London-based Jacobi Asset Management has unveiled Europe’s inaugural spot Bitcoin exchange-traded fund (ETF), designating it an Article 8 fund under the European Sustainable Finance Disclosure Regulation (SDFR).
Article 8 funds are recognized for their emphasis on “environmental and/or social characteristics.”
The pioneering Jacobi FT Wilshire Bitcoin ETF, launched on the Euronext Amsterdam stock exchange on August 15, signifies Europe’s maiden Bitcoin ETF and aligns with the European Union’s guidelines for environmental, social, and governance (ESG) investments.
According to an August 29 report by Bloomberg, Jacobi Asset Management’s CEO Martin Bednall labeled the ETF as “fully decarbonized,” attributing this classification to its investment in renewable energy certificates (RECs).
However, skepticism arose among academic experts consulted by journalists, who pointed out a seeming paradox: the ETF’s Bitcoin assets possess such high energy demands due to the energy-intensive nature of Bitcoin mining that the volume of RECs needed to offset these demands could potentially surpass the energy consumed by the Bitcoin holdings themselves.
READ MORE: Hashdex Challenges Status Quo with Innovative Approach in Pursuit of Bitcoin ETF Approval
The Jacobi FT Wilshire Bitcoin ETF’s launch transpired over a year later than initially intended in 2022.
Marketed as the leading physically-backed Bitcoin fund, the ETF offers investors an avenue to engage with a financial instrument supported by actual Bitcoin assets.
Since inception, Jacobi Asset Management has consistently underscored the ETF’s eco-friendly profile.
The fund employs external data to estimate the energy consumption of the Bitcoin network, subsequently procuring and retiring RECs.
These certificates are monitored via a blockchain platform, empowering investors to verify the ETF’s assertions of its environmentally conscientious practices.
Other Stories:
Casino Gender: Which Games Do Men and Women Prefer?
Former FTX CEO Sam Bankman-Fried’s Legal Team Deems Trial Preparations Inadequate
Three Former Team Members Accused of $16 Million Theft from Pepecoin (PEPE) Multisig Wallet
Bitcoin mining revenue, often termed as “hash price,” has plummeted to its lowest levels since the downfall of FTX in November 2022, despite the hash rate of the Bitcoin network reaching unprecedented heights.
As of August 18, the Bitcoin network’s hash rate surged to an all-time high of 414 exahashes per second (EH/s), indicating a remarkable 54% increase from the start of 2023 and an 80% surge over the past year, according to data from Blockchain.com.
While this surge in hash rate bolsters the network’s security, the situation isn’t as optimistic for Bitcoin miners.
Revenue for miners has experienced a significant decline, sinking to levels comparable to the market cycle’s nadir of approximately $16,500 in November 2022.
Presently, according to HashPriceIndex, the daily revenue stands at merely $0.060 per terahash per second, a stark drop from early May when the fervor surrounding the Bitcoin Ordinals inscription prompted heightened demand for block space.
Dylan LeClair, a market analyst, noted the juxtaposition of dwindling revenue and the peak hash rate.
READ MORE: IRS Proposes Simplified Reporting for Digital Asset Taxes, Faces Industry Scrutiny
LeClair emphasized that while more efficient mining rigs are continually being developed, a point of balance must be reached, where rising prices compensate for the escalating hash rates to ensure mining remains profitable.
The predicament has led Bitcoin miners to rely on funds generated from stock sales during the second quarter to weather the storm of the bear market.
According to Bloomberg, major publicly traded mining companies collectively raised around $440 million through stock sales in Q2, which temporarily sustained their operations.
Mark Jeftovic, curator of the Bitcoin Capitalist newsletter, highlighted a concerning trend.
Some mining firms, he pointed out, are disproportionately diluting shareholders, an action that could prove detrimental if the rate of dilution outpaces Bitcoin’s value increase.
He metaphorically likened this scenario to moving in the wrong direction on a treadmill, emphasizing the importance of aligning dilution and value appreciation.
In summary, the Bitcoin network’s hash rate has surged to unprecedented levels, bolstering its security.
