Category: Institutions

Categories
Crypto News Institutions Ripple

Ripple Battles Against the SEC Over Access to Executive’s Financial History

The Securities and Exchange Commission (SEC) is now trying to access the personal financial data of Ripple’s main executives: Brad Garlinghouse and Chris Larsen.

The SEC wants access to eight years of the executives’ financial data. This information is somehow related to the revenues of Ripple, according to the SEC. But both Larsen and Garlinghouse have stated that this data is irrelevant to the case.

Ripple Ask the Court to Block Access to the SEC

Ripple’s defence lawyers have submitted a letter to a federal judge, requesting to block access to the financial history of the executives. According to the letter, the institution has sent subpoenas (a formal written order) to six banks:

  • Silicon Valley Bank
  • Federal Reserve Bank of New York
  • Silvergate Bank
  • Citibank
  • Silver Lake Bank

Both executives have already produced the financial records relevant to the revenue streams that the SEC has requested.

As stated by the lawyers, the case is about the sale of unregistered securities over the years. But the SEC would be implementing a fraud case with no allegations and coherent motives whatsoever:

The SEC has nonetheless asserted that the Individual Defendants’ personal financial information is relevant to their “motive” to engage in the challenged conduct.

The SEC has not offered and cannot provide a coherent explanation for why it is entitled to this information.

Over the last few days, Ripple has faced several challenges since the case started. Likewise, the company also terminated its partnership with MoneyGram, a cross-border company that used Ripple’s ODL service for two years.

Ripple decided to call off its partnership soon after MoneyGram got sued by Rosen Law Firm. The lawyers submitted a case action on behalf of several investors over “misleading” statements regarding the use of Ripple’s On-Demand Liquidity (ODL) service.

Categories
Bitcoin Crypto News Institutions

MicroStrategy Buys 262 Bitcoins at Nearly $58,000

Michael Saylor’s MicroStrategy has bought some additional 262 Bitcoins (AU$ 19,300,000) for $57k. The crypto community was surprised the company bought at such a high price, but many believe this is only the start of a greater bull run for BTC.

How did the Community React?

Some argue that MicroStrategy bought a level considered dangerous due to heavy resistance with a double top pattern. But others think of it as a move against the potential inflation that the U.S. Dollar could face anytime soon.

The U.S. Senate has passed a COVID-19 relief bill, providing stimulus checks of $1,400 for its citizens. Naturally, this means the Federal Reserve will print 1.9 trillion in the upcoming days.

Many in the crypto community have their eyes on a $100k price for Bitcoin. Even private banks like JP Morgan predicted higher prices for BTC. The chart below shows a double top pattern, but the sentiment remains bullish.

BTC/USD Chart

As MicroStrategy invest $15 million at a level of $57,000, this could be the beginning of a new All-Time high, probably reaching levels over $60k in the upcoming months.

How Much Would you Have if you Invested in Crypto Back Then?

Investing in Bitcoin with $1,000 back in 2020 would result in profits of $9,000 – $10,000, considering BTC was priced at barely $7,000 back then. Likewise, traders who bought ADA last year at levels below .50 cents would be sitting on profits of $42,000 right now.

It’s worth noting that the sentiment in Australia for Bitcoin has been bullish since January. Around 70% of Aussie traders believe BTC will reach over US$ 90k by the end of 2021.

Categories
Bitcoin Institutions

Goldman Sachs Under Pressure to Meet Investor’s Demand for BTC

It has been just four days since Goldman Sachs re-opened its crypto trading desk for its clients. Now the famous American investment bank is under heavy pressure from investors, who are now more keen than ever to invest in Bitcoin.

According to John Waldron, Chief Operating Officer, the bank is trying to please client’s rising demand for BTC while also keeping up with regulations from institutions (like the Securities and Exchange Commission).

Client demand is rising. We are regulated on what we can do. We continue to evaluate it and engage in it.

Stated Waldron for Reuters

The large inflow of clients is followed by the recent price increase of Bitcoin, reaching a new All-time of $57,000, flirting with trading levels up to $58,700. The bullish sentiment remains strong despite the abrupt and fast-paced price increase.

BTC/USD Chart

Demand for a Bitcoin ETF

Currently, the bank seeks to open a Bitcoin Exchanged-traded Fund, but they are not the only institution looking for it. The NYDIG (New York Digital Investment Group) filed weeks ago to the SEC to open a Bitcoin ETF together with Morgan Stanley.

