While cryptocurrencies are still struggling to break out of their price range, the Bakkt stock went parabolic. The cryptocurrency market’s new darling is up almost 6x in just two weeks, with $1 billion worth traded on its first day alone. Tom Brady has some crypto news for you too – he offered 1 BTC (or about $6k) for his 600th touchdown ball!
Every Saturday, Hodler’s Digest will keep you up to date on all of the major news stories from the previous week. A week on Cointelegraph in one link: the finest (and worse) remarks, adoption and regulatory highlights, top currencies, forecasts, and much more.
This Week’s Top Stories
After collaborating with Mastercard and Fiserv, Bakkt’s stock skyrocketed.
Bakkt (BKKT), a crypto services startup sponsored by the Intercontinental Exchange, saw its stock rise 120 percent on Monday as a result of two large deals with Mastercard and Fiserv.
Both collaborations were revealed on Monday, with Bakkt’s U.S. clients being able to purchase, sell, and keep crypto assets through custodial wallets thanks to the Mastercard agreement. Meanwhile, Bakkt will be able to provide merchant-facing digital asset services thanks to a strategic partnership with global payment provider Fiserv.
The news spurred a bullish reaction, with BKKT surging 120 percent to $30.60 by Monday’s close of trade.
The NYSE has launched the ProShares Bitcoin-linked ETF.
ProShares introduced its Bitcoin (BTC) futures-based exchange-traded fund (BITO) on the New York Stock Exchange (NYSE) on Tuesday, marking a key milestone for the crypto industry.
On its first day, ProShares’ Bitcoin Strategy ETF witnessed roughly $1 billion in activity, according to Bloomberg analysts, making it the greatest first-day volume for an ETF in terms of “natural” or “grassroots interest.”
ProShares’ ETF became the quickest fund to achieve $1 billion in assets under management after just two days on the NYSE. Many observers are eager to watch how the next in line performs after ProShares’ ETF. Valkyrie has launched its Bitcoin futures ETF on the NYSE at the time of writing on Friday.
Last week, GBTC outperformed Bitcoin ETFs in terms of returns.
While the long-awaited introduction of the first U.S. Bitcoin ETFs has generated a lot of buzz, Grayscale’s executives pointed out that the Grayscale Bitcoin Trust (GBTC) actually beat them last week.
The industry mainstay GBTC returned roughly 8.8% during a seven-day period beginning Oct. 19, while the new and flashy ProShares Bitcoin Strategy ETF fell around 0.5 percent.
Despite Grayscale’s intentions to transform GBTC into an ETF, Barry Silbert, CEO of Grayscale’s parent firm Digital Currency Group, was quick to add insult to injury by pointing out GBTC’s larger trading volumes than BITO. On Monday, GBTC had generated $374 million in volume, while BITO had generated $286 million.
The NYSE has approved Volt Equity’s ‘Bitcoin Revolution’ ETF.
On the subject of exchange-traded funds, Volt Equity’s Bitcoin ETF debuted on the New York Stock Exchange on October 28.
The Volt Crypto Industry Revolution and Tech ETF, which trades under the symbol BTCR, started at $21 in honor of Bitcoin’s 21 million BTC maximum supply. MicroStrategy, Tesla, Twitter, Square, Coinbase, and various Bitcoin mining businesses are among the companies tracked by BTCR.
According to Volt Equity, the ETF is using a management strategy based on PlanB’s Bitcoin stock-to-flow model, which is a quantitative methodology that aims to forecast BTC’s price. Volt Equity informed Cointelegraph that it would monitor Bitcoin’s market behavior and alter its exposure to mining companies if the asset’s value falls drastically.
For his record 600th touchdown throw, NFL quarterback Tom Brady awards a BTC to a fan.
Tom Brady almost lost the ball he tossed for his record 600th touchdown pass this week when wide receiver Mike Evans passed it over to a fan by mistake after scoring.
Evans didn’t seem to understand it was the quarterback’s all-time best throw at the moment. Brady, on the other hand, said after the game on Monday that he gave the fan 1 BTC in exchange for immediately returning it.
The Buccaneers also agreed to send the fan two autographed team jerseys, a helmet with Brady’s signature, Mike Evans game cleats and a jersey signed by the wide receiver, season tickets for the remainder of the year and until 2022, and a $1,000 credit toward team shop purchases. Many witnesses thought it was a poor bid, claiming that the ball might have sold for a far greater price at auction.
Last August, someone paid $3,400 for SHIB. It is currently valued at $1.55 billion.
An unnamed crypto millionaire was revealed on Thursday when their wallet address was shown to be worth $5.63 billion in SHIBA INU (SHIB).
The $3,400 investment in the dog-themed token by an unknown SHIB hodler in August 2020 was worth $1.55 billion. Since then, the investor has never spent more than $3,200 on the item in a single transaction out of a total of 44 acquisitions.
Over the last 12 months, SHIB has risen 85,437,459 percent, and the asset has momentarily displaced Dogecoin (DOGE) as a top-10 rated currency this week. On Thursday, SHIB reached a market capitalization of $40.3 billion, while DOGE was valued at $31.6 billion.
SHIB has now seen a steep drop, enabling DOGE to momentarily reclaim its position as the most popular memecoin. DOGE has a market valuation of $36.1 billion, whereas SHIB has a market cap of $38.5 billion at the time of writing.
Losers and Winners
Bitcoin (BTC) is now trading at $62,540, Ether (ETH) is trading at $4,420, and XRP is trading at $1.08. According to CoinMarketCap, the overall market cap is $2.66 trillion.
The top three altcoin gainers of the week are SHIBA INU (SHIB) at 164.03 percent, Curve DAO Token (CRV) at 58.39 percent, and Decentraland (MANA) at 54.46 percent among the top 100 cryptocurrencies.
