Bank of America report shows younger affluent individuals favor crypto and alternative investments, differing from older generations’ traditional focus. “In fact, the most ‘conservative’ group is holding the highest average exposure to crypto,” the bank said. ‘Younger Groups Hold More Crypto and More Alternative Investments’ Bank of America released a report titled “2024 Bank of […]
Bitcoin News
Thailand’s SEC Approves Bitcoin ETF Fund for Wealthy Investors
The Securities and Exchange Commission (SEC) of Thailand has granted approval to One Asset Management (ONEAM) to launch a fund that invests in spot bitcoin exchange-traded funds (ETFs). The fund, named “One Bitcoin ETF Fund of Funds Unhedged Fund Not For Retail Investors (ONE-BTCETFOF-UI),” is accessible exclusively to institutional investors and high-net-worth individuals from May […]
Bitcoin News
The Ultra Wealthy Are Investing Big Time In Bitcoin, Barbara Goldstein Reveals
Bitcoin, the world’s largest cryptocurrency, has caught the attention of the ultra-wealthy elite, as individuals with assets worth millions and billions of dollars are setting their sights on entering the digital asset market, eager to become part of Bitcoin’s innovative and revolutionary ecosystem.
Wealth Titans Are Shifting Focus To Bitcoin Investments
In a recent interview with CNBC Last Call, Barbara Goldstein, the Managing Partner at R360, an invite-only networking and investment club for the uber-rich, discussed a new shift among wealth titans towards Bitcoin investments.
Shedding light on the growing appeal for digital currencies among the elite echelons of the R360 club, Goldstein disclosed that the members of the club had engaged in thorough discussions about Bitcoin, expressing optimism regarding its potential to be a lucrative investment bracket for the wealthy.
She revealed that a prominent member of the R360 club members, a leading hedge fund manager, had championed the pioneer cryptocurrency, continuously encouraging other members to invest in it. Additionally, Goldstein detailed several bullish factors she believes served as a primary catalyst for driving Bitcoin’s value, citing the upcoming Bitcoin halving event this April and the growing Spot Bitcoin Exchange Traded Funds (ETFs) market.
When questioned about whether the members of the R360 club were treating Bitcoin as a casual investment or delving deeply into investing in the tokens, Goldstein responded by affirming that Bitcoin was among the investment vehicles favored by the members of the R360 club.
This notable shift in Bitcoin’s appeal among wealthy individuals reflects the growing acknowledgement of the cryptocurrency’s potential to serve as a valuable hedge against inflation. Additionally, it underscores the cryptocurrency’s evolution as the preferred asset for diversification amongst investors globally.
BTC Emerges As New Gold Standard
During the interview, Goldstein declared that “Bitcoin was a corollary almost to Gold,” suggesting its potential to become a digital store of value.
The R360 managing partner has not been alone in drawing parallels between this digital asset and gold. Leading figures in the crypto industry, like Co-founder and CEO of MicroStrategy, Michael Saylor and ArkInvest CEO and Founder Cathie Wood, have also likened the pioneer cryptocurrency to the precious metal.
Commending Bitcoin further, Goldstein extolled its remarkable growth and evolution, asserting Bitcoin’s position as the number one asset class in the digital asset industry.
She disclosed that Bitcoin was a vital investment asset that everyone should possess, affirming its role as a hedge against inflation and praising its track record of impressive performance over the past 14 years. Additionally, Goldstein concluded by acknowledging the numerous positives related to Bitcoin, while cautioning that it remains a volatile asset class.
Wealthy London Residents Reportedly Use Cryptocurrency for High-End Property Rent Payments
Some of London’s wealthy residents are reportedly using cryptocurrency to pay for luxury home rentals. High interest rates and a dampened real estate market have led the city’s affluent residents to opt against buying properties. The acceptance of payment in cryptocurrency demonstrates the real estate agency’s openness and its eagerness to become “a leader within […]
Bitcoin News
Swiss Financial Giant UBS Now Offers Crypto ETFs to Wealthy Clients in Hong Kong, Report
UBS has reportedly begun offering wealthy clients access to some crypto exchange-traded funds (ETFs) in Hong Kong. Initially, the Swiss financial services giant is offering three crypto ETFs that have received regulatory approval from the Securities and Futures Commission.
UBS Offering Crypto ETFs to Wealthy Clients
UBS Group AG is allowing wealthy clients in Hong Kong to trade three crypto exchange-traded funds (ETFs) starting this Friday, Bloomberg reported, citing a person familiar with the matter.
