Welcome to The Wise Guy,
Where we take cryptocurrency seriously, but we also know how to have a good time.
That’s why we’ve curated the crème de la crème from not one, not two, but FIVE newsletters.
MilkRoad, Defiant, Messari, Bankless, and CoinDesk Node.
Defiant’s Top Story
Subhead: The Ether ETF Extravaganza
BlackRock, the world’s largest asset manager, is making headlines with its plan to launch an ETF that holds ether (ETH). This move is akin to their proposed BTC ETF, but with a significant difference – Coinbase, a leading cryptocurrency exchange, has been roped in as a surveillance provider and custodian. This strategic decision is aimed at preempting the usual concerns of the Securities and Exchange Commission about potential market manipulation. And guess what? The mere announcement of this filing sent ETH’s price soaring above $2,100. Now that’s what I call a ripple effect!
Meanwhile, Swiss banking giant UBS isn’t far behind. It’s offering its wealthy clients exposure to three crypto ETFs. They’re using a Hong Kong-based platform to trade two bitcoin futures and one ETH futures ETFs, which have a combined valuation of a whopping $72 million.
Subhead: MicroStrategy’s Bitcoin Bonanza
MicroStrategy, the business intelligence company turned bitcoin evangelist, is now sitting on over $1 billion in unrealized profits from its bitcoin holdings. That’s like finding a winning lottery ticket in your old jeans! They’ve been strategically buying bitcoin since summer 2020, amassing a stockpile worth $4.6 billion. To put that into perspective, it’s ten times larger than the next biggest institutional holder, Marathon Digital.
Subhead: The Rise, Fall, and Rise Again of FTX
A year after the fall of FTX, a leading cryptocurrency derivatives exchange, asset prices are rising again and the crypto industry sees fresh opportunities for growth. It’s like watching a phoenix rising from the ashes, isn’t it?
Subhead: DeFi Dilemma: Privacy vs Transparency
In the world of decentralized finance (DeFi), there’s a delicate balance between privacy and transparency. It’s like trying to walk a tightrope while juggling flaming torches – one wrong move and things could go up in smoke!
Subhead: ‘Uptober’ Ushers in New Crypto Bull Run
Stronger interest from institutional investors and a market with relatively few sellers could mean we’ve entered a new phase of the market. This could be the start of a new crypto bull run, or as some are calling it, ‘Uptober’.
Subhead: Poloniex’s Hack & Hodlnaut’s Liquidation
Crypto exchange Poloniex recently lost around $114 million due to a hot wallet exploit. But don’t worry, they’ve assured us that “the losses are within manageable limits”. Meanwhile, Singapore-based crypto lender Hodlnaut is heading for liquidation after losing $189 million in the Terra/UST implosion. It’s like a soap opera, but with more cryptography and less love triangles.
Subhead: The Takeaway: CME Flips Binance
The Chicago Mercantile Exchange (CME) is now the place to trade bitcoin futures. For the first time in months, if not years, CME is seeing more BTC futures volumes than Binance, the world’s largest cryptocurrency exchange. This flippening is often seen as a sign of increasing institutional interest in crypto.
So, what does this all mean for bitcoin? Are the institutions finally here? Will the price continue its upward trajectory? If I had the answers to these questions, I’d probably be on a yacht in the Caribbean right now. But alas, I’m here, bringing you the latest and greatest from the ever-evolving world of crypto. Stay tuned for more!
Messari’s Desk
House Appropriations Bill Amendments Stir Debate
This week saw the House considering a financial services appropriations bill that included amendments related to cryptocurrency. These amendments aimed to defund SEC enforcement actions related to crypto, halt Treasury’s efforts to develop a Central Bank Digital Currency (CBDC), and increase funding for Treasury to combat illicit financing involving ransomware and cryptocurrencies. However, the bill was pulled before a vote on final passage due to insufficient votes.
The Keep Your Coins Act Introduced by Senator Ted Budd
Senator Ted Budd (R-NC) introduced the Keep Your Coins Act this week. This bill aims to prohibit regulators from infringing on the right to self-custody digital assets. It’s a significant move, especially considering the ongoing debates around self-custody and its potential risks.
