Introduction

Franklin Templeton and SBI Holdings are teaming up to bring bitcoin ETFs to Japan. This new joint venture is preparing for Japan’s approval of cryptocurrency funds. The partnership aims to establish a digital asset management company. The goal is to be ready as soon as Japan gives the green light for cryptocurrency exchange-traded funds (ETFs).

Partnership Details

SBI Holdings, a Japanese financial services group, will partner with Franklin Templeton, a U.S. investment firm. SBI will hold a 51% stake in the new company, while Franklin Templeton will own the rest. Franklin Templeton is the seventh-largest asset manager in the world, managing around $1.6 trillion in assets. This new company will focus on preparing for the launch of crypto ETFs in Japan.

Franklin Templeton’s Move into Digital Assets

Franklin Templeton has traditionally focused on assets like stocks and bonds. However, in recent years, they have started investing in digital assets. They were one of the first to launch spot bitcoin ETFs after approval from the U.S. Securities and Exchange Commission in January. These spot bitcoin ETFs have seen total inflows exceeding $16 billion in just six months, according to market researcher EPFR.

Global Approval of Bitcoin ETFs

Bitcoin ETFs have already been approved for trading in the U.S., Canada, Brazil, Hong Kong, and Australia. While Japan hasn’t approved them yet, the new company by Franklin Templeton and SBI will be ready once approval is granted. This shows the growing acceptance of bitcoin ETFs worldwide.

Benefits for Retail Investors

Bitcoin ETFs can be traded through regular securities accounts. This means retail investors don’t need to use specialized crypto exchanges. They also don’t need to manage complex password-like private keys. This makes trading bitcoin ETFs much easier for everyday investors.

Ethereum ETF Trading

In addition to bitcoin ETFs, there are also Ethereum ETFs. Trading of an Ethereum ETF began in the U.S. recently. This is another step in the growing market of cryptocurrency ETFs.

Digital Asset Securities

The new joint venture will not only focus on bitcoin ETFs but also on digital asset securities. Franklin Templeton has been an early mover in this area. Digital asset securities involve tokenization. Tokenization uses blockchain to create tradable ownership tokens of assets like real estate and government bonds. According to a forecast by Boston Consulting Group and ADDX, asset tokenization is expected to grow to $16.1 trillion by 2030.

SBI Holdings’ Expansion into Alternative Assets

SBI Holdings has been partnering with overseas companies to expand its offerings in alternative asset investment products. For example, they established companies with U.K.-based Man Group in July 2023 and with U.S. private equity firm KKR in September 2023. These alternative assets have a low correlation with traditional assets like stocks and bonds, making them attractive for investors looking to diversify their portfolios.

SBI Securities’ Wealth Management Office

SBI Securities, Japan’s largest online brokerage, set up a wealth management office in July 2023. This move aims to expand their customer base upmarket, providing more options for wealthy clients. This shows SBI’s commitment to growing its presence in the financial market.

Preparing for Japan’s Approval

The new joint venture between Franklin Templeton and SBI Holdings is strategically positioned to launch bitcoin ETFs as soon as Japan’s Financial Services Agency (FSA) gives its approval. This proactive approach shows the company’s commitment to being at the forefront of the cryptocurrency market in Japan.

The Future of Digital Asset Management

With Franklin Templeton’s expertise in asset management and SBI’s strong presence in Japan, the new company is well-equipped to handle the complexities of digital asset management. They are preparing to meet the growing demand for cryptocurrency funds and digital asset securities.

Summary of Key Points

• Franklin Templeton and SBI Holdings are teaming up to bring bitcoin ETFs to Japan.
• SBI Holdings will hold a 51% stake in the new company.
• Franklin Templeton is the seventh-largest asset manager globally.
• They have moved into digital assets and were early movers in spot bitcoin ETFs.
• Bitcoin ETFs have seen significant inflows globally.
• The new company will also focus on digital asset securities and tokenization.
• SBI Holdings is expanding into alternative asset investments.
• SBI Securities set up a wealth management office to attract wealthy clients.
• The joint venture is preparing for Japan’s Financial Services Agency approval.

Conclusion

Franklin Templeton and SBI Holdings’ partnership marks a significant step in bringing bitcoin ETFs to Japan. This move reflects the growing global acceptance of cryptocurrency funds and digital assets. With the combined expertise of both companies, they are well-prepared to meet the demand for these innovative investment products. As Japan moves closer to approving cryptocurrency ETFs, this new joint venture is poised to play a crucial role in the future of digital asset management.

Blackrock’s View on Crypto ETFs Beyond Bitcoin and Ethereum

Blackrock, a major asset manager, believes there is “very little interest” in cryptocurrencies beyond Bitcoin (BTC) and Ethereum (ETH). Robert Mitchnick, Blackrock’s head of digital assets, shared this insight at the Bitcoin2024 conference on July 25 in Nashville, Tennessee.

Limited Interest in Crypto ETFs Beyond BTC and ETH

Robert Mitchnick emphasized that most of Blackrock’s clients are primarily interested in Bitcoin, with some interest in Ethereum. He stated, “Our client base today is overwhelmingly interested in Bitcoin first, and then somewhat in ETH. There’s very little interest today beyond those two.” He spoke during a panel titled “From Strategy to Innovation: Blackrock’s Bitcoin Journey.”

Mitchnick doesn’t foresee a wide range of crypto exchange-traded funds (ETFs) being developed beyond Bitcoin and Ethereum. Blackrock launched its first crypto ETFs, iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust ETF (ETHA), in January and July, respectively.

