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Survey: 4 in 5 Institutional Investors Agree Crypto Has Important Role in Global Financial Industry
An institutional investor survey conducted by digital asset bank Sygnum indicates a shift from skepticism to advocacy, “with over 80% now agreeing that crypto has an important role to play in the global financial industry,” said the bank’s digital asset research manager. “It’s now truly becoming a trusted gateway that is rapidly transforming the economic landscape.”
Sygnum’s Institutional Investor Survey
Digital asset bank Sygnum launched its inaugural institutional crypto market report last week. The report, titled “Future Finance 23,” features an institutional investor survey the bank conducted at the beginning of Q4 with more than 150 respondents possessing an average of over 10 years of investment experience. They included Sygnum’s institutional client base and equity investors, banks, hedge funds, multi and single-family offices, foundations, and asset managers.
According to the survey, 87% of respondents invest in “blockchain protocol tokens like bitcoin, ethereum, and solana (Layer 1 protocols).” In addition, 57% of respondents plan to increase their crypto asset allocation in the future.
Regarding why they invest in crypto, the report notes that 66% of respondents said it’s to “gain exposure to the crypto megatrend” while 46% cited portfolio diversification as their investment driver. Sygnum described:
This illustrates ongoing institutional adoption and growth of hybrid traditional-crypto portfolios, as well as a deepening knowledge of blockchain technologies.
Moreover, among respondents who plan to maintain or increase their crypto asset allocations, 62% expect higher future returns.
Meanwhile, 37% of investors “consider crypto a superior investment than traditional assets, demonstrating its attractiveness as a traditional-market hedge,” the report details. “Direct token investments remain the top choice for all respondents, indicating a clear preference for investment via direct ownership of tokens and generating yields through staking. This preference might shift as financial products continue to evolve and diversify.”
Sygnum Digital Asset Research Manager Lucas Schweiger, the report author, commented:
As the crypto industry has evolved, many institutional investors have also evolved from sceptics to evangelists, with over 80% now agreeing that crypto has an important role to play in the global financial industry. It’s now truly becoming a trusted gateway that is rapidly transforming the economic landscape.
Fabian Dori, Chief Asset Management Officer and Sygnum Group Deputy CEO, opined: “Over 85% of institutional crypto investors in our study believe that being regulated is essential to building trust. This is further confirmation that Sygnum’s founding strategy to be fully regulated from day one in all our regions was the right one.”
What do you think about this institutional investor survey? Let us know in the comments section below.
Expert Market Analysts Agree A Spot Bitcoin ETF Is A Matter Of When, Not If
The crypto community has been kept at the edge of its seat as the SEC decided to postpone a decision on the 7 Spot Bitcoin ETFs filed over the last few months. During such a pensive time, market analysts have predicted the SEC authorizing a Spot Bitcoin ETF while the former SEC Chairman foresees a losing battle for the regulator.
JP Morgan Analysts Foresee ETFs Approval
The United States Securities and Exchange Commission (SEC) and Grayscale, an American digital currency investing and crypto asset management company have been embroiled in a legal battle since June 2022.
The SEC had previously rejected Grayscale’s request to convert its GBTC vehicle to an ETF. The digital currency investment company had responded to the rejection with a lawsuit, suing the SEC and filing a petition for a review by the United States Court of Appeal for the District of Columbia Circuit.
The legal proceedings have not been favorable with the SEC, and analysts led by Nikolaos Panigirtzoglou from JP Morgan, a New York-based universal bank have predicted the eventual acceptance of Bitcoin ETF applications by the SEC.
The prediction is also largely supported by Grayscale’s victory against the SEC in a recent court ruling that classified the SEC’s denial of Bitcoin ETF applications as unreasonable and without substance, mandating the SEC to reevaluate its decision to deny Grayscale’s Bitcoin ETF application.
While the SEC deliberates on its next move, the regulator has announced that it requires more time to decide on Bitcoin ETF propositions from several companies including WisdomTree and Blackrock. The regulator has also requested a postponement until mid-October.
