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Bitcoin ETF storm has arrived🌪
Six major Bitcoin ETF applications in just 5 days - institutions are taking a fresh look at crypto and they’re flooding in. Jerome Powell bats for crypto. Maker DAO holds $1.2B US Treasury bonds.
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BTC is at $30K.
See them smiles across the cryptosphere.
The storm started brewing with 'The Great Accumulation' of Bitcoin, as coined by Cameron Winklevoss, co-founder of crypto exchange Gemini. He believes that a race has begun between institutions and retail investors to accumulate Bitcoin.
It all started with a Black rock.
Now we have - 6 major Bitcoin ETF applications in just 5 days:
BlackRock: The Wall Street titan enters the crypto arena with a Bitcoin ETF application: Filed a proposal for a Bitcoin ETF with Coinbase as the crypto keeper.
Invesco: This trillion-dollar asset manager revives their Bitcoin ETF quest, indicating optimism about changing regulatory winds.
WisdomTree: Filed an application for a spot Bitcoin ETF on the Cboe BZX Exchange. An innovative Bitcoin ETF application featuring "in-kind" transactions has been placed on the SEC's desk.
Bitwise Asset Management: After a rejection setback in 2022, Bitwise refiled for a Bitcoin spot ETF. They've done their homework but will it earn them an SEC gold star? Tick-tock: SEC decision deadline still a secret.
Fidelity: Speculations hint at a potentially groundbreaking move in crypto - could they buyout Grayscale or file their own Bitcoin ETFSince 2014, Fidelity's had crypto on the brain, launching Fidelity Digital Assets in 2018. Their crypto conquest: Fidelity Crypto and 401(k) digital asset investing.
Valkyrie: Files for a Bitcoin spot ETF with the SEC. Also Submitted an application for a BTC futures ETF back in May.
Ark Invest, 21Shares, and other potential issuers like VanEck, Valkyrie, Global X are vying for a spot in the spot bitcoin ETF market.
Yes, the floodgates for buying Bitcoin are "closing fast".
What happens to Bitcoin with all this sudden love
Bitcoin is smashing through the $30,000 barrier for the first time since April. Gained an impressive 11.8% over the past month, with a 6.5% surge in the past 24 hours. 📈
Amidst all the excitement, Bitcoin's network activity is buzzing, with a week-long surge in transactions. On June 14 alone, we witnessed a whopping 385,000 transactions, followed by a stunning 13% jump to 435,000 on June 20.
Why the love?
Well, Where are the banks? Now, some theories suggest that financial institutions simply love making money. And offering a spot Bitcoin ETF is a surefire way to do just that.
But hey, let's not forget how far Bitcoin has come. It went from zero to nearly a trillion-dollar market cap with minimal institutional participation. Now, as Wall Street and BlackRock make their grand entrance, Bitcoin is set to become highly illiquid. Those retail investors don't want to sell to the big guys, do they?
Wisdom from Wisdomtree
“The bitcoin market has matured such that it is operating at a level of efficiency and scale similar in material respects to established global equity, fixed income and commodity markets.”
The timing couldn't be better
The Federal Reserve chair Jerome Powell acknowledges the importance of payment stablecoins and suggests the central bank should have a say in their issuance.
“We do see payment stablecoins as money. We believe that it would be appropriate to have a quite robust federal role in what happens in stablecoins going forward, and leaving us with a weak role and allowing a lot of private money creation at the state level would be a mistake.”
Meanwhile, the US. House Financial Services Committee is gearing up to vote on legislation that could pave the way for digital assets to shine.
The next bitcoin bull run?
According to the crypto analytics firm Nansen, the next cryptocurrency bull market will need two things
Regularity clarity in the US
Proof that core inflation is moving lower
Nansen research analyst Aurelie Barthere
"Shallow BTC sell-offs and ongoing decrease in crypto implied volatility tell us that a lot of regulatory and macro bad news are already priced in. The scenario of a recession is being pushed back and inflation is surprising by its stubbornness. This creates non-linear effects, whereby monetary policy (outside of Asia) remains more restrictive for longer, and in turn, becomes an increasing headwind for risk assets."
In short: Not yet. Hold your horses gunners.
