Bitcoin is becoming scarce as BTC Miners sell less BTCs
It’s no longer news that crypto traders and investors are rushing into Yearn.Finance.
However, what has recently astonished most major players in the crypto industry is the fact that Yearn.finance’s native token YFI has gained more than 75% in the last 24-hours, achieving a new all-time high at over $38,500.
Some leading crypto experts believe this is just the beginning for yearn.finance, meaning it could reach billions of dollars in the mid-term, as analyst Tyler Reynolds suggests the possibility of a $15 billion market cap based on cash flow analysis. He said:
“500k $YFI = $15B market capitalization If it traded at 50x FCF, then it would need to generate $300M for holders It’s already generating $20M and that will go up as yUSD/yCRV grows. Add in other new arb opportunities & products (eg insurance) and we’re not far from $300M in FCF.”
500k $YFI = $15B mcap
If it traded at 50x FCF, then it would need to generate $300M for holders
It’s already generating $20M and that will go up as yUSD/yCRV grows
Add in other new arb opportunities & products (eg insurance) and we’re not far from $300M in FCF
— Tyler Reynolds (@tbr90) August 29, 2020
However, a top crypto researcher with the pseudo name, Haus advised investors and traders to be wary of the most expensive crypto coin, as it has fundamental challenges, that include poor market liquidity. He continued by saying;
“$YFI may be ripping right now, but it’s illiquid as hell as very little of the supply is available on exchanges. Try selling even 100k and you’ll tank the price by 3%.
“For comparison, the slippage on selling $100k worth $LEND (another DeFi coin with a similar market capitalization) is 0.2%”
$YFI may be ripping right now, but it’s illiquid as hell as very little of the supply is available on exchanges. Try selling even 100k and you’ll tank the price by 3%.
For comparison, the slippage on selling $100k worth $LEND (another DeFi coin with similar mcap) is 0.2%
— Hasu (@hasufl) August 29, 2020
“500k $YFI = $15B mcap If it traded at 50x FCF, then it would need to generate $300M for holders It’s already generating $20M and that will go up as yUSD/yCRV grows Add in other new arb opportunities & products (eg insurance) and we’re not far from $300M in FCF.”
What you must know: There are multiple protocols providing yield (returns) on the capital that you lend. These yields vary from one protocol to the next. YFI automates & optimizes lending such that you can earn maximum value on your capital without researching each protocol.
The token is used by Yearn.finance as a tool in producing returns from stablecoin deposits such as Tether.
These returns have become so attractive to investors that hundreds of millions have been transferred to the Yearn.finance protocol.
This increase in deposits led to an increase in the value of YFI, which is representative of the value of the Yearn.finance ecosystem.
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Yearn Finance’s advantage over Bitcoin: With a mere 30k token supply making it more scarce than even Bitcoin, $YFI is the hardest money the world has ever known.
Author: Written by News
World’s First Centrally Cleared Short Bitcoin ETP Admitted To The Regulated Market of Deutsche Boerse XETRA
21Shares granted CCP clearance with additional listing of Short Bitcoin ETP (SBTC)
31 August 2020 – Frankfurt / Zurich – Swiss Fintech firm 21Shares, the world’s leading issuer of crypto Exchange Traded Products (ETPs), is admitting to the regulated market of Deutsche Boerse Xetra venue the first centrally cleared Short Bitcoin ETP (SBTC – WKN A2781V – Ticker 21XS) on September 1st. This follows the success of its eleven other institutional grade crypto exchange-traded products and further cements its status as the specialist firm having the most expansive regulated product suite of crypto assets in the financial industry.
SBTC is an innovative financial instrument that allows investors to gain exposure to the negative price movement of Bitcoin. SBTC is the world’s first centrally cleared short Bitcoin product, further reducing counterparty risk for institutional and retail investors when trading with their conventional brokers. Two months ago, 21Shares dual listed the world’s first Bitcoin ETP (ABTC) on Deutsche Boerse Xetra allowing further international investors to gain exposure to this nascent but novel asset class via a familiar ETP structure.
This structure gives investors several benefits when it comes to inverse exposure. Traded on regulated markets, investors can buy and sell the ETP intraday, in the same way they would when trading conventional shares with the identical regulatory protections in place. CCP clearing is a feature that investors expect when trading on a regulated exchange and 21Shares brings this standard which greatly reduces the counterparty risk when trading the short bitcoin ETP.
“We have lobbied carefully but vigorously with the exchange to be in a position to launch the world’s first centrally cleared short Bitcoin ETP on a regulated trading venue. The one missing trading product was to deliver a fully transparent financial instrument to capitalize on negative price movements within a complete regulated framework,” said Laurent Kssis, Managing Director at 21Shares in charge of the application with Deutsche Boerse.