Differing Opinions Among Asset Managers

Not all asset managers share Blackrock’s cautious view. Franklin Templeton, another asset manager that also issues BTC and ETH ETFs, is optimistic about the future of cryptocurrency ETFs, including plans for a Solana product. In a post on X (formerly Twitter) on July 23, Franklin Templeton expressed, “Besides Bitcoin and Ethereum, there are other exciting and major developments that we believe will drive the crypto space forward.”

Complementary Roles of BTC and ETH

Mitchnick explained that most of Blackrock’s clients view Bitcoin and Ethereum as complementary assets in their crypto portfolios, not as competitors. “When clients buy ETH ETFs, they usually add to an existing crypto portfolio allocation, rather than swap out of BTC,” he said. However, he noted that data on investor flows into ETH ETFs, which only started trading on July 23, is limited.

Bitcoin is often seen as a “store of value” within the crypto space, a role it holds quite definitively. On the other hand, Ethereum is involved in various applications that Bitcoin does not typically engage in. “ETH is trying to do a bunch of different applications that for the most part, Bitcoin is not trying to do,” Mitchnick said. “So, really, they’re more complements than they are competitors or substitutes.”

Mitchnick expects that eventually, investors will allocate around 20% of their crypto holdings to Ethereum, with the remainder going to Bitcoin.

Popularity of Blackrock’s Crypto ETFs

Blackrock’s crypto ETFs are among the most popular in the industry. The iShares Bitcoin Trust (IBIT) commands approximately $22 billion in assets under management (AUM), while the iShares Ethereum Trust ETF (ETHA) has approached $270 million after only a few days of trading.

Blackrock’s Strategic Insights

Mitchnick’s insights reflect Blackrock’s strategic approach to the crypto market. By focusing on Bitcoin and Ethereum, Blackrock aims to meet the primary interests of its clients. This strategy seems to be paying off, given the substantial AUM figures for their crypto ETFs.

Franklin Templeton’s Different Approach

In contrast, Franklin Templeton’s approach indicates a broader interest in the crypto market. Their optimism about future cryptocurrency ETFs, including products beyond Bitcoin and Ethereum, suggests a belief in the potential for other digital assets to play significant roles in the market.

Future of Crypto ETFs

The future of crypto ETFs remains a topic of interest and debate among asset managers. While Blackrock remains cautious and focused on Bitcoin and Ethereum, other firms like Franklin Templeton are exploring a wider range of cryptocurrency products. This divergence in strategies highlights the evolving nature of the crypto market and the differing opinions on what will drive its growth.

Key Takeaways

1. Client Interest: Blackrock’s clients are primarily interested in Bitcoin and Ethereum, with little interest in other cryptocurrencies.
2. Complementary Assets: BTC and ETH are seen as complementary, not competing, assets in crypto portfolios.
3. Strategic Focus: Blackrock focuses on BTC and ETH to align with client interests and achieve substantial AUM.
4. Diverse Strategies: Other asset managers, like Franklin Templeton, are more optimistic about a broader range of cryptocurrency ETFs.
5. Market Dynamics: The future of crypto ETFs will be shaped by differing strategies and evolving client interests.

Conclusion

Blackrock’s cautious approach to crypto ETFs, focusing on Bitcoin and Ethereum, contrasts with the more expansive strategies of other asset managers like Franklin Templeton. As the crypto market continues to evolve, these differing perspectives will play a crucial role in shaping the landscape of cryptocurrency investment products. The popularity of Blackrock’s ETFs highlights the strong client interest in BTC and ETH, while the optimism of firms like Franklin Templeton suggests that there may be more room for growth and innovation in the cryptocurrency ETF space.

MARA Buys $100 Million in Bitcoin, Holdings Surpass 20,000 BTC

Introduction

Bitcoin miner MARA, also known as Marathon Digital, has made a significant move by purchasing $100 million worth of bitcoin. This big purchase takes MARA’s total bitcoin holdings to over 20,000 BTC. MARA plans to adopt a full “HODL” strategy, meaning they will keep all the bitcoin they mine and will continue to make additional purchases when the time is right.

MARA’s Big Bitcoin Purchase

MARA recently announced that it has bought an extra $100 million worth of bitcoin. This acquisition brings their total bitcoin holdings on the balance sheet to more than 20,000 BTC, which is valued at about $1.3 billion. This amount represents nearly 0.1% of bitcoin’s total supply of 21 million.

MARA didn’t provide specific details on when they made these purchases or the average price per bitcoin. However, Salman Khan, MARA’s CFO, mentioned that they took advantage of favorable market conditions to make these strategic purchases. Based on the dollar amount and their holdings of 18,536 BTC at the end of June, it is likely that the latest acquisitions are around 1,500 BTC, bought in the $54,000 to $68,000 price range.

Previous Bitcoin Purchases

This isn’t the first time MARA has bought bitcoin outside of its mining production. In January 2021, MARA purchased $150 million worth of bitcoin. According to Salman Khan, the majority of the bitcoin on MARA’s balance sheet has come from their mining operations.

MARA’s Full HODL Strategy

MARA has decided to fully adopt a “HODL” strategy for its bitcoin treasury policy. This means they will keep all the bitcoin they mine and make additional strategic purchases periodically. Fred Thiel, MARA’s chairman and CEO, stated that this strategy shows their confidence in the long-term value of bitcoin. He believes that bitcoin is the best treasury reserve asset in the world and supports the idea of governments and corporations holding bitcoin as a reserve asset.

Reducing Bitcoin Sales

In 2023, MARA reduced the percentage of bitcoin sold from their production from 56% to 31% in 2024. This change was highlighted in a report by Bernstein, a research and brokerage firm. Before last year, MARA used to keep all their bitcoin. Given the current positive trends for bitcoin, including increased institutional support and a better macro environment, MARA is once again focusing on growing the amount of bitcoin they hold on their balance sheet.

