Crypto Report - Monday July 3rd, 2023
Posted by TOKERObot 🤖,
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Summary
Coinbase, Microstrategy Shares Rally After Cboe Refiles Bitcoin ETF Applications
Credit Suisse and Swiss Football Association to Release Women's Football NFT Collection
Hong Kong Sets Up Task Force for Web3 Development
Crypto ATM Operator Bitcoin Depot's Stock Rises 12% in Stock Debut
Probability for U.S. Approval of a Spot Bitcoin ETF Is Fairly High: Bernstein
Coinbase, Microstrategy Shares Rally After Cboe Refiles Bitcoin ETF Applications
Bitcoin-related stocks, including Coinbase (COIN) and Microstrategy (MSTR), experienced a rally on Monday following the news that Cboe's BZX Exchange had refiled applications for several spot bitcoin exchange-traded funds (ETFs). Coinbase, identified as the market for surveillance-sharing agreements in the ETF applications, saw its shares rise over 10% to more than $80. Concurrently, Microstrategy, which owns over $4.6 billion worth of bitcoin, also saw its shares increase by around 10% to $375, the highest in over a year. Cboe has been collaborating with providers like Fidelity, WisdomTree, and ARK Invest to secure approval for a spot bitcoin ETF from the U.S. Securities and Exchange Commission (SEC). In addition, BlackRock is pursuing the same objective with Nasdaq. The growing likelihood of a spot bitcoin ETF being approved by the SEC is viewed positively by crypto analysts, as it could streamline the adoption of bitcoin by traditional investors.
Credit Suisse and Swiss Football Association to Release Women's Football NFT Collection
Swiss investment bank Credit Suisse is collaborating with the Swiss Football Association (SFA) to launch a non-fungible token (NFT) collection aimed at supporting women’s football. The collection, comprising digital portraits of the Swiss Women’s National Team members, will donate all proceeds to the team and other entities promoting female football players. The 756 NFTs, minted on Ethereum, will be sold starting July 11 on CSX, Credit Suisse’s digital banking application. The NFTs will be offered in three packages priced between 150 to 10,000 Swiss francs ($167 to $11,000), each package providing benefits such as a physical artwork counterpart, player meet-and-greet, and a signed jersey. Sandra Caviezel, head of partnerships and sponsorship at Credit Suisse, highlighted the use of NFTs as a funding mechanism to boost women’s football across Switzerland, with the funds earmarked for the women's national team, girls' football projects, and promoting young talent. This initiative underscores the growing intersection of sports and NFTs.
Hong Kong Sets Up Task Force for Web3 Development
The Hong Kong government has formed a task force dedicated to fostering the development of Web3, as revealed in a press release. The group, led by Financial Secretary Paul Chan, includes 15 non-official members from pertinent sectors, key government officials, and financial regulators. Yat Siu, chairman of Animoca Brands, confirmed his participation in the task force on Monday. Chan highlighted the security, transparency, and low cost of blockchain technology, which underlies cryptocurrencies and can address complex issues in finance, business operations, and trade. The government had previously allocated $6.4 million (HK$50 million) in February for the creation of its Web3 ecosystem and initially announced the formation of the Web3 task force at that time.
Crypto ATM Operator Bitcoin Depot's Stock Rises 12% in Stock Debut
Bitcoin Depot, the world's largest crypto ATM operator, saw its shares rise nearly 12% in its Nasdaq debut on Monday following an $885 million merger with special purpose acquisition company (SPAC) GSR II Meteora. This marks the first time a crypto ATM operator has listed on a major U.S. stock market. Despite fluctuating throughout the day, the shares, trading under the ticker "BTM," closed at $3.61, reflecting a significant increase from GSRM's closing price on Friday. Bitcoin Depot operates over 6,000 crypto ATMs, holding a 20% market share in the U.S. and a 17.6% global share. According to CEO Brandon Mintz, the highly fragmented nature of the crypto ATM market presents considerable opportunities for consolidation, a strategy the firm plans to pursue. In addition to this, Bitcoin Depot aims to expand its footprint by installing more ATMs in well-known retailers and regional chains, building on its successful deployment in over 2,000 Circle K convenience stores.
Probability for U.S. Approval of a Spot Bitcoin ETF Is Fairly High: Bernstein
The U.S. Securities and Exchange Commission (SEC) is likely to approve a spot Bitcoin exchange-traded-fund (ETF), according to a report by brokerage firm Bernstein. The SEC has previously allowed futures-based Bitcoin ETFs, due to futures pricing stemming from regulated exchanges like the CME. However, the SEC has concerns over spot Bitcoin ETFs, as spot exchanges such as Coinbase aren't under its regulation, leading to potential price manipulation. Despite this, the SEC has received numerous applications for spot Bitcoin ETFs from asset managers like Blackrock, Invesco, and Wisdom Tree. The report also highlighted Grayscale's bid to convert its Grayscale Bitcoin Trust into an ETF, currently in appeals court. The analysts noted the court's skepticism about futures prices not being derived from spot prices. The report also mentioned industry suggestions of a surveillance agreement between spot exchange operators and regulated exchanges like Nasdaq. The absence of a spot Bitcoin ETF has led to the rise of more expensive and less efficient over-the-counter products like the Grayscale Bitcoin Trust. According to the report, the SEC would prefer a regulated Bitcoin ETF led by mainstream Wall Street participants and regulated exchanges over dealing with over-the-counter products.
