Review of the latest news of the crypto space

Crypto space hot news review dated 29.03.2021


Bitcoin continues to accumulate strength, after the recent fall, which occurred against the background of a new trend in the industry-NFT. This new crypto solution has blown up the space, and is gaining momentum, similar to the recent DeFi boom.

News digest of the past week

As always, the crypto space was changing the natural course of events in the world of finance and technology every minute. Here is a summary of the important events that have taken place in the cryptocurrency this week.

  • Fidelity Is Poised to Shake Up the Bitcoin Investment Industry if the SEC Approves its ETF Application

The Fidelity ETF has a great chance of being approved by the SEC and will benefit the entire bitcoin world. One of the potential losers is Grayscale Investments, whose scams have long been under threat. And here’s why.

For years, crypto companies have been knocking on the SEC’s door in hopes of launching a Bitcoin ETF, only to hear the agency respond with a categorical ” no.” But now one of the companies on the SEC’s doorstep is the mighty Fidelity Investments, and that’s likely to be a game-changer.

The Boston-based financial giant this week applied to create an ETF (exchange – traded fund) called the Wise Origin Bitcoin Trust-a name that some believe is derived from the Japanese character Satoshi Nakamoto. If approved, Fidelity’s Bitcoin fund will be traded as shares on public stock exchanges along with the company’s other ETFs targeting bonds, blue-chip stocks and other assets.

If this happens, it will be a huge win not only for Fidelity, but for everyone who owns Bitcoin. The approval of the Bitcoin-ETF will add even more luster to the cryptocurrency’s legitimacy and, more importantly, will lead to a flood of new investments from both retail and institutional clients. As they say, all this is likely to lead to a soar in the price of Bitcoin.

Of course, none of this is a statement. As noted, the SEC has flatly rejected dozens of previous Bitcoin ETF offers, usually based on potential market manipulation. In the case of Fidelity, however, the firm creates an aura of old-school respectability that other candidates have lacked, and its offering is based on Bitcoin pricing in various spot markets, including Bitstamp, Coinbase, Gemini, itBit, and Kraken. It is this kind of approach that can allay the agency’s concerns about manipulation.

Finally, Fidelity and its lawyers, who are well versed in SEC policy, probably decided to file now because they believe that now is the right time with a new SEC president and chairman.

As a result, everyone is ready to be a winner: Bitcoin investors, and even the SEC, which has been criticized for its obstructionist policy on cryptocurrencies. Well, almost all of them will be winners, except for one.

If the SEC grants the Fidelity ETF, one obvious loser will be Grayscale Investments. For years, Grayscale has enjoyed a lucrative artisanal industry, packaging Bitcoin as a stake in the GBTC trust – a legal loophole that circumvents the SEC’s ban on Bitcoin-ETFs, and which for some reason no one has copied effectively.

Under the terms of the agreement, Grayscale created new shares in the trust several times a year and sold them to wealthy investors, who in turn exchanged them for a premium. Grayscale charges a 2% fee for its services.

The emergence of ETFs means that Grayscale’s cozy niche is about to collapse. Indeed, the bottom may already be falling as Grayscale Trust shares, which have always traded at a premium to the price of the underlying Bitcoin, have been trading below the Bitcoin price in recent weeks. Meanwhile, professional investors are wary of buying more shares from them. The reason for the downturn is not entirely clear, but best of all, investors recognize that they expect legitimate ETFs.

  • XRP Bounces back as Users Insist on Re-Enabling the Asset

On Monday, the crypto space discussed the RelistXRP campaign after the hashtag became a trend on social media platforms in different regions. Calls to revalue the asset have been shared on social media in the US, Australia and European countries such as the UK. XRP has suffered huge losses since its parent company Ripple had legal problems with the Securities and Exchange Commission.

The crypto asset is still a bone of contention as both sides struggle to come to an agreement on its status. However, XRP got an early boost this week, rising to a daily high of around $ 0.60 on Tuesday. It returned to $ 0.54, where it remained for most of Wednesday. As a result of the sharp drop, the price of it briefly fell to $ 0.477, and then to $ 0.43 on Thursday. The crypto asset is currently in an uptrend, rising to $ 0.54.

Ripple executives have stated that XRP can be used as a link between various digital currencies that currently do not have the ability to interact. In a paper titled “The Future of CBDC,” the company explains that while digital currencies are critical to the survival of the fiat system, they have several differences related to their design and differences. These differences make it harder for them to make cross-border payments – a limitation that will overcome the introduction of XRP into the big picture.

  • The Boston Fed and the Massachusetts Institute of Technology are making huge strides in developing CBDC

Researchers from the Massachusetts Institute of Technology and the Federal Reserve Bank of Boston have made significant progress in the field of digital currency. The group has worked together for almost a year, and plans to launch prototypes of digital dollars sometime in July.

