Bitcoin, the leading cryptocurrency, has surged past $65,000, marking a significant milestone in the digital asset market. This rise comes as Chinese stocks rebounded, ending the day on a positive note despite mixed reactions to the government’s stimulus plans. Bitcoin traded near $64,900 during the late European morning, showing a 3.4% increase in the last 24 hours. The broader cryptocurrency market, measured by the CoinDesk 20 Index, also saw a rise of about 2.9%.

The Shanghai Composite Index closed over 2% higher, even though the latest announcements from the Chinese government fell short of market expectations. Finance Minister Lan Fo’an promised new measures to support the property sector and hinted at greater government borrowing during a Saturday briefing. These developments seem to have influenced global markets, including digital assets like Bitcoin.

China’s economy plays a crucial role in global financial markets. The government’s stimulus plans aimed to boost the property sector, which has been facing challenges. Although the measures did not fully meet investor expectations, the positive closing of the Shanghai Composite Index indicates some level of confidence. Bitcoin’s price movement appears connected to these developments.

The rebound in Chinese equities suggests that investors are optimistic about economic support measures, which may spill over into the cryptocurrency market. Risk sentiment remains high, with investors willing to “buy everything” until further notice. Bitcoin’s surge past $65,000 amid the Chinese stock market rebound highlights this trend.

This week, the cryptocurrency market is preparing for the release of nearly $500 million worth of various tokens. Such large token unlocks can create downward pressure on prices due to increased supply. Over $80 million in Worldcoin’s WLD, $51 million in Arbitrum’s ARB, and nearly $40 million each of EigenLayer’s EIGEN and Axie Infinity’s AXS are set to be released. Solana’s SOL will also see $80 million worth unlocked as part of an ongoing linear emission plan, where tokens are gradually introduced to the market.

Investors often anticipate that recipients of unlocked tokens might sell them, leading to a preemptive sell-off. However, if the market views the unlocks as a sign of project progress or expects the tokens to be used for staking governance, prices might stay stable or even increase due to positive sentiment. The market’s ability to absorb these tokens will play a key role in determining price stability.

While serious crypto sectors like layer-2 solutions and storage tokens experience low market volatility, interest in memecoins is on the rise. Memecoins are cryptocurrencies often created as a joke or based on internet memes but can gain significant popularity and value. This interest comes amid rising negative sentiment around tokens backed by venture capital funds.

Venture capital-backed tokens are increasingly seen as overpriced and a bad bet for retail traders. Retail investors may feel that these tokens are inaccessible or not offering fair value. As a result, some traders are turning to memecoins, which they see as having the potential for quick gains despite their higher risk.

Industry experts are weighing in on Bitcoin’s recent movements. Augustine Fan, head of insights at SOFA, shared his perspective on the situation. “Bitcoin prices jumped this morning to above $64K as Chinese equities rebounded off the weekend disappointments,” Fan told CoinDesk in a Telegram message. “Risk sentiment will likely remain in ‘buy everything’ mode until further notice.”

Fan also mentioned the impact of the upcoming U.S. elections on Bitcoin’s trajectory. “A strong BTC inflow on Friday might be a positive sign as we head into the final weeks of the election campaign,” he said. “But patience will be required before we can reach new all-time highs anytime soon.” The U.S. elections, scheduled for November 5, could influence market dynamics as investors consider potential policy changes.

The United States released firmer economic data last week, with both the Consumer Price Index (CPI) and Producer Price Index (PPI) showing stronger numbers. These indicators measure inflation at the consumer and producer levels, respectively. Initially, markets were uncertain about the impact of this data. However, they ultimately decided that the core inflation trend remains intact.

The curve steepening move continued, reflecting expectations of future economic growth and inflation. In bond markets, a steepening yield curve suggests that investors expect higher interest rates in the future due to economic expansion. This scenario can influence investment strategies across various asset classes, including cryptocurrencies.

U.S. equities reached new all-time highs, with high beta names and the dollar breaking out further. High beta stocks are more volatile and tend to outperform in rising markets. The strong performance of these stocks indicates increased risk appetite among investors.

Market participants are closely watching the Federal Reserve’s actions. There is an over 85% chance of a 25 basis point rate cut by the Federal Reserve in December, according to market expectations. A basis point is one-hundredth of a percentage point, so a 25 basis point cut would reduce interest rates by 0.25%.

Lower interest rates can lead to increased investment in riskier assets, as investors seek higher returns than what is available from traditional savings or fixed-income products. This dynamic can benefit cryptocurrencies like Bitcoin, as they become more attractive in a low-interest-rate environment.

The Federal Reserve’s decisions are influenced by factors like inflation trends and economic data. If core inflation remains stable, the central bank may opt to cut rates to support economic growth. Investors are factoring these possibilities into their strategies, which can impact cryptocurrency markets.

The upcoming U.S. elections on November 5 are another factor that could affect Bitcoin’s price trajectory. Political events often lead to uncertainty in financial markets, as policy changes can impact economic conditions. Investors may adjust their portfolios in anticipation of potential shifts in regulations, taxes, or government spending.

