🔴Cryptocurrency March on Capitol Hill
ETF News Stimulates Markets, Coinbase Raises Crypto Army, and Napster Is Back in the Crypto Game. This week we bring you these stories and more in cryptocurrency.
News about ETFs moved the market.
ETF developments had a variety of impacts on the cryptocurrency market this week. Ether has soared on expectations that Valkyrie will soon expand its Strategy ETF to provide access to Ether futures along with the Bitcoin futures it already offers. However, as concerns grew about a U.S. government shutdown and the review of spot Bitcoin ETFs was delayed, Bitcoin prices plummeted. Nonetheless, Bitcoin ended the month on a strong note, recording its first positive September since 2016.
US Crypto Owners Unite at Capitol Hill
Dozens of cryptocurrency executives met with lawmakers on Capitol Hill as part of a grassroots campaign organized by Coinbase to bring regulatory clarity to the industry. As part of a larger campaign, Coinbase aims to mobilize the 52 million US cryptocurrency holders to urge lawmakers to support positive cryptocurrency legislation to secure their votes in the 2024 US elections.
Kraken offers stock trading
Kraken, a leading US cryptocurrency exchange, plans to expand its services to include stock and ETF trading. The exchange plans to launch trading services in the US and UK in 2024 through a division called Kraken Securities. A license from U.S. regulators and a U.K. license it already has will facilitate its expansion to compete directly with Robinhood.
3AC co-founder arrested
Su Zhu, co-founder of defunct cryptocurrency hedge fund Three Arrows Capital, was arrested in Singapore as he was leaving the airport. 3AC was once one of the most prominent cryptocurrency hedge funds in the world, with $10 billion in assets under management. In 2022, the company filed for bankruptcy after the cryptocurrency crash and high-risk investments wiped out its assets, leaving it unable to repay its lenders.
Chase Bank bans UK cryptocurrency customers
JPMorgan’s Chase retail bank is blocking cryptocurrency transactions for UK customers due to a rise in fraud. The bank cited a surge in cryptocurrency-related fraud as the reason for its decision to ban purchases of cryptocurrency assets through Chase debit cards or transfers from Chase accounts to cryptocurrency platforms. Chase joins Natwest and Santander in restricting access to cryptocurrencies in the UK.
MicroStrategy Resumes Bitcoin Purchases
MicroStrategy, the world’s largest corporate Bitcoin holder, has resumed Bitcoin purchases, acquiring approximately 5,500 BTC for $150 million. The company’s investments, totaling $4.7 billion, are now worth $4.1 billion. MicroStrategy’s holdings of 160,000 Bitcoin are still underwater, considering the average price per coin is just below $30,000, and given Bitcoin’s recent lack of significant upward movement.
MKR price rises due to US Treasury bond issuance
The MKR token enjoyed a 45% price surge in just four weeks thanks to MakerDAO’s investment in short-term US Treasury bonds, which are currently yielding over 5%. MakerDAO is one of the largest cryptocurrency lending protocols and issuer of the stablecoin DAI. MakerDAO currently has over $2 billion of its stablecoin holdings invested in U.S. Treasury bonds.
Napster’s New CEO Has Crypto Plans
Napster’s new CEO Jon Vlassopulos has revealed plans to integrate cryptocurrency into the platform’s future, as blockchain network Algorand is one of the platform’s new owners. Vlassopulos believes Napster’s strategy will succeed by leveraging the “1000 true fans” theory, which suggests music lovers will pay more for improved access and experience.
This is what happened in the cryptocurrency market this week. I will see you next week.
