Bitcoin Back to Orbit To Go $100K CZK

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2021-10-28 13:24:47

Grayscale recruits people from ETF division

Bitcoin rose to levels around $39,000 yesterday. Ethereum also continued to rise after the successful London hard fork event. The altcoin market mostly follows the BTC trend and also has growth.

Yesterday, SEC Chairman Gary Gensler shared with CNBC and reaffirmed his views on BTC: “I am very supportive of innovation but we also need to follow the rules …. Satoshi’s invention Nakamoto, if it is to fulfill its potential, needs to be within the regulatory frameworks.”

Gary Gensler is also considered by many to be the driving force behind the development of crypto and Bitcoin ETFs. In this situation, today’s leading crypto investment company Grayscale has also recruited a head of the global ETF department to work. This is the company’s attempt at making the transition to a Bitcoin ETF model. If converted from GBTC to Bitcoin ETH, Grayscale’s Bitcoin ETF would instantly become the third largest ETF of all current ETFs. As can be seen, the amount of BTC that Grayscale is holding is very large.

The biggest difference between the ETF investment fund and the Grayscale Bitcoin Trust’s GBTC shares is that investors’ interests are protected by the ETF’s mechanism of action as well as the law. Currently, when investors can deposit or BTC and receive back with shares of GBTC and Grayscale will store Bitcoin equivalent to the amount invested at the company. But with ETFs, BTC instead of being stored at Grayscale will be stored by a third party independent of Grayscale. In the event that Grayscale has a risk such as bankruptcy, the investor’s shares are still guaranteed value by BTC that the third party is responsible for holding. And the BTC ETF fund will be easy for investors to access through US securities applications.

Recently, another company proposed a crypto ETF fund following a series of previous proposals. Investment firm Victory Capital Management has filed an application with the United States Securities and Exchange Commission (SEC) for a cryptocurrency exchange-traded fund. This company is managing more than 161 billion USD. They recommend ETFs for eight cryptocurrencies: Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Chainlink’s LINK, Stellar’s Lumen (XLM), Filecoin (FIL), and Uniswap (UNI).

Bloomberg says BTC is approaching 100,000 USD

Bloomberg Intelligence has released a latest report on the price trend of BTC as well as several other assets. In this report is highlighted by the comment that BTC is back on the trajectory “towards $100,000”.

The reason given by Bloomberg Intelligence is that BTC supply is decreasing while demand and adoption are increasing in most countries. They also noted that BTC has established solid support at $30,000. At the same time, BTC is also preparing to turn the next level of $40,000 as solid support to continue towards $100,000.

Currently, China is making it difficult for crypto companies like mining companies, Bloomberg thinks this is an opportunity for the US to open up to crypto.

Third, Bloomberg refers to the bond market. The report says that, in the future, interest rates on bonds will be lower and lower. Currently, a large number of bonds are also in the negative interest rate zone. Therefore, BTC will gradually become the first choice to combat inflation and devaluation of fiat money.

More and more companies, organizations and individuals are investing in BTC as well as Ethereum. Companies are also promoting expansion in combination with crypto in providing services and businesses such as Paypal, Visa, Mastercard, etc.

The example given by Bloomberg is the Kodak company which is a very famous movie company in the past. The company did not believe in and had no vision in the future of photos instead of being stored in albums that would be stored on electronic devices without needing to be printed. So they lost their development future. Or Blockbuster company used to have a very successful movie disc business, but they do not believe in the future of the film industry can develop strongly into online movies. They said that at that time the internet was just developed, so it was difficult to watch movies online. So, Blockbuster went bankrupt and the trend of the online movie industry like Netflix has been growing.

From the examples above, Bloomberg says that companies have learned a lot from Kodak or Blockbuster about not realizing visions of the future. As a result, many companies today accept to integrate and use BTC, ETH, and other cryptocurrencies into their services. If they fail, these companies will only suffer a partial loss. But if successful, companies will receive huge profits as well as future development.

Bloomberg strongly believes in the future development of BTC and ETH. They believe that BTC is approaching $100,000 and ETH is also on its way to $4,000.

American Bankers Association encourages banks to join crypto

The American Bankers Association (ABA) also encourages US banks to partner with cryptocurrency companies. ABA sees growing customer interest and interest in this area.

The ABA produced this 20-page report that provides a detailed analysis of cryptocurrencies, including a glossary and crypto operations with banking products and services.

The report features four distinct crypto-asset categories: Cryptocurrencies (cryptocurrency), stablecoins (stablecoins), CBDCs (Central Bank Digital Currencies) and NFTs (Collectible Cryptocurrencies). .

The potential as well as opportunities that banks can invest in crypto are given by ABA as follows:

  1. Store of Value: Banks can earn revenue by storing part of their assets in digital currencies like BTC. BTC is likened to electronic gold and the price is increasing.

  2. Custody or wallet providers: Banks can offer digital wallets and charge a service fee for them when a customer stores cryptocurrencies at the bank.

  3. Interest accounts: Banks can earn a fee on interest through facilitating lending activities to investors.

  4. Lending: Banks can offer crypto loans to customers and charge a fee.

  5. Payments: Banks may charge fees like what happens with a credit or debit card. As some banks can cooperate to provide liquidity via credit cards such as Visa card Coinbase, Paypal,…

  6. Floor services: Banks can create exchanges and make profits from floor services such as transaction fees, deposit fees, listing fees,…

  7. Broker-dealer: The bank may collect the difference from the purchase of crypto-assets entrusted from the customer and collect fees or charges from supporting the conversion transaction,…

  8. Network Utility: Banks can offer utility tokens and earn revenue creating and selling them. For example, the NFT token, using the token to build decentralized financial applications,…

  9. Investment insurance: Banks can offer property insurance to diverse investors.

  10. Asset management: Banks may charge a fee to manage crypto portfolios for clients.

Another aspect of the report is around crypto regulations. It focuses on requirements around the sale or offering of cryptocurrencies, tax reporting, and remittances. The ABA Association is a very large body in the United States that is serious about the potential of crypto. The bank will gradually deploy services related to this potential market.

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