Chinese CBDC Prohibition Act Makes Waves
Senators Rick Scott (R-FL), Ted Cruz (R-TX), and Marsha Blackburn (R-TN) introduced the Chinese CBDC Prohibition Act. This bill seeks to prohibit U.S. money services businesses from engaging in transactions involving a CBDC issued by the People’s Republic of China.
Looking Ahead
Next week promises to be eventful with comments due for the IRS’s proposed rule regarding digital asset broker tax reporting requirements. There are also hearings scheduled with banking regulators and a House Financial Services Subcommittee on illicit finance.
Quick Updates
In other news, the Consumer Financial Protection Bureau (CFPB) has proposed new federal oversight of Big Tech companies and other providers of digital wallets and payment apps. The SEC Inspector General highlighted challenges in recruiting crypto specialists due to the requirement to divest their crypto assets. Paradigm suggested a solution: allow staff to own up to $5,000 in crypto assets and exempt stablecoin ownership from the Office of the Ethics Counsel’s rule.
Bankless’ Desk
ETH Joins the Party
Ethereum has finally decided to join the fun, breaking above $2,100 on Thursday. The reason? BlackRock, America’s largest asset manager, has filed for a spot ETH ETF. It seems like approval of spot ETFs for crypto’s top two assets is just around the corner! However, let’s not forget that not everyone is invited to the Bull Market party. Some are still waiting for their invites.
The Bulls are Back in Town
The bulls have made a grand comeback, sparking talks of a new bull run. Solana is still the star of the show with its impressive run. But Bitcoin and Ethereum are not far behind, putting up a good fight. Chainlink, Polygon, and Cosmos also joined the rally, making significant gains. This market-wide surge has left the bears licking their wounds. But is it the start of a new cycle or just a temporary setback for the bears? Only time will tell.
ETF Fever is Spreading
This week, the crypto world has been buzzing with ETF-related developments, adding fuel to the bullish fire. From the SEC opening talks with Grayscale over its application to convert its flagship fund into a spot bitcoin ETF, to Ark Invest preparing to launch a new suite of crypto ETFs with 21Shares, and BlackRock filing for a spot Ethereum ETF, it’s clear that institutional interest in crypto is growing. Now, we’re all eagerly waiting for more news on this front.
Polygon Powers Up
Polygon has been making waves this week with two major developments. First, a collaboration with NEAR Foundation to build a zero-knowledge (ZK) prover for Wasm blockchains, aiming to bridge Wasm-based chains with the Ethereum ecosystem. Second, talks with Kraken about launching its own L2 network. It’s all happening for Polygon!
Circle Prepping for IPO?
Circle, the issuer of USDC stablecoin, is reportedly considering a public offering in early 2024. This could be a game-changer for Circle and a landmark event for the crypto industry, bridging the gap between digital assets and mainstream finance.
Fed & BoE Eye Regulating Stables
Stablecoins are under the microscope as both the U.S. Federal Reserve and the UK’s financial regulators eye new regulatory frameworks.
The Bank of England (BoE) and the Financial Conduct Authority (FCA) are seeking feedback on proposals for regulating stablecoins, while Michael Barr, the Federal Reserve’s vice chair for supervision, has called for a strong federal framework for stablecoins.
MilkRoad SBF
ETH Breaks Free from the Chains
Crypto prices have been on a joyride all year long. But there’s one token that’s been more of a slowpoke… ETH. It’s been stuck in the $1,600 – $1,800 range and hasn’t rallied like other major tokens this year. (i.e., BTC is up +124% YTD and SOL is up +398% YTD.) If the crypto market was a prison yard, ETH would be some guy named “Rico’s sidekick”.
Well, yesterday that all changed…ETH pumped 10% on the day and hit $2,000 for the first time in 7 months! So why is ETH pumping? One word… BlackRock
.
BlackRock Makes Big Moves
The largest asset manager in the world ($9T AUM) made a few big moves yesterday:
Registered a new corporate entity named “iShares Ethereum Trust”. (It did something similar before filing for a spot Bitcoin ETF earlier this year.)