Bitcoin and other digital assets have sometimes been influenced by regulatory developments. Depending on the election outcomes, there could be changes in how cryptocurrencies are regulated in the U.S. This uncertainty may cause investors to be cautious or, conversely, to seek opportunities in anticipation of favorable outcomes.

Global economic developments continue to shape market sentiment. China’s property sector support measures and the rebound in Chinese equities demonstrate the interconnectedness of global markets. Investors are monitoring these developments to inform their decisions.

Meanwhile, the negative sentiment around venture capital-backed tokens highlights the importance of market perception. Retail traders are wary of tokens they perceive as overpriced or risky, leading them to explore alternatives like memecoins. This shift in interest underscores the dynamic nature of the cryptocurrency market.

Bitcoin’s rise past $65,000 reflects a combination of factors, including Chinese stock market rebounds, upcoming token unlocks, interest in alternative cryptocurrencies, and global economic data. The interplay between traditional financial markets and the cryptocurrency space continues to evolve. As investors navigate these developments, staying informed and understanding market dynamics become ever more crucial.

World’s Most Crypto-Friendly Countries in 2024

Cryptocurrency is changing how we think about money and investments. Many countries see the potential in digital assets and are creating rules to attract crypto businesses. In 2024, some nations stand out for welcoming crypto startups and making it easy for them to grow.

Dubai

Dubai is leading the way as a top spot for crypto businesses. The city has clear and supportive laws for cryptocurrency regulation. The Dubai Multi Commodities Centre (DMCC) and the Virtual Asset Regulatory Authority (VARA) oversee crypto companies. Businesses must register with these financial authorities to operate.

One big draw is that there is no capital gains tax on digital assets. The corporate tax rate is only 9% for income above AED 375,000. This low corporate tax rate makes Dubai a great place for crypto startups. Over 550 registered crypto companies are already there, showing strong crypto adoption.

Switzerland

Switzerland is another country that supports crypto ventures. The Swiss Financial Market Supervisory Authority (FINMA) provides clear crypto regulations. In places like Zug, known as “Crypto Valley,” blockchain technology thrives. Companies must register with FINMA to operate.

The capital gains tax is 7.8%, which is reasonable. Corporate tax rates range from 12% to 21%. With over 900 registered crypto companies, Switzerland is a global crypto hub. Many businesses accept crypto payments, boosting the crypto market.

South Korea

South Korea is becoming a hotspot for crypto businesses. The Korea Financial Intelligence Unit (KFIU) regulates crypto service providers. While crypto laws are still developing, the country shows strong support for digital assets.

There is currently no capital gains tax on cryptocurrency. Corporate tax has been postponed until 2025. Over 376 registered crypto companies operate there. South Korea’s crypto sector is growing fast, making it a key player in Asia.

Singapore

Singapore is a major hub for crypto startups. The Monetary Authority of Singapore (MAS) oversees cryptocurrency regulation. Companies need a license from MAS to start a crypto business.

There is no capital gains tax, and the corporate tax rate is a flat 17%. Singapore supports blockchain technology development, offering blockchain grants totaling $8.9 million. With over 100 registered crypto companies, the country leads in Southeast Asia’s crypto business environment.

USA

The USA has widespread crypto adoption. Over 5,000 businesses accept cryptocurrency payments across various industries. Regulatory clarity varies by state, with financial authorities like the Securities and Exchange Commission (SEC) and the Financial Crimes Enforcement Network (FinCEN) involved.

There is no federal capital gains tax on crypto, but state taxes may apply. The corporate income tax rate is 21%. With 474 registered crypto companies, the USA remains a major player in the crypto industry. Some states offer crypto-friendly regulations, like sandbox programs for blockchain ventures.

Estonia

Estonia is known for its digital transformations and support for blockchain applications. The Financial Supervisory Authority (EFSA) regulates crypto companies. Strict Anti-Money Laundering (AML) laws have led to fewer licensed crypto startups.

The capital gains tax is 20%, and the corporate tax rate is also 20%. Despite stricter crypto regulations, Estonia remains attractive due to its supportive crypto business conditions.

Italy

Italy is welcoming to crypto service providers. The Ministry of Economy and Finance (MEF) and the Italian Securities and Exchange Commission (CONSOB) oversee cryptocurrency regulation. The country is adapting to the European Union’s Markets in Crypto-Assets Regulation (MiCA).

The capital gains tax is 26%, and the corporate tax rate is 24%. With 73 registered crypto companies, Italy offers a supportive environment for crypto businesses.

Russia

Russia recognizes cryptocurrency as legal currency. The Central Bank of Russia (CBR) regulates the crypto market. There is no capital gains tax, and the corporate tax rate is 20%.

Over 70 registered crypto companies operate in Russia. Many businesses accept crypto payments, simplifying transactions for crypto companies. The country’s tax policies make it appealing for crypto ventures.

