Značka: investments

OP Crypto launches $100M fund to back early-stage crypto VCs

OP Crypto, a cryptocurrency venture capital firm founded by former Huobi executive David Gan, is launching a new fund to support emerging fund managers focused on early-stage crypto investments.Named “OP Funds of Funds I,” the fund has secured $50 million in commitments from major companies like FTX’s investment subsidiary LedgerPrime and FJ Labs.The OP FoF I will target a hard cap of $100 million, with founders planning to close out the fund by the end of Q3, OP Crypto’s chief operating officer Lucas He told Cointelegraph.The fund will work on identifying and supporting crypto fund managers with unique vertical expertise in areas like infrastructure, decentralized finance, nonfungible tokens, metaverse, gaming and others.While the fund has a “differentiated focus” on the Asia-Pacific region, it will continue to invest on a global scale and seek to get exposure to fund managers in regions like Latin America, Africa, India, Southeast Asia and others, He noted.Investors in the FoF will get access to deal flow from all of the managers within the vehicle and have the opportunity to double down on specific projects via co-investment opportunities.OP FoF I is the second fund to invest in emerging crypto fund managers by OP Crypto. In June 2021, the firm launched its $50 million OP Ventures Fund I, targeting pre-seed and seed projects across the Web 3.0 space. The fund was backed by major companies and institutional investors in the industry, including Mike Novogratz’s Galaxy Digital, the venture capital firm Digital Currency Group, Bill Ackman and Alan Howard.“OP stands for open, operational and opportunistic,” He said, adding that those are the “traits that the fund ascribes by.” The exec went on to say that despite the current market downturn there’s a lot of investors looking for crypto exposure, stating:“To our surprise, there is actually quite a lot of picked up demand due to people not knowing where exactly is best to park capital amidst the current bear market.”Also acting as OP Crypto’s head of research, He will serve as the general partner at the OP FoF I. He is a veteran in the crypto space since 2013 and previously held investment and FoF roles at Huobi Capital and State Street. OP Crypto founder Gan will take the role of president and advisor to the fund.Related: How crypto is attracting some institutional investors — Huobi Global sales headGan and He led the FoF strategy at Huobi and deployed capital on Huobi’s behalf and were seed investors in Multicoin Capital, Dragonfly Capital, and 1kx. “All of these investments were done early 2018 when those funds all had sub $50 million in assets under management,” He stated, adding that these funds eventually hit a milestone above $1 billion AUM three years later.

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NYDIG study calculates the value of regulation worldwide in terms of BTC price gains

The need for regulation is a common theme in discussions about cryptocurrency, and the claim is often taken to be self-evident. Now, financial services company New York Digital Investment Group (NYDIG) has done some number crunching to prove the point. In a new study, NYDIG quantifies the effect of regulation on the price of Bitcoin (BTC) worldwide.NYDIG studied Bitcoin prices at regular intervals following regulatory events affecting digital asset taxation, accounting and payments, as well as decisions on the legality of service providers and the digital assets themselves. The research looked at the Americas, Europe, China and Asia except for China, and confined itself to the period between September 30, 2011, and March 31, 2022. The number of regulatory events considered in the study varied between 17 in the Americas and 10 in China. With the exception of China, Bitcoin price rises were seen in absolute terms at all intervals and in all regions after a regulatory event, with the prices jumping over 100% in all cases in 365 days.Data relative to “average Bitcoin return” showed similar trends, although less sharply. In the Americas, Bitcoin prices rose 160.4% in absolute terms 365 days after regulatory events, and 32.3% in relative terms. In Europe, those figures were 180.1% and 52.0%, respectively. In Asia except for China, the figures were 116.9% and -11.2%, however.China was the exception that proved the rule. The authors called regulation in China “existential,” noting that the Chinese government gradually imposed bans on mining and trading of digital assets. Therefore, the negative impact of regulation they found on Bitcoin prices in China was also evidence of the effect of regulation. Related: Deloitte and NYDIG set up alliance to help businesses adopt BitcoinThe authors conclude, “The results of the study are clear. Both on an absolute basis as well as [a] relative basis, increasing regulatory clarity is advantageous for the price of Bitcoin.” Then they moderate their language almost immediately, writing:“The implication is that regulatory clarity, while not always perfect, is appreciated by investors. It is worth noting that it is impossible to directly observe the effect of regulation as there are myriad factors impacting price at any given time.” Nonetheless, the authors express confidence that, due to the scope of their sampling, “the effects of this noise are somewhat cancelled out” in their findings.

