Daily Archives: January 14, 2022

British Lawmakers Say a CBDC Is Likely to Hurt Financial Stability — Digital Pound Benefits Overstated

According to British lawmakers, a central bank digital currency (CBDC) is likely to raise the cost of borrowing while hurting financial stability. They insist the touted potential advantages of a digital pound are being overstated.

Erosion of Privacy

British lawmakers have said the use of a central bank digital currency when making regular payments could potentially hurt financial stability and raise the cost of borrowing, a report has said. In addition, they insist the increasing use of the CBDC could also enable the central bank to monitor spending and therefore erode privacy.

As per a Reuters report, the lawmakers believe the benefits of CBDC may have been exaggerated and that there are other ways the U.K. can counter the threat posed by cryptocurrencies. One of the lawmakers who is quoted in the report speaking out is Michael Forsyth. He said:

We were really concerned by a number of the risks that are posed by the introduction of a CBDC.

Forsyth, who is the Economic Affairs Committee chairperson, also said the touted benefits of having a CBDC had been “overstated.” He suggested these benefits can still be achieved with a less risky alternative such as the regulation of crypto-issuing tech companies.

Lawmakers Want Parliament to Have a Say

In a report tabled by Forsyth’s committee to the British parliament, the lawmakers nevertheless acknowledge that a wholesale CBDC, which can be used to move large funds, will potentially result in more efficient securities trading and settlement. However, the lawmakers still want the central bank and the finance ministry to weigh the benefits of using the CBDC versus the expansion of the existing system.

Forsyth is quoted in the report arguing that lawmakers must have a say before the Bank of England and the U.K. Treasury are allowed to proceed with issuing the CBDC.

“[A CBDC could have] far-reaching consequences for households, business and the monetary system. That needs to be approved by parliament,” Forsyth is quoted stating.

Do you agree with the British lawmakers’ views on CBDCs? Tell us what you think in the comments section below.

FTX Launches $2 Billion Venture Capital Fund Focused on Bolstering Blockchain, Web3 Adoption

FTX Launches $2 Billion Venture Capital Fund Focused on Bolstering Blockchain, Web3 Adoption

The cryptocurrency firm FTX has announced the launch of a $2 billion venture capital fund called FTX Ventures. The fund’s focus will be on advancing blockchain and Web3 technology alongside investments in “social, gaming, fintech, software, and healthcare.”

FTX Reveals $2 Billion Venture Capital Fund, Hires Lightspeed Partner Amy Wu

FTX Trading Limited has announced the launch of a new venture capital fund aimed at bolstering blockchain and cryptocurrency solutions that are applied to an assortment of different industries. In addition to launching FTX Ventures’ $2 billion venture capital fund, the company has hired former Lightspeed Ventures partner, Amy Wu. According to the announcement, Wu will lead FTX Ventures’ gaming, M&A and commercial initiatives.

The venture capital fund announcement sent to Bitcoin.com News explains:

FTX Ventures’ core mission is to advance global blockchain and web3 adoption, with a broad investment mandate across social, gaming, fintech, software, and healthcare. The fund will invest in multi-stage companies and projects, providing flexible funding and strategic support from FTX and its network of global partners.

Wu says that she looks forward to working alongside FTX CEO Sam Bankman-Fried and she remarked that FTX Ventures looks forward to supporting businesses and entrepreneurs. “We’re particularly excited about web3 gaming and its ability to bring mainstream audiences into the ecosystem,” Wu said in a statement.

FTX CEO Sam Bankman-Fried Is ‘Excited to Find Disruptive Innovation’

FTX has been making a great number of moves during the last 12 months with a significant focus on sports and entertainment. Last year, FTX partnered with Monumental Sports Entertainment (MSE), Sports Illustrated, the Los Angeles Angels’ Shohei Ohtani, the global esports firm TSM, Green Bay Packers running back Aaron Jones, the Mercedes-AMG Petronas Formula One team, and seven-time Super Bowl winner Tom Brady and his supermodel wife Gisele Bündchen.

