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Cboe BZX Exchange Inc. has filed with the SEC to allow staking on several Ether-based ETFs, aiming to enable investors to earn passive income from their crypto holdings. This follows similar requests by NYSE Arca Inc. for Grayscale Investments' Ethereum products. The push for staking, which involves pledging crypto to validate blockchain transactions and earn additional tokens, is gaining momentum, supported by the Trump administration's favorable policies towards digital assets. The potential approval of staking could significantly benefit the $7 billion Ether ETF market by attracting new investments and enhancing the appeal of these funds. Industry experts like Matt Hougan from Bitwise and Vivek Raman from Etherealize see staking as a way to boost investor returns and network security, potentially setting a precedent for other altcoin-based ETFs. The SEC's current stance under its interim chief suggests a more accommodating approach to crypto-related financial products compared to previous leadership.
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The U.S. government is set to make a significant move into the cryptocurrency market with the introduction of the Bitcoin Act by Congressman Nick Begich. This legislation aims to establish a strategic Bitcoin reserve, acquiring 1 million BTC over five years without using taxpayer money. The funds for this acquisition would come from Federal Reserve remittances, gold revaluations, and the Exchange Stabilization Fund. The initiative is seen as a step to bolster national security and economic stability, positioning the U.S. as a leader in the digital asset space. However, crypto influencer WendyO has voiced concerns over the financial prudence of this move, especially given the current economic climate and past losses from government-held Bitcoin sales. Despite these concerns, the Act includes measures for transparency through a proof-of-reserve requirement, allowing public tracking of government-held Bitcoin. Additionally, the bill ensures that private ownership of Bitcoin remains protected, alleviating fears of government overreach into personal cryptocurrency holdings. This move could potentially trigger a global race for Bitcoin accumulation, as other countries might follow suit, influenced by the U.S. strategy.
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Mesh, a company specializing in crypto payments, has successfully raised $82 million in a Series B funding round to enhance its global stablecoin-based payment network. The round was spearheaded by Paradigm, with participation from several other notable investors. A significant portion of this funding was transacted using PayPal's PYUSD stablecoin, highlighting the growing acceptance of stablecoins in financial transactions. Mesh's platform facilitates payments in cryptocurrencies like Bitcoin, Ethereum, and Solana, allowing merchants to receive payments in stablecoins of their choice, which provides stability and reduces volatility risks associated with traditional cryptocurrencies. CEO Bam Azizi emphasized the increasing regulatory clarity and the booming stablecoin market as key drivers for this expansion. Stablecoins, pegged mostly to the U.S. dollar, have become a $200 billion asset class, serving as crucial infrastructure for digital asset trading and gaining popularity for payments, savings, and remittances, particularly in developing economies. The investment in Mesh reflects a broader trend where venture capital firms are betting on the potential of stablecoins to revolutionize global payment systems, as evidenced by Stripe's acquisition of Bridge for $1.1 billion last year.
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ATME, a digital assets exchange licensed by the Central Bank of Bahrain, has launched its first tokenized real-world asset (RWA) issuance, focusing on gold-backed tokens. These tokens, each representing one kilogram of gold, are available to accredited investors who can trade them on ATME's secondary market or redeem them for physical gold. This initiative seeks to modernize gold ownership by addressing storage and transportation issues through blockchain technology, enhancing efficiency and security. Alex Lola, CEO of ATME, highlighted the integration of gold's timeless value with modern blockchain technology to provide new investment avenues. ATME plans to broaden its offerings to other asset classes, aligning with the growing trend of tokenizing real-world assets in financial markets. The tokenized gold market, currently valued at around $1.2 billion, has seen increased activity due to recent record highs in gold prices, driven by a weaker dollar, trade war concerns, and geopolitical instability.
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Bitcoin's price has experienced significant volatility, recently dropping to a four-month low before a slight recovery, influenced by the Trump administration's new tariffs. BlackRock CEO Larry Fink has highlighted the potential for sustained inflation due to rising trade tensions and nationalism. The crypto market has reacted sharply to these developments, with investors selling off assets amid fears of political instability and economic disruption. Wall Street firms like Morgan Stanley and Goldman Sachs have issued warnings about potential economic downturns, adjusting their forecasts to reflect the increased risk of a recession due to the ongoing trade war. The uncertainty has led to a drop in the CoinMarketCap’s Fear and Greed Index to "extreme greed," indicating heightened market anxiety. This situation underscores the broader economic sentiment of fear and the potential for a recession as warned by financial experts and crypto market observers.
