Access of crypto assets to traditional finance

Since Satoshi Nakamoto created Bitcoin over a decade ago, the market has been dominated by traders from East Asian countries such as China, Japan, and South Korea. However, as of 2020, North American strength has increased. By 2020, the market volume of the four largest platforms in North America has doubled, Bitcoin continues to move in a direction leading to the grayscale bitcoin trust currency GBTC, Microstratege starting the bull market in this circle. I bought bitcoin with a high profile. The first Bitcoin ETFs will go public in Canada in 2021, and the US SEC has approved two Bitcoin Futures ETFs, marking the key for crypto assets to enter key currencies.

2021 will see significant advances in financial products and asset management strategies, and the announcement of home care services will become the basis for crypto products. Crypto assets range from low cost users to high value users.

As fears of rising inflation and continued demand continue, cryptocurrencies have become an integral part of the global investment landscape, albeit sometimes surprisingly. According to data from Bloomberg Intelligence, there are now 80 devices to track cryptocurrency investments globally, more than double the 35 at the end of 2020. Now at $63 billion, are pouring into cryptocurrency .

The market process for crypto financial products has become increasingly mainstream.

Cryptocurrencies group cryptocurrencies or the basket of cryptocurrencies in futures trading, including low capital ETFs and cryptocurrencies or trustworthy investors. Crypto money is an important channel through which businesses can gain exposure to crypto assets.

According to data from CoinShares, the cryptocurrency market is expected to make a net profit of $9.3 billion in mid-2021, compared to $6.8 billion in 2020. A total investment of 37 commodities is expected. Established in 2021. Grayscale's Bitcoin Investment Trust (GBC) remains the largest Bitcoin investment, holding 646,000 BTC (about 3.1% of total Bitcoin assets) as of November 2021.

Bitcoin ETF 8-Year U.S. IPO

More than eight years have passed since Winklevoss filed his first Bitcoin ETF application with the SEC in 2013, despite the applicant being an ETF mogul Proshares, chief cryptocurrency manager Greyscale, and that the ETF case was filed, including US Treasuries. The assets represent only 25% of the total filings, all of which have been rejected by the SEC or approved to withdraw the application without exception. By the end of October 2021, the behavior of the SEC had changed. On October 19, 2021, ProShares listed the Bitcoin Strategy ETF (Proshares Bitcoin Strategy ETF, trading name: BITO) on the New York Stock Exchange, the first Bitcoin-linked ETF in the United States. Although this is not the world's first Bitcoin-related ETF, it does mean that cryptocurrency-related security has arrived in US financial markets after 8 years of speculation, and economic trading shows that it is important in the cryptocurrency industry.

Since December 2, 2021, Fidelity Investments, the world's fourth-largest asset management firm and valued at US$4.2 trillion in asset management, has been involved with The Fidelity Advantage Bitcoin ETF (The Fidelity Advantage Bitcoin ETF, trading code: FBTC). ETF meeting. Funds (Ticker: FBTC.U). Unlike BITO, Fidelity's Bitcoin ETF tracks the value of Bitcoin, allowing traders to hold Bitcoin directly instead of being affected by Bitcoin by devices.

Still available for ETFs pending SEC approval.

Data from TrackInsight shows that in markets outside the United States, Canada currently has 23 bitcoin-linked ETFs endorsed by seven organizations, and 37 crypto-fin ETFs listed in Europe, Germany, Sweden, Switzerland and the United States. Liechtenstein too. / AND P.

Rapid expansion of the Cryptospot platform

Centralized cryptocurrency poor

Centralized exchanges are the most important channel for users to directly access crypto assets. According to a research report by Huobi Research, the cryptocurrency exchange market volume exceeded $1 trillion for the third consecutive month since the start of 2021, and in April it was worth more than $1.26 trillion. . Some of the most important features of the cryptocurrency exchange today are:

coinbase

Coinbase was listed on the Nasdaq stock exchange on April 14, 2021. As the first platform to follow the Nasdaq listing, Coinbase has not only provided Silicon Valley traders with incredible returns, but has also helped the industry attract more external cars. .

Binance

Binance is the largest cryptocurrency exchange in the world and far ahead of its competitors in terms of trading volume, currency options, services, and more. According to data from CoinMarketCap on Jan. 19, Binance's 24-hour volume was over $14.7 billion, better than Coinbase's $3.29 billion. In May 2021, Binance.us was investigated by the US Department of Justice and the Internal Revenue Service. At the end of June, UK financial leaders announced that Binance was involved in an unauthorized takeover of the UK economy. In August 2021, Binance CEO Changpeng Zhao told Bloomberg that he now spends 80% of his time thinking about management.