During the first week of November 2021, FTX joined Solana Ventures and Lightspeed in order to launch a $100 million blockchain gaming fund. “Our investors at FTX have made a deep impact in supporting our growth and development,” Sam Bankman-Fried said on Friday in regard to the new venture capital fund. “We strive to do the same at FTX Ventures and are excited to find the brightest minds and disruptive innovation in tech,” Bankman-Fried added.

What do you think about the new $2 billion venture capital fund called FTX Ventures? Let us know what you think about this subject in the comments section below.

Kingdom of Tonga May Adopt Bitcoin as Legal Tender, Says Former Member of Parliament

Kingdom of Tonga May Adopt Bitcoin as Legal Tender, Says Former Member of Parliament

The Kingdom of Tonga may adopt bitcoin as legal tender, according to a former member of Tonga’s parliament, Lord Fusitu’a, who tweeted about a possible timeline for this event to occur. Fusitu’a believes that by next fall a bill will be passed by Tonga’s parliament and bitcoin could be legal tender in the region by November.

Former Member of Tonga’s Parliament Lord Fusitu’a Claims Bitcoin Bill Could Be Passed in Order to Make the Crypto Asset Legal Tender

Tonga’s chairman of the Commonwealth Pacific Parliamentary Group on Human Rights, Lord Fusitu’a, is a bitcoin advocate and on January 11, he explained on Twitter that the Kingdom of Tonga’s government may adopt bitcoin as legal tender. The news follows El Salvador’s push to make bitcoin (BTC) legal tender last year. A few months ago, the law was codified by the Salvadoran congress and BTC was deemed legal tender in El Salvador.

Lord Fusitu’a, who was once a member of Tonga’s parliament, claims the same thing will happen in Tonga. On Tuesday, an individual asked Lord Fusitu’a what the ETA was in regard to the Polynesian country legalizing bitcoin as tender.

“Sept/Oct Bill goes to Parliament. Passed,” Lord Fusitu’a replied. “[It gets] sent to Palace Office for submission to His Majesty for Royal Assent. A month – HM, as advised by Privy Council, assents to Bill. 2-3 Weeks Gazetted by Govt activation date set.”

Lord Fusitu’a added:

On activation date [bitcoin] becomes legal tender.

Former Lawmaker Claims Bitcoin Bill to Be Submitted in the Fall, Lord Fusitu’a Discussed Benefits of Tonga Adopting Bitcoin Last Year

After Lord Fusitu’a tweeted out the five-point plan, a person asked whether or not “the bill passed already, or is it still with Parliament and ‘passed’ is the goal?” Lord Fusitu’a replied to the question and said: “The Bill will be submitted to the House in Sept/Oct. [Parliament] opens for [a] new session in June. June by law = National Budget. By Law, July Constituency visits. By Law August – Govts Legislative package for the year. By law, Sept/Oct Private MPs Bills may be tabled.”

It’s not the first time Lord Fusitu’a has hinted about Tonga legalizing bitcoin as tender in the country. On July 5, 2021, on the podcast What Bitcoin Did episode 368, the former member of Tonga’s parliament explained how bitcoin adoption would be beneficial to Tonga.

“The economy will first benefit by every customer having a disposable income increased by 30% and because our country imposes a 15% VAT, every person is putting an extra 30% into that 15% VAT, because they’ve got an extra 30% disposable income just from the rails,” Lord Fusitu’a said on the show.

On the podcast, Lord Fusitu’a further explained:

Simultaneously with that extra 30%, there’s some are going to be saving it rather than putting it into the economy and stacking sats which will appreciate. For the first time, someone who’s a village fisherman, and has been hand to mouth all his life, has a glimpse at possibly having savings that might be the foundation for financial freedom.

As of now, it is uncertain whether or not Tonga’s active parliamentary members and the Tongan people will be willing to adopt bitcoin as legal tender. While El Salvador passed the bitcoin law, which was enacted on September 7, 2021, there was some opposition toward the government’s decision. Since then, president Nayib Bukele and the Salvadoran government have been adding BTC to the treasury and a bitcoin mining farm powered by volcanic energy was introduced.

