Institutional investors are increasingly interested in BTC
Bitcoin yesterday still held around 16,900 USD. Altcoins rose slightly.
The crypto market received good news from the world’s largest asset management company BlackRock with more products on BTC. BlackRock has filed an application with the SEC to allocate a portion of its Global Allocation Fund to BTC Future. This is one of the most preferred vehicles for casual and passive investors. During bull market times, BlackRock is pretty quiet. But when the market is down and negative like now, they are very interested in crypto.
It can be seen that many investment funds are still very interested in BTC and crypto even though the market is not good. Not only BlackRock, recently investment funds like Fidelity, … also have plans to provide more crypto products to their customers. The CEO of investment bank Morgan Stanley is convinced that the cryptocurrency that has emerged will not disappear, it will gradually become a part of the financial markets.
There are many reasons for organizations or individuals to decide to invest in BTC and crypto. However, one of the biggest reasons is for investment funds related to the benefits and profits that can be achieved from this investment segment. When organizations see that other entities have good profits from crypto or their own customers have demand, they will provide services to their customers.
Besides, statistics show that people who are interested in investing in crypto are mainly young people from 25 to 45 years old. The young generation is also the generation that will inherit the property from the old generation and they will become the main customers later. Therefore, the crypto market will grow stronger and become a part of the financial market.
“Crypto has come and will continue to exist, it is not going away and is becoming more legal. Crypto is getting more and more complex, and we can’t be hostile to technology. We have to accept it,” Thomas Fattorusso, IRS official (US Taxation Office) told The Wall Street Journal. Already, many government officials have also recognized the influence and future of crypto.
Yesterday, Prince Philip of Serbia also said that countries should follow the example of El Salvador and keep a portion of BTC in the national treasury. Cryptocurrency storage is also a way for countries to diversify the portfolio of assets stored in the treasury alongside traditional assets such as gold or major foreign currencies. BTC as well as crypto will overcome many of the limitations of gold such as flexibility, easy movement and not being controlled by any country or agency. So Serbia is also moving towards storing BTC in the treasury.
Countries like El Salvador have accepted BTC and it has also brought a lot of benefits to them such as in terms of tourism, economy and expanding worldwide awareness. Or Michael Saylor and Microstrategy also bought BTC, their stock grew better and from a very little known company became more prominent. When comparing Microstrategy’s stock to other assets or investments, both have outperformed.
ETH’s Shanghai Update
Ethereum developers announced that the next network hard fork or incompatible software upgrade will take place next March. In the next Shanghai update, it will be possible to withdraw ETH for staking in the Beacon Chain from December 2020. This is a milestone for those who have participated in ETH staking to get their ether back.
This also makes some people worry that there will be a large amount of ETH staking that can be withdrawn and sold on the market. It can adversely affect the price of ETH. However, Coindesk shares data on the staking amount of large tokens, then ETH is the coin with the smallest staking ratio behind coins like BNB, ADA, SOL,…
Because the initial staking condition of ETH is that it can only be withdrawn when ETH 2.0 is successful, it will limit the amount of ETH participating in staking. Only those who really believe in the long-term future or they give a certain amount of ETH in their risk tolerance at worst lose their ETH completely to staking. So when the ETH withdrawal function is implemented, it will likely push participants to staking much larger than it is currently. At that time, the amount of ETH in the market decreasing can have a good impact on the price.
The Gemini exchange is experiencing issues regarding the Earn product as its product partner Genesis is experiencing issues following the crash of FTX. CryptoQuant data shows that Gemini is still operating normally and there is no sign of account related issues. Users can still withdraw money normally except for Earn products.
Genesis, on the other hand, is under the scrutiny of the justice department over its relationship with parent company DCG. The Justice Department is looking into whether the two companies have mixed funds. Regarding the Earn product, Genesis said that it needs more time and will have an answer for affected users.
Another update on how much of the 7% stake in Robinhood’s company has been frozen by the court. However, yesterday Sam and his lawyer said that the shares belonged to Sam personally, so they asked to return this amount to SBF. The reason he gave was that the shares were purchased with his own money, not the victims’. The court has yet to respond.
The incident regarding Robinhood’s shares raises questions about whether the SBF concealed ownership of assets other than the shares.
In a January 6 announcement, the trustee of the Mt. Gox, Nobuaki Kobayashi, said that the deadline for repayment options for victims of the 2014 hack previously announced as January 10, has now been moved to March 10, 2023 citing delays delay in providing information on receiving money from victims. At the time of the hack, the amount of BTC lost was equivalent to $ 473 million, the amount of BTC that Mt.Gox has recovered so far is worth more than $ 2.3 billion.
Bitcoin mining company Marathon Digital made a full $30 million revolving loan payment in December. This payment freed up the 3,615 BTC it used as collateral for Silvergate Capital. And Silvergate is also in trouble because it has a relationship with crypto exchange FTX, which also recently laid off a series of employees. So maybe this is the reason Marathon Digital wants to get back the collateralized BTC.
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