Germany

Germany supports blockchain technology and cryptocurrency transactions. The Federal Financial Supervisory Authority (BaFin) provides clear crypto regulations. Companies must obtain a crypto license to operate.

There is no long-term capital gains tax on cryptocurrency. Short-term capital gains tax ranges from 0% to 45%, depending on the gains. Corporate tax rates range from 15% to 30%. With over 300 registered crypto companies, Germany fosters a strong crypto business environment.

Brazil

Brazil is developing its crypto regulatory framework. The Central Bank of Brazil oversees cryptocurrency regulation. Crypto laws are still forming, offering less restrictive conditions for startups.

The capital gains tax ranges from 15% to 22.5%. Corporate tax rates vary from 0% to 27.5%. With 19 registered crypto companies, Brazil is making strides in the crypto sector despite higher tax rates.

Cryptocurrency continues to reshape the global economy. Countries are crafting crypto-friendly regulations to attract businesses and boost economic growth. From Dubai’s clear crypto laws to Switzerland’s supportive environment, these nations lead in fostering crypto business growth. Whether it’s low capital gains tax or favorable corporate tax rates, these countries offer conditions that help crypto startups thrive. As the crypto industry develops, more nations may join this list, further expanding opportunities for crypto ventures worldwide.

Tokyo-based Metaplanet has just acquired another $6.5 million worth of Bitcoin to add 108.999 BTC to its ever-expanding hoard. This puts the group’s total BTC number at 748.502 BTC – quite a serious long-term investment in the cryptocurrency. Metaplanet has been accumulating its Bitcoin reserves since April 2024 and maintains the latest purchase is part of its ongoing strategy to buy more Bitcoin, having taken advantage of specific market conditions.

However, the thing to note here is that Metaplanet isn’t directly buying Bitcoin. It does this through a strategy whereby it sells put options with its purchases of the cryptocurrency. Put options give the company a right to sell Bitcoin at a specific price in the future. That means if Bitcoin’s price falls, Metaplanet is still able to sell at the higher price set in the option. According to Peter Chung of Presto Labs, the tactic reveals a layer of sophistication that is rare in companies buying up Bitcoin. In this way, it has enabled Metaplanet to potentially earn more from its investment in Bitcoin while reducing risk in case prices go down.

That places Metaplanet in a unique position among public companies, especially those in Asia, which have also started buying Bitcoin for their corporate treasuries. For instance, Nexon and Meitu are two of the other major regionals to do the same with the digital currency. But Metaplanet’s strategy deploys put options to give its strategy a layer of sophistication. According to Chung, the leadership views Bitcoin as part of its long-term strategy to deliver value to shareholders.

The timing of the most recent Metaplanet buys is interesting, too. It has taken advantage of the recent strength of the Japanese yen against the U.S. dollar. It buys Bitcoin when the yen is at a high level and thus gets more for the money. This could be one strategic move by the company to hedge its risks against short-term declines in the price of Bitcoin while it continues to build overall holdings.

This strategy has likened the firm to MicroStrategy of the United States, famous for holding a lot of Bitcoin. Like Metaplanet, it has taken Bitcoin in as an integral part of its corporate treasury. Indeed, when Metaplanet began buying Bitcoin at the beginning of the year, it even styled itself as “Asia’s answer to MicroStrategy.” It is in this comparison to MicroStrategy that best explains why Metaplanet seems keen on building its stockpile of Bitcoin. The same way that both companies share beliefs that holding Bitcoin will turn out to be a good investment in the long run.

The strong investments Metaplanet has made into Bitcoin are beginning to have an apparent effect on the movement of its stock. It surged from ¥190 to the peak of ¥1,008 after the company first announced its Bitcoin buying spree in April. That surge pretty much reflected how much investors have faith in the company’s strategy with Bitcoin. Since then, however, it has cooled down a bit and is sitting at around $6.40. Although the stock has come off its peak, it is still substantially higher than before the company began buying Bitcoin.

The aggressive Bitcoin buying spree by the company forms part of a broader trend of businesses investing in cryptocurrency as a means of diversifying their holdings. For example, Tesla made waves last year when it announced that it had purchased $1.5 billion worth of Bitcoin. Since then, Tesla has sold some of its Bitcoin to take profits, but the move marked a turning point for corporate adoption of cryptocurrencies. In another case, Square-which has since renamed itself Block Inc.-has also woven Bitcoin deeply into its strategy: it bought $50 million of the cryptocurrency in 2020, and another $170 million in 2021.

Companies like Metaplanet, Tesla, and Block are in good company in a growing legion of companies that look at Bitcoin as a fundamentally sound asset to hold for the future. Changes in the corporate mindset toward cryptocurrencies come at a time when more and more investors, especially the younger variety, are opting to place their money in digital assets instead of traditional stock-and-bond investments. A recent study by Charles Schwab shows that a whopping 62% of millennials are planning to invest in cryptocurrencies next year. That number is a pretty big turnaround compared to the older generation, which still tends to prefer stocks and bonds.

