Category: Bitcoin

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Australia Bitcoin Crypto News ETFs

Australia’s First Bitcoin ETF Gets Green Light for Imminent Launch

According to a report by the Australian Financial Review, the long-awaited Australian bitcoin exchange traded fund (ETF) has been given the go-ahead by regulators and may be open for trading within a week on the Cboe equities trading venue:

Bitcoin ETF Approved … Finally

As reported by Crypto News Australia last week, one of the major obstacles holding up approval of a local spot-based bitcoin ETF was the high margin requirements required of ETF providers – 42 percent against each trade.

ASX Clear, Australia’s equity clearing house, has now revealed that of the 35 applicants, only four were willing to stump up the tough margin requirements needed to cover the settlement risks of a bitcoin ETF.

We are now at our minimum number of clearing participants and that means we are good to go.

Hamish Treleaven, ASX chief risk officer

ASX chief risk officer Hamish Treleaven is expected to issue a notice today giving brokers, clearers, market makers and investors sufficient time to digest the news. Estimates vary, but some speculate that over A$1 billion could flow into Australia’s first bitcoin ETF – the Cosmos Asset Management bitcoin ETF (CBTC) – which may begin trading as soon as April 27.

Just the Beginning

Rather than having local bitcoin custodial services, CBTC has opted for the Winklevoss-powered exchange, Gemini:

Furthermore, as one half of the Winklevoss twins notes, the product is essentially a “fund of funds” as it invests in Canada’s Purpose Bitcoin ETF:

Expect the Floodgates to Open

Risk-averse regulators have treaded cautiously to date as they wade into uncharted territory, perhaps explaining why it has taken upwards of two years for a bitcoin ETF to be approved. Now that the mould has been broken, expect a slew of competitors to follow suit, each with its own custody and fee structure.

Although unconfirmed, it’s been reported that other fund managers are already working on a bitcoin ETF, including ETF Securities, VanEck Australia, BetaShares and Monochrome Asset Management.

While individuals in search of financial self-sovereignty may scoff at the notion of a bitcoin ETF – not your keys, not your coins – for many institutional investors, it is precisely the investor product (and green light) they were looking for:

The approval of the CBTC is a vote of confidence in the asset. Investment professionals wanting exposure will likely view the approval as reducing their career risk.

CBTC opens the door to Australian asset managers and superannuation funds that have sat on the sidelines pending a local regulatory stamp of approval. Now they’ve got it, it will be fascinating to see whether the uptake is as strong as predicted.

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Bitcoin Crypto News Regulation

Brazil Inches Closer to Passing Historic Bitcoin Bill

Brazil has edged one step further to regulating Bitcoin and cryptocurrencies. The South American country will be overseen by a more complete regulatory framework as different sectors of the government strive to pass an amended draft bill in the first half of this year.

Regulation of Bitcoin and other cryptocurrencies might come sooner than first thought as the draft bill creeps closer to law. Originally, there were two separate draft bills being discussed in parallel, but only one will keep advancing – the House Bill 4401/21.

First Round Approval for Legislation

The legislation, which has been the subject of talks in the Chamber of Deputies since 2015, has been approved in the first round of consideration. The Senate has attached itself to a different crypto-focused bill, which has already been granted approval by the Economic Affairs Committee of the Senate.

Senator Iraja Abreu and Deputy Aureo Ribeiro, two legislators and rapporteurs of the proposals, are drafting a unified text of the bill that will be sent to the full Senate for voting.

Senator Abreu has said: “I’m doing everything in contact with the Chamber’s rapporteur, who did a very good job. The Central Bank’s technical team has also been very helpful. The texts are similar and [have] converged into one.”

Abreu also pointed out that the president of the Senate, Rodrigo Pacheco, was expected to put the bill to a vote this month, adding: “By joining the projects together, we have accelerated the approval of this cryptocurrency milestone. There is a market demand for a safer business environment and the need for criminal classification to avoid fraud, in addition to adjusting Brazil to international agreements.”