Nonetheless, miners are grappling with plunging revenues, necessitating price adjustments to ensure profitability amid the soaring hash rates.
Mining companies have turned to stock sales to endure the market’s downturn, while experts underscore the importance of aligning dilution rates with Bitcoin’s value trajectory.
Other Stories:
Bitcoin’s $20,000 Value Holds Steady Over Six Years When Adjusted for Inflation
Former Worldcoin Insider Alleges Unlawful Practices and Mismanagement
Co-founder of Tornado Cash Cryptocurrency Service Released on Bail
The downward trajectory in the cryptocurrency market appears to be reaching its conclusion, as per recent research by JPMorgan.
The bank’s analysis suggests that the majority of long position liquidations have concluded, pointing towards a potential deceleration in the selling trend.
Based on information from a Bloomberg report, JPMorgan’s experts anticipate that the era of liquidations is mostly in the past.
This projection draws from the assessment of open interest in Bitcoin futures contracts on the Chicago Mercantile Exchange (CME), which serves as an indicator of market sentiment and the potency of price movements.
A decline in Bitcoin’s open interest is interpreted by analysts as a possible indication of waning price momentum: “As a result, we see limited downside for crypto markets over the near term.”
The recent dip in crypto prices can be attributed to waning optimism surrounding regulatory advancements in the United States.
On August 26, Bitcoin hovered around $26,000, marking an 11.27% decrease over the past month.
Bitcoin’s value was buoyed in previous months by favorable developments, including applications for the introduction of the first U.S. exchange-traded funds (ETFs) linked to Bitcoin’s actual price.
READ MORE: Co-founder of Tornado Cash Cryptocurrency Service Released on Bail
Prominent names such as BlackRock, Fidelity, ARK Invest, and 21Shares were among those awaiting regulatory approval.
In a positive turn, Ripple Labs secured a partial victory against the U.S. Securities and Exchange Commission (SEC).
Nevertheless, this optimism is fading as traders await crucial decisions regarding Bitcoin ETFs and the SEC’s appeal against Ripple, rekindling uncertainty.
These circumstances collectively contribute to a fresh wave of legal ambiguity for the cryptocurrency market, rendering it sensitive to forthcoming events.
The market’s decline has also been influenced by external factors, encompassing increasing U.S. real yields and apprehensions concerning China’s economic growth.
Other Stories:
Former Worldcoin Insider Alleges Unlawful Practices and Mismanagement
Bitcoin’s $20,000 Value Holds Steady Over Six Years When Adjusted for Inflation
IRS Proposes Simplified Reporting for Digital Asset Taxes, Faces Industry Scrutiny
Paolo Ardoino, the Chief Technology Officer of Tether, has responded to speculations surrounding images of industrial containers circulating online.
These images had led to questions about Tether’s involvement in Bitcoin mining, prompting Ardoino to clarify the situation.
In a recent post on X (formerly Twitter) on August 26, Ardoino provided insights into a photo he shared on August 24.
The picture showcased a container adorned with a photoshopped Tether Energy logo, which piqued the curiosity of many observers.
Ardoino explained that the image depicted a control room at a Bitcoin mining site operated by Tether, which is nearing completion and preparing to begin operations.
However, when pressed about the location of the mining site, Ardoino firmly declined to disclose it.
While he acknowledged that the site is situated in South America, he refrained from divulging further details due to security concerns.
He expressed that the decision to withhold exact locations was driven by a desire to prevent potential harassment of personnel, especially given the presence of Tether critics who have raised doubts about its legitimacy.
READ MORE: Former Worldcoin Insider Alleges Unlawful Practices and Mismanagement
Addressing skeptics who questioned the presence of the Tether logo on the containers, Ardoino clarified that it was a deliberate branding choice.
He revealed that the team had expected the photo to gain media attention and wanted to establish branding.
However, he noted that displaying prominent logos at mining sites could compromise the physical privacy and security of these locations.
Ardoino anticipated that operations at the mining site would commence in September. He conveyed the enthusiasm of the team and their diligent efforts to launch operations within the next few weeks.
This development follows news about Tether’s involvement in enhancing transparency within the Bitcoin mining sector.
