2023-11-12 07:01

Copyrighted Image by: Reuters. The Euro has ascended to a six-month peak against the Pound Sterling, capping off a week with consistent gains as the EUR/GBP pair approached 0.8750. This rise comes despite mixed economic data from both the European Union and the United Kingdom, where the UK's figures have notably underperformed even when exceeding forecasts. At the close of the week, the Euro's strength was evident as it nearly hit the 0.8750 mark against the Pound. The upward trajectory has been consistent since August, when the EUR/GBP saw low closes around 0.8520. The momentum is illustrated by the 50-day Simple Moving Average (SMA), which has accelerated from 0.8660 towards a bullish cross of the 200-day SMA, currently near 0.8690. Contrary to market expectations for a decline, the UK's Gross Domestic Product (GDP) remained steady at 1.5% year-on-year into September. Additionally, UK Manufacturing Production stayed flat at 3%, contrary to predictions that it would edge up to 3.1%. This stagnation comes after an earlier dramatic adjustment from 28% to a stark 3%. Looking ahead, a suite of key economic indicators is set to be released in the coming week. On Tuesday, investors will eye the UK labor and wage data alongside the EU's third-quarter GDP figures. Wednesday will see the UK's Consumer Price Index (CPI) inflation data and the EU's Industrial Production numbers come to light. The week will conclude with Friday's announcements of UK Retail Sales and EU's Harmonized Index of Consumer Prices (HICP). Investors and analysts alike will be closely monitoring these releases for indications of economic health and potential impacts on currency valuations in a market that continues to weigh mixed signals from two of Europe's leading economies. https://www.investing.com/news/forex-news/euro-reaches-sixmonth-high-against-pound-amid-uk-economic-woes-93CH-3231480

2023-11-12 06:54

In a significant move embracing digital assets within the traditional financial sector, UBS Group has rolled out trading of crypto-related exchange-traded funds (ETFs) for high-net-worth individuals in Hong Kong. The introduction of these services follows a broader trend in the region's growing acceptance and integration of cryptocurrency into mainstream finance. The ETFs available through UBS include the Samsung (KS:005930) Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures ETFs. These funds, which hold a combined value of approximately $72 million, offer exposure to Bitcoin and Ethereum futures rather than the cryptocurrencies themselves. This strategic approach parallels that of HSBC, which had previously initiated offering the same ETFs to its clients in Hong Kong. Hong Kong's financial regulators have shown a progressive stance towards cryptocurrencies. The Securities and Futures Commission (SFC) CEO Julia Leung has highlighted an interest in innovative technology to enhance efficiency and customer experience in the financial sector. In line with this, the SFC is considering allowing retail investors to access spot ETFs that directly invest in cryptocurrencies, albeit with certain safeguards such as a virtual asset knowledge test. Institutional investors may be exempt from this requirement. This regulatory openness was further evidenced earlier in the year when Hong Kong implemented a licensing regime for virtual asset trading platforms. This initiative paved the way for platforms like HashKey and OSL to offer retail trading services. SEBA Bank AG's Hong Kong affiliate also received an SFC license, allowing it to trade all securities. UBS's recent move into crypto ETFs signifies a growing recognition of cryptocurrency's potential among high-net-worth clients who are seeking new avenues for investment. As major financial institutions like UBS and HSBC expand their digital asset offerings, it reflects an increasing melding of traditional finance with the emerging world of cryptocurrencies. https://www.investing.com/news/cryptocurrency-news/ubs-group-launches-crypto-etf-trading-for-wealthy-hong-kong-clients-93CH-3231479

