2021 has become a pivotal year for Cryptocurrency as every single day major companies around the globe are increasing their crypto assets or investing heavily in the next unicorn. Here on our weekly update, we keep you updated on the most essential topics from last week.
The crypto market is mooning!
During last week the crypto market saw an amazing surge with the total market cap reaching $2.32T. Bitcoin saw a rise of 23.33% last week as the price approached record highs and hit $55,000 for the first time since May as the largest cryptocurrency by market cap again became a $1T asset.
According to many, the price of Bitcoin is rocketing due to expectations of Bitcoin ETF approval by the SEC. At the moment there are at least 13 high-profile companies that have applied for a spot crypto ETF. Among them are NYDIG, VanEck, and Galaxy Digital.
On the other hand, it seems like the regulator is not in a hurry to approve any of these applications as the agency pointed out that the market is volatile and prone to speculations.
Despite this head of the SEC, Gary Gensler, has shown support for a Bitcoin Futures ETF which he believes will be more suitable for investors.
Such a Futures product has been criticized by many crypto investors who prefer a spot Bitcoin ETF that will allow them to trade a regulated product whose value represents the current price of the underlying asset.
SEC approves an ETF for "Bitcoin revolution companies"
On a similar note the SEC took another step forward and approved a new fund Crypto Stock ETF. Managed by Volt Equity the fund will not have direct cryptocurrency exposure but will be built contain a portfolio of "Bitcoin Revolution Companies" which themselves have a significant amount of the cryptocurrency on their Balance sheets.
In a public announcement in June, Volt Equity said that 25% of the fund's assets would include stocks of MicroStrategy, a software business company but Volt founder Tad Park clarified in a later statement that the percentage may be lower than expected.
Park added that the fund will contain shares of approximately 30 companies, including Tesla, Square, Coinbase, PayPal, and Twitter. Similar to other ETFs, the fund has an annual management fee of 0.85%.
The fund will trade under the symbol BTCR on the New York Stock Exchange and is expected to launch in the next few weeks.
Grayscale added Solana and Uniswap to one of its investment funds
Crypto investment company Grayscale added Solana and Uniswap to its Digital Large Cap Fund which has $495 million in assests under its management. This is the first time the business has added Solana to its Fund.
According to data from Grayscale, Solana consists of 3.25% of the fund's portfolio and UNI is 1.06%. To make space for the new replenishments Grayscale decreased its Bitcoin position by 5%. However currently, the leading cryptocurrency is still the dominating component at 62%, followed by Ethereum at 26%. The other Cryptocurrency exposure is predominantly in Litecoin, Bitcoin Cash, and Chainlink and Cardano which also had its exposure increased from 4.26% to 5.11%.
Militsa Dimitrova is a crypto enthusiast with experience in content creation & social media, who produces her own Cryptocurrency Newsletter and Podcast both in English and Bulgarian. She joined FXCM as an Accountant in 2020, after obtaining a Bachelor's degree in Accounting from the University of National and World Economy of Sofia.