What happened in the crypto world in the last week? Let’s see some interesting news together!
Robert F. Kennedy Jr. Pledges Bitcoin-Backed US Dollar as President
Robert F. Kennedy Jr., the Democratic presidential candidate, has been making waves with his bold statements on COVID-19 vaccines, but now he’s turning heads in the crypto world. In a recent video with Heal the Divide and Bitcoin Magazine, he unveiled his pro-crypto stance, particularly for Bitcoin (BTC). RFK Jr. revealed his plan to back 1% of Treasury Bills (T-bills) with hard currency, including gold, silver, platinum, or Bitcoin.
He emphasized that this allocation would gradually increase over time. Beyond that, RFK Jr. expressed his vision of positioning the US as a global crypto hub by promoting the use of Bitcoin. He believes that adopting BTC within the country would attract more investments and innovative engineers, ushering in a new era of progress and prosperity.
In his words, “Backing dollars and U.S. debt obligations with hard assets could help restore strength back to the dollar, rein in inflation and usher in a new era of American financial stability, peace, and prosperity.”
Jr. is keen on blending modern technology like cryptocurrency with governance for a brighter future and claims to end the capital gains taxes on Bitcoin. He promoted BTC’s self-custody as it ensures citizens’ privacy rights, as he’s against the crypto tax plans of the Biden Administration.
US Dominates Crypto Startup Funding in Q2 Despite Regulatory Scrutiny: Report
In the second quarter, despite regulatory scrutiny in the US, crypto startups in the country dominated funding, attracting nearly half of all capital investments, as per a recent report by Galaxy Digital, a crypto investment firm.
Venture capital (VC) firms showed significant interest in US-based crypto businesses. The United Kingdom secured 7.7% of capital investment, while Singapore and South Korea received 5.7% and 5.4%, respectively.
However, the report highlighted a decline in the total capital invested in crypto and blockchain startups on a quarterly basis. Only $720 million was raised by 10 new crypto VC funds in Q2 2023, the lowest amount since the beginning of the COVID-19 pandemic in Q3 2020. While the “broad Web3 category” companies had more deals, companies in the “trading category” secured more capital.
This trend emerged amidst the US Securities and Exchange Commission (SEC) taking action against several US crypto firms recently.
ETPs Witness Record-Breaking Monthly Inflows: K33 Research
In the wake of BlackRock’s filing for a spot-based ETF on June 15, crypto investors have been pouring money into Bitcoin exchange-traded products (ETPs) at an unprecedented pace. Recent data from K33 Research reveals a remarkable surge in BTC-equivalent exposure of ETPs listed globally, rising by 25,202 BTC (equivalent to $757 million) to reach 196,824 BTC within just four weeks until July 16.
This surge in inflows marks the second-highest monthly net increase in history, trailing only the inflows witnessed after the launch of ProShares’ futures-based ETF and other futures-based ETFs in October 2021, as Vetle Lunde from K33 Research points out.
ETPs encompass a broad category of listed products tracking underlying financial assets, with Exchange Traded Funds (ETFs) being a subset that typically holds various financial products within a specific theme.
Despite the challenges posed by the US Securities and Exchange Commission (SEC) in approving crypto-based ETFs, Europe stands in stark contrast, boasting a diverse array of ETPs from various issuers.
In addition to this impressive trend, Lunde highlights that BITO has reached an all-time high of Bitcoin equivalent exposure, amounting to 4,425 BTC. BITO offers investors Bitcoin-linked returns through a regulated product and currently holds over $1 billion worth of CME Bitcoin Futures.
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