All of the 21Shares crypto ETPs can easily be purchased via any broker or bank with access to Boerse Frankfurt. Historically speaking, direct access to investing in crypto assets was and can often still be exposed to unregulated crypto exchanges, which are frequently in the news due to various lack of internal controls and financial structures lacking integrity which resulted in higher spreads, increased counterparty risk and large price premiums. Thus, the listing of the first centrally cleared Short Bitcoin ETP is a significant step towards mainstream adoption of crypto assets in conventional financial portfolios when it comes to hedging or simply use as protection.
“As noted earlier this year, 21Shares remains committed to introducing innovative products that offer exposure to crypto currencies via conventional and traditional ETPs, while remaining a leading provider in the crypto asset issuance” said Hany Rashwan, CEO at 21Shares. “Investors are now in a position to implement any bitcoin strategy in a safe, regulated, and conventional manner using a product that allows them to participate in the downwards movement of Bitcoin.”
21Shares makes investing in crypto assets as easy as buying shares using your conventional broker or bank. Investors can invest in cryptocurrencies using a conventional ETP structure (or tracker) easily, with total confidence and security, cost effectively thanks to the 21Shares suite of ETPs launched by 21Shares and now composed of 11 Crypto ETPs : the 21Shares Crypto Basket Index ETP (HODL), 21Shares Bitcoin (ABTC/21XB), 21Shares Ethereum (AETH), 21Shares XRP (AXRP), 21Shares Bitcoin Cash ETP (ABCH), 21Shares Binance ETP (ABNB), 21Shares Tezos ETP (AXTZ), 21shares Bitcoin Suisse ETP (ABBA), 21Shares Bitwise 10 ETP (KEYS), Sygnum Platform Winners Index ETP (MOON) and 21Shares Short Bitcoin ETP (SBTC/21XS). The entire suite is listed on a regulated framework on the official market of Deutsche Boerse, SIX Swiss Exchange, BX Swiss and some on Boerse Stuttgart in CHF, USD, GBP and EUR respectively. Founded in 2018, 21Shares is led by a team of talented serial entrepreneurs and experienced banking professionals from the technology and financial world. Incorporated in Zug, with offices in Zurich and New York, the company has launched several world firsts, including the first listed crypto index (HODL) in November 2018. 21Shares has 11 crypto ETPs listed today and has over $100 million in AuM in total listed.
Laurent Kssis +41 44 260 86 60
This document and the information contained herein are not for distribution in or into (directly or indirectly) the United States, Canada, Australia or Japan or any other jurisdiction in which the distribution or release would be unlawful. This document does not constitute an offer of securities for sale in or into the United States, Canada, Australia or Japan.This document does not constitute an offer to sell, or a solicitation of an offer to purchase, any securities in the United States. The securities of 21Shares AG to which these materials relate have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. There will not be a public offering of securities in the United States.This document is only being distributed to and is only directed at: (i) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); or (ii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”); or (iv) persons who fall within Article 43(2) of the Order, including existing members and creditors of the Company or (v) any other persons to whom this document can be lawfully distributed in circumstances where section 21(1) of the FSMA does not apply. The Securities are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. In any EEA Member State (other than Austria, Belgium, Denmark, Finland, France, Germany, Great Britain, Ireland, Italy, Luxembourg, Malta, the Netherlands, Norway, Spain and Sweden) that has implemented the Prospectus Regulation (EU) 2017/1129, together with any applicable implementing measures in any Member State, the “Prospectus Regulation”) this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Regulation. Exclusively for potential investors in Austria, Belgium, Denmark, Finland, France, Germany, Great Britain, Ireland, Italy, Luxembourg, Malta, the Netherlands, Norway, Spain and Sweden the 2019 Base Prospectus (EU) is made available on the Issuer’s website under www.21Shares.com. The approval of the 2019 Base Prospectus (EU) should not be understood as an endorsement by the SFSA of the securities offered or admitted to trading on a regulated market. Eligible potential investors should read the 2019 Base Prospectus (EU) and the relevant Final Terms before making an investment decision in order to understand the potential risks associated with the decision to invest in the securities. You are about to purchase a product that is not simple and may be difficult to understand. This document is not an offer to sell or a solicitation of an offer to buy or subscribe for securities of 21Shares AG. Neither this document nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction.This document constitutes advertisement within the meaning of the Swiss Financial Services Act (the “FinSA”) and not a prospectus. In accordance with article 109 of the Swiss Financial Services Ordinance, the Base Prospectus dated 13 November 2019, as supplemented from time to time (the “Base Prospectus”) and the final terms for SBTC dated 22 January 2020 (the “Final Terms”, and together with the Base Prospectus, the “Prospectus”) have been prepared in compliance with articles 652a and 1156 of the Swiss Code of Obligations, as such articles were in effect immediately prior to the entry into effect of the FinSA, and the Listing Rules of the SIX Swiss Exchange in their version in force as of January 1, 2020. Consequently, the Prospectus has not been and will not be reviewed or approved by a Swiss review body pursuant to article 51 of the FinSA, and does not comply with the disclosure requirements applicable to a prospectus approved by such a review body under the FinSA. Copies of the Prospectus are available free of charge from the website of the Issuer. Subject to applicable securities laws, the Base Prospectus and the final terms of any product mentioned herein can be obtained from 21Shares AG on the website. Copies of this document may not be sent to jurisdictions, or distributed in or sent from jurisdictions, in which this is barred or prohibited by law. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, in any jurisdiction in which such offer or solicitation would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any jurisdiction.