This is a trend that might just keep going and going, as millennials inherit more and more from their parents and grandparents. An estimated $84 trillion is set to be transferred over the coming decade, and nearly $20 trillion of that could flow into Bitcoin and other cryptocurrencies. This might be the perfect storm that dictates how future crypto markets will look: young people are way more interested in digital assets than physical ones.

Even financial giants like BlackRock started to pay more attention to the fact that Bitcoin moves upwards. This January, BlackRock, one of the biggest asset managers in the world, released a Bitcoin ETF despite its CEO, Larry Fink, having once called Bitcoin a money-laundering tool. For now, it has performed quite well and brought in $22 billion since the start. The implication of this is that even traditional financial players are starting to view Bitcoin as an asset class.

He even said that “Bitcoin” is one of the most searched terms on BlackRock’s website, further putting into light how interest in the cryptocurrency keeps growing. Fidelity, another huge asset manager, also joined the Bitcoin bandwagon by promoting blockchain education to the younger generation through social media platforms like TikTok and X. Fidelity has invested more than $10 billion in its Bitcoin ETF, making the company another big player in the growing market for crypto investments.

Such a decision by Metaplanet is clearly part of a wide trend, where companies and investors began using digital cryptocurrencies as a hedge against losses in value appreciation. In general, if more businesses and financial institutions are using Bitcoin, then the demand for the cryptocurrency will continue to surge. It is in the way Metaplanet uniquely combines buying Bitcoin with puts that may give it just the edge it needs to realize returns even in a bear market.

Much of this demand is being driven by millennials and younger investors who continue to choose cryptocurrencies over traditional assets. As the great wealth transfer unfolds over the next decade, that trend is likely to accelerate, with more money flowing into Bitcoin and other digital assets. That’s where Metaplanet is positioning itself for full advantage, betting big on Bitcoin being a key part of the financial future.

Peter Schiff recently took to social media to weigh in on the U.S. government’s decision to sell a large amount of Bitcoin. The government plans to sell 69,370 Bitcoins worth around $4.3 billion, which were seized from the Silk Road marketplace. Schiff, known for his views against Bitcoin, offered his opinion in a sarcastic post aimed at Michael Saylor, the CEO of MicroStrategy. Schiff suggested that Saylor should borrow $4.3 billion to buy the Bitcoin from the government.

This sparked a lot of reactions online from people on both sides of the Bitcoin debate. Many supporters of Bitcoin quickly responded, defending the value of the cryptocurrency. However, Schiff remains a firm believer that gold is a better store of value than Bitcoin.

The Bitcoins being sold by the U.S. government were originally seized from the now-defunct Silk Road, an online marketplace that dealt in illegal goods. After years of legal battles, the Supreme Court made a decision that allows the government to sell these Bitcoins. Schiff’s sarcastic suggestion that Michael Saylor should take out a loan to buy the Bitcoins is a jab at Saylor’s past investments in Bitcoin.

Michael Saylor’s company, MicroStrategy, has been buying large amounts of Bitcoin since 2020. The company recently purchased 7,420 Bitcoin, bringing their total holdings to over 252,000 coins. These coins are worth roughly $16 billion. Schiff has long been critical of this strategy, calling it a risky gamble.

The U.S. government’s decision to sell these Bitcoins is significant because it represents one of the largest Bitcoin sales by a government in history. The sale could have a big impact on the market and might reignite discussions about Bitcoin’s value and future as an asset.

Peter Schiff is well known for his negative stance on Bitcoin. He believes that gold is a better investment because it has real value. According to Schiff, Bitcoin’s value is based on speculation rather than any tangible asset. He has argued for years that people are putting too much faith in Bitcoin while overlooking gold’s proven track record.

Bitcoin supporters, however, argue that Bitcoin has a number of advantages over gold. One Twitter user highlighted Bitcoin’s six main properties: durability, portability, divisibility, fungibility, scarcity, and acceptability. They also mentioned a seventh property that’s unique to Bitcoin: immutability, meaning it cannot be changed or reversed once it’s on the blockchain. This argument led to more discussions about Bitcoin being a form of “hard money,” similar to gold.

Despite these arguments, Schiff remains unconvinced. He claims that Bitcoin is missing the most important property of all: real value. To him, the fact that gold has been used as money for thousands of years makes it superior to Bitcoin. He also believes that Bitcoin’s rise in popularity is due to a misunderstanding of its true value.

While Schiff continues to advocate for gold, many in the investment world see Bitcoin as a strong competitor. Since its inception, Bitcoin has seen huge growth in value, even though it remains a volatile asset. As of now, Bitcoin is valued at over $62,000 per coin. This high price has drawn the attention of many institutional investors who are looking for new ways to diversify their portfolios.

One of the major draws of Bitcoin is its potential to serve as a hedge against inflation. With the U.S. dollar losing purchasing power over time, many investors have turned to Bitcoin as a way to protect their wealth. Bitcoin’s fixed supply of 21 million coins makes it attractive to those worried about the endless printing of fiat currency.