The JPMorgan analysts believe that the SEC’s delay is a positive sign that Bitcoin ETFs will be approved soon. The analysts have also stated that the SEC would find it difficult to justify their rejection of Bitcoin ETF approval after accepting a previous proposal for future-based Bitcoin ETFs.
The situation places the SEC in a precarious predicament and consequently, JP Morgan analysts have concluded that the SEC is likely to be compelled to approve the pending Bitcoin ETF applications from Grayscale and various asset management companies.
Former SEC Chairman Says “Spot Bitcoin ETF Is Inevitable”
A prominent X (formerly Twitter) influencer, Collin Brown released a post on Monday, 4th September revealing that the former Chairman of the US SEC, Jay Clayton sees an undisputed win for Grayscale in the Bitcoin ETF case.
Brown stated that Clayton foresaw the “inevitable” acceptance of Bitcoin ETF proposals by the SEC and the post highlighted the time the SEC may conclude their decision on Bitcoin ETF applications, ultimately ending the legal feud between the SEC and Grayscale.
“Former SEC Chairman Jay Clayton predicts the approval of a spot Bitcoin ETF is inevitable! The SEC might make the announcement in mid-October, or it could take a bit longer, but progress is on the horizon for crypto enthusiasts,” the post read.
However, the X account was later suspended following the announcement.
In contrast, an ex-SEC Attorney, John Reed Stark declared in an X post that the chances of the SEC approving Bitcoin ETFs are implausible and crypto enthusiasts should not expect any other outcome.
While the crypto community is cheering and hoping for Grayscale’s complete victory over the SEC, investors are preparing for a possible Bitcoin price surge that may follow the SEC’s approval of Bitcoin ETFs.
Economist Lord Jim O’Neill Calls BRICS Currency Idea ‘Ridiculous’ — Says China and India Never Agree on Anything
Lord Jim O’Neill, the British economist credited with coining the acronym BRIC, calls the creation of a common BRICS currency “ridiculous,” emphasizing that the BRICS nations have “never achieved anything since they first started meeting.” He added: “It’s a good job for the West that China and India never agree on anything, because if they did the dominance of the dollar would be a lot more vulnerable.”
Lord Jim O’Neill Slams Common BRICS Currency Idea
British economist Lord Jim O’Neill shared his view on the proposed single BRICS currency in an interview with the Financial Times this week. The BRICS leaders are set to meet at the economic bloc’s 15th summit on Aug. 22-24 in Johannesburg. South Africa is the host of the BRICS summit this year. However, there are mixed reports on whether the creation of a common BRICS currency will be discussed at the summit.
O’Neill, a former Goldman Sachs economist, coined the acronym BRIC over 20 years ago to describe the economic potential of Brazil, Russia, India, and China. South Africa joined the group a few years later, and the acronym was changed to BRICS. O’Neill is now a senior adviser at U.K. think tank Chatham House.
The economist asserted that the BRICS nations had “never achieved anything since they first started meeting” eight years after he created the phrase in a 2001 research note. He believes that a common currency for the BRICS economic bloc would be unfeasible, stating:
It’s just ridiculous … They’re going to create a BRICS central bank? How would you do that? It’s embarrassing, almost.
“Quite what they attempt to achieve beyond powerful symbolism, I don’t know,” he opined.
In June, Lord O’Neill similarly described the idea of a single currency for the BRICS nations as “ridiculous” and “amusing.” He stressed that “China and India never agree on anything,” pointing out that the two countries “can’t even really agree on basic things like a peaceful border.”
U.S. Dollar Could Lose Its Dominance, Lord O’Neill Warns
The British economist also commented on the dominance of the U.S. dollar, emphasizing that the USD’s dominant position in the global financial system is not beneficial for emerging countries. He described:
The dollar’s role is not ideal for the way the world has evolved. You’ve got all these economies who live on this cyclical never-ending twist of whatever the [U.S. Federal Reserve] decides to do in the interests of the U.S.