Filed paper with Nasdaq to launch a new ETF product.
Both signs point toward one thing… BlackRock is trying to launch a spot ETH ETF.
Why this matters: ETFs offer a way for investors who aren’t comfortable buying tokens to get exposure to the industry. And to meet the demand of ETF investors, institutions need to load up on the underlying asset (in this case ETH). More demand + more adoption = higher token prices. (and a happy Milk Man.)
VCs Launching $100M+ Crypto Funds
Crypto prices haven’t been the only thing rallying recently…So has VC funding. This week alone:
LightSpeed Faction announced a new $285M crypto fund.
Standard Chartered’s SC Venture and SBI Holdings announced they’re investing $100M into crypto startups.
Maven announced it’s raising another $100M fund (and it’s already raised more than a third of the funds so far).
Jokes aside…this is a positive sign for the industry. More $$ in VC funds = more $$ deployed into crypto startups = more $$ to build and grow.
Takes a deep breath Ahhhh…
Prices are green. VCs are raising 9-figure funds. Nature is healing.
Would You Rather… Own 1 BTC, 20 ETH, or 800 SOL?
This was a pretty interesting stat…
1 BTC will get you about about 20 ETH. It’s the highest ratio we’ve seen in 2 years…
We can also add SOL to the party…
1 ETH gets you about 40 SOL. The lowest ratio we’ve seen all year long.
(Btw – 4 months ago, 1 ETH could get you about 100 SOL)
So we got curious…
Which would you rather own?
CoinDesk’s Best Story
MicroStrategy’s Bitcoin Bonanza
MicroStrategy, the business intelligence company turned bitcoin evangelist, is now sitting on over $1 billion in unrealized profits from its bitcoin holdings. That’s like finding a winning lottery ticket in your old jeans! They’ve been strategically buying bitcoin since summer 2020, amassing a stockpile worth $4.6 billion. To put that into perspective, it’s ten times larger than the next biggest institutional holder, Marathon Digital.
The Rise, Fall, and Rise Again of FTX
A year after the fall of FTX, a leading cryptocurrency derivatives exchange, asset prices are rising again and the crypto industry sees fresh opportunities for growth. It’s like watching a phoenix rising from the ashes, isn’t it?
DeFi Dilemma: Privacy vs Transparency
In the world of decentralized finance (DeFi), there’s a delicate balance between privacy and transparency. It’s like trying to walk a tightrope while juggling flaming torches – one wrong move and things could go up in smoke!
‘Uptober’ Ushers in New Crypto Bull Run
Stronger interest from institutional investors and a market with relatively few sellers could mean we’ve entered a new phase of the market. This could be the start of a new crypto bull run, or as some are calling it, ‘Uptober’.
Poloniex’s Hack & Hodlnaut’s Liquidation
Crypto exchange Poloniex recently lost around $114 million due to a hot wallet exploit. But don’t worry, they’ve assured us that “the losses are within manageable limits”. Meanwhile, Singapore-based crypto lender Hodlnaut is heading for liquidation after losing $189 million in the Terra/UST implosion. It’s like a soap opera, but with more cryptography and less love triangles.
The Takeaway: CME Flips Binance
The Chicago Mercantile Exchange (CME) is now the place to trade bitcoin futures. For the first time in months, if not years, CME is seeing more BTC futures volumes than Binance, the world’s largest cryptocurrency exchange. This flippening is often seen as a sign of increasing institutional interest in crypto.
So, what does this all mean for bitcoin?
Are the institutions finally here? Will the price continue its upward trajectory? If I had the answers to these questions, I’d probably be on a yacht in the Caribbean right now. But alas, I’m here, bringing you the latest and greatest from the ever-evolving world of crypto. Stay tuned for more!
Twice weekly crypto goodness, coming your way! Catch us every Monday, Tuesday and Friday. And hey, don’t forget to check us out on Wednesdays for all the latest AI news – because why limit yourself to just one kind of intelligence?