FTX

As the fastest growing cryptocurrency exchange in 2021, FTX has become one of the biggest cryptocurrency markets that cannot be ignored. By 2021, FTX users will grow 1300% to over 5 million, total site revenue will grow 2400% to $719 billion, and free to $16.77 lab . FTX has raised $1.4 billion by 2021 and agreed to raise $800 million earlier this year, with FTX.com valued at $32 billion and FTX at US$8 billion. In terms of rules and regulations, FTX is licensed under the Bahamas DARE Act of 2020, making FTX the first major cryptocurrency exchange to provide derivatives. FTX US acquired LedgerX (now FTX US Derivatives) and obtained licenses such as CFTC-registered Designated Contract Markets (DCMs), Derivatives Clearing Organizations (DCOs), and Swap Execution Facilities (SEFs) ), licensed for FTX. US negotiates with the United States and the CFTC. For use in other areas where licenses are known. FTX Digital Markets has become the first digital asset company to be registered under the Bahamas Digital Assets and Registered Exchanges Act, enabling it to offer a wide range of products and services to its clients in compliance with regulatory requirements.

Robin Hood

On July 29, 2021, stock and cryptocurrency trading platform Robinhood landed on the Nasdaq. Robinhood is a popular young broker that supports free and direct purchase of cryptocurrencies such as Bitcoin, Ethereum and Litecoin in USD. The cryptocurrency industry accounts for 41% of revenue, according to Robinhood's second quarter earnings report.

Gemini

Gemini, a New York-based digital exchange traded by Winklevoss Twins, now trades around $300 million daily. On Forbes' current 2021 cryptocurrency list, the Winklevoss brothers were listed with a worth of $1.4 billion in crypto, with a Bitcoin purchase price of around $120. On January 14, Bloomberg reported that the Winklevoss brothers, the founders of the Gemini cryptocurrency exchange, are considering listing on the Gemini cryptocurrency exchange.

Kraken

Founded in 2011, Kraken was one of the top cryptocurrency exchanges, accounting for 5.3% of all trades in February. On September 16, 2020, Kraken announced that it had obtained a US Virtual Currency Banking license, making it the first new type of bank to be licensed in the United States since 2006. Granted, Kraken will have direct access to government payments, allowing it connect with financial institutions and provide resources to consumers. Recently, Kraken has been in talks with companies such as Fidelity, Tribe Capital and General Atlantic to raise new capital worth over $10 billion.

to be

Bakkt, a digital asset company, has entered into a joint venture with VPC Impact Acquisition Holdings, a global investment firm, and will be listed on the New York Stock Exchange on October 18, 2021. code 'BKKT'. Bakkt is an open and managed exchange for digital assets, which was announced on the ICE Intercontinental Exchange in August 2018. The operations of its parent company, ICE Intercontinental Exchange, include 14 commodity and futures exchanges, including the New York Stock Exchange, Canadian Futures Exchange, Paris Stock Exchange, London International Financial Futures Exchange and five clearing houses. The largest exchange and exchange management network in the world. ICE's trading platform, Bakkt, is trusted by big business.

Centralized cryptocurrency lending platform

BlockFi is a global lending company that works for retailers and consumers. It started with the lending industry and gradually expanded into financial services cryptocurrency services with business sectors that included everything from investors to ultra-profitable consumers. BlockFi is the financial services provider for CME Bitcoin future transactions and options on the Chicago Mercantile Exchange. In 2020, we will enter into a partnership agreement with Fidelity Digital Assets to provide USD loans to Bitcoin Insurance clients in their accounts in Fidelity Digital Assets. In July 2021, BlockFi and Visa jointly developed a Bitcoin Rewards debit card. In March 2021, BlockFi completed a $350 million Series D funding of $3 billion.

Cryptocurrency buying platform

In October 2020, PayPal launched a cryptocurrency payment service. PayPal states that users can buy, hold and sell cryptocurrencies through their PayPal account. On March 30, 2021, PayPal announced on Twitter that it would be launching a new service called "Checkout with Crypto". The service allows users to choose Bitcoin, Litecoin, Ethereum or Bitcoin Cash as their payment method and can pay millions. Cryptocurrency wallet Venmo, the PayPal company of global online merchants, has an 18% market share of global wallets.

In addition to PayPal, Visa and Mastercard have also announced support for cryptocurrency payments.

Cryptocurrency payments are going mainstream

In addition to the large payments, many companies in the sector have started paying, including car manufacturers Tesla and Mazzanti, the shipping company China World Shipping (SINO.US), the construction of industrial gardens Piso Barato Inmobiliaria and the Venezuelan giant store Rattan. . Accept cryptocurrency.