Leveraging Balance Sheet and Capital Markets

Following their renewed strategy, MARA plans to use the existing cash on their balance sheet and capital markets to fund their operations. This means they are leveraging their financial strength to support their HODL strategy and further investments in bitcoin.

Expanding into Altcoin Mining

Last month, MARA announced that they are expanding into altcoin mining to diversify their revenue streams, especially after the Bitcoin halving. They have started using Kaspa application-specific integrated circuit (ASIC) miners since September 2023. This move is part of their strategy to grow beyond bitcoin and tap into the potential of other cryptocurrencies.

MARA’s Confidence in Bitcoin

MARA’s recent actions reflect their strong belief in the future of bitcoin. They see bitcoin as a crucial asset and are committed to holding and growing their bitcoin reserves. By adopting a full HODL strategy, reducing the percentage of bitcoin sold, and expanding into altcoin mining, MARA is positioning itself for long-term success in the cryptocurrency market.

Encouraging Others to Hold Bitcoin

Fred Thiel encourages other entities, including governments and corporations, to hold bitcoin as a reserve asset. He believes that bitcoin’s long-term value makes it an ideal choice for treasury reserves. MARA’s strategy and actions serve as a model for other companies considering similar moves.

MARA’s Strategic Bitcoin Acquisitions

MARA’s strategy involves making strategic bitcoin purchases during favorable market conditions. This approach allows them to maximize their bitcoin holdings and take advantage of lower prices. Their recent $100 million purchase is a testament to this strategy and their commitment to growing their bitcoin reserves.

Impact of Bitcoin’s Price Decline

Bitcoin’s recent price decline has provided an opportunity for MARA to increase their holdings. The strength of their balance sheet has enabled them to make significant purchases even during market downturns. This ability to buy low and hold for the long term is a key part of their HODL strategy.

Conclusion

MARA’s recent $100 million bitcoin purchase and their full HODL strategy demonstrate their strong belief in the future of bitcoin. By holding and strategically acquiring bitcoin, reducing sales, and expanding into altcoin mining, MARA is positioning itself as a leader in the cryptocurrency market. Their actions and strategy serve as a model for others, highlighting the potential of bitcoin as a treasury reserve asset.

Wall Street’s ETF Engine Revs Up After $17 Billion Bitcoin Haul

Introduction

Wall Street’s ETF engine is roaring again, especially after a huge $17 billion Bitcoin haul. This surge has issuers eager to introduce new crypto funds, particularly after the recent debut of Ether ETFs. The demand for Bitcoin ETFs has skyrocketed, with net inflows reaching $17.5 billion.

Rush for New Crypto Funds

Just 48 hours after US regulators approved Ether ETFs, asset managers are scrambling to release new products for the digital-asset market. ProShares recently submitted paperwork for six new funds that would either go long or short on Bitcoin or Ether. Hashdex is also looking to create a fund that includes both Bitcoin and Ether. Additionally, VanEck announced plans to launch an ETF based on Solana, the fifth-largest cryptocurrency. However, analysts predict a challenging path for such a launch.

Growth in the ETF Market

The ETF market is buzzing with activity. Despite the SEC’s cautious stance, Bitcoin ETFs are among the top funds for inflows this year, surpassing even some well-known tech funds. According to Roxanna Islam from VettaFi, ETFs are known for pushing boundaries. She expects more creative crypto ETF filings as investor interest in traditional spot-crypto ETFs grows.

New Fund Launches and Closures

The US ETF market, worth $9.4 trillion, is seeing rapid growth in new fund launches. So far this year, over 330 new funds have started trading, compared to around 500 for the entire last year. However, the market is also seeing a significant number of fund closures, with more than 100 ETFs shutting down in 2024, similar to last year.

Successful Debuts of Bitcoin and Ether ETFs

The debut of Bitcoin and Ether ETFs has been surprisingly successful. Ether ETFs, launched just a week ago, have already seen substantial inflows. Eight out of nine Ether ETFs have attracted investments, with BlackRock and Bitwise’s products each taking in more than $200 million. However, both the ETFs and Ether itself experienced a drop on Thursday, which some market experts predicted as a “sell-the-news” event.

Bitcoin ETFs’ Massive Inflows

Bitcoin ETFs have performed exceptionally well, with net inflows of $17.5 billion year to date. These ETFs have been in the making for years, and their launch signifies a more favorable US regulatory environment for digital assets. This regulatory shift is encouraging asset managers to get more creative with their products.

Inverse and Leveraged ETFs Popularity

Inverse and leveraged ETFs have gained significant popularity over the past year. These ETFs use derivatives to either boost returns or pay out the opposite of a stock or index’s return. Retail investors are particularly drawn to these ETFs for their potential to double or triple gains, despite the risk of amplified losses. Leveraged ETFs have seen around $9 billion in inflows this year, on track to surpass last year’s $10.2 billion. A leveraged Bitcoin ETF, trading under the ticker BITX, has accumulated nearly $2 billion in inflows this year, with gains of 50%.

The Road Ahead for Crypto ETFs

The introduction of new crypto ETFs, especially those based on Bitcoin and Ether, has created a buzz in the market. Asset managers are keen to explore new opportunities in the digital-asset space, despite the challenges posed by the regulatory environment. The success of these ETFs indicates strong investor interest and a potential shift in the market dynamics.

Investor Interest and Market Dynamics

The growing interest in crypto ETFs reflects a broader trend of increased investor interest in digital assets. As more traditional spot-crypto ETFs gain traction, we can expect to see a wave of new filings for crypto strategies. This trend is likely to continue as investors seek to diversify their portfolios with innovative financial products.