Some economists have predicted that other currencies, such as the Chinese yuan, the Japanese yen, or the euro, would eventually overtake the U.S. dollar. However, O’Neill cautioned: “None of these things will ever happen until those countries want to have their currencies used by people in other parts of the world.”
The former Goldman economist noted:
It’s a good job for the West that China and India never agree on anything, because if they did the dominance of the dollar would be a lot more vulnerable.
In June, Lord O’Neill also warned that the U.S. dollar will lose its dominant status as the world’s reserve currency. He expects the Chinese yuan and possibly the Indian rupee to become “much more important currencies for the world.” He stressed: “I do think if China and India could ever strongly agree on things as the two biggest countries in the emerging world … then that would probably hasten the end of the dollar’s dominance.”
Do you agree with economist Lord Jim O’Neill about the proposed common BRICS currency being “ridiculous”? Let us know in the comments section below.
Robert Kennedy Jr and Ron Paul Agree America Doesn’t Have a Free Market
U.S. presidential candidate Robert F. Kennedy Jr. (RFK Jr.) and former U.S. Representative Ron Paul agree that America does not have a free market. Referencing RFK Jr. stating that America has “a crony corporatist system,” Paul stressed: “He’s right!”
RFK Jr. and Ron Paul on Free Market
Former U.S. Representative Ron Paul has expressed his agreement with U.S. presidential candidate Robert F. Kennedy Jr. (RFK Jr.), who recently said that America does not have a free market. Kennedy is a son of former U.S. Attorney General and Senator Robert F. Kennedy and nephew of former U.S. President John F. Kennedy. Paul, an American author, physician, and retired politician, served as a U.S. representative and made three attempts to become the president of the United States. In 2015, he founded the Ron Paul Liberty Report, a platform dedicated to offering insightful opinions and analysis on contemporary issues affecting our lives and finances.
Paul tweeted Saturday: “RFK Jr. recently pointed out that America doesn’t have a free market, but rather a crony corporatist system. He’s right!”
In a follow-up tweet, Paul wrote: “The problem in America is not our ability to voluntarily transact with one another. The problem is the persistent removal of that ability; a removal conducted by the bond between politicians and crony corporations. So called ‘public/private partnerships’ are the problem.” In the Ron Paul Liberty Report episode aired on Friday, the former congressman explained why he believes RFK Jr. “is right.”
On July 26, RFK Jr. said during an interview with Fox News: “We have a system of cushy socialism for the super-rich, and this brutal, savage, merciless capitalism for the poor. And it’s all designed to strip-mine the middle class of this country of all their equity, all of their assets, and move it to the upper echelons.” The presidential candidate tweeted following the interview:
We don’t have free market capitalism in this country. What we have is socialism for the super-rich and brutal capitalism for the poor.
Do you agree with presidential candidate Robert F. Kennedy Jr. and former congressman Ron Paul that America does not have a free market? Let us know in the comments section below.
Binance, CZ Agree to Repatriate US Customer Assets, SEC Secures Court Order
Binance and the U.S. Securities and Exchange Commission (SEC) struck a deal to avoid the freezing of the crypto exchange’s assets in the United States. Under an emergency relief secured by the regulator, Binance agreed to repatriate to the U.S. funds held on behalf of customers of its American subsidiary.
Binance US Users to Be Able to Withdraw Funds as Agreement With SEC Helps Avoid Asset Freeze
The U.S. securities regulator announced on Saturday it has secured an emergency relief in which all entities responsible for operating Binance US and the founder of the world’s largest crypto exchange, Changpeng Zhao (CZ), agreed to repatriate to the U.S. assets held for the benefit of customers of the American unit.
The order from the United States District Court for the District of Columbia helps ensure that Binance US users are permitted to withdraw their assets from the trading platform, the SEC emphasized. Also, the assets kept on Binance US will be protected and remain in the United States, the Commission assured in a press release.
The announcement comes after earlier reports, citing court filings, revealed that Binance and the SEC have reached an agreement on the matter. According to Coindesk and Reuters, only Binance US employees will have access to US customer funds under the deal, and not officials from Binance Holdings, the operator of the global trading platform.
