BitDigest February 24 · Issue #848

Feb 24, 2021
  • All aboard the crypto roller coaster, bitcoin back above $50,000 as crypto market gains 10.9% over night
  • ECB looking to regulate stablecoins
  • US Fed Chair calls investigation into digital dollar “appropriate” and commits to open and transparent discussions
BitDigest February 24 · Issue #848

Investors will be watching closing pricing on GBTC and BTCC today as the premium to NAV for the Grayscale Bitcoin Trust fell into negative territory at yesterday’s close, dropping below the premium for leading Canadian ETF Purpose Bitcoin.

The Headlines

BitDigest February 24 · Issue #848

ECB Wants Veto Power Over Stablecoins
The European Central Bank has issued a legal position stating the Europoean central bank should have the final word on whether a stablecoin should be allowed to launch in the euro zone without jeopardizing the ECB’s control over inflation or the safety of payments.
BitDigest February 24 · Issue #848

Fed Looking 'Very Carefully' at Issuing Digital Dollar
📺Federal Reserve Chairman Jerome Powell told the Senate Banking committee the Fed is looking “very carefully at the question of whether [they] should issue a digital dollar” calling this an “appropriate” action given the development of new technology by both central banks and private sectors actors. Powell explained that there remains “significant technical and policy questions” that must be overcome but “committed to solving the technology problems and to consulting very broadly with the public and very transparently with all interested constituents” as to whether a digital dollar should be issued.
BitDigest February 24 · Issue #848

CBDC is a "Work in Progress"
The Governor of the Reserve Bank of India (RBI) Shaktikanta Das said he has “major concerns [about crypto] from the financial stability angle” adding that the RBI is “targeting to launch” a central bank digital currency and it remains a “work in progress,” however “it will be very difficult and not possible … to give a date [for release of the CBDC] as there are several loose ends that need to be tied up and it is receiving [the RBI’s] full attention.”
BitDigest February 24 · Issue #848

BoJ to Start CBDC Pilots in the Spring
The Bank of Japan has reiterated that it has no immediate plans to issue a digital currency but will start experimenting with different offerings this spring. In the first phase, which is expected to last a year, the BoJ plans to work with private businesses to test the basic function of a digital currency, including how it would be issued and circulated.
BitDigest February 24 · Issue #848

BIS Joining Asian Effort to Test CBDC
Yesterday I reported that the People’s Bank of China and Central Bank of the UAE was joining the Hong Kong Monetary Authority and Bank of Thailand to conduct new tests of cross-border central bank digital currencies. The Bank of International Settlements, through its innovation hub, will also be partnering with this effort.
BitDigest February 24 · Issue #848

Russian Orthodox Church Not Planning to Issue Digital Currency or Accept Crypto Donations
The Russian Orthodox Church, the dominant religion in Russia with roughly 100 members, announced that it is not planning to develop its own digital currency nor is it likely to accept crypto donations or offerings.
BitDigest February 24 · Issue #848

Bitfinex and Tether Settle with NYAG
The Office of the New York Attorney General announced a settlement with Bitfinex and Tether over the crypto firms alleged misuse and commingling of company funds. Under the terms of the agreement, the firms will not be required to admit any wrongdoing but will end all trading activity in the State of New York and pay a $18 million fine. 🅱️A friend joked that the fine should not be a hardship as Bitfinex can just print more USDT. 😂
BitDigest February 24 · Issue #848

SQ Reports on Bitcoin Activities
📈Square (NASDAQ: SQ) announced it purchased an additional $170 million in bitcoin during the fourth quarter bringing its total purchases of BTC to $220 million representing 5% of the company’s total cash and marketable secutries. In addition, the company reported that bitcoin added over $1.7 billion in revenue and $41 million of gross profit to the payment company’s Cash App, a year-over-year increase of 10x and 13 x respectively. For the full year of 2020, Cash App generated $4.57 billion of bitcoin revenue and $97 million of bitcoin gross profit.
BitDigest February 24 · Issue #848