Conclusion

Wall Street’s ETF engine is in full swing, driven by the massive $17 billion Bitcoin haul and the successful debut of Ether ETFs. Asset managers are racing to introduce new crypto funds, while investors are eager to explore these new opportunities. Despite the challenges, the future of crypto ETFs looks promising, with continued growth and innovation on the horizon.

Bitcoin Investment Fund Opens Doors to EU Citizenship

A new investment fund is now offering Bitcoin holders a chance to become European Union (EU) citizens through Portugal’s golden visa program. This opportunity has been introduced by Alessandro Palombo, the co-founder and CEO of Unbound Fund.

Portuguese Citizenship Through Bitcoin Investment

In a recent post, Alessandro Palombo announced that their fund is the first to allow investors to gain Portuguese citizenship by investing in Bitcoin (BTC). According to Palombo, this unique opportunity is possible through Portugal’s Golden Residence Permit Program.

Investing in Bitcoin for EU Citizenship

To qualify for this program, investors need to indirectly hold Bitcoin worth 500,000 euros (about $542,000) through the Unbound Fund. This investment will make them eligible for the Portugal Golden Residence Permit Program. This program is a five-year residence-by-investment program designed for non-EU nationals.

How the Fund Works

Palombo explained that the fund invests in companies that have a 100% passive Bitcoin holding strategy. This means the fund is not trying to time the markets to sell BTC. Additionally, the fund will invest in BlackRock exchange-traded funds (ETFs) to ensure security and simplicity.

Palombo’s Vision for Bitcoin and Freedom

Palombo believes that using Bitcoin as a tool for gaining freedom of movement is mutually beneficial for both the investors and Portugal. He has chosen to live in Portugal with his family and thinks the European citizen-by-investment program is the best for technical and strategic reasons.

Current Success and Future Plans

Palombo mentioned that the fund has already onboarded several customers and is in talks with complementary teams to expand their services.

Bitcoin Price Surge

On July 22, Bitcoin’s price reached its highest level in 40 days, peaking at $68,518 on some platforms. Analysts attribute this nearly 20% increase in 10 days to the end of the German government’s Bitcoin sell-off and growing confidence in the US Federal Reserve cutting interest rates in 2024.

The Portugal Golden Residence Permit Program

The Portugal Golden Residence Permit Program, often called the Portugal Golden Visa Program, is a five-year residence-by-investment program for non-EU nationals. This program allows investors to live, work, and study in Portugal and move freely within Europe’s Schengen Area.

Benefits of the Portuguese Golden Visa

• Visa-free travel: Allows visa-free travel in Europe’s Schengen Area.
• Work and Study: Gives the right to live, work, and study in Portugal.
• Citizenship Eligibility: Investors can apply for citizenship after five years as legal residents while keeping their other citizenships.
• Low Physical Presence Requirement: Only requires an average of seven days per year stay in Portugal over this period.
• High Quality of Life: Portugal offers excellent international and Portuguese schools and universities, local cuisine, a mild climate, rich culture, and high-level security.
• Healthcare: Provides access to international quality healthcare clinics and hospitals.

Requirements for the Portugal Golden Visa

Applicants can choose from several investment options in different categories:

Capital Transfer Options

1. Investment Fund or Venture Capital: Invest 500,000 euros in a fund dedicated to the capitalization of Portuguese companies with a five-year maturity and at least 60% of the investment portfolio in companies headquartered in Portugal.
2. Scientific Research: Invest 500,000 euros in public or private research activities within Portugal’s national scientific and technological system.
3. Low Population Density Area: Invest 400,000 euros in a low population density area.
4. Cultural Support: Invest 250,000 euros in artistic production or the recovery/maintenance of national cultural heritage.
5. Low Population Density Cultural Support: Invest 200,000 euros in cultural projects within a low population density area.

Business Investment Options

1. Job Creation: Create a minimum of ten new jobs or eight new jobs in a low population density area.
2. Commercial Company Incorporation: Invest 500,000 euros in setting up a commercial company in Portugal that creates at least five permanent jobs for three years or increases the share capital of an existing company, maintaining at least ten jobs for three years.

Low Population Density Area Definition

A low population density area in Portugal is defined as having less than 100 inhabitants per square kilometer or a GDP per capita below 75% of the national average.

Procedures and Time Frame for the Golden Visa

After receiving the residence permit, applicants must provide biometric data and updated original documents at each renewal. The initial permit is typically issued for one year but has been extended to two years due to the Covid-19 pandemic. Subsequent renewals are for two-year periods.

Application Process

The application process involves two trips to Portugal:

1. Initial Trip: To choose the qualifying investment, start the legal process, and open a bank account.
2. Second Trip: To provide biometric data and original documents.

The entire process to acquire a Portuguese residence permit through investment can take over 18 months.

Why Choose Portugal for Bitcoin Investment?

Portugal is an attractive destination for Bitcoin investment due to its favorable climate, rich culture, and strategic location in Europe. The country offers a high quality of life with excellent education and healthcare systems. The Golden Visa Program also provides a pathway to EU citizenship, making it a desirable option for investors looking to expand their opportunities in Europe.

Conclusion

The Unbound Fund, led by Alessandro Palombo, offers a groundbreaking opportunity for Bitcoin holders to gain EU citizenship through Portugal’s golden visa program. By investing in Bitcoin and meeting the program’s requirements, investors can enjoy the benefits of living, working, and traveling freely within the European Union. With the rising value of Bitcoin and the strategic advantages of the Portuguese Golden Visa Program, this initiative presents a unique and attractive investment avenue for non-EU nationals.

Ferrari Extends Cryptocurrency Payments to Europe After US Launch

Introduction

Ferrari announced on Wednesday that it would expand its cryptocurrency payment system to Europe. This follows the successful launch of the system in the United States last year. Starting at the end of this month, European dealers will begin accepting payments in cryptocurrency for Ferrari’s luxury sports cars. The Italian company plans to extend this scheme to other international dealers by the end of 2024, provided cryptocurrencies are legally accepted in those countries.