OKB (OKB), XDC Network (XDC), and Stacks (STX) are the top three cryptocurrency losers this week, with losses of 23.74 percent, -12.94 percent, and -9.66 percent, respectively.
Read Cointelegraph’s market analysis for more information on crypto pricing.
The Most Memorable Quotes
“Anyone who does their homework […] invests in it.” Take, for example, Ray Dalio, a former Bitcoin critic who is now a Bitcoin investor.”
SkyBridge Capital’s founder and managing partner, Anthony Scaramucci
“For a consumer, investor, or organization wanting long-term inflation insurance, #Bitcoin is the most feasible alternative.”
MicroStrategy CEO Michael Saylor
“To some extent, we believe that growing restrictions might be a benefit for Coinbase’s competitive posture, especially when compared to business models that depend on uncontrolled marketplaces.”
Citi analyst Peter Christiansen
“The overall value of the digital asset market was $2.7 trillion as of yesterday.” Commodities accounted up over 60% of the $2.7 trillion. […] Given the breadth, scope, and scale of this new industry, how it interacts with and affects retail consumers, and the extent of the growth, possible financial stability problems in the future, I believe having a lead policeman on the beat is crucial.”
Acting Chairman of the Commodity Futures Trading Commission, Rostin Behnam
“Creators, owners, operators, or other individuals who retain control or sufficient influence in DeFi arrangements, even if such arrangements seem decentralized, may come within the FATF definition of a VASP if they provide or actively facilitate VASP services,” according to the FATF.
Task Force on Financial Action
“GameStop is seeking for a one-of-a-kind person to help advance the future of gaming and commerce.” Games are the locations to travel in the future, and play is dictated by the items you bring. Future designers will not only create games, but also the components, characters, and equipment that go with them. The trade below will be powered by blockchains.”
Job opening at GameStop
“I believe there’s a little bit of an awareness [from professional sports groups] that there’s something here,” she says. These days, I get very little pushback when I tell people about NFTs.”
Dapper Labs’ head of partnerships, Caty Tedman
“While there are some similarities between the 2017 bull run and this 2021 cycle, adoption is significantly bigger, open interest is higher, and crypto’s usefulness is unrecognizably farther ahead than in 2017.”
Currency.com’s CEO, Steven Gregory
The Week’s Prediction
Bitcoin’s price has dropped since October 2017, yet the ‘explosion’ is still expected before 2022.
According to statistics from Cointelegraph’s BTC price index, bitcoin’s price had some fluctuation this week, trading over $63,000 before retreating to approximately $58,000. Bitcoin’s price has now risen beyond $62,000 after the fall.
According to graphing from Twitter user Smart Crypto, zooming out on a broader time horizon than just this week finds parallels in price behavior between 2021 and 2017 (one of the crypto market’s noteworthy bull runs). The Twitter celebrity compared two charts, one from 2017 and the other from 2021, in a tweet.
Both graphs depicted the price of Bitcoin from July through the end of the year. In terms of Bitcoin’s price activity, the charts suggest that 2021 will be similar to 2017. If BTC’s chart follows the same pattern as 2017, the asset might see a significant increase in value in the near future. Smart Crypto’s message seems to be based on research by Twitter user TechDev.
The Week’s FUD
According to reports, the CFTC is looking into the decentralized prediction site Polymarket.
The Commodity Futures Trading Commission (CFTC) was rumored to be examining Polymarket, a decentralized prediction market platform located in New York, earlier this week.
Bloomberg broke the story first, citing unnamed sources who stated that the CFTC was investigating whether the business was allowing consumers to trade binary options and perform swaps that should have been registered with the financial authority.
“Polymarket is strongly dedicated to complying with relevant rules and regulations, as well as providing authorities with information that will help them with any enquiry,” a Polymarket spokeswoman stated.
Valkyrie’s leveraged Bitcoin ETF was apparently rejected by the SEC.
The Securities and Exchange Commission (SEC) of the United States rejected two Bitcoin ETF proposals from Valkyrie and Direxion on Thursday.
Direxion filed for a product that would let investors to purchase contracts that short the price of Bitcoin on Tuesday, while Valkyrie filed for a leveraged Bitcoin futures ETF the next day.
As many observers have noted, the SEC tends to prefer Bitcoin ETFs that provide direct exposure to futures contracts over funds that are directly backed by the asset or those that are leveraged and shorting-focused in this case.
Individuals and gatekeepers will be targeted by US government lawyers for crypto prosecutions.
On Wednesday, a group of high-ranking US government lawyers from the Securities and Exchange Commission (SEC), the Department of Justice (DOJ), and the Commodity Futures Trading Commission (CFTC) detailed their agencies’ guidelines for white-collar crypto enforcement.
Gurbir Grewal, the SEC’s enforcement director, said the agency is focusing on gatekeepers because “they’re the first line of defense against any sort of misbehavior more often than not.” Unregistered crypto exchanges, unregistered and fraudulent initial coin offerings, and crypto-lending platforms are all on the SEC’s radar, according to Grewal.
The DOJ’s Criminal Division’s senior deputy assistant attorney general, Nicholas McQuaid, said his office is targeting fraudulent persons in particular. According to Vincent McGonagle, interim head of the CFTC’s Division of Enforcement, regulators are concentrating on the “wild west” of decentralized finance (DeFi).
Cointelegraph’s Best Features
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Nonfungible tokens will become an important part of any brand’s marketing and digital strategy.
Why are you doing this now? The US Securities and Exchange Commission took eight years to approve a Bitcoin ETF.
The SEC has been holding its ground for years, but the real-world realities of crypto growth and maturity have made an ETF approval all but certain.
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Despite authorities’ best efforts, the city that never sleeps is one of the primary hotspots in the crypto industry.