Waldron believes that digital commerce would likely hit a milestone in 2021. Cryptocurrencies could take a greater role in the digital economy now that these institutions are trying to pave the way for broader adoption.

There is no question in our mind there will be more digital commerce and the use of digital money. The pandemic has been a significant accelerant.

Categories
Bitcoin Crypto News Ethereum Institutions

Chinese Software Company Meitu Buys $40 Million in Crypto

The Hong-Kong registered company Meitu announced on 7th March that they purchased $22 million in Ethereum (ETH) and $17.9 million of Bitcoin (BTC) in the open market.

This adds to the every growing list of institutional crypto purchases over the past year.

They stated the reason for buying was to help diversify their holdings away from cash, preparing the company for entry into the blockchain industry with Ethereum and believing it will enhance shareholder value in the long-term.

Here are some quotes from the announcement:

Against this backdrop, the Board believes cryptocurrencies have ample room for appreciation in value and by allocating part of its treasury in cryptocurrencies can also serve as a diversification to holding cash (which is subject to depreciation pressure due to aggressive increases in money supply by central banks globally) in treasury management.

The Board takes the view that blockchain technology has the potential to disrupt both existing financial and technology industries.

The Group is currently evaluating the feasibility of integrating blockchain technologies to its various overseas businesses, including but not limited to launching Ethereum-based dApps.

Who’s Meitu?

Meitu released a popular app which allowed photos to be touched up in the early 2010s, but their stock shrank from HK$18 in 2017 to less than HK$3 today. Now it looks like they are turning to cryptocurrency in a bid to revive the stock price and provide value to their almost 300 million monthly active users.

Meitu chairman Cai Wensheng has been an advocate of crypto and said in 2018 that he personally bought about 10,000 Bitcoins.

Categories
Crypto News Institutions Ripple

Ripple to Provide Blockchain Support for Central Banks Issuing CBDCs

Ripple is moving forward with a new private version of its XRP ledger to provide support for Central Banks issuing CBDCs (Central Bank Digital Currency). The new ledger will be based on the same blockchain that powers XRP.

80% of Banks Seeking Blockchain Technology

While the battle with the Securities and Exchange Command (SEC) continues, Ripple will conduct a pilot of this new private network to provide Central Banks with effective and flexible solutions for the issuance and management of their digital currencies.

The company stated that as cryptocurrencies move forward into the mainstream and more institutions are digital assets, over 80% of Central Banks are desperate to issue their own CBDCs.

This also means that more banks are considering using blockchain technology for their ecosystem, thus moving on and embracing the advantages (and challenges) of digital assets.

Hundreds of Thousands of TPS for Banks

This new private ledger will be tested to handle tens of thousands of TPS (Transactions per Second), and eliminating the tedious delay usually inherent to wire transfers. The network is expected to potentially scale to hundreds of thousands of TPS in the future —while maintaining speed and low fees. Some key features that the ledger will provide are:

  • 61,000 times more efficiency compared to PoW (Proof-of-work) blockchains.
  • Same protocol verification system used by the XRP ledger.
  • Less energy-intensive
  • High scalability, up to tens of thousands of CBDC transactions and possibly hundreds of thousands in the future. 

A New Network For Banks

Ripple is also exploring a new way to bring institutions into a more DeFi (Decentralised Finance)-style ecosystem. The company is planning to bring together all CBDC ledgers into a single network, enabling interoperability with full technological and financial independence.

Categories
Australia Crypto News Institutions

The Australian Tax Office May Put More Pressure on Aussies Investing in Cryptos

The Australian Tax Office (ATO) may put more pressure on Aussie crypto-traders and investors this year – as cryptocurrencies become more popular among the general Aussie population.

As recently reported by Yahoo Finance, the ATO could be targeting up to 1 million Australians who have invested in cryptocurrencies and have failed to report their profits in their tax returns.

The ATO to Collect Data From Exchanges

Likewise, the agency is collecting data directly from crypto-exchanges in Australia, and using an intelligent data-matching program they can detect which users are not paying their taxes.

The demand for crypto in Australia has increased so much that the ATO may focus more than ever on cryptocurrencies, especially as Bitcoin has skyrocketed in price this year and most people are in profits. The demand for cryptocurrencies even surpassed the popularity of precious metals in the country according to our sources.

Even Australians over 50 years old are using their SMSFs to invest in cryptocurrencies, and younger traders are HODLing cryptos in their portfolios – some with no plans to sell anytime soon.

