2024-03-11 08:51

Mudrex is a Y-Combinator-backed, California-headquartered entity with a subsidiary registered with the Intelligence Unit of India. Indian cryptocurrency investment platform Mudrex is now offering U.S. spot-bitcoin exchange-traded funds (ETFs) to Indian investors. Mudrex will initially list four spot ETFs – BlackRock, Fidelity, Franklin Templeton and Vanguard. Indian cryptocurrency investment platform Mudrex plans to offer U.S. spot bitcoin (BTC) exchange-traded funds (ETFs) to institutional and retail investors in India, CEO and co-founder Edul Patel said. "This is much more valuable to institutions, as this was already available to retailers," Patel said in an interview with CoinDesk. Retail clients in the country could access spot-bitcoin ETFs through U.S. stock investing companies, but "as far as we know" we are the first in India to offer this service to institutions, Patel said. "We are certainly the first Indian crypto platform to offer this service." In the first phase, Mudrex will list four spot ETFs – BlackRock, Fidelity, Franklin Templeton and Vanguard. Mudrex, which is backed by Y-Combinator and based in California, has a subsidiary registered with the Intelligence Unit of India. It also has a toehold in the European Union, with licenses in Lithuania and Italy. The firm will ensure the processing of the actual transaction through broker partners in the U.S., while the Indian subsidiary will facilitate the spof-bitcoin ETF service, Patel told CoinDesk. The development is unprecedented because India's crypto regulatory environment is divided between the central bank, the Reserve Bank of India (RBI), and the government led by the Finance Ministry. The RBI has been staunchly against crypto, also stating recently that India doesn't need to emulate the U.S. on its position around crypto ETFs because its economy cannot afford such risk. However, the Finance Ministry's Intelligence Unit has registered more than two dozen Indian crypto service providers and imposed stiff taxes on the sector. While the two agree on the need to protect the Indian economy and investors, their regulatory focus can appear to differ. "The bitcoin spot ETF works as a security and Indians are allowed to purchase securities under the Liberalised Remittance Scheme (LRS) and, as a result, users or institutions specifically, who do want to get access to bitcoin can now start using the bitcoins through ETFs to diversify their portfolio," Patel said. The LRS simplifies overseas investments for Indians. The overall LRS limit, as prescribed by the Reserve Bank of India, is $250,000 a year. Mudrex will facilitate investing in spot bitcoin ETFs on its platform with a minimum investment of $5,000 and a maximum of $250,000. "The LRS is the tricky part for most people and over there (in the U.S.), because we also have strong banking relationships, we're able to help users do these transactions in a very seamless way, and that's why these services are important," Patel said. Patel also said that among the 350 institutions that work with the company, about 20 have initiated the process of joining and he expects volumes with the average ticket size of $110,000. Read More: India's Local Crypto and Web3 Advocacy Body Asked for Action Against Offshore Entities: Source https://www.coindesk.com/business/2024/03/11/indian-crypto-investment-platform-mudrex-to-offer-us-bitcoin-etfs-to-indian-investors/

2024-03-11 08:11

Products would be available to professional investors while retail consumers remain banned, the regulator said. The regulator won’t object to the creation of a crypto asset-backed ETN market for professional investors. The crypto-backed products are ill-suited to retail investors who remain banned from trading these products, FCA said. The London Stock Exchange said it will accept applications for bitcoin and ether-backed ETNs in Q2, 2024. The U.K.’s Financial Conduct Authority (FCA) said it will not object to requests from Recognised Investment Exchanges (RIEs) to build a listed market segment for crypto asset-backed exchange-traded notes (ETNs), the regulator said in a press release on Monday, a further sign of the increased institutionalization of cryptocurrency markets. The products would be available to professional investors, including investment firms and credit institutions, the FCA said. ETNs are a type of exchange-traded product, often issued by a bank or an investment manager, that tracks an underlying index or assets. Exchanges will be responsible for making sure sufficient controls are in place so that trading is orderly and proper protection is given to professional investors, the regulator said. The London Stock Exchange confirmed that it will accept applications for bitcoin (BTC) and ether (ETH) ETNs in the second quarter of this year. Bitcoin broke past the $71,000 barrier and ether crossed $4,000 on Monday. Meanwhile, the broader CoinDesk 20 index (CD20) rose 0.5%. Retail investors, however, are still banned from trading these products. The regulator continues to believe that crypto asset-backed ETNs and cryptocurrency derivatives are ill-suited for retail consumers, and because of this, the ban on the sale of crypto ETNs to retail consumers remains. The FCA reminds people that cryptocurrencies are high-risk and that investors should be prepared to lose all their money. https://www.coindesk.com/policy/2024/03/11/uks-fca-opens-the-door-for-institutional-investors-to-build-crypto-backed-etn-market/

