Crypto & Blockchain Daily Brief Wednesday, July 10, 2024

Australia's second Bitcoin exchange-traded fund (ETF) is set to be listed on the Australian Securities Exchange (ASX). The ETF, named "BetaShares Bitcoin ETF," will provide Australian investors with an opportunity to gain exposure to the world's largest cryptocurrency. The ETF will be managed by BetaShares, a prominent Australian investment firm that already offers a variety of ETFs to its clients. The listing of the BetaShares Bitcoin ETF on the ASX marks a significant step in the mainstream adoption of Bitcoin in Australia. The ETF will allow investors to indirectly invest in Bitcoin without needing to hold the cryptocurrency directly. This could potentially attract more institutional and retail investors to the digital asset space. The BetaShares Bitcoin ETF will track the performance of Bitcoin by investing in a portfolio of Bitcoin futures contracts, rather than holding the cryptocurrency itself. This strategy aims to provide investors with a more regulated and secure way to invest in Bitcoin, as futures contracts are traded on regulated exchanges. The launch of the BetaShares Bitcoin ETF comes after the successful listing of the first Bitcoin ETF in Australia, the "VanEck Vectors Bitcoin ETF." The increasing interest in Bitcoin ETFs reflects the growing demand for exposure to digital assets among investors. As Bitcoin continues to gain mainstream acceptance, the availability of ETFs can make it easier for investors to participate in the potential upside of the cryptocurrency market.

Renowned trader Peter Brandt predicts that Bitcoin could potentially reach $44,000 in the near future. He bases this prediction on a chart pattern known as the "cup and handle," which suggests a bullish trend for Bitcoin. Brandt emphasizes that while this pattern indicates a possible rise to $44,000, it is not a guarantee and should be taken with caution. Brandt is known for accurately predicting Bitcoin's price movements in the past, lending credibility to his current forecast. He highlights that Bitcoin's recent consolidation phase is similar to patterns seen before significant price surges in the past. Brandt believes that Bitcoin's price could experience a substantial increase if it breaks above key resistance levels and maintains its current upward momentum. Despite his bullish outlook, Brandt advises caution and encourages investors to be prepared for potential market corrections along the way. He warns that while Bitcoin's price may rise significantly, it could also experience sharp pullbacks, which is a common characteristic of the cryptocurrency market. Brandt's prediction of Bitcoin reaching $44,000 aligns with the overall positive sentiment surrounding the cryptocurrency industry. As Bitcoin continues to gain mainstream adoption and institutional interest, many experts believe that its price could soar to new heights in the coming years. However, as with any investment, it is essential for investors to conduct thorough research and consider the risks involved before making any decisions.

Germany's finance ministry has reportedly sold a massive stash of 16,000 bitcoins, worth around $890 million, in the largest government-run Bitcoin auction to date. The auction was conducted in four tranches, with each tranche containing 4,000 bitcoins. The sale was carried out on behalf of the German Federal Government by a major German auction house, and the bitcoins were seized by authorities in various criminal cases. The auction drew significant interest from both institutional and retail investors, highlighting the growing mainstream acceptance of cryptocurrencies. The successful sale of such a large amount of bitcoins by a government entity is seen as a positive development for the cryptocurrency market, as it indicates a willingness by governments to engage with digital assets in a regulated manner. The sale of the 16,000 bitcoins represents a significant portion of the German government's total cryptocurrency holdings. Germany has been relatively proactive in regulating and adopting cryptocurrencies, with various government agencies working on blockchain and cryptocurrency-related initiatives. The country has also implemented regulations to combat money laundering and terrorist financing through cryptocurrency transactions. The auction of such a substantial amount of bitcoins by the German government is seen as a milestone in the institutional acceptance of cryptocurrencies. It also demonstrates the potential for governments to engage with digital assets in a regulated manner, which could help legitimize cryptocurrencies in the eyes of traditional investors and financial institutions.

The co-founder of Paxful, a peer-to-peer cryptocurrency exchange, is facing up to five years in prison for allegedly failing to prevent money laundering. The charges stem from the exchange's lack of an anti-money laundering (AML) program, which is required by federal law. The co-founder is accused of knowingly failing to implement adequate AML measures to prevent the use of the platform for illicit activities. The Department of Justice has stated that the co-founder was aware of the illicit activity taking place on the platform but did not take sufficient action to prevent it. The lack of an AML program allegedly allowed criminals to launder money through the exchange, leading to charges of conspiracy to commit money laundering. Paxful has stated that the co-founder has not been involved in the day-to-day operations of the exchange for several years and that the charges do not relate to the current state of the business. The exchange has since implemented a comprehensive AML program to comply with regulations and prevent money laundering. The case highlights the importance of AML compliance in the cryptocurrency industry and the potential legal consequences for failing to implement adequate measures. It serves as a reminder to cryptocurrency exchanges and businesses to prioritize regulatory compliance and take proactive steps to prevent illegal activities on their platforms.

BlackRock, the world's largest asset manager, has seen its tokenized treasury fund, BUIDL, reach $500 million in total assets. The fund, which was launched by blockchain company CoinShares, aims to provide institutional investors with exposure to the cryptocurrency market. BUIDL offers a secure and compliant way for institutions to invest in digital assets, leveraging the expertise of both BlackRock and CoinShares. The fund's success can be attributed to the growing interest in digital assets among institutional investors, who are increasingly looking for ways to diversify their portfolios and generate returns in a low-interest-rate environment. BUIDL allows these investors to gain exposure to cryptocurrencies while benefiting from the security and compliance measures put in place by BlackRock and CoinShares. The tokenized nature of the fund also provides investors with added flexibility and liquidity, as they can easily buy and sell shares on the secondary market. This makes it easier for institutions to manage their exposure to digital assets and adjust their portfolios as needed. Overall, the success of BUIDL demonstrates the increasing acceptance of cryptocurrencies among institutional investors and the growing demand for innovative investment products in the digital asset space. As more traditional financial institutions like BlackRock continue to embrace blockchain technology and digital assets, the industry is poised for further growth and development in the coming years.