Bitcoin Will Not Become Legal Tender in Brazil

The approval of the bill does not mean that bitcoin will be accepted as legal tender in Brazil. The proposed law would simply allow the Brazilian president, Jair Bolsonaro, to determine a federal entity responsible for regulating digital assets. Bolsonaro would either establish a new regulator or may delegate regulation to the nation’s Securities and Exchange Commission, or the Central Bank of Brazil.

Other Jurisdictions Attempting to Regulate Digital Assets

Earlier this week, Crypto News Australia reported that a former Blockstream executive had announced three jurisdictions that were set to make Bitcoin legal tender. Roatan in Honduras, Madeira in Portugal, and Mexico are in talks to make the cryptocurrency legal tender in its territories.

This is a very bullish sign as countries begin to see the benefit of adopting digital assets. A prime example is Ukraine, whose president Volodymyr Zelenskyy last month signed into law a bill that legalised the cryptocurrency market and established a more favourable regulatory framework for the war-torn country.

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Australia Bitcoin ETFs Investing Regulation

Australian Crypto ETF Stalled by High Collateral Requirements

The creation of Australian-based spot Bitcoin ETFs is being hampered by what some fund managers regard as excessively high collateral requirements being imposed by traditional clearing houses. 

High collateral obligations mean many clearing participants are reluctant to agree to trade Bitcoin ETFs, with only three out of 35 acceding to the requirements. The ASX’s internal, independent clearing house, ASX Clear, requires at least four to get involved before Bitcoin ETFs can be made available to investors.

Spot Bitcoin ETFs are backed by actual Bitcoin, as opposed to Bitcoin Futures ETFs which are backed by Bitcoin Futures contracts. Generally, crypto futures ETFs have faced lower regulatory hurdles and are therefore currently more common, but spot ETFs have several advantages that make them more attractive to many investors.

High Collateral Costs Intended to Offset Risk

ASX Clear sets collateral requirements for different investment products based on risk. Following an assessment of the risks and volatility of Bitcoin, ASX Clear decided that a Bitcoin ETF would require a 42 percent margin to be lodged against each trade, which is very high compared to other investment products.

To get a sense of just how high these collateral requirements are, the BetaShares Crypto Innovators ETF, which invests not in cryptocurrencies but in 34 companies involved in the digital asset industry, faces collateral requirements of under 15 percent.

Speaking to the Australian Financial Review, the ASX’s chief risk officer Hamish Treleaven explained the high requirements:

In all of our decision-making on this we have remained focused on appropriate risk management for the clearing house – that’s our regulatory obligation.

Hamish Treleaven, chief risk officer, Australian Securities Exchange

Lucrative Prize Awaits First Bitcoin ETF

There are currently several fund managers racing to launch the first Australian Bitcoin ETF, including Betashares, Cosmos Assets Management, ETF Securities, Monochrome Asset Management and VanEck Australia. 

ETF Securities announced its planned launch of Australia’s first spot Bitcoin ETF last year, but like those of all such products, this has been delayed due to regulatory issues.

Many in the industry believe the first fund to launch could attract over A$1 billion of capital, with some predicting over A$100 million could pour in on launch day alone – more than double the funds BetaShares Crypto Innovators ETF attracted on its first day of trade last November.

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Australia Bitcoin Crypto Exchange Press Release Trading

BTC.com.au Expands Its Footprint, Becoming Australia’s Newest Full-Fledged Crypto Trading Platform

The expansion offers higher liquidity and makes trading easier for users of all experience levels.

BTC.com.au, launched in 2018 as one of Australia’s first crypto trading platforms, has announced an expansion of its business model. Since its launch, BTC.com.au has been a Bitcoin-only focused service. But with its expansion, BTC.com.au will now serve as a full-fledged exchange giving traders access to today’s most popular tokens and serving as a one-stop trading platform.

By expanding its offerings, BTC.com.au aims to become the only exchange that those looking to buy, sell, and exchange crypto need. The platform has gone from being a Bitcoin-exclusive exchange to now boasting over 20 cryptocurrencies and growing weekly. The development team has focused on creating an easy ecosystem for crypto investors of all experience levels to use while ensuring the highest level of security.

