The Depository Trust & Clearing Corporation (DTCC) has announced the successful completion of its Smart NAV pilot, leveraging Chainlink’s technology to enhance its Mutual Fund Profile Service I (MFPS I). The initiative aims to bring trusted data to blockchain ecosystems, facilitating more efficient data dissemination and consumption. Chainlink Boosts DTCC’s Smart NAV Pilot DTCC’s Smart […]
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Avalanche Rising: Will The Wine Capital Fund Turbocharge Gains Above $40?
AVAX, the native currency of Avalanche, a high throughput blockchain, is rising, adding an impressive 9% from May 15 lows. Buyers are taking over after weeks of lower lows. While the expansion of Bitcoin prices could explain these gains, there could be more.
Fine Wine Investment Fund Tokenized On Avalanche
Avalanche has announced tokenizing a fine wine investment fund, a move that would see the platform ride on the wave of tokenization. In a statement, Avalanche said the Wine Capital Fund has been tokenized by Oasis Pro and listed on ATS via the Avalanche C-Chain, where smart contracts are deployed.
The ATS is Oasis Pro’s trading platform registered by the United States Securities and Exchange Commission (SEC). Meanwhile, the capital fund is a “closed-end investment vehicle.” Specifically, it specializes in fine wines and is overseen by WIVX Asset Management.
The decision to tokenize on Avalanche is a step forward in creating a tokenized asset ecosystem, mirroring progress made in Ethereum, among other chains.
By making inroads into the fine wines market, estimated to be worth over 0 billion, the platform aims to democratize access, making it available to more investors. Analysts claim tokenization removes barriers common in traditional finance. Notably, Avalanche will play a huge role since the network is scalable, boosting a high throughput with sub-second finality.
The number of real-world assets (RWA) being onboarded is rising. When writing, data from RWA.xyz reveals that over .6 billion worth of private credit has been tokenized. At the same time, months after announcing the deployment of the BUIDL fund on Ethereum, it manages over 1 million of tokenized United States treasuries.
Efforts On Meme Coins, DeFi: Will AVAX Break ?
Avalanche is not only making progress in tokenization; earlier, they announced efforts to encourage meme coin activity on-chain. To do this, the Avalanche Foundation launched Memecoin Rush, a million liquidity mining incentive program.
The model follows the Avalanche Rush program. The number of decentralized finance (DeFi) solutions deploying on the high throughput chain rapidly grew through this program.
As of mid-May 2024, DeFiLlama data shows that Avalanche DeFi protocols manage over 5 million. The number has shrunk by over 90% since November 2021, at over .9 billion.
AVAX prices are stable at spot rates. However, with the coin finding support at and printing a triple bottom, the path of least resistance appears northward toward or higher.
Blackrock’s BUIDL Fund Overtakes Franklin Templeton to Become Largest RWA Tokenized Offering
Based on the most recent figures, Blackrock’s USD Institutional Digital Liquidity Fund, also known as BUIDL, has expanded to 1.76 million, overtaking Franklin Templeton’s onchain investment vehicle, BENJI, as the largest real-world asset (RWA) tokenized offering. Blackrock’s Digital Fund Surpasses BENJI as Leader in Tokenized Treasury Offerings Blackrock’s BUIDL has now eclipsed all other tokenized […]
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GBTC Reserves Dip Below 300,000 BTC Amidst 3 Weeks of Crypto Fund Outflows
Grayscale’s Bitcoin Trust (GBTC) has witnessed a significant reduction in assets under management, with the trust’s holdings now falling below the 300,000 BTC mark, a key milestone. Additionally, the latest report on digital asset fund flows from Coinshares shows that bitcoin and ether exchange-traded products (ETPs) have seen withdrawals for three consecutive weeks. Heavy Withdrawals […]
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Pantera Capital Targets $1 Billion for New ‘All-in-One’ Blockchain Fund Set for 2025 Launch
Pantera Capital is planning to launch Pantera Fund V in April 2025, aiming to raise over billion for investment in a diverse range of blockchain-based assets, representing a consolidation of its investment strategy into an ‘all-in-one’ fund. The new fund will include startup equity, early-stage tokens, and liquid tokens among its assets, and seeks […]
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BlackRock’s Tokenized Fund News Sends Hedera (HBAR) Soaring 100%, The Reason May Surprise You
In a surprising turn of events, the native token of the decentralized ledger platform Hedera, HBAR, experienced a significant price surge of over 100% during the early hours of Tuesday. Starting from a low of .0875, HBAR skyrocketed to reach the .1821 mark by Wednesday.
The sudden surge was triggered by the news of BlackRock’s tokenized fund, BUIDL, which generated high expectations among HBAR investors regarding a potential collaboration between the prominent asset manager and the Hedera protocol.
Not Directly Connected To Hedera?
Launched by BlackRock in March 2024, BUIDL operates as a tokenized fund on the Ethereum blockchain, providing US dollar yields through tokenization.
Initially, an announcement led to confusion among investors, who mistakenly believed that BlackRock would directly tokenize the fund on the Hedera network. This misunderstanding triggered a significant surge in the HBAR price.
Upon closer examination of the announcement, it became clear that BlackRock and Hedera had no direct connection, although the initial reaction to the news was noteworthy.
Crypto analysts, who use the pseudonym “CrediBull” on social media site X (formerly Twitter), shed light on the situation, emphasizing that explicit permission from BlackRock was unnecessary to list tokenized versions of their funds.
It was not a deliberate decision by BlackRock to tokenize on Hedera; rather, an existing platform on the network took the liberty of tokenizing one of BlackRock’s funds. However, for the analyst, the fact that a platform on Hedera was among the first to tokenize a BlackRock fund reflects the platform’s leadership in the space.
