Day: June 10, 2024

This post was originally published on this site

Bitcoin led the investment charge last week, accumulating over $1.97 billion in inflows, while Ether experienced its strongest week since March, attracting nearly $70 million in inflows.

Expectations are mounting among some traders regarding continued buying activity in Ether-tracked products, with projections of the asset reaching the $10,000 price level by 2024.

In a report released on Monday, asset manager CoinShares revealed that crypto investment products amassed nearly $2 billion in inflows last week, extending a five-week streak to over $4.3 billion.

Trading volumes in exchange-traded products (ETPs) surged to $12.8 billion for the week, marking a 55% increase from the previous week. Bitcoin dominated the investment landscape, attracting over $1.97 billion in inflows, while Ether witnessed its strongest week of inflows since March, totaling nearly $70 million.

Buying activity for spot bitcoin exchange-traded funds (ETFs) in the U.S. has surged since mid-May, following a lackluster period in April characterized by days of zero net inflows across all products. Notably, BlackRock’s IBIT, one of the major products, even experienced outflows during this time. However, inflows have since rebounded, with IBIT emerging as the largest bitcoin ETF last week, accumulating over $20 billion worth of the asset since its January issuance.

CoinShares analyst James Butterfill noted that inflows were observed across almost all providers, with a continued slowdown in outflows from established players. Positive price action propelled total assets under management (AuM) above the $100 billion mark for the first time since March this year.

Butterfill suggested that the surge in Ether buying was likely spurred by the SEC’s surprise decision to greenlight spot ether ETFs.

Traders anticipate continued inflows into Ether products in the coming months, with a rally expected towards the end of the year. Ed Hindi, Chief Investment Officer at Tyr Capital, believes that $5-10 billion of fresh capital could flow through Ether products in the short to medium term, potentially fueling a year-end rally in ETH and its ecosystem to new record highs. Hindi considers a price target of $10,000 in 2024 as reasonable, especially given Ether’s transition to a deflationary asset.

In May, the U.S. Securities and Exchange Commission (SEC) approved key regulatory filings tied to ETH ETFs, marking a historic milestone for the second-largest cryptocurrency. The approval covered documents for eight ETFs from various providers, including VanEck, Fidelity, Franklin, Grayscale, Bitwise, ARK Invest 21Shares, Invesco Galaxy, and BlackRock, for listing on major exchanges.

Featured Image: Freepik

Please See Disclaimer

This post was originally published on this site

Bitfarms Ltd., a Bitcoin mining company, is adopting a “poison pill” shareholder rights plan in response to an unsolicited takeover offer from larger rival Riot Platforms Inc.

A poison pill strategy is designed to deter corporate takeovers by making the acquisition too costly for the acquiring company. Under the terms of Bitfarms’ plan, if an entity acquires an equity stake exceeding 15% by September 10, Bitfarms will issue new stock to existing shareholders, thereby diluting the stake of the entity pursuing the hostile takeover, as stated in a Monday announcement by Bitfarms.

Riot Platforms made an unsolicited offer of $950 million in May to acquire Bitfarms Ltd. following the latter’s rejection of Riot’s takeover bid the previous month. Bitfarms’ board deemed the proposal as significantly undervaluing the company and its growth prospects.

In April, Riot privately proposed $2.30 per share in cash and stock for Bitfarms, which represented a 20% premium over the company’s pre-offer share price.

According to Bitfarms, Riot currently holds 47,830,440 shares, constituting approximately 12% of the issued and outstanding stock. A spokesperson for Riot did not respond immediately to requests for comment.

On Monday, Bitfarms shares declined by 4.2% to $2.30, while Riot’s stock increased by 1.8% to $9.90. Year-to-date, both stocks have experienced declines of around 21% and 36%, respectively.

Featured Image: Freepik

Please See Disclaimer

This post was originally published on this site

Cryptocurrency custody firm Fireblocks has announced a partnership with Coinbase International Exchange, the non-U.S. division of Coinbase Global Inc. (NASDAQ:COIN), to provide more secure trading features for institutional and retail clients in eligible jurisdictions, the companies reported on Monday.