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MicroStrategy scoops up 480 Bitcoin amid market slump

Business intelligence firm MicroStrategy has added to its Bitcoin (BTC) holdings, reaffirming CEO Michael Saylor’s bullish outlook on the digital asset despite its recent struggles. In a Form 8-K filing with the United States Securities and Exchange Commission (SEC), Microstrategy disclosed that it had acquired an additional 480 BTC at an average price of roughly $20,817. The total purchase amount was $10 million in cash. With the purchase, MicroStrategy now holds 129,699 BTC, making it the largest corporate holder of Bitcoin. The total value of its holdings is roughly $3.98 billion. MicroStrategy has purchased an additional 480 bitcoins for ~$10.0 million at an average price of ~$20,817 per #bitcoin. As of 6/28/22 @MicroStrategy holds ~129,699 bitcoins acquired for ~$3.98 billion at an average price of ~$30,664 per bitcoin. $MSTRhttps://t.co/leQYTXn817— Michael Saylor⚡️ (@saylor) June 29, 2022The business intelligence firm is scooping up Bitcoin during a period of extreme market volatility. On Wednesday, Bitcoin’s price briefly dipped below $20,000, which is more than $10,000 lower than the company’s average acquisition price. The company’s BTC stash is currently sitting at a net unrealized loss of nearly $1.4 billion, according to data provided by Bitcoin Treasuries. Related: MicroStrategy may explore ‘future yield generation opportunities’ on 95,643 BTC holdingsMichael Saylor, the firm’s CEO, remains bullish on Bitcoin’s long-term prospects. Earlier this month, he told his 2.5 million Twitter followers that the firm plans to “HODL through adversity” and has no plans to offload its holdings. The bullish reaffirmation came amid rumors that the company risked a margin call if Bitcoin’s price fell below $21,000. According to Saylor, the margin call rumor is a “nothing issue.”MicroStrategy reported first-quarter revenues of $119.3 million. Gross profit for the quarter was $93.6 million. 

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21Shares responds to bear market with crypto winter ETP

21Shares, a global issuer of crypto exchange-traded products (ETP), is taking action to respond to the current bear market by launching crypto winter-focused investment tools.The company has rolled out the 21Shares Bitcoin Core ETP (CBTC), an ETP specifically designed to offer low-cost exposure to Bitcoin (BTC) am to the ongoing market sell-off.The physically-backed Bitcoin ETP started trading on the SIX Swiss Exchange on June 29, with a total expense ratio of 21 basis points, selected to reflect the 21 million cap on Bitcoin. According to the firm, CBTC’s ratio is 44 basis points below the next lowest product on the market.CBTC is part of 21Shares wider bear market-focused series of products referred to as the Crypto Winter Suite. The offering aims to provide investors with more options to enter the crypto ecosystem during challenging markets by providing lower costs, 21Shares’ ETP product director Arthur Krause told Cointelegraph.“Typically, the best time to buy an asset is when prices have fallen — but that is often when investors are the most reluctant to buy,” Krause noted. He added that CBTC aims to make it a bit easier for investors to access Bitcoin during highly volatile markets to optimize portfolio returns.According to the executive, 21Shares already offers several products that are oriented toward more challenging market conditions, including 21Shares Short Bitcoin ETP and 21Shares Bytetree BOLD ETP. The new crypto winter offering aims to expand these investment opportunities further on bear market-focused products, Krause said, adding:“CBTC will be a permanent member of the 21Shares product range (as will future products that are launched as a part of the Crypto WInter Suite). We intend to offer investors a full range of products that support them in positioning portfolios for a range of market conditions.”As previously reported by Cointelegraph, many industry executives were expecting a major crypto market decline to happen in 2022. Some execs even predicted that the next Bitcoin bull run won’t come until 2024 or early 2025, tied to Bitcoin’s fourth halving.Related: ‘Builders rejoice’: Experts on why bear markets are good for BitcoinIn June, the major cryptocurrency Bitcoin dipped below $20,000 for the first time since late 2020, fueling extreme fear sentiment on markets. Despite many crypto firms suffering major losses due to this bear market, some executives still expressed confidence that bear markets are good for Bitcoin and the crypto industry in general.