2023-11-12 06:39

Following the filing of an Ethereum Exchange Traded Fund (ETF) by investment giant BlackRock (NYSE:BLK), the cryptocurrency market witnessed a significant uptick in Ethereum's native token, ETH, which soared past the $2,000 mark. This rally, occurring on Thursday, sparked discussions about the potential onset of an altcoin season, as traders and investors rallied around the second-largest cryptocurrency by market capitalization. The surge in ETH price coincided with a marked increase in Ethereum's network activity. On Friday, Eric Smith from 401 Financials highlighted that Ethereum's daily revenue reached a notable high of $10 million for the first time since July. This milestone was indicative of heightened network usage and was accompanied by a rise in the average gas price to levels not seen in over a month. However, the week ended with a twist as Steven Nerayoff, an early Ethereum advisor, made serious allegations against Ethereum co-founders Vitalik Buterin and Joseph Lubin. On Saturday, Nerayoff accused them of fraudulent activities during Ethereum's formative years and criticized the U.S. Securities and Exchange Commission (SEC) for alleged corruption in its dealings with Ethereum. Nerayoff likened these purported early misdeeds to the FTX scandal and announced his intention to release a recorded conversation with Buterin as a free NFT and transcript. This recording is said to contain evidence that challenges the narrative of Ethereum's decentralization at its inception—a key factor in the SEC's decision not to classify ETH as a security. The allegations have stirred investor concerns and prompted questions regarding the SEC’s treatment of different cryptocurrencies. The XRP community, in particular, has taken notice of these inconsistencies. While specific details or laws broken have not been shared by Nerayoff, he suggests that his conversation with Buterin includes proof that undermines confidence in Ethereum's foundational principles. Despite the gravity of these claims and their potential implications for legal action against Ethereum's founders, Nerayoff deferred to the SEC and Department of Justice (DOJ) regarding any criminal charges. As the crypto community anticipates the release of Nerayoff's recording, it remains to be seen how these allegations will affect Ethereum's market performance and investor sentiment moving forward. https://www.investing.com/news/cryptocurrency-news/ethereum-etf-filing-boosts-eth-price-amid-network-activity-surge-93CH-3231476

2023-11-11 17:27

Copyrighted Image by: Reuters Bitcoin, the pioneering cryptocurrency, is navigating through a complex landscape of regulatory hurdles, security issues, and environmental concerns as it evolves. The digital currency, which began its journey with the publication of Satoshi Nakamoto's whitepaper in 2008, has come a long way, offering cryptographic security and global accessibility with a finite supply of 21 million coins. The decentralized nature of Bitcoin has been a double-edged sword. On one hand, it provides financial inclusion for unbanked populations and resists government manipulation. On the other hand, it presents vulnerabilities that necessitate adaptation of tax codes for digital assets and improvements in wallet security. Despite its potential as an alternative investment and a financial service provider for those lacking traditional banking access, Bitcoin's price volatility remains a topic of debate regarding its viability as a mainstream currency. Innovations such as DeFi platforms, NFTs on the Ethereum blockchain, and scalability solutions like the Lightning Network continue to contribute to its evolution. Online trading platforms have become important sources of market insights for Bitcoin traders. They highlight the need for ongoing development in areas such as green mining practices to address environmental concerns over Bitcoin's carbon footprint. These practices aim to reduce the energy-intensive process of mining Bitcoin, which has been criticized for contributing to global warming. As Bitcoin moves forward, the crypto community is focused on overcoming these challenges. Regulatory clarity and enhanced security measures are seen as pivotal elements for Bitcoin's continued growth and acceptance in the financial world. The conversation around Bitcoin's future is evolving just as dynamically as the cryptocurrency itself, reflecting its potential to reshape how we think about money and finance. https://www.investing.com/news/cryptocurrency-news/bitcoins-evolution-continues-amid-regulatory-and-environmental-challenges-93CH-3231442

