BTSE Weekly Digital Asset Industry Report – Dec 1st

This Week’s Big Movements

This week in the world of cryptocurrencies was marked by pivotal macroeconomic developments – the crypto market responded to signals from the U.S. Federal Reserve Governor Chris Waller – with notable reactions across various digital assets. Acknowledging a slowdown in the economy and a favorable trend in inflation rates, Waller hinted at a potential shift in the Federal Reserve’s policy, suggesting that rate cuts might be on the horizon if the current trend continues. Looking into the future, the crypto market remains buoyant with positive forecasts. Standard Chartered Bank continues to hold an optimistic view, especially for Bitcoin. They reiterated their April prediction earlier this week, anticipating BTC to reach the $100,000 milestone by the end of 2024. The key to this outlook is the expected approval of several U.S.-based spot bitcoin ETFs in the first quarter of 2024, potentially paving the way for substantial institutional investment in both Bitcoin and Ethereum. Additionally, the upcoming Bitcoin ‘halving’ event in late April 2024, a significant supply-limiting mechanism, is poised to further catalyze the cryptocurrency’s price appreciation.

This Week in the Business

• ARK Investment Management LLC Sells Coinbase Stock, Invests in Robinhood & SoFi: ARK Invest has sold an additional $5 million of Coinbase (COIN) stock, comprising 38,668 shares from its Ark Fintech Innovation ETF (ARKF). This follows a previous sale of 43,956 shares on Monday. In contrast, ARK has been investing in other companies, buying $2 million worth of shares in the trading platform Robinhood (HOOD) and $1.5 million in online bank SoFi Technologies (SOFI).

• Wormhole Valued at $2.5 Billion Following Funding Round:Wormhole, a developer platform facilitating communication between different blockchain networks, has successfully raised $225 million at a $2.5 billion valuation. This significant funding round, reminiscent of the heights of the last crypto bull run, saw contributions from notable backers likeJump Trading Group, Brevan Howard, Coinbase Ventures, andMulticoin Capital.

• Fidelity’s Ether ETF Makes Progress with the SEC: The U.S. Securities and Exchange Commission (SEC) is seeking feedback from the public on a proposal submitted by Fidelity Investments to list and trade shares of its Ethereum Fund. Approval of this proposal would mark a major advancement in the launch of a regulated, exchange-traded Ether-based product in the United States.

• Microstrategy Expands Its Bitcoin Holdings: Microstrategy, a key corporate investor in Bitcoin, ramped up its investment efforts by buying approximately 16,130 BTC, totaling around $608 million. This bold move reflects the company’s strong confidence in Bitcoin, occurring despite a slight decrease in its stock price.

• Brazil Cracks Down on Foreign Exchanges: The Senate in Brazil has approved legislation imposing a 15% tax on profits from cryptocurrencies stored in foreign exchanges. Scheduled to be implemented starting January 1, 2024, pending the President’s approval, this bill aims at Brazilian citizens who earn more than $1,200 through international exchanges and individual-investor funds.

• 13 Crypto Pioneers Among Forbes’ ’30 Under 30′:The latest Forbes ’30 Under 30′ list, focusing on finance leaders in North America, prominently highlights multiple individuals from the cryptocurrency industry. Almost half of the awardees are founders and top executives from the crypto world, such as the co-founders of Sei Labs, Toku, Injective Labs, Layer3, and a general partner at Blockchain Capital.