USDC Collateral Report No 100% USD

GBTC is still bought at a low level

After Grayscale Bitcoin Trust’s large GBTC volume was unlocked last week, the market did not see much interest from institutional investors. Although there are a number of large investment organizations such as Morgan Stanley, ARK Invest, Rothschild, … buying shares of GBTC.

Another news that has also been noticed is that JP Morgan bank started to let customers with money buy BTC investments through the Grayscale Bitcoin Trust fund. This is a bank that used to be a big critic of Bitcoin now providing services for BTC. This is a big step towards BTC adoption and helps BTC move deeper into the traditional financial markets.

As for Grayscale’s GBTC shares, although there are some large organizations buying and selling, this number is still very small. We still see that the price of GBTC is still below the price of BTC which is still not attractive enough for institutional investors.

The GBTC Discount or Premium index has increased slightly, but only when the index returns to positive levels will investors see strong buying power. The current buying force is still not enough to push the price of GBTC up.

The reason institutions are buying GBTC is because these institutions believe there will be a law to approve BTC ETFs later on. The Grayscale Bitcoin Trust will then be converted into a Bitcoin ETF and the GBTC price will be equal to the BTC price. With this belief, many institutional investors will take advantage of buying GBTC at the current low price. Here are the top 10 investment funds holding the most GBTC in the year.

With the current situation BTC after dropping to $29,400 and recovering to $32,000. The amount of BTC on the exchange had a strong increase on July 15-19. But so far, the amount of BTC on the exchange has been on a downward trend.

BTC price reacted positively after the B Word conference. One-time famous rap artist Busta Rhymes said that, after listening to this conference, he decided to invest in Bitcoin and Ethereum.

BlockFi has trouble with the state of Alabama

BlockFi is in trouble from two states New Jersey and Alabama. The US state of Alabama has accused BlockFi of offering unregistered securities.

BlockFi’s flagship product is lending products such as the BlockFi interest account (BIA) which are believed to be unregistered securities under Alabama Securities Commission (ASC) regulation.

With an almost zero bank interest rate situation, many people will withdraw and deposit interest on BlockFi. BlockFi is providing a deposit service with an interest rate of about 7%, which is an attractive interest rate compared to bank deposits.

The two states that are banning BlockFi above are small states in the US, so the impact is not much. BlockFi was founded in 2017 and has endured a crypto winter. With Thuan still continue to use the service of this company and this information does not affect the present.

Circle publicly reports collateral for USDC

Recently, Circle – the company behind the second largest stablecoin in the crypto market after USDT released its audit report and the company is about to list through SPAC. This is also the information many investors want to know about how the asset backs up Circle’s USDC.

Below is the structure of Circle’s assets as announced by the major auditing firm Grant Thornton.

In Circle’s asset structure, cash and cash equivalents (Cash & Gov Money Market Funds) currently account for 61%. Next, accounts depositing periodic interest at foreign banks (Yankee CDs) accounted for 13%, US bond assets accounted for 12%, short-term loans of less than 270 days (commercial paper) accounted for 9%, the remaining 5 % of corporate bonds.

The safe-haven portion for the USD including cash and cash equivalents, government bonds, and short-term loans totals 82%, the rest is riskier. USDC’s level of transparency and asset quality significantly outperforms stablecoin Tether but still raises concerns at the Boston Federal Reserve and Fitch.

However, Circle asserts that the strength of the transparency report is the detail it shares about both the rating and the maturity for each asset class. At the same time, if regulators come up with rules for the quality of assets that need to support stablecoins, it is likely that USDC assets will be easily compliant. And this will be more difficult for Tether because of the current very large capitalization.