BlackRock, one of the largest asset management firms in the world, has publicly endorsed Bitcoin as part of a balanced investment portfolio. According to Jay Jacobs, the head of thematic and active ETFs at BlackRock, Bitcoin has achieved a level of institutional legitimacy that makes it a viable option for long-term investment. Jacobs points out that while Bitcoin’s price is volatile, its long-term performance makes it one of the best assets for protecting against inflation.

BlackRock has also made it easier for institutional investors to gain exposure to Bitcoin through its spot ETFs. These exchange-traded funds allow investors to track the price of Bitcoin without actually owning the cryptocurrency. This is attractive to large funds because it removes the need for managing a crypto wallet and dealing with the legal uncertainties surrounding Bitcoin.

Since its launch in January 2024, BlackRock’s IBIT ETF has attracted billions in investments, with a total of 22.56 billion dollars in net assets. This represents nearly 2% of the total supply of Bitcoin. The performance of these ETFs has mirrored the price of Bitcoin, showing a significant 35% increase since their launch.

The success of BlackRock’s Bitcoin ETFs has been a major factor in legitimizing Bitcoin as an asset. More and more institutional investors are starting to see Bitcoin as a reliable store of value, much like gold or U.S. Treasuries. In fact, Bitcoin is now being compared to traditional safe-haven assets like gold and government bonds.

When comparing Bitcoin to other traditional assets like gold and bonds, there are clear differences. Bonds are considered one of the safest investments because they provide a steady return with low risk. However, bonds are also subject to inflation, which can reduce their value over time. Gold has been used as a hedge against inflation for centuries, but it comes with high storage and management costs.

Bitcoin, on the other hand, offers several advantages. It has a fixed supply, decentralized governance, and low storage costs compared to gold. While it is more volatile than bonds or gold, Bitcoin has the potential for higher returns. Its market cap, however, is still much smaller than that of gold or U.S. Treasuries. Gold’s market cap is around $14 trillion, while Bitcoin’s is closer to $1.3 trillion. This smaller size makes Bitcoin a riskier investment, but also one with more room for growth.

Despite the ongoing debate between Bitcoin supporters and critics like Peter Schiff, Bitcoin’s role as an investment continues to grow. The fact that the U.S. government is selling such a large amount of Bitcoin shows just how far the cryptocurrency has come in terms of mainstream acceptance. Meanwhile, large asset managers like BlackRock are adding Bitcoin to their portfolios, signaling confidence in its future potential.

Whether Bitcoin will eventually surpass gold as a safe-haven asset remains to be seen. But for now, it’s clear that Bitcoin has secured its place in the financial world as a unique and valuable asset. As more governments and institutions start to adopt Bitcoin, the debate over its value will likely continue, but so will its influence in the global market.

The United States Supreme Court has allowed the sale of 69,370 Bitcoin seized from the infamous Silk Road marketplace. Valued at around $4.4 billion, this decision comes after the Court rejected an appeal by Battle Born Investments, solidifying government control over the cryptocurrency. The Department of Justice (DOJ) had confiscated these Bitcoin, and now the US Marshal Service (USMS) will oversee what could be the largest sale of seized Bitcoin in history.

Battle Born Investments had claimed ownership of the seized Bitcoin, arguing that it acquired rights through a bankruptcy estate involving Silk Road. The company contended that “Individual X,” an unnamed person, had stolen the Bitcoin from Silk Road. However, the Supreme Court turned down their appeal, effectively upholding the 2022 ruling by the US District Court for the Northern District of California. This ruling determined that the government could liquidate the Bitcoin under existing laws.

The US Marshal Service is set to handle the sale of the 69,370 Bitcoin. With the US government proceeding with this massive liquidation, many are speculating about the potential impact on the Bitcoin market. The sale could introduce a significant supply shock, possibly affecting Bitcoin’s price gains. However, if the sale is conducted over-the-counter (OTC) or spread over a longer period, the market impact might be mitigated.

Blockchain tracker Arkham reported that in late July, $2 billion in DOJ-seized Bitcoin was transferred to new addresses. This was followed by another $593.5 million in Bitcoin moved in mid-August. All indications suggest that Coinbase Prime is serving as the custodian for these Bitcoin assets, given its custody agreement with the USMS. Observers have linked the anticipated sale to the upcoming US elections, which are just weeks away.

Tyler Winklevoss, co-founder of Gemini, commented on the political implications of the sale. “Trump pledged to never sell any of the US government’s Bitcoin. Two days later, the Biden-Harris Administration moved $2 billion of Silk Road Bitcoin. Great look and a great way to reset with our industry,” he said. Economist Peter Schiff also suggested that Donald Trump’s remarks may have prompted the Biden administration to act quickly. Schiff criticized Trump for revealing plans to halt the government’s Bitcoin sales before taking office, stating that this announcement may have accelerated the administration’s actions.

