HODL! Tesla hangs onto all its remaining $218M in Bitcoin in Q3

October 20, 2022 Coin Telegraph

Bitcoin

The vehicle manufacturer's latest earnings report for the third quarter shows it's made no changes to its Bitcoin holdings since its huge sell-off in the second quarter.

Electric vehicle manufacturer Tesla has made no further changes to its remaining stash of Bitcoin (BTC) in the third quarter of 2022, despite nearly a $1 billion sell-off in the previous quarter.

The company’s Q3 report released Oct. 19 shows $218 million worth of “digital assets” remains on its balance sheet, with no reported losses in the value of its holdings. Based on current prices, it’s estimated that Tesla still holds around 9,720 BTC.

In Q2 earnings report, Tesla said it sold 75% of its Bitcoin during the quarter, adding $936 million in cash to its books and recording a $64 million profit from the sale.

Tesla CEO Elon Musk explained at the time that the sell-off was due to liquidity concerns from the COVID-19 lockdowns in China.

The sell-off during the quarter took a large chunk of the company’s $1.5 billion position in Bitcoin, which it had revealed in February 2021, which at the time, made it one of the largest corporate holders of Bitcoin.

Overall for Q3 2022, Tesla posted $3.3 billion in profits attaining revenues of $21.45 billion, which reportedly fell short of analysts’ expectations, and saw Tesla’s stock price fall by nearly 14% in after-hours trading according to Yahoo Finance.

Under Musk’s leadership, the vehicle company has seen its range of merchandise available for purchase using Dogecoin (DOGE) since January. His rocket-building company SpaceX soon followed suit in May.

One of Tesla’s recent products was a limited edition whistle it posted for sale in September which could only be purchased using DOGE retailing for 1,000 DOGE, or around $60 at the time. It’s unknown exactly how many units were made available but it reportedly sold out within hours.

Majority of British crypto owners revealed to be hodlers: Survey

July 6, 2022 Coin Telegraph

Coin Telegraph

In the U.K., crypto owners prefer centralized exchanges and claim their assets to be largely profitable.

An average crypto asset holder in Great Britain would be young, male and hodler. And they would consider crypto to be a ‘fun investment.’ Such are the findings from the fresh research, conducted by Her Majesty Revenue and Customs (HMRC) with the help of research agency Kantar UK and published on Tuesday.

Taking a quantitative approach, the research sought to establish the prevalence of owning crypto assets, the types and amounts held, and the platforms individuals use to buy crypto assets. It consisted of a survey with a representative sample of 5,916 United Kingdom adults, including 713 crypto asset owners.

The report revealed that 10% of the U.K. citizens hold or have held crypto, with 55% never having sold any (equivalent to 5% of the adult population). Only 7% are currently holding more than £5,000 (almost $6000 by press time) in value, while 52% of current owners have holdings of up to £1,000 ($1200).

Other significant findings come as no surprise — crypto owners tend to be younger than the general population with 76% of them 45 years, and mostly they are male (69%). A vast majority of them hold cryptocurrencies (79%), while the second most popular type of asset is utility tokens (20%).

An important takeaway refers to the common trading pattern — 68% of owners most frequently acquire crypto from “centralized exchanges” and 81% use these exchanges to sell or exchange their assets.

The majority of owners reported making a profit (63%) over the past year when disposing of cryptoassets, 14% claim they made a loss and, similarly, 14% revealed they broke even. As the survey was conducted between February 2021 and June 2021, this data should be attributed to 2020.

On July 5, HMRC made a call for an evidence paper, describing its intention to study whether administrative hassles and costs may be reduced for taxpayers who participate in the crypto industry.

71% of high net worth individuals have invested in digital assets: Survey

June 16, 2022 Coin Telegraph

Capgemini

A new survey suggest most of the world's wealthiest have invested in digital assets and wealth management firms have been advised to prioritize providing education and advice.