2024-03-11 07:24

The leading cryptocurrency had crossed $70,000 for the first time ever last week. The leading cryptocurrency topped $71,000, while ether crossed $4,000. The U.K.'s FCA removed objections to crypto-based ETNs, opening the gates for more institutional involvement in crypto. The Bank of Japan could lift the benchmark interest rate above zero this month. Bitcoin (BTC) crossed $71,000 for the first time ever during the Asian trading hours on Monday. The leading cryptocurrency has been steadily rising since the approval of the spot bitcoin exchange-traded funds in the U.S. The token crossed $70,000 for the first time ever last week. Ether (ETH) also crossed $4,000 on Monday. Meanwhile, the broader CoinDesk 20 index (CD20) jumped nearly 1%. The rally has lifted the annualized three-month futures premium on major exchanges, including Binance, to above 25%. The elevated premium could attract cash and carry traders, boosting overall market liquidity. Founders of newsletter service LondonCryptoClub attributed the price rise to the London Stock Exchange’s decision to accept applications for bitcoin and ether exchange-traded notes (ETNs) and the illiquid Asian market conditions. "It’s a confluence of factors. Asia is buying in an illiquid market coupled with continued positive news, with the London Stock Exchange just announcing it will take applications for BTC and ETH ETNs. The powerful demand-supply dynamic from the BTC ETFs continues unabated," founders said. "Meanwhile, the macro, which had been a headwind, has now become a tailwind as U.S. rates and the dollar appear to have topped out and are turning lower. Additionally, as we approach key resistance levels, short-term speculative traders trying to call a top, short into these key levels and then get liquidated, causing a pseudo negative gamma effect which propels us higher," founders added. The U.K.'s Financial Conduct Authority on Monday opened the doors for institutional investors to create crypto asset-backed exchange-traded notes. The London Stock Exchange later confirmed that it would accept applications for bitcoin and ether ETNs in the second quarter of this year. Asian stocks dropped Bitcoin’s move to new peaks came even as Asian equity indices slipped, with Japan’s Nikkei and Australia’s ASX falling 2% after a Reuters report said the Bank of Japan could lift the benchmark interest rate above zero this month. Some analysts have long warned that BOJ is a major source of uncertainty for both traditional and crypto markets. That said, the consensus is that any bitcoin dip is likely to be short-lived, thanks to the supply-demand imbalance created by the recent strong inflows into the U.S.-listed spot ETFs and the impending reward halving. https://www.coindesk.com/business/2024/03/11/bitcoin-vaults-over-70k-hits-new-highs/

2024-03-11 07:07

The BOJ has long been seen as a major source of uncertainty for financial markets, including cryptocurrencies. Bitcoin traded slightly higher in Asia as Japan’s Nikkei index fell over 2%. Bank of Japan, the last bastion of low-interest rates, could soon fall, Reuters said. Bitcoin (BTC) traded slightly higher early Monday as talks that the Bank of Japan (BOJ), the last bastion of ultra-low interest rates, could fall soon rocked the Asian equity markets. At the time of writing, the leading cryptocurrency by market value was changing hands at $69,000, up over 1% on a 24-hour basis. Prices briefly hit a low of $67,120 earlier in the day, having set a new record high above $70,000 on Friday. The CoinDesk 20 Index, a broader market gauge, was down 2.17%. Asian equity indices slipped, with Japan’s Nikkei and Australia’s ASX falling 2% after a Reuters report said the Bank of Japan could lift the benchmark interest rate above zero this month. Bets that BOJ will plug the plug at its March 18-19 meeting have gathered traction, according to Bloomberg. That would be the BOJ’s first rate hike since 2007. Reuters report added that the bank could ditch the bond-buying program after ending the negative interest rate policy. Some analysts have long warned that BOJ is a major source of uncertainty for both traditional and crypto markets. Since 2016, the BOJ’s NIRP and bond-buying program have been a major source of downward pressure for global government bond yields, helping support asset prices. The central bank maintained a pro-liquidity stance over the past two years even as its peers, including the U.S. Federal Reserve, raised rates rapidly to combat inflation. However, the BOJ is now under pressure to raise rates, thanks to domestic inflation running well above its target and the rising probability of wage hikes. The Japanese yen is rising, boasting a 2% weekly gain against the U.S. dollar at press time. The potential unwinding of BOJ’s pro-liquidity stance and resulting yen strength will likely jeopardize the yen carry trade, which may have greased the ongoing year-long risk-on rally in financial markets, including technology stocks and cryptocurrencies. A carry trade involves borrowing low-interest fiat like the yen and investing in high-yielding. Crypto bulls might want to monitor a potential BOJ-led decline in stocks, particularly shares in technology firms. That’s because, as in previous bull runs, bitcoin’s latest move to record highs has coincided with the outperformance of rate-sensitive technology stocks relative to the broader U.S. equity market. The ratio between Wall Street’s tech-heavy index, Nasdaq (NDX), and the S&P 500 (SPX) rose to record highs in January. That said, the consensus in the crypto market is that any dip in bitcoin is likely to be short-lived, and prices could rally into six figures in the coming months. https://www.coindesk.com/markets/2024/03/11/bitcoin-tentative-asian-stocks-slide-on-boj-rate-hike-talks/

