We have gathered the most significant events and investment deals from the past weeks in a traditional digest.
Chainalysis notes rise in the number of institutional Bitcoin investors from the United States
From the end of 2019 to May 2020, the share of American professional investors in the crypto market rose from 87% to 92%, according to a new report by Chainalysis.
The United States ranks second only to East Asia in crypto-transaction volume. Over the last year North American addresses accounted for 14.8% of all institutional activity.
Meanwhile, American investors move larger volumes of cryptocurrency than their European and Asian peers — transactions of $1 million and above. The number of such transactions over the year rose from 46% to 57%.
According to Chainalysis, 72% of professional investors from the United States prefer Bitcoin to other cryptocurrencies.
Visa says it is prepared to back the development of digital currencies
The global payments network Visa believes that digital currencies have the potential to enhance the value of digital payments. Noting Bitcoin’s role in their emergence, the company said it stands ready to support the development of this space.
“The concept of a digital currency — a digital version of cash, secured by private keys — was created more than ten years ago with the launch of Bitcoin. Today, high hopes are placed on fiat-backed digital currencies, known as ‘stablecoins’, the company’s blog says.”
According to Visa representatives, interest in stablecoins, which combine the advantages of digital currencies with the stability of existing currencies such as the US dollar, is being shown not only in fintech but also beyond it—in large financial institutions and central banks.
The company noted that it already works with licensed and regulated platforms in the digital-currency space, such as Coinbase and Fold. The number of wallet providers that are partners exceeds 25.
Crypto startup Wirex becomes a licensed Mastercard network participant
Wirex, a processing service, has become the first native crypto platform to obtain licensed participant status in the Mastercard network, the payments company said.
As a result, Wirex will be able to issue Mastercard payment cards that automatically convert users’ digital assets into fiat. The startup’s operations are regulated by the United Kingdom’s Financial Conduct Authority (FCA).
Grayscale expands the number of crypto trusts and markedly increases the capital raised
Assets in Grayscale Investments’ crypto funds have surpassed $5 billion.
In just over a week at the end of July, inflows amounted to $1 billion.
The flagship Bitcoin trust, GBTC, continues to attract the largest amount of investment.
According to a report to the U.S. Securities and Exchange Commission (SEC), 27 institutional investors hold stakes in GBTC.
According to Grayscale Investments, the company received FINRA approval for new funds based on Bitcoin Cash (BCH) and Litecoin (LTC).
The company said the trusts’ shares have become the first publicly traded securities in the United States whose value is determined by BCH and LTC.
Media: Polychain and Three Arrows invest seven-figure sum in DeFi project KeeperDAO
KeeperDAO, the DeFi-liquidity guarantor, raised more than $1 million in seed funding. The round was led by Polychain Capital and Three Arrows Capital.
The Amber Group and Talo Systems announced in December the creation of a joint crypto-trading project. KeeperDAO’s goal is to maintain liquidity for DeFi projects using funds contributed by its users.
More crypto companies announce plans to go public
The trend of industry participants moving to public markets remains unabated.
Bitmain cofounder Micree Zhang vowed to take the firm public within a year. His plans are hindered by a continuing dispute with the other cofounder, Jihan Wu. The standoff negatively affects Bitmain’s operations, and Zhang aims to resolve it in court within the next six months.
Thereafter, in his view, the company will achieve public status with a market valuation above $10 billion.
The crypto exchange operator EQUOS, the Hong Kong blockchain company Diginex, is preparing for a Nasdaq listing through a reverse merger.
To go public, Diginex intends to acquire 8i Enterprises Acquisition Corp, whose shares trade on Nasdaq. Closing is expected in September.
The SEC has already approved the deal for the Hong Kong firm.
Grayscale founder Barry Silbert expects inflows of crypto industry participants into the public markets via SPACs. He remarked this amid activity in the space of SPAC specialists.
SPAC pitches coming my way from every direction. Methinks we’re going to have some publicly traded crypto companies this year…
— Barry Silbert (@barrysilbert) July 25, 2020
Genesis Capital doubles its crypto-loan portfolio in the quarter
Genesis Global Capital, the institutional lender, reported its second-quarter results.
For April–June, crypto-lending activity reached a record $2.2 billion, bringing the outstanding balance to $1.4 billion by early July. The driver was yield farming.
Compared with the same period last year, total crypto loans in Q2 rose 324%, and year to date — 35.3%. The growth continued for the ninth straight quarter since the service’s launch in March 2018. The cumulative total stood at $8.4 billion.
Bitcoin Suisse raises more than $48 million to scale its business
The cryptocurrency company Bitcoin Suisse announced the completion of its Series A round, raising CHF 45 million (more than $48 million).
As part of the round, investors were offered 16.4% of BTCS Holding AG shares.
The round was led by Swiss banker Roger Studer. He joined the company’s board alongside former Credit Suisse Research Centre head Giles Kiting.
The company’s current valuation stands at CHF 302.5 million (over $327 million).
Media: BlockFi plans to raise $50 million at a $400 million valuation
BlockFi, one of the leaders in crypto lending, plans to raise $50 million in a Series C round, The Block reports, citing people familiar with the matter.
According to the report, the round will be led by Morgan Creek Digital, which previously participated in Series B. The valuation of BlockFi before the new round is $400 million
Electric Capital raises $110 million from institutional investors
The Palo Alto-based venture firm Electric Capital raised $110 million from large investors to launch its second fund.
The firm previously invested in notable DeFi projects such as the non-custodial exchange dYdX and the Maker protocol, as well as asset manager Bitwise. It has also invested in several popular cryptocurrencies, including Bitcoin and Ethereum.
Electric Capital said the Series A round drew institutional investors, including university endowments.
Nasdaq-listed firm invests $250 million in Bitcoin and other assets
Bitcoin and other “alternative assets” were included in MicroStrategy’s $250 million investment plan, the Nasdaq-listed company said in a recent address to shareholders.
Apart from cryptocurrency, MicroStrategy plans to invest in gold and other assets. The investments are aimed at reducing inflation risk of the U.S. dollar.
CEO Michael Saylor noted that the U.S. dollar is no longer suitable for MicroStrategy’s reserves. The reason cited is the decline of interest rates to near zero, rising money supply and indications of impending inflation.
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