What has been happening around Blockchain Technology and Cryptocurrencies this week? The most relevant local and international developments as well as appealing background reports in a pointed and compact way in retrospect in our weekly review.
Since the emergence of Bitcoin, bridging the gap between both fiat and cryptocurrencies has been a challenge. In the early days, this function was handled mainly by crypto exchanges. On these marketplaces, it was possible to trade Bitcoin against USD or other currencies. However, many of the original exchanges have since failed due to regulation or hacking attacks. Coinbase, one of the first crypto exchanges, has been in the industry since 2012 and so far has managed to deal best with the complex US regulatory system. As a result, it has been able to establish itself as the dominant exchange in the United States. This week, the company released impressive quarterly results and additional information about its IPO (ticker: COIN) on April 14. Currently, Coinbase's valuation stands at $100 billion. A direct listing on Nasdaq could give the crypto industry the legitimacy it has long sought.
Particularly in Switzerland, a certain maturation process of the blockchain industry can be seen. Thanks to politics and regulation, the necessary legal certainty for a flourishing ecosystem around blockchain and cryptocurrencies was created early on. Thus, the term "Crypto Valley" was shaped in reference to the " Silicon Valley". In the meantime, the ecosystem has expanded into various industries and geographically, the Crypto Valley has also expanded. In the last two months, a number of things have been happening. Switzerland's banking regulator FINMA denied Bitcoin Suisse a banking license, more private banks entered the industry, the canton of Zug enabled tax payments with Bitcoin, and the leading crypto ETP issuer in Switzerland reached $1 billion AuM.
For institutional investors, investing in crypto assets is complex because of regulatory rules. Especially in the U.S., market participants therefore often turn to the Grayscale Investments trusts. An "exchange traded fund" (ETF) would create easy and regulated access for investors to the new asset class. Established financial institutions have been trying to launch an exchange-traded bitcoin ETF for years, but the U.S. regulator has so far rejected all applications. This week, the world's largest crypto asset custodian reiterated its intention to convert Grayscale Bitcoin Trust (GBTC) into an ETF. Goldman Sachs and Fidelity Investments are also looking to launch a bitcoin ETF. But Grayscale has been working closely with the SEC since 2016. For now, it remains to be seen who will win the race to become the first Bitcoin ETF issuer in the United States.
Blockchain technology offers a wide range of use cases. The digital representation of real assets on a decentralized ledger is known as tokenization. The World Economic Forum (WEF) addressed the topic this week. Key talking points included fundraising ease, digital art in the form of non-fungible tokens (NFTs), and the opportunity for illiquid assets. UAE Minister of Economy Abdulla Bin Touq Al Marri sees tokenization as a key tool to facilitate capital raising and asset fractionation.
In addition: Access to crypto assets via financial instruments traded on traditional exchanges is growing steadily. Swiss exchange SIX is one of the pioneers, with a growing number of listed exchange-traded products (ETPs). This week, a newly launched Litecoin ETP will extend accessibility to alternative crypto assets.
Selected articles in the weekly review:
The U.S. IPO of crypto exchange Coinbase will take place on April 14th. The IPO was complemented by impressive numbers this week, highlighting the legitimacy of the crypto markets.
https://cryptovalleyjournal.com/hot-topics/news/more-information-on-coinbase-ipo-announced/
The Crypto Valley is considered one of the most "crypto-friendly" regions in the world. So what exactly is happening within this Blockchain ecosystem?
Leading crypto asset manager Grayscale Investments is looking to turn its in-house bitcoin trust into an "exchange-traded fund" (ETF).
The World Economic Forum (WEF) 2021 recently discussed the potential of tokenization.
The range of listed crypto ETPs on the Swiss Exchange (SIX) is being expanded with the addition of a Litecoin ETP.
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