Kategorie: Crypto News

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Infosys chair Nandan Nilekani: Crypto can bring about financial inclusion

  • Nandan Nilekani says proper regulation of the crypto sector could help promote innovation among India’s youth.

Crypto investors in India are anxious to see what direction the government’s regulatory approach to digital assets takes, given a bill before lawmakers touching on the same.

While the bill is unlikely to see cryptocurrencies banned in the country, some commentators have noted that the government could adopt a tough regulatory stance.

Amid this, India remains one of the countries with the largest number of crypto users and Infosys Chairman Nandan Nilekani says crypto could be useful in bringing about financial inclusion.

A well-regulated crypto market will boost innovation

Speaking at the Reuters Next Conference on 1 December, Nilekani said crypto could provide young people a path into the financial markets.

„There is a role for crypto as assets but they obviously will have to follow all the laws and make sure that it doesn’t become a backdoor for money laundering,” the Infosys co-founder said.

According to the veteran investor, what the country needs is “a very well regulated and legal, lawful crypto market.”

In June, the Infosys chair called on Indian authorities to embrace crypto as an asset class, and he reiterated this view in his latest comments. He noted that doing so will allow for  a space where young developers can build applications around which can spring “a wave of global companies.”

Nilekani is a highly respected tech guru and his comments a day after India’s finance minister said there’s a new crypto Bill show how significant the issue of crypto regulation is in the country. According to finance minister Nirmala Sitharaman, the new Bill replaces the earlier draft, which many in the crypto space said was very harsh.

India is already one of the fastest-growing crypto markets, and although not like other major markets such as the US and China, events around digital assets in the country have often investors react in one way or the other.

The post Infosys chair Nandan Nilekani: Crypto can bring about financial inclusion appeared first on Coin Journal.

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VanEck CEO says firm will continue to push for a spot bitcoin ETF

  • VanEck’s CEO says the rejection of its application is not the end, noting in an interview that the firm “will be back.”

VanEck is not giving up on its push for a spot Bitcoin ETF, according to the firm’s CEO Jan van Eck.

The VanEck chief said this on the podcast Scoop, telling The Block’s Frank Chaparro that, despite a recent disappointment, it’s still all hands on deck as the company looks to put in new crypto funds applications.

In November, the US Securities and Exchanges Commission (SEC) recently rejected VanEck’s application for a spot Bitcoin ETF, a move that sees the US market still waiting for its first exchange-traded fund tracking the current market price of Bitcoin.

Grayscale Investments hit back at the SEC for rejecting the VanEck spot ETF, saying the regulator’s move to approve only futures ETFs showed discrepancies in its approach. The investment manager wants the agency to allow its application for a BTC product to be listed on the NYSE, stating that US investors are missing out on the opportunities that come with investing in funds that track BTC prices.

Vowing to “be back“ with yet another application, van Eck pointed to the potentially helpful responses from two members of the US Congress. He says that the letter by the policymakers to the SEC regarding the Bitcoin ETF was a plus, even if the agency acted as it did.

Notably, van Eck compared the SEC’s rejection of the product to what happened before the regulator finally allowed gold bullion ETFs. He noted that, just like in current scenarios, the US regulator was keen on gold futures ETFs before eventually approving one that tracks spot gold.

Van Eck also talked about the investment firm’s plans in jurisdictions other than the United States.  He said that while the firm remains focused on having spot crypto products launched in the US, there are efforts to expand services and products tailored to the European market.

VanECK’s futures-based Bitcoin ETF is one of three that were recently allowed by the SEC, with the other two from ProShares and Valkyrie.

The post VanEck CEO says firm will continue to push for a spot bitcoin ETF appeared first on Coin Journal.

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Grayscale says SEC’s rejection of spot Bitcoin ETF has ‘no basis’

  • The SEC recently approved three Bitcoin Futures ETFs, but is yet to allow one that tracks the cryptocurrency’s spot market price.
  • A spot ETF would allow direct exposure to BTC, with investors tracking the current spot market price of the cryptocurrency.
  • For its rejection of past spot ETF applications, the SEC has maintained the crypto sector is not ready given the potential for consumers to be exposed to fraud and price manipulation.