“Crypto Money” Laundering Schemes

The ATO’s interests may also be sparked by so-called “money laundering schemes” in the country. An IRS – Internal Revenue Services Criminal Investigation Unit – agent was sent to Australia as a joined effort to tackle schemes related to cryptocurrencies.

Categories
Bitcoin Cryptocurrencies Institutions

Crypto Institutional Purchases List 2021

In this article we’ll keep track of all the recent Bitcoin/Cryptocurrency purchases being made by institutions, big companies and large investors.

Last updated: 01/01/2022

DateInvestorAmount
22/01/2022El Salvador $15 Million
29/12/2021 El Salvador$1 Million
29/11/2021MicroStrategy$414 Million
27/11/2021El Salvador $6 Million
28/10/2021El Salvador$24 Million
07/10/2021*Unknown$1.6 Billion*
21/09/2021*Sky Bridge$700 Million*
21/09/2021 El Salvador$10 Million*
14/09/2021MicroStrategy$240 Million
08 Sep 2021Unknown$24 Million
08 Sep 2021 El Salvador$7 Million*
07 Sep 2021El Salvador$10 Million*
24 Aug 2021MicroStrategy $177 Million*
28 Jul 2021Genesis Digital Assets$125 Million
25 Jun 2021*Ricardo Salinas$1.5 Billion*
22 Jun 2021MicroStrategy$489 Million
14 Jun 2021MicroStrategy$500 Million
26 May 2021*ARK Invest$20 Million*
20 May 2021Justin Sun$135 Million
20 May 2021Justin Sun$150 Million
18 May 2021MicroStrategy$10 Million
13 May 2021MicroStrategy$15 Million
07 May 2021*MercadoLibre$7.8 Million*
28 Apr 2021Nexon$100 Million
8 Apr 2021*Meitu$100 Million*
5 Apr 2021MicroStrategy$15 Million
18 Mar 2021Meitu$49 Million
12 Mar 2021*Purpose Bitcoin ETF AUM$900 Million*
12 Mar 2021MicroStrategy$15 Million
8 Mar 2021*Aker ASA$58 Million*
7 Mar 2021Meitu$40 Million
5 Mar 2021MicroStrategy$10 Million
24 Feb 2021MicroStrategy$1 Billion
23 Feb 2021Square$170 Million
23 Feb 2021Bitwise 10 Crypto Index Fund$1 Billion
17 Feb 2021 *The Motley Fool$5 Million
8 Feb 2021Tesla$1.5 Billion
Jan 2021 *GreyScale$1+ Billion*
10 Dec 2020MassMutual$100 Million
1 Oct 2020Square$50 Million
Jun 2020 *Galaxy Digital Holdings$150 Million
Jan 2020 *Ruffer Investment Company$745 Million
2020 *Skybridge Capital$310 Million *
2020 *GrennPro Capital$100 Million
* approximate dates and amounts

Who’s next?

DateInvestorAmount
2021*Ray DalioTBD
2021NYDIG$300 Million *
2021 *SynBiotic SETBA
2021 *Canadian ETFTBA
2021 *BlackRockTBA
2021 *PaypalTBA
2021 *MetLifeTBA
* approximate dates and amounts

Obviously, it is tough to keep a record of all the investments made recently as they are flooding in. If you spot a recent one we haven’t added please let us know on the Twitter thread.

Categories
Bitcoin Coinbase Institutions

Bitcoin Whale Moves AU$1 Billion of BTC into Storage

According to the popular blockchain tracking and analysis service Whale Alert, a user has moved 13,204 BTC worth nearly AU$1 billion out of Coinbase and into an ‘unknown wallet’. This typically indicates a wealthy individual or large institution buying Bitcoin and moving it into ‘cold storage’ such as a hard wallet for safekeeping.

The transactions happened over a one-hour period and involved 34 individual transactions of around 380 BTC each worth approximately US$21 million each. The choice of number could be a reference to Bitcoin’s 21 million supply cap but it’s probably just coincidental.

Naturally, the moves attracted attention, with several Twitter comments questioning whether this could be another big buy from Michael Saylor’s Microstrategy investment firm. However, these moves all occurred during a Sunday, which would be odd for a company or traditional financial institution.

Big BTC Moves

Although this recent transfer amounts to a considerable amount of cash, it’s relatively small compared to some previous big moves. Last year in June, just after Bitcoin’s 3rd halvening, a whale moved 132,255 BTC in three separate transfers, amounting to US$1.3 billion at the time.

