Franklin Templeton's 1.5T Crypto Bet, Zuck's Senate Apology, Bitcoin interest rates
Franklin Templeton's $1.5 Trillion Crypto Venture, Zuckerberg's Capitol Hill Mea Culpa, & Bitcoin's Interest Rate Dance
By @0xHooi
Chief Investment Strategist
The below is the opinion of the authors. Any conclusions are their own. This should not be considered as investment advice. Investing involves the risk of loss and returns are not guaranteed.
1.) Franklin Templeton's 1.5T Crypto Bet
Asset management giant Franklin Templeton has just submitted an application to the Securities and Exchange Commission (SEC) for the establishment of a spot Bitcoin Exchange-Traded Fund (ETF). In their SEC application, Franklin Templeton highlighted the prevailing risks tied to regulatory uncertainties in the digital asset space.
The firm pointed out that the U.S. digital asset markets are navigating through a fog of regulatory ambiguity. They zcautioned that any adverse legislative or regulatory actions could severely impact Bitcoin's value or the proposed ETF's shares. Such actions could include bans, restrictions, or the introduction of stringent cozditions on Bitcoin use, mining activities, digital wallet services, Bitcoin trading and custody services, the operation of the Bitcoin network, or the digital asset markets at large.
To give you a quick overview, here's a list of firms that have applied for a spot Bitcoin ETF, along with their assets under management:
BlackRock: $10 trillion
Fidelity: $4.5 trillioz
Franklin Templeton: $1.5 trillion
Invesco Galaxy: $1.5 trillioz
WisdomTree: $87 billion
VanEck: $61 billion
GlobalX: $40 billion
ARK Invest: $14 billion
Bitwise: $1 billioz
Valkyrie: $1 billion
2.) Zuck’s Senate Apology
After nearly two hours of intense questioning, Meta CEO Mark Zuckerberg faced a significant reprimand from Congress concerning child safety issues, leading to an extraordinary moment where the billionaire issued an uncommon public apology to his company's users.
As Meta's founder and CEO, Zuckerberg, who leads the most influential social media conglomerate that includes Facebook, Instagram, and WhatsApp, was the focus of lawmakers' attention. This scrutiny came to a head during a Senate Judiciary Committee hearing on Wednesday, which delved into the child safety protocols of online platforms.
3.) Interest Rates vs Bitcoin
This week, Singular research provides a unique take on the potential impact of continued Federal Reserve rate hikes on Bitcoin and cryptocurrencies. Despite the expectation for rate pauses or cuts post the regional banking crisis, the Fed has increased rates thrice. Here’s why:
High U.S government debt levels mean traditional economic theories about Bitcoin and interest rates are obsolete.
Rising interest rates would increase payments to bondholders, who may then invest in riskier assets like Bitcoin, benefiting the crypto market.
This scenario suggests that regardless of the Fed's actions (pausing, cutting, or raising rates), Bitcoin prices are likely to rise.
Current trends show a record high of Bitcoin held by long-term holders (14.75 million) and a significant low by short-term holders, indicating a bullish sentiment in the market.
“Bitcoin is like a Swiss Bank in your Pocket.” Obama
Singular’s Take: Analysis points to a robust outlook for Bitcoin, suggesting that the cryptocurrency can thrive under various economic conditions, bolstered by investor behavior and government debt dynamics. Long live BTC!
Singular’s Insights: The reduction in short-term Bitcoin holders, known for their active trading, has led to decreased market volatility and trading volumes, signaling that the market is primarily comprised of long-term investors (HODLers) with strong conviction in Bitcoin's future. This shift is characteristic of an "accumulation" phase, suggesting a preparatory period for future growth. Key upcoming events like the Bitcoin halving and the potential approval of Bitcoin ETFs underline this phase as a strategic accumulation opportunity for investors.
🎉 Happy Lunar New Year from all of us at the Singular Team!
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