The first Bitcoin ETF was finally approved in the United States! Facebook is launching a pilot for its Novi wallet. Polkadot’s parachain auctions are coming. Square has announced new plans regarding Bitcoin. Bitcoin’s price reached a new all-time high.
The first Bitcoin ETF was approved in the U.S
Bitcoin ETF is by far the biggest news this week. Investors have been waiting for SEC’s approval for years and years. Now it’s finally happening!
”We believe a multitude of investors have been eagerly awaiting the launch of a bitcoin-linked ETF after years of efforts to launch one”, commented Michael L. Sapir, the CEO of ProShares.
The official name of the new Bitcoin ETF is ProShares Bitcoin Strategy. It has the ticker BITO. As CEO Sapir predicted, there was a massive demand for the new ETF.
My latest: ProShares bitcoin futures ETF sees historic nearly $1 billion trading day
"It absolutely obliterated," said James Seyffart of Bloomberg Intelligence.https://t.co/XayYB03xUe
— Frank Chaparro (@fintechfrank) October 19, 2021
The new Bitcoin ETF is futures-based. This means that the fund will not hold actual bitcoins or buy them. While the new Bitcoin ETF is an important step forward, this doesn’t have nearly the same effect on Bitcoin’s price that a spot-based fund would have had.
However, while we are waiting for a spot-ETF, a futures-based ETF is a great alternative. It brings legitimacy to Bitcoin as an asset class. It also makes it possible for more institutions to join the market.
There is a huge amount of money in the world waiting for the crypto regulation to become clearer. The Bitcoin ETF is a step in the right direction. We will revisit this topic in the coming weeks for sure.
Facebook launches the first pilot of Novi
In the summer of 2019, Facebook caused a big boom in the market by publishing its intentions to develop a cryptocurrency (stablecoin) called Libra.
Unfortunately for Facebook, this project was fiercely opposed by regulators all around the world. Several key partners also stepped away as a result. Not much has been heard from Libra since 2019.
However, Facebook hasn’t stopped the development entirely. Libra has been rebranded as Diem, and the head of Facebook’s Fintech department tweeted yesterday about the pilot phase of the Novi wallet.
Remittances are a critical way to achieve financial inclusion. Today, we’re rolling out a small pilot of the @Novi digital wallet app in two countries — the US and Guatemala. People can send and receive money instantly, securely, and with no fees. 1/8
— David Marcus (@davidmarcus) October 19, 2021
Novi aims to solve remittance problems between the U.S. and Guatemala. There is a huge amount of money transfers between these countries, as 14 % of Guatemala’s GDP consists of money sent from abroad. This means Novi is trying to do what Bitcoin’s lightning network has achieved in El Salvador.
Novi uses USDP stablecoin. Transactions are done in real-time and they are free of charge. The USDP, or Pax Dollar, is quite an unknown stablecoin with a market value of about $1 billion.
The crypto exchange Coinbase is also involved in the pilot by offering a custody service.
Time will tell how big Facebook will grow in this sector. Facebook has a massive user base and almost infinite resources compared to the Bitcoin community. But Facebook’s solution is not open-source like Bitcoin is.
Polkadot’s parachain auctions are finally here
Polkadot differs significantly from other smart contract platforms. It wants to build “the internet of blockchains” by connecting them. These blockchains are called parachains in the Polkadot ecosystem.
Now Polkadot’s parachain slots have come up for auction. Whoever wins the slot will receive a 96-week leasing contract with the possibility of renewal. These auctions are supported by some cryptocurrency exchanges, such as Kraken.
･∴｡ Kraken will support @Polkadot Parachain Auctions ｡∴･
Together we helped +10 parachains raise tens of millions on the Kusama network & now we’re adding support for #Polkadot parachain auctions.
— Kraken Exchange (@krakenfx) October 19, 2021
Parachain auctions should increase the demand for the DOT token significantly. A large part of the tokens is already staked in Polkadot’s Proof of Stake governance. When auctions start, even more DOT tokens are locked out of circulation through bonds.
Maybe we’ll see a supply shock of DOT in the near future? You should keep an eye on this token.
A while ago Polkadot founder Gavin Wood also informed about an $800 billion fund, which will be used to develop and grow the ecosystem.
Square and Bitcoin mining
Square is one of the world’s largest exchange-listed companies that own Bitcoin. Square’s Cash App enables users to make easy Bitcoin purchases. The company is also planning to develop a hardware wallet suitable for mainstream audiences.
This time Square is in the headlines because of Bitcoin mining. Anthony Pompliano introduced the topic in The Best Business Show yesterday.
According to founder Jack Dorsey, Bitcoin mining must be as decentralized and environmentally friendly as possible. Dorsey also believes that mining should be possible for anyone. Square wants to build a mining solution for consumers.
Jack Dorsey is building Square to become the world’s largest Bitcoin company. Square can soon offer a wide range of Bitcoin-related services to consumers. The development will be done open-source with the Bitcoin community.
Square’s stock price has been on a strong uptrend as well. The stock price has increased 5x from the lows of 2020.
Bitcoin broke a new record price
Today is a historic day as the price of Bitcoin reached a new all-time high. The previous record was set about six months ago in the final moments of the spring price rally.
Bitcoin’s new ATH is $66,930, although on some cryptocurrency exchanges the price was above $67,000.
The new ATH did not come as a huge surprise. Many experts have been positive about the year-end price development. Now it looks almost certain that Bitcoin is repeating the trend seen in 2013.
2021 #Bitcoin is repeating 2013 on the macro and it couldn't be any clearer.
5D timeframe shown. pic.twitter.com/cJJ5xCqHv0
— TechDev (@TechDev_52) October 18, 2021
The price of Bitcoin has risen by more than 100 percentage points from the summer lows and moved into the price discovery. This refers to a price level for which no historical price data is available.
When information about resistance and support levels is not available, the price can move quickly to new record levels. This was also seen a year ago when the price of Bitcoin exceeded its ATH and kept going further.
We should remain realistic, though. The price of Bitcoin is not going to the moon in a straight line. There will be many corrections before the year is over. These dips will be great buying opportunities for those who have missed the rally so far.