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How crypto is attracting some institutional investors — Huobi Global sales head

James Hume, head of sales at Huobi Global, said t while some institutional investors have gotten “cold feet” over crypto, many with billions of dollars are exploring the space.Speaking to Cointelegraph at the European Blockchain Convention on Tuesday, Hume said that the crypto exchange had observed increasing interest from institutional investors within the last one to two years in entering the digital asset space. According to Hume, it took a long time for certain firms and hedge funds to “build teams, raise capital and understand the infrastructure” to participate in crypto, estimating that 20–30 firms with more than $1 billion could start trading within the year.“I think it’s a pretty exciting time,” said Hume. “A lot of the more speculative bets in crypto… Some have got a bit of cold feet, obviously, if you’re looking to come to the market and take a pretty decent size allocation.”Join us at the 7th @EBlockchainCon where our incredible speakers will debate the widespread of staking in crypto sphere.June 27th⏰11:35 AM CETPanel: The Next Big Business in Crypto is Staking️@enevamaria Ben Spiegelman Andrew Howell @JamesHume112#EBC22 pic.twitter.com/n72nC7Nl4G— European Blockchain Convention #EBC22 (@EBlockchainCon) June 21, 2022The Huobi sales head added that the exchange noted that people had “slowed slightly” in investments in hedge funds, speculating that larger venture capital firms could wait out some of the market volatility, but some investors could “get scared, back out, trade, deleverage.” Some institutional investors, according to Hume, needed to be educated on the regulatory aspects of the space. Regulatory compliance, in addition to the number of new crypto market participants and infrastructure, could affect which companies choose to place speculative, long-term bets on cryptocurrencies like Bitcoin (BTC):“Over the past few years, the amount of places who have come out and said “we’re going to do crypto regulation” and it turns out to not be what everyone had quite hoped — either it takes too long, or they put things in places which are quite restrictive.”Related: Institutions are exploring the space — KPMG Canada crypto teamCointelegraph reported in June that Huobi had secured licenses to operate in New Zealand and the United Arab Emirates, while its Thailand-based affiliate — a separate entity — planned to shutter by July 1 after the country’s Securities and Exchanges Commission revoked the firm’s operating license. The crypto exchange also announced the launch of an investment arm with more than $1 billion in crypto assets under management aimed at exploring decentralized finance and Web3 projects.“I think everyone is in agreement now that crypto is going to be around for the long term,” said Hume. “Everyone is kind of in agreement for the most part that it’s going to be around, that it’s not a scam. There’s actual utility in the market […] that people can utilize in the real world.”

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Grayscale reports 99% of SEC comment letters support spot Bitcoin ETF

Digital asset manager Grayscale reported overwhelming support in public comments for its application to launch a spot Bitcoin exchange-traded fund.In a Monday letter to investors, Grayscale said that of the more than 11,400 letters the United States Securities and Exchange Commission, or SEC, had received in regards to its proposed Bitcoin (BTC) investment vehicle, “99.96 percent of those comment letters were supportive of Grayscale’s case” as of June 9. According to Grayscale, roughly 33% of the letters questioned the lack of a spot BTC ETF in the U.S., given the SEC had already approved investment vehicles linked to Bitcoin futures, as was the case for ProShares and Valkyrie.“The SEC’s actions over the past eight months […] have signaled an increased recognition of and comfort with the maturity of the underlying Bitcoin market,” said Grayscale CEO Michael Sonnenshein. “The approval of each and every Bitcoin-linked investment product strengthens our arguments about why the U.S. market deserves a spot Bitcoin ETF.”A message from @Sonnenshein for $GBTC investors, on everything we’ve done and everything we’re ready to do: https://t.co/j1FpuLCpKY pic.twitter.com/6vQKVT97V4— Grayscale (@Grayscale) June 27, 2022The regulatory body is currently reviewing Grayscale’s application allowing the firm to convert shares of its Bitcoin Trust (GBTC) into a physically-backed fund, which, if approved, would be the first spot BTC ETF offering in the United States. The application is nearing the end of a 240-day review process, which started in November 2021 and ends on July 6. Though Grayscale’s campaign to encourage public comments with the SEC has been ongoing since February, many industry experts have suggested the regulatory body approving such an offering was unlikely. The SEC rejected similar applications from NYDIG, and Global X as recently as March, and One River Digital in May. SEC chair Gary Gensler has often pivoted in interviews when questioned as to when the commission could approve a spot Bitcoin ETF, saying in February that he would give the matter “careful consideration.”“[In my opinion] the chances of GBTC being allowed to convert to an ETF next week are 0.5%,” said Bloomberg ETF analyst Eric Balchunas. “About the same odds the NY Jets have of winning the Super Bowl.”Related: ProShares will launch ETF aimed at shorting Bitcoin following dip under $20KIt’s unclear what moves Grayscale may make if the SEC denies its application next week. The firm said it was “unequivocally committed” to converting its BTC trust to an ETF, hiring a former U.S. Solicitor General in June to work as a senior legal strategist for its application. In May, the digital asset manager launched a crypto-linked ETF on the London Stock Exchange, Borsa Italiana and Deutsche Börse Xetra.

