Wed | 31.03.2021
FX & Currency
In this cryptocurrency era, things are moving faster than ever, so you'd better keep one eye constantly on the market changes. Find out what are the top performance leaders in the past 5 days.
TESLA NOW ACCEPTS BITCOIN FROM U.S. CUSTOMERS
Elon Musk has announced that Tesla cars can now be purchased using Bitcoin (BTC). The electric car company’s CEO and “Technoking” said the firm would operate Bitcoin nodes directly, and would hold on to the Bitcoin it accumulates without converting it to fiat.
Tesla first signaled its intention to start accepting Bitcoin for products in early February, following its purchase of $1.5 billion worth of the digital asset, an SEC filing showed. The option to buy a Tesla using BTC will only be extended to U.S-based customers for the time being.
Elon Musk’s insistence that the Bitcoin earned through the sale of the firm’s vehicles won’t be converted to fiat suggests it is not just being utilized as a transactional medium, but also an investment tool.
INSTITUTIONAL MANAGERS HOLD A RECORD $57B WORTH OF CRYPTO
Cryptocurrency assets held by institutional investment managers topped $57 billion last week, marking a new all-time high and underscoring the rapid adoption of digital assets underway among institutions.
For the week ended March 19, digital asset manager CoinShares revealed that net inflows into digital asset investment products rose by $99 million. Contributing to that increase, Grayscale generated $9.1 million of inflows, bringing its year-to-date total to $2.373 billion. Grayscale is by far the world’s largest digital asset manager, with $44.2 billion in assets under management as of Monday.
Flows into CoinShares itself, however, declined by $25.9 million from the previous week, with year-to-date flows down by $93 million.
JPMORGAN'S ‘CRYPTOCURRENCY EXPOSURE BASKET’
Just weeks after JPMorgan Chase published a report warning that traditional financial companies are at risk of falling behind in digital finance, the largest U.S. bank is looking to issue debt linked to cryptocurrency-focused companies.
J.P. Morgan Cryptocurrency Exposure Basket, the incoming debt instrument, is long on MicroStrategy (20%) Square (18%), Riot Blockchain (15%) and chipmaker NVIDIA (15%) with positions in 11 companies total. It does not invest directly in cryptos, according to the prospectus.
The basket companies “operate businesses that we believe to be, directly or indirectly, related to cryptocurrencies or other digital assets, including as a result of bitcoin (BTC, -0.03%) holdings, cryptocurrency technology products, cryptocurrency mining products, digital payments or bitcoin trading,” JPMorgan said in the prospectus.
MICROSOFT IS ASKING XBOX USERS ABOUT BITCOIN
Tech giant Microsoft seems to be considering introducing Bitcoin (BTC) payments to its Xbox gaming console online store.
According to a Sunday Reddit post on r/XboxSeriesX, Microsoft has put out a survey asking Xbox users about their preferred payment options at its online store.
“Which of these other payment methods would you like to use on Xbox?,” the purported survey asks, listing Bitcoin as one of the potential payment methods. The same photo has also been circulating across several other subreddits including r/Ethtrader and r/Bitcoin.
HOWARD MARKS CHANGES HIS MIND ABOUT BITCOIN
Howard Marks, co-founder and co-chairman of Oaktree Capital Management, talked about bitcoin during an interview with CNBC last week.
As institutional investors become increasingly interested in bitcoin and major companies have announced their investments in the cryptocurrency, Marks said: “I’m opening my mind on bitcoin. I was ‘knee-jerk’ skeptical.” He clarified:
While bitcoin doesn’t have an intrinsic value, the same can be said of the dollar and many, many other things that have value like paintings and diamonds. I’ve been more sensitized to the supply-demand case.
The Oaktree Capital founder similarly told The Korea Economic Daily on March 15 that back in 2017, when bitcoin rose in popularity, he was “very dismissive of it because it doesn’t have intrinsic value.” He added that he has been studying and found that “people make the case for bitcoin … on the basis of supply and demand.”
This article is provided by our Cryptocurrency Partner, Bitcoin Romania.