BTC.com.au’s New Trading Platform

In building its new platform, the BTC.com.au team has added new features and expanded the capabilities of those previously enjoyed by its community. The user-friendly interface lets users buy and sell crypto faster without getting bogged down with slow-loading sites and complicated graphics. Faster payments are also a welcomed new feature, with an instant settlement protocol when users sell their crypto. Australian users also enjoy streamlined integration with select Aussie banks to make retrieving their funds easier. The team is also working on launching its BTC Earn program in the coming months, which will allow users to earn interest on their crypto holdings.

Since its inception, BTC.com.au has aimed to be at the forefront of the cryptocurrency sector. To continue to build on this mission, we have now expanded our exchange, creating the token offerings, services, and ease-of-use that will make it the only crypto platforms users need, especially our fellow Aussies.

Domenic Favaloro, COO BTC.com.au

Enhance Liquidity

The team has also focused on building deeper liquidity and faster execution times on trades. Users enjoy lower transaction rates, boosting their portfolio’s values while also having access to advanced funding options. BTC.com.au also allows investors to set up advanced orders with its state-of-the-art API, further putting users in control of their portfolios.

Custodial Service

With the platform’s growth, BTC.com.au is also pivoting from a non-custodial service to a custodial service, giving investors a secure digital location to store their funds. To protect users’ funds, the team has built its wallet to adhere to the strictest safety measures in the industry by utilising the top crypto and digital asset platform for institutions.

Local Support

As an Aussie company, BTC.com.au is also committed to keeping its support local to serve its Australian users better. The support team is located in BTC.com.au’s Sydney office and offers support driven by real people instead of bots or recorded messages.

To learn more and to sign up for the exchange, visit BTC.com.au.

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Bitcoin Crypto News Ethereum Markets

$250 Billion Wiped from Crypto Market amid Market Fear and Leveraged Liquidations

After staging a recovery following January’s sell-off, the cryptocurrency market has yet again felt the pain of a sharp decline after U$250 billion was erased from the sector’s market capitalisation (market cap).

Cryptocurrency market cap. Source: CoinGecko

A Sea of Red

Initial negative price action started over the weekend, which saw bitcoin drop below US$43,000, accelerated by US$152 million in leveraged long liquidations. In total, the market saw over US$439 million in liquidations within 24 hours.

It is, however, worth noting that these levels remain relatively mild compared to prior episodes, suggesting that further losses may be on the horizon.

Bitcoin then continued its descent on Monday, dropping 15 percent in 24 hours, falling below US$40,000 for the first time since March 15. Meanwhile, Ethereum fell 14 percent, sinking below the US$3,000 mark for the first time since March 23. Across the board, with the exception of Monero (XMR), all major cryptocurrencies are significantly down over the past week:

Crypto market 7-day performance. Source: Quantifycrypto

Fear and Uncertainty

Digital assets form part of the broader investment universe, and due to their speculative nature tend to get hit hardest when sentiment shifts risk-off. Risk-on assets, such as equities and crypto, generally decline when market fear takes hold as investors seek safety in less risky assets.

For these reasons, bitcoin (and other digital assets) tend to mirror the performance of the equity market in the short term, specifically the higher volatility tech sector.

Since March 2020, Bitcoin’s correlation with the tech-heavy Nasdaq 100 has increased significantly:

BTC and Nasdaq correlation. Source: Koyfin

It’s therefore not surprising that all major global equities indices are down amid growing inflation and slower economic growth, resulting in many investors reducing exposure to higher volatility growth assets.

This follows news of the 10-year US Treasury yield rising to a three-year high, making tech stocks significantly less attractive, and cryptocurrencies even less so. In addition, there’s an ongoing war in Ukraine and the Federal Reserve is posturing to aggressively raise interest rates.