High net worth individuals (HNWI) have embraced cryptocurrencies and other digital assets, with 71% of wealthy individuals investing in digital assets according to a new survey.

Technology consulting company Capgemini released its 2022 World Wealth Report on June 14. It polled 2,973 global HNWIs, with 54% reporting a wealth band ranging from $1 million to $30 million and 46% reporting wealth of $30 million and over.

The survey asked about investment preferences for emerging asset classes such as digital assets, classifying them as cryptocurrencies, related exchange-traded funds (ETFs), non-fungible tokens (NFTs) and metaverse-related products.

Of the roughly one in seven wealthy individuals investing in digital assets, the highest concentration were under 40. More than nine in ten in this age group have invested in digital assets. The younger cohort said cryptocurrencies are their favorite investment, with crypto ETFs and metaverse products also highly desired.

Crypto does not make up the majority of portfolios however and on average, HNWIs have only allocated around 14% into “alternative investments” which includes crypto alongside commodities, currencies private equity and hedge funds.

Capgemini observed, however, the wealth management industry is seeing an influx of investments into digital assets and this has “increased the demand for educational capabilities.”

Nilesh Vaidya, the firm's head of retail wealth management said:

“The influx of new investment avenues such as sustainable investing and digital assets is having a crucial impact on the wealth management industry. Wealth management firms must prioritize providing timely education around this trend to retain their customers.”

Some firms are already clued into this trend and are wanting the first-mover advantage into this niche sector by launching investment products targeted at the demographic.

Investment bank Morgan Stanley introduced exposure to Bitcoin (BTC) for its millionaire clientele in March 2021 with only those holding $2 million or more in capital able to invest.

Private banking clients for BBVA Switzerland were also given access to crypto trading and custody services, along with a similar offering from Wells Fargo in 2021.

The report comes after earlier research by Accenture which revealed 52% of wealthy investors in Asia held some form of a digital asset during the first quarter of 2022 making up, on average, 7% of the surveyed investors’ portfolios.

Similarly, Accenture also found that wealth management firms have been slow to adopt investment products with cryptocurrency or digital asset exposure, with a majority saying they have no plans to offer related services.

Sushi and Synthetix get the boot in Grayscale DeFi fund rebalancing

April 7, 2022 Coin Telegraph

Asset Management

Crypto asset management firm Grayscale has added three new crypto assets to its funds and has kicked SushiSwap and Synthetix from its DeFi Fund following its first quarterly rebalance.

Digital asset management firm Grayscale, has added three new cryptocurrency assets across three main investment funds, while removing two other assets from its Decentralized Finance Fund as part of this year’s first quarterly rebalance.

Grayscale removed tokens from crypto-derivatives decentralized exchange Synthetix (SNX), and decentralized exchange SushiSwap (SUSHI), from its DeFi fund after the two crypto assets failed to meet the required minimum market capitalization. No other cryptocurrencies were removed during the rebalancing.

Grayscale’s DeFi fund, which was launched in July last year, currently holds approximately $8 million in assets. The digital assets remaining in the DeFi fund after the quarterly rebalance include Uniswap (UNI), Aave (AAVE), Curve (CRV), MakerDAO (MKR), Amp (AMP), Yearn Finance (YFI) and Compound (COMP).

The crypto asset manager added Avalanche (AVAX) and Polkadot (DOT) to its Digital Large Cap Fund, alongside adding Cosmos (ATOM) to its Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund).

The GSCPxE Fund, which was launched on March 22nd, offers investors the ability to bet on an index of Ethereum’s largest competitors. The GSCPxE Fund’s current holdings listed by the total amount held are ADA, SOL, AVAX, DOT, MATIC, ALGO, XLM and ATOM.

Grayscale remains the world’s leading crypto asset manager, reporting that it held $43.5 billion in assets under management as of Jan. 3rd, this year. The Grayscale Bitcoin Trust (GBTC) remains the largest fund with just over $30 billion in AUM, but has traded at an increasing discount to its net-asset-value for the past year. GBTC is followed in size by the Grayscale Ethereum Trust (ETCG) which currently holds approximately $11.8 billion in AUM.

