Hashnote, a digital asset manager, has announced a partnership with crypto custody firm Anchorage Digital to offer secure investment returns for institutional clients. This collaboration integrates Anchorage’s custody services with Hashnote’s derivative strategies. Hashnote and Anchorage Join Forces to Reduce Counterparty Risk for Institutional Investors Investing in Crypto On Monday, Hashnote stated that the “collaboration […]
Bitcoin News
Hong Kong Spot ETFs Secure $1.96B in Bitcoin, $26M in Ether
Since the spot bitcoin and ethereum exchange-traded funds (ETFs) in Hong Kong began trading on April 30, they have accumulated .96 billion in bitcoin and .74 million in ethereum. Hong Kong’s Spot Bitcoin and Ether ETFs See Modest Growth Hong Kong’s spot bitcoin and ether ETFs have been active for 44 days since their launch. […]
Bitcoin News
2 Bitcoin L2 Projects Secure Investments to Enhance Bitcoin’s Defi Capabilities
On Tuesday, two Bitcoin-centric layer two (L2) initiatives successfully secured funding from strategic investors. Botanix Labs, a startup focused on developing a decentralized Turing-complete L2 EVM (Ethereum Virtual Machine), garnered .5 million. Meanwhile, the Bitcoin L2 ZKM attracted million during a pre-seed investment phase. Bitcoin L2 Projects Gain Momentum With New Financing Rounds Throughout […]
Bitcoin News
Telegram’s Founder Advocates for Crypto-Inspired Hardware to Boost Secure Communications
Pavel Durov, the founder of Telegram, has proposed creating crypto-inspired hardware to enhance secure communication and protect privacy, a vision spurred by his unsettling experiences with governments, including attempts by the FBI to interrogate him and coerce a Telegram engineer into embedding backdoors in the app. These experiences have led Durov to explore technological solutions […]
Bitcoin News
43 Bitcoin Projects Secure Key Funding in 2024 Attracting Over $127 Million
Since the onset of 2024, the Bitcoin ecosystem has seen an influx of capital flowing into startups. Data gathered by Coin98 Analytics from the web portal crypto-fundraising.info, reveals that over the past few months, 43 Bitcoin-centric projects have secured funding from key investors. Startups Dedicated to the Bitcoin Ecosystem Gather Significant Capital Injections A fresh […]
Bitcoin News
Injex Finance Launches Presale for $INJX Token: Join Now to Secure Early Contributions
PRESS RELEASE. Injex Finance is excited to announce the official launch of its Presale for the native $INJX token, offering early contributors an exclusive opportunity to become part of the thriving Injex ecosystem. With the Presale now live, users can seize the moment to participate and benefit from this groundbreaking initiative. As the cryptocurrency market […]
Bitcoin News
Group Urges US President Joe Biden to Secure Release of ‘Kidnapped’ Former Federal Agent
The Chamber of Digital Commerce, a blockchain and crypto advocacy group, has urged U.S. President Joe Biden to assist in securing the release of a Binance executive “kidnapped” by the Nigerian government. The group warned that the Nigerian government’s arbitrary detention of Tigran Gambaryan might establish a dangerous precedent. Questioning the Arbitrary Detention of Binance […]
Bitcoin News
Texas Blockchain Council and Riot Secure Legal Victory in Bitcoin Mining Data Collection Lawsuit
In a landmark ruling, the Texas Blockchain Council (TBC) and Riot Platforms Inc. have triumphed in their lawsuit against the Biden administration, successfully halting the data collection efforts on bitcoin mining operations. TBC and Riot Platforms Win Case Against Bitcoin Mining Data Survey The United States District Court for the Western District of Texas has […]
Bitcoin News
Dogecoin And XRP Beat Out Cardano And Solana To Secure New Milestone
Kaiko, a blockchain analytics platform, conducted an investigation that revealed the complexities of liquidity across the biggest crypto assets, with some lower market cap assets beating higher ones. According to its Q3 liquidity rankings, XRP and Dogecoin (DOGE) managed to beat out Solana and Cardano in liquidity rankings, coming in behind only Bitcoin and Ethereum. There were also some surprise numbers on the rankings, like BNB coming in 8th in terms of liquidity, and Litecoin also outperforming.
Kaiko Analysis Highlights Liquidity For Crypto Assets
The vast number of crypto assets has always brought out the idea among investors to rank their valuation on a scale of some sort, with the most adopted being the market cap. However, according to Kaiko, liquidity, along with other metrics like volume and market depth is a better way to measure a token’s real value apart from its market cap. This was best demonstrated by FTX’s token FTT, whose market was bloated to reach a peak of nearly billion without having enough liquidity on exchanges to back this up.
