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This Week in Crypto 11.07.23

  • Larry Fink sees Bitcoin as "digital gold" and an "international asset." According to the BlackRock CEO, Bitcoin has now established itself as a serious alternative asset that can be used, similar to gold, to hedge against inflation and local policy errors.


  • Nasdaq files for Valkyrie BTC ETF, listing Coinbase as its surveillance sharing partner, much like other applications over the past several weeks. Now, BlackRock, Fidelity, and other applicants will meet with the SEC in regard to their Spot Bitcoin ETF filings. This meeting should be important, as it could tell us more about the perspective that the regulator is taking.


  • Despite Coinbase facing a securities violation lawsuit in the US, the company’s stock has been on the rise recently. According to data from TradingView, Coinbase shares surged 51%, from around $52 on June 6 to $78.7 on July 7. The stock is also up around 133% over the past six months, while year-to-year growth is roughly 50%.


  • Recent trends indicate a shift in trading preferences from decentralized exchanges (DEXs) to centralized exchanges (CEXs). Spot trading volume on CEXs increased by 16.4% in June, hitting $575 billion. The increase marked the first rise in three months, according to Wednesday's CCData's Monthly Exchange Review. The combined trading volume of spots and derivatives on centralized exchanges rose 14.2% to $2.7 trillion in June. This transition showcases the evolving dynamics and growing prominence of centralized trading platforms.


  • Crypto asset investment products witnessed $136 million of inflows last week, bringing total inflows over the past three weeks to $470 million. Bitcoin remains the favored asset among investors, with $133 million in inflows, while blockchain equities experienced the largest inflows in a year at $15 million.


  • Binance has lost more than 10% of the crypto market share in the first half of 2023. The sinking market share has been blamed on regulatory crackdown and enforcement actions against Binance.


  • Ripple Labs unveils ambitious initiative to revolutionise real estate through tokenisation. Antony Welfare, central bank digital currency (CBDC) adviser at Ripple, highlighted the growing global interest in CBDCs and stablecoins emphasising that the Ripple’s team is actively exploring practical applications for CBDCs and stablecoins, focusing on tokenizing real estate assets.


  • Denmark’s regulator cracks down on Saxo Bank’s crypto investments. The country’s financial regulatory authority has directed Saxo Bank to sell off its crypto holdings. This action comes in response to current regulations that forbid banks from participating in proprietary trading.


  • The Reserve Bank of India (RBI) is currently in discussions with its counterparts from at least 18 other countries on the possibility of cross-border payments using its central bank digital currency (CBDC), the “digital rupee.


Graph of the Week

Bitcoin mining stocks have surged since the beginning of the year, outperforming spot Bitcoin prices.


♨ WGMI Valkyrie Bitcoin Miners ETF is up 254.97% YTD

♨ BTC is up 81.15% YTD


Miner revenue has increased in Q2 driven by rising BTC prices, excitement around BRC-20 tokens and the emergence of Ordinals, which have created additional revenue streams.



NFT Markets

by Gerard Barile, Principal at Wave Digital Assets


Oasys Unveils Game-Changing Updates and Partnerships for Blockchain Gaming

Oasys, a gaming-optimized blockchain platform, unveiled major updates during its Oasys Special Event at IVS Crypto 2023. The event featured presentations from industry giants like Ubisoft and Com2uS, who announced their plans to launch Web3 games on Oasys. Com2uS/XPLA partnership aims to create a thriving blockchain gaming ecosystem in Japan, integrating the highly anticipated AAA game "Summoners War: Chronicles" into Oasys. Meanwhile, Ubisoft announced its first-ever collaboration with Oasys to develop "Champions Tactics: Grimoria Chronicles," further solidifying Oasys' position as a leading blockchain platform for gaming. With updates on existing titles and partnerships, Oasys continues to revolutionize the gaming industry, fostering a supportive ecosystem for developers and offering a seamless user experience.

In addition to partnerships, Oasys introduced its second NFT project in collaboration with Bandai Namco Research Institute, focusing on the concept of "AI lifeform X NFT." Furthermore, the platform announced the development of a dedicated wallet specialized for the Oasys blockchain, enhancing the overall gaming experience. With strong alliances and a pipeline of updates and titles, Oasys is poised to become the dominant force in blockchain gaming, driving mainstream adoption and revolutionizing the industry with its gaming-optimized blockchain.


Latest News

by Sam Eisner, Associate at Wave Digital Assets


  • Mastercard is setting up a testbed, dubbed the Multi-Token Network (MTN), which will begin by exploring tokenized bank deposits, and which will be available in beta mode this summer in the U.K.

  • The NEAR Foundation, the non-profit behind the ecosystem development of the NEAR protocol, is joining with Alibaba Cloud, the Chinese tech giant’s arm for computing and storage, to accelerate Web3 growth in Asia and the Middle East.

  • The Hong Kong government established a task force for promoting Web3 development. The task force is chaired by Financial Secretary Paul Chan and is comprised of 15 non-official members from relevant sectors and key government officials along with financial regulators will participate.

  • Shares of Bitcoin Depot, the world's largest crypto ATM operator, more than doubled on their Nasdaq debut Monday following a merger with special purpose acquisition company (SPAC) GSR II Meteora (GSRM) that was valued at $885 million in August.

  • Jinan, the capital of eastern China’s Shandong Province, has started encouraging the adoption of the country’s central bank digital currency (CBDC) by introducing digital yuan payments across all its bus routes.

  • Cryptocurrency-friendly bank DBS is introducing new solutions for its customers in mainland China related to the digital yuan, also known as e-CNY

Regulatory Roundup


  • The U.S. Securities and Exchange Commission (SEC) will present its response to Coinbase's first legal defense on July 13. The date for the hearing is now much earlier than expected, prompted by a "creative" defense tactic employed by Coinbase, where in the exchange filed its first response 40 days before the deadline of August 7.

  • The Financial Services and Markets Act 2023, a reform bill in the United Kingdom, has been granted Royal Assent from King Charles, officially making it a law. Under this new law, cryptocurrency trading is recognized as a regulated financial activity. The amended Financial Services and Markets Act defines crypto assets as "cryptographically secured digital representation of value or contractual rights," considering them as regulated financial instruments, products, or investments.

  • Singapore is enforcing new crypto consumer protection measures as the city-state continues applying regulation to its burgeoning crypto industry. Chief among the new measures, the Monetary Authority of Singapore (MAS)—the country’s chief financial regulator—will enforce a ban on lending and staking for retail customers (individual traders, as opposed to institutional clients).

  • The Seoul Southern District Court on Monday held the first preliminary hearing for Terraform Labs co-founder Daniel Shin and seven other former Terraform employees.

  • Canadian securities regulators outline expectations for investment funds holding crypto assets.

  • Bitwage has halted USDC payments for US residents, citing ‘strict regulations’. The crypto payment company warned that users who fail to remove the stablecoin would have their wallet and bank accounts reset by July 13.

*PLEASE SEE IMPORTANT DISCLOSURES BELOW*



DISCLOSURE:

The opinions expressed herein are those of the author alone and do not represent Wave Digital Assets LLC or any of its affiliates. The author may hold investment positions in some of the assets discussed.


Nothing in this email or linked information should be interpreted as an offer or recommendation to buy, sell or hold any security or other financial product. Wave is federally regulated by the US Securities & Exchange Commission as an investment adviser. Registration with a federal or state authority does not imply a certain level of skill or training. Additional information including important disclosures about Wave Digital Assets LLC also is available on the SEC’s website at www.adviserinfo.sec.gov.


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