For all the doom and gloom surrounding crypto markets these days, there’s plenty to be excited about. Institutional investors are still actively buying Bitcoin (BTC), venture capital is still investing heavily into blockchain startups and forthcoming regulatory clarity is likely to pave the way for wider adoption, perhaps as early as next year. This week’s Crypto Biz newsletter features some exciting stories about adoption, not to mention Elon Musk’s deal to buy Twitter (finally).
Sidebar: I had the opportunity to attend Circle Internet Financial’s Converge22 conference in San Francisco last week. In a media session on the sidelines of the conference, Circle CEO Jeremy Allaire said USD Coin’s (USDC) “stablecoin” label is a misnomer and that we should start thinking about the asset as a true form of a digital dollar. I also had the opportunity to interview several leaders from the blockchain community on topics related to interoperability, market manipulation, CeFi risks and crypto’s multichain future.
NYDIG raises $720M as Bitcoin balance hits all-time high
A recent filing with the United States Securities and Exchange Commission (SEC) revealed that New York Digital Investment Group had raised roughly $720 million for its institutional Bitcoin fund. The company, which offers cold storage custody solutions to institutional investors, also increased its BTC holdings by nearly 100% year-over-year, clearly showing its intent to hodl during the market downturn. Once again, NYDIG and its investors demonstrate that depressed market conditions are opportune times to buy Bitcoin. Are you ready to get greedy when others are fearful?
Bitwise launches Web3 ETF for institutional and retail investors
Speaking of institutional investors, they will also have more streamlined access to Web3 investment opportunities as per a new exchange-traded fund offered by Bitwise. The new Bitwise ETF, which was announced this week, provides “focused exposure to one of the fastest-emerging themes in technology.” The fund’s launch coincides with billions of dollars in venture capital pouring into Web3 startups over the past 10 months. Not quite sure what Web3 means? Don’t worry, you’re not alone. We know that it refers to some future iteration of the internet that’s more decentralized and powered by blockchain technology. Beyond that, definitions and interpretations vary.
Musk’s deal for Twitter looks set to go with original $44B price tag
Entrepreneur and Dogecoin (DOGE) enthusiast Elon Musk will buy Twitter after all — opening up the real possibility that the social media network will become increasingly crypto-compatible. On Oct. 4, the eccentric billionaire confirmed his intent to acquire Twitter for $44 billion, or $54.20 a share, more than six months after originally signaling plans to do so. As we await a shake-up at Twitter’s headquarters, expect to see your follower count shrink as the newly acquired company begins purging spam bots.
Basel Committee: Banks worldwide reportedly own 9.4 billion euros in crypto assets
While most institutional investors await regulatory clarity before dabbling in crypto, several banks have already gained exposure to the sector. According to a new study published by the Basel Committee on Banking Supervision, 19 out of 182 banks within the organization’s purview have already invested in Bitcoin and other digital assets. They currently hold a combined $9.4 billion worth of digital assets. You know what this means, right? Banks are chomping at the bit to get in on crypto. It’s only a matter of time before the floodgates open (or until regulatory clarity provides the green light).
Before you go: Credit Suisse faces rumors of a Lehman Brothers-style collapse
Investors have been on edge all week amid rumors that the Zurich-based Credit Suisse was facing its moment of reckoning. Struggling to restructure its business in the wake of scandals and money-laundering accusations, the Swiss investment giant saw its credit default swaps surge over the weekend. Crypto investors are now asking: How will this fiasco impact us? In this week’s Market Report, I sat down with fellow analysts Marcel Pechman and Benton Yaun to discuss how Credit Suisse’s downfall could impact the crypto markets. You can watch the full replay below.
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