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Small-time investors achieve the 1 BTC dream as Bitcoin holds $20k range

Ever since early Bitcoin (BTC) investors woke up millionaires as the ecosystem gained tremendous popularity alongside the mainstreaming of the internet, investors across the globe have been in the rush to accumulate as many of the 21 million BTC — one Satoshi at a time.With BTC recently trading at the $20,000 range for the first time since 2020, small-time investors found a small window of opportunity to achieve their dream of owning at least 1 BTC. On June 20, Cointelegraph reported that the number of Bitcoin wallet addresses containing one BTC or more increased by 13,091 in just 7 days. While the total number of addresses holding 1 BTC saw an immediate reduction in days to come, the crypto community on Reddit continues to welcome new crypto investors that hodled their way into becoming a wholecoiner.A Reddit post announcing the procurement of 1 Bitcoin. Source: RedditRedditor arbalest_22, who shared the above screenshot, revealed that it took him around $35k in total to accumulate 1 BTC over several months since February 14, 2021. Showing further support for the Bitcoin ecosystem, the Redditor aims to continue procuring Satoshis or sats until he accumulates over 2 BTC. Arbalest_22 started purchasing BTC from crypto exchange Coinbase but later started using Strike owing to lower fees. Sharing a peek into his future plans, they stated:“I’m hoping in the future I can treat it more like rich people treat real estate and take loans out against it. Then as it appreciates just pay off the old loan with a new one. Boom, tax-free income.”Following suit, another Reddit user Evening-Main-5860, too, posted about being able to 1 BTC after largely following a dollar-cost averaging (DCA) strategy, wherein they regularly bought smaller amounts of BTC over a long period of time, stating:“I was able to catch the falling knife and buy enough to get me over the finish line. This was no easy feat. I’m just an ordinary guy with an ordinary life.”Data on number of wallet addresses with at least 1 BTC. Source: GlassnodeBetween June 15 to June 25, the total number of Bitcoin wallet addresses holding more than 1 BTC grew by 873, according to Glassnode data.Related: ‘Bitcoin dead’ Google searches hit new all-time highWhile falling BTC prices are seen by many as an investment opportunity, Google search trends highlight the tendency of other investors to speculate about its demise.Google searches for “bitcoin dead” hit all time highs over the weekend. pic.twitter.com/oDXNqGEeIL— Alex Krüger (@krugermacro) June 20, 2022The Google search results reflect peak anxiety for the cryptocurrency markets following weeks of relentless selloffs in asset prices.

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FTX may be planning to purchase a stake in BlockFi: Report

Crypto exchange FTX is reportedly in talks to acquire a stake in BlockFi after the company issued a $250 million credit to the lending firm.According to a Friday report from the Wall Street Journal, FTX is currently in discussions with BlockFi regarding the crypto exchange purchasing a stake in the firm, but no equity agreement has been reached. The reported ongoing talks followed BlockFi signing a term sheet with FTX to secure a $250 million revolving credit facility on Tuesday. “BlockFi does not comment on market rumors,” a BlockFi spokesperson told Cointelegraph. “We are still negotiating the terms of the deal and cannot share more information at this time. We anticipate sharing more on the terms of the deal with the public at a later date.FTX founder and CEO Sam Bankman-Fried, or SBF, has helped support many crypto projects in recent weeks amid a bear market forcing a lot of companies to reduce staff. Trading firm Alameda Research, under SBF’s management, announced it had loaned 15,000 Bitcoin (BTC) to Voyager Digital on Wednesday aimed at covering losses from its exposure to Three Arrows Capital.Cointelegraph reported on Sunday that SBF said he believes Alameda and FTX “have a responsibility to seriously consider stepping in, even if it is at a loss to ourselves, to stem contagion” around the market downturn:“Even if we weren’t the ones who caused it, or weren’t involved in it. I think that’s what’s healthy for the ecosystem, and I want to do what can help it grow and thrive.”VCs: “we’d love to help you backstop crypto firms and provide liquidity because we care deeply about preventing market contagion”also VCs: “can we please do it for the one great company (after you fix it) and make a lot of money doing it, you can take the others k thx bye”— SBF (@SBF_FTX) June 23, 2022Related: FTX will not freeze hiring amid layoffs at other crypto firms, CEO statesIt’s unclear if FTX’s reported intent to purchase a stake in BlockFi was related to financial difficulties at the crypto lending firm amid a bear market. However, in February the United States Securities and Exchange Commission ordered BlockFi to pay $50 million in settlement to the agency as well as $50 million to 32 state-level regulators over allegedly unregistered securities.Cointelegraph reached out to BlockFi, but did not receive a response at the time of publication.