Finance lawyer Scott Johnsson anticipated these sales, pointing to multiple transfers to custodial addresses as politically motivated preparations. He expects further details to emerge in the DOJ’s FY2024 report, as the USMS will disclose the sales at a time of its choosing. “Whenever a transfer is ultimately made to Coinbase Prime (or other commingled exchange address), you can be sure USMS has already sold or is selling imminently,” Johnsson shared.

Meanwhile, markets are bracing for the impact of these expected sales, especially following the Supreme Court’s decision. A sudden influx of Bitcoin could create a supply shock, potentially limiting Bitcoin’s price gains. Market analysts are closely watching to see how the USMS will conduct the sale. Over-the-counter strategies might be employed to mitigate the market impact, ensuring that the sale does not adversely affect Bitcoin’s value.

In other legal developments, the Supreme Court decided to send several cases back to lower courts for a new look, including Murphy v. Schmitt, Borne v. United States, and Kerstetter v. United States. These actions suggest a broader shift in how certain legal procedures are being handled. The Court also dealt with various other requests, denying many and, in some cases, restricting individuals from filing more cases due to repeated misuse of the legal system.

As we observe the unfolding events, it’s worth reflecting on the patience and longevity of turtles. Turtles, some of the oldest reptiles on Earth, have survived for millions of years by adapting to changing environments. Just as turtles have weathered countless changes, the Bitcoin market continues to evolve amid legal and political shifts. Turtles teach us the value of patience and resilience, qualities that are essential for navigating the volatile world of cryptocurrency.

The sale of the seized Silk Road Bitcoin by the US government marks a significant moment in the history of cryptocurrency. Legal ownership disputes over seized assets highlight the complexities of digital currencies in the legal system. The government’s actions could set precedents for future cases involving seized cryptocurrencies. As the DOJ and USMS proceed, the world watches to see how this massive liquidation will influence the market and the broader adoption of Bitcoin.

The upcoming US elections add another layer of intrigue to the situation. Political motivations may be influencing the timing of the sale. The intersection of politics and cryptocurrency is becoming increasingly apparent, with policymakers recognizing the impact of digital assets on the economy. The decisions made now could shape the future regulatory landscape for cryptocurrencies in the United States.

Market participants are advised to stay informed and exercise caution. Strategies for selling large amounts of Bitcoin without affecting the price are crucial for maintaining market stability. The potential supply shock from the influx of Bitcoin into the market underscores the importance of careful planning and execution. Over-the-counter sales and spreading out the liquidation over time are possible methods to reduce market disruption.

The Supreme Court’s decision to allow the sale of the 69,370 seized Silk Road Bitcoin is a landmark event. With the US Marshal Service set to conduct the largest sale of confiscated Bitcoin, the implications for the cryptocurrency market are significant. As we navigate these developments, perhaps we can take a lesson from turtles: steady and measured actions can lead to long-term success. Just as turtles have survived by adapting slowly and carefully, the Bitcoin market may benefit from a thoughtful approach during this pivotal time.

On October 2, 2024, the United Arab Emirates (UAE) Federal Tax Authority (FTA) released amendments to the Executive Regulation of Federal Decree-Law No. 8 of 2017, which focuses on Value Added Tax (VAT). These changes were made after the Cabinet issued Decision No. (100) of 2024 and will take effect on November 15, 2024. The goal of these amendments is to provide clearer rules and more details on VAT procedures. They also aim to bring the regulations in line with other related tax laws, like the Excise Tax. Businesses in the UAE need to pay close attention to these changes, as they may impact how VAT is handled in daily operations.

Among the many amendments to the Executive Regulation, several stand out as having the most widespread effects. These include updates to how VAT applies to the export of goods and services, financial services, and the treatment of supplies with more than one component. These changes are important for businesses involved in exporting goods, offering financial services, or dealing with composite supplies.

The amendments to Article 30 focus on the export of goods. Now, it is easier for businesses to apply the zero rate of VAT when exporting goods. Businesses are no longer required to keep all types of export-related documents. Instead, they can keep one of three options: a customs declaration and commercial evidence, a shipping certificate and official evidence, or just a customs declaration that shows the suspension of customs duties. This change reduces the paperwork for businesses and aligns the VAT rules with other laws, like the Excise Tax law.

Export of services, covered under Article 31, has also seen important changes. To apply the zero rate on the export of services, an extra condition has been added. The services must not be considered performed in the UAE or in a Designated Zone according to special rules about the place of supply. These rules apply to services like real estate, electronic services, and telecommunications. This change means that some services that used to be zero-rated may now be subject to VAT. For example, services related to real estate located in the UAE may now be taxed. There is also a change to an anti-avoidance rule in this article, which is meant to prevent businesses from misusing VAT exemptions.

