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Economist Explains Bitcoin’s Untapped Potential for Central Bank Reserves

Economist Explains Bitcoin’s Untapped Potential for Central Bank ReservesAn economist has argued that bitcoin is a reserve asset similar to gold, noting that some central banks might consider adding it to their reserves. Economist Makes Bold Case: Bitcoin Could Protect Central Banks Like Gold The Bitcoin Policy Institute (BPI), a non-profit think tank, published a paper last week by economist Matthew Ferranti titled […]

Stablecoin Market Grew by $555 Million in October – Which Tokens Are Leading the Pack?

Wazirx Begins INR Withdrawal Phase 1: Users Can Withdraw Up to 33%

Wazirx Begins INR Withdrawal Phase 1: Users Can Withdraw Up to 33%Indian crypto exchange Wazirx has initiated the first phase of INR withdrawals, permitting eligible users to withdraw up to 33% of their INR balances. Co-founder Nischal Shetty noted that the timeline for the second phase remains uncertain due to several internal factors that need to be addressed. Wazirx Launches Phase 1 of INR Withdrawals Indian […]

Stablecoin Market Grew by $555 Million in October – Which Tokens Are Leading the Pack?

Blackrock Dethrones Grayscale Becoming World’s Largest Digital Asset Manager 

Blackrock Dethrones Grayscale Becoming World’s Largest Digital Asset Manager Five days ago, Arkham Intelligence revealed that Blackrock, the world’s largest fund manager, was on the brink of overtaking Grayscale in onchain asset value. As of Aug. 21, Blackrock has officially surpassed Grayscale, securing its position as the top digital asset manager in terms of onchain reserves. World’s Largest Fund Manager Just Surpassed Grayscale in […]

Stablecoin Market Grew by $555 Million in October – Which Tokens Are Leading the Pack?

US Ethereum ETFs Hold $10.24B in Reserves Following $106M in Inflows

US Ethereum ETFs Hold .24B in Reserves Following 6M in InflowsBased on the recent data, the nine newly introduced ethereum exchange-traded funds (ETFs) saw $106.78 million in inflows on Tuesday. Blackrock took the lead with $266.55 million in trading volume throughout the day. Blackrock Dominates Inflows as Nearly Half a Billion Exits ETHE The newly introduced ethereum ETFs performed admirably on Tuesday, registering their first […]

Stablecoin Market Grew by $555 Million in October – Which Tokens Are Leading the Pack?

Fifth Day of Outflows Hits US Bitcoin ETFs With $139 Million in Losses

Fifth Day of Outflows Hits US Bitcoin ETFs With 9 Million in LossesU.S. spot bitcoin exchange-traded funds (ETFs) experienced their fifth consecutive day of outflows on Thursday, losing $139.88 million. Grayscale’s Bitcoin Trust (GBTC) led the decline with a $53 million reduction, followed closely by Fidelity’s (FBTC) $51 million loss. U.S. Bitcoin ETFs Experience Sustained Outflows The 11 spot bitcoin ETFs reported $1.16 billion in trade volume […]

Stablecoin Market Grew by $555 Million in October – Which Tokens Are Leading the Pack?

Bitcoin Scarcity Grows as Miner and Exchange Reserves Drop by 183,253 BTC Since January 

Bitcoin Scarcity Grows as Miner and Exchange Reserves Drop by 183,253 BTC Since January Over the past 158 days, starting from the beginning of the year, the quantity of bitcoin held by exchanges and miners has decreased by 183,253 BTC, valued at nearly $13 billion. Roughly 90.95% of this bitcoin withdrawal originated from cryptocurrency exchange reserves. Exchanges and Miners See Massive Reductions From Jan. 1 to June 7, 2024, […]

Stablecoin Market Grew by $555 Million in October – Which Tokens Are Leading the Pack?

