20 Dec 2021 · 4 min read
First Crypto Investment Outflows in 17 Weeks, MicroStrategy's BTC Strategy + More News
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- Digital asset investment products saw outflows totaling USD 142m, the first outflow following a 17 week run of inflows, and the largest weekly outflow on record, per CoinShares data. It happened at a time when there have been considerable outflows across all risk assets following the recent US Federal Reserve statement on tapering, the firm said, stressing that outflows represent only 0.23% of total assets under management (AuM). "From an historical perspective, [the outflows] are small relative to the outflows in early 2018 where weekly outflows represented up to 1.6% of AuM. Also, the outflows come at a time of record yearly inflows peaking at USD 9.5bn, relative to inflows totaling USD 6.7bn in 2020," CoinShares said. Bitcoin (BTC) outflows reached USD 89m, compared with USD 150m in June. Ethereum (ETH) saw record outflows totaling USD 64m and has in the past countered BTC’s outflows.
- Enterprise software company MicroStrategy might lend out its BTC holdings, essentially putting a lien on the cryptocurrency. Chief Executive Officer Michael Saylor added that he sees the possibility of a market developing to eventually issue bonds backed by bitcoin.
- Ray Dalio, Founder of asset management firm Bridgewater Associates, has confirmed that he holds bitcoin and "some" ETH, per Yahoo! Finance. However, he has refused to disclose the amount he owns, adding that he sees it “as an alternative money in an environment where the value of cash money is depreciating in real terms.”
- Investment issuer Pioneer Media Holdings said it has acquired media studio Roundhouse Media that is developing and publishing non-fungible token (NFT) games. Pioneer added that it will continue its focus on Web 3.0 investments, including investments in businesses in the NFT, NFT gaming, and tokenized community sectors.
- Blockchain infrastructure provider Figment raised USD 110m in a Series C round at a USD 1.4bn post-money valuation. The funding round was led by software investment firm Thoma Bravo, with participation from Counterpoint Global, Binance Labs, Mirae Asset, ParaFi Capital, Avon Ventures, Bitstamp, CMS Holdings, Two Sigma, B Capital Group, Franklin Templeton, DTCP, and StarkWare. The new capital raised will expand Figment’s ability to support the adoption, growth, and long-term success of the Web 3.0 ecosystem, as well as significantly grow its headcount, the company said.
- The Reserve Bank of India is in favor of a blanket crypto ban, ANI reported, citing "people in the know of the matter," and adding that the government is not likely to bring a bill on crypto in the ongoing winter session of the Parliament.
- The Bank of England (BoE) is looking to tighten the rules on cryptocurrencies, per The Times. The BoE faced “challenges” in finding data on cryptocurrency holdings by institutional investors, the report added, citing Sarah Breeden, executive director for financial strategy and risk at the Bank.
- The US Treasury’s undersecretary for domestic finance Nellie Liang said government regulators need action from lawmakers to adequately protect investors, as well as the wider financial system, from risks posed by stablecoins, according to Bloomberg. The Financial Stability Oversight Council is prepared to take steps on its own to address stablecoins if Congress fails to pass legislation, Liang added.
- JPMorgan Chase has partnered with the German giant Siemens to develop a blockchain-based system for payments, the Financial Times reported. The system should be used to automatically transfer money between Siemens’ own accounts, initially in the USD, followed by the support for EUR next year. The infrastructure uses JPMorgan’s blockchain arm Onyx, with Siemens being the first anchor client, while the bank claims they have more clients to come.
- FTX.US has signed a deal with Washington, DC-based Monumental Sports and Entertainment (MSE) in its latest sports marketing partnership. Among MSE’s properties are the Washington Wizards of the National Basketball Association (NBA), the Washington Capitals of the National Hockey League (NHL), the Washington Mystics of the Women’s National Basketball Association (WNBA), and Capital One Arena, where all three teams play.
- Index funds are coming to the world of cryptocurrencies via decentralized exchanges (DEXes), with the handful of funds offered being run by decentralized autonomous organizations (DAOs), Bloomberg reported. Over the past year, these community-run index funds have raised hundreds of millions. For example, Index Coop, which was launched about a year ago, manages about USD 343.5m for more than 26,000 users; Synthetix (SNX) has about USD 386m in assets, while Indexed Finance has nearly USD 11m.
- Stronghold Digital Mining is buying 9,080 Bitmain and MicroBT mining rigs, according to a filing with the US Securities and Exchange Commission (SEC). 4,800 rigs bought for USD 35.7m should be delivered by the end of the year or in early January. Separately, Stronghold entered into an equipment financing agreement with investment firm NYDIG for up to approximately USD 54m, already receiving a first advance of approximately USD 18.6m (gross).
- Crypto platform Voyager Digital announced the appointment of Brian Brooks to its Board of Directors effective immediately. Brooks is currently the CEO of Bitfury Group and was formerly the Acting Comptroller of the US Currency at the Office of the Comptroller of the Currency.
- Mafia metaverse game SYN CITY appointed Swae Lee, American singer, rapper, and five-time Grammy Award nominee, as Chief Entertainment Officer. Lee has collaborated with Drake, Alicia Keys, and Jhené Aiko.