Crypto Weekly Wrap: July 21, 2023

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21 Jul 2023

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Hello and welcome back to my Crypto Weekly Wrap, where I bring you the top news from the world of crypto every week.

In this edition, I cover the SEC accepting BlackRock’s Bitcoin ETF application, Tesla’s unchanged Bitcoin holdings, G20’s push for global crypto regulations, and an increase in Bitcoin’s Hash Rate. Let’s dive in!

🚀 BlackRock Gets Green Light for Bitcoin ETF

The US Securities and Exchange Commission (SEC) has approved the first Bitcoin exchange-traded fund (ETF) in the country, paving the way for more institutional adoption of the leading cryptocurrency. The ETF is sponsored by BlackRock, the world’s largest asset manager with over $9 trillion in assets under management.

According to the SEC filing, the BlackRock Bitcoin ETF will track the performance of the CME CF Bitcoin Reference Rate (BRR), which is a daily benchmark price for Bitcoin based on data from major spot exchanges. The ETF will invest in Bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME) and will charge a 0.5% annual fee.

The approval of the BlackRock Bitcoin ETF is a major milestone for the crypto industry, as it will provide investors with a regulated and convenient way to gain exposure to Bitcoin without having to buy or store it directly. The ETF is expected to launch in August and will trade under the ticker symbol BKBTC.

🚗 Tesla Holds On To Its Bitcoin

Tesla, the electric car-maker led by Elon Musk, has revealed that it did not sell any of its Bitcoin holdings in the second quarter of 2023, despite the sharp drop in the cryptocurrency’s price. Tesla’s investment in Bitcoin was worth $2.48 billion as of March 31, up from its initial investment of $1.5 billion that it disclosed in February 2022.

Tesla sold 75% of its Bitcoin holdings in Q2 2022, citing environmental concerns and volatility risks. However, since then, Tesla has maintained its remaining $184 million worth of Bitcoin as a long-term asset on its balance sheet. Musk has also reiterated his support for crypto and has boosted Dogecoin with his tweets and memes.

Tesla’s diamond hands show that the company still believes in the future of Bitcoin and crypto, despite the challenges and uncertainties in the market. Tesla also reported higher-than-expected profit for Q2 2023 and promised a “record-breaking second half” to the year.

🌎 G20 Sets Out Global Rules for Crypto Firms

The G20 nations have welcomed a new set of globally-agreed standards for crypto firms to follow, issued by the Financial Stability Board (FSB), an international body that monitors and makes recommendations on the global financial system. The policy recommendations aim to promote a consistent regulatory framework that addresses the risks and opportunities posed by crypto assets.

The FSB’s recommendations focus on three areas: ensuring adequate safeguarding of client assets, addressing risks associated with conflicts of interest, and strengthening cross-border cooperation. The recommendations also cover stablecoins, which are digital tokens pegged to fiat currencies or other assets.

The FSB’s global rules are expected to increase the oversight and accountability of crypto firms, as well as enhance consumer protection and financial stability. However, some experts have criticized the recommendations as vague, outdated, and not keeping in mind the fundamentals of the crypto ecosystem. The G20 nations have urged their members to implement the recommendations by July 2024.

🔥 Bitcoin Hash Rate Recovers After China Crackdown

The Bitcoin hash rate, which measures the computing power of the network, has recovered to over 400 exahashes per second (EH/s). The hash rate is an indicator of how healthy and secure the Bitcoin network is at any given time.

The recovery of the hash rate shows that miners have relocated to other regions or countries that are more friendly to crypto mining, such as Kazakhstan, Russia, Canada, and the US. The hash rate also affects the difficulty of mining new blocks, which adjusts every 2016 blocks or roughly every two weeks. The difficulty has decreased by over 50% since May, making it easier and more profitable for miners to mine Bitcoin.

The resilience of the Bitcoin network amid external shocks demonstrates its decentralized and adaptive nature. As more miners join or rejoin the network, the hash rate and difficulty will likely increase again, ensuring that blocks are solved at a constant time frame of about 10 minutes.

Here are some other updates from the crypto industry:

Ron DeSantis Vows to Ban CBDCs in the US If Elected President
Cathie Wood’s Ark Invest Sells More Coinbase Shares Worth Over $50 Million 💰
Spanish National Museum Thyssen to Mint Exclusive Collection of Van Gogh NFTs ❗️
Entity Representing Binance Customers Seeks Compensation ⚖️
National Australia Bank Joins Crypto Exchange Boycott, Cites ‘Scams’🏦
Ethereum Scaling Solution zkSync Unveils Latest Prover Tech ‘Boojum’🚀
A16z-Backed cLabs Submits Plan for Celo To Transition Into Ethereum Layer 2❗️
Brazilian CBDC Allows Government to Freeze Funds, Developer Finds🔎
South Korea’s Shinhan Bank Tests Stablecoin Payments on Hedera Network
Prime Trust Put into Receivership Amid Shortfall in Funds, Charges It Misused Customer Money ⚖️
Futureverse Raises $54 Million From 10T, Ripple Labs for Metaverse Push 💰
Dormant Pre-Mined Ethereum Worth $116M Resurrects After 8 Years 🐳
Ex-FTX Chief Operating Officer Constance Wang Emerges at Sino Global 🤔
Nasdaq Drops Plans for Crypto Custody Service ❌
US Bill Targets DeFi Sanctions Violations ⚖️
SEC Chair Seeks More Budget for Crypto Oversight 🧐
RFK Jr. Proposes to Back Dollar with Bitcoin, End Bitcoin Taxes 🤞
Kuwait Bans Crypto and Virtual Assets Transactions ❗️
Crypto Thieves Target Canadian Homes 🏠
Coinbase to Shut Down Lending Program ❌
U.S. House Republicans Introduce Crypto Oversight Bill
Binance Labs Invests $10 Million in Cross-Chain DeFi Lender Radiant Capital 💰
UK Financial Watchdog Announces Launch of Permanent Digital Sandbox in August

You can read about all these articles in detail in my daily crypto news roundup.

Conclusion

That’s all for this week’s Crypto Weekly Wrap. I hope you enjoyed this edition and learned something new. If you did, please share it with your friends and subscribe to my newsletter for more crypto news and insights.

And don’t forget to leave a comment below and let me know what you think about the latest developments in the crypto space. Thanks for reading and see you next week!

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