Tether Amplifies Bitcoin Holdings With Strategic 8,888.88 BTC Addition

Tether Amplifies Bitcoin Holdings With Strategic 8,888.88 BTC AdditionOnchain data reveals the stablecoin giant Tether has once again bolstered its bitcoin reserves, making an addition of 8,888.88 bitcoins to its wallet as of March 31. Tether’s Bech32 address now ranks as the seventh-largest holder of bitcoin by volume. Tether’s Latest Acquisition Puts Stash at 75,354 Bitcoin Though Tether has not officially confirmed its […]

Stablecoin Market Grew by $555 Million in October – Which Tokens Are Leading the Pack?

Tether attestation shows cash and cash equivalents of 86% as loans decline

Tether’s newest reserve attestation shows the highest-ever percentage of cash equivalents, with most reserves consisting of U.S. T-bills and repurchase agreements.

The reserves for stablecoin issuer Tether contained approximately 86% cash and cash equivalents as of September 30, according to a new attestation report from accounting firm BDO. This is the highest percentage of cash and cash equivalents that have ever made up Tether’s reserves.

According to the report, $56.6 billion worth of reserves are in U.S. Treasury bills with a maturity date of less than 90 days. Meanwhile, another $8.8 billion was held in reverse repurchase agreements involving these bills. There was $8.2 billion in U.S. Money Market funds pegged to $1 per note and $292 million in cash and bank deposits. Another $65 million is held in the form of treasury bills from countries other than the U.S.. The total amount of cash and cash equivalents is approximately $74 billion, which is 85.73% of Tether’s total reserves of $86.4 billion.

The report also shows that Tether has reduced its reliance on secured loans as a means of raising revenue. Secured loans now make up only $5.1 billion worth of USDT reserves, which is approximately $336 million less than what the previous report showed. Tether was criticized in September for continuing to make secured loans after previously stating that it would wind these down.

Related: Brazil’s USDT adoption soars in 2023, makes up 80% of all crypto transactions

In an accompanying blog post, Tether forecast a further reduction in loans by the close of day on October 31. An additional $1.1 billion in loans will be wound down by this date, at which point only $900 million in loans will remain as part of reserves.

BDO publishes attestations of Tether’s reserves every quarter, with a one-month lag between the end of the quarter and the publication of the report. Tether claims that it is working on a system to provide real-time audit reports in 2024.

Stablecoin Market Grew by $555 Million in October – Which Tokens Are Leading the Pack?

Canadian regulatory body clarifies stablecoin rules for exchanges and issuers

The umbrella organization for Canada's securities regulators has set out conditions for the trading and issuance of stablecoins.

The Canadian Securities Administrators (CSA) has provided guidance to exchanges and cryptocurrency issuers on its interim approach to what it calls value-referenced crypto assets, with a particular focus on stablecoins.

On Oct. 5, the umbrella organization of Canada’s provincial and territorial securities regulators published a clarification saying it may allow trading of certain cryptocurrencies that reference the value of a single fiat currency, subject to terms and conditions.

In February, the CSA reaffirmed its view that stablecoins “may constitute securities and/or derivatives” which Canadian crypto exchanges are prohibited from trading.

However, if issuers maintain an appropriate reserve of assets with a qualified custodian and crypto exchanges offering stablecoins make “certain information related to governance, operations, and reserve of assets publicly available,” then the CSA could allow for those assets to be traded.

CSA Chair and Chair and CEO of the Alberta Securities Commission, Stan Magidson, said in a statement:

“This interim framework, which we will build upon in the future, sets certain standards to help ensure that investors receive the information they need about the assets they are purchasing, including the risks associated with them.”

The CSA cautioned that fiat-backed crypto assets satisfying the terms are still risky and should not be viewed as endorsed or risk-free.

Related: Canadian crypto ownership declines amid tight regulations, falling prices

In August, Cointelegraph reported that regulatory clarity in Canada has generated greater interest in crypto from institutions.

In July, the CSA issued guidance on staking stating that it was allowed but lending opportunities are limited and the proportion of “illiquid” assets is restricted.

Stablecoin market capitalization has been in decline over the past 18 months or so and is currently at $123 billion representing around 11% of the total crypto market cap.