Analyst Clarifies Misconception
Further examination reveals that Archax, the company behind the tokenized BlackRock fund on Hedera, is a portfolio company of ABRDN Investments, the largest asset manager in the UK, with approximately 0 billion in assets under management (AUM).
Additionally, CrediBull emphasizes that BlackRock happens to be the fourth-largest shareholder of ABRDN. Notably, around ten months ago, Archax tokenized one of ABRDN’s money market funds, preceding their launch of the BlackRock fund.
An interview by the Head of Digital Assets at ABRDN clarifies their involvement in the tokenization process on Archax. A “distribution agreement” was signed permitting the tokenization to proceed. If a similar agreement were reached with BlackRock, it would imply the asset manager’s endorsement of the product.
Ultimately, the interview with the head of digital assets at ABRDN underscores the fact that significant players are utilizing and contributing to the growth of Hedera behind the scenes.
Following the clarification of the situation, the price of HBAR has retraced to .1199. Nevertheless, it remains up 8% over the past 24 hours and has recorded an impressive gain of nearly 60% in the past seven days.
CoinGecko data highlights a substantial surge in HBAR’s trading volume, which has increased by over 1,100% in the past few days. This surge in trading volume indicates the widespread confusion sparked by the initial news announcement.
Featured image from Shutterstock, chart from TradingView.com
China’s Largest Fund Managers Eye Spot Bitcoin ETFs in Hong Kong’s Financial Markets
Two of China’s largest fund management firms have recently been reported to be filing applications for spot bitcoin exchange-traded funds (ETFs), according to regional sources on Monday. Harvest Global Investments and Southern Fund are seeking approval from Hong Kong’s Securities and Futures Commission (SFC), aiming to obtain authorization to introduce spot bitcoin ETFs. China’s Investment […]
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Grayscale Removes Cardano From Its Crypto Large Cap Fund
Grayscale Investments has removed cardano from its Digital Large Cap Fund. The crypto fund now holds bitcoin, ethereum, solana, XRP, and avalanche. The crypto asset manager also adjusted the holdings of its Smart Contract Platform Ex-Ethereum Fund. Cardano Removed From Grayscale’s Large Cap Fund Grayscale Investments, the world’s largest crypto asset manager, announced Thursday that […]
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Cardano Price Tumbles As Grayscale Sells All ADA From Large Cap Fund
The Cardano (ADA) price is experiencing a notable decrease, dropping by 12% since the start of the week, with a 2.6% dip recorded today alone. Despite this, with a market capitalization of .27 billion, ADA maintains its position as the 9th largest cryptocurrency.
This recent downturn comes amidst a broader crypto market experiencing mostly sideways to downward movement, with ADA recording more significant losses compared to its peers like ETH, which is down by 7.4%, BNB by 6.4%, Solana by 6.3%, and XRP by 6.1%.
Grayscale Dumps Cardano From GDLC
A pivotal factor behind Cardano’s sharper decline could be linked to the recent liquidation of all ADA holdings by the Grayscale Digital Large Cap Fund (GDLC). The fund, which currently boasts assets under management (AUM) worth 9 million, had Cardano constituting 1.62% of its portfolio on January 4, which amounts to approximately .4 million.
On Thursday, Grayscale Investments announced the decision as part of its first quarter 2024 review. According to the official press release, the adjustment to GDLC’s portfolio entailed the selling of Cardano and reallocating the cash proceeds to existing Fund Components, proportional to their weightings.
This rebalancing led to the removal of ADA from GDLC’s portfolio. The final composition of the fund as of April 3, 2024, includes Bitcoin (70.96%), Ethereum (21.84%), Solana (4.52%), XRP (1.73%) and Avalanche (0.95%).
The press release detailed, “In accordance with the CoinDesk Large Cap Select Index methodology, Grayscale has adjusted GDLC’s portfolio by selling Cardano (ADA), and using the cash proceeds to purchase existing Fund Components in proportion to their respective weightings. As a result of the rebalancing, Cardano (ADA) has been removed from GDLC.”
Grayscale also highlighted the quarterly evaluations of the GDLC, DEFG, and GSCPxE Fund compositions, aimed at updating existing Fund Components or including new ones based on index methodologies provided by the Index Provider. This practice ensures that the funds’ holdings reflect the most current market trends and asset performance.
Notably, the Grayscale Smart Contract Platform Ex-Ethereum Fund still contains Cardano. The cryptocurrency is the second-largest position after Solana (58.41%), with a weighting of 14.56%.
In response to these developments, Charles Hoskinson, the founder of Cardano, offered a terse commentary via X, stating, “Wall Street give; Wall Street take.”
This succinct remark encapsulates the volatile nature of crypto investments and the significant impact that major financial players like Grayscale can have on the market dynamics of digital assets.
Wall Street give; Wall Street take https://t.co/dkyrhHW4WS
— Charles Hoskinson (@IOHK_Charles) April 5, 2024
At press time, ADA was trading at .57. In the short term, the 100-day EMA at .58 is the key resistance that ADA needs to overcome in order to develop new bullish momentum. The 100-day EMA has served as strong support three times since mid-January. After the recent dip below this indicator, ADA is struggling to reclaim it. In the medium term, the bulls need to break above the .68 level.
Paradigm Tries Again at Crypto: Seeks to Raise at Least $750 Million to Launch New Fund
Paradigm, one of the largest venture capital firms in the crypto space, is gearing up to reenter the crypto VC arena. According to reports, the firm is in talks with third parties to launch a 0 – 0 million crypto-focused investment fund, the largest since its previous .5 billion venture fund launched in 2021. Paradigm […]
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