Former Barclays CEO Bob Diamond
“Regulation, regulation, regulation. Stop avoiding regulators and figure this out … we need regulation and clarity."
Diamond has praised BlackRock's recent filing for a Bitcoin Spot ETF, saying it's a natural course for crypto in an increasingly digitised world.
“I love seeing some of the mainstream firms get involved here, like BlackRock,” said Diamond during an interview with CNBC’s Squawk Box
Diamond previously worked with BlackRock to invest in Circle, the issuer of the world's largest stablecoin, USDC. BlackRock's filing has sparked optimism among US investors, as the SEC has rejected all related filings thus far.
Diamond believes clearer rules and enforcement actions are necessary for crypto to reach its full potential.
TTD Bonds 💲
MakerDAO, the DeFi protocol behind the mighty DAI stablecoin, just snapped up $700 million worth of US Treasuries.
Total bond allocation now reaches a staggering $1.2 Billion.
By adding more US Treasury shares to their portfolio, they're creating a diversified approach that would make even the most seasoned investors jealous.
This masterstroke move was strategised by the brilliant minds at Monetalis Group. They've designed a plan that's expected to yield 4.5% annually.
MakerDAO's stablecoin, DAI, currently has a total value locked (TVL) of $8.4 Billion. Short-term bond ETFs make up a significant chunk of the collateral backing DAI.
💼 Circle's bonds
After a bit of a tussle with the US debt ceiling standoff, Circle Internet Financial, the stablecoin issuer behind USD Coin (USDC) is also back in action and buying up US Treasury bills to support their $28 Billion USDC.
The Circle Reserve Fund (USDXX), managed by the mighty BlackRock, is now flexing its muscles. They're not just grabbing Treasury bills; they're also keeping repurchase agreements (repos) as part of their reserve strategy.
As of June 20, Circle has added a whopping $2.2 Billion of T-bills to their fund. Repos still make up a massive 90% of the $24.7 Billion in assets. And let's not forget the additional $3.5 Billion in bank deposits, with the "vast majority" snuggled up at the Bank of New York Mellon.
TTD Zora 🎊
Zora, the creative powerhouse and NFT minting platform, has just unveiled its very own layer-2 scaling network for Ethereum. This network is designed to be an artist's dream, reducing costs and enhancing the user experience for all the talented creators out there.
We've have got some deets
The Zora Network aims to lower costs and improve the user experience for artists and creators in the NFT space.
It is built on the tech stack of layer-2 scaling network Optimism and supported by over 35 platforms.
Ethereum gas fees have been identified as a systemic inhibitor to Web3 adoption by Zora's co-founder Jacob Horne.
The Zora Network makes minting 25 times cheaper compared to Ethereum's mainnet.
In May 2022, Zora raised $50 Million in funding and has attracted around 130,000 users in June.
Zora has been the platform for notable NFT drops, including the sale of the Doge meme NFT for $4 Million and collaborations with the Warhol Foundation.
The long-term ambition of Zora is to create a DAO that can raise funds through the sale of governance tokens.
TTD AI 📍
German tabloid company Bild has vehemently denied recent reports claiming that it is replacing its editorial team with artificial intelligence (AI). Rest assured. AI will be working alongside journalists, not taking over their jobs.
The rumours originated from The Guardian and other media outlets, stating that Bild's parent publishing firm, Axel Springer SE, planned to automate various editorial positions using AI. However, Christian Senft, Bild Group's director of communications, has set the record straight.
Senft clarified that the job reductions are unrelated to AI and emphasised that the company has no intention of replacing journalism with AI. In fact, Bild intends to leverage AI to support journalistic work and enhance the reader experience.
🗞️ Bild, founded in 1952, has witnessed changes in its circulation over the years. Although its daily circulation peaked in the 1980s with over five million copies sold per day, it has gradually decreased. As of 2022, the print newspaper had a circulation of just over one million.
TTD Surfer 🏄
Bitcoin mining company CleanSpark has agreed to purchase two facilities in Georgia for $9.3 Million in cash.
Maverick Protocol has raised $9 Million to build more efficient liquid staking token infrastructure and solve cross-chain liquidity efficiencies.
Neutron, a smart contract platform for the Cosmos blockchain, has raised $10 million in a funding round led by Binance Labs.
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