Blockchain founders, enthusiasts and financiers –
This is CCM’s Blockchain Weekly Newsletter. Last Friday (7/29), Schwab announced the launch of the Schwab Crypto Thematic ETF (NYSE Arca: STCE), which comprises companies enabling the use of digital assets to buy or sell goods and services, as well as those developing blockchain applications. Of note, the fund will not invest directly in crypto.
Other large asset managers have brought similar products to market this year
- BlackRock launched the BlackRock iShares Blockchain and tech ETF (IBLC)
- Fidelity launched the Fidelity Crypto Industry and Digital Payments ETF (FDIG)
- Competition is heating up: Schwab is undercutting their peers on the expense side
- Schwab’s expense ratio will be 30 bps, while BlackRock and Fidelity are charging 47bps and 39bps, respectively
Pressure continuing to mount on regulators for spot Crypto ETFs
- While the ETFs mentioned above do not invest directly in crypto, asset managers in the space, namely Grayscale (Digital Currency Group) and Cathie Wood’s ARK, have been pushing to get a spot bitcoin ETF approved by regulators
- Derivative ETFs exist in the US, such as the ProShares Bitcoin Strategy ETF (BITO) and Grayscale’s bitcoin trust, which is structured as a trust rather than an ETF
- A spot bitcoin ETF is one that can be bought on a standard securities exchange, and based on the actual price of bitcoin (not a derivative futures price, as some exist currently)
- Spot crypto ETFs have been repeatedly rejected by the SEC, even pushing Grayscale to sue the SEC after multiple rejected attempts
Spot crypto ETFs are not allowed in the United States, although several exists in other markets
- Canada has several crypto focused ETFs trading on the Toronto Stock Exchange (TSX), with billions in AUM
- 3iQ Coinshares, Purpose Bitcoin and CI Galaxy Bitcoin are three of the largest funds
- Germany and Switzerland have opened physically backed exchange traded products (ETPs)
- The 21Shares bitcoin ETP, which is 100% exposed to spot BTC, is listed on both the Swiss Exchange and several German exchanges
- Brazil has also recently entered the bitcoin ETF space, with a spot based option
- QR Capital’s bitcoin ETF is trading on the S?o Paulo exchange and holds 100% BTC
- Some of the week’s biggest news
- Valuation and operating metrics for publicly traded companies
- The latest VC funding metrics
- M&A deal flow
- and often we’ll include deeper dives to help understand various aspects of the ecosystem
- this week we take a look at “The Blockchain Trilemma” and how it affects scalability
Solana Set to Open IRL Retail Store and Web3 'Embassy' in New York (Decrypt)
- A Solana-themed store is set to open its doors in New York City
- Called Solana Spaces, the new store is located in Hudson Yards and is being launched in collaboration with the Solana Foundation
- Brands like the Ethereum NFT collection Bored Ape Yacht Club have even branched out into “IRL” products and businesses, including a Bored Ape-themed restaurant in Los Angeles
England and Wales Sees Crypto as a New Type of Property (CoinDesk)
- Law Commission of England and Wales wants to extend property rules to cover crypto and non-fungible tokens (NFT)
- The proposed reforms could make it easier for crypto investors to claim losses in hacks or scams through legal action
- The seemingly crypto-friendly proposal is aimed, in part, at helping the U.K. government’s goal of turning the country into a global crypto hub
Metaverse market share to surpass $50 billion by 2026 (CoinTelegraph)
- A new report by technology research and advisory firm Technavio reveals an upward trend for the Metaverse within the next four years
- The report analyzed the metaverse from two viewpoints: software and hardware, and through its impact on various geographical regions
- Moreover, market growth momentum has acceleration projections of a CAGR of nearly 21%
- This year alone, growth is projected at 20.11%
Presentation linked above and here
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