According to project manager James Cunha, the launch will include two platforms designed to process transactions using the digital dollar. It is not known whether the platforms will be based on the blockchain. Cunha added that interested third parties will be allowed to develop the code further after the prototypes are submitted.

Many banks still oppose the idea of a digital dollar, because they will lose the most if it is successfully implemented. At the other end of the spectrum, payment services like Visa and MasterCard seem to have embraced digital currencies. The services have even moved to cooperate with central banks in this direction.

Bitcoin surged after the news that Tesla is accepting payments in Bitcoin.

The BTC correction has intensified this week as the asset struggles to hold above $ 50,000. Leading cryptocurrencies started the week fairly, surpassing $ 58,000 on Monday, before falling to $ 53,000 in less than 36 hours. Bitcoin rose to $ 54K early on Wednesday morning, and then to $ 57K. during the day, on the back of positive news about Tesla.

The electric car maker’s CEO, Elon Musk, announced in a tweet that he now accepts Bitcoin as payment for electric car purchases. Musk explained that bitcoin payments will not be converted once they are received. Instead, they will be stored as Bitcoins. However, this option is currently only available to US citizens.

The announcement did not come as a surprise to many, as Tesla had previously hinted that it would add support for cryptocurrencies without specifying a specific date. Several users noted the possibility of paying for BTC in the company’s stores in the US, which prompted the executive director to make it official. The company also said it is working to make this option available to those outside the US.

  • The FCA study Details disturbing Findings Regarding Young People Investing in Cryptocurrency

A report conducted by the UK Financial Conduct Authority showed that young people are increasingly investing in cryptocurrency. The study also found that while interest has been growing, most young people are investing in crypto assets for the wrong reasons.

The financial observer concluded that the younger generation is addicted to cryptocurrency because of the thrill they experience. Young people only want to experience a sense of belonging, so they tend to have stakes in companies. The FCA report also says that young investors are unable to cope with the losses that are commonplace in the turbulent crypto sector.

Another disturbing finding was that most young people perceived investing in cryptocurrency as a competition that contrasted sharply with the “real” goal of securing the future. The regulatory body advised young people to understand the risks associated with high-yield products, such as cryptocurrency, before diving into them.

  • Jordan Belfort,” The Wolf of Wall Street, ” predicts a price tag of $ 100,000

Like some major US banks, Jordan Belfort, also known as the” Wolf of Wall Street, ” has changed his mind about Bitcoin.

In the tradition of JPMorgan, which labeled Bitcoin as a scam, a well-known Wall Street trader predicted the end of BTC in 2017.

Times have changed, institutional investors are buying the Cue Ball en masse, and so the Wolf of Wall Street has revised its verdict to finally state that Bitcoin has advantages over stocks, such as its limited supply, which could allow the cryptocurrency to reach a price of $ 100,000.

These words were spoken in an interview with Fortune, where Jordan Belfort admits that he was wrong about the number 1 cryptocurrency.

Jordan Belfort gained international fame after Martin Scorsese’s wonderful film “The Wolf of Wall Street”, in which the main character is masterfully portrayed by Leonardo DiCaprio.

A trader with a grey reputation, Jordan Belfort could not have foreseen the success of Bitcoin and cryptocurrencies, as it was fashionable in 2017 to accuse Bitcoin of being the perfect way to launder money, and eventually governments would step in to ban it completely.

But today, the opposite is happening: a wave of institutional investors and large companies like Tesla are buying billions of dollars worth of BTC.

It’s never too late to change your mind, as Jordan Belfort just did.

  • Nigeria has Not Banned Bitcoin, the country’s Central Bank Says

Last month, the Central Bank of Nigeria banned banks from accepting transactions related to cryptocurrencies and closing bank accounts related to Bitcoin transactions.

Adam Lamtek, deputy governor of the central bank of Nigeria, said that this is a mistake, and people can freely own Bitcoin and cryptocurrency, or trade them, according to the publication Today NG.

Thus, owning or trading BTC and other cryptocurrencies is not prohibited in Nigeria, but the country’s banking system is prohibited from working with this industry.

However, changing and converting your Bitcoins and cryptocurrencies to cash is essential for anyone who trades cryptocurrency, or just wants to buy or sell cryptocurrency for fiat money such as euros or dollars.

Although the Central Bank says it does not ban cryptocurrencies in the country, it is simply trying to stifle their trading by depriving users of the banking system so that they cannot convert them into dollars or local currency.

Thus, these statements help clarify the status of Bitcoin, as well as the legality of cryptocurrency exchanges for people living in this African country.

The ban on banks working with the cryptocurrency sector simply led to the development of peer-to-peer trading between people, and the emergence of underground trading networks that allow you to sell or buy Bitcoins for the local currency.

Nigeria is one of the African countries where bitcoin is very popular, trading volumes are very high, despite the new bans recently imposed by the country’s central bank.

The central bank may change its mind in the future when it finds that such a decision will not prevent people from trading in Bitcoin and crypto.