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Michael Saylor, the founder and chairman of Strategy (formerly MicroStrategy), recently advocated for the US government to invest in Bitcoin, drawing parallels to the country's historical land acquisitions. He highlighted that the US had bought land for $40 million in the past, which now holds a value of $23 trillion. Saylor, a long-time Bitcoin advocate, emphasized the potential of Bitcoin as a strategic asset, especially with President Trump's Executive Order on the Strategic Bitcoin Reserve. Strategy itself has been aggressively acquiring Bitcoin, holding 499,096 BTC at an average price of $66,423 per token. The company's recent $21 billion ATM offering to buy more Bitcoin led to a temporary dip in its stock price, but it has since shown signs of recovery. Despite Bitcoin's price volatility, Saylor's faith in the cryptocurrency remains unshaken, with Strategy leading in corporate Bitcoin adoption. An investment in Bitcoin at the time of MicroStrategy's first purchase would have yielded a 607% return, underscoring the cryptocurrency's potential for growth.
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Bitcoin's recent price drop to $88,000 has raised concerns among some investors, but experts at TheStreet Roundtable argue that this is not a sign of a market downturn. Kelly Kellam from BitLab Academy highlighted that despite retail investors' tendency to buy high and sell low, the current market setup is historically bullish, driven by high institutional interest. The market's optimism was initially fueled by President Trump's pro-crypto stance, but impatience for immediate regulatory clarity led to some selling. However, Tom Ngo from Metis pointed out that behind the scenes, large entities and governments are rapidly acquiring Bitcoin, suggesting that the market's fundamentals remain strong. Host Rob Nelson likened Bitcoin's volatility to personal relationships, suggesting that one should look beyond short-term fluctuations. Overall, the consensus among experts is that this dip is a buying opportunity, with long-term fundamentals and growing institutional interest indicating a potentially short-lived correction.
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Bitcoin's integration into mainstream finance is gaining momentum, as highlighted by Fold CEO Will Reeves on TheStreet Roundtable podcast. Fold, which started in 2019, provides Bitcoin-rewarding debit and credit cards and has recently gone public through a SPAC, a move Reeves describes as crucial for establishing trust and legitimacy in the Bitcoin financial services sector. This step is part of a broader trend where crypto companies are increasingly entering public markets, with Fold being the first Bitcoin financial services company to do so, but certainly not the last. Reeves anticipates more Bitcoin-focused firms will follow, enhancing the industry's transparency and credibility. Major financial institutions are also adapting to Bitcoin, with top banks developing digital asset strategies and even critics like Jamie Dimon changing their stance. The introduction of Bitcoin ETFs has further solidified Bitcoin's place in traditional financial markets, marking it as one of the most successful financial products in history.
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President Donald Trump's recent decision to impose a 50% tariff on Canadian imports has significantly impacted financial markets, including the cryptocurrency sector. This move has led to a sharp decline in market sentiment, with CoinMarketCap's Fear and Greed Index plummeting to an "extreme greed" level of 15, signaling investor panic. Bitcoin, which had previously hit an all-time high of over $109,000, saw its value drop by more than 24% following the announcement. The broader crypto market also felt the shock, with Ether, Dogecoin, and XRP experiencing price volatility. Experts suggest that while Bitcoin was intended to act as a hedge against market chaos, it currently behaves more like a tech stock, moving rapidly in response to economic policy changes. The tariff decision has not only introduced volatility but also raised concerns about potential increases in interest rates, which could further pressure risk-assets like cryptocurrencies. This situation underscores the interconnectedness of global economic policies and the crypto ecosystem, highlighting the challenges cryptocurrencies face in decoupling from traditional market dynamics.
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In the wake of a significant downturn in cryptocurrency prices, Markus Thielen from 10X Research advises investors to remain cautious rather than jumping to buy the dip. Thielen, who had accurately predicted the bearish trend, points out that the recent collapse in memecoins has not only affected Solana (SOL) but also a range of associated tokens. He draws parallels to the speculative bubble burst in DeFi and NFTs post the 2021 bull market, which Ethereum (ETH) has yet to recover from. Thielen warns that the current market conditions indicate a structural decline, suggesting that now is not the time for complacency. He notes Bitcoin (BTC) is approaching $73,000, hinting that a new narrative might be necessary for the next major upward movement in the market.
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Brandon Neal, Chief Operating Officer of Euler Labs, discussed the symbiotic relationship between decentralized finance (DeFi) and traditional finance (TradFi) at ETH Denver. He highlighted that DeFi does not aim to replace TradFi but to coexist, introducing competition that could enhance market efficiency by reducing spreads and compelling intermediaries to improve their services. Neal emphasized that while DeFi offers benefits like reduced barriers to entry and more equitable financial gains, TradFi still plays a crucial role in areas like risk management and consumer protection. He noted that DeFi's ability to provide faster settlements, with transactions settling in minutes compared to days in traditional banking, is a key factor driving its adoption. Despite the potential of DeFi, Neal acknowledges the necessity of some centralized functions to prevent fraud and ensure compliance with regulations.
