The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Wednesday! Here's what you need to know today in crypto: |
- The discount for Grayscale's GBTC continues to narrow as investors await a bitcoin spot ETF decision from the SEC.
- The EU formally agrees on new crypto tax data-sharing rules.
- Reddit has shut its blockchain-based community points program.
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CoinDesk Market Index (CMI): 1,129 −0.5%
Bitcoin (BTC): $28,402 −0.3%
Ether (ETC): $1,584 −0.1%
S&P 500: 4,373.20 −0.0%
Gold: $1,959 +1.9%
Nikkei 225: $1,959 +1.9% |
The discount for Grayscale's Bitcoin Fund (GBTC), the world's largest bitcoin investment vehicle, narrowed further on Tuesday on optimism a bitcoin spot exchange-traded fund (ETF) might be on its way in the U.S. The gap between GBTC shares and the trust's net asset value (NAV) shrank to 12%, the closest they have traded to NAV since December 2021, according to data from TradingView. GBTC has traded at a discount since February 2021 and reached a record low of nearly 50% in December last year during the prolonged crypto winter. The company said on Monday it is "operationally ready" to convert GBTC into an ETF upon the SEC's approval. |
GBTC Discount (TradingView) |
New European Union rules that let tax authorities share data on individuals' crypto holdings were formally adopted by the bloc's finance ministers on Tuesday. The document will now be published in the EU's Official Journal and enter into force 20 days later. The rules were proposed last year in a bid to block assets from being stashed overseas using crypto and had unanimous support from EU member states with discussions mostly taking place behind closed doors. In May, a copy of the draft bill showed the rules extend an existing law to cover a wide range of digital assets, confirmed on Tuesday to include stablecoins, non-fungible tokens and decentralized finance tokens as well as proceeds from crypto staking. The law, known as the Eighth Directive on Administrative Cooperation, forces crypto companies to report information on customers' holdings that will automatically be shared between tax authorities. Reddit is shuttering its roughly three-year-old blockchain-based Community Points program, reports TechCrunch. "Though we saw some future opportunities for Community Points, the resourcing needed was unfortunately too high to justify," Tim Rathschmidt, Reddit's director of consumer and product communications, told TechCrunch. "The regulatory environment has since added to that effort," he added. Moons (MOON), the native token of Reddit's r/CryptoCurrency community, was lower by 85% on the news on Tuesday, while Bricks (BRICK), distributed as a reward for contributions in the r/Fortnite subreddit, was down 67%. Donut (DONUT) the token that represents the community points of the r/ethtrader subreddit was off 66%. |
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Market Insight: Tokenized RWAs Could Grow to a $10T Market by 2030 |
The market for tokenized assets could grow to as large as $10 trillion in this decade as traditional financial (TradFi) institutions continue to adopt blockchain technology, digital asset management firm 21.co said in a report. "The convergence between crypto and traditional asset classes, including fiat currencies, equities, government bonds, and real estate, is experiencing an unprecedented growth," the report said. "We estimate that the market value for tokenized assets will be between $3.5 trillion in the bear-case scenario and $10 trillion in the bull case by 2030." The forecast joins a slew of recent reports and predictions about the potential of tokenizing real-world assets (RWA), crypto's buzzword for placing traditional financial products such as private equity, debt and real estate on blockchain rails. |
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- The chart shows performance of bitcoin (on the left) and gold since the onset of the Israel-Hamas conflict on Oct. 7.
- Gold has surged nearly 7.5% since Oct. 7, while bitcoin has continued to trade in familiar price ranges around $28,000.
- The leading cryptocurrency, widely touted as digital gold, is yet to draw safe haven demand.
- Source: TradingView
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A message from MultiversX |
Europe's leading Web3, AI & Metaverse conference comes to Bucharest between 19-21 October. More than 3,000 participants, including government officials, venture capitalist funds, and key industry players will be present at xDay2023 to unveil the latest technical innovations, strategic partnerships and products. In parallel with xDay, within the grand Palace of Parliament, MultiversX, the organizer of xDay, will host a hackathon offering prizes totaling up to $1 million. Meet the builders that write the future of technology: xday.com |
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Hear from Key Lawmakers and Regulators at State of Crypto: Policy and Regulation |
Several lawmakers and regulators shaping the future of digital assets policy have committed to joining CoinDesk's inaugural State of Crypto: Policy and Regulation, a one-day boutique event uniting key policymakers, regulators and government officials with legal, policy and compliance executives representing the largest and most influential TradFi and DeFi leaders in asset management and financial services. The gathering provides an unprecedented opportunity to evaluate, dissect and ultimately shape crypto regulatory frameworks that support a vibrant, secure and healthy future for the digital economy. Are you a GC, CCO, CLO, COO or head of policy or government affairs evaluating or actively investing in digital assets? Join State of Crypto to help drive crypto policy forward collaboratively. Save 10% with code FM10. Learn more and register. |
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| Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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