2024-03-11 06:51

Social media users wonder if the display marks “cycle top” behavior. Dogwifhat community members are raising $650,000 to put the meme on the Vegas Sphere. Such behavior may mark a local top, some say, but the donation address has met less than 50% of its goal more than 24 hours since going live. A recent run-up in meme coins is leading some communities to do things that usually signify frothy market behavior – depending on whom you ask. Followers and community members of the runaway Solana hit Dogwifhat (WIF) are publicly raising funds to display the meme picture of a dog wearing a pink beanie cap on the Las Vegas Sphere. The Sphere is a spherical entertainment venue that seats over 18,600 people, and the outside is a gigantic display panel that completely wraps around its dome. The dome can reportedly be rented out for $450,000 a day to display whatever its purchaser wants. “WE’RE PUTTING A HAT ON THE SPHERE,” a donation page that went live early Sunday reads. It has raised nearly $300,000 of a targeted $650,000 as of Monday morning. Donations are only accepted in USD Coin (USDC) stablecoins to a wallet controlled by five individuals. Blockchain data shows donation amounts range from $1 to as much as $9,999. Some developers have even floated a “Sphere Wif Hat” token, with hopes of it pumping so much that the donation goal is met. Meanwhile, the effort has left X users divided on whether the WIF display is a sign of a cycle top, where crypto millionaires typically turn to doing whimsical things, or an advertisement that would further popularize WIF. https://www.coindesk.com/markets/2024/03/11/dogwifhat-community-plan-to-put-the-meme-on-the-vegas-sphere/

2024-03-09 22:49

The activist investor has previously mostly steered clear of any involvement in crypto. Pershing Square Capital Management founder and CEO Bill Ackman turned some of his attention to Bitcoin (BTC) on Saturday afternoon, cheekily suggesting a scenario in which the price for the world's largest crypto could soar far higher than anyone might imagine. "Bitcoin price rise leads to increased mining and greater energy use, driving up the cost of energy, causing inflation to rise and the dollar to decline, driving demand for Bitcoin and increased mining, driving demand for energy and the cycle continues," said Ackman in a post on X. "Bitcoin goes to infinity, energy prices skyrocket, and the economy collapses," he continued. "Maybe I should buy some Bitcoin." "The problem of course is that it also works in reverse," he later added. Unsurprisingly, Ackman's post drew quick response from many in the Bitcoin community, including from MicroStrategy (MSTR) founder and Executive Chairman Michael Saylor, who offered to speak to Ackman directly on the subject. "You should buy some bitcoin, but not for the reasons cited above," said Saylor. "Most bitcoin miners are driving the cost of electricity down for other consumers, not up. Let me know if you would like to discuss 1 on 1." Ackman mostly has steered clear of bitcoin and crypto in general, though in 2022 said he was a small investor in some crypto projects and crypto venture funds. "I invest more as a hobbyist trying to learn than as a careful investor," he said at the time. https://www.coindesk.com/business/2024/03/09/billionaire-hedge-funder-bill-ackman-mulls-bitcoin/