October 5, 2022       /       Unchained Daily       /       Laura Shin

Daily Bits✍️✍️✍️

  • Bitcoin futures trading volumes reached $1 trillion again in September.
  • Nathaniel Chastain, former OpenSea employee accused of fraud, wants to subpoena the NFT marketplace.
  • Crypto analytics firm Elliptic said that criminals have used crypto to launder $4 billion.
  • Celsius Chief Strategy Officer Daniel Leon resigned a week after former CEO Alex Mashinsky.
  • The Aave DAO is voting on how to deploy the latest upgrade of the decentralized borrowing and lending platform.
  • Celsius Network set a timeline for the auction of its assets, according to a court filing.
  • Crypto exchange Coinbase will release a documentary about cryptocurrency on Friday.
  • Elon Musk agreed (again) to buy Twitter and DOGE pumped.

Today in Crypto Adoption…

  • Payments giant Mastercard launched a new product called Crypto Secure, an anti-fraud tool for card issuers.
  • The European Parliament voted in favor of a resolution to use blockchain technology to modernize taxation processes.
  • NFT project VeeFriends will sell physical toys through Macy’s and Toys”R”Us.
  • Hugo Boss partnered with NFT collection Imaginary Ones to launch a “360-degree metaverse experience.”

The $$$ Corner…

  • Blockchain game developer horizon raised $40 million in a series A funding round.

What Do You Meme?

What’s Poppin’?

Fidelity Offers a New Fund as the Market Pumps

by Juan Aranovich

 

Fidelity Investments, one of the world’s largest asset managers with $4.5 trillion in assets under management, launched the Ethereum Index Fund, which will give its clients access to ether (ETH).

According to a filing with the U.S. Securities and Exchange Commission, the fund has raised $5 million since its first sale on September 26. It is the second crypto fund offered by the investment giant, which already had one with exposure to Bitcoin.

“As the marketplace for digital assets grows, Fidelity recognizes the need for a diverse set of products and solutions that help customers gain exposure in a manner that aligns with their distinct financial objectives and risk tolerance. We have continued to see client demand for exposure to digital assets beyond bitcoin,” a Fidelity spokesperson told CoinDesk.

In September, it was rumored that Fidelity was planning to offer BTC to the 34 million retail customers on its platform, but it was never confirmed. Also last month, the company partnered with Citadel Securities, Charles Schwab, and others, to launch a crypto exchange called EDX Markets.

Institutional interest in ETH has been ramping up despite the ongoing market conditions, especially since the Merge. It poses the question on whether ETH has earned a place besides BTC as a blue-chip cryptoasset. Also, if that were to be true, it raises the debate on whether ETH is taking away some of BTC’s proposition as a store of value and sound money.

Sam Bankman-Fried, who was on the latest Unchained, doesn’t think this is the case, and said that BTC will not lose the digital gold narrative.

Meanwhile, October has started quite well for crypto investors. BTC has surpassed the $20,000 level and ETH is trading at ~$1,350, up from a $1,267 7-day low. Still, traders will be watching Friday’s jobs report, as it would act as a signal for a tighter or looser monetary policy.

Recommended Reads

  1. Jeff Roberts’ column on Gary Gensler and the SEC
  2. Sébastien Derivaux on stablecoins
  3. Tom Pandolfi on NFT AMMs

On The Pod…

Sam Bankman-Fried, founder and CEO of FTX, discusses his views on crypto regulation, macroeconomics, and the role of FTX in a decentralized industry. Show highlights:

  • whether the market has already bottomed and the influence of macroeconomics
  • why Sam thinks regulation could have a significant impact on the crypto industry
  • the impact of the Terra collapse, Sam’s thoughts on stablecoins, and the importance of disclaimers
  • what the industry can do to prevent high leverage from crypto companies like Three Arrows Capital
  • how crypto lenders should manage risk in a sustainable way
  • whether the crypto collapses affected the opinion of lawmakers and regulators
  • the topics and proposals that Sam is discussing with regulators and his philosophy on financial regulation
  • what Sam thinks about building a centralized entity in a decentralized space
  • what it would take for FTX to move back to the United States
  • why Sam’s political donations more commonly support Democrats, among which are some prominent critics of crypto
  • whether he makes political donations based solely on candidates’ crypto stances
  • the role of FTX in the TradFi market and whether crypto and TradFi will evolve toward or away from each other
  • concerns about potential conflict of interests between FTX and Alameda Research
  • the impact of the Merge, the value proposition of Ethereum and whether it affects the narrative of Bitcoin as digital gold
  • how FTX is positioning itself in this macroeconomic environment
  • the type of acquisitions FTX is interested in

Book Update

My book, The Cryptopians: Idealism, Greed, Lies, and the Making of the First Big Cryptocurrency Craze, which is all about Ethereum and the 2017 ICO mania, is now available!

You can purchase it here: http://bit.ly/cryptopians