🧘‍♂️ It Might Actually Happen

Here’s Why.

Dear Meditators

✅ Welcome back to your daily crypto market update.

🤝 In these market conditions, the time we take to read, research and prepare ourselves is of paramount importance. 

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⏰ In A Rush?

Here’s 5 things you need to know about the crypto markets today: 

• 🇺🇸BlockFi Receives Cease and Desist Order From New Jersey Attorney General
  Crypto lending platform BlockFi has received an order from New Jersey’s acting attorney general (AG) to halt its Interest Account (BIA) operations in the state.

• 🏆Osprey Funds CEO says US will approve Bitcoin ETF in 2022 ‘at earliest’
  Greg King, CEO of Bitcoin trust issuer Osprey Funds, thinks the U.S. SEC has too many things on its plate this year to get to the issue of crypto ETF approvals.

• 🌊OpenSea secures $100 million in Series B round at $1.5 billion valuation
  NFT marketplace OpenSea has raised $100 million in a Series B round led by venture capital firm Andreessen Horowitz (a16z). 

• ⚠️ Presidential Advisory Group Promises Stablecoin Recommendations
  The Treasury Department didn’t lay out a timeline for when it will publish its recommendations on stablecoin regulation.

• 🚀 Rothschild Investment Corp has increased its Bitcoin exposure by 300% since April
  Billion-dollar investment firm Rothschild Investment Corp quadrupled its exposure to Bitcoin (BTC) since April, new records show.

💎 What the ETF?

We’ve recently had news that an Ethereum ETF has gotten approval from Brazilian Securities Regulators.

💡 What Is An ETF?

An exchange traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other assets, but which can be purchased or sold on a stock exchange the same as a regular stock. ETFs are good for portfolio diversification and tend to involve fewer broker commissions compared to buying assets individually. 

🌎 What Does This News Mean For Crypto?

There have been a lot of crypto ETFs in the pipeline for months now. What’s more, the demand shows no sign of slowing down. For instance, we recently heard of Grayscale Partnering with BNY Mellon to Service GBTC and Its Bitcoin ETF. 

• Unfortunately, in the U.S. in particular, the SEC continues to delay it’s decision making for approving Bitcoin and Ethereum ETFs. 

• This is frustrating for the businesses that want to launch ETFs, the wave of institutional investors (who tend to prefer ETFs as investment vehicles) and retail investors who would be beneficiaries of increased interest and participation in the crypto markets. 

• It is also frustrating to a group of people who would argue that the SEC doesn’t have jurisdiction over crypto. The SEC regulates securities and some analysts question their role in crypto ETFs given cryptos are not securities. 

Perhaps the developments in South America may put more pressure on other countries to accept crypto ETFs. While we wait, there are ETFs with indirect crypto exposure (for instance, they are invested in a company that holds a large proportion of crypto assets such as MicroStrategy).

1️⃣ BLOK. As a share of its overall portfolio, the Amplify Transformational Data Sharing ETF (BLOK) has the greatest exposure to crypto. 

2️⃣ VTI. When measured by total value of assets, the Vanguard Total Stock Market ETF (VTI) is the ETF with the heaviest allocations to crypto-exposed firms. 

3️⃣ ITOT. The iShares Core S&P Total U.S. Stock Market ETF (ITOT) is the second-largest fund by overall exposure to crypto.

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🚜 Steamrolled Rigs

In which country did the government steamroll over 1,000 Bitcoin mining rigs?

1. Malaysia 

2. Indonesia

3. Thailand

🇨🇳 Can Mining Recover After China’s Crackdown?

As many of you may recall, China has had a crackdown on bitcoin mining. Computing power is dropping as Bitcoin’s hash rate is still down 45% from earlier this year! Is this news along with the recent dip a recipe for disaster? Quite the contrary – there is opportunity! 

Late last week, Malaysian authorities confiscated and destroyed 1.26 million dollars of mining equipment. Police actually opted to destroy the equipment in accordance with a court order, more than likely to make a point. We should note this equipment was confiscated for stealing 2.2 million dollars worth of electricity which was siphoned from Sarawak Energy Power lines. Let’s take a look at what this means: 

• Opportunity for mining activity in other parts of the world. 

• Miners will most likely migrate to Central Asia or North America. 

• In North America, Texas is leading the way with renewable energy and becoming a small mining hub. In addition to mining, cryptocurrency is also coming to local Texas grocery stores! Texas Governor, Greg Abbot, says “It’s happening! Texas will be the crypto leader.” 

The fall in Bitcoin hash rate (computing power) should not be viewed as FUD, but as an opportunity for other parts of the world. The question is now: who will capitalize and pick up the torch to lead the way in this revolution?

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1. Malaysia

According to local reports more than 1,000 Bitcoin mining rigs have been seized and steamrolled by the Malaysian government. This comes after the government cited that six people were using the rigs to steal electricity from the grid to power them. These rigs seem to be the cause of frequent power outages in the local area.

These six people were “successfully charged under Section 379 of the Penal Code for electricity theft and have been fined RM8,000 (£1381) and jailed for up to eight months” according to Malaysian police chief Hakemal Hawari.

China used to account for 50% of global Bitcoin mining however since the bans on mining were imposed this has reduced the competition. Meaning that many people have taken this opportunity to begin mining while the competition is low.

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Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here. 

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