March 2024

by | Mar 12, 2024

bitcoin

Welcome back to the COSIMO Verbatim newsletter! After a brief hiatus, we’re back with the latest industry news, some portfolio updates, and a sneak peek into our upcoming mini podcast series.

March Insights

How Much Cheaper Will Dencun Really Make the Ethereum Ecosystem?

Bitcoin ETFs Could Be Added to State Retirement Portfolios in Arizona

OpenSea’s NFT Partnership with Coachella

Wyoming passes law to give DAOs a nonprofit legal framework

Crypto Dollars Helped Lift U.S. Politicians to Victory in Congressional Primaries

The Whirlwind Ride of Bitcoin ETFs – And We’re Just Two Months In…

From its cypherpunk roots to a digitally-scarce store of value, Bitcoin has had a crazy journey towards maturity, most recently coming out of a bear market looking as strong as ever. It has evolved through highs and lows and now has its own spot ETFs and regulated derivatives markets. Decreased volatility, institutional adoption and historical halving cycles remind us that today’s Bitcoin holders differ significantly from those in 2010.

Record-Breaking Trading Volume

The approval of Bitcoin ETFs on January 11th marked a turning point in the cryptocurrency space. Around two months since their launch, these ETFs have experienced over $9 billion in total flows. On March 5th, Bitcoin ETFs shattered records, with a single-day trading volume surpassing $10 billion. One Bloomberg Analyst commented that the numbers were simply “bananas” for ETFs not even two months old. After hitting an all-time high of $69,000 last week Bitcoin’s numbers took a tumble but by Monday morning it had come back swinging, climbing to $72,000.

Halving Anticipation Amid Challenges

Excitement for the upcoming Bitcoin halving in April continues to grow, which has been a key driver for price increases historically. In the past, block rewards have introduced potential sell pressure to the market, but the embrace of Bitcoin ETFs may effectively alleviate that pressure. With the potential to restructure the market dynamics of Bitcoin by introducing a stable and fresh demand source, they contribute positively to its price. However, challenges can also arise as high demand necessitates purchasing thousands of Bitcoin per day, exacerbating supply issues. On top of that, major wealth management platforms are yet to enter and start offering these products to their clients. With a newfound source of institutional demand and the halving cutting supply emissions in half, exciting years are ahead for Bitcoin and digital assets.

Promising Future Despite Challenges

Despite uncertainties, the positive trend in Bitcoin ETFs is expected to persist. Growing anticipation for broader adoption by U.S. wealth managers and Registered Investment Advisors (RIAs) reflects potential widespread adoption. The success of the first two months certainly hints at a promising future, exceeding expectations with continued market evolution. Investors eagerly await further updates in the world of Crypto ETFs and other funds, with other big players anticipated to enter the market very soon…

COSIMO X

Portfolio Updates

Archax, the only FCA-regulated digital asset platform, unveiled its Stablecoin Yield Service, which lets users convert stablecoins into regulated Money Market Funds for potential yields. CEO Graham Rodford emphasizes Blockchain’s transformative impact on traditional financial markets. More here.

Dusk Network, a privacy-oriented blockchain platform for financial applications, successfully deployed its incentivized testnet, ITN. ITN is a huge step towards mainnet, giving Dusk the chance to stress test the network before their upcoming mainnet release.

Hedera, a leading Proof of Stake (POS) blockchain platform, has entered into a five-year partnership with the Saudi Ministry of Investment (MISA). The collaboration, valued at $250 million, will help companies develop web3 technologies in the region. More here.

coffee

Join us for coffee…

We wanted to go back to the basics and introduce a new audience to the complex landscape of Blockchain.

So we decided to launch our own mini series that will break down Blockchain and other vast concepts for anyone who doesn’t fully understand the space.

Every week we will be having laid back, casual, coffee-in-hand chats about concepts like Proof of Stake, Tokenization and Smart Contracts.

We’ll also be discussing hot industry topics and be joined by some exclusive guests.

15 minutes long and completely free – come and join us for a Coffee with COSIMO. Stay tuned…