Bitcoin News Roundup for Aug. 28, 2020
Grayscale, The World’s Largest Bitcoin And Crypto Asset Manager, Has A Massive ‘Premium’ Problem
Grayscale, the world’s largest bitcoin and cryptocurrency asset manager, has taken the investment world by storm and helped propel crypto onto Wall Street.
New York-based Grayscale, owned by Barry Silbert’s expanding Digital Currency Group, currently boasts over $5 billion in assets under management—up around 40% since its last quarterly report in June and largely driven by its flagship bitcoin trust.
Grayscale launched two new cryptocurrency funds last week, a litecoin trust and a bitcoin cash trust, with demand driving one of the funds to a staggering 1,000% premium—sparking suggestions some investors might be “unaware” they’re paying significantly above the token’s market rates and causing doubt that the cryptocurrency market has much matured since bitcoin’s 2017 boom and bust.
Grayscale’s flagship Bitcoin Trust Fund has proven very popular with investors since it was launched … [+] five years ago.
Both the Grayscale Litecoin Trust and the Grayscale Bitcoin Cash Trust began trading publicly almost two weeks ago and have seen consistent triple-digit premiums since. The litecoin fund was briefly trading at a premium of over 1,200% on the underlying litecoin price, data produced by analysts at Arcane Research showed.
The funds have collected almost $50 million from accredited investors over the last two years and can now be traded like stocks, allowing over-the-counter investors to gain exposure to the cryptocurrencies without having to deal with clunky bitcoin and crypto exchanges that can appear risky.
Elsewhere, the Grayscale Bitcoin Trust, which debuted as the Bitcoin Investment Trust in 2013, has this year consistently traded at a premium of around 20% on bitcoin, while the premium for the ethereum fund, created in December 2017 during the height of the crypto bubble, recently fell under 100% for the first time this year—down from over 800% in June.
“These trusts are based solely on single assets, and should thus not outperform its underlying asset over time,” Arcane Research analyst Vetle Lunde wrote. “The excess return should be arbitraged away.”
The funds’ premiums emerge as public investors buy into existing shares of the fund, with the original accredited investors being the sellers.
“For accredited investors, the custody provided by Grayscale is most certainly of value,” Lunde said via email.
“Setting up self custody is a complicated process, and over time Grayscale has gained confidence in their services as a custody provider.”
However, the huge and wildly swinging premiums have caused some concern for bitcoin and cryptocurrency market watchers who fear investors might be unaware of the premium they’re paying.
MORE FROM FORBESBitcoin In The ‘Early Stages’ Of A Bull Market, Crypto Wallet Data RevealsBy Billy Bambrough
The Grayscale Litecoin Trust has been trading at a triple-digit premium since it launched, climbing … [+] to a 1,200% premium last week, with the company’s bitcoin and other funds also trading at big premiums.
“Bitcoin exposure as an inflation hedge amidst the current financial instability seems to be a trending topic among some of the most renowned macro investors,” Arcane Research analyst Vetle Lunde said via email.
A number of high-profile investors, led by famed hedge fund manager Paul Tudor Jones in May, have named bitcoin as potential hedge against the inflation they seem coming as a result of the unprecedented central bank stimulus measures put in place to blunt the economic damage wrought by the coronavirus pandemic.
“This could make new investors more open to allocate some of their portfolio into bitcoin, and thus lead to an increased demand for bitcoin exposure,” Lunde added.
Grayscale’s managing director Michael Sonnenshein accepts that the funds’ shares are high but argues the asset manager “has no control over that market.”
“We’re creating the ability for these markets to happen,” Sonnenshein said, speaking over the phone. “But it’s not something we’re directly making or facilitating.”
The public demand for exposure to cryptocurrencies via Grayscale’s funds has led to fresh calls for a fully-fledged bitcoin and cryptocurrency exchange-traded fund (ETF)—a financial product that allows people to buy shares in indexes that track baskets of assets.
However, the U.S. Security and Exchange Commission (SEC) has repeatedly rejected proposals for a bitcoin ETF, arguing the bitcoin and crypto market is vulnerable to manipulation.
“The addition of more financial products widens asset exposure,” Sonnenshein said, adding “investors are eager.”
