Connect with us

Market

Bitcoin Shortage? Pantera Thinks Market Rally Driven by PayPal Buys

Published

on


PayPal’s recent leap into the crypto market is helping to drive the current bitcoin (BTC) rally, according to Pantera, a prominent cryptocurrency and blockchain investment firm.

In an investor letter published Nov. 20, the venture firm compared the ongoing bull market to the last time BTC rose above $18,000, three years ago. 

“Previously the friction to buy bitcoin was pretty onerous,” the letter notes, contrasting that difficulty with how e-commerce giant PayPal has now made it easy for millions of users to become potential bitcoin, ether, bitcoin cash and litecoin buyers. 

Indeed, all eligible PayPal account holders in the U.S. can now buy, hold and sell those cryptocurrencies – sooner than the payments firm anticipated, due to steep customer interest. Additionally, the firm recently upped its weekly crypto purchase limits to $20,000 from an initial $10,000. 

“BOOM! The results are already apparent,” Dan Pantera, chief executive and founder of the eponymous fund, wrote in the November letter. “When PayPal went live, volume started exploding.”

Panterra claims that PayPal is already buying almost 70% of the new supply of bitcoins. Together with Square’s Cash App routine bitcoin buying, more than 100% of all newly minted bitcoins is accounted for, Panterra alleges.

The Bitcoin network issues new BTC on a fixed and predetermined schedule. Only 6.25 new BTCs are mined every 10 minutes, following this year’s “halving,” an amount that will continue to decrease every four years until all 21 million BTC enter circulation.

Panterra’s thesis centers around a supply-side understanding of the bitcoin market. The idea is that as the supply of BTC decreases, due to lower mining rewards, the demand naturally increases – leading to an appreciation in price. 

“When other, larger financial institutions follow [PayPal’s] lead, the supply scarcity will become even more imbalanced. The only way supply and demand equilibrates is at a higher price,” Panterra wrote.



Source link

Market

Libra Association Taps Saumya Bhavsar as General Counsel for Payments Subsidiary

Published

on

By


The Libra Association, the organization developing the Facebook-backed cryptocurrency project libra, has hired a former banking regulator and industry veteran as general counsel for its payments subsidiary.

The hire, Saumya Bhavsar, will assist Libra Networks in “launching and managing a compliant payment system” the Swiss-based association said Wednesday. That could be crucial for a project that faces regulatory headwinds at seemingly every turn.

Bhavsar will be calling upon 25 years in banking regulation across the public and private sector. She was a senior attorney at the U.S. national banking regulator the Office of the Comptroller of the Currency in the late 90’s and early 00’s.

She then pivoted to private sector regulatory roles at Euroclear, UBS and Credit Suisse, her LinkedIn profile shows. Bhavsar spent the most recent three years at Credit Suisse.



Source link

Continue Reading

Market

VanEck Launches Bitcoin-backed ETP in Germany

Published

on

By


VanEck has pushed out of the US into the European markets and, with favorable regulations, it expects to have a better embrace in the region where similar products are already available.

Investment management firm VanEck has successfully launched a bitcoin-backed Exchange Traded Product known as an Exchange Traded Note (ETN) on the Deutsche Borse Xetra exchange. According to a report by Funds Europe, the move by VanEck to launch the exchange-traded product (ETP) models that of other European Exchange Traded Fund Issuers who had made similar moves in the past.

According to the Funds Europe report, the VanEck ETP Bitcoin ETN has a total expense ratio of 2% and it will allow investors to gain exposure to Bitcoin (BTC) without having to purchase the premier digital currency themselves. “Today @vaneck_eu launched a #Bitcoin ETN. The ETN is physically-backed by Bitcoin and listed on Deutsche Böerse Xetra. Launching a Bitcoin ETP was a top priority for VanEck. We succeeded! VanEck hopes to serve many in Europe and Asia!” Gabor Gurbacs, VanEck’s digital asset strategist/director revealed in a tweet.

Gurbacs noted that the bitcoin-backed ETN is 100% physically backed meaning that any ETN invested in by an investor will be used to purchase the equivalent amount of Bitcoin. With professionally managed offerings, Gurbacs affirmed that the company’s ETN features transparent pricing with reliable investor protections.

The custody for the Bitcoins purchased through the VanEck ETP services will be offered by Liechtenstein-based crypto custodian Bank Frick. Frick will provide the Cold storage options for any deposited Bitcoin.

VanEck and Its Way to Bitcoin-Backed ETP Approval

The desire by VanEck to launch a bitcoin-backed ETP dates back to a few years ago when it made several attempts to launch the product in the US.

“Bringing to market a physical, fully-backed major exchange-listed bitcoin ETP was a top priority for our firm,” Gurbacs was quoted as saying. The United States Securities and Exchange Commission (SEC) has wielded its strong-arm into denying the VanEck the privilege of rolling out the product through a delay of crucial meetings and events where the decision to approve the application was to be made.

The haul has been a long one for VanEck. And the limited version of a Bitcoin exchange-traded fund which it launched as reported by Coinspeaker back in September 2019 has not seen so much success as it was only able to issue just 4 Bitcoins upon launch.

VanEck has pushed out of America into the European markets and with favorable regulations, it expects to have a better soft landing and embrace in Germany and the rest of Europe where similar products are already on offer.

next Bitcoin News, Cryptocurrency news, News

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.





Source link

Continue Reading

Market

US Intelligence Chief Raises Concerns With SEC Over China’s Crypto Dominance: Report

Published

on

By



U.S. intelligence chief John Ratcliffe was reportedly seeking clearer regulation around digital currency.



Source link

Continue Reading

Trending