What do you think about the former member of Tonga’s Parliament hinting about the country adopting bitcoin as legal tender? Let us know what you think about this subject in the comments section below.

Tesla Begins Accepting Dogecoin Payments — Some Merchandise Can Only Be Purchased With DOGE

Tesla Begins Accepting Dogecoin Payments — Some Merchandise Can Only Be Purchased With DOGE

Tesla now accepts dogecoin for some merchandise on its website. CEO Elon Musk delivered on the promise he made in December that his electric car company will accept DOGE. Meanwhile, Tesla still has not resumed accepting bitcoin.

Dogecoin Now Accepted for Select Tesla Merchandise

Elon Musk’s electric car company, Tesla, has begun accepting dogecoin payments for some merchandise. CEO Elon Musk announced early Friday morning on Twitter, “Tesla merch buyable with dogecoin.” He first tweeted in December last year that Tesla will accept DOGE.

Tesla Begins Accepting Dogecoin Payments — Some Merchandise Can Only Be Purchased With DOGE

Following Musk’s tweet, dogecoin immediately surged about 10% but has since lost most of its gain. The price of the meme crypto is $0.1913 at the time of writing based on data from Bitcoin.com Markets.

Tesla’s shop now has a few items that can only be bought with the meme cryptocurrency. They include a Cybertruck Graffiti Cuffed Beanie that costs 205 DOGE; a Giga Texas Belt Buckle that costs 835 DOGE; a Cyberquad for Kids that costs 12,020 DOGE; and a Cyberwhistle that costs 300 DOGE.

Tesla’s website details:

Tesla only accepts dogecoin … Non-dogecoin digital assets sent to Tesla will not be returned to the purchaser.

Prior to Tesla activating the dogecoin payment option, some people on social media noticed that the source code on Tesla’s vehicle payment pages contains the word “dogecoin.” However, Tesla has not made an announcement whether dogecoin will be accepted for vehicle purchases.

Bitcoin.com News has verified that the code behind the payment page for a Tesla Model Y contains “dogecoin.”

Musk, who has been named Time Magazine’s “Person of the Year,” has long been a supporter of dogecoin. He has said several times that DOGE is best for transactions whereas bitcoin is better suited as a store of value.

In October last year, the Tesla boss revealed that lots of people he talked to on the production lines at Tesla or building rockets at Spacex own DOGE. “They aren’t financial experts or Silicon Valley technologists. That’s why I decided to support Doge — it felt like the people’s crypto,” Musk explained.

Meanwhile, Tesla still has not resumed accepting bitcoin for payments. The electric car company began accepting BTC in March last year but stopped in May citing environmental concerns. Musk later said that Tesla will resume accepting BTC “When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.”

Nonetheless, Tesla still holds BTC on its balance sheet worth about $1.26 billion at the end of Q3. While the company does not own any DOGE, Musk previously said that he personally owns dogecoin, bitcoin, and ether.

Do you think Tesla will soon accept dogecoin payments for all products? Let us know in the comments section below.

Swiss National Bank Trials CBDC in Transactions With Five Banks

Swiss National Bank Trials CBDC in Transactions With Five Banks

The Swiss National Bank has successfully employed a wholesale CBDC to settle transactions with five commercial banks, the monetary authority announced. The tests are part of an experiment carried out together with the Bank for International Settlements and Switzerland’s financial services provider SIX.

Swiss Central Bank Tests Integration of Wholesale CBDC Settlement With Private Banks

A wide-range of transactions involving a wholesale central bank digital currency (CBDC) have been processed during the second phase of Project Helvetia, the Swiss National Bank (SNB) revealed in a press release issued on Thursday.

