Bitcoin

State is ‘underinvested’ in Bitcoin EFTs despite recent purchase, says UW-Whitewater professor

Published

8 months ago

25 May, 2024

The Wisconsin pension fund bought $164 million worth of Bitcoin shares earlier this year in two bitcoin exchange-traded funds, also known as ETFs. The investment was made after the Securities and Exchange Commission approved the creation of Bitcoin ETFs in January.

The fact that these purchases are in exchange-traded funds is important, according to Paul Nylen, a professor at the University of Wisconsin-Whitewater and director of the Blockchain and Cryptocurrency Institute at UW-Whitewater.

“This has allowed pension funds and other investment boards to allow someone else to actually custody Bitcoin and have that fund — like Blackrock or Fidelity — issue shares,” Nylen told WPR’s “Wisconsin today,” so the investment board could purchase shares of a fraction of Bitcoin, rather than actually holding its own keys to Bitcoin itself.”

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Cryptocurrency comes with well-publicized baggage. The global electricity usage associated with Bitcoin each year is on par with the country of Australia, according to the US Energy Information Administration. The Department of Homeland Security linked cryptocurrency more broadly for money laundering, cybercrime and consumer fraud.

Bitcoin stocks can also be extremely volatile, with the price of one Bitcoin falling from nearly $66,000 in 2021 to around $16,000 in 2022. Since then, Bitcoin has reached a new high of around $71,000 this year . But Nylen says volatility is good for long-term growth.

He spoke with WPR’s “Wisconsin Today” to break down what this purchase means for Wisconsin.

The following has been edited for clarity and brevity.

Kate Archer Kent: The Wisconsin Investment Board purchased shares of a Bitcoin exchange-traded fund. So how does the state’s purchase of ETF shares differ from the direct purchase of Bitcoin?

Paulo Nylen: In Bitcoin, there is this phrase you will sometimes hear: “Not your keys, not your coins.” And unfortunately, I think for much of Bitcoin’s history, there have been very bad custodians.

So if you think about (Bitcoin exchanges) FTX and Mount Gox, and all these kinds of famous news stories – and these were companies located in the Cayman Islands, or somewhere like that, that eventually lost their Bitcoin keys or did something fraudulent on your customer’s behalf. What we have now are branded institutions, right? So Fidelidade, Bitwise, BlackRock. And they are the ones who really hold the keys to Bitcoin.

Bitcoin is a bearish asset, so whoever holds the private keys has the ability to move that Bitcoin. So the state of Wisconsin is relying on a third party here, but the investment boards have to do this. They can’t bring all their gold to their offices and they can’t physically hold their Apple shares. They need a third party. So, there is a difference there.

I don’t see how a big state like Wisconsin or all of its pension funds could actually custodian their own Bitcoin. They would let BlackRock or Fidelity do it. And so I think, given that circumstance, it’s a great solution for Wisconsin.

KAK: The US House passed legislation creating a new framework for how federal agencies would regulate cryptocurrencies. We heard the CEO of the Crypto Council for Innovation call this vote a “defining moment.” Would this new regulatory approach be good for Wisconsin?

PN: The best way to think about this is to ask, “What is the current regulatory approach?” And the current approach is a mess. There have been ongoing lawsuits with the Securities and Exchange Commission for over a decade. All this really does is help clarify which administrative bodies are responsible for cryptocurrencies. And so I think any clarity on this point is probably good clarity.

KAK: Should the Wisconsin Investment Board hold these new assets? When would they sell their Bitcoin shares?

PN: In fact, I’ll take it a step further. I think Wisconsin is a little underinvested. Wisconsin put less than 1% of the fund there. I think the 1% to 3% allocation is probably the direction a lot of this advice is going. I realize that (the Wisconsin Investment Board) wants to take the plunge. But Bitcoin is a long-lived asset. So in my opinion, it’s the last thing you sell.

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Bitcoin

What to watch for in the markets

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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Cryptocurrency Charts by TradingView.

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