The SEC sought a temporary restraining order for the assets of Binance’s US subsidiary, citing concerns over their safety, after it sued the cryptocurrency exchange for violating US securities laws. The regulator also accused Binance and its founder and chief executive of mishandling of customer funds and misleading investors.
Lawyers representing Binance asked the court to reject the SEC’s request, arguing that an asset freeze would amount to a “death penalty” for the U.S.-based entity. At a hearing in Washington on Tuesday, U.S. District Judge Amy Berman Jackson gave the sides an opportunity to work out a deal ensuring user funds are safe without crippling the crypto business.
Binance Required to Provide SEC With Oversight Over Business Expenses
The latest court order also prohibits defendants BAM Trading Services Inc. and BAM Management US Holdings, Inc. from spending corporate assets other than in the ordinary course of business, the SEC pointed out. The entities have been also required to provide the SEC with oversight over such expenses.
“Given that Changpeng Zhao and Binance have control of the platforms’ customers’ assets and have been able to commingle customer assets or divert customer assets as they please, as we have alleged, these prohibitions are essential to protecting investor assets,” its Director of the Division of Enforcement, Gurbir S. Grewal, was quoted as saying. He added:
Further, we ensured that U.S. customers will be able to withdraw their assets from the platform while we work to resolve the alleged underlying misconduct and hold Zhao and the Binance entities accountable for their alleged securities law violations.
is now required to maintain U.S. customer assets in the United States for the duration of the SEC litigation and to facilitate customer withdrawals. The court order prohibits BAM from transferring assets or funds or providing control over such, to Binance Holdings, CEO Changpeng Zhao, or their affiliates.
What are your thoughts on the agreement between Binance and the SEC? Share them in the comments section below.
Judge Postpones Asset Freeze as Binance US and SEC Agree to Work on Deal
A judge in Washington decided to give Binance US and the Securities and Exchange Commission (SEC) time to work out a deal to avoid the freezing of the exchange’s assets. The two sides are close to an agreement that will protect customer funds without paralyzing the crypto trading platform.
Crypto Exchange Binance US and SEC Near Compromise to Avoid Asset Freeze
Binance US, the United States-based subsidiary of the world’s leading digital asset exchange, Binance, and the U.S. securities regulator, the SEC, have agreed to work on a deal which would spare the court from the need to decide whether to freeze the platform’s assets.
During a hearing on Tuesday, U.S. District Judge Amy Berman Jackson announced that the exchange and the Commission “aren’t that far apart” on a compromise ensuring that billions of U.S. dollars’ worth of customer funds are protected without crippling the crypto business.
The SEC had requested a temporary restraining order for the assets on Binance US for the duration of a lawsuit it filed against the entities operating Binance and Binance US, as well as their founder, Changpeng Zhao, in which they were accused of mishandling users’ funds and misleading investors and regulators.
The exchange’s defense attorneys sought its rejection, alleging that the regulator “manufactured” an “emergency.” At the hearing, they insisted that customer assets are safe, emphasizing that blocking transactions would in fact hurt customers. A lawyer was also quoted by Bloomberg as stating:
We are not willing to accept the death penalty eight days into our case.
The defense team argued that Binance US needs to be able to cover its business expenses, including paying employees and vendors. Judge Jackson agreed that shutting down the exchange “would create significant consequences not only for the company but for the digital asset markets in general.”
Jackson also said that if the two sides strike a deal, she would no longer need to rule on the SEC’s request. “The nitty-gritty of it is better handled by you than by me,” she reasoned while referring them to a magistrate judge in order to finalize the agreement.
The SEC lawsuit alleges that transferred customer funds to an entity controlled by Zhao and that they were later used to buy and sell cryptocurrency. The compromise proposed by the exchange envisages moving crypto assets of U.S. customers to new wallets that would be under the control of U.S.-based officers at Binance.US. The SEC’s proposal is similar, to require Binance to repatriate customer assets to the United States.