For these reasons, macro sentiment is negative and fear is widespread, resulting in a flight to safety away from assets such as cryptocurrencies. With US inflation figures due to be released this week, the market remains on edge, and as Bitcoin analyst Will Clemente recently opined on Twitter:

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Bitcoin Bitcoin Mining Industries

Tesla Powered Megapack Battery Uses 100% Solar Energy to Mine Bitcoin

Tesla, Block, and Blockstream are working together to build an open-source bitcoin mine that operates by only using renewable energy. The project will make all data available and aims to make such “green” mining ventures more viable.

Industry Leaders Team Up for Green Bitcoin Mining

In the Bitcoin (BTC) mining sector, some of the world’s biggest players have started collaborating to build the next generation of mining facilities. According to an announcement from Blockstream and Block Inc (formerly known as Square), both companies will be teaming up with Tesla to build a fully solar-powered bitcoin mining facility in Texas, US.

The facility will be powered by the 3.8 megawatt (MW) Tesla Solar PV array and energy stored in the 12 megawatt-hour (MWh) Megapack. The facility will also be an “open-source” proof-of-concept bitcoin mine operating on 100 per cent renewable energy.

The mine will process an estimated 30 petahashes per second and is anticipated to be complete before the end of this year. The entire project will be conducted to determine the feasibility of a solar-powered mining operation. This project was initiated in mid-2021 when Square invested US$5 million into infrastructure for the solar-powered crypto mine.

Mining Data to be Freely Accessible

By saying the mine will be “open-source” means that regular reports about the economics of the project will be made publicly accessible. Important metrics such as power output, bitcoin mined, and at a later stage, key metrics about the solar performance will be made available.

We figured we would actually make it a reality and public information in a more transparent way that’s usually done for commercial competitiveness reasons so that we can have a more informed discussion […] If we publish the raw data, the raw financial information, it speaks for itself.

Adam Back, Blockstream CEO

The data will be displayed through a 24/7 dashboard accessible through a browser, “providing the industry with a real-world, real-time case study of a zero-emission energy Bitcoin mine”.

People like to debate about the different factors to do with bitcoin mining. We figured, let’s just prove it. Have an open dashboard so people can play along; maybe it can inform other players to participate.

Adam Back, Blockstream CEO

If the project is successful, it will be operable from anywhere without the need for local infrastructure. This makes carbon-free bitcoin mining at scale available to anyone with a few million to spare for the infrastructure.

Advancing Bitcoin and Renewable Energy

Blockstream CEO Adam Back believes that “by collaborating on this full-stack, 100 percent solar-powered bitcoin mining project using solar and storage technology from Tesla, we aim to further accelerate bitcoin’s synergy with renewables”.

The rush for a green bitcoin has seen many companies change and innovate ways to make BTC sustainable. However, a recent report from digital asset management firm CoinShares stated that the network’s contribution to global carbon emissions was “inconsequential”.

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Bitcoin Crypto News

Former Blockstream Exec Announces 3 Jurisdictions to Make BTC Legal Tender

One of many exciting announcements emerging from the Bitcoin 2022 conference was one by former Blockstream chief strategy officer, Samson Mow, who brought three guests on stage to provide updates on bitcoin adoption in each of their respective countries.

Roatán, Honduras

Despite Honduras’ central bank rejecting recent rumours that bitcoin would be made legal tender, a special economic zone within Honduras known as Próspera, Roatán island, has announced that it recognises bitcoin and other cryptocurrencies as legal tender within its own borders. Honduras Prospera Inc, who promotes the jurisdiction, told the audience that:

Bitcoin within Próspera operates as legal tender. That means no capital gains tax on BTC, you can transact freely using BTC, and you can pay taxes and fees to the jurisdiction in BTC.

Joel Bomgar, president, Próspera Inc 

In addition, starting later this week the Próspera jurisdiction will enable municipalities in Honduras and corporate entities outside of the US to float Bitcoin bonds within Próspera.