In an interview with Cointelegraph on August 17, Ardoino elaborated on Tether’s ongoing work on a mining software named Moria.
This software aims to provide more comprehensive data analytics regarding energy production at Bitcoin mining sites.
Ardoino emphasized the importance of improved analytics and performance evaluation in the realm of Bitcoin mining.
He believes that Moria’s insights into energy usage, especially from renewable sources like wind and solar, could optimize mining operations and boost production.
Other Stories:
IRS Proposes Simplified Reporting for Digital Asset Taxes, Faces Industry Scrutiny
Co-founder of Tornado Cash Cryptocurrency Service Released on Bail
Bitcoin’s $20,000 Value Holds Steady Over Six Years When Adjusted for Inflation
Bitcoin’s on-chain activity is mirroring patterns reminiscent of its surge to record highs in 2021, recent data reveals.
Ki Young Ju, CEO of CryptoQuant, shared insights on the 25th of August indicating a decline in Bitcoin velocity over several years.
At present price levels, Bitcoin has become relatively stagnant, with the absence of any distinct price trend over recent months leading to reduced buying and selling activity.
This inertia is emphasized by the concept of velocity, which gauges the movement of BTC units within the network.
CryptoQuant’s analysis illustrates that, when viewed on a daily basis, this metric is now at levels that were last observed back in October 2020.
The interpretation of this situation can be bifurcated, according to Ki Young Ju. On one hand, it can be construed as positive, as it signifies that larger holders, often referred to as whales, are retaining their holdings.
Conversely, it can be seen as negative since the lack of transfers to new investors could indicate a potential lack of fresh interest.
READ MORE: IRS Proposes Simplified Reporting for Digital Asset Taxes, Faces Industry Scrutiny
Ki Young Ju pointed to a comparable scarcity of substantial trading activity among high-volume investors, suggesting that the market is currently adopting a “wait and see” approach towards Bitcoin.
Earlier this year, the influx of new capital into the crypto space was evident as BTC/USD initiated a winning streak during the first quarter, eventually resulting in a 70% increase.
Notably, the volume data carries added significance.
In late 2020, after hitting a long-term bottom, the rebound in this metric coincided with Bitcoin’s initial ascent beyond the $20,000 mark, ultimately culminating in new all-time highs a year later.
However, a distinction is drawn between the present circumstances and that of the past.
Bitcoin’s current price of $26,000 is marked by a state of overselling, indicated by its daily relative strength index (RSI), as measured by Cointelegraph Markets Pro and TradingView.
As previously reported, the 12-hour RSI reached its lowest point in five years this month and has yet to recover, underscoring a delay in the resurgence of investor interest.
In conclusion, Bitcoin’s on-chain activity is mimicking the prelude to its meteoric 2021 rally, with reduced movement of BTC units and a potential shift in investor sentiment indicating either a cautious optimism or a lack of fresh enthusiasm in the market.
Other Stories:
Co-founder of Tornado Cash Cryptocurrency Service Released on Bail
Bitcoin’s $20,000 Value Holds Steady Over Six Years When Adjusted for Inflation
Former Worldcoin Insider Alleges Unlawful Practices and Mismanagement
Hashdex, a crypto asset management firm, has entered the race to establish a Bitcoin exchange-traded fund (ETF) in the United States.
To secure its spot, the company has filed an application with the U.S. Securities and Exchange Commission (SEC) for a Bitcoin futures ETF that will encompass actual spot Bitcoin holdings.
ETFs are investment vehicles traded on stock markets, deriving their value from an underlying assortment of assets like stocks, bonds, and commodities.
Similarly, Bitcoin ETFs mirror the value of BTC and are traded on traditional stock exchanges, distinguishing them from crypto exchanges.
Notably, Hashdex’s approach diverges from recent filings by sidestepping the Coinbase surveillance sharing agreement.
Instead, it plans to acquire spot Bitcoin from physical exchanges within the CME market.
As disclosed in a 19b-4 filing by NYSE Arca with the SEC, Hashdex aims to incorporate spot Bitcoin into its Bitcoin futures ETF and intends to rename it as the Hashdex Bitcoin ETF.
