Dispatch #153: Europe Hits the Spot

Aug 18, 2023 3 min read

Dispatch

In this patch of your weekly Dispatch:

A new ATH in pesos 🇦🇷
The Fed supports a token 💥
Regulation across the globe 🌐

The Big Idea

Fund-spotting Around the World

You could hardly tell from Bitcoin’s price movements, but this week was marked by a significant development for the world’s leading digital asset – the introduction of a spot Bitcoin ETF on Amsterdam’s Euronext exchange. Crypto media headlines called it Europe's first spot Bitcoin ETF – words that would send hearts racing if applied to the USA, where the decision on Graysclale’s spot BTC ETF application looms.

Europe, though, is no stranger to exchange-traded products (ETPs), which include ETFs – so much so that there are 155 cryptocurrency ETPs available to European investors, with the sector experiencing a true surge in 2022.

So, the Old Continent is overtaking the USA in the spot Bitcoin ETF realm, yet investor interest is seemingly driven by regulatory decisions. You only have to look at the volume Amsterdam’s Jacobi ETF attracted on its first day – $2,000, a number that is worlds apart from being headline-worthy.

In spite of these dynamics in Europe, market participants (and crypto Twitter) are focused on the USA and the pending ruling on the first spot Bitcoin ETF. The latter could open the door to the approval of a dozen more applications, drive fresh investor capital towards the asset, and more importantly – signal regulatory acceptance in the biggest market.

The Latest In…

An Unexpected All-Time High

In a twist, Bitcoin has achieved a remarkable milestone in Argentina. We may be accustomed to following Bitcoin's price in USD, but in the Latin America country, buying 1 BTC now costs an astonishing 10M Argentine pesos (ARS).

This significant price surge isn't just about Bitcoin's strength, but also serves as a stark reminder of the powers of inflation and the peso's instability. This cryptocurrency lifeline proves crucial for many Argentinians, whose savings and purchasing power are diminished by the peso's devaluation. Nexo Co-Founder and Managing Partner Antoni Trenchev shared his insights for Benzinga earlier this week.

The Latest In…

HBAR Starts with a Bang

Hedera HBAR token went live on Nexo recently and registered impressive market performance this week. Here are the latest details for our community:

HBAR climbed 15% as the U.S. Fed's FedNow added Dropp, a micropayments platform on Hedera.
Dropp enables cost-efficient small digital purchases with HBAR, USD, and USDC.
HBAR's value has risen almost 50% since mid-June, reaching a $2.05B market cap.
Hedera's active accounts grew 288% YoY to 13.5K by Q2 2023, with NFTs driving Q2 growth, according to Messari.

The Latest In…

Global Regulatory Round-Up

It has been a busy week on the global crypto regulatory front – here’s the main stories:

Global economic leaders at a recent G20 meeting urged stronger international collaboration on crypto regulations.
Brazil is advancing a bill to raise taxes on overseas-held cryptocurrencies, treating them as “financial assets” for foreign investment taxation.
Singapore's MAS has introduced a regulatory framework for stablecoins tied to SGD or G10 currencies. Stablecoin issuers must meet stability, capital, and redemption requirements.

The Week’s Most Interesting Data Story

Don’t Blame the Bitcoin

China’s property giant Evergrande filed for bankruptcy protection on Thursday, sending shockwaves through both traditional and digital asset markets. On Friday morning, Bitcoin dropped by around 10%, which translated into a similar decline in BTC’s in-profit circulating supply. This in turn signals the top-heavy state of the market (at the right end of the chart below), which shows the percent of BTC supply in profit currently stands at 61%.