Madeira, Portugal

The next bitcoin announcement came from an autonomous region of Portugal known as Madeira, a group of islands northwest of Africa. While not specifically saying whether bitcoin would become legal tender, the region’s president, Miguel Albuquerque, did however stress that bitcoin purchases and sales would not be subject to taxes. Presently, Madeira has one of the more attractive corporate tax rates at 5 percent.

Portugal's Madeira Islands Are World's Best Island Destination
Crypto-friendly Madeira is also a popular tourist destination. Source: Insider

Either way, Albuquerque is bullish on Bitcoin as he told the crowd:

 I believe in the future and I believe in bitcoin.

Miguel Albuquerque, president of Madeira, Portugal

Mexican Senator Throws Her Hat in the Ring

Finally, Mow invited Mexican Senator Indira Kempis on stage to give an update on efforts to propose bitcoin legislation in the country. 

Kempis has previously outlined a desire to introduce laws modelled on those of El Salvador, and she told the conference that her focus would be to make bitcoin legal tender:

In two months we will propose legislation to modify regulations in fintech and in monetary law. And we have a message for our president. We are looking forward to sitting down and having coffee with you to talk about this plan – bitcoin as legal tender in Mexico.

Indira Kempis, Mexican senator

As part of her efforts, Kempis would also be submitting a bill that would make financial inclusion and education a constitutional right.

At this stage, it remains unclear whether she will succeed in her endeavours, particularly in light of the Mexican central bank’s recently announced plans to launch its own digital currency.

Yet one thing is becoming clear – jurisdictions are increasingly embracing bitcoin to attract global capital and talent. Bitcoiners often refer to the “Sovereign Individual” thesis, whereby nation states are forced to begin treating citizens as paying customers, rather than cattle (who in the information age, have wings and can fly to friendlier jurisdictions). Arguably, we’re seeing that play out in real-time.

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Bitcoin Crypto News Crypto.com Sports

UFC Fighters Can Now Receive Their Bonuses in Bitcoin

The Ultimate Fighting Championship (UFC) is taking its partnership with Crypto.com to the next level with the introduction of “Fan Bonus of the Night” – an innovative collaboration with the major exchange where fans vote on the allocation of fighter bonuses for pay-per-view (PPV) events to be paid out in bitcoin:

Fans Allocate Fighter Bonuses

Until now, the decision as to which fighters delivered performances worthy of a bonus lay solely with UFC matchmakers. However, since the advent of “Fan Bonus of the Night”, fans are now able to participate in what is always a controversial decision.

The inaugural fan bonuses will commence this weekend at UFC 273, headlined by Aussie featherweight champion Alexander “The Great” Volkanovski, who defends his crown against South Korean veteran TKZ, otherwise known as “The Korean Zombie”.

Alex Volkanovski (@alexvolkanovski) | Twitter
Alex Volkanovski proudly representing the Australian flag. Source: UFC

Voting for the “Fan Bonus of the Night” will take place on Crypto.com and is open to all users globally. Each fan will get three votes per PPV and can vote for two fighters within each bout. Voting opens at the start of the PPV prelims and ends one hour after the conclusion of the event. 

Bonuses on Top of Bonuses

In total, three bitcoin bonuses will be awarded, ranging from US$10,000 to U$30,000. Given that fighter pay remains a hot topic within the MMA community, it’s worth noting that these fan bonuses will be in addition to fighter salaries, as well as the U$50,000 “Fight of the Night” and “Performance of the Night” bonuses typically awarded.

“Uncle Dana”, as UFC president Dana White is affectionately known by fans and MMA (mixed martial arts) journalists alike, spoke positively about Crypto.com’s proactive approach to increasing fan engagement:

They’re [Crypto.com] constantly coming up with new ideas about how we can work together to connect with the fans. This new Fan Bonus of the Night is an awesome way to get fans more engaged in our events while rewarding the fighters for bad-ass performances.

Dana White, UFC president

In 2021 we saw a flurry of professional athletes elect to take their earnings in bitcoin, and this trends appears to be picking up steam. In January, UFC heavyweight champion Francis “The Predator” Ngannou elected to take half his fight purse in bitcoin, saying: “I believe bitcoin can empower people everywhere.”

