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1. Here we go – ETFs for everyone

The Facts:

  • ProShares launched the first U.S. Bitcoin ETF (BITO:US) on October 19th.
  • The fund tracks BTC futures rather than the asset itself.
  • With more than $1bn in volume on its opening day, and after reaching $1bn AuM in a record breaking two days, BITO represents one of the most significant launches of any ETF.

Why it’s important:

  • Many more ETFs are following with Valkyrie’s ETF se to launch on Friday, VanEck getting approval to launch next week and Grayscale applying to convert their GBTC into an ETF.
  • An increasing ETF offering will enable many more institutions to get indirect exposure to Bitcoin and crypto assets.

 

2. BTC and ETH record new all-time highs

The Facts:

  • On October 20th, BTC recorded a new all-time high at $67’276.79.
  • ETH followed on October 21st with its new all-time high of $4’361.18
  • Fun Fact: BTC briefly flipped the Swiss Franc.

Why it’s important:

  • Aside from the investor narrative for BTC, long-term holders may view BTC also as an independent metric to measure inflation and thus the stability of fiat currencies.
  • New ATHs for ETH can be a double-edged sword. While investors may profit from new ATHs, developers and actual users of the platform’s smart contracts suffer from higher transaction fees, a challenge Ethereum is already struggling with.
CHF vs BTC
Source: SNB, Bitcoin Suisse Research

3. The 17th BNB burn was completed

The Facts:

  • Binance buys back BNB on a quarterly basis using its profits and then burns them.
  • The exchange has pledged to burn 50% of its BNB token supply, which was fixed at 200’000’000 coins.
  • On Monday, the 17th quarterly burn was completed with BNB 1.3m being burned at a value of $640m, leaving a total supply of BNB 166’801’148 (83%).

Why it’s important:

  • After complaints by clients who lost the utility token in the past, Binance decided to initiate the BNB Pioneer Burn Program in September 2020.
  • The aim is to encourage early adopters to experiment and allow for mistakes.
  • This is an opportunity for countries to hold part of their reserve in bitcoin as a hedge against inflation and against central banks.
    Newt Gingrich

 

4. Mt. Gox rehabilitation plans approved

The Facts:

  • The infamous hack of the Japanese exchange back in 2014 resulted in a loss of approximately BTC 850’000.
  • On October 21st, creditors approved a compensation plan as communicated by the trustee which is reportedly holding BTC 150’000.
  • Affected customers will have to wait another month until the confirmation order is expected to become final and binding.

Why it’s important:

  • More than seven years after losing their funds, affected customers can hope for compensation. The price of BTC never exceeded $1’000 in 2014.
  • The terms for the compensation plan are yet to be disclosed, with the important question being if it will be denominated in FIAT or BTC.
  • Number of the week
    8
    Ranking of BTC among Top Assets by Market Cap

5. The ECB loses its inflation watchdog

The Facts:

  • The German Bundesbank announced on Wednesday the resignation of its president Jens Weidmann, due to “personal reasons”.
  • After a ten-year tenure and six years before the end of his term, Weidmann wants to open a new chapter for himself and the Bundesbank.
  • Weidmann is a prominent advocate of tight monetary policy on the ECB Governing Council.

Why it’s important:

  • The question is whether the German Government will appoint a similar hawkish person as successor or not. The worry is that a different candidate may be more supportive of a more lose monetary policy.
  • This decision will indirectly influence the monetary policy of the ECB and thus inflation levels over the coming years.

 

In other news

  • Coinbase lands exclusive NBA sponsoring deal. (via CNBC)
  • Shopify allows merchants to mint and sell NFTs. (via Cryptonomist)
  • The first Decentralized Metaverse Festival takes place this week. (via Metaverse Festival)

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