Cryptocurrency venture capital funds have broken records

Fundraising for crypto venture capital has been active since the beginning of this year and revenue has been renewed. On March 26, Dragonfly Capital announced the announcement of a $225 million second-stage venture capital fund, and on May 4, Multicoin Capital announced the completion of a second-stage venture capital fund of $100 million. On May 14, The Office raised $100 million for its second cryptocurrency, and on May 25, 1confirmation announced that it had raised $125 million for its new cryptocurrency.

On June 24, A16z increased its crypto venture fund tenfold, raising over $2.2 billion for its third cryptocurrency, Crypto Fund III, and the rapid file size and volume can be configured. Cryptocurrency investment firm Paradigm, along with its major investments, announced on April 15 that it announced a $2.5 billion cryptocurrency venture fund that will invest in crypto companies at all levels and at all levels. It is the largest cryptocurrency venture capital fund, with over $2.2 billion in A16Z funds raised in June.

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Acceleration of entry through management agencies and incumbent banks

Monitoring services are an important part of joining a financial product. After the big announcement of cryptocurrencies in 2021, there is a huge demand for storage products and services. According to a research note, crypto regulators have focused on the company which expects to see a significant increase in revenue in 2021. These companies have raised more than $3 billion this year, more than us Doubling their capital by 2020. Larger investments include Anchorage $350 million, $380 million from Ledger, $310 million from Fireblocks and $50 million from Copper.

Bank of New York Mellon (BNY Mellon), one of the world's largest watchdogs, has announced the launch of a new digital watchdog in 2021 to help consumers switch digital assets, including cryptocurrencies. The greyed-out Bitcoin Trust provides financial and governance services.

JPMorgan Chase has previously provided banking services to Coinbase, Gemini and other US exchanges. Daniel Pinto, CEO of JPMorgan Chase, recently said that the company should eventually launch the Bitcoin service.

Paxos Trust Service License Company provides storage and exchange services.

Crypto asset management provider NYDIG offers Bitcoin to hundreds of US schools. Through its partnership with fintech company Fidelity Nation Information Services, partnering with Bank of America customers to access their existing cash flow has involved buying, holding, and trading BTC.

Cryptocurrency merchant bank Galaxy Digital, led by former hedge fund mogul Mike Novogratz, is trading Bitcoin futures with Goldman Sachs.

In December 2021, crypto-asset storage platform Fireblocks completed a Series E funding of $400 million worth $8 billion, and in July completed a Series D funding of $310 million. dollars worth about $2 billion. I did. Fireblocks has several major market players, including Bank of New York Mellon and cryptocurrency manager Galaxy Digital.

In December 2021, crypto firm Anchorage announced that it had raised $350 million of just $3 billion, making it the first major venture from a KKR private equity firm in the world. cryptocurrency space. Anchorage was established in 2017 and started out providing crypto services primarily to third-party agencies, but has now grown into a full-fledged financial and service provider for digital assets. We have developed solutions for a wide range of customers such as banks, manufacturers and miners with a wide range of products, management services and lending based on treasure preservation.

Digital currencies have long been designed to be the most profitable non-regulatory medium, like banks. However, faced with the continuous improvement of digital currency, banks are not resting on their laurels and are starting to actively explore Bitcoin and the blockchain market.

According to Research Data, most of the world's largest banks are involved in the crypto and blockchain fields in several ways, and among them, 55 of the top 100 financial management banks have adopted blockchain technology. The actual investment of these banks cannot be determined. Among these banks, Barclays, Citigroup, Goldman Sachs, JPorgan Chase and BNP Paribas are the most traded companies in the blockchain.

The exponential growth of virtual assets presents excellent opportunities to capitalize on. In the aftermath, as the storage of virtual assets is the infrastructure of the whole industry, attracting the attention of home in the field of virtual assets as well as the integration of the traditional financial department. Currently, many traditional banks such as Bank of America, Bank of New York Mellon, JPorgan Chase, Korea Woori Financial Group, DBS Bank of Singapore, Commonwealth Bank of Australia, and Deutsche have developed the virtual tool. bank, etc.

Whether through corporate investment or regulatory oversight, we can see that companies today are beginning to fight for the "legitimacy" of digital advantages. .

A solid foundation has been laid for crypto assets to enter mainstream financial institutions by 2021. As the rules become more widespread in 2022, more companies are expected to adopt crypto assets.

The level of regulation of the business environment and the management of the business environment for the industry are an integral part of the decision-making process of companies.

—Christopher Matta, 3iQ. 3iQ is Canada's digital management platform for American consumers.

You will gradually see the difference between doing business with few or no clear rules and trading with clear rules.

- Curtis Ting, Director of Kraken, America's leading cryptocurrency exchange

Written by SnapFingers DAO members Ivy & Lisa