As an inflation-resistant savings technology, it’s hard to argue with The Predator’s assessment of Bitcoin. However, given his knockout power, you’d probably be inclined to agree with him irrespective:

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Bitcoin Crypto Exchange Crypto News Crypto Wallets Ethereum Lightning Network

Robinhood Unveils Plans to Support Lightning Payments for 2 Million Users

At this week’s Bitcoin 2022 conference, Robinhood announced the rollout of wallets to two million eligible users with further plans to integrate the Lightning Network, according to a blog post by the crypto broker.

Robinhood chief product officer Aparna Chennapragada announced that customers who have been waitlisted for the digital wallet can now send and receive cryptocurrencies. The wallet will not, however, support Ethereum-based services such as NFTs and ERC-20 tokens.

Lightning Strikes Again

The platform is also planning to integrate the Bitcoin Lightning Network to reduce the time and cost of transactions, along with their carbon footprint. It’s another win for the Lightning Network, which has grown parabolic with an additional US$70 million raised to bring stablecoins to the network earlier this month.

The wallet will not be available to users in the US states of Hawaii, Nevada and New York “due to local regulations”. Robinhood has been testing its digital wallet feature since September 2021, completing its first alpha transfer in November and launching a beta version for tens of thousands of users in January 2022.

The reaction from the Robinhood community has been mostly positive, though according to the firm’s FAQ, any NFTs or unsupported tokens sent to a Robinhood Ethereum address will be lost.

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Bitcoin Crypto News Lightning Lightning Network

$70 Million Raised to Bring Stablecoins to Bitcoin’s Lightning Network

Building on the base established by Bitcoin’s latest protocol update, “Taproot”, Lightning Labs has announced a new protocol, “Taro”, to widen the range of assets supported by Bitcoin’s layer two protocol, the Lightning Network:

‘Bitcoinising the Dollar’

Taro is an open protocol made possible by Taproot that allows developers to issue assets on the Bitcoin blockchain and then move them onto the Lightning Network for speed and scalability, making use of bitcoin liquidity to ensure interoperability between assets.

We see Taro as an important step in bitcoinising the dollar, getting the best of both worlds by: 1) issuing assets like stablecoins on the most decentralised and secure blockchain, bitcoin; and 2) allowing users to transact on the fastest global payments network with the lowest fees, Lightning.

Ryan Gentry, director of business development, Lightning Labs

In practical terms, this means that digital assets such as stablecoins or even NFTs could be issued using a taproot script on-chain and then transferred either on-chain or via the Lightning Network.

By leveraging the Lightning Network’s one million-plus transactions per second capacity, digital assets could, pursuant to Taro, be settled faster and cheaper relative to all other blockchains:

Transactions per second of other blockchains. Source: Saleswallet

The response from Bitcoiners proved to be enormously positive, with Marty Bent commenting: “If it [Taro] passes the peer review test – can bring the usecase of issuing and transferring digital assets that aren’t bitcoin UTXOs to the LNP/BP stack. If Taro is able to do this, it renders all of the competing altcoin narratives obsolete overnight.”

Lightning Growth Continues

As reported by Crypto News Australia, between August and September last year Lightning Network growth more than doubled. In fact, over the past 12 months it has experienced strong growth from both a US dollar (blue line) and bitcoin (orange line) perspective:

Lightning Network Growth. Source: Bitcoin Visuals

As Lightning Labs drives to solve real problems for real people, part of the uptick in network activity has been attributed to the growth of bitcoin as a remittances and payment technology, particularly among developing nations.

As business development director Gentry concludes about the Taro protocol:

Bringing stablecoins to bitcoin via the Lightning Network is good for users who want access to financial services, good for app developers who want new tools, good for routing node operators who want more fees, and good for issuers who want a better experience for their users.

Ryan Gentry, director of business development, Lightning Labs

Price action aside, it’s difficult not to be bullish on Bitcoin with developments such as Taro that appear set to catapult Lightning adoption.