For businesses in the financial sector, Article 42 introduces new VAT exemptions. Financial services are generally exempt from VAT, but the amendment adds some specific services to the list of exemptions. These include managing investment funds, transferring ownership of virtual assets like cryptocurrencies, and converting virtual assets. These changes are applied retroactively, starting from January 1, 2018. Fund managers now need to carefully analyze if their services qualify for these VAT exemptions and how this might affect their VAT recovery. Businesses dealing with virtual assets should also review their past VAT filings, as they may need to submit corrections or voluntary disclosures. The definition of virtual assets in this context includes anything that can be traded or converted digitally for investment purposes, but it does not include fiat currencies or securities.

The next important amendment is in Article 46, which deals with supplies that have more than one component. A new paragraph has been added that addresses situations where there is no clear principal component in a supply. In these cases, the VAT treatment should be based on the nature of the supply as a whole. This helps businesses better understand how to handle VAT on mixed supplies, where multiple goods or services are sold together.

In addition to these major changes, there are several other updates that businesses need to be aware of. For example, Article 1 adds new definitions, including definitions for virtual assets and notifications. This is important because the definition of “Notification” now applies to any person, not just the concerned taxpayer or their representatives. Article 2 expands the definition of real estate supplies to include any transfer of ownership, not just sales and tenancy contracts. There are also changes to how ownership transfers of government buildings are treated. Article 3 clarifies that transfers between government entities are not considered supplies, meaning they are not subject to VAT.

Other changes include updates to the rules about deemed supplies and voluntary VAT registration. Article 5 clarifies that if the value of a supply of goods to a single recipient over 12 months is less than AED 500, it is not considered a deemed supply. The threshold is much higher for government entities and charities, at AED 250,000. Article 8 changes the conditions for businesses that want to register for VAT voluntarily. Now, they must show the FTA that they are carrying out business in the UAE or intend to make taxable supplies. This also includes supplies made outside the UAE that would be taxable if made within the country.

There are specific amendments in Articles 14, 15, and 16 that deal with tax deregistration, which is when a business stops being a VAT registrant. Businesses should review these updates to ensure they are complying with the latest rules. Article 38 removes the definition of “relevant charitable activity,” which may affect how charities handle their VAT obligations.

For businesses that provide health insurance to employees, Article 53 has an important change. Now, input VAT on health insurance provided to employees and their families (up to one spouse and three children) is recoverable, meaning businesses can claim back the VAT they paid on these services. This could reduce costs for businesses offering health benefits.

Article 55 allows businesses to apply to the FTA to use a specific recovery percentage when calculating input VAT recovery. This is useful for businesses with complex VAT situations, as it simplifies the process of determining how much VAT they can claim back.

There is also a new rule in Article 59 about simplified tax invoices. Businesses can no longer issue a simplified tax invoice when the reverse charge mechanism applies. This mechanism is used when a business buys services from outside the UAE, and the buyer is responsible for accounting for the VAT.

Another notable change is in Article 60, which allows an agent to issue a credit note on behalf of a principal, provided that proper records are kept. This helps businesses streamline their VAT procedures when working with agents.

These changes to the UAE VAT Executive Regulation are broad and will affect many industries. It is crucial for businesses in all sectors to review these amendments to understand how they impact their VAT position. Fund managers and businesses dealing with virtual assets should pay particular attention to the new exemptions and analyze how these changes affect their VAT recovery.

The retrospective nature of some of these changes means that businesses may need to review past VAT returns and submit voluntary disclosures if necessary. By carefully reviewing the amendments, businesses can ensure they remain compliant with UAE tax laws and avoid potential penalties. The amendments also provide businesses with opportunities to optimize their VAT recovery and reduce costs, especially in areas like health insurance and fund management.

The updates to the UAE’s VAT regulations will have significant impacts across various sectors. From exports to virtual assets and financial services, businesses need to stay informed about how these changes affect their operations. With the amendments coming into effect on November 15, 2024, businesses have a short window to prepare and ensure they comply with the new rules.

Bloomberg ETF analyst Eric Balchunas recently shared a list of the top-performing exchange-traded funds (ETFs) over the past decade. Interestingly, two spot Bitcoin ETFs managed to make it into the top ten, which is quite an achievement given how new they are. BlackRock’s IBIT ranked fourth, and Fidelity’s FBTC came in at ninth place on this list. Most other funds in the top ten have been around since 2020, giving them much more time to grow, but these two Bitcoin ETFs only launched in January, less than ten months ago.

Balchunas emphasized how impressive it is that both BlackRock and Fidelity’s Bitcoin ETFs have achieved so much in such a short time. He mentioned that there have been about 2,000 ETFs launched in this decade alone, but only 10 of them have over $10 billion in assets under management (AUM). He also pointed out that half of the list is made up of well-established funds from companies like JP Morgan, Dimensional Fund Advisors, and Capital Group. For Bitcoin ETFs to compete with these legacy funds is a stunning accomplishment.