The three crypto ETFs have been authorized by Hong Kong’s Securities and Futures Commission (SFC). They are Samsung Bitcoin Futures Active ETF, CSOP Bitcoin Futures ETF, and CSOP Ether Futures ETF, the publication conveyed. UBS is additionally providing clients access to educational materials to enhance their understanding of the risks linked to crypto-related investments.
Hong Kong introduced a new regulatory framework for crypto assets in June, permitting crypto exchanges to provide trading services to individuals and institutions upon acquiring appropriate licenses. According to the SFC rules, retail investors can trade major cryptocurrencies on licensed exchanges. The regulator currently allows futures-based crypto ETFs and is said to be evaluating the possibility of approving spot crypto ETFs.
In June, the news outlet also reported that British megabank HSBC had begun offering the trading of crypto ETFs to customers in Hong Kong.
The city has been trying to position itself as a cutting-edge financial center and a crypto hub. However, its efforts have been set back by a recent cryptocurrency fraud scandal involving crypto exchange JPEX. The scandal also prompted the Hong Kong Monetary Authority to announce a plan to widen its crypto supervision. In September, the SFC published a list of companies seeking to operate crypto trading platforms in the city.
What do you think about UBS allowing wealthy clients access to crypto ETFs? Let us know in the comments section below.
Wealthy Investors and Family Offices Embrace BTC Following Bank Failures, Says Swan Bitcoin Executive
According to Steven Lubka, the head of private clients and family offices, as well as the managing director at Swan Bitcoin, wealthy investors and private offices have been gravitating towards bitcoin since the downfall of Silicon Valley Bank (SVB). Lubka stated that his firm has also observed “corporations engaging in treasury diversification” and emphasized that these investors “want to own an asset that is outside” of the troubled financial system.
High-Net-Worth Individuals and Family Offices Are ‘Concerned About Long-Term Stability in the Financial System’
In 2023, three of the largest bank failures in the history of the United States occurred. Since then, affluent investors, family offices, and individuals with high net worth have been gravitating towards bitcoin. This information was shared by Steven Lubka, an executive at Swan Bitcoin, during an interview with Michelle Makori, the lead anchor and editor-in-chief at Kitco News. The conversation took place at the Bitcoin 2023 conference held in Miami.
“Since the collapse of Silicon Valley Bank we’ve seen a huge uptick,” Lubka informed Makori. “We’ve always had a slice of family office clients that have used the platform, but ever since SVB that has massively increased. These people are taking large bitcoin positions.” Lubka emphasized that these investors have a keen interest and “they want to learn more.”
Swan’s managing director further expressed that if any institutional segment is expected to be an early adopter, it is likely to be family offices due to their greater control over investing in alternative assets. Lubka told Makori that bitcoin (BTC) exhibited a positive response when the banks faced pressure. He also highlighted that high-net-worth individuals and family offices approached Swan expressing they were “concerned.”
The executive mentioned that Swan caters to a diverse range of clients but specified that, for high-net-worth individuals, his firm is “generally looking at million on the individual side” and “as much as a billion on the family office side.” Lubka said that these investors “are concerned about long-term stability in the financial system.” He added:
They want to own an asset that is outside of that system.
Lubka commented to Makori that investors and family offices perceive bitcoin as a means of “diversification.” He emphasized that when BTC experienced a surge during the bank contagion, it demonstrated its resilience as a hedge. “That wouldn’t have happened in the same way, I don’t think, five years ago,” Lubka stated. He expressed confidence in bitcoin reaching the six-figure range by the end of 2024, and he further suggested the possibility of a “million-dollar bitcoin by 2030.”
What are your thoughts on the trend of wealthy investors and family offices turning to bitcoin for diversification? Share your thoughts and opinions about this subject 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.
Bitcoin Only Works For The Wealthy, Senator Elizabeth Warren
The argument on who really benefits from bitcoin is a long one in the making. For those who have been invested in the digital asset for a couple of years, they have obviously been making the most profit given the recent rallies in the market. However, there is still a lot of BTC that remains in the possession of what is a small number of bitcoin users and that has led to some concerns regarding the distribution of the digital asset.
Majority Of BTC Held In 0.01% Of Wallets
It was reported a little over a week ago by the Wall Street Journal that only 0.01% of bitcoin holders held the majority of the asset’s supply. It revealed that about 5 million BTC were held in these wallets, leading to an even larger concentration in the distribution of the digital asset when compared to cash. Estimating the 1% of wealthy individuals in the U.S. controlled about 33% of the dollar supply.