2023-11-11 16:40

Copyrighted Image by: Reuters In a move that could significantly impact the world of cryptocurrency, BlackRock (NYSE:BLK) has filed for a spot Ether (ETH) ETF, named "iShares Ethereum Trust," which resulted in Ether's price crossing the $2,000 mark. This development, confirmed on November 9, has not only injected optimism into the crypto markets but also reignited discussions around the U.S. Securities and Exchange Commission's (SEC) regulatory approach to cryptocurrency-based exchange-traded funds (ETFs). The SEC has historically approved numerous crypto futures ETFs while consistently denying applications for spot-crypto ETFs. The regulator's rationale hinges on the perceived superior regulation and consumer protections under the 1940 Act compared to those provided by the 1933 Act, which governs spot-crypto ETFs. BlackRock's recent application challenges this position by arguing that these protections apply to ETFs and their sponsors rather than to the underlying assets such as spot ETH or ETH futures derived from them. Legal experts and analysts are closely watching BlackRock's push against the SEC's stance. Jake Chervinsky referenced Grayscale's DC Circuit victory as a precedent for ETH-based ETP proposals, emphasizing the importance of the spot ETH market. Scott Johnsson pointed out the need to understand the differences between the '40 Act and '33 Act in this context, as well as the significant markets test analysis included in BlackRock's 19b-4 filing. The anticipation of regulatory approval for a spot Bitcoin ETF is also high, with market sentiment buoyed by a 40% increase in Bitcoin value today. Industry leaders like ETC Group CEO Tim Bevan have marked January as a key month for potential SEC decisions due to ongoing investigations. Should BlackRock succeed in its endeavor, it would represent a landmark shift in how spot-crypto ETFs are perceived and regulated. The registration of iShares Ethereum Trust in Delaware and speculative comments about an imminent Bitcoin ETF suggest that institutional interest in cryptocurrencies is growing. This could pave the way for broader adoption within traditional finance, offering traders potential real yields on staked spot ETH ETFs as highlighted by independent Ethereum educator Sassal. The diverse reactions within the crypto community reflect the complexity and evolving nature of cryptocurrency regulation. While skeptics like Udi Wertheimer remain cautious, others like Raoul Pal view these developments as milestones for asset managers. As investors and regulators alike navigate this new terrain, all eyes will be on the SEC's response to BlackRock's challenge and its implications for future cryptocurrency investment products. https://www.investing.com/news/cryptocurrency-news/blackrocks-ethereum-etf-filing-boosts-ether-prices-challenges-sec-93CH-3231441

2023-11-11 16:23

Arthur Hayes, the co-founder of BitMEX, has expressed a highly optimistic outlook for Bitcoin and Ethereum, predicting that Bitcoin will eventually reach $1 million and Ethereum will surge to $100,000. His bullish stance comes at a time when both cryptocurrencies are experiencing a bear market, with Ethereum trading at $2,097 and Bitcoin at $37,083 as of today. Hayes attributes his predictions to the ongoing debasement of global currencies. He believes that this economic backdrop will elevate Bitcoin and Ethereum to the status of crypto's reserve assets, setting them apart from other cryptocurrencies which he views as less significant. On Friday, Hayes reiterated his confidence in the two leading cryptocurrencies, foreseeing a 4,669% increase in Ethereum's value. He also maintained his belief in Bitcoin's potential to hit the $1 million mark. This came after a week where Bitcoin saw an increase of seven percent in its value to $37,112.53, and Ethereum rose twelve percent to $2,058.51. Hayes also sees potential in layer-one blockchains like Solana despite their struggles during the current market downturn. He suggests they could offer significant returns but questions their ability to outdo Ethereum in areas like active developers, DApp activity, or Total Value Locked (TVL). He described these alternatives as overhyped and unlikely to surpass Ethereum's dominance. In addition to his forecasts for Bitcoin and Ethereum, Hayes predicts a value surge in decentralized applications (DApps) and their associated tokens. While acknowledging the increased risks involved, he hints at the substantial returns they could yield for investors willing to navigate the volatile crypto landscape. https://www.investing.com/news/cryptocurrency-news/arthur-hayes-predicts-bitcoin-to-hit-1-million-ethereum-100000-93CH-3231435