Loading...
Insights, news and analysis for the professional investor By Lawrence Lewitinn, Managing Editor for Global Capital Markets December 5, 2021 Sponsored by Bitcoin (BTC) - $49,556.51 Ether (ETH) - $4,219.92 Prices as of 12/5/21 @ 8:00 a.m. UTC If you were forwarded this newsletter and would like to receive it, sign up here.
It’s the first weekend of the last month of 2021, which means the market is excited for … something. Anything. NFTs, perhaps?
– Lawrence Lewitinn
A message from Crypto.com Buy bitcoin and 100+ cryptocurrencies with 20+ fiat currencies. New users can enjoy 0% credit/debit card fees on all crypto purchases made in their first 30 days. Download the Crypto.com App now.
The Briefing “Okay, so now what?” That was basically what the bitcoin market was saying over the past few weeks. Then a sell-off in the spot market over the weekend triggered several hundred million dollars’ worth of futures liquidations that helped to send prices plummeting further.
Ever since the massive rally culminating in the all-time high of $68,990.90 on Nov. 10, prices came down and stayed south of $60,000 over for the most recent couple of weeks. Some of the hype, it seems, was related to the bitcoin futures exchange-traded fund (ETF) launch, and the subsequent letdown seems likewise to reflect a market that doesn’t know what to do next.
Look at the ProShares Bitcoin Strategy ETF (BITO), which hit the market Oct. 19. Within two days, assets under management (AUM) reached $1.2 billion and spot bitcoin was up over 50% from the previous month.
Anticipation had been building for several weeks that the U.S. Securities and Exchange Commission (SEC) was going to allow some sort of a bitcoin-based ETF to start trading, which it did on Oct. 15.
Thanks And then … meh.
The first bitcoin futures ETF’s AUM was valued around $1.4 billion as of Friday. That’s roughly how much it was when bitcoin prices peaked. What’s interesting to note is that the number of shares in the ETF, which trades like a stock, has grown steadily since launch with only a couple of net declines. On Oct. 21, it was just shy of 30,000 shares while now it’s a little less than 40,000. That tells us there was a growing interest in holding bitcoin, but it wasn’t gangbusters like it was a couple of months ago.
– L.L.
A message from Copper Copper provides a gateway into the cryptoasset space for institutional investors by offering custody, prime brokerage, and settlements across 250 digital assets and more than 40 exchanges. We are committed to providing flexible solutions that adapt to the changing cryptoasset space, while enabling far greater transparency, control, and security for asset managers.
To learn more visit copper.co/interest
Chain Links Badger DAO was struck by a front-end attack in which $120 million in user funds was stolen. TAKEAWAY: Attack vectors in decentralized finance (DeFi) continue to emerge, as the industry is still in its youth. The stolen funds were a result of a compromised website or front end and not a bug within the protocol’s smart contracts. Smart contract insurance protocol Nexus Mutual announced that it would not cover the exploit.
Jack Dorsey’s payment giant Square changed its name to Block. TAKEAWAY: While not explicitly mentioned, the company is likely going to focus more closely on delivering bitcoin and blockchain-based services. The announcement came just days after Dorsey stepped down as the CEO of Twitter, showing that Block will likely be his largest priority.
Marathon Digital expanded its hosting agreement to 100,000 bitcoin mining machines, helping the company become 77% carbon-neutral. TAKEAWAY: Marathon Digital is one of the largest U.S.-based mining companies and is looking to bring an environmentally friendly approach to proof-of-work mining. The announcement is a positive sign that miners are reinvesting into the crypto ecosystem and creating more sustainable infrastructure for the future.
Certik, a blockchain audit firm, raised $80 million at around a $1 billion valuation. TAKEAWAY: Certik has 20x annual revenues and raised $140 million over the past year, highlighting the demand for high-level smart contract auditors. The company helps blockchain applications and protocols prevent exploits through audits, security rankings and attack monitoring.
FTX.US officially launched Ethereum NFT trading on its centralized marketplace. TAKEAWAY: OpenSea’s initial NFT mania left many market participants priced out because of Ethereum gas fees. FTX.US sees opportunity in creating more liquid and efficient markets for NFTs, while also undercutting OpenSea’s trading fee by .5%.
– Teddy Oosterbaan
Podcast episodes worth listening to: “Keeping Up With the DAO Joneses” Are you ready to effect change in your local community, for your clients, for the industry but, ultimately, for the world with DAOs?
“Big Gaming Signals NFTs Are Closer to Mainstream” A look at emerging battle lines in the nascent world of triple-A gaming NFTs.
“How November Bear Market-Proofed the Crypto Industry” Huge capital raises have given crypto companies and funds much deeper war chests.
“Are NFTs Taking Over the Art Market? Notes from Art Basel Miami Beach” Are NFTs here to stay and become a necessary fixture of the future?
Real Vision Daily Briefing: Finance & Investing “Surprise, Surprise: Inflation Is Not Transitory?” Fed Chair Jay Powell just said it’s time to retire the word “transitory.” Tony Greer and Ash Bennington are here to talk all about inflation and oil.
Crypto Long & Short A newsletter from CoinDesk Were you forwarded this newsletter? Sign up here. Copyright © 2021 CoinDesk, All rights reserved. 250 Park Avenue South New York, NY 10003, USA Manage your newsletter subscriptions | Unsubscribe from all CoinDesk email |
Loading...
Loading...