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July 2007

GBTC Makes Massive Move Thanks to Crypto Bull Market

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GBTC

GBTC

The GBTC (Grayscale Bitcoin Trust) has made a massive move this year with a gain of 250% and outperformed all other assets classes.

Over the past few years, Bitcoin has become one of the most intriguing investment opportunities for thousands of people across the world, and it is only natural, considering the sort of highs the cryptocurrency has reached in recent years. However, as everyone knows, Bitcoin and cryptocurrencies at large can be extremely volatile in nature, which is why even interested investors sometimes stay away from it.

That being said, it is now possible for investors who want to be exposed to Bitcoin to own a stock that could benefit them anytime BTC price climbs. The stock in question is that of the Grayscale Bitcoin Trust (GBTC), which is involved in both owning and tracking Bitcoin.

Key Analysis

In this regard, it is important to note that the price of GBTC is not directly dependent upon the market rate of Bitcoin but on the outlook of investors about the cryptocurrency. As one can realize, this is a relatively easier way for investors to be exposed to the Bitcoin space–and it’s an exciting time to be getting into crypto as there has been a significantly strong BTC bull run this year. So, if anyone is willing to buy this stock, then this is perhaps the time to get their hands on the Grayscale Bitcoin Trust. In a new development, it has emerged that the company has resumed the private placement of its shares again and the update was announced by way of a press release on July 8.

>> China’s Cryptocurrency: A Response to Facebook’s Libra Coin?

The private placement is done by the company, and only accredited investors are allowed to purchase those shares. More importantly, the announcement also stated the value of each share in GBTC is worth 0.00097876 Bitcoin, and at this point in time, the total value of the assets held by the company stands at $2.66 billion. Its assets have increased significantly over the past few months. An executive stated that an investment in Bitcoin is an excellent hedge against the growing uncertainties in the global economy.

GBTC has soared all the way from $4.50 to $16 since the beginning of 2019.

Featured image: DepositPhotos © iqoncept

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Binance Expected to Resume US Operations in the Next 2 Months

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Binance

Binance

When it comes to trading in cryptocurrencies, it is always far more effective if one can trade on a large exchange. Large exchanges offer a lot of options with regards to the range of cryptocurrencies, liquidity, and other services. Over the course of the crypto boom that started a few years ago, some exchanges have become the leaders of the industry and Binance is certainly one of those. It went on to become one of the biggest crypto exchanges and was also the preferred choice of many traders in the United States.

Key Details

However, back in June, the company announced that it was working on establishing a new division named Financial Crimes Enforcement Network, and hence, it was going to temporarily stop its services in the United States.

Regulations in the United States have always been a major issue for crypto exchanges, and Binance has also struck a partnership with BAM Trading Services so that it is compliant with regulations in the country. Considering the fact that it now has a US-based partner, Binance will be able to have a bigger presence in the market.

>> Bitcoin Hovers Around 10K After the Recent Correction: What Next?

In an interview with Cheddar, the Chief Executive Officer of Binance, Changpeng Zhao, stated that the crypto to fiat services that had been stopped in the United States could be resumed within the next two months. It is a significant development for all crypto enthusiasts in the country who have not been able to trade in the platform all this while.

Additionally, Zhao also stated that since a new partner is now available, Binance will be exploring ways to increase its presence in the American crypto market once it reopens. However, the resumption of services can never be predicted accurately, and hence Zhao refused to divulge the exact date on which the operations will resume. He said, “I don’t want to promise any fixed dates, but there’s a lot of work being done and there’s a lot of things going on in flux, but I would say in a month or two.”

Featured image: DepositPhotos © kongvector

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FCoin Closes Down, Reveals $130 Million Bitcoin Shortfall

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FCoin

FCoin

The growth in the crypto space over the past half a decade or so has been primarily fueled by the emergence of crypto exchanges like FCoin, among others. While that may be true, it should also be kept in mind that many such exchanges have floundered due to a variety of reasons, and such a thing has happened with the above-mentioned exchange.

Big Blow

In a new development, it emerged that the exchange has paused withdrawal and trading due to a significant shortfall in crypto assets. It is a problem that could potentially have an effect on the entire crypto space.

FCoin had adopted the ‘trans-fee mining’ model for the exchange, which, over the years, has been regarded as a controversial system. At this point in time, FCoin has a shortfall of as much as $130 million worth of crypto assets. The founder of the company, Zhang Jian, shared a long blog post in which he stated that the exchange is unable to process withdrawals.

The asset reserves on the exchange have apparently fallen short of its total liabilities. In the same blog post, Jian pointed out that the total shortfall is between 7,000 and 13,000 Bitcoin.

Massive Shock

The news has come as a massive shock to all crypto enthusiasts in China due to FCoin being one of the biggest exchanges in the country by trading volume. In addition to that, Jian pointed out that the exchange was neither hacked nor had it been scammed in any way.

>> Bitcoin Soars 50% So Far in 2020: Will the Momentum Continue?

He went on to state that it was difficult to explain the situation in a blog post. It is believed that due to the system in place at the exchange, FCoin users had possibly been awarded higher transaction-related mining rewards than they were entitled to.

Featured image: DepositPhotos © REDPIXEL

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Fidelity Investments will Trade Bitcoin in a Few Weeks!

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Fidelity

Fidelity

According to Bloomberg, Fidelity Investments is on the verge of buying and selling Bitcoin (BTC). Earlier this year, the firm began a custody service to store Bitcoin, but now it will evolve to trading.

Fidelity Investments Embraces Bitcoin

Fidelity is one of the largest asset managers in the world. Its newly-formed arm—Fidelity Digital Assets—will be the first of its kind to offer “over-the-counter trade execution and order routing for Bitcoin.”

The Wall Street giant is aiming its cryptocurrency trading product at institutional traders and will start with Bitcoin.

According to Fidelity spokesperson Arlene Roberts:

“We currently have a select set of clients we’re supporting on our platform. We will continue to roll out our services over the coming weeks and months based on our clients’ needs, jurisdictions, and other factors. Currently, our service offering is focused on Bitcoin.”

Wall Street Embraces

Fidelity joins brokerages E*Trade Financial Corp and Robinhood in offering cryptocurrency trading to clients. But where the latter two target retail investors, Fidelity is only targeting institutional customers.

The company released a study on May 2 stating that 47% of institutional investors believe digital assets are a good investment idea.

Mainstream Adoption

The news should be enough to spur on Bitcoin bulls. One of the greatest hurdles faced by Bitcoin is mainstream adoption. Price volatility, fraud, and theft remain major concerns for institutional investors and keep Wall Street at bay when it comes to crypto.

>> Bitfinex Plans to Sell $1 Billion Worth of LEO Tokens

Bitcoin is currently on an upward swing, having already grown more than 50% so far this year. The coin currently sells for $5,725 approximately according to CoinMarketCap. The month of May alone has seen the coin surge almost 8% as it heads toward $6,000 per coin.

What are your thoughts on Fidelity’s embrace of Bitcoin? Do you think it’s simply a matter of time before others follow suit?

Featured Image: DepositPhotos © melis82

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