Grayscale has told the US Securities and Exchanges Commission (SEC) that its decisions against spot Bitcoin exchange-traded funds (ETFs) is incongruous with the regulator’s other actions related to Bitcoin futures ETFs.

In a letter the investment management firm sent to Vanessa Countryman, the SEC’s secretary, Grayscale points out some of the reasons it says explains why the securities watchdog has “no basis” to keep rejecting Bitcoin spot ETFs.

Grayscale’s letter comes days after the SEC once again rejected another physically-settled BTC exchange-traded fund, adding the proposal by VanEck to a long list of applications thrown in the dustbin.

According to the firm, which has applied to have its flagship Bitcoin Trust (GBTC) approved as a spot-based exchange-traded product (ETP), questions why the regulator has seen it fit to approve futures-based bitcoin ETFs and not one that tracks the actual cryptocurrency’s spot price.

Over the past few weeks, the SEC has allowed investments in the ProShares, Valkyrie, and VanEck futures-based ETFs. Incidentally, the approvals came on the back of comments from SEC Chair Gary Gensler that appeared to favour futures-based over spot-based Bitcoin ETFs.

“The Commission has no basis for the position that investing in the derivatives market for an asset is acceptable for investors while investing in the asset itself is not,” the firm’s letter reads.

Per Grayscale, and in reference to its NYSE Arca BTC filing, the regulator would be taking exactly the above position if it goes ahead to deny the application having already greenlighted the three Bitcoin futures products.

Grayscale believes approving the futures-based products and rejecting the spot-based applications violates the Administrative Protections Act (APA).

On 12 November, the Commission rejected the VanEck spot Bitcoin ETF, with reasons largely premised on the failure of the listing exchange to comply with the rules and requirements set out in Securities Exchange Act of 1934 (Exchange Act). Specifically, the SEC holds the view that the crypto market still cannot “prevent fraudulent and manipulative acts and practices.”

The letter states that the SEC’s grounds for rejecting Bitcoin spot ETFs follow a rationale that fails to “take account of significant regulatory and competitive developments since 2017” the first time the Commission rejected a spot BTC exchange-traded fund.

Grayscale wants the regulator to approve its application to list and trade BTC on the NYSE, noting that despite the cryptocurrency becoming extremely popular as an investment asset, US investors have no access to a product that closely reflects its spot prices.

The SEC is expected to give its initial verdict on the Grayscale BTC product before the end of the year.

The post Grayscale says SEC’s rejection of spot Bitcoin ETF has ‘no basis’ appeared first on Coin Journal.

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Digital asset investors to be wary of “bumps in the road,” Animoca Brands’ Yat Siu says

  • An explosion in demand for NFTs and growth in the metaverse sector has seen digital assets such as Axie Infinity (AXS), Decentraland (MANA), and The Sandbox (SAND) soar.

  • Animoca Brands’ Yat Siu says the sector has seen “China-like growth” but believes investors must brace for a short term slowdown

Yat Siu, the co-founder and chairman of Hong Kong-based gaming firm Animoca Brands, says the digital asset space is facing potential “bumbs in the road” following an explosive growth trajectory over the past year.

Siu says there’s still a lot of demand for assets in the non-fungible token (NFT) and metaverse sectors, with investors eyeing gains likely attracted by recent profits for some of the leading digital assets linked to virtual worlds.

But while he thinks the industry remains locked on long-term growth, the outlook in the short term might not be so great for investors.

Speaking at a Reuters panel on the metaverse on 30 October, the Animoca Brands chairman noted that it’s not just crypto or the NFT space that faces a tricky outlook in the short term. According to him, the forecast that markets are likely to hit rough terrain also applies to the broader financial market.

Siu compares the growth within the metaverse space to China’s explosive economic growth over the past 30 years.

