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With today’s 17% gain, the BCH has now more than doubled in the week since it was listed on EDX Markets, a new crypto exchange backed by financial heavyweights.

HSBC’s customers in Hong Kong have in fact been able to trade such crypto investment products since they were listed on the Hong Kong Stock Exchange in December.

Crypto exchange Binance has withdrawn its license application with the Financial Market Authority of Austria, according to FinanceFWD.

“We are unable to share details of our conversations with regulators, however we remain committed to acting in compliance with our obligations wherever Binance operates,” a Binance spokesperson told The Block when contacted to comment on FinanceFWD’s report on the withdrawn Austrian application. “Our current focus in Europe is on ensuring that we will be in full compliance with the requirements of MiCA [Markets in Cryptoassets] when it is implemented at the end of next year.”

Binance withdrew the Austrian application some time ago, according to the FinanceFWD report that cites sources familiar with the matter. The Austrian regulator reportedly exerted pressure behind the scenes. The company is said to have set up Binance Austria GmbH last year, intending to obtain a license for the subsidiary.

Binance cutting down EU entities

Austria adds to the list of European markets Binance has moved to exit in recent weeks. Earlier this month, Binance said it was leaving the Netherlands after failing to receive regulatory approval. Also this month, Binance applied to deregister in Cyprus and canceled its registration with the U.K. Financial Conduct Authority. The company currently holds registrations in other EU countries, including Italy, Spain, and France, where it is reportedly under investigation for alleged money laundering.

Last week, Belgium’s financial regulator ordered Binance to cease all services in the country.

Binance is currently also embroiled in a legal battle with regulators in the United States. The U.S. Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission both sued the exchange and their owner Changpeng Zhao for allegedly violating federal laws and not registering the exchange in the U.S.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

BlackRock’s filing for a spot bitcoin ETF earlier this month could be a “significant turning point in bitcoin’s path to institutional acceptance,” Ark Invest said in an emailed note on Monday.

“BlackRock’s decision to file for a Bitcoin ETF signals that large institutional players are positive on the long-term outlook for the digital asset,” Ark analyst Yassine Elmandjra wrote. 

BlackRock’s June 15 filing has been followed by other asset managers looking to launch their own spot bitcoin funds including Invesco, WisdomTree and Valkyrie. Ark had previously filed for a similar fund on April 25 with 21 Shares.

BlackRock’s work with Nasdaq on bitcoin ETF

“While it looks much like previous ETF filings, BlackRock worked with Nasdaq to distinguish its application with a unique surveillance-sharing agreement designed to prevent the risk of bitcoin-related market manipulation,” Elmandjra said. “Based on our research, however, other applicants will be able to amend their filings with similar agreements at little cost.”

The price of bitcoin has surged since the BlackRock filing, rising 15.3% over the past week. It’s currently trading at $30,410, according to CoinGecko. 

CoinShares, meanwhile, reported the largest inflows into crypto investment products since July 2022, with $199 million pouring into funds last week. Of that, bitcoin was the biggest winner, with inflows totaling $188 million. 

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

The first $15 million will be drawn shortly after closing the deal, while another $15 million is conditional on closing a merger with peer USBTC.

Crypto miner Hut 8 has snagged a $50 million credit facility from Coinbase Credit, the company said in a statement on Monday.

Proceeds from the loan will be used for general corporate purposes. The facility provides an initial $15 million term loan, and an additional $20 million delayed-draw term loan tranche.

The agreement includes the option for an additional $15 million tranche, according to the statement. The loan is secured by Hut 8’s interest in bitcoin held at Coinbase Custody Trust Company. 

“This credit facility gives us additional financial flexibility,” Hut 8 CEO Jaime Leverton said in the statement. “At the same time, it ensures that we can maintain our dynamic Bitcoin treasury management strategy going into the halving.”

 

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

A notice from Japan’s National Tax Agency redefined how taxes will apply to crypto issuers that hold onto their own tokens, CoinDesk reported.   

The issuers will no longer have to pay the capital gains tax of around 35% on unrealized gains, according to the report. 

The change in national tax code aims to bolster Japan’s crypto industry, which saw a huge exit of firms in 2021. The country, through its new tax plan, hopes to draw in more crypto businesses.

 

 

 

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

European asset management firm CoinShares reported Monday the largest inflows into crypto investment products since July 2022, with $199 million pouring into funds last week. 

In another sign the crypto market is seeing renewed enthusiasm as major asset management firms like BlackRock file for spot bitcoin ETFs, CoinShares said the gains last week corrected almost half the outflows seen in the previous nine weeks.

“We believe this renewed positive sentiment is due to recent announcements from high profile ETP issuers that have filed for physically backed ETFs with the US Securities & Exchange Commission,” CoinShares wrote. 

Bitcoin takes most of the inflows

Bitcoin took most of the gains across firms like Coinshares and Grayscale, with inflows totaling $188 million last week. Short-bitcoin saw outflows for the ninth week in a row that reached $4.9 million. Ethereum saw inflows of $7.8 million, in a move that suggests “appetite for ethereum is lower than bitcoin at present.”

CoinShares said the excitement didn’t trickle down to altcoins, with “very minor” inflows into XRP and Solana. 

“But the improved sentiment did encourage some investors to buy multi-asset investment ETPs, with US$8m inflows last week,” CoinShares said. 

Total assets under management across fund managers are now at US$37 billion, the highest level since before the collapse of 3 Arrows Capital, according to CoinShares. 

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Exodus Movement Inc., a crypto wallet provider, has added Bitcoin-backed stablecoin Sovryn Dollar (DLLR) to its balance sheet.

The initial allocation in DLLR represents around 25% of Exodus’s quarterly interest income, the company said in an announcement shared with The Block, without specifying a dollar figure.

The addition of DLLR to its corporate treasury will help Exodus access operational funds continuously without depending on banking services, according to JP Richardson, co-founder and CEO of Exodus.

“Our treasury allocation is a step towards a new era of financial control and self-custody,” Richardson said in the statement. “Besides taking its place on our corporate balance sheet, the Sovryn Dollar asset will soon be available to all of Exodus’ users across Desktop, Mobile, and our Web3 Wallet.”

Exodus was founded in 2015 and provides a multi-chain crypto software wallet. It claims to have around 4 million users. As for Sovryn Dollar, it is issued by the Mynt protocol and backed by bitcoin. “The Mynt protocol aggregates multiple bitcoin-backed stablecoins to issue an ultra-bitcoin-backed stablecoin,” reads Sovryn’s website. “You can exchange DLLR for the equivalent USD market value of bitcoin at any time.

Specifically, DLLR is currently backed by ZUSD and Money On Chain DOC, according to Sovryn’s website. “Each individual stablecoin has its own peg mechanism. ZUSD can be redeemed by any holder for the equivalent USD value in BTC. Borrowers can obtain ZUSD for as little as 110% of USD value in BTC. DOC is overcollateralized by BTC, and the system maintains a balance of supply to keep the value at 100% of USD,” per the website.

DLLR also acts as the default stablecoin of the Sovryn DeFi ecosystem for several use cases, including trading and lending.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

CEO Mike Belshe said he sees consolidation in the crypto custody sector in the next six months.