Do you think Binance and the SEC will reach an agreement to avoid freezing the exchange’s assets? Tell us in the comments section below.
Biden Says He Won’t Agree to Deal That ‘Protects Wealthy Tax Cheats and Crypto Traders’ as US Default Looms
U.S. President Joe Biden says he will not agree to “a deal that protects wealthy tax cheats and crypto traders while putting food assistance at risk” as the U.S. faces the risk of defaulting on its debt obligations. “I’ve done my part,” Biden stressed, adding that it is now time for the Republicans to move from “their extreme positions, because much of what they’ve already proposed is simply, quite frankly, unacceptable.”
Biden on Budget Negotiations: I’ve Done My Part
U.S. President Joe Biden provided an update on the U.S. debt crisis and budget negotiations during a press conference Saturday following a Group of Seven (G7) meeting in Hiroshima, Japan. He emphasized that he met with all four Congressional leaders before he left to attend the G7 meeting, and they agreed that the only viable path forward is through a bipartisan agreement.
“I’ve done my part. We put forward a proposal that cuts spending by more than a trillion dollars, and on top of the nearly trillion in deficit reduction that I previously proposed through the combination of spending cuts and new revenues,” Biden detailed. “Now it’s time for the other side to move from their extreme positions, because much of what they’ve already proposed is simply, quite frankly, unacceptable.”
The U.S. president listed several things he will not agree to. “I’m not going to agree to a deal that protects, for example, a billion tax break for the oil industry, which made 0 billion last year … while putting healthcare of 21 million Americans at risk by going after Medicaid,” he said. “I’m not going to agree to a deal that protects 0 billion in excess payments for pharmaceutical industries and refusing to count that while cutting over 100,000 schoolteachers and — and assistants’ jobs, 30,000 law enforcement officers’ jobs cut across the — the entire United States of America.” In addition, Biden stressed:
I’m not going to agree to a deal that protects wealthy tax cheats and crypto traders while putting food assistance at risk for nearly a hundred — excuse me — nearly 1 million Americans.
Many people took to social media to react to Biden’s statement about crypto. Some criticized the president for lumping crypto traders and tax cheats in the same category while others reminded him of all the money printing and spending under the Biden administration.
Biden Insists America Will Not Default on Debt
Biden proceeded to address widespread concerns about the U.S. defaulting on its debt obligations. U.S. Treasury Secretary Janet Yellen has said that the Treasury may not be able to pay all of the government’s bills as early as June 1 “if Congress does not raise or suspend the debt limit before that time.” The Congressional Budget Office (CBO) similarly estimated that a U.S. debt default could occur in the first two weeks of June.
The U.S. president stated that all four congressional leaders agree with him that “default is not an option,” emphasizing:
America has never defaulted … on our debt — and it never will.
Many people have warned of serious repercussions if the U.S. defaults on its debt obligations, including a global financial crisis. Top executives of 146 major companies in the U.S. have urged Biden and congressional leaders to act swiftly to prevent a U.S. default, warning of “disastrous consequences.” Moreover, some believe that a U.S. default would risk the dollar’s reserve currency status.
Meanwhile, former President and 2024 presidential candidate Donald Trump has urged Republican lawmakers to let the U.S. default on its debt obligations if the Democrats do not agree to spending cuts. “It’s better than what we’re doing right now because we’re spending money like drunken sailors,” he said.
What do you think about the statements by President Joe Biden? Let us know in the comments section below.
Donald Trump Urges Republicans to Let US Default on Debt if Democrats Don’t Agree to Spending Cuts
Former U.S. President Donald Trump has urged Republican lawmakers to let the U.S. default on its debt obligations if the Democrats do not agree on “massive” spending cuts. Trump, who is also running for president in 2024, stressed that letting the U.S. default is “better than what we’re doing right now because we’re spending money like drunken sailors.”
Donald Trump’s Advice on U.S. Default
Former President and 2024 Republican presidential candidate Donald Trump has advised Republican lawmakers to let the United States default on its debt obligations if Democrats do not agree to spending cuts.