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Roxe Holding in talks for listing on Nasdaq via $3.6B SPAC deal

Goldenstone Acquisition Ltd, a special-purpose acquisition firm (SPAC), has announced plans to go public with blockchain-based payments firm Roxe Holding Inc.As per the Wednesday announcement, the SPAC has agreed to a $3.6 billion merger with the global blockchain payments firm, which will see Roxe listed on the Nasdaq under the ticker ROXE. Roxe is a global payments company that offers both business-to-business and consumer payments services, with a focus on blockchain technology.According to a Reuters report, citing insider sources, no current stockholders of Roxe are planning to sell their stake after the merger. On Tuesday, Roxe stated that certain shareholders may qualify for earnouts if the listed share price is reached.Blockchain Payments Firm Roxe to Go Public in $3.6B Merger. #SPAC deal will see #Roxe merge with Goldenstone once deal wraps up in Q1, 2023. Roxe issues its own private tokens to facilitate money transfers and remittances across 113 countries pic.twitter.com/SfM3F2kJu6— Crypto HINDUSTAN (@criptohindustan) June 22, 2022The agreement comes into an unfavorable market environment, in which cryptocurrencies have plummeted in value and investors have largely abandoned special-purpose acquisition firms of this sort due to poor performance. The total market capitalization of cryptocurrencies dropped to less than $1 trillion, while Bitcoin (BTC) has now sunk to its lowest level since mid-2021.The long slide in crypto has been driven by concerns about the unwinding of numerous major participants. Sentiment has deteriorated as a result of growing inflation and interest rates and weaker macroeconomic signals.Furthermore, the agreement follows months after Goldenstone’s IPO, which generated roughly $57.5 million in capital. These resources will be utilized to increase Roxe’s financial reserves. It will also be CEO Haohan Xu’s second significant listing agreement of the year, having earlier agreed to a $530 million SPAC deal with Apifiny Group.Related: Crypto-focused SPAC raises $115M in Nasdaq IPOAfter a surge through 2020 and 2021, the popularity of SPACs- a typical listing vehicle for several major crypto companies – is waning this year. Following several fraud allegations, the U.S. Securities and Exchange Commission (SEC) recently outlined stricter reporting standards for SPACs.

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Deloitte and NYDIG set up alliance to help businesses adopt Bitcoin

Professional services giant Deloitte is getting increasingly serious about Bitcoin (BTC) amid the ongoing market downturn, setting up a major initiative to promote BTC adoption.Deloitte has partnered with the Bitcoin-focused financial services firm, New York Digital Investment Group (NYDIG), to help companies of all sizes implement digital assets.According to a joint announcement on Monday, NYDIG and Deloitte are launching a strategic alliance to create a centralized approach for clients seeking advice to adopt Bitcoin products and services.The companies will work together to enable blockchain and digital asset-based services across multiple areas involving Bitcoin-related products, including banking, loyalty and rewards programs, employee benefits and others.According to the announcement, global financial institutions and banks have been facing an increasing demand to provide trusted exposure to Bitcoin. The alliance between Deloitte and NYDIG aims to help accelerate adoption while ensuring compliance, Deloitte’s digital assets banking regulatory practice lead Richard Rosenthal said, adding:”The future of financial services will center around the use of digital assets, and we are focused on advising our clients on ways to engage in a regulated and compliant way.”A spokesperson for Deloitte told Cointelegraph that the partnership became active on June 21. The launch comes amid a major drop in cryptocurrency prices, with Bitcoin losing about 50% of its value since the beginning of 2022. “We take a longer view and expect that many companies will continue to build out their own digital asset infrastructure and products,” the representative noted.The news comes months after NYDIG launched a benefits program allowing employees to convert a portion of their paychecks into Bitcoin in February 2022. The company previously raised $1 billion in equity investment in late 2021, bringing NYDIG’s valuation to roughly $7 billion.One of the “Big Four” accounting firms, Deloitte has been growing more interested in cryptocurrencies like Bitcoin in recent years, actively exploring the role of Bitcoin and other digital assets in the global economy.Related: Top 30 Panama Bank is ‘Bitcoin friendly,’ welcomes crypto servicesIn June, Deloitte published a survey that found that 75% of retailers in the United States planned to accept crypto or stablecoin payments within the next two years. Deloitte published another study in March highlighting the potential of Bitcoin as a base to create a cheaper and faster ecosystem for electronic fiat or central bank digital currencies.

