In “This was the NEWS” we take a look at the most important news of last week. What has happened in the crypto space over the last 7 days? News items that you may have missed and you really need to read. You will find it here!
- The Grayscale (GBTC) Premium is Rising which is Good & Grayscale Launches ‘Drop Gold, Buy Bitcoin’ Promo Campaign.
Grayscale is a company that allows investors to get direct exposure to the space without actually owning any Bitcoin. During bull markets, the premium on GBTC compared to BTC usually rises and during April, it reached 43%. This is showing that investors are very interested in the space if they are willing to pay 40% premiums on an asset.
Bitcoin is sometimes referred to as digital gold. With Grayscales new promotional campaign, investors are encouraged to “Drop gold and buy Bitcoin. The purpose is to get people in the mindset that Bitcoin is like digital gold and a small allocation in their portfolios will help obtain large gains with little risk.
Read more about Grayscale here: https://www.altcoinbuzz.io/crypto-news/finance-and-funding/the-grayscale-gbtc-premium-is-rising-this-is-good/
- Facebook Is Raising Funds For Their Crypto-Payment System
Facebook has been allegedly working on their own stablecoin that can be used to send money using their apps. In order to successfully do this, they are looking to raise about $1 billion. If they succeed, it could bring billions to the company’s valuation.
Read more about Facebook’s plunge into stablecoins here: https://www.altcoinbuzz.io/crypto-news/finance-and-funding/facebook-is-raising-funds-for-their-crypto-payment-system/
- 80 Firms Spent $42 Million Lobbying Fintech
While it turns out that a significant portion of the $42 million is from the Chamber of Commerce, companies still put a lot of money into lobbying Bitcoin and blockchain. Their biggest issues lie with the IRS giving tax guidance and The Token Taxonomy Act.
Read more about fintech lobbying here: https://www.altcoinbuzz.io/crypto-news/finance-and-funding/80-firms-spent-42-million-lobbying-fintech/
- Bakkt Announces Acquisition of Digital Asset Custody Company
Bakkt has been trying to get the CFTC to approve their product for many months, with the purchase of Digital Asset Custody Company (DACC), they hope this will bring them closer to that goal. DACC “supports 13 blockchains, over 100 assets, and will serve as an important accelerator.”
Read more about Bakkt’s purchase here: https://www.altcoinbuzz.io/crypto-news/product-release/bakkt-announces-acquisition-of-digital-asset-custody-company/
5. The Data Shows Institutions Are Interested In Digital Assets
In a survey conducted by Greenwich Associates, 47% of institutional investors believe that digital assets have a place in their portfolios. While they are interested in the space, their main concerns were price volatility, custody, and infrastructure.
Read more about the survey here: https://www.altcoinbuzz.io/crypto-news/blockchain-technology/the-data-shows-institutions-are-interested-in-digital-assets/
“This was the NEWS” summary!
Regardless of what you think about institutional investors entering the crypto space, there is one thing we seemingly can all start to agree on, it’s happening. Grayscale’s Bitcoin Trust has traded as high as 43% premium compared to the BTC. This shows that there is money entering the space because when buying GBTC, you are actually buying stock in Bitcoin, instead of the actual asset. This gives companies direct exposure to the space without having to take custody of the asset and potentially lose the asset.
If the Facebook rumors are true and they are indeed creating a stablecoin then this would be great for crypto. While I wouldn’t consider their coin a cryptocurrency due to the centralization, it is a great news piece for all cryptocurrencies and it gets people used to owning and transacting in cryptocurrencies. By making cryptocurrencies “normal,” it would allow for the more normalization of real cryptocurrencies like Bitcoin and Ethereum. The key to this space is adoption and from where I sit, Facebook coin will help out a lot.