The assets under management (AUM) for BlackRock’s IBIT ETF reached a massive $21.52 billion, while Fidelity’s FBTC stands at $9.87 billion. These numbers show just how much interest there is in crypto ETFs. This success has positioned both BlackRock and Fidelity as leaders in the Bitcoin ETF market. The significant inflows of money into these funds also show how crypto-related ETFs have grown and what could be in store for the future of this market.

One of the reasons for the rapid rise of BlackRock’s and Fidelity’s Bitcoin ETFs is the overall growth of crypto ETFs. Since their launch on January 11, Bitcoin ETFs have collectively brought in over $45 billion, making them the fastest-growing ETFs in history. The demand for exposure to Bitcoin through these financial products has been unprecedented. Both institutional and retail investors are looking for safe and regulated ways to invest in cryptocurrency, and these ETFs provide that.

The $45 billion in inflows for Bitcoin ETFs is even more impressive when you consider that October has been a mixed month for these funds. In the first few days of the month, BlackRock’s IBIT ETF saw inflows of $40.8 million, but then outflows of $13.7 million shortly after. Fidelity’s FBTC ETF experienced a similar pattern, with an outflow of $144.7 million followed by an inflow of $21.1 million. These movements suggest that while investors are still interested in Bitcoin ETFs, they are being cautious due to the broader market conditions.

Other Bitcoin ETFs, such as Bitwise’s BITB, Invesco’s BTCO, Franklin Templeton’s EZBC, and VanEck’s HODL, saw little to no inflows during the same period. Some even experienced small outflows, showing that not all Bitcoin ETFs are performing at the same level as BlackRock’s and Fidelity’s. Grayscale’s GBTC and Mini BTC ETFs, as well as Wisdom Tree’s BTCW and Valkyrie’s BRRR, also had minimal activity, highlighting the competitive nature of the crypto ETF market.

One ETF that stands out for a different reason is Ark’s ARKB, which has recorded three straight days of outflows. Over two consecutive days in October, ARKB lost $84.3 million and $60.3 million, adding to its previous losses. Despite these negative flows, many analysts believe that Bitcoin ETFs, in general, are well-positioned to see further inflows as the month progresses.

BlackRock recently received approval to offer options trading for its IBIT ETF, which could boost its appeal even more. Many investors use options trading as a way to hedge their positions or make more speculative bets on the future price of an asset. Now that BlackRock has this approval, it is expected that other Bitcoin ETFs, such as Fidelity’s FBTC, will follow suit. This new feature could attract even more institutional investors who want greater flexibility in how they trade Bitcoin ETFs.

While the potential for growth remains strong, Bitcoin’s recent performance has been somewhat lackluster. Since the start of October, Bitcoin’s price has dropped by 6%, falling from over $64,000 to around $60,773. According to data from CoinMarketCap, it has declined 1% in the last 24 hours alone. The price drop is partly due to ongoing conflicts in the Middle East, which have created uncertainty in global markets. Investors are pulling out of riskier assets like cryptocurrencies, leading to a short-term decline in Bitcoin’s value.

The geopolitical situation has raised concerns about Bitcoin’s maturity as an asset. Some investors are questioning whether Bitcoin can serve as a reliable store of value during times of crisis, especially when compared to more traditional safe-haven assets like gold. While Bitcoin has often been called “digital gold,” its recent performance suggests that it may not yet be ready to take on that role fully.

However, despite the recent price dip, many investors remain bullish on Bitcoin’s long-term prospects. Historically, October has been one of the best months for Bitcoin, with the cryptocurrency showing gains in nearly every October since 2013. Only three times in the past decade has Bitcoin posted negative returns for the month. Given this trend, some experts believe that the current downturn is only temporary and that Bitcoin could recover before the month ends.

The future of Bitcoin ETFs looks bright, especially as more institutional investors get involved. The introduction of options trading for BlackRock’s IBIT ETF is likely to bring in even more investors who are looking for new ways to gain exposure to Bitcoin. Additionally, as more countries and financial institutions embrace cryptocurrency, the demand for regulated products like Bitcoin ETFs is expected to grow.

While geopolitical tensions may continue to affect Bitcoin’s short-term performance, the overall outlook for Bitcoin ETFs remains positive. Investors are increasingly viewing Bitcoin ETFs as a convenient and secure way to invest in cryptocurrency without having to deal with the complexities of owning and storing Bitcoin directly. As a result, these ETFs are likely to continue attracting significant inflows, especially as the market matures.

The performance of BlackRock’s IBIT and Fidelity’s FBTC spot Bitcoin ETFs in 2024 has been nothing short of remarkable. Despite their relatively recent launch, both ETFs have climbed to the top of the list of the largest ETFs by asset value. This shows that there is strong demand for Bitcoin exposure, even in the face of market volatility and geopolitical risks. As options trading becomes available for more Bitcoin ETFs, the market will likely see even more growth in the coming months.

Bitcoin may have experienced a dip in price at the start of October, but its long-term potential remains strong. As investors look for new ways to diversify their portfolios and gain exposure to digital assets, Bitcoin ETFs are positioned to play a major role in the future of the financial industry.