According to its latest rankings, Bitcoin took up the first spot in liquidity. This wasn’t surprising, as Bitcoin has always held a tight reign over the crypto industry since its inception. Ethereum followed in second place in terms of liquidity to reiterate its position as the king of altcoins. However, Kaiko’s liquidity rankings started to digress from the market cap at the third position, with BNB underperforming massively to come in at 8th place.
Instead, XRP came in at 4th place, beating out the likes of Solana and Cardano (the Ethereum killers) on exchanges among traders. XRP’s liquidity boost in the quarter was thanks to the asset receiving regulatory clarity in the US. Dogecoin came in at 5th place, despite being 10th on market cap rankings, to solidify its position as the leader among meme coins. Litecoin came in at 5th place to complete the top five, despite being 18th in market cap rankings.
On the other hand, AVAX’s liquidity ranking dropped 11 places when compared to its market cap, while TON came in at 37th place despite being 9th by market cap during the quarter. Also, ATOM, UNI, APT, TON, SHIB, OKB, LEO, and CRO all fell more than five spots.
What Does Liquidity Say About Dogecoin And Crypto Assets?
Kaiko’s measure of liquidity included the spread and the average daily trading volume on different exchanges. The analytics platform also included two different market depth levels; 0.1% for higher frequency traders and 1% for longer-term holders.
In terms of trading volume, BTC came in first place while ETH and XRP followed suit. However, SOL beat DOGE in this metric with around billion in the quarter.
The bottom line is that greater liquidity often precedes greater success over the longer term for cryptocurrencies. Q4 2023 should tell a strong tale in terms of crypto liquidity, as most cryptocurrencies registered new yearly highs in terms of market cap.
Featured image from Shutterstock
Sam Altman-Backed Crypto Startup Looks To Secure $100 Million For Bitcoin Private Credit Fund
Meanwhile Advisors, a crypto startup backed by the American entrepreneur Sam Altman, has announced plans to raise 0 million for a Bitcoin (BTC) private credit fund.
The fund, known as Meanwhile Private Credit Fund aims to provide institutional investors with access to BTC while targeting an additional 5% yield denominated in the cryptocurrency.
Bitcoin Rally Sparks Launch Of Meanwhile Advisors Fund
According to a report by The Block, Meanwhile Advisors has launched the fund as Bitcoin continues its recent rally, with prices currently falling from the ,000 level down to the ,200 mark.
Zac Townsend, the co-founder and CEO of Meanwhile Group, stated that the belief is that Bitcoin will appreciate significantly in the future, and the fund offers investors a unique opportunity to increase their exposure to digital assets.
The Meanwhile BTC Private Credit Fund adopts a single-close, closed-end structure. Participating limited partners (LPs) will contribute US dollars to the fund, which will be immediately converted to Bitcoin following the single close.
Meanwhile will lend this BTC to borrowers to generate the targeted 5% return in Bitcoin. This structure allows LPs to accumulate more Bitcoin if its price appreciates during the fund’s lifecycle without requiring additional principal investment.
Townsend mentioned that the minimum investment amount per LP is 0,000, with no maximum limit. The fund’s investment period spans three years, followed by a four-year harvest period, resulting in a total term of seven years.
However, capital is returned to investors during harvest, meaning a significant portion of the invested capital may be returned well before the seven-year mark.
Innovative Fee Approach?
Per the report, the Meanwhile BTC Private Credit Fund charges a 2% management fee and a 20% carried interest fee, both in Bitcoin. The carried interest fee only applies when the LP’s Bitcoin holdings are increased.
This fee structure ensures that if Bitcoin experiences substantial price appreciation, Meanwhile does not benefit from the price appreciation itself but rather from generating more Bitcoin for the LPs.
Addressing concerns about risk management, Townsend highlighted that the closed structure of the fund eliminates the risk of a “bank run” scenario that can lead to insolvency. Moreover, the fund focuses on making conservative loans to “creditworthy institutional borrowers”, mitigating risks associated with lending to retail investors at higher rates.
The Block also reported that Anchorage Digital serves as the fund’s custodian. Meanwhile Group’s insurance unit has previously launched a Bitcoin-denominated life insurance policy, and Townsend mentioned plans to introduce an accidental death coverage policy in Bitcoin as well.
When writing, the leading cryptocurrency in the market is trading at ,200, marking a decrease of nearly 2% within the last 24 hours. This decline follows an unsuccessful attempt to solidify its position above the significant ,000 milestone.
Nevertheless, Bitcoin has managed to maintain a 14% increase over the past seven days and is currently holding strong at the support level of ,000, as it sets its sights on achieving a new annual peak.
Featured image from iStock, chart from TradingView.com