Another spot Bitcoin ETF is in the books ??; The rise of AI-enabled fraud ???? & More! ??

???Hey,?Linas here!?Welcome to a????weekly free edition????of my daily newsletter. Each day I focus on 3 stories that are making a difference in the financial technology space. Coupled with things worth watching & most important money movements, it’s the only newsletter you need for all things when Finance meets Tech.

If you’re not a subscriber, here’s what you missed last week:

1. The ultimate Financial Plan for SaaS Startups???????[an invaluable resource to all because every company is a SaaS company]
2. More Generative AI is coming to Finance as Ramp acquires AI startup Cohere????? [more genAI is coming to finance + a good time to revisit 4 essential M&A templates]
3. American Express is doubling down on SMEs. And winning????[& how it’s building a B2B FinTech giant]
4. Angel investment platform to close the gender investment gap????
5. FinTech IPOs are still alive as CAB Payments raises ~￡335M in London?????
6. FinTech startup focused on undocumented immigrants????
7. M&A creates Europe's latest FinTech unicorn???

and more! Don't miss out and join the community here????

Last week (3-7 July) was another super exciting and hot week in the world of #Blockchain and #Cryptocurrency.?We will look at another spot Bitcoin ETF that’s in the books (it’s a trend driving BTC up); the rise of AI-enabled fraud (we must start paying attention asap!), and other interesting news and developments.

Without further ado, let us dive into what happened in the Blockchain & #Crypto sector last week. Let’s connect the dots.

Another spot Bitcoin ETF is in the books ??

The news ???Valkyrie Funds, a firm seeking to launch a spot bitcoin ETF, has proposed a surveillance sharing agreement with leading crypto exchange Coinbase .

More on this ???In a recent 19b-4 filing with Nasdaq , Valkyrie listed Coinbase as its surveillance-sharing partner, following a trend seen in other ETF applications that have been refiled in recent weeks.

Coinbase's significant role in US-based Bitcoin trading was cited in the filing, as it operates the largest spot trading platform for Bitcoin paired with USD.

?? THE TAKEAWAY

Looking ahead ???As written last week, this is becoming a trend and now probably is a matter of WHEN not IF. Although the SEC has not yet approved a spot Bitcoin ETF, the inclusion of Coinbase in surveillance-sharing agreements by major asset managers like BlackRock and 富达 has intensified the race. The excitement surrounding these filings has contributed to a more than 14% surge in the price of Bitcoin over the past month, with the cryptocurrency currently trading at around $30,00.

ICYMI: More Finance Giants follow BlackRock in filing for a Bitcoin ETF???

The rise of AI-enabled fraud ????

New data ?? Sift, a US-based fraud detection provider, has released a new interesting report highlighting the rise of AI-enabled fraud.

This short yet good read provides some valuable insights we must all know. Let’s take a look.

More on this ???According to Sift 's Q2 2023 Digital Trust & Safety Index, over two-thirds of US consumers have experienced an increase in spam and scams, attributed to the emergence of consumer-oriented generative AI tools in late 2022. That’s a lot…

The report also reveals that approximately 50% of consumers struggle to identify scams, and around 20% have fallen victim to successful phishing attempts.

On top of that, the surge in AI-empowered scams has led to a significant rise in account takeover attacks (ATO), with the ATO rate increasing by 427% in Q1 2023 compared to the entirety of 2022.

?? THE TAKEAWAY

What this means? ???First and foremost, it’s clear that the marketability and accessibility of fraud tools - whether AI-based ones or not - are some of the key factors contributing to the democratization of fraud. This means that anyone, regardless of their prior knowledge, can now utilize stolen credentials or payment information to commit fraud. More importantly, although generative AI is a somewhat recent development, its potential for fraudulent activities and its impact on consumers and businesses cannot be ignored. To mitigate these new threats and safeguard revenue and customers, businesses must adopt AI and automation, which can not only enhance security but also reduce friction for legitimate users. With that in mind and looking at the big picture, I must say that I’ve never been more bullish on AI-powered RegTech solutions. Both in FinTech and Web3.

ICYMI: RegTech will be the hottest thing in Web3 in 2023???

Extra Reads & Quick Bites for Curious Minds??

• Monzo moves ????Insurtech?Qover?partners with UK digital bank?Monzo?to provide a tailored travel insurance solution that can be accessed by Monzo Bank Premium account holders in the UK. The program is orchestrated by Qover , utilizing its embedded insurance orchestration platform, and underwritten by?Zurich Insurance.?ICYMI: The Monzo Pivot, or how challenger bank transformed itself in just 2 years???
• Onfido's valuation ??Publicly listed FinTech VC Augmentum Fintech published its?annual results?lately, and Sifted spotted a mark-down in its portfolio. It's downgraded the estimated value of its holding in?Onfido?by a third, from around ￡15M to ￡10M, which it worked out based on revenue multiples. The digital identification startup's losses were up 30% in 2022 from 2020 when it last raised funds.?Ouch.?ICYMI: More investors wipe 40% off Revolut valuation???

Money Moves??

• AI-powered Order-to-Cash provider?Sidetrade?has announced the complete acquirement of the US-based real-time B2B credit risk solution provider?CreditPoint Software.
• UBS?has led a €10M seed round in Swiss business finance startup?Numarics. Founded in 2020, Numaric's AI-powered platform combines software with human experts to give SMEs access to services often reserved for Big Four customers, eliminating the need to use different software for accounting, invoicing, document management, and liquidity planning.
• Masroofi, an Egyptian fintech startup providing digital payment services to children between the ages of 5 and 15, has secured $1.5M in funding from unnamed investors. This amount will enable the startup to widen its reach in terms of service delivery.

Continue reading by subscribing to?Linas's Newsletter.?You will receive fresh news about FinTech, Blockchain & Crypto with hot takeaways every day.

P.S.?You might enjoy my earlier pieces as well:

?? Top 10 FinTech predictions for 2023 ??

?? Top banking trends to watch in 2023 ??

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About: I am?a business developer, sales professional, FinTech strategist, as well as Cryptocurrency and Blockchain enthusiast. I'm highly passionate about Financial Technology and Digital Innovation, and strongly believe that it will change the world for the better. Apart from my daily job at a global payments startup where I'm leading the company's expansion into Europe, I'm an active member of the FinTech community and a TechFin evangelist.

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