10/22 FAL Weekly Digest
Welcome to the FAL Weekly Digest, a source for this week’s biggest news articles and crypto market updates.
Here is what you need to know:
Investors celebrate as the first U.S. based Bitcoin ETF was listed Tuesday on the New York Stock Exchange.
Bitcoin Futures ETF is Approved
The United States Securities and Exchange Commission (SEC) has finally approved the trading of Bitcoin futures exchange traded funds (ETFs), clearing the path for several BTC related ETFs that have been waiting for approval and listing.
The ProShares fund $BITO was the first of these ETFs to be listed on the New York Stock Exchange (NYSE) on Tuesday, closing the day with over $1 billion worth of shares traded in its first market session. For more information on what a futures ETF is, check out our guide found here.
Following the authorization of $BITO, digital investment group Grayscale jointly filed with the NYSE to convert their Bitcoin Trust into a Bitcoin Spot ETF. The Grayscale Bitcoin Trust was launched in 2013 and is now one of the largest Bitcoin investment related products in the world, holding about 3.5% of all Bitcoin.
Market Analysis - Bitcoin
Bitcoin reached a new all time high price of about $67,000 USD per coin on Wednesday after a six month period of depreciation since April. At the time of publication, the overall crypto market capitalization is about $2.5 trillion, exceeding previous market highs established in May 2021. Bitcoin’s market capitalization is $1.1 trillion, making up 45.5% of the overall cryptocurrency market.
As pictured above, Bitcoin has breached past the previous all time high price established in April 2021 of $65,000. The new ATH of $67,000 was observed on Wednesday. Bitcoin has seen two lower daily closes (red candles) since then, indicating that the market is undergoing a price correction after the significant rally. For a more indepth technical analysis, please see our post found here.
While much of Bitcoin’s recent price action can be attributed to speculation regarding the impact of the first Bitcoin ETF listing, some analysts suggest that inflation scares have prompted investors to turn to Bitcoin as it is increasingly seen as the superior hedge against monetary devaluation compared to gold.
Facebook’s Crypto Excursion Receives Criticism
Facebook has announced a pilot program for its new digital wallet “Novi” in the U.S. and Guatemala where users will be able to send and receive the Pax Dollars stablecoin (USDP). Coinbase has partnered with the social media giant to provide custodial services for cryptocurrency used on Novi.
While Facebook’s entry into the crypto space has generally been seen as bullish, critics have begun to speak out against its plans including politicians. Five senators from the Senate Banking Committee have urged the company to halt advances in the projects, stating that Facebook’s business decisions “have harmed its users and broader society.”
Senator Elizabeth Warren called for the project’s termination, stating that “given the scope of the scandals surrounding your company, we write to voice our strongest opposition to Facebook’s revived effort to launch a cryptocurrency and digital wallet, now branded ‘Diem’ and ‘Novi.’” For more information regarding Facebook’s digital affairs, be sure to read our full article found here.
The Weeknd Joins Tom Brady in NFT Expansion
Prominent musician The Weeknd has joined Tom Brady on the board of directors of the NFT platform “Autograph” as it expands into music. In addition to adding celebrities, Autograph has also added FTX CEO Sam Bankman-Fried to the board as the platform attempts to secure its place in the race for dominance in the NFT industry.
“As an artist, I am always compelled to push the boundaries of how to deliver art within culture and have been intrigued with NFTs for some years,” said The Weeknd in a release. “I was eager to join Autograph in launching a new vertical in the music space that explores what the metaverse could be.” For more information, check out our full write up found here.
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