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.