Magazine: Should you ‘orange pill’ children? The case for Bitcoin kids books

Stablecoin Market Grew by $555 Million in October – Which Tokens Are Leading the Pack?

Costo sells out of gold bars, but is it a better investment than Bitcoin?

Gold bars recently sold out at Costco, reflecting investors’ souring mood about the economy. Is there a silver lining for Bitcoin?

Costco has made headlines this week after it rapidly sold out of gold bars. In times of economic uncertainty and rising inflation, it's no surprise that investors are turning to traditional safe-haven assets like gold. The question is whether gold’s performance will eventually catapult its price above $2,050, a level last seen in early May.

In the past 12 months, the price of gold has surged by an impressive 12%. This rally has been partially fueled by the Federal Reserve's efforts to combat inflation by maintaining higher interest rates, a move that benefits scarce assets like gold. While gold's performance is commendable, it's essential to put it into perspective.

Gold (yellow) vs. Bitcoin (orange), S&P 500 (green) and WTI oil (black), last 12 months. Source: TradingView

Over the same period, gold's returns have roughly matched those of the S&P 500, which saw a gain of 15.4%, and WTI oil, which increased by 12%. However, these gains pale in comparison to Bitcoin's staggering 39.5% rise. Still, it's important to note that gold's lower volatility at 12% makes it an attractive choice for investors looking to manage risk.

Risk-reward scenarios favor gold

One of gold's strongest selling points is its reliability as a store of value during times of crisis and uncertainty. Gold's status as the world's largest tradable asset, valued at over $12 trillion, positions it as the primary candidate to benefit from capital inflows whenever investors exit traditional markets like stocks and real estate.

Gold (yellow) vs. Bitcoin (orange), S&P 500 (green) and WTI oil (black), Feb/Mar 2020. Source: TradingView

For example, at the height of the COVID-19 pandemic. In the 30 days leading up to March 24, 2020, gold only dipped by 2.2%.

According to data from Gold.org, central banks have been net buyers of gold for the second consecutive month, adding 55 tons to their reserves, with notable purchases by China, Poland and Turkey.

Bloomberg reported that Russia is planning to bolster its gold reserves by an additional $433 million to shield its economy from the volatility of commodity markets, especially in the oil and gas industries.

200 years of gold production. Source: Visual Capitalist

Taking a closer look at production figures, Visual Capitalist estimates that approximately 3,100 tonnes of gold were produced in 2022, with Russia and China accounting for 650 tonnes of this total. The World Gold Council also predicted that if gold prices continue to rise, total production could reach a record high of 3,300 tonnes in 2023.

One crucial metric to consider when evaluating gold's investment potential is its stock-to-flow ratio, which measures the production of a commodity relative to the total quantity in existence.

Related: Bitcoin price holds steady as S&P 500 plunges to 110-day low

Gold's stock-to-flow has remained stable at around 67 for the past 12 years. In contrast, Bitcoin has experienced three scheduled halvings, effectively reducing its issuance, and currently boasts a stock-to-flow ratio of 59. This suggests that Bitcoin has a lower equivalent inflation rate compared to the precious metal.

Bitcoin can outperform gold even with lower inflows

Bitcoin’s performance could surpass gold’s as the U.S. government approaches a shutdown due to reaching the debt limit, causing investors to seek alternative scarce assets. Bitcoin’s $500 billion market capitalization makes it easier for the price to jump even if its inflow is much smaller. Additionally, central banks could be compelled to sell their gold holdings to cover expenses, further boosting Bitcoin's appeal.

There's also the possibility of new gold discoveries. While gold remains a stalwart in the world of safe-haven assets, Bitcoin's impressive gains and lower equivalent inflation rate make it a strong contender for investors seeking alternative stores of value. Despite this, the ongoing economic uncertainty and the Federal Reserve's monetary policies will continue to benefit both assets.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Stablecoin Market Grew by $555 Million in October – Which Tokens Are Leading the Pack?