Bloomberg Crypto 03/12/2024

Summary

This Bloomberg Crypto segment discusses the latest trends in the world of decentralized finance, highlighting Bitcoin's continued rise in value, surpassing $70,000 for the year and the impact of ETFs on crypto inflows. The show features interviews with key figures in the industry, including the CEOs of Coinshares and Figure Technologies, who share insights on the acquisition of Valkyrie's ETF business and the potential for a Bitcoin exchange. The segment also touches on the future of Ethereum ETFs and the challenges faced by centralized exchanges in the wake of recent bankruptcies.

Takeaways

• 🚀 Bitcoin continues to hit new records, up about 70% this year, with significant inflows into crypto assets.
• 📈 COINSHARES has joined the ETF market with its acquisition of Valkyrie's ETF business, including its Bitcoin fund.
• 💡 The Coinshares CEO discusses the company's growth strategy and its aim to expand beyond the US and Europe.
• 🔄 Grayscale Bitcoin Trust has seen over $11 billion in outflows since the launch of Bitcoin ETFs, impacting its position in the market.
• 📉 Despite outflows, Gbtc remains the largest Bitcoin ETF, with Grayscale filing an S-1 to issue a new product to compete with cheaper ETFs.
• 🌐 The UK and Hong Kong are opening doors for crypto-backed products, indicating a global shift in the narrative around cryptocurrencies.
• 💸 Seven Hour Global's CEO predicts Bitcoin could reach $200,000 by the end of the year, driven by ETF demand and supply-demand dynamics.
• 🔄 Supply and demand dynamics for Bitcoin suggest upward pressure on price, with reduced mining rewards and high demand.
• 🌱 Seven Hour Global is working on a product that combines carbon offset credits and Bitcoin, addressing environmental concerns in investing.
• 💼 Mike Cagney's new venture, FIGURE, aims to build an interest-bearing stablecoin and launch a decentralized exchange for crypto assets.
• 📊 The discussion highlights the potential for a shift towards decentralized finance and the impact of recent bankruptcies on trust in centralized exchanges.

Q & A

What is the current status of Bitcoin according to the transcript?

Bitcoin has been continuing its record run, with a current price just shy of 72,000 USD. It has seen an increase of about 70% this year.

What significant event is Coinshares involved in?

Coinshares has completed its acquisition of Valkyrie's ETF business, which includes its Bitcoin fund, for $530 million in assets.

How does the demand for ETFs affect the crypto market?

The demand for ETFs, particularly Bitcoin ETFs, has driven a surge of inflows into crypto assets, indicating a growing interest and investment in the cryptocurrency market.

What is the current price of Ether?

At the time of the transcript, Ether is trading at just shy of $4,000, specifically at $3,991.

How has MicroStrategy's share performance been recently?

MicroStrategy's shares have been trading at their highest levels in 24 years, dating back to the year 2000. The company's shares closed higher by 4% after announcing the purchase of an additional 12,000 Bitcoin.

What is Grayscale Bitcoin Trust's current situation regarding outflows?

Grayscale Bitcoin Trust has seen more than $11 billion in outflows since the launch of Bitcoin ETFs, making it among the second most outflows of any U.S. listed ETFs this year.

What is Grayscale's response to the outflows and competition from ETFs with lower fees?

Grayscale has filed an S-1 to issue a clone of its Bitcoin trust, which would be physically backed by Bitcoin and trade under the ticker BTC with potentially lower fees to compete with cheaper ETFs.

What is the prediction for Bitcoin's price by the end of the year according to Raleigh Perdue?

Raleigh Perdue predicts that Bitcoin could hit $200,000 by the end of the year, if not higher, driven by factors such as the approval of ETFs and increasing global interest in crypto assets.

How does Mike Cagney view the future of blockchain and decentralized finance?

Mike Cagney sees a future where blockchain and decentralized finance will disrupt traditional financial systems by eliminating the need for intermediaries like introducing brokers, and allowing direct trading from wallets attached to exchanges.

What is the significance of the 2x leveraged Bitcoin ETF launched by Coinshares?

The 2x leveraged Bitcoin ETF provides investors with an innovative product that allows them to potentially amplify their gains (or losses) related to Bitcoin's price movements, reflecting Coinshares' commitment to bringing new financial products to the market.

What is the potential impact of the recent crypto exchange bankruptcies on the market?

The bankruptcies of crypto exchanges like FTX have highlighted the risks of centralized exchanges and may drive the market towards more decentralized solutions, as investors seek safer and more transparent platforms for their crypto assets.