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A New GBP-pegged Stablecoin, FTX Making Chess Moves, and More!
Markets are doing slightly better than the last 7 days; the crypto market gained 11% capitalization, with Bitcoin jumping 4.7% and Ethereum 9.4% since last Tuesday. The market sentiment is kept at the edge of its seat as speculators compare the liquidity crisis accumulating on the likes of BlockFi, Celsius, and other DeFi platforms to the financial crisis in 2008. On the brighter side of the tunnel, Bank of England’s Deputy Governor Jon Cunliffe said that crypto projects that survive these trying times in the industry could become the tech companies of the future; aligning with other bullish sentiments that deem the market crash as healthy to infiltrate the strong projects from the weaklings.
Figure 1: More VC Money in Digital Assets since Last Market Crash
Source: PitchBook, Bloomberg
Key Takeaways
• Cardano lobbies for software-enabled self-regulation for the cryptoassets industry• Data indicates nearing a market bottom
• Tether to launch GBP-pegged stablecoin
• KPMG kicks off collaboration hub in the metaverse
• Solana unveils web3-focused Android phone
Weekly Returns
The returns of the top five cryptoassets over the last week were as follows — BTC (1.7%), ETH (6.8%), BNB (6.86%), ADA(2.59%), XRP (9.39%)
Time frame: 21 to 27 June
Media Coverage
Our CEO and co-founder Hany Rashwan went live on CoinDesk TV on Monday to discuss market conditions. “As an ETF provider, we had the ability to create a number of new shares, as new investors come in, we’re in an all-time high in terms of number of shares, now the prices have obviously depressed but that shows an incredible amount of new investors and inflows,” Hany told CoinDesk TV. You can watch the full segment here.
On another note, 21Shares’ co-founder and president Ophelia Snyder got featured on Bein Crypto. The article reads: Many larger firms may also lack the technical expertise necessary to confidently deal with crypto assets. ”The level of technical detail you need is quite high,” said Ophelia. ”That reality disproportionately benefits specialized firms.”
Last but not least, our last newsletter was featured on Finanzen.ch and Bond Guide in German. If you want to switch to the German newsletter, click here.
News
Morgan Creek Digital and FTX Compete Over Acquiring Crypto Lender BlockFi
What happened?
On June 21st, BlockFi’s CEO Zac Prince announced on Twitter that his company signed a term sheet with FTX to secure a $250M revolving credit facility to provide access to capital that further bolsters the crypto lender’s balance sheet and platform strength. The proceeds of the credit facility were intended to be contractually subordinate to all client balances across all account types (BIA, BPY and loan collateral) and will be used as needed.
Three days later, news circulated that FTX in talks to acquire stake in BlockFi, nudging cryptocurrency investment firm Morgan Creek Digital to roll up its sleeves and raise $250M from investors to purchase a majority stake in crypto lender.
Why does it matter?
The downfall of prices that took a sharp turn in May had a domino effect on crypto exchanges and DeFi platform, namely BlockFi, which lost almost 80% of its valuation. There are four reasons this story matters:
- The credit line agreement gives FTX the option to buy BlockFi at allegedly zero price.
- This would effectively wipe out all of BlockFi’s existing equity shareholders, including management and employees with stock options, as well as all equity investors in the company’s previous venture rounds.
- However, FTX’s agreement was the only emergency financing option offered to BlockFi that would not subordinate client assets to the rescuer.
- Unless BlockFi went with FTX, its depositors would have had to wait in line behind the new lender to be repaid.
This is a further testament that the bear market is a battleground to test crypto projects in the space and thicken the skin of those who remain. The $250M revolving credit facility sets an example for bigger crypto companies to collaborate with younger projects to enhance accessibility of crypto markets.
Now with Morgan Creek wanting in on the deal, the trend is crystal clear that extreme market conditions have tempted companies to help younger projects amid times of fear, uncertainty, and doubt, while also getting in on the benefits that would be collected in the not-so-near future.
Research Newsletter
Each week the 21Shares Research team will publish our data-driven insights into the crypto asset world through this newsletter. Please direct any comments, questions, and words of feedback to research@21shares.com
Disclaimer
The information provided does not constitute a prospectus or other offering material and does not contain or constitute an offer to sell or a solicitation of any offer to buy securities in any jurisdiction. Some of the information published herein may contain forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors. The information contained herein may not be considered as economic, legal, tax or other advice and users are cautioned to base investment decisions or other decisions solely on the content hereof.
Discover the latest insights on the Bitcoin halving event.
Get our report to understand how the upcoming halving in April will impact the market, mining community, and the Bitcoin ecosystem.
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What is the Bitcoin Halving?
The Bitcoin halving is a programmed event that reduces the reward for mining new coins by 50% approximately every four years, ultimately limiting the total supply of Bitcoin, akin to the scarcity of gold. This mechanism, embedded in Bitcoin’s protocol, aims to maintain its value proposition as a decentralized, fixed and immutable monetary system, although its performance is influenced by various factors that go beyond the halving.
How are miners impacted by the halving?
The Bitcoin halving impacts miners through reduced block rewards and shifts in profitability, influenced by Bitcoin’s price fluctuations. Miners may seek refinancing options to sustain operations, while decreased mining difficulty during downturns encourages cost-effectiveness and strengthens the network. As a result of this cycle’s unique demand, miners are selling less BTC on exchanges, indicating a more bullish stance amidst price surges and increased market accessibility driven by ETF inflows.
How can I get access via ETPs?
Easily access Bitcoin through Exchange-Traded Products (ETPs) listed on regulated exchanges. With these ETPs, you can trade Bitcoin via your regular brokerage accounts without the need for a digital wallet. Rest assured as you invest confidently, supported by transparent documentation and similar tax treatments as traditional ETPs or securities. Start trading Bitcoin ETPs today for a seamless investment experience that combines the convenience of traditional trading with the potential of cryptocurrency assets.
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Research Newsletter
Each week the 21Shares Research team will publish our data-driven insights into the crypto asset world through this newsletter. Please direct any comments, questions, and words of feedback to research@21shares.com
Disclaimer
The information provided does not constitute a prospectus or other offering material and does not contain or constitute an offer to sell or a solicitation of any offer to buy securities in any jurisdiction. Some of the information published herein may contain forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors. The information contained herein may not be considered as economic, legal, tax or other advice and users are cautioned to base investment decisions or other decisions solely on the content hereof.
The Bitcoin Halving and Beyond
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Nyheter7 dagar sedanETFmarknaden i Europa firar sitt 24-årsjubileum med tillgångar på två biljoner USD
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Nyheter3 veckor sedanDe mest populära börshandlade fonderna mars 2024
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Nyheter3 veckor sedanFUIG ETF investerar i hållbara företagsobligationer som följer Parisavtalet
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Nyheter4 veckor sedanNy fond ger tillgång till företag från tillväxtmarknader exklusive Kina
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Nyheter1 vecka sedanTillgång till obligationsmarknaden för företagsobligationer från utvecklade marknader
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Nyheter4 veckor sedanFonder för att investera i batteriboomen…
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Nyheter2 veckor sedanFörsvarsfond når förvaltad volym på 500 MUSD