The trials are conducted as part of a joint initiative between the SNB, the Bank for International Settlements (BIS), and SIX, the main provider of financial infrastructure services in Switzerland. Five commercial banks also participated – Citi, Credit Suisse, Goldman Sachs, Hypothekarbank Lenzburg, and UBS.

The experiment, which took place in the last quarter of 2021, explored the settlement of interbank, monetary policy, and cross-border transactions on the test systems of SIX Digital Exchange (SDX), the Swiss real-time gross settlement system SIX Interbank Clearing (SIC), and core banking systems, SNB detailed.

The Swiss central bank and the other banks integrated a wholesale CBDC in their existing back-office systems and processes. SNB notes that in the future, a growing number of financial assets will be tokenized while financial infrastructures will run on distributed ledger technology (DLT). Regulators may need to cover tokenized asset markets in their monetary policies, the authority said and elaborated:

International regulatory standards suggest that operators of systemically important infrastructures should settle obligations in central bank money whenever practical and available. While none of the existing DLT-based platforms are systemic yet, they may become so in the future.

“To continue fulfilling their mandates of ensuring monetary and financial stability, central banks need to stay on top of technological change. Project Helvetia… allowed the SNB to deepen its understanding of how the safety of central bank money could be extended to tokenized asset markets,” added Andréa M. Maechler, member of the bank’s governing board.

The Swiss National Bank remarks that Helvetia is only an exploratory project, suggesting it should not be viewed as plan to issue a wholesale CBDC. In December, the SNB, along with the Bank of France and BIS, carried out another experiment, testing the application of wholesale CBDC in cross-border payments. Project Jura employed DLT and was also realized with the support of private sector companies.

Do you expect the Swiss National Bank to eventually issue a wholesale CBDC? Let us know in the comments section below.

NYCB and Group of Banks Join to Launch USDF Stablecoin

USDF

A group of U.S.-based banks is launching their own stablecoin, USDF. The stablecoin will be issued by the USDF Consortium, which will allow its members (financial and banking institutions) to issue USDF. The proposed stablecoin will be the first currency of its kind to be minted by FDIC-insured institutions and compliant with the recommendations on the use of stablecoins made by the president’s working group.

USDF Consortium to Launch Stablecoin

The USDF consortium, a membership-based group of banks, is launching the first bank-minted stablecoin, also called USDF. According to a press release issued on January 12, the objective behind this release is to remove friction by addressing “the consumer protection and regulatory concerns of non-bank issued stablecoins and offer a more secure option for transacting on blockchain.”

The USDF consortium is the entity that will authorize these banks to mint the stablecoin, which will be redeemable 1:1 in cash from any of the banks of the aforementioned consortium. The founding members of this consortium include institutions like the New York Community Bank (NYCB), NBH Bank, Firstbank, Sterling National Bank, and Synovus Bank. Figure Technologies, Inc. and Jam Fintop are founding members as well.

Targeting Defi, Payments, and Settlements

Stablecoins are a big part of what decentralized finance is about at this moment, and the USDF consortium is targeting this area with the development. Figure CEO Mike Cagney stated:

USDF opens up endless possibilities for the expanding world of deFi transactions.

Figure’s systems have already used USDF to settle securities transactions involving the New York Community Bank. Andrew Kaplan, NYCB’s chief digital and banking as a service officer, remarked about the importance of this launch for moving compliant funds using modern blockchain services. According to the executive, the goal is to do things in a “way that can scale, adheres to regulatory standards, and is acceptable to all users from large institutional investors to retail customers.”

This is one of the first attempts of a block of banks to propose an alternative solution to the stablecoins that are already on the market, taking into account the recommendations on the use of stablecoins by the president’s working group. Stablecoins have become one of the sectors in the crypto industry with notable growth, surpassing the $100 billion market cap. USDT, the token issued by Tether, dominates almost half of the market cap in this category.

The New York Community Bank will be minting the stablecoin on-demand in the next weeks, according to Cagney.

What do you think about the launch of USDF? Tell us in the comments section below.