Through this partnership, Fireblocks customers can now link their accounts with Coinbase International Exchange, safeguarding operations such as withdrawals and deposits with Fireblocks’ governance and policy rules, according to a statement.

Coinbase International Exchange obtained a regulatory license from the Bermuda Monetary Authority in May 2023. Initially, it operated as a derivatives exchange for institutions and later added spot crypto trading for retail clients.

Fireblocks utilizes Multi-Party Computation technology to eliminate single points of compromise in API credentials and secure hardware enclaves to prevent threats and inside collusion attacks. Customers can leverage Fireblocks’ policy engine to set up user roles, governance policies, and approval workflows for deposit and withdrawal operations, ensuring protection against unauthorized fund movements. They can also manage deposits, withdrawals, and account rebalancing through the Fireblocks Console or API while monitoring all connected account balances.

“As we continue to expand our offerings for institutional and retail clients, this collaboration underscores our commitment to providing a robust and reliable trading infrastructure for our global clientele,” said Usman Naeem, CEO of Coinbase International Exchange.

Featured Image: Freepik

Please See Disclaimer

This post was originally published on this site

The crypto lending sector is experiencing a revival following the “crypto winter” that saw the collapse of major players, thanks to the introduction of spot Bitcoin exchange-traded funds and the return of assets to creditors from bankrupt companies.

“What I’m seeing is that this market has come back roaring,” Mauricio Di Bartolomeo, co-founder of crypto lending firm Ledn, told CoinDesk at the Consensus 2024 conference in Austin, Texas. “The market never really left; it [just] got scared.”

Crypto lending functions similarly to traditional banking. Customers deposit Bitcoin or other cryptocurrencies with firms like Ledn, earning interest or using the crypto as collateral for loans. The interest paid to depositors is generated by lending their crypto to others at a higher interest rate.

The sector collapsed in 2022 when crypto prices plummeted, leading to bankruptcies of companies like Celsius, BlockFi, and Genesis. Since then, the digital asset market has rebounded. The CoinDesk 20 Index has surged over 200% since the end of 2022. The rally gained momentum after BlackRock (NYSE:BLK) and other financial giants successfully applied to create Bitcoin ETFs in the U.S. Di Bartolomeo attributes the renewed interest in crypto lending to the positive outlook surrounding these funds.

“Bitcoin has gone up from $20,000 to $70,000 and has become a focal point in the U.S. political race,” he said. “This increased interest validates Bitcoin as an asset and collateral for lending.”

Ledn processed more than $690 million in loans in the first quarter of this year, its best performance since its inception in 2018. Over 84% of these loans were directed to institutional clients, driven by the demand surge following the approval of Bitcoin ETFs in January. Ledn exclusively processes loans in Bitcoin, Ethereum, and two stablecoins: USDC and USDT.

The institutions involved are primarily market makers from both Wall Street and crypto-native companies. “These firms operate in both the ETF and spot markets,” Di Bartolomeo said. “Some have made their names in crypto, others in traditional finance.”

Another factor driving the resurgence in crypto lending is the return of funds to users from bankrupt firms. Many users, who had their investment thesis validated over time, are returning to the lending market. Di Bartolomeo explained that these “hardcore users” are likely to hold onto their assets and use the lending market to leverage them for borrowing and lending.

“What I’m seeing is undeniable proof that people want to hold their Bitcoin long-term and also want to utilize it,” he said. Traditional financial institutions may not recognize digital assets as collateral for loans, but firms like Ledn bridge this gap for customers.

Surviving the crypto winter, Ledn remained committed to lending and borrowing fundamentals. “Ledn only works with qualified and vetted institutions, avoids asset and liability mismatches, and steers clear of DeFi yield farming,” Di Bartolomeo explained. “If someone lends us Bitcoin,we lend Bitcoin; if someone lends us dollars, we lend dollars. There’s always a taker and always liquidity.”

He added that all lending and borrowing activities are term-matched, ensuring liquidity for the assets. “People called us boring, but we said this is our way: boring, slow, and safe,” he noted.

Featured Image: Freepik

Please See Disclaimer