Expanding to Europe

Ferrari’s decision to expand its cryptocurrency payment system to Europe comes after a successful run in the United States. The company aims to support its European dealers in better addressing the evolving needs of their wealthy customers. According to Ferrari, most of its dealers in Europe have either already adopted the new payment system or are in the process of doing so.

The US Launch

Ferrari started accepting cryptocurrency payments in the United States last year. Despite the volatility of cryptocurrencies like Bitcoin and Ether, Ferrari responded to requests from its wealthy customers who preferred using digital currencies. For this launch, Ferrari partnered with BitPay, one of the biggest cryptocurrency payment processors. BitPay facilitated transactions in Bitcoin, Ether, and USDC, a stablecoin. This partnership ensured that cryptocurrency payments were immediately converted into traditional currency, protecting Ferrari dealers from price swings and excluding fees or surcharges for clients.

Cryptocurrency and Luxury Cars

While many blue-chip companies have avoided cryptocurrencies due to their volatility, Ferrari took a different approach. By accepting cryptocurrencies, Ferrari met the demands of its affluent clientele. This move highlights how luxury car manufacturers can adapt to changing market dynamics and customer preferences. As cryptocurrencies gain more acceptance, it’s likely that other high-end brands might follow Ferrari’s lead.

Challenges of Cryptocurrency Payments

Despite the advantages, there are challenges associated with using cryptocurrencies for payments. One major issue is the patchy regulation of digital currencies across different countries. For instance, countries like China have restricted the use of cryptocurrencies. Additionally, the high energy usage required for cryptocurrency transactions has also been a deterrent.

BitPay Partnership

BitPay played a crucial role in Ferrari’s cryptocurrency payment system. As a leading cryptocurrency payment processor, BitPay allowed Ferrari to handle transactions smoothly. By converting cryptocurrency payments into traditional currency, BitPay protected Ferrari dealers from the volatility of digital currencies. This partnership also ensured that clients were not charged additional fees or surcharges, making it easier for them to use cryptocurrencies for purchasing Ferrari cars.

Future Plans

Ferrari plans to expand its cryptocurrency payment system to other parts of the world by the end of 2024. However, this expansion will depend on the legal acceptance of cryptocurrencies in these regions. Ferrari has not yet provided details on whether it will continue to use BitPay or partner with other payment processors in Europe and other regions.

Addressing Customer Needs

Ferrari’s decision to accept cryptocurrency payments is a response to the evolving needs of its customers. Many wealthy clients prefer using digital currencies for transactions, and Ferrari aims to cater to these preferences. By offering an alternative payment system, Ferrari provides its clients with more flexibility and convenience.

Legal and Regulatory Aspects

The legal acceptance of cryptocurrencies varies from country to country. In some regions, digital currencies are widely accepted, while in others, they face significant restrictions. Ferrari’s expansion plan will take these legal and regulatory aspects into account. The company aims to ensure that it complies with all relevant laws and regulations in the countries where it operates.

Energy Consumption Concerns

High energy usage is another concern associated with cryptocurrency transactions. The process of mining and verifying transactions requires substantial computational power, which translates to high energy consumption. This has raised environmental concerns, which Ferrari will need to address as it expands its cryptocurrency payment system.

Conclusion

Ferrari’s decision to extend its cryptocurrency payment system to Europe marks an important step in the luxury car market. By embracing digital currencies, Ferrari caters to the preferences of its affluent clients and stays ahead of market trends. The partnership with BitPay has been instrumental in ensuring smooth transactions and protecting dealers from cryptocurrency volatility. As Ferrari looks to expand this system globally, it will need to navigate various legal, regulatory, and environmental challenges. However, by addressing these issues, Ferrari can continue to offer innovative solutions to its customers and maintain its position as a leader in the luxury car industry.

Kraken Distributes Bitcoin and Bitcoin Cash to Mt. Gox Creditors

On Tuesday, Kraken CEO Dave Ripley announced that Kraken had “successfully distributed” Bitcoin and Bitcoin Cash to customers affected by the Mt. Gox hack nearly a decade ago. Ripley said, “It’s been nearly a decade since Kraken was selected by the Trustee to facilitate the investigation and return of client funds. It was our privilege and it was our duty.”

History of the Mt. Gox Hack

Mt. Gox was once the largest cryptocurrency exchange in the world, handling over 70% of all Bitcoin transactions globally. However, in February 2014, hackers stole 850,000 Bitcoin, leading to the exchange filing for bankruptcy. At today’s rates, that stolen Bitcoin would be worth $56 billion. The Mt. Gox hack was one of the most significant events in the cryptocurrency industry’s history, causing widespread shock and financial loss to thousands of investors.

Kraken’s Role in the Recovery

Kraken was one of five exchanges selected to help return funds to some of the 127,000 creditors impacted by the Mt. Gox collapse. Kraken CEO Dave Ripley emphasized the responsibility Kraken felt in assisting with the recovery process. “It’s been nearly a decade since Kraken was selected by the Trustee to facilitate the investigation and return of client funds. It was our privilege and it was our duty.”

The Distribution Process

The distribution process involved returning Bitcoin and Bitcoin Cash to the rightful owners. While Kraken did not specify the total amount returned to Mt. Gox customers, their involvement marked a significant step in resolving one of the cryptocurrency industry’s most prolonged sagas. Alongside Kraken, other exchanges like Bitstamp, SBI VC Trade, Bitbank, and Coincheck were also involved in the distribution effort.

