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Bitcoin Outshines Silver in Market Value as London Embraces Crypto-Backed Securities, and More News

Fernanda T
Latest News
March 11 2024 10:59AM

Bitcoin surpasses silver and reaches top among global assets

With a recent increase of 4.71% in its value, Bitcoin (COIN:BTCUSD) reached the impressive mark of $72,273.60, raising its market capitalization to $1.413 trillion. This notable ascent caused Bitcoin to surpass silver in market value, positioning itself as the eighth largest global asset. Despite this achievement, the cryptocurrency still trails behind the technology giant Alphabet (NASDAQ:GOOGL), but is ahead in market capitalization compared to silver, which has a market value of $1.68 trillion. Gold remains the most valuable asset, with a market capitalization of $14.66 trillion. The price of Bitcoin was boosted by the decision of the UK Financial Conduct Authority (FCA) to allow, for the first time, the listing of exchange-traded products based on cryptocurrencies. This measure paves the way for crypto-backed ETNs, on the condition that exchanges ensure adequate controls to protect professional investors. Meanwhile, Ether (COIN:ETHUSD) also saw an increase in its value in the last 24 hours, reaching $4,056.00, reflecting the growing institutional interest in crypto assets.

London Stock Exchange to open doors for Bitcoin and Ether-based notes

The London Stock Exchange (LSE:LSEG) plans to introduce exchange-traded notes backed by Bitcoin (COIN:BTCUSD) and Ether (COIN:ETHUSD) for qualified investors in the second quarter of 2024. These notes, which must not be leveraged and need to be backed by securely stored crypto assets, offer a new avenue for institutional investment in cryptocurrencies. The announcement coincides with a significant increase in the value of Bitcoin, driven by the popularity of exchange-traded funds in the US. Despite this opening, the UK Financial Conduct Authority maintains restrictions for retail investors, citing concerns about associated risks.

Remarkable rise of BlackRock’s IBIT in the Bitcoin ETF market

In an impressive two-month span, BlackRock’s bitcoin ETF (NASDAQ:IBIT) achieved a milestone by attracting over $10 billion in capital, significantly standing out in the sector. This massive influx not only offset losses from the Grayscale fund (AMEX:GBTC) but also rivaled the combined gains of eight other bitcoin ETFs, pushing the total value beyond $20 billion. On Friday, IBIT maintained its lead with notable $336.3 million in inflows, followed by funds from Fidelity (AMEX:FBTC) and Valkyrie (NASDAQ:BRRR). Despite outflows from some funds, the overall landscape of Bitcoin ETFs in the US remains robust, with BlackRock’s IBIT exceeding expectations and setting new standards of success in the market. Additionally, BlackRock’s iShares Bitcoin Trust now holds 195,985 bitcoins, valued at $13.5 billion, surpassing MicroStrategy’s (NASDAQ:MSTR) 193,000 bitcoins.

Report reveals high number of “dead coins” on Cardano and other chains

A study by AlphaQuest highlights Cardano (COIN:ADAUSD) as one of the leading platforms with a high rate of failed cryptocurrency projects. Analyzing over 12,000 initiatives, it was found that 72% of these, especially those launched at the peak of 2020-2021, did not survive. The report indicates that most of these projects do not last more than three years, with criteria such as low liquidity and digital inactivity signaling their decline. Surprisingly, in 2023, 60% of these failures occurred, marking a critical year for these initiatives. Despite this, some projects on Cardano are flourishing, such as Wanchain (COIN:WANNUSD).

Ethereum revolution on the horizon with Dencun upgrade

The imminent Dencun upgrade promises a revolution in Ethereum (COIN:ETHUSD), aiming to decrease transaction fees by up to 100 times and initiate a new phase of efficiency and expansion. With the support of Coinbase Base and collaboration from leading development teams, this upgrade aims to address the high fee dilemma. The blockchain community eagerly awaits, anticipating a more agile and innovative blockchain environment. The introduction of Blob transactions, a crucial part of this upgrade, is expected to make layer 2 solutions even more accessible and attractive.

ARK Invest by Cathie Wood sells large amount of Coinbase stocks

ARK Invest, led by Cathie Wood, liquidated over 580,000 shares of Coinbase (NASDAQ:COIN), totaling approximately $149.85 million, in the week ending March 8. The sales occurred in three ARK ETFs: Ark Innovation (AMEX:ARKK), Ark Next Generation Internet (AMEX:ARKW), and Ark Fintech Innovation (AMEX:ARKF), marking the largest reduction in Coinbase holdings since February. This move reflects ARK’s policy of limiting exposure to a single company to 10% of an ETF, a strategy that may lead to further sales as the value of Bitcoin continues to grow. Coinbase Global is currently up 6.64%, to $273.65, in Monday’s pre-market trading.

