Welcome to the latest edition of the AsicZ Weekly Wednesday Roundup, where we bring you the most noteworthy news and developments from the cryptoverse. In this week’s roundup, we explore the phenomenon of Bitcoin miners selling their digital assets despite the rebound in prices, the optimistic outlook for Bitcoin’s future, including the possibility of a major rally in August, BlackRock’s spot Bitcoin ETF filing and its partnership with Coinbase, billionaire Cameron Winklevoss’ “final offer” for the bankruptcy restructuring of Genesis Global Holdco, the resurgence of institutional interest in the crypto sector, and regulatory updates from Singapore and Thailand. Stay informed with AsicZ as we delve into these important topics and provide insights into their impact on the crypto community.
Crypto Miners Are Selling Despite Rebound in Prices
Bitcoin miners, who traditionally retained the coins they produced, are selling their digital assets during the current price surge. According to Grayscale’s June newsletter, the ratio of miner revenue sent to exchanges has reached record highs in recent weeks. Many miners are doing so because they require cash, as various factors like the Texas heat and Bitcoin’s upcoming ‘halving’ event, which reduces mining rewards in half every four years, have significantly impacted their profit margins. Despite Bitcoin’s price rallying over 80% this year, miners are selling their assets to liquidate while prices are high. This move follows lessons learned in previous years where miners sold off their coins during a bear market when Bitcoin’s price was low. The continuous need to finance their operations, coupled with external factors, like fluctuating power costs and weather conditions, will likely continue to put pressure on miners, forcing them to sell their mined coins.
Major Momentum Expected For Bitcoin in August if This Scenario Occurs: Analyst
Crypto analyst Josh Rager predicts shallower pullbacks for Bitcoin, refuting the popular sentiment of a drop to $24,000. Rager believes a pullback to $25,000 might occur later in the year but anticipates more upside before this happens. He warns that a significant dip could occur if BlackRock’s Bitcoin application is rejected by the Securities and Exchange Commission (SEC), but he leans towards approval of the application, which could stimulate significant momentum for Bitcoin, possibly by August. Despite resistance above $31,000, Bitcoin has shown bullish signs, with a 15% increase over the past month, outperforming Ethereum and most altcoins. However, it should be noted that Bitcoin is still 55% down from its all-time high in November 2021.
BlackRock spot Bitcoin ETF filing names Coinbase as ‘surveillance-sharing’ partner
The latest filing in asset manager BlackRock’s attempt to launch a spot Bitcoin exchange-traded fund (ETF) involves a “surveillance-sharing agreement” with Coinbase. According to a June 29th filing with the United States Securities and Exchange Commission (SEC), Nasdaq proposed a rule change permitting the listing of BlackRock’s Bitcoin ETF. The filing detailed a June 8 agreement between Nasdaq and Coinbase, aimed to bolster the exchange’s market surveillance program by providing access to spot Bitcoin trading data. The SEC previously noted that crypto ETF filings with Nasdaq and CBOE were not “sufficiently clear and comprehensive” and suggested applicants include more information on surveillance arrangements. As of now, the SEC has not approved any spot ETF linked to crypto investments.
Billionaire Winklevoss Outlines ‘Final Offer’ in Genesis Crypto Bankruptcy
Billionaire Cameron Winklevoss, co-founder of the Gemini Trust Co. cryptocurrency platform, has put forward a “best and final offer” for the bankruptcy restructuring of digital-asset lender Genesis Global Holdco. In an open letter to Barry Silbert, founder of Genesis’ parent company Digital Currency Group (DCG), Winklevoss outlined the terms of his offer, which includes a $275 million forbearance payment, a $355 million debt tranche due in two years, and an $835 million debt tranche due in five years. The proposal stipulates that DCG would keep proceeds from the sale of Genesis Global Trading, while creditors would receive funds from the sale of all other Genesis entities. If the deal isn’t agreed by 4 p.m. Eastern Time on July 6, the Genesis Special Committee will be asked to file a motion to put DCG into default and demand immediate payment of the missed $630 million due to Genesis.
Bitcoin ETF race begins: Has institutional trust returned to crypto?
Following a period of waning institutional interest in the crypto sector amid a prolonged crypto winter in 2022 and high-profile collapses like FTX, there is renewed optimism due to multiple financial giants, including BlackRock and Fidelity, filing applications for a spot Bitcoin exchange-traded fund (ETF). This development has coincided with a recovery in Bitcoin’s price, driving renewed investment into the market. However, all past applications have faced rejection or withdrawal, and the U.S. Securities and Exchange Commission (SEC) has so far only approved a Bitcoin futures ETF. According to Bloomberg’s senior ETF analyst Eric Balchunas, BlackRock’s recent spot Bitcoin ETF filing significantly increases the chances of the SEC approving the first spot Bitcoin ETF. The resurgence of institutional interest, alongside major developments in the retail market, is seen as a bullish sign for Bitcoin and the broader crypto market, especially as the next Bitcoin halving event is less than a year away.
Singapore tells crypto operators: act like grown up financial institutions
Singapore’s Monetary Authority (MAS) will enforce regulations on digital payment operators akin to those applied to traditional financial institutions by the end of 2023. These include mandatory segregation of customer assets from the operators’ assets under a statutory trust, a ban on facilitating retail customer lending and staking (lock up of crypto assets for blockchain validation), daily reconciliation of customer assets, maintenance of proper records, and provision of risk disclosures. While independent custodians for customer assets won’t be required, operators must ensure that the operations of these assets are separate from other business units. The regulations are intended to minimize the risk of loss or misuse of customers’ assets and facilitate recovery in case of insolvency. However, MAS warns that regulations cannot fully protect consumers and advises caution when trading in digital payment tokens.
Thailand Follows Singapore, Bans Crypto Exchanges From Offering Lending Services
Thailand has announced a ban on crypto exchanges offering lending services, emphasizing investor protection in its crypto strategy. This follows a similar ban issued by Singapore. The prohibition, announced by Thailand’s Securities and Exchange Commission (SEC), applies to “depository services that offer returns to depositors and lenders,” thus also banning exchanges from offering staking services. Additionally, a mandatory trading risks disclaimer must be clearly visible to customers, and investor suitability assessments will determine users’ investment limits in crypto. These rules are set to be effective from July 31, 2023. The SEC’s move mirrors the Monetary Authority of Singapore’s recent directive requiring exchanges to move all customer assets into a trust by the end of the year to prevent customer fund commingling and trading.
This week, we’ve seen that Bitcoin miners are facing challenges in managing their operations and generating profits, leading to an increased trend of selling mined coins. Despite the recent price surge of Bitcoin, miners are liquidating their assets to secure cash, influenced by lessons learned from the past. This highlights the importance of reliable mining equipment and comprehensive solutions to navigate the evolving crypto landscape. AsicZ, a trusted source for volume mining equipment is dedicated to supporting businesses in the crypto space. Whether you’re looking to expand your mining capacity or require expert guidance, AsicZ offers tailored solutions to meet your needs. Visit AsicZ.com today to learn more about how they can help you thrive in the crypto mining industry.