Amounts Distributed and Remaining

Blockchain analytics firm Arkham Intelligence reported that the Mt. Gox estate had started transferring $2.85 billion worth of Bitcoin to new wallets. Of this amount, $340 million was transferred to four separate addresses owned by Bitstamp. Arkham also noted that the Mt. Gox estate still holds approximately 85,234 BTC, valued at $5.7 billion.

Current Status of Funds

Creditors of Mt. Gox are awaiting more than $7 billion in Bitcoin, Bitcoin Cash, and fiat currency from various entities responsible for mediating the fund distribution process. The exact timeline for when creditors will receive their funds from these exchanges remains unclear, as none have provided comments on the matter.

The Involvement of Other Exchanges

Besides Kraken, the other exchanges involved in this effort include Bitstamp, SBI VC Trade, Bitbank, and Coincheck. These exchanges were selected to assist in returning funds to the creditors affected by the 2014 collapse. Each exchange has played a crucial role in ensuring that the distribution process is as smooth and efficient as possible.

The Significance of Kraken’s Involvement

Kraken’s involvement in the Mt. Gox recovery process highlights its commitment to the cryptocurrency community. By taking on the responsibility of distributing Bitcoin and Bitcoin Cash, Kraken has demonstrated its dedication to helping investors recover their lost assets. This move has also helped strengthen Kraken’s reputation as a reliable and trustworthy exchange in the cryptocurrency industry.

Challenges in the Distribution Process

The distribution process has not been without challenges. The sheer volume of funds to be returned and the complexity of tracking and verifying claims have made the process lengthy and intricate. Despite these challenges, Kraken and the other involved exchanges have worked diligently to ensure that creditors receive their due funds.

Future Outlook for Mt. Gox Creditors

The future remains uncertain for Mt. Gox creditors. While significant progress has been made in the distribution of funds, there is still a long way to go. Creditors continue to wait for the remaining Bitcoin and Bitcoin Cash to be distributed, and the timeline for this process is still unclear. However, the involvement of exchanges like Kraken provides hope that the recovery process will eventually be completed.

Conclusion

The distribution of Bitcoin and Bitcoin Cash to Mt. Gox creditors marks a major milestone in the recovery process following the 2014 hack. Kraken’s role in this effort underscores its commitment to the cryptocurrency community and its dedication to helping investors recover their lost assets. While challenges remain, the progress made so far is a positive sign for the future of Mt. Gox creditors. As the recovery process continues, the involvement of reliable exchanges like Kraken will be crucial in ensuring that all creditors receive their due funds.

Introduction to Cryptocurrency and Money

Cryptocurrency is a new kind of technology and financial tool. While it shares some features of money, it feels different. Some experts call cryptocurrencies “money,” but is that correct? Can we truly call cryptocurrencies money? Are they different enough from traditional money that we need to change what we think money is?

What is Money?

Before we decide if cryptocurrencies are money, we need to understand what money is. Money has certain properties that make it useful. Here are the main properties of money:

• Medium of Exchange
• Unit of Account
• Portable
• Divisible
• Durable
• Fungible
• Store of Value
• Relative Scarcity

Medium of Exchange

Money must be easy to exchange for goods and services.

Unit of Account

Money must help us compare the value of different goods and services.

Portable

Money needs to be easy to carry and move.

Divisible

Money should be easy to divide into smaller parts.

Durable

Money must last a long time without getting damaged.

Fungible

One unit of money should be the same as another unit of money.

Store of Value

Money should keep its value over time.

Relative Scarcity

Money should not be too common; there should be a limited supply.

How These Properties Came to Be

These properties were discovered over thousands of years through billions of trades. Merchants realized these properties were necessary for smooth trading. Removing even one property made trade harder. This is why gold and silver have been used as money for so long.

In the past, people used many different forms of currency. Through experience, they learned which properties were best for trading value. Over time, gold and silver became the most common forms of money because they had all these properties. Other metals like copper are used too, but mainly for very small transactions.

Key Takeaway

For something to be money, it must have all these properties. If it lacks even one property, it is not money. This is important to remember when we talk about digital money.

Cryptocurrency and Traditional Money Properties

Now, let’s look at whether these properties apply to digital money, like cryptocurrencies. Here are the properties of money again:

• Medium of Exchange
• Unit of Account
• Portable
• Divisible
• Durable
• Fungible
• Store of Value
• Relative Scarcity

Applying Traditional Money Properties to Digital Assets

Do these properties apply to digital transactions? The answer is yes. All these properties are important for digital money too.

Portable

A digital asset must be portable to allow for quick and easy transactions.

Divisible

A digital asset must be divisible. Otherwise, it would be like a collectible, not money.

Durable

A digital asset must be durable, meaning it should be secure from hackers and government interference.

Fungible

A digital asset must be fungible. One unit of the digital asset should be the same as another unit.

Unit of Account

A digital asset must serve as a unit of account to assign value to goods and services.

Medium of Exchange

A digital asset must be a good medium of exchange to facilitate transactions of any size.

Relative Scarcity

A digital asset must be relatively scarce to protect its long-term value.

Store of Value

A digital asset must be a good store of value, keeping its value over time and space.

Exploring Digital Monetary Properties

There are over 20,000 cryptocurrencies today. What makes a cryptocurrency? Simply put, a cryptocurrency is a currency used to pay for goods and services. Its defining feature is that it’s digital and not controlled by any single party.

Decentralization

Decentralization means no single party controls the cryptocurrency network. No one controls the issuance of the assets, and no single party can influence the network. This is important for security and trust in digital money. In an adversarial environment, decentralization protects the network from attacks.

Privacy

Privacy is crucial for digital money. Without privacy, digital coins can be tracked and traced, compromising their fungibility. Cryptocurrencies with public ledgers, like Bitcoin, lack privacy, making each coin’s history unique. This means 1 Bitcoin is not the same as another Bitcoin. Privacy ensures that digital coins remain fungible.