While Arcane Research’s Lunde argues that Grayscale’s “premiums show that the public demand for crypto exposure is high, and that the market is ripe for an ETF,” the SEC still has concerns.
“We were trying to get the bitcoin fund registered as an ETF but the regulators still had a criteria,” Sonnenshein said. “They wanted to see change in the underlying bitcoin market before they were comfortable.”
The bitcoin price remains highly volatile, bouncing from over $10,000 per bitcoin earlier this year to under $4,000 during the March coronavirus crash—only to sharply rebound along with stimulus-inflated stock market. But Sonnenshein remains upbeat.
“It’s a question of when these market dynamics improve, not if,” Sonnenshein said.
Author: By Billy Bambrough
Bitcoin Will Break Out This Yr, Says Devere CEO
The CEO of monetary advisory agency Devere Group believes that 2020 will probably be a breakout 12 months for bitcoin, fueled by the U.S. presidential election and the weak greenback. Amid political uncertainty and the Fed’s new inflation coverage, buyers will pile into safe-haven property not tied to any particular nation, reminiscent of bitcoin.
Devere Group CEO Nigel Inexperienced predicted final week that the U.S. presidential election and a weak greenback will drive the worth of bitcoin for the remainder of 2020. Following the Federal Reserve’s coverage shift on inflation, he additionally warned about investing within the inventory market. Devere Group, established by Inexperienced in 2002, describes itself as one of many world’s main impartial monetary advisory organizations with greater than $10 billion below recommendation from 80,000 purchasers in 100 nations.
Noting that “Bitcoin is already one of many best-performing property of the 12 months, up round 70% year-to-date,” Inexperienced asserted, “We will anticipate the world’s largest cryptocurrency to be additional fuelled for the remainder of 2020 by the U.S. presidential election and the weak spot of the U.S. greenback, which is able to function high-octane value drivers.” The worth of bitcoin stands at $11,613 on the time of writing.
“A U.S. presidential election all the time stirs uncertainty — however 2020 is seen by many as significantly essential as not solely will whoever wins be the CEO of the world’s largest economic system, they are going to be in that position because the world economically readjusts following the worldwide fallout of coronavirus,” Inexperienced opined. “As uncertainty heightens, buyers will pile into safe-haven property, specifically these not tied to any particular nation, reminiscent of bitcoin and gold.”
Not too long ago, information.Bitcoin.com additionally reported that analyst and advisor Dan Popescu predicted how the result of the November presidential election might result in a greenback collapse and a lift within the gold market. Whereas the 2020 presidential election polls presently present Joe Biden within the lead, the analyst defined that the U.S. greenback stands to lose no matter whoever wins the election and turns into the following president of the USA.
Based on Inexperienced, “Bitcoin is presently realising its popularity as a type of digital gold. To date, the valuable metallic has been perceived as the last word safe-haven asset, however bitcoin — which shares its key traits of being a retailer of worth and shortage — might probably sooner or later knock gold from its long-held high spot because the world turns into pushed by the tech revolution … Decentralized, non-sovereign, safe digital currencies, together with bitcoin, will grow to be extra enticing to buyers as they may supply a hedge towards turbulence in conventional markets.”
Analysts have been questioning gold’s safe-haven standing and Goldman Sachs lately warned that the U.S. greenback dangers dropping its standing because the world’s reserve foreign money.
The Devere Group CEO added, “Printing of historic sums of helicopter cash that’s pushed into the monetary system has devalued the greenback and prompted inflation fears,” emphasizing:
You may’t simply print bitcoin.
On Thursday, the Federal Reserve introduced a significant shift in coverage to “push up inflation.” Many buyers will pile into equities, Inexperienced famous, warning of the “lack of stability” within the inventory markets. “It will add gas to world equities that are already on hearth,” Inexperienced described, including that “On this local weather, holding bonds and sitting on money will merely not present the returns buyers search.”
The market has been anticipating this inflation coverage announcement by the Fed, prompting some corporations to maneuver money reserves into bitcoin to hedge towards inflation. One among them is the Nasdaq-listed Microstrategy, which moved $250 million of its money reserves into bitcoin. The Fed’s new coverage can also be anticipated to spice up the worth of bitcoin, which some predict could possibly be pushed previous $500Ok.
As for the U.S. greenback, Inexperienced continued: “The buck could possibly be in for a short-term enhance, however in the long run there are expectations it’s on a downward trajectory and that it might in the end lose its world reserves standing – and this setting will present a robust enhance for the worth of bitcoin.” The CEO concluded:
This explosive mixture along with a rising variety of millennials and Gen Z buyers transferring into digital property might present the proper panorama for a multi-year bull market … Historical past will present that 2020 was a breakout 12 months for bitcoin.
Do you agree with Inexperienced? Tell us within the feedback part under.
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