BTBT Adding More Mining Rigs
📈Bitcoin mining company Bit Digital (NASDAQ: BTBT) announced new hosting partnerships to add 4,000 new mining rigs to its total production capacity with colocation facilities Compute North and Link Global Technologies (CNSX: LNK)
BitDigest February 24 · Issue #848

Northern Data Eying US Listing
📈German OTC listed Northern Data, the operator of the world’s largest bitcoin mining operations with planned capacity of 1 gigawatt in Rockdale Texas, is working on a US public listing that could raise as much as $500 million.

Market Data

BitDigest February 24 · Issue #848

Bitwise Crosses $1 Billion AUM Level
Bitwise Asset Management, the manager of the Bitwise 10 Crypto Index Fund (OTCQX: BITW), has surpassed $1 billion in assets under management.

Exchange, Custody and Product News

BitDigest February 24 · Issue #848

CoinShares to Offer ETH ETP
📈Digital asset investment manager CoinShares is launching a physically backed, exchange-traded product (ETP) for ether. It will be listed under the ticker ETHE on the SIX Swiss Exchange and will have a base fee of 1.25%.
BitDigest February 24 · Issue #848

Kraken Issues Response on Market Selloff
Rumblings in the cryptoverse have accused a technical glitch at Kraken for causing this week’s crypto sell off. Kraken released a post explaining that the US-based exchange, “performed a detailed investigation of [this week’s] events and have found the trading engine processed orders correctly. Despite severe load, the platform continued executing trades throughout the market move.”
BitDigest February 24 · Issue #848

Brave Releases 2.0 Roadmap
The Brave browser released a roadmap for the next 18 months of its 2.0 development highlighting that a new native Ethereum wallet integration will be adopted and that the browser will bring DeFi to everyone through a new decentralized exchange aggregator to enable token swaps with distinct advantages and added value for Brave/BAT users. 🅱️I have written many times about Brave, having used it as my primary browser for the past few years. Not only is it faster and offers privacy than other browsers on the market but you can chose to be paid to view ads; this month alone I have earned 36 BAT ($18.63) so it is definitely worth trying.

Thoughts on the Ecosystem

BitDigest February 24 · Issue #848

BTC Could Become 'Native Currency of the Internet'
📈Square (NASDAQ: SQ) CFO Amrita Ahuja supported the payment platform’s bitcoin activity saying that bitcoin has the potential to become the “native currency of the internet” and SQ wants to participate and learn about it in a disciplined way.
BitDigest February 24 · Issue #848

Aunt Cathie Remains ‘Very Positive’ on Bitcoin
📺Ark Investment Management’s Cathie Wood, who is gaining the new online trading moniker of “Aunt Cathie” remains “very positive on bitcoin” and “happy to see a healthy correction” reminding investors that “no market is straight up” and advising them to “have dry powder for days like these.”
BitDigest February 24 · Issue #848

Citi Says Bitcoin Is Stealing Gold's Thunder
Citigroup analyst Aakash Doshi suggests has lowered his price target on gold due to the belief that digital gold is gaining market share from its tangible partner; “in the last 19 weeks, gold ETFs and Bitcoin posted net weekly flows and asset under management trends in opposite directions on about a dozen occasions,” he wrote.

Reports you may have missed

CRYPTO MARKET UPDATE CRYPTO HAS RESUMED ITS RECENT WEAKENING TREND FOLLOWING A WEEKEND PUMP, WITH BTC -0.47% TESTING THE $65K LEVEL, ETH -0.21% TRADING AROUND $3500, AND SOL 1.57% APPROACHING $140. The ETHBTC ratio is declining again after a weekend relief rally sparked by news from Bloomberg ETF expert Eric Balchunas on Friday evening, clarifying his timeline for the ETH ETF launch. Meanwhile, the DXY continues its upward trajectory from the post-CPI selloff,...

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