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Starknet, known for its work on Ethereum's layer-2 scaling solutions, is now focusing on enhancing Bitcoin's capabilities through a partnership with Xverse, a Bitcoin wallet. The collaboration aims to introduce a full DeFi experience to Bitcoin users by integrating Starknet's technology in Q2 2025. This move is part of a broader effort to scale Bitcoin's transaction processing capacity significantly, from its current 13 transactions per second (TPS) to potentially thousands. Starknet plans to serve as Bitcoin's execution layer, handling transaction processing while ensuring finality through Bitcoin's blockchain. The initiative comes at a time when there's increased interest in leveraging Bitcoin's security and liquidity for broader DeFi applications. Despite the potential of OP_CAT, a proposed Bitcoin improvement that could enhance programmability, Starknet and Xverse are moving forward with their plans, using trust assumptions as an interim solution until OP_CAT's adoption. This partnership marks a significant step towards realizing trustless DeFi on Bitcoin, offering a preview of what intuitive DeFi on Bitcoin could entail.
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Recent movements of Bitcoin (BTC) from wallets linked to the now-defunct Mt. Gox exchange have sparked speculation about the resumption of creditor payouts. On Tuesday, following a significant internal reshuffling of assets last week, Mt. Gox transferred 11,834 BTC, valued at approximately $930 million, to new wallets. According to Arkham Intelligence, some of this BTC was directed to an "operations wallet," which might be used for distributing assets to creditors, while the remainder went to a "change wallet." This activity comes after a $15 million transfer to BitGo, a crypto custodian involved in the distribution process. The movements have raised concerns about potential selling pressure in the crypto market, especially as Bitcoin has already seen a nearly 30% decline from its January highs. Despite these concerns, the trustee managing Mt. Gox's assets has postponed the repayment deadline to October 31, 2025, which might mitigate immediate market pressure.
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At a recent Bitcoin Policy Institute event, Vivek Ramaswamy presented Bitcoin not merely as an investment but as an emblem of American values like freedom, innovation, and resilience. He proposed that the U.S. should consider Bitcoin as part of its strategic reserves to secure its position in the global economy and technology sectors. Ramaswamy emphasized that Bitcoin aligns with the American creed of individual liberty and self-determination, suggesting that it embodies the ethos of sovereignty and an unbreakable financial system. He predicted that the private sector would pioneer Bitcoin's adoption, with sovereign nations eventually following. Ramaswamy cautioned against regulatory overreach that could stifle innovation in the cryptocurrency space, advocating instead for policies that foster competition and reflect the spirit of American freedom. He envisions Bitcoin playing a pivotal role in what he describes as a new golden age of innovation.
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Paraguay is on the brink of integrating cryptocurrencies into its financial system, with the groundwork for regulation, supervision, and taxation already in place, according to Juan Carlos Reyes, president of El Salvador's Comisión Nacional de Activos Digitales (CNAD). Reyes, who recently signed a regulatory agreement with Paraguay's Secretaría de Prevención de Lavado de Dinero o Bienes (SEPRELAD), emphasized the need for legislative action to prevent the growth of an informal crypto market. This agreement aims to enhance cooperation between the two nations in detecting and controlling unlicensed crypto operations and strengthening anti-money laundering practices. During his visit, Reyes also engaged with Paraguay's tax authorities and financial investigative units to discuss regulatory strategies. He expressed concerns about the potential for cryptocurrencies to become as untraceable and difficult to manage as informal dollar sales if not regulated promptly. The delay in establishing clear regulations could lead to an expansion of the informal crypto market, making it challenging to supervise effectively.
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The state of Texas is pioneering the establishment of a strategic Bitcoin reserve, following a Senate bill that passed with a strong majority. This initiative, which comes after President Trump's executive order on Bitcoin, is viewed as a landmark event for the cryptocurrency's acceptance as a legitimate financial asset. Frank Holmes of HIVE Digital Technologies highlighted the significance of this move during a discussion on TheStreet Roundtable, suggesting that regulatory clarity would be the next crucial step. Texas, known for its pro-business stance and rich energy resources, has been a leader in Bitcoin mining, mirroring its historical reverence for gold by securing its reserves within the state. Holmes also pointed out that while other states like New York, Maine, and Pennsylvania have potential for Bitcoin mining, they face regulatory hurdles. Texas's economic prowess, with a GDP surpassing that of Brazil, Canada, and Russia, positions it uniquely to potentially take a more aggressive stance on Bitcoin than the federal government.
