Month: January 2023

• China is exhibiting signs of a crypto market comeback with the listing of Bitcoin Futures ETFs in the Hong Kong stock markets.
• The ETFs raised more than $74 million in startup funding, indicating a growing client demand for exposure to Bitcoin and Ether.
• Global head of equity FX products at CME, Tim McCourt, believes that the listing of these ETFs is essential in the adoption of virtual currency in Asia.

The crypto market is set to make a comeback in China, according to CryptoQuant.com, an onchain analytics and data insights firm. The country is displaying significant signs of a crypto market revival, such as BTC derivatives and spot markets.

In December 2022, China’s Southern Asset Management subsidiary, CSOP Asset Management, listed the first ethereum and bitcoin futures ETFs in the Hong Kong stock markets. The organization raised more than $74 million in startup funding ($ 54 million and $20 million, correspondingly). This record amount of funding indicates a growing client demand for exposure to Bitcoin and Ether.

Tim McCourt, global head of equity FX products at CME, believes that approving the ETF is essential in virtual currency adoption in Asia. He added that despite the drawdowns, BTC and ether had seen a 20% exponential rise in daily volumes in 2022 than 2021. This is indicative of the growing interest in virtual currency, particularly in the Asian market.

McCourt further stated that the listing of these ETFs underscores the robust growth and increasing client demand for exposure to Bitcoin and Ether via CME Group’s transparent, highly regulated, and deeply liquid platforms. He believes that it is an important step in the mainstream adoption of cryptocurrency.

With the listing of these ETFs in the Hong Kong stock markets and the growing volumes in both spot and derivatives markets, it is evident that China is set to make a comeback in the crypto market. This could be a pivotal moment for the adoption of virtual currency in Asia and the world at large.

• In 2022, venture capital firms invested over $30 billion in investments in blockchain and cryptocurrency firms.
• 31% of deals in 2022 were in the web 3 sector, which includes non-fungible tokens (NFTs), decentralized autonomous organizations, the metaverse, and online gaming.
• Alex Thorn, head of research at crypto investment firm Galaxy Digital, anticipates that the trend of VC funding for web3 businesses may continue in 2023.

Galaxy Digital, a crypto investment firm, revealed in an interview with the CEO on Monday that in 2022 venture capital firms invested over $30 billion in investments in blockchain and cryptocurrency firms. This figure represents a significant increase from the prior year, showing the growing interest in this sector of the economy. Of the deals made in 2022, 31% of them were in the web 3 sector which includes non-fungible tokens (NFTs), decentralized autonomous organizations, the metaverse, and online gaming. In comparison, 13% of the deals were in trading platforms.

The firm also noted that with the downturn in the crypto markets, the number of deals and the amount of money invested decreased every quarter of 2022. However, there was still an increase in funding for later-stage businesses, particularly those that offer trading and exchange services. Alex Thorn, head of research at Galaxy Digital, anticipates that this trend of VC funding for web3 businesses may continue in 2023.

In addition, Fred Wilson, a tech investor and co-founder of Union Square Ventures, discussed the potential macroeconomic picture for 2023 in a blog post from Jan.1 and the need for prospective web3 investors to exercise some restraint. He also noted that the U.S. is still in the leading position when it comes to crypto VC deals, but that politicians need to create policies that won’t discourage innovation.

Overall, the outlook for VC funding for web3 businesses in 2023 looks positive. The increased interest in blockchain and cryptocurrency firms and the opportunities in the web3 sector are encouraging signs for further investment in the industry. It will be interesting to see what the future holds for the industry and how the macroeconomic picture will play out.

1. ECB board member Fabio Panetta believes regulators should treat trading in unbacked crypto assets like gambling.
2. He believes that the “buyer beware” principle should not apply to crypto assets, citing several recent catastrophic failures in the space.
3. He described crypto as “speculative assets,” often bought with the sole objective of being sold for a profit, essentially making them gambles disguised as investment instruments.

The European Central Bank (ECB) board member Fabio Panetta has recently come out with a statement regarding the regulation of trading in unbacked crypto assets. He believes that these assets should be treated like gambling, and not simply under the “buyer beware” or “caveat emptor” principle. This opinion has been shared in a recent opinion piece for the Financial Times.

Panetta has expressed his concerns about the state of the crypto industry in the past year. Several crypto-based products and businesses have been met with catastrophic failure, including the TerraUSD stablecoin, Three Arrows Capital (3AC), Celsius Digital, and FTX. These events have highlighted the interconnectedness of the crypto ecosystem, the players’ highly leveraged activities, and the weak governance structures of the industry.

Despite this, the ECB board member cautioned against thinking that the crypto industry can simply be wished away. According to Panetta, crypto assets cannot be treated as such because of their nature. He described these assets as “speculative”, and pointed out that they are often bought with the sole objective of being sold for a profit. This essentially makes them gambles disguised as investment instruments, and regulators should treat them as such.

Panetta believes that authorities should not ignore the crypto industry, and instead should work towards the legitimization and regulation of it. He cautioned that the “buyer beware” principle should not be applied to crypto assets, and that instead, trading in such products should be treated like gambling. It is clear that the ECB board member has strong opinions about the crypto industry and its regulation, and it remains to be seen how authorities will respond to his opinion.

• Bitcoin (BTC) holders are hitting new all-time highs with positive metrics
•The number of addresses holding one or more bitcoins hit an all-time high (ATH) of 979,163
•The number of wallets holding 0.01 BTC has seen a more significant rise with 11,443,277 addresses hold a percent of bitcoin

Bitcoin (BTC) holders are experiencing a surge in their holdings as the flagship cryptocurrency continues to soar in value. According to on-chain data provider Glassnode, the number of addresses holding one or more bitcoins hit an all-time high (ATH) of 979,163. This is a bullish sign for BTC, as it indicates that the number of large and small holders is increasing.

In addition, the number of wallets holding 0.1 coins has also hit an ATH of 4,208,251 — it reached 4,208,076 on Jan. 3. This means that even more investors and traders are entering the BTC market. Moreover, the number of BTC wallets holding 0.01 BTC has seen a more significant rise. Currently, according to Glassnode data, 11,443,277 addresses hold a percent of bitcoin. This is another indicator that more and more people are buying in to BTC.

Despite the surge in the number of BTC holders, the digital gold’s realized cap has dropped to a 16-month low of roughly $380 billion. This may indicate that Bitcoin is currently undervalued. However, the bullish sentiment in the market is still strong and the number of holders is only expected to increase in the coming months.

Overall, the increase in the number of BTC holders is a positive sign for the cryptocurrency market. It shows that more investors and traders are buying in to BTC, which is a sign of confidence in the digital asset. With the increasing number of holders, it is likely that the Bitcoin price will continue to rise in the near future.