Stay in the loop with our weekly crypto digest as we get you up to speed on the hottest trends and events in the crypto space.
Here’s what happened in crypto this week:
21Shares Files S-1 For XRP ETF
21Shares recently filed with the SEC for a spot XRP exchange-traded fund (ETF), becoming the third major player to attempt to introduce this type of financial product to the American market.
The investment firm aims to provide investors with indirect exposure to XRP. The initiative is also part of a broader trend of financial innovation as the sector sees a proliferation of applications for crypto ETFs, particularly for Solana and Litecoin.
Switzerland’s Largest Bank UBS Launches World’s First Ethereum-Based Tokenized Fund
UBS Asset Management has introduced the first tokenized investment vehicle based on Ethereum. The fund, called “UBS USD Money Market Investment Fund Token,” or “uMINT,” is built on Ethereum for certain authorized distribution partners in Singapore.
The new fund provides institutional investors with a digital avenue for secure, conservative cash management through high-quality money market instruments.
According to the Union Bank of Switzerland’s press release, uMINT seeks to meet conservative liquidity and risk requirements, appealing to investors through authorized distribution partners, and is built to align with institutional needs for risk-managed, reliable investments.
SEC Issues Wells Notice To Immutable, Alleging IMX Token Violations
The US Securities and Exchange Commission (SEC) has issued a Wells notice to Immutable, raising concerns about the company’s $IMX token sales, which the agency alleges may violate securities laws.
Immutable has stated it will contest the notice, asserting that its tokens comply with existing laws and serve as a functional asset within its gaming platform.
According to Immutable, the Wells notice relates to $IMX token activities dating back to 2021, though specific claims were not detailed. Andrew Sorokovsky, Immutable’s Vice President of Sales, remarked that the SEC’s recent actions follow a regulation pattern through enforcement across the blockchain sector, with companies like Coinbase, Ripple, and OpenSea facing similar scrutiny.
Immutable maintains that its users or partners are not required to make immediate changes, and its operations remain unaffected.
Deutsche Telekom To Test Bitcoin Mining For Surplus Energy
In a recent press release, Deutsche Telekom’s subsidiary MMS said that it is partnering with Bankhaus Metzler to integrate Bitcoin mining as a stabilizing mechanism for Germany’s fluctuating renewable energy output. The firm’s approach aims to address essential energy challenges like efficiently using surplus power generated by renewables.
As per the release, this energy often goes unused due to its limited grid capacity or inadequate storage solutions. Oliver Nyderle, Head of Digital Trust & Web3 Infrastructure at MMS, noted that this “digital monetary photosynthesis” offers a way to convert excess energy into digital assets. He added that it would help create a dynamic tool to manage power grid fluctuations.
Bernstein Predicts A Bitcoin Price Of $200,000 By The End Of 2025, Regardless Of The US Election Result
Analysts at research and brokerage firm Bernstein predict a price target of $200,000 for Bitcoin by the end of 2025, regardless of the outcome of the US election.
Bitcoin’s primary drivers are US fiscal indiscipline, record debt levels, and monetary expansion, which drive up demand for hard assets. Moreover, the success of US spot bitcoin exchange-traded funds further accelerates this trend with enough headroom for growth.
“The Bitcoin genie is out of the bottle, and it is hard to reverse this course. Our Bitcoin price target for the end of 2025 remains $200,000 independent of the election outcome,” the analysts said.
Robinhood, Kraken, And Paxos Launches Global Dollar Network Stablecoin USDG
A consortium of cryptocurrency companies, including Robinhood, Kraken, Paxos, and Galaxy Digital, introduced a joint stablecoin pegged to the US dollar.
According to the press release, the newly formed Global Dollar Network (USDG) aims to accelerate the usage of stablecoins worldwide and promote an asset that provides proportionate economic benefits to its partners.
USDG will face the uphill task of elbowing into a concentrated market where the two biggest stablecoin issuers—Tether (USDT) and Circle (USDC)—account for nearly 90% of the total market capitalization.
Sen. Elizabeth Warren Wins Race Against Republican John Deaton
Massachusetts Sen. Elizabeth Warren won a third term on Election Day, defeating Republican challenger John Deaton.
Deaton said he called Senator Warren to congratulate her and offered his assistance if she needed it.
“It’s fun to show people that you can challenge your political opponents on policy and their record without being engaging in this overly divisive attacks that we see in our politics today,” Deaton said. “We showed people there is a difference between fighting against things and fighting for things. Fighting against people and fighting for people.”
Donald Trump Wins US Presidency
Donald Trump will return to the White House as the 47th President of the United States after defeating Kamala Harris in the presidential elections.
Trump’s victory scored him with 277 electoral votes against 224 for Harris. Polls had predicted a much tighter race, but the Republican candidate made a remarkable comeback from defeat in 2020.
As we enter this new era, we hope to see continued innovation and thoughtful regulation in the cryptocurrency space, fostering growth and security for all investors.
Federal Reserve Cuts Interest Rates By 25 Basis Points
The Federal Reserve announced its second consecutive interest rate cut, lowering the benchmark rate by 25 basis points amid economic data showing signs of cooling inflation and the labor market.
With the 25-basis-point cut, the benchmark federal funds rate will range from 4.5% to 4.75%. The Fed’s move follows a larger-than-normal cut of 50 basis points at its September meeting, which was the first rate cut since March 2020 and brought rates down from a range of 5.25% to 5.5%—the highest level since 2001.
The Federal Open Market Committee (FOMC), the Fed’s policymaking arm, noted that “labor market conditions have generally eased, and the unemployment rate has increased but remains low. Inflation has made progress toward the Committee’s 2 percent objective but remains elevated.”
Final Thoughts
So that’s it for this week!
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Have a fantastic week ahead!