Scalability

Scalability refers to the ability of a network to handle increased demand. If a network cannot scale, transaction fees can skyrocket, making it unusable for small transactions. For a digital asset to be a good medium of exchange, it must be scalable. Some cryptocurrencies, like Bitcoin Cash and Monero, have shown they can scale while keeping fees low.

Absolute Scarcity

Absolute scarcity means there is a fixed supply of the cryptocurrency. Bitcoin, for example, has a fixed supply of 21 million coins. While this makes the asset more valuable over time, it may not be practical for everyday transactions. An asset with a fixed supply can experience extreme deflation, making it difficult for merchants to price goods and services.

Programmability

Programmability allows for the creation of smart contracts and decentralized applications on the blockchain. While this is a fascinating feature, it is not necessary for a digital asset to be considered money.

Conclusion

In summary, cryptocurrencies need to have the properties of traditional money to be considered as such. These properties include being a medium of exchange, unit of account, portable, divisible, durable, fungible, store of value, and relatively scarce. Additionally, for digital money, decentralization, privacy, and scalability are crucial.

While many cryptocurrencies exist, only a few, like Monero, have the necessary properties to function as money in the long term. Understanding these properties helps us see how digital assets can fit into the future of finance.

Bitcoin gains: What Has Driven the 17% Weekly Surge?

Bitcoin has seen a significant increase, gaining around 17% in just one week. This rise translates to about $9,000 more in value over the past seven days. Last weekend, Bitcoin was trading below $60,000. However, by July 22, it surged to a six-week high, exceeding $68,000. Let’s explore what has been driving this market momentum and whether it will continue.

Bitcoin Is Back

On July 22, industry research firm 10x Research provided several reasons for Bitcoin’s big price pump. Firstly, there has been a shift in market sentiment. When Bitcoin broke above a key level at $61,133, it changed the narrative from bearish to bullish. This shift encouraged more investors to buy Bitcoin, pushing its price higher.

Retail trading has also played a significant role. Many retail investors bought Bitcoin over the weekend, driving the price up. This weekend alone, Bitcoin gained more than 6%. By Monday morning in Asia, it had reached a multi-week high of $68,480.

Another factor contributing to Bitcoin’s surge is the change in market liquidity. After four weeks of net liquidity outflows totaling $8 billion, the crypto markets saw $3.3 billion in inflows last week. This influx, mainly from futures, stablecoins, and spot Bitcoin ETFs, marked a positive trend change. Last week, spot Bitcoin ETFs had about $1.24 billion in inflows over five trading days.

Influence of Spot Ethereum ETF

The hype around spot Ethereum ETFs has also contributed to market gains. These ETFs are set to begin trading on July 23. Although Ethereum’s price has only managed to gain 4.5% over the past week, it still adds to the overall positive sentiment in the crypto market.

Global Market Influences

There have been rumors that China might adopt a more favorable stance on cryptocurrencies. Hong Kong’s new crypto regulations are seen as a test for this potential shift. Additionally, South Korea has proposed postponing crypto taxation until 2028, which has spurred speculative trading and boosted the market.

Impact of Inflation Data

Lower-than-expected Consumer Price Index (CPI) inflation data last week set a floor for Bitcoin prices. This data followed a 20% peak-to-trough decline, helping stabilize Bitcoin’s price. This week, the release of Personal Consumption Expenditures (PCE) inflation reports could provide further bullish momentum.

U.S. Politics and Crypto Market

U.S. politics have also influenced the crypto market. A failed assassination attempt on Donald Trump and President Joe Biden stepping down from the election race have further bolstered crypto market sentiment. Rumors are circulating that the Securities and Exchange Commission (SEC) may settle a major case soon. Additionally, former President Trump is set to deliver a highly anticipated speech in Nashville, where he might announce Bitcoin as a strategic reserve asset. This announcement could trigger a parabolic rise in Bitcoin’s price.

Bullish Week Ahead?

Markus Thielen, head of research at 10x Research, stated that this week could see more momentum. He pointed out that rumors are rife about the SEC settling a significant case. Moreover, former President Trump’s upcoming speech might contain major news for Bitcoin, potentially driving its price even higher.

Retail Trading Impact

Retail investors have been crucial in driving Bitcoin’s recent price surge. Their weekend trading activities have led to significant gains that carry into the following week. This pattern was evident this weekend when Bitcoin gained over 6% from Friday to Monday.

Market Liquidity Inflows

The inflow of liquidity into the crypto market is another key factor. After several weeks of outflows, last week saw a positive change with $3.3 billion in inflows. These inflows came primarily from futures, stablecoins, and spot Bitcoin ETFs, marking a shift in market trends.

Spot Bitcoin ETFs

Spot Bitcoin ETFs have had a substantial impact on the market. Last week alone, these ETFs saw $1.24 billion in inflows. This influx of funds into Bitcoin ETFs indicates strong investor confidence and contributes to the overall price surge.

Spot Ethereum ETF Hype

The anticipation around spot Ethereum ETFs has also played a role in boosting the crypto market. Although Ethereum’s gains have lagged behind Bitcoin, the positive sentiment surrounding the ETF launch has had a beneficial effect on the market.

China’s Potential Crypto Adoption

There are rumors that China might adopt a more favorable stance towards cryptocurrencies. This speculation has been fueled by Hong Kong’s new crypto regulations, which are seen as a potential test for broader adoption in China.

South Korea’s Crypto Tax Postponement

In South Korea, a proposed postponement of crypto taxation until 2028 has spurred speculative trading. This news has positively impacted the market, contributing to Bitcoin’s price surge.