Trump was asked during a televised CNN Town Hall on Wednesday for his advice to Republicans on the possibility of the U.S. defaulting on its debt obligations. He said:
I say to the Republicans out there — congressmen, senators — if they don’t give you massive cuts, you’re going to have to do a default.
The former U.S. president added: “I don’t believe they’re going to do a default because I think the Democrats will absolutely cave, because you don’t want to have that happen.”
Trump, who announced in November last year that he is running for president again in 2024, stressed:
But, it’s better than what we’re doing right now because we’re spending money like drunken sailors.
When pressed to clarify if he believes that “the U.S. should default if the White House does not agree to the spending cuts,” Trump promptly answered:
Well, you might as well do it now, because you’ll do it later. Because we have to save this country. Our country is dying. Our country is being destroyed by stupid people, by very stupid people.
Trump has issued multiple warnings regarding the U.S. economy and the U.S. dollar in recent months. He claimed last month that the USD is crashing and “will soon no longer be the world standard.” He also warned that “we are very close” to World War III.
U.S. Treasury Secretary Janet Yellen has informed lawmakers that the Treasury Department may not be able to pay all of the government’s bills as early as June 1 “if Congress does not raise or suspend the debt limit before that time.”
What do you think about Donald Trump urging Republican lawmakers to let the U.S. default on its debt obligations if Democrats don’t agree to spending cuts? Let us know in the comments section below.
G20 Finance Chiefs Agree Global Policy Responses to Crypto Are Required
The G20 finance ministers and central bank governors have agreed that crypto regulation cannot be confined to one part of the world, said India’s finance minister. “Any action on crypto assets will have to be global,” she stressed, adding that the G20 finance chiefs’ discussion on crypto was “very substantive.”
G20 Finance Chiefs on Crypto Regulation
Indian Finance Minister Nirmala Sitharaman spoke about the G20’s discussion on crypto regulation Thursday during a press briefing that followed the G20 finance ministers and central bank governors meeting, held on the sidelines of the annual Spring Meetings of the International Monetary Fund (IMF) and the World Bank.
Sitharaman and Reserve Bank of India (RBI) Governor Shaktikanta Das co-chaired the meeting, during which the G20 finance ministers and central bank governors discussed matters pertaining to the oversight of cryptocurrencies, along with their related challenges.
The Indian finance minister said:
The discussion on crypto assets highlighted that it couldn’t be confined to one part of the world. Its implications can impact both emerging & developed economies. Thus, global policy responses to crypto-assets are required.
“I am glad to say that there is a greater acceptance among all G20 members that any action on crypto assets will have to be global,” Sitharaman reiterated, adding that “the G20, I think, has responded fairly with alacrity” on the challenges posed by crypto assets.
Responding to a question at the press briefing, the Indian finance minister further shared: “The G20 and its members agree that it’s not going to be possible to have an independent standalone country dealing with the crypto assets and that it has to have a globally coordinated understanding on how to go about regulating crypto assets.”
Referring to the work on a joint “synthesis paper” on crypto by the IMF and the Financial Stability Board (FSB), the Indian finance minister said:
The way in which we are seeing this pan out during our presidency is the IMF’s paper is being discussed. FSB’s paper also will be taken up, and a synthesis paper will be prepared from the IMF paper and the FSB paper both put together.
Sitharaman explained that a discussion will take place in September and October and at the “end of the day, we will see a roadmap being readied on how and what kind of understanding the members of the G20 have in this, and it can be taken further forward on specific actions of regulation as and when the G20 takes a call on it.”
The Indian finance chief also noted that crypto assets can potentially cause macroeconomic instability, stating:
Today, we are in the position to see how countries are now recognizing that it is not just a crypto asset regulatory issue, where countries will have to come together, but … There can be issues of macroeconomic stability itself.
In conclusion, Sitharaman said the crypto discussion among the G20 members was “very substantive,” adding that all of the G20 finance chiefs came to an agreement that crypto oversight “has got to be globally handled.”
What do you think about the G20 discussion on crypto? Let us know in the comments section below.