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- 🌐 Crypto is getting deported 🇺🇸👎
🌐 Crypto is getting deported 🇺🇸👎
PLUS: It looks like China is warming up to the idea of Bitcoin ETFs...
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Sup, nerds!
Here’s what you’re getting in today’s edition:
Terms used in this edition (click for an explanation, or ask Web(GPT)3!):
Decentralized exchange, hot wallet, blockchains, protocols.
💅 This is cool:
In one sentence: Someone just clocked 7,000% return on their BTC investment, the Grayscale BTC ETF saw its first ever inflow, and the crypto market has rebounded!
Alright, so the second article in today’s edition is a little depresso…
So let’s front run it with some positive, snackable, high-fructose news stories:
A mysterious Bitcoin wallet just moved some funds around for the first time since 2014.
At the time, the 687 BTC were worth around $620k…now, they’re worth a tidy $44M (give or take) — that’s a ~7,000% return.
The Grayscale BTC ETF has been bleeding money ever since it launched…until last Friday when it reported an inflow of $63M!
Grayscale’s consistent selling pressure has helped to stunt Bitcoin’s recent price appreciation. Now that it has flipped, we may be in for some solid (market wide) gains in the coming months.
The crypto market has dragged itself out of the gutter in less than a week!
Last Wednesday, BTC was at $56.5k, ETH was at $2.8k, and SOL was at $118.
Over the weekend, Bitcoin pushed as high as $65k, Ethereum returned to $3.2k, while Solana is hovering around $153 (as of this writing).
Not bad. Not bad at all.
🥇 Want the news before anyone else?
🔎 This seems important:
In one sentence: The SECs latest series of Wells notices show that this is no longer an attack on certain crypto protocols, but on the industry as whole (via its infrastructure).
The SEC has “gone full Oprah” with these Wells notices (aka: “we plan to sue you” notices).
ICYMI — in the past few weeks, the SEC has handed out Wells notices to:
Uniswap (the world’s largest decentralized exchange).
Consesnys (the creators of the world’s most popular hot wallet, MetaMask).
And just yesterday, Robinhood (you know — the app you used to buy your $GME stock with a few years back).
It’s unclear what angle of attack the SEC will take with Robinhood — but it doesn’t really matter at this point.
What matters is the larger picture that is being painted here…
Because the attack is no longer focused on any one chain or company — but instead all of the the key pieces of infrastructure that make blockchains work.
So if you only hold Bitcoin, and feel apathetic to this regulatory blitzkrieg because it’s mostly been focused on Ethereum, Solana, and XRP so far…
We have some bad news.
If the peer-to-peer exchange of cryptocurrency via apps like MetaMask and Uniswap are outlawed in the US, that same legal precedent can be wielded to prevent you from taking custody of/spending your Bitcoin.
Point is — we’re no longer talking about an attack on certain crypto protocols, but on the industry as whole (via its infrastructure).
Glass half full: even if the SEC were to succeed here, crypto would survive.
Glass half empty: regardless of whether the SEC fails or not, these continued enforcement actions will push innovation out of the US long before any of these cases are ruled on.
Two emphatic thumbs down.
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🔪 Let's dissect this:
In one sentence: It is rumored that soon qualified investors in the Shenzhen Stock Exchange could invest in BTC ETFs though the Hong Kong Stock Exchange through ‘Stock Connect.’
While the US slowly figures things out in the courtroom (see previous article), there’ve been some interesting murmurings about China letting its citizens invest in Hong Kong’s BTC ETFs.
In order to understand how they plan to do that, we first need to understand how a little thing called ‘Stock Connect’ works.
Stock Connect lets qualified investors from one market (China in this case) to access eligible shares in another market (like Hong Kong), as long as they purchase a certain amount (but not too much).
Confused? We got you.
Right now, the Shenzhen-Hong Kong Stock Connect connects the Shenzhen Stock Exchange with the Hong Kong Stock Exchange, allowing certain investors to purchase certain shares that are only available on the Shenzhen Stock Exchange (and vice versa).
Roughly one week ago, the Hong Kong Stock Exchange listed its first BTC ETFs.
And while a huge flood of money wasn’t poured in initially, these stock connect rumors would make their approvals more important than we first thought.
Not only is the Shenzhen Stock Exchange market cap bigger than Hong Kong’s, but it could open the floodgates for the other two huge stock exchanges (Shaghai and Beijing) to trade BTC through ETFs.
Before we get too excited about this it’s important to note that so far these are just rumors.
But boy is it a turnaround from when China banned Bitcoin mining and foreign crypto exchanges from offering their services to mainland customers in 2021.
Let’s see how things pan out.
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What is a Wells Notice?
👇 Other stuff you may have missed
Alright, that’s it for today!
Love to the family,
P.S. Want to learn how to research and value cryptocurrencies? We have a framework that does just that .
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