01/03/22 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.

Total AUM: $43.5 billion$BTC $BAT $BCH $LINK $MANA $ETH $ETC $FIL $ZEN $LTC $LPT $XLM $ZEC $UNI $AAVE $COMP $CRV $MKR $SUSHI $SNX $YFI $ADA $SOL $AMP pic.twitter.com/67Pb7xneoQ
— Grayscale (@Grayscale) January 4, 2022

In 2021, cryptocurrency investment funds generated over $9.3 billion in inflows as institutional adoption rose to new highs. Grayscale is gearing up to offer a Bitcoin Spot exchange-traded fund (ETF) and said it was willing to pursue legal action if the investment product remains barred by the SEC.

Crypto is not criminal: US Secret Service launches ‘crypto awareness hub’

February 23, 2022 Coin Telegraph

Coin Telegraph

The educational website shares the Secret Service intends to combat the “illicit use of digital assets” and provide “public awareness information.”

The tide is turning on the way in which law enforcers discuss cryptocurrencies and treat crypto users. The United States Secret Service has launched a cryptocurrency awareness hub featuring a cheesy public service announcement video.

The educational tool seeks to combat the “illicit use of digital assets as well as provide public awareness information on digital asset security and how to ensure it remains secure.”

Watch the video here:

"Secret Service: Safeguarding the next generation currency", Source: U.S. Secret Service Youtube

U.S. Secret Service Office of Investigations Assistant Director Jeremy Sheridan said that the hub focuses on "investigating financial crimes." It aims to "identify, arrest, and prosecute those engaging in crimes involving digital assets." Nonetheless, it's critical to note that the language and tone used regarding cryptocurrency are positive.

The launch website concedes that “digital and cryptocurrencies continue to become more popular forms of payments,” hence the need for the Secret Service to be at the top of its game.

The launch of the cryptocurrency awareness hub comes two years after the Secret Service founded the Finance-Related Cybercrime Task Force. The first iteration of cryptocurrency-related activities merely showed concern for the ways in which cryptocurrencies could be used to make illegal online transactions.

In what could be a small win for the cryptocurrency community, the industry may finally be shedding its reputation as being a haven for cybercrime and illicit activity. Cryptocurrency used to be reserved for Silk Road criminals and drug users.

However, in 2022, the Secret Service admits that:

“Investments and transactions using cryptocurrencies and digital assets are not inherently criminal.”

Broadly speaking, using cryptocurrencies on a transparent, backdating blockchain makes little sense for illicit financial activity due to the way in which blockchains can be easily monitored and tracked. The Netflix-worthy Bitfinex story involving unlikely criminals made this point very clear: it is very hard to launder money using blockchain.

Ultimately, if people want to get paid to do bad things, it’s still best to take the money in cash.

MicroStrategy CEO won’t sell $5B BTC stash despite crypto winter

January 20, 2022 Coin Telegraph

MicroStrategy CEO won’t sell B BTC stash despite crypto winter

Bitcoin

MicroStrategy’s Michael Saylor has no intention of selling from his firm’s $5-billion Bitcoin chest despite a 40% drop in the value.

Despite a 40% drop in the value of Bitcoin (BTC), MicroStrategy’s Michael Saylor has no intention of selling his firm’s $5-billion stash.

Even if BTC suffers a lengthy bear market, Saylor told Bloomberg that he is a “Bitcoin bull” and does not intend to alter MicroStrategy’s multi-billion-dollar BTC acquisition plan. He took a firm stance against cashing out BTC:

“Never. No. We’re not sellers. We’re only acquiring and holding Bitcoin, right? That’s our strategy.”