Industry experts have reacted to Hashdex’s novel Bitcoin ETF proposal. James Seyffart, an analyst at Bloomberg, highlighted the strategy’s exclusive reliance on exchange-for-related-positions transactions.
This technique involves exchanging futures contracts for an equivalent exposure to the spot market, bypassing direct cash purchases from exchanges.
READ MORE: Bitcoin’s Evolution Accelerates: Recursive Inscriptions Unveil New Horizons Beyond Cryptocurrency
Seyffart speculates that Hashdex’s approach might enhance its chances of SEC approval.
This outlook is informed by the regulatory pressure faced by Gary Gensler, influenced by the Grayscale lawsuit, Ethereum futures submissions, and BlackRock’s implementation of the Coinbase surveillance sharing agreement.
Other specialists, such as Nate Geraci, President of The ETF Store, investor Alistair Milne, and finance attorney Scott Johnsson, have also commented on Hashdex’s distinct ETF submission.
They posit that Hashdex’s approach could address certain SEC concerns related to market manipulation and liquidity issues associated with the Bitcoin market.
As of now, the SEC, led by Chair Gary Gensler, has refrained from commenting on the status of spot Bitcoin ETF applications, the influx of Ethereum ETFs, and the potential approval timeline for a spot Bitcoin ETF within the current year.
Other Stories:
Binance’s Russian P2P Crypto Exchange Renames Sanctioned Banks Amidst Controversy
XRP Faces Investor Sell-Off as Whale Transfers 29 Million Tokens Amid Price Dip
Galaxy Digital Poised to Manage FTX’s Recovered Cryptocurrency Holdings
Bitcoin (BTC) is exhibiting on-chain activity reminiscent of the period preceding its historic surge to all-time highs in 2021, recent data reveals.
In a post shared on August 25th, Ki Young Ju, the CEO of CryptoQuant, a prominent analytics platform, disclosed that Bitcoin velocity has reached multiyear lows.
This trend indicates reduced movement of BTC at its current price levels, resulting in a lack of pronounced buying or selling pressures.
The concept of velocity, which gauges the rate of BTC units traversing the network, highlights this stagnant state.
CryptoQuant’s data highlights that on a daily basis, this metric is currently at levels that were last observed back in October 2020.
Ki Young Ju offered a two-fold perspective on this situation.
On one hand, it can be interpreted positively as evidence of whales retaining their BTC holdings.
Conversely, it could also be perceived negatively due to the limited transfer of BTC to new investors.
This scenario extends to high-volume traders as well, indicating a subdued trading activity amongst them.
This aligns with the narrative that the market is cautiously observing Bitcoin’s movements, adopting a “wait and see” approach.
READ MORE: Bitcoin’s Evolution Accelerates: Recursive Inscriptions Unveil New Horizons Beyond Cryptocurrency
Notably, the early months of the year witnessed the influx of fresh capital into the market, coinciding with BTC/USD’s impressive Q1 performance, achieving a remarkable 70% gain.
A significant aspect lies in the volume data. In late 2020, a similar pattern emerged where a low point in this metric coincided with Bitcoin’s surge past $20,000 and eventually reaching new all-time highs a year later.
However, in contrast to that period, Bitcoin’s current value of $26,000 seems to be oversold according to its daily relative strength index (RSI), as indicated by Cointelegraph Markets Pro and TradingView.
A recent report by Cointelegraph highlighted that the 12-hour RSI has hit a five-year low this month and is yet to recover, reflecting a delay in the resurgence of investor interest.
In conclusion, Bitcoin’s on-chain behavior is resembling the prelude to its previous historic price rally.
The slowed movement of BTC and the subdued trading activities among high-volume investors reflect a sense of caution prevailing in the market.
However, the oversold RSI suggests a potential for renewed investor engagement, albeit with a delay.
Other Stories:
Binance’s Russian P2P Crypto Exchange Renames Sanctioned Banks Amidst Controversy
XRP Faces Investor Sell-Off as Whale Transfers 29 Million Tokens Amid Price Dip
Galaxy Digital Poised to Manage FTX’s Recovered Cryptocurrency Holdings
Nearly six years after initially reaching the $20,000 milestone, Bitcoin’s value has remained at that level when adjusted for inflation.