Related Reading | Bitcoin Should Not Be Measured In Dollar Terms, Says Pompliano
This has sparked debate about if bitcoin is really the equalizer that it is purported to be. For one, there is only 10% of supply left to be mined over the next 120 years and the majority of the already circulating supply of the digital asset is being held by BTC investors who are currently very wealthy given the currently value of the cryptocurrency.
BTC at K | Source: BTCUSD on TradingView.com
U.S. Senator Elizabeth Warren is one of those that has openly spoken out about this concentration. The senator does not believe that bitcoin, which is a completely decentralized ecosystem, equally benefits both the rich and the poor.
Bitcoin Works For The Wealthy
In a recent tweet, Senator Elizabeth Warren called out bitcoin and crypto in general. She questions the financial inclusion that is pushed by the space and linked the WSJ article stating that the supply of BTC is heavily concentrated in a small percentage of wallets. She also points out the fact that it is an even higher concentration of the US dollar.
Related Reading | The Year In Review: An Emotional Rollercoaster For Crypto Investors
In conclusion, Senator Warren states that better solutions are needed to solve financial inclusivity. Pointing out that bitcoin only favors the wealthy.
The crypto industry claims that crypto is the path to financial inclusion, but bitcoin ownership is even more concentrated within the top 1% than dollars. We need real solutions to make the financial system work for everyone, not just the wealthy.https://t.co/8OiHwZEBUz
— Elizabeth Warren (@SenWarren) December 28, 2021
Warren as at various times called for there to be more regulation in the crypto market. The senator has never been shy to air her anti-crypto views and has asked for there to be tighter restrictions placed on the market.
Featured image from Al Jazeera, chart from TradingView.com
NewsBTC
Hong Kong Wealthy Move Gold Offshore: Why Bitcoin Is Better
Precious metal dealers in the political and protest torn Hong Kong claim that the wealthy are moving gold offshore following a new security law passed by Beijing in July.
Investors fearing that their wealth is at risk and must be stored out of arm’s reach is a sign that the wealthy are ready for the digital age of gold, powered by a budding new asset called Bitcoin.
Hong Kong FUD Prompts Wealthy To Move Gold Offshore Over Safety Concerns
New laws in Hong Kong imposed by China have prompted the wealthy to move gold out of the country’s financial hub and to safer havens like Switzerland, Singapore, and more.
The trend first began last year, according to local metals dealers, as protests began sweeping the nation and political tensions boiled over.
Related Reading | Silver Fractal: Are Crypto Altcoins On the Cusp of an Explosive Surge?
The factors promote investors moving capital into safe haven assets like gold, silver, and recently, Bitcoin and cryptocurrencies. But holding precious metals carries risks not associated with crypto assets, such as physical theft.
“Investors are moving gold from Hong Kong to Singapore because they don’t like the risk and uncertainty,” metals analyst Ronan Manly told FT. “This could, in the mind of gold holders, snowball into concerns about safety of bullion and certainty of property rights.”
For the wealthy concerned with safety and property rights, but want a similar asset to gold, Bitcoin is the answer.
Bitcoin and Gold Climbing Together In 2020 | Source: TradingView
How Bitcoin Is The Best Insurance Policy For Political and Economic Chaos
Bitcoin was designed by Satoshi Nakamoto as a peer-to-peer digital form of cash, but also to include several similarities with gold. Satoshi sought to make the cryptocurrency part commodity or “collectible” and coded a hard cap into the asset’s supply.
Only 21 million BTC will ever exist. Even less are circulating today, and millions may be lost or locked away for good. There are risks involved in custody of crypto assets include total loss and the responsibility of having to be your own bank. However, it also means that no third-party can ever access the assets without directly having possession or knowledge of a private key.
Related Reading | Why Bitcoin is the Best Insurance Policy For Long-Term Wealth Preservation
Digital ownership through cryptography is a safe and secure way to protect property rights. Bitcoin also exists only digitally, lacking a physical form that is put at risk by earthly actors, like thieves, family members, or the government’s strong arm.
It is for these very reasons, that Bitcoin is the ideal solution for the situation taking place in Hong Kong currently, and highlights how the future environment may be ideal for cryptocurrencies. Inflation of the dollar, contactless payment preference, and several other sudden changes in the mainstream market could see a surge in usage and adoption in Bitcoin.
Gold shares none of these attributes but has been used for centuries for the similarities it does share with crypto. In today’s digital age, economic uncertainty, and political unpredictably, Bitcoin remains the best insurance policy for the future.