In the number of actual coins moved, even that amount remains comparatively small. Way back in 2011, a single transaction was completed involving 550,000 BTC, worth a whopping US$30.8 billion today but a meager US$1.3 million at the time.

Bitcoin Continues to Push Higher

Large moves such as these indicate big players entering the market and placing their coins in longterm storage with the expectation of further growth. If an individual or company with that much money has such strong faith in Bitcoin then one can only assume a fair amount of research has gone into their decision.

Just this year alone, both Bitcoin’s individual market cap and the wider cryptocurrency market cap have almost doubled in value. Bitcoin recently crossed the significant $1 trillion mark, climbing from US$530 million on December 31st, 2020.

The price of one BTC hit a new all-time high of above US$58,600 yesterday before suffering a mild rejection that has taken it back down to US$56,000. However, the price remains above the upward trend line and has already begun to make a decent recovery.

Categories
Australia Bitcoin Institutions

Following Australia and Canada, the U.S. Could Soon Open a Bitcoin ETF

The New York Digital Investment Group —NYDIG— has filed with the Securities and Exchange Commission —SEC— for a Bitcoin ETF, with Morgan Stanley being the first authorized participant, and the NYDIG being the custodian of that crypto-fund.

Both companies are hoping the SEC will finally set the green light now that Bitcoin and crypto, inevitably, are taking institutions and the mainstream by storm.

The Long Road for Bitcoin into Institutions

From 2017 to 2019, Bitcoin has had a hard time entering into institutional systems in the U.S. —mainly, the petition for a Bitcoin Exchanged-traded fund has been rejected multiple times by the SEC.

But as more countries like Australia and Canada are moving forward with this new financial vehicle, the U.S. could finally consider allowing a Bitcoin fund, now that big players in the industry like Morgan Stanley, Tesla, Grayscale, and several more major corporations are jumping in on digital assets.

A few days ago, the Australian Securities and Investments Commission —ASIC— approved a Bitcoin ETF listing on the Australian Stock Exchange, but Canada went first, by approving the world’s first Bitcoin ETF.

Could Bitcoin Hit $100K by the end of 2021?

Most hodlers in the crypto-community are going all out in favor of $100K for Bitcoin, which could become the greatest milestone achieved by BTC since its creation.

The petition of NYDIG came shortly after Bitcoin made history yesterday, finally reaching $50,000, and slowing down to $47,000.

BTC/USD chart

It’s not about retail traders and deposited faith anymore. Major companies like Morgan Stanley and JP Morgan are exploring ways of adding Bitcoin into their sheets, now that the demand is growing stronger between accredited investors.

Categories
Australia Bitcoin Institutions

As Morgan Stanley Bets $150B in Bitcoin, Craig Wright Now Calls BTC a “Ponzi Scheme”

As Bitcoin is taking the media by storm with increasing integration to institutions and technology corporations, Craig Wright —the self-proclaimed Satoshi Nakamoto— now calls BTC a “Ponzi Scheme” where everyone will soon “jump in”.

In an interesting turn of events, the Australian man who proclaims himself the creator of Bitcoin is now —ironically— trashing his own “creation” and states that he got “insanely rich” ever since.

A $150 Billion bet on Bitcoin

Wright’s comments came shortly after JP Morgan, one of the largest investment banks in America is currently exploring investing $150 billion in Bitcoin with Counterpoint Global —one of the several Active Equity Teams from Morgan Stanley.

Bitcoin nearly reached the $50,000 price level following Morgan Stanley’s announcement, reaching a maximum trading level of $49,669.

BTC/USD Chart. A new All-Time High for Bitcoin.

But as Bitcoin takes the spotlight, Wright compares Bitcoin to a controversial $65M Ponzi scheme in the U.S., elaborated by the market maker and financial advisor Bernie Madoff in 2009.

The price goes up because people are paying and the price goes up. But that doesn’t ever last forever. Old Charles Ponzi did that one too. And Mr. Madoff … Eventually, people go. Digital gold is boring. The [paper’s] first section talks about micropayments, which were the holy grail.

Stated Wright

Likewise, this January, Wright went all out with his lawyers against several sites that posted Bitcoin’s Whitepaper, specifically, Bitcoin.org. and Bitcoincore.org. But his claims were dismissed, and several governments including Colombia and Estonia —even the City Mayor of Miami— incorporated the document on their servers.