Welcome to the Satoshi’s Index weekly news brief. Bitcoin has rallied by over 80% in the first half of 2023, outperforming traditional risk assets by a significant margin. The recent bullish momentum is attributed to positive news surrounding Bitcoin ETFs and the launch of a new institutional exchange. Here’s the headlines, a 1.5 minute read or 2 minute listen. Let’s get into it…
1. SEC Approves First Leveraged Bitcoin Futures ETF.
The first leveraged Exchange-Traded Fund in the United States, BITX, launched on Tuesday. Within leveraged ETFs, the fund does not buy Bitcoin directly, but invests in Bitcoin futures which are legal contracts to buy or sell Bitcoin at a future date. There are two main types of Bitcoin ETFs: Leveraged (Bitcoin futures) and Bitcoin spot.
What it means: We are still waiting on the first US Bitcoin spot ETF to be approved by the SEC to help accelerate the next bull market. A Spot ETF will buy Bitcoin directly and will be inherently less risky and a better choice for a majority of investors. Bitcoin ETFs are already common place in other countries like Canada, Dubai, and Brazil.
2. The new Charles Schwab and Citadel-backed crypto exchange isn’t for everyone.The newest major cryptocurrency exchange, EDX Markets, is now live. Backed by Citadel Securities, Fidelity Investments and Charles Schwab, EDX will offer trading in four cryptocurrencies: Bitcoin, Ethereum, Litecoin and Bitcoin Cash. EDX offers API access but doesn’t offer a front end graphical trading experience, so the target audience isn’t casual retail investors.
Why it matters: EDX is offering a crypto on ramp aimed at institutional investors in the US. This will only make it easier for more investment to move into the crypto space.
3. It’s not all about America and Europe, Asia crypto adoption is on the rise.
Despite the largest news headlines tending to focus on the US and Europe, momentum from Asia is quietly increasing and will play a big part of global adoption over the next few years. The Global Crypto Adoption Index tracks this momentum with countries like Vietnam, the Philippines, India, Pakistan, and Thailand leading the way. Private banks like Xapo, are aggressively expanding into India and South Asia. They are capturing crypto interest in these regions by offering services like a Bitcoin wallet with 1% interest on deposits.
Thanks for tuning into the Satoshi’s Index news brief! We’ll be back next week for more…