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ProShares will launch ETF aimed at shorting Bitcoin following dip under $20K

The firm behind one of the first Bitcoin futures-linked exchange-traded funds in the United States will give investors a new vehicle to bet against the price of the cryptocurrency.In a Monday announcement, exchange-traded fund issuer ProShares said its Short Bitcoin Strategy ETF would be available for trading on the New York Stock Exchange, or NYSE, starting Tuesday under the ticker BITI. The vehicle will allow U.S. investors to bet against Bitcoin (BTC) using futures contracts, given the cryptocurrency’s performance in a single day as measured by the Chicago Mercantile Exchange Bitcoin Futures Index.“BITI affords investors who believe that the price of Bitcoin will drop with an opportunity to potentially profit or to hedge their cryptocurrency holdings,” said ProShares CEO Michael Sapir. “BITI enables investors to conveniently obtain short exposure to Bitcoin through buying an ETF in a traditional brokerage account.”The launch of the investment vehicle will come amid a bear market for major cryptocurrencies including Bitcoin and Ether (ETH). On Saturday, the BTC price dropped under $18,000 for the first time since 2020 but has since returned to more than $20,000 at the time of publication. The ETH price experienced a similar drop to under $1,000 on June 18 — an 18-month low.The first-ever Short Bitcoin ETF in the U.S. begins trading on Tuesday. ProShares wins the race again. They whiffed on ticker tho. It’s $BITI zzzzz. Should be $NGMI or $FUD or something. https://t.co/QXZRtlhTm3— Eric Balchunas (@EricBalchunas) June 18, 2022In 2021, ProShares launched its Bitcoin Strategy ETF on the NYSE, offering one of the first investment vehicles offering exposure to BTC futures in the United States. Opening at $40 per share on October 18, shares of the ETF have fallen more than 68% to reach $12.72 at the time of publication. In addition to BITI, ProShares-affiliated company ProFunds announced it will be launching a mutual fund vehicle aimed at shorting the BTC price under the ticker BITIX. Related: ProShares files with SEC for Short Bitcoin Strategy ETFInvestors do not have access to spot Bitcoin ETFs listed in the United States due to the Securities and Exchange Commission’s seeming reluctance to approve an investment vehicle with direct exposure to the cryptocurrency. However, the regulatory body approved ETFs linked to BTC futures starting in 2021, including those from ProShares and Valkyrie.

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How a DAO for a bank or financial institution will look like

DAOs can provide several services for banks, including asset management, compliance and lending. Banks today are already using blockchain technology for things like payment, clearing and settlement, trade finance, identity and syndicated loans, according to The Financial Times. However, there are still many unexplored areas in banking where a DAO-based model might be useful: Fundraising In the crypto world, initial coin offerings (ICOs) are breaking down the barrier between access to capital and traditional services like capital-raising firms. Likewise, banks can use DAOs to raise capital from a wider pool of investors via ICOs. Loans and Credit Using decentralized technology in banking can eliminate the need for gatekeepers in the lending industry. DAOs provide more secure ways for people to borrow money, not to mention lower interest rates and better terms. Trade Finance DAOs could also streamline trade finance by digitizing paper-based processes and automating manual tasks. This would make it easier for banks to keep track of their transactions, thereby reducing the risk of fraud and establishing trust among global trade parties. Securities A DAO can help banks issue, manage and trade securities, both digital and traditional. Through tokenization of traditional securities such as bonds, stocks, and other assets and placing them on blockchains, banks can facilitate the creation of capital markets that are interoperable, efficient and accessible to the greater public. Customer KYC and Fraud Prevention Since DAOs are transparent and decentralized, they offer a way for banks to verify the identity of their customers while preventing fraud. Using smart contracts, banks can automate customer onboarding and KYC processes. Blockchain technology also offers financial institutions an efficient and secure platform for sharing information with other firms.

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