VanEck Reports On A Year In Cryptocurrency, Saying Crypto And Bitcoin Are “Not Going Away”
VanEck Reports On A Year In Cryptocurrency, Saying That Crypto And Bitcoin Are “Not Going Away”
VanEck has been well publicized lately for their proposal of, and subsequent withdrawal of, a Bitcoin ETF. While this might still be in the works, the company recently published a blog post, discussing the longevity that Bitcoin and the crypto industry has, especially with the changes in the industry.
Recently, CEO Jan van Eck spoke at the Consensus Invest 2018 event, commenting then that the year would be a year of regulation, primarily due to the way that the US Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and other global regulators got involved in the digital asset conversation. Now, this year, the CEO believes that the industry will be filled with “singles,” in that new projects, technologies, and regulatory solutions will evolve and improve.
Since Bitcoin has dropped from $19,500 to $3,000 since December 2017, many people hope that the problems were already behind them as a “fad.” Now, many major companies are working on their own developments, which VanEck broke down in their blog on March 18th. The “singles” listed below are the various events that could contribute to expanding the digital asset market.
- Square Bitcoin Integration
Square is a digital payments company that recently made it possible for consumers to both purchase and sell Bitcoin through the Cash app. As a result, the revenues from 2018 added up to $166 million from Bitcoin alone. Square also reported more revenue in the second half of 2018, as opposed to the first.
2. States Accept Bitcoin Tax Payments
In November last year, Ohio was the first state to announce that businesses would be allowed to make tax payments with the use of Bitcoin. Right now, the only asset that can be used is Bitcoin, but the industry expects that this will soon be an option for individuals as well. Other states exploring these options include New Hampshire, Indiana, and Wyoming.
3. Samsung Brings Digital Assets Key Storage to the Masses
The Galaxy S10 from Samsung brought a major surprise to proponents of cryptocurrency. Offering Ethereum as the primary digital asset, the latest model makes it possible for consumers to use the product for cold storage of their private keys. With this functionality, users can join the cryptocurrency movement without buying a new product. Right now, Samsung is one of the largest mobile phone makers in the world, and this option exposes a completely new audience to the use of cryptocurrency.
4. Robinhood Expands Reach with Bitlicense Approval
New York has a strict policy regarding cryptocurrencies in the state, requiring that any exchange register for a Bitlicense, which Robinhood Crypto LLC was able to achieve. Their app, which appears to be primarily geared towards millennials, offers the sale of ETFs, options, and stocks, along with digital assets. Along with New York, consumers can use it in 37 states, making it a straightforward way for digital assets to be exposed to a greater market.
5. Expansion of Futures Market
The Chicago Board Options Exchange (CBOE) and the Chicago Mercantile Exchange (CME) listed Bitcoin futures about two years ago, paving the way for a 229% increase in CME Bitcoin futures since, on a daily basis. A partnership between MV Index Solutions (MVIS2) and NASDAQ emerged as well, launching a “regulated crypto 2.0 futures-type contract.” Intercontinental Exchange announced Bakkt, bringing one-day physically delivered bitcoin futures contracts.
6. NASDAQ Brings Surveillance to Exchanges
One of the biggest issues that the SEC has been worried about is manipulation in the market, which the NASDAQ has been working to remedy. Many digital assets have chosen to use their market monitoring SMARTS technology, which helps to trace illegal activities that can show up on exchanges, which will hopefully promote a level of comfort for the SEC and investors.
7. The World’s First Crypto Basket Index ETP
Around the world, digital assets products are seeing a bigger demand, which has attracted the attention of European exchanges. An ETP was listed by the SIX Swiss Exchange, called the Amun Crypto Basket Index ETP.
8. Facebook Pivots Toward Crypto
Facebook has not confirmed much in the way of their various blockchain engineering team, though rumors have been running rampant over their potential Facebook coin. Multiple employees have unofficially confirmed that the company plans to release the coin for WhatsApp in the next year, which would expose an entirely new group to the use of cryptocurrency.
Right now, the industry has not even completed the first quarter of the year, and there are still many developments to come this year. Hopefully, these many changes will help to promote more active investors in the space, along with multiple institutional investors.