This current crypto winter doesn't have Michael Saylor feeling all that cold. He tells @emilychangtv why in Studio 1.0 https://t.co/EsUlY5sscN pic.twitter.com/zWStdl5qsF
— Bloomberg TV (@BloombergTV) January 20, 2022

MicroStrategy became the first publicly listed corporation in the United States to acquire and hold Bitcoin as part of its balance sheet in August 2020. Since then, the business software manufacturer has amassed about 124,391 BTC worth about $5.2 billion at current market prices.

Due to the large portion of its balance sheet being taken up by cryptocurrency, the company’s shares have turned into a means to get exposure to the “digital gold.” After announcing its venture into BTC, MicroStrategy’s stock skyrocketed 900% at one time; however, recently, its collateral has gone into a tailspin after being exposed to excessive buying events financed in part with borrowed funds.

Since August 2020, MicroStrategy has continuously boosted its Bitcoin position, keeping its promise to purchase even more of the major digital currency. Late last year, MicroStrategy bought 1,914 BTC between Dec. 9 and Dec. 29 for $94.2 million, bringing its total to 124,391 BTC.

Despite the recent market sell-off, Saylor still considers BTC one of the best inflation hedges and alternatives for stock buyback events. He dismissed any concerns about the cryptocurrency’s decline from its all-time high of $69,000 in November to less than $40,000 this month, stating that because inflation is so high, the company’s assets are actually a source of “great comfort.”

Saylor, who previously branded cash a “melting ice cube,” anticipates more Wall Street names will buy BTC at current prices, describing it as “a great entry point for institutional investors.”

Bitcoin AUM falls 9.5% to record largest monthly pullback since July

November 28, 2021 Coin Telegraph

Asset Management

The Bitcoin assets under management (AUM) market fell 9.5% to $48.7 billion in November while altcoin-based crypto funds such as Ether saw their AUM rise 5.4% to $16.6 billion.

While Bitcoin’s (BTC) position as a viable hedge against fiat inflation continues to attract investors, new data reflects a change in sentiment as Ethereum (ETH) and other cryptocurrency products pick up steam against falling Bitcoin assets under management (AUM).

The Bitcoin AUM market fell 9.5% to $48.7 billion in November, marking the year’s largest month-on-month pullback since July, according to a CryptoCompare report. On the other hand, altcoin-based crypto funds such as ETH saw their AUM rise 5.4% to $16.6 billion.

Monthly AUM of aggregated products. Source - CryptoCompare

As shown in the above graph, the total AUM across all digital asset investment products has fallen 5.5% to $70.0 billion, which coincides with the ongoing bear market ever since Bitcoin achieved an all-time high of above $65,000.

As a result of the 9.5% fall, the Bitcoin AUM market represents 70.6% of the total AUM share. Ethereum’s AUM, however, rose 5.4% to $16.6 billion while AUMs representing other crypto assets were up by $2.6 billion.

AUM by asset type. Source - CryptoCompare

Out of the total AUM offerings, Grayscale products amount to 76.8% of the AUM market. The Grayscale-dominated trust products fell by 6.8% to $54.5 billion. Other prominent players include XBT Provider ($5.0bn, 7.2% of total) and 21Shares ($2.5bn, 3.6% of total), evidenced by the graph below:

According to the report, weekly flows into Bitcoin-based products in November averaged $94.4 million. Out of the other $67.8 million, Ethereum-based products contributed to roughly $24.4 million, while Cardano- and Tron-based products amounted to $10.7 million and $10.5 million respectively.

American finserv giant Morgan Stanley reported increased their exposure to Bitcoin through purchases of shares of Grayscale Bitcoin Trust.

As Cointelegraph reported, Morgan Stanley’s recent filing with the United States Securities and Exchange Commission (SEC) highlighted a 63% increase in Grayscale Bitcoin Trust (GBTC) holding.

Sporting a market price of nearly $45, Morgan Stanley’s overall Bitcoin-centered portfolio surpasses $300 million, primarily aimed at BTC exposure without direct crypto investments

Digital Asset Holdings