.”

Now, Bitcoin-friendly and holder Cynthia Lummis has come out in support of the crypto industry, calling for the Treasury to not be in a rush in “America’s battle for competitiveness with China and Russia for the future of finance.” She urged the Treasury to “realize the transformative effects of digital assets.”Lummis added,

“Rather than prematurely adopting a rule on this complex topic, Treasury should immediately begin a transparent process to engage with Congress and industry, building a consensus to drive America forward.”

Lummis has spoken with Secretary Mnuchin and “strongly pressed him for a better path forward.” Congress needs to weigh the competing policy issues that are at stake, she said. “Let the sunshine in, Mr. Secretary,” Lummis added.

Digital assets like Bitcoin, whose hallmark feature is to conduct transactions without intermediaries, promote “financial inclusion and freedom.” And “a rule adopted at this juncture would be a solution in search of a problem,” said Lummis.

Last week, the Financial Crimes Enforcement Network (FinCEN) also opened positions for two “Strategic Policy Officers” that will assist in providing advice and assist in developing policy responses to risks, threats, and challenges posed by digital assets.

The Block illustrated that these regulations could involve requiring crypto companies, as early as Friday, to report on the transactions larger than $10k to or from a self-hosted crypto wallet in a day. Market expert Matt Odell said,

“I already assumed they did this tbh. The concerns Armstrong and Davidson voiced seemed to expect much worse. Maybe the public concern helped. Very bullish if true.”

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Author: AnTy

Zurich Based Sygnum Becomes First Bank to Tokenize its Shares on Ethereum

Sygnum, a Zurich-based digital currency bank, has tokenized its shares according to a recent announcement on the company’s blog post. The bank touts itself as the first of its kind to tokenize shares on a distributed ledger, hence forging a path for the future of public offerings. These shares have been tokenized on the Ethereum blockchain via Sygnum’s tokenization platform dubbed ‘Desygnate.’

This means that Sygnum’s shares can now be accounted for via a blockchain ecosystem, including the associated legal rights and obligations. The blog reads,

“Put simply; this means that digital representations of Sygnum shares, together with associated legal rights and obligations, have been created and are immutably accounted for on a distributed ledger.”

With tokenization in the picture, Sygnum’s share registry will be updated automatically any time there is a capital injection transfer. According to Sygnum, this approach minimizes the counter-party risk attributed to settlements, given the bank will be using distributed ledger tech to manage both primary and secondary market transactions.

This initiative will also eliminate the administrative burden of written share transfer requests embedded in the current market structures. Sygnum Bank co-founder, Mathias Imbach, commented on the underlying value proposition in share tokenization,

“This is an important milestone towards fulfilling our mission of creating more direct and efficient access to ownership and value. This includes new engagement models with our clients and partners, and ultimately providing liquidity for our trusted shareholders.”

In the future, Sygnum plans to list its shares in Switzerland and Singapore via SIX Digital exchange and SBI digital Asset Holdings for the latter market. As reported by BEG, SIX recently completed a CBDC pilot test in collaboration with the Bank of International Settlements (BIS) and the Swiss National Bank (SNB).

It comes as no surprise that Sygnum is already eyeing a public offering in this marketplace. SIX Digital Exchange Head, Tim Grant, said that they are looking forward to the partnership,

“We are excited to partner with Sygnum on this journey and hope to facilitate a successful dual listing across Switzerland and Singapore in the future.”

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Author: Edwin Munyui