He says people might not see the comparison, but all the factors that supported that kind of growth are there. In this, he points to increased demand as compared to China’s population growth, and broader adoption across crypto to the rapid industrial expansion in the country.

Siu says that long term, investors are likely to be fine but would need to take a cautious approach short term.

“The metaverse is the equivalent [comparable to China’s growth],“ he said at the Reuters Next Conference.

Data from CoinGecko shows that the total NFT market cap currently stands around $66.8 billion, with the valuation seeing a 1.3% downside over the past 24 hours. The metaverse sector has a market cap of $36 billion, about 3% down on the day.

But despite the slowdown, NFTs and metaverse linked tokens have had a staggering 2021, with mega price moves for tokens like Axie Infinity, Decentraland, and The Sandbox. 

NFTs sales have fetched crazy prices in the marketplace too, hitting over $10 billion in the third quarter alone. The space is expected to grow even further as creations and virtual property continue to sell for millions of dollars.

The post Digital asset investors to be wary of “bumps in the road,” Animoca Brands’ Yat Siu says appeared first on Coin Journal.

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Fundstrat’s Tom Lee: Jack Dorsey’s departure from Twitter is “bullish for crypto”

  • Dorsey, also the CEO of payments firm Square, stepped down on Monday

  • Tom Lee says its people like Dorsey who can marshal support for crypto innovation

  • Square has increasingly set itself as a pro-Bitcoin firm, including unveiling plans for a bitcoin decentralised exchange

Jack Dorsey’s decision to exit Twitter as the firm’s CEO could end up benefiting cryptocurrency, Fundstrat Global Advisors co-founder and managing partner Tom Lee has said.

Dorsey, who stepped down on Monday and plans to focus on payments firm Square, is also a vocal supporter of crypto (more so the pioneer cryptocurrency Bitcoin (BTC)).

Notably, it’s Square that might be at the center of Dorsey’s focus on crypto and Bitcoin innovation, an outlook that sees Lee opine that the ex-Twitter CEO’s exit is bullish for cryptocurrency.

Lee notes that the crypto space doesn’t have “enough capital actually allocated toward crypto innovation.” During an interview with CNBC’s “Tech Check”, the Fundstrat chief explained that its people like Dorsey have the capacity to really invest and marshal support for broader crypto development.

Square taking steps towards crypto innovation

Square, MicroStrategy and Tesla are three of Wall Street’s biggest bitcoin-invested companies, with the addition of BTC on the firm’s balance sheet contributing to increased revenues amid rocketing prices. But that’s not all.

Square’s focus on making it easier for people to invest and spend their BTC has been gaining traction lately and could accelerate now that Dorsey could be fully immersed at the company.

In July, the payments firm announced plans to have the Bitcoin network work with decentralised finance (DeFi) applications. In October, Dorsey revealed that the platform was considering setting up a solar Bitcoin mining operation.

Other than that, Square announced in June that it was working on a Bitcoin hardware wallet targeted at institutional investors and is in the process of developing a decentralised exchange (DEX) as detailed in a recently released whitepaper.

The spike in crypto interest has been driven by major developments in the DeFi, NFTs, and currently Metaverse sectors. Yet, Lee thinks Square’s Dorsey could do even more, telling CNBC that he doesn’t believe the burgeoning cryptocurrency sector “is over-invested yet.”  

Lee’s perspective resonates with that of GK ETF founder and CEO Ross Gerber, who also believes Dorsey’s resignation from Twitter makes sense and could be beneficial to Square Inc.

According to Lee, cryptocurrency provides for the “intersection of financial services and technology,” which means it potentially touches on “literally 60% of the economy.”

Meanwhile, the Fundstrat exec sees Black Friday’s markets sell-off as “horrific” and a massacre largely driven by panic selling. The downside was also heightened by the shortened trading day in the equities markets. But he notes that it offered a window of opportunity to investors.

Bitcoin is trading around $56,986 at the time of writing, about 1.3% down on the day and nearly 18% off since reaching its all-time peak of $69,044 on 10 November.

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