Revolut Launches Banking Services in Spain Featuring Deposit Insurance

revolut

Revolut, a leading fintech platform and neobank, has received a special banking license to operate in Spain. User deposits are now insured up to €100K, with the coverage being provided by Deposit and Investment Insurance, a Lithuanian state company. The company, which now has over 800,000 customers in Spain, expects to grow its userbase with this new development.

Revolut Customers in Spain Can Upgrade to Revolut Bank

Revolut, one of the biggest fintech neobanks in Europe, has received a special banking license in Spain, and can now offer deposit insurance to its customers. The protection of the deposited assets will be provided by a Lithuanian state company called Deposit and Investment Insurance, and it will cover amounts of up to €100K (about $115,000). To receive this protection over their assets, customers will have to upgrade their Revolut accounts to Revolut Bank accounts.

The strategy aims to keep Revolut growing in Spain after a poll made last year indicated that more than 80% of users would deposit more funds in the service if they were insured. In the same way, 60% indicated they would use Revolut to settle payments if the platform presented options for insurance.

European Expansion

Revolut, which has its origins in the U.K., has experienced significant growth in Europe, having now over 18 million customers. The platform, which is commonly used around the world to make remittances and payments, arrived in the U.S. last year.

Spain is not the first country where Revolut has applied for a banking license. It already offers these protections to customers in Belgium, Denmark, Finland, Germany, Iceland, Lichtenstein, Luxembourg, Netherlands, and Sweden, where it has managed to also offer credit products to its users. Regarding the offer of insurance to its customers, Joe Heneghan, CEO for Revolut Bank, stated:

The launch of the bank in Spain will provide a higher level of security and confidence to our customers, and will allow us to launch more products and services in the future.

Revolut has also offered cryptocurrency purchases from the app since 2017, merging fintech and crypto in one platform. One of its direct competitors in the field, N26, is only recently announcing the introduction of cryptocurrency trading, lamenting its delay in offering these services to customers.

What do you think about Revolut’s special banking license in Spain? Tell us in the comments section below.

Russia’s Tinkoff Bank Enters Crypto Space Through Swiss Company Acquisition

Russia’s Tinkoff Bank Enters Crypto Space Through Swiss Company Acquisition

The Russian neobank Tinkoff is joining the world of cryptocurrencies with the purchase of a stake in Aximetria, a Swiss-registered and licensed company which provides clients around the world with services and solutions for digital financial assets.

Tinkoff Bank Buys Stake in Aximetria


TCS Group Holding, the owner of the Russian Tinkoff Bank, has reportedly acquired a controlling stake in the crypto company Aximetria. Official numbers are yet to be announced but according to The Bell, which broke the news quoting financial market sources, TCS Group may now control up to 83.2% of the Swiss-incorporated entity which was founded by Russians.

Quoted documents from Aximetria reveal that on Nov. 9, TCS Group bought 4,449 shares at 100 Swiss francs ($110) each, and the total share capital of the company amounted to 534,700 francs. Its representatives told the news portal that the details of the transaction will be published in accordance with the established disclosure standards in the group’s annual reports.

Russia’s Tinkoff Bank Enters Crypto Space Through Swiss Company Acquisition

“Aximetria will develop as part of the international expansion of the Tinkoff Group in compliance with all the requirements of the jurisdictions of international presence,” the company added. Its website confirms the acquisition, noting that the startup is already part of TCS Group Holding PLC. It also points out that Aximetria was among the first companies to receive permission from the Swiss Financial Market Supervisory Authority (Finma) to process crypto transactions.

In an interview with CNBC last year, Tinkoff Group CEO Oliver Hughes stated that although investors who want to put money into cryptocurrency are qualified and know what to do, Tinkoff Bank is unable to provide them with such services because of the stance of the Russian financial regulator on the matter. “Currently, we don’t have a mechanism to offer them this product in Russia, because the Central Bank is taking a very tough position,” Hughes commented.