Data from various sources, including the U.S. Inflation Calculator, indicates that the performance of BTC’s price has essentially stagnated since 2017.
While Bitcoin has fluctuated around the $20,000 mark since marking it as an all-time high in 2017, its value against the USD surged as high as $69,000 during the interim period.
However, considering inflation, the narrative around BTC’s price action takes on a different hue.
As of August 25, 2023, the value of $20,000 worth of BTC purchased in 2017 has appreciated to $24,942.
To put it differently, the current spot price of Bitcoin, which is $26,050 according to data from Cointelegraph Markets Pro and TradingView, reflects six years of relatively unchanging BTC price dynamics.
BTCGandalf, the anonymous marketing officer at Bitcoin mining firm Braiins, remarked on this development during the week, acknowledging that, when adjusted for inflation, Bitcoin is only slightly above its 2017 market peak.
Commentators on X platform further observed that this calculation was based on official inflation statistics, implying that in actuality, the value of BTC/USD might even be lower than during its previous cycle peak.
Some humorously concluded that these figures underscored Bitcoin’s capacity to serve as a store of value.
BTCGandalf added that they were taken aback by the limited attention this matter had received.
Simultaneously, the United States’ national debt has reached a staggering $32.7 trillion, while concerns about U.S. inflation continue to be of paramount interest for risk-focused investors, including those involved in cryptocurrencies.
With official data signaling a deceleration in inflation, hopes are pinned on the Federal Reserve to align economic policies with the perceived reality.
READ MORE: Bitget Cryptocurrency Exchange Enhances KYC Procedures to Align with Global Regulations
On August 25, Fed Chair Jerome Powell is slated to present a policy statement at the annual Jackson Hole Economic Symposium, an event that is being closely monitored by those anticipating a deviation from Bitcoin’s current price status quo.
Keith Alan, co-founder of monitoring resource Material Indicators, indicated a preparedness for potential lows and volatile fluctuations, suggesting that a double bottom could potentially set the stage for recovery, despite the possibility of further downward movement.
A corresponding chart depicted the BTC/USD order book on Binance, highlighting a scarcity of substantial liquidity beyond $25,000, thereby increasing the likelihood of rapid and significant price shifts.
Other Stories:
Ordinal Inscriptions Maintain Dominance on Bitcoin Network Despite Price Dip
New DeSo Network Friend.tech Generates Over $1 Million in 24 Hours
UK Prime Minister Allocates £100 Million to Acquire Computer Chips for AI Advancement
Hong Kong’s HashKey cryptocurrency exchange is gearing up to introduce Bitcoin and Ether trading services for retail clients from August 28, as reported by local media.
A unique feature of this offering is that investors can allocate a maximum of 30% of their total net worth to cryptocurrencies on the platform.
This milestone achievement was made possible after HashKey successfully upgraded two significant licenses granted by the Securities and Futures Commission (SFC) of Hong Kong, becoming the first crypto exchange in the region to gain regulatory approval for extending crypto trading services to retail investors.
The initial license, classified as Type 1, empowered HashKey to establish a virtual asset trading platform within the boundaries of Hong Kong’s securities regulations.
The second license, referred to as Type 7, bestowed the exchange with the authority to furnish automated trading services to both individual and institutional users.
Following suit, OSL, another crypto platform, also secured the SFC’s green light to introduce retail trading services for Bitcoin and Ether.
This strategic move has positioned Hong Kong as one of the pioneering jurisdictions that officially permit cryptocurrency retail trading in accordance with the law.
READ MORE: New DeSo Network Friend.tech Generates Over $1 Million in 24 Hours
Hong Kong embarked on a journey to cultivate a crypto-friendly atmosphere within its borders in 2023. Financial Secretary Paul Chan expressed the government’s and regulators’ commitment to fostering a flourishing crypto and fintech ecosystem.
In March, over 80 crypto firms expressed their intent to establish a presence in the region.
The Hong Kong Monetary Authority (HKMA) further endorsed this stance by urging banks to facilitate services for cryptocurrency enterprises.