Mudrex launches US Bitcoin ETFs for Indian market

Mudrex, an Indian cryptocurrency investment platform, announced the introduction of US Bitcoin ETFs for both institutional and retail investors in India, according to CEO Edul Patel. This initiative, described as pioneering in India for the institutional sector, will include ETFs from major firms like BlackRock and Fidelity. Mudrex, backed by Y-Combinator, will facilitate these investments through its Indian subsidiary, in a significant move given India’s divided regulatory landscape regarding cryptocurrencies.

South Korea develops crypto asset management system against tax evasion

South Korea is moving forward with plans to implement a crypto asset management system by 2025, aiming to combat tax evasion. The National Tax Service has chosen GTIC to lead the construction of this system, which aims to monitor and manage crypto transaction data collected from trading platforms. This move precedes the introduction of the cryptocurrency profit tax in the country, now scheduled for 2025, following a postponement from the initial date.

Significant losses due to cryptocurrency phishing scams

In the first two months of this year, phishing scams affected nearly 97,000 cryptocurrency investors, leading to alarming losses of $104 million, revealed Scam Sniffer. Ethereum users were the most targeted, with $78 million lost mainly through malicious signatures allowing criminals to access and drain digital assets, such as Ether and ERC20 tokens. Deception strategies, especially on social platforms like X (formerly Twitter), were crucial in luring victims to fraudulent websites, resulting in massive losses of digital funds.

Support for Tornado Cash developers through Arbitrum donations

Joseph Axisa, a contributor to Arbitrum (COIN:ARBUSD), initially proposed donating 200,000 to 600,000 ARB (approximately $400,000 to $1.2 million) to legally assist Storm and Pertsev, developers accused of involvement with Tornado Cash. The proposal, aimed at supporting legal costs through WeWantJusticeDAO, was withdrawn from the Arbitrum forum at Axisa’s request. Despite this, the Arbitrum community explores support alternatives, potentially turning to Coin Center for legal assistance.

Impact of upcoming token unlocks on the market

Throughout the week, various tokens will be unlocked, potentially influencing market dynamics. The unlocking process involves releasing previously restricted tokens, with teams designing token economies to minimize negative price impacts. However, factors such as low liquidity or immediate sales by initial investors can significantly affect prices. Among the notable unlocks are Aptos (COIN:APTUSD), CyberConnect (COIN:CYBERUSD), Flow (COIN:FLOWUSD), Arbitrum (COIN:ARBUSD), and ApeCoin (COIN:APEUSD).

Ubisoft expands presence in Blockchain with XPLA partnership

Ubisoft (EU:UBI), a gaming giant known for titles like Assassin’s Creed, has become a validator on the XPLA network, aiming to further integrate the worlds of gaming and blockchain. The partnership aims to leverage Ubisoft’s gaming expertise to enhance the security and efficiency of the XPLA network, which hosts famous cryptographic games and benefits from the Tendermint blockchain. This collaboration marks a significant step for Ubisoft in its blockchain initiatives, reinforcing the XPLA ecosystem with its gaming expertise.

Kevin Rose adjusts NFT portfolio without abandoning Web3

Kevin Rose, co-founder of NFT PROOF, recently sold over $1.2 million worth of NFTs, clarifying that he is not abandoning the Web3 space. Rose justified the sales by believing that cryptocurrency will offer better short-term returns than NFTs, despite expectations of broader adoption in the future. He emphasized his continued involvement in NFT collecting, but with a diversified and prudent approach to invested value.

Bill Ackman sparks debate on Bitcoin and energy impact

Bill Ackman, renowned investor and CEO of Pershing Square Capital Management, proposed a theoretical scenario involving Bitcoin that triggered extensive discussions among crypto enthusiasts, economists, and environmentalists. He speculated on how Bitcoin’s appreciation could intensify mining and, consequently, increase energy consumption, potentially triggering a cycle of inflation and negative economic impacts. The idea elicited mixed reactions, with criticisms of Bitcoin’s energy consumption and defenses pointing to possible efficiency and adoption of renewable energy in mining. The debate highlighted the complexity of energy use in the crypto sphere and the potential of self-regulating systems like Bitcoin in promoting sustainability.