Deal Deemed Positive for Crypto Sector


Commenting on the acquisition, Nikita Zuborev, senior analyst at crypto exchange aggregator Bestchange.ru, told the Russian business news portal RBC that any inflow of capital from the traditional financial market into the crypto space can be regarded as a positive long-term factor and a certain guarantee for stability and acceptance. He emphasized that the deal will open another gateway between the traditional financial system and the crypto industry.

Maria Stankevich, director of development at Exmo, a leading cryptocurrency exchange in Eastern Europe, remarked that the purchase of a crypto startup by Tinkoff Bank’s parent company is “interesting and bold” for the Russian market. She expects this investment to compel other Russian banks, like Alfa-Bank for example, to think about similar opportunities.

Even after the adoption of the law “On Digital Financial Assets,” which went into force a year ago, cryptocurrencies and related activities are yet to be comprehensively regulated in the Russian Federation. The Central Bank of Russia remains opposed to their legalization and wants to restrict crypto investments for Russian citizens.

Recently, Russia’s largest and state-owned banking institution, Sberbank, also ventured into the crypto space by offering the country’s first blockchain ETF. The instrument was introduced to the market despite a statement by Bank of Russia’s Governor Elvira Nabiullina in October insisting that the monetary authority was not prepared to allow the trading of bitcoin ETFs.

Do you expect more Russian banks to acquire stakes in crypto companies? Tell us in the comments section below.

Near Foundation Raises $150 Million to Bolster Web3 Adoption

On Thursday, the Near Foundation announced the project has raised $150 million from strategic investors such as Three-Arrows Capital, a16z, Mechanism Capital, Dragonfly Capital, and Circle Ventures. Following the announcement, the Near protocol’s native crypto asset jumped more than 7% against the U.S. dollar.

Near Foundation Gets a $150 Million Capital Injection


The team behind the sharded Near blockchain protocol, a proof-of-stake (PoS) network, has raised $150 million in capital in a recent finance round led by Three-Arrows Capital. According to the funding announcement, Mechanism Capital, Dragonfly Capital, a16z, Jump, Alameda, Zee Prime, Folius, Amber Group, 6th Man Ventures, Circle Ventures, and Metaweb.vc also participated.

The Near Foundation’s Medium blog post notes that the funding will be dedicated to “accelerating mass adoption of Web3.” “We are excited to support the NEAR team and ecosystem as they scale blockchain applications,” Kyle Davies, the co-founder and chairman of Three Arrows Capital said in a statement on Thursday. Following the announcement, the price of NEAR, the protocol’s native token jumped 7.7% according to 24-hour metrics against the USD.

30-Day Statistics Show Near Gained 111% Against the US Dollar, Rainbow Bridge Is the 6th Largest Cross-Chain Bridge TVL


NEAR has done considerably better than most coins during the last few weeks, the last month, and the course of 12 months as well. NEAR is up 28.2% over the last two weeks, 30-day stats indicate NEAR has risen 111% and the crypto asset gained 1,236.5% in 12 months. The digital currency is ranked 17 out of 12,447 crypto coins today with a market valuation of $2.1 billion at the time of writing.

NEAR’s market cap represents 0.54% of the crypto economy’s $2.1 trillion in value on Thursday afternoon (EST). Amos Zhang, founder of Metaweb.vc complimented the benefits of the Rainbow Bridge and Near’s multichain compatibility. “With multichain interoperability of Rainbow Bridge, Aurora (EVM), Octopus (Substrate), and NEAR native’s Nightshade sharding technology, NEAR is best suited for empowering blockchain applications for mainstream adoption,” Zhang said.

At the time of writing and according to metrics from the Dune Analytics’s chart called “Bridge Away (L1 Ethereum),” the Rainbow Bridge has $478 million total value locked (TVL). The bridge holds the sixth-largest cross-chain bridge TVL below chains like Polygon, Avalanche, and Ronin. The Near team will leverage the new funding to accelerate the adoption of the protocol’s regional hubs and “raise awareness for the brand.”