By May, HKMA unveiled a licensing structure for crypto platforms, with a deadline set for June 1.
Subsequently, a few crypto platforms received the nod to extend crypto trading facilities to both retail and institutional clientele by August.
The significance of a robust regulatory framework that safeguards investor interests is particularly evident in Hong Kong’s case.
HashKey’s decision to limit retail traders to Bitcoin and Ether underscores the exchange’s commitment to meeting their needs while ensuring prudential standards are maintained.
Despite attempts to solicit comments, HashKey remained unresponsive to inquiries from Cointelegraph as of the time of publication.
Other Stories:
Bitget Cryptocurrency Exchange Enhances KYC Procedures to Align with Global Regulations
Ordinal Inscriptions Maintain Dominance on Bitcoin Network Despite Price Dip
UK Prime Minister Allocates £100 Million to Acquire Computer Chips for AI Advancement
Earlier this year, a novel concept known as Ordinals emerged, causing a stir in the Bitcoin community.
Ordinals introduced a distinctive marking on the smallest unit of Bitcoin, the Satoshi.
While some dismissed it as spam, others embraced it as a bridge for BRC-20 tokens and NFTs onto the Bitcoin platform. This innovation sparked a series of advancements.
Now, attention is shifting to “recursive inscriptions,” a complex but potentially powerful evolution.
Recursive inscriptions offer the promise of enabling more intricate functionalities on the Bitcoin blockchain, similar to Ethereum’s smart contracts.
Enthusiasts believe that recursive inscriptions could catalyze Ordinals’ progression from NFTs and digital artifacts to forming the foundation for a comprehensive decentralized finance (DeFi) ecosystem on Bitcoin.
There are also expectations that it could facilitate Bitcoin’s expansion into competing with decentralized storage provider IPFS, or even the creation of an interconnected on-chain supercomputer.
Stanford PhD Danny Yang, the creator of OCM Dimensions and a Bitcoin enthusiast since 2013, regards recursive inscriptions as the key to the next phase of Bitcoin’s evolution.
He envisions them enabling the emergence of valuable digital assets beyond just NFTs.
While these advancements remain speculative and early-stage, they are rejuvenating interest in Bitcoin.
Despite being a subject of criticism for not covering Bitcoin extensively, it’s now evident that meaningful developments are unfolding.
Danny Yang has been actively working on recursive inscriptions since February, demonstrating their potential through projects like OCM Dimensions and OCM Genesis.
READ MORE: UK Prime Minister Allocates £100 Million to Acquire Computer Chips for AI Advancement
These projects showcase the possibilities unlocked by recursive inscriptions, marking a significant turning point in people’s understanding of their significance.
Recursive inscriptions expand the horizons of Bitcoin applications by interlinking data through a chain of calls, much like smart contracts.
This functionality enables the hosting of complex data sets on the Bitcoin blockchain, such as video and audio files, which was previously unfeasible.
Furthermore, these inscriptions can be reused, drastically reducing storage costs.
This mechanism offers a multitude of possibilities, from hosting open-source libraries on-chain to enabling applications like on-chain AI, effectively building a community-driven public infrastructure.
Although still in its infancy, the potential impact of recursive inscriptions and smart contracts on Bitcoin is vast.
They could pave the way for a Bitcoin-native DeFi ecosystem and challenge data storage conventions through the blockchain’s decentralized nature.
This wave of innovations is transforming Bitcoin’s image and fostering a new era of development driven by creators and developers.
In conclusion, the emergence of Ordinals and subsequent recursive inscriptions is reinvigorating Bitcoin’s landscape.
These developments hold the potential to redefine Bitcoin’s role, from being a simple currency to a dynamic platform for diverse applications.
As the Bitcoin community begins to grasp their implications, a future filled with possibilities is emerging.
Other Stories:
Bitget Cryptocurrency Exchange Enhances KYC Procedures to Align with Global Regulations
Ordinal Inscriptions Maintain Dominance on Bitcoin Network Despite Price Dip
New DeSo Network Friend.tech Generates Over $1 Million in 24 Hours