Monat: Juli 2023

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Why is the Verge (XVG) price soaring? It’s up 295%

  • At press time, the price of XVG token had soared 295% over the past seven days.
  • The token was trading at $0.006906.
  • The Verge’s market cap has also gone up by almost 400% over the past three weeks.

What started as a slow steady bull case for the Verge (XVG) token has turned into a monster Bull Run after the token price went up by about 300% on June 3. And although the price has slightly pulled back from the June 3 high, it is still 295% high compared to where it was seven days ago.

Verge was long considered dead after it drastically dipped at the beginning of 2023 at a time when most of the cryptocurrencies showed some signs of recovery from the 2022 bear market. However, all that started to change in mid-June when the current bull trend started.

Verge (XVG) price chart. Source Coinmarketcap

 

While the Verge investors and traders are excited about the current bull case for the token, most crypto investors are still sceptical about the upward movement as questions of why the token is taking a ride ringer. In this article, we shall explain why the Verge (XVG) token price is rising.

Increased Verge (XVG) activity

In addition to the price surging, the Verge has also experienced an increased trading volume, which skyrocketed by a staggering 380% on June 4 to a record $507 million. And although the trading volume had dropped to $480 million at press time, the figure still shows there is still a high trading activity.

In addition to the increased market activity, there are speculations of possible manipulation by seasoned cryptocurrency investors otherwise known as crypto whales who could be angling to dispose of their large XVG holdings at a profit. While this is not confirmed, it is important to be careful when trading cryptocurrencies since they are extremely volatile assets.

The post Why is the Verge (XVG) price soaring? It’s up 295% appeared first on CoinJournal.

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Anthony Pompliano expects SEC to eventually approve a Spot Bitcoin ETF

  • Pompliano says underlying fundamentals of Bitcoin are strengthening.
  • He expects a Spot Bitcoin ETF to be a meaningful catalyst for BTC.
  • Bitcoin is currently up a whopping 85% versus the start of the year.

Anthony Pompliano agrees that Bitcoin could see friction in the near term but remains bullish on the digital asset for the long term.

Pompliano shares his view on Bitcoin

The Founder of Pomp Investments is constructive because the underlying fundamentals related to the world’s largest cryptocurrency by market cap are improving.

Bitcoin is anti-fragile. We see hash rate hitting all-time highs. We see adoption hitting all-time highs. People are realizing its value and they’re putting all sorts of capital into the network.

The total supply of Bitcoin is slated to halve in April of 2024 which has historically served as a catalyst for its price.

At writing, BTC is already up about 85% versus the start of the year.

Is a Spot Bitcoin ETF coming soon?

Pompliano is also convinced that the U.S. SEC will eventually approve a Spot Bitcoin ETF which will likely be another tailwind for the cryptocurrency.

His comments follow a recent wave of applications for such an exchange-traded fund that the regulator has already dubbed inadequate. Still, Pompliano said today on CNBC’s “Squawk Box”:

It’s a small detail that is more of a formality. We’re watching Wall Street saying we want access to BTC. So, when it [spot bitcoin ETF] happens, a lot of people will pour capital into it.

He’s confident in particular because among notable names that have recently filed for a Spot Bitcoin ETF is BlackRock that has a history of going for an exchange-traded fund only when it’s convinced it will get approval.

The post Anthony Pompliano expects SEC to eventually approve a Spot Bitcoin ETF appeared first on CoinJournal.

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SEC’s spot Bitcoin ETF approval “fairly high”: Bernstein

  • $650 billion asset manager Bernstein believes there’s a good chance of a spot Bitcoin ETF approval.
  • The SEC’s argument for denial of a spot ETF while approving futures ETFs is unlikely to convince the court in the Grayscale vs SEC case.
  • The regulator is likely to approve a spot ETF by a regulated Wall Street giant than deal with OTC products like GBTC, analysts at Bernstein noted.

On July 2, Gemini co-founder Cameron Winklevoss tweeted that it has been 10 years since the Winklevoss twins filed the first spot Bitcoin ETF. Over the decade, the SEC has denied multiple proposals, a scenario that continues even as the crypto market’s outlook shifts increasingly optimistic.

The case is even more pronounced after a flurry of applications involving mainstream Wall Street giants like BlackRock, Fidelity and Invesco.

Among those to voice the latest optimistic tone over the approval of a spot Bitcoin ETF is brokerage firm Bernstein, CoinDesk reported today.

According to experts at the firm, who shared their insights in a research report, the SEC’s approval of futures Bitcoin ETFs and the leveraged futures ETF allowed last week, all leave the regulator with little room to maneouvre in terms of continuing to deny a spot ETF.

The case for a spot ETF

The SEC’s contention that futures pricing is from regulated exchanges such as the CME, as opposed to spot prices that come from crypto exchanges like Coinbase, remains. However, with major asset managers signaling towards market surveillance agreements to address possible manipulation, basically puts the SEC in the spot.

Grayscale’s case against the SEC, which relates to the regulator’s disapproval of a proposal to convert the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF, is another reason why an approval is highly likely.  

[Read more: Grayscale to convert its GBTC to a Bitcoin ETF]

Analysts at Bernstein say that the court is likely not to be “convinced that the futures price is not derived from the spot price.” They also opine that allowing the futures ETFs and not disapproving spot ones could be “a difficult pill to swallow for the courts.”

Their report sums up the outlook thus:

“SEC would rather bring in a regulated bitcoin ETF led by more mainstream Wall Street participants and with surveillance from existing regulated exchanges, than having to deal with a Grayscale OTC product filling the institutional gap.”

Market experts see the SEC’s recent quick feedback on recently filed proposals, which has seen Cboe BZX refile spot ETFs for several firms naming Coinbase as the exchange they are having a surveillance sharing agreement with, as a good first step.

Nasdaq has also refiled BlackRock’s ETF proposal, naming Coinbase as the crypto exchange with the SSA.

The post SEC’s spot Bitcoin ETF approval “fairly high”: Bernstein appeared first on CoinJournal.

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Thailand introduces new digital asset service providers’ regulations

  • Thailand’s SEC has introduced new regulations ensuring investor protection from digital asset service providers.
  • Digital asset providers will also not be able to provide digital assets deposited by users for loans or investments.
  • The new regulations require providers to clearly disclose the risks that may arise from trading cryptocurrencies.

In order to prioritize investor protection, Thailand’s Securities and Exchange Commission (SEC) introduced new rules for companies that provide services for digital assets.

The rules now require crystal-clear risk warnings for cryptocurrency trading. A clear warning about the possible risks associated with trading digital assets must also be provided by providers of digital assets in accordance with the new regulations.

The Thai SEC stated that the warning message, along with the disclosure of the outcomes of the investment suitability assessment and appropriate asset allocation, must be displayed prominently. According to the rules, service providers must make sure customers consent and understand the risks before using their services.

Restrictions on lending and deposit services

The new guidelines place restrictions on the deposit and lending services provided by digital asset businesses in addition to risk disclosure. With the exception of certain pre-approved promotional activities, these rules forbid the provision or support of such services beginning on August 30.

According to the Thai SEC’s guidelines, it is strictly forbidden for any entities other than businesses dealing in digital assets to promote or otherwise influence deposit-taking and lending services.

On September 1, 2022, the Thai SEC approved the requirement that cryptocurrency business operators disclose security warnings about the risks of trading cryptocurrencies, starting a dialogue on investor protection regulations.

The post Thailand introduces new digital asset service providers’ regulations appeared first on CoinJournal.