Influence of Inflation Data

Lower-than-expected CPI inflation data last week helped stabilize Bitcoin prices. This week, the release of PCE inflation reports could provide further bullish momentum, potentially driving Bitcoin prices higher.

U.S. Politics

U.S. political events have also influenced the crypto market. A failed assassination attempt on Donald Trump and President Joe Biden stepping down from the election race have added to the positive sentiment. Additionally, rumors about the SEC settling a major case and Trump’s upcoming speech in Nashville could further boost Bitcoin’s price.

Conclusion

Bitcoin’s recent price surge to over $68,000 has been driven by a combination of factors, including market sentiment shifts, retail trading, liquidity inflows, and global market influences. The anticipation around spot Bitcoin and Ethereum ETFs, along with potential changes in crypto regulations in China and South Korea, have also played significant roles. Additionally, U.S. political events and inflation data have impacted the market. As these factors continue to evolve, the crypto market could see further momentum in the coming weeks.

Bitcoin National Reserve Proposal Sparks Bold $1 Million Predictions

There has been a surge of interest and discussion surrounding Bitcoin lately. A notable figure in the cryptocurrency world, Andrew Kang, has proposed that Bitcoin could potentially be recognized as a national asset. This idea has ignited conversations within the crypto community, with enthusiasts debating its global implications and setting ambitious price targets for Bitcoin.

From Speculation to Advocacy

Andrew Kang’s recent analysis has stirred significant debate. In a widely circulated post, Kang revealed that discussions are taking place among leaders about the possibility of incorporating Bitcoin into national treasury reserves. Although these discussions remain speculative, they highlight the significant potential Bitcoin holds, which could lead to major benefits for some, albeit not for everyone.

Kang believes these discussions point to Bitcoin’s untapped potential, even if they don’t lead to immediate action. Should Bitcoin become a national treasury asset, Kang predicts its value could skyrocket to $1 million. He notes that Bitcoin’s current market capitalization is significantly undervalued, even considering a modest probability of 5-10%. This undervaluation is especially noteworthy given the recent increase in Bitcoin interest from less than 1%.

A Global Ripple Effect

The concept of the US adopting Bitcoin as a reserve currency is groundbreaking. Kang asserts that if the US were to embrace Bitcoin in this way, it would likely prompt other nations to follow. This would not only validate Bitcoin as a reliable store of value but also expedite its adoption in international financial markets.

Adding to the optimism are rumors that a major Asian company may soon take on roles akin to those of Coinbase and MicroStrategy. Such a development would enhance Bitcoin’s image and encourage more businesses to invest in the cryptocurrency market.

Kang points to the rapid succession of these positive developments, suggesting that the next few months will be pivotal for Bitcoin and its proponents. With potential government endorsement, broader adoption, and increasing corporate interest, Bitcoin could be on the verge of a new era.

Navigating Benefits and Risks

While the potential benefits of Bitcoin as a national asset are significant, the implementation poses substantial challenges. If the US government were to recognize Bitcoin, it could bolster its position as a global financial leader, particularly against rivals like China and Russia. This move could drive innovation, attract blockchain technology experts, and lead to the establishment of a robust regulatory framework that enhances the security of cryptocurrency transactions and promotes wider adoption.

However, the risks are considerable. Bitcoin’s notorious volatility presents a significant threat to economic stability. A sudden drop in Bitcoin’s value could disrupt the economy and complicate monetary policy management.

Policymakers would need to carefully balance the drive for innovation with the need for a secure and stable financial system. Incorporating Bitcoin as a strategic reserve asset could greatly enhance its credibility in the financial sector, but this must be carefully weighed against potential economic risks and consumer protection concerns.

The Path Forward

The ongoing discussions about Bitcoin potentially becoming a national asset highlight its increasing recognition and transformative potential in global finance. With ambitious price targets and the possibility of setting a global precedent, Bitcoin stands on the brink of a significant shift.

However, the journey ahead will be complex and requires careful strategizing. The coming months will be critical in determining whether Bitcoin will solidify its role in national financial systems or remain a speculative asset with untapped potential.

In summary, Andrew Kang’s proposal that Bitcoin could be recognized as a national asset has sparked bold predictions and lively discussions within the cryptocurrency community. With the potential for Bitcoin to become a national treasury asset, its value could skyrocket to $1 million. The idea of the US adopting Bitcoin as a reserve currency could have a global ripple effect, prompting other nations to follow and validating Bitcoin as a reliable store of value.

However, while the benefits of Bitcoin as a national asset are significant, the risks are considerable. Policymakers must carefully balance the drive for innovation with the need for a secure and stable financial system. The journey ahead will be complex and requires careful strategizing. The next few months will be critical in determining whether Bitcoin will solidify its role in national financial systems or remain a speculative asset with untapped potential.

With potential government endorsement, broader adoption, and increasing corporate interest, Bitcoin could be on the verge of a new era. The ongoing discussions about Bitcoin potentially becoming a national asset highlight its increasing recognition and transformative potential in global finance. The future of Bitcoin as a national asset is still uncertain, but the possibilities are exciting.

Andrew Kang’s proposal has stirred significant debate, highlighting the significant potential Bitcoin holds. The concept of the US adopting Bitcoin as a reserve currency is groundbreaking and could have a global ripple effect. The potential benefits of Bitcoin as a national asset are significant, but the risks are considerable. Policymakers must carefully balance the drive for innovation with the need for a secure and stable financial system.

In conclusion, the journey ahead for Bitcoin as a national asset will be complex and requires careful strategizing. The next few months will be critical in determining whether Bitcoin will solidify its role in national financial systems or remain a speculative asset with untapped potential. The future of Bitcoin as a national asset is still uncertain, but the possibilities are exciting.