According to the announcement, the funds build upon the aggregate of $65.9 million raised by the Near Foundation prior to the latest raise. Digital Currency Group (DCG), Baidu Ventures, Electric Capital, Coinbase Ventures, Pantera Capital, and Blockchain.com previously backed the Near project.

Near further claims that it has already established “communities in Asia, Africa, and Europe, and is looking to help support emerging communities in Latin America, Turkey, and India.”

What do you think about the Near Foundation raising $150 million from strategic investors? Let us know what you think about this subject in the comments section below.

Bitcoin ETF Launch Hype Fades as Funds Slip in Value, BTC Futures Open Interest Down 38% in 2 Months

Following the charged-up debut of the Proshares bitcoin exchange-traded fund (ETF), Valkyrie’s bitcoin futures ETF and the Vaneck bitcoin strategy ETF, interest in these types of funds seems to have faded a great deal. After the Proshares bitcoin ETF BITO reached an all-time high on November 10, the ETF is down 39% over the last 64 days. Valkyrie’s bitcoin ETF has also shed 37% in value over the last two months.

Bitcoin Futures ETF Lull Continues


A large portion of the cryptocurrency community was very hyped up for years about the launch of the first bitcoin exchange-traded fund (ETF), as a number of bitcoin ETF applications were denied prior to 2021.

Finally, when the first U.S. bitcoin futures ETF was approved, the debut of Proshare’s bitcoin futures ETF smashed records, capturing close to $1 billion in total volume during the first 24 hours. Months later, the Proshares Bitcoin Strategy ETF (BITO) is exchanging hands for $26.96 on January 13, 2022, but that price is 39.12% lower than the 44.29 high on November 10, 2021.

Bitcoin ETF Launch Hype Fades as Funds Slip in Value, BTC Futures Open Interest Down 38% in 2 Months

Bloomberg author Katherine Greifeld explained in mid-November that the “bitcoin futures ETF frenzy is fading.” “While the Proshares fund absorbed $1.1 billion in just two days — the quickest an ETF has ever done so — that pace of growth has cooled considerably,” Greifeld said at the time.

The financial author further discussed the Vaneck ETF, as she noted that lower management fees could differentiate the fund from the rest. At the time, Greifeld quoted Bloomberg Intelligence senior ETF analyst, Eric Balchunas, who said:

There’s definitely a lull going on right now relative to the launch mania and so Vaneck has their work cut out for them in trying to get people excited again.

Valkyrie’s BTF Down 37%, Vaneck’s XBTF Is Down 27%, Aggregate Bitcoin Futures Open Interest Across Cryptocurrency Exchanges Slid by More Than 38%


The same can be said for the Valkyrie Bitcoin Strategy ETF (BTF) when it reached an all-time high (ATH) of $26.67 per share on November 9, 2021, and today it’s changing hands for $16.70 per unit or 37.38% down from the ATH.

Bitcoin ETF Launch Hype Fades as Funds Slip in Value, BTC Futures Open Interest Down 38% in 2 Months

The Vaneck Bitcoin Strategy ETF (XBTF) is only down 27.70%, as the ETF exchanged hands for $58.08 per unit on November 19, 2021, and today it’s trading for 41.99 per unit. While Proshares and the Valkyrie ETFs debuted well before Vaneck’s offering, all of the funds have a strong relationship with spot price of bitcoin and the crypto asset’s futures markets.

Bitcoin ETF Launch Hype Fades as Funds Slip in Value, BTC Futures Open Interest Down 38% in 2 Months

Futures markets have seen a decline in open interest, as total bitcoin futures open interest across cryptocurrency exchanges has declined since mid-November as well. The highest number of bitcoin futures open interest was on November 11, 2021, with over $28 billion.

Today, the aggregate open interest across the most popular derivatives exchanges is $17.22 billion. That equates to a loss of 38.50% over the last two months and the pattern is quite similar to bitcoin’s (BTC) spot market price action.

What do you think about the three bitcoin futures ETFs and their overall performance during the last few months? Let us know what you think about this subject in the comments section below.