Welcome to ETC Group

ETC Group logo

Please select your country of residence and investor profile in order to access content and information around our ETC products

Cookie Settings

Required cookies

These cookies are necessary to ensure the smooth functioning of this website (e.g. session cookies, cookie to store the selected cookie preferences, etc.). These required cookies can thereforce not be deactivated.

Optional cookies

Functional cookies are used to ensure the smooth functioning of all tools on the wesites. The entire and proper function of the webite is available to the user only with the use of functional cookies. The use of analysis cookies serves the ongoing quality improvement of this website and its content. By using them, wa aim to maximise user satisfaction.

Avis Important

Des produits tels que BTCetc - ETC Group Physical Bitcoin ("BTCE") sont des Exchange Traded Commodities ("ETC"), instruments financiers considérés comme des titres de créances complexes par l'Autorité des Marchés Financiers présentant des risques difficilement compréhensibles par le grand public. A ce titre, leur distribution en France répond à des règles spécifiques. Il relève de la responsabilité des intermédiaires et investisseurs professionnels souhaitant offrir des ETCs à leurs clients de s'assurer que leur distribution auxdits clients est réalisée dans le respect de la réglementation française.

Terms of website use

If you continue to use our website, you are deemed to have read and accepted our Terms and Conditions as set out below:

This website is for information only. It does not provide investment, tax or legal advice or recommendations. According to the applicable laws and regulations in your jurisdiction, some contents on this website or the access to certain contents on this website might be restricted.

Disclaimer: The material and information contained on this website is for informational purposes only and ETC Management Ltd, its affiliates, and subsidiaries are not soliciting any action based upon such material. The material and products do not represent or shall not be inferred as an offer or a recommendation to buy or sell a security, nor shall it be considered or treated as investment advice. Additionally, the material accessible through this website does not constitute a representation that the investments described herein are suitable or appropriate for any person. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on any information.

Distribution of Information:

The distribution of the information and material on this website may be restricted by law in certain countries. None of the information is directed at, or is intended for distribution to, or use by, any person or entity in any jurisdiction (by virtue of nationality, place of residence, domicile or registered office) where publication, distribution or use of such information would be contrary to local law or regulation.

You must inform yourself about, and observe any such restrictions in your jurisdiction and by accessing this website you represent that you have done so. The information on this website is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof).

By accepting these Terms and Conditions, you hereby confirm that according to the applicable laws and regulations of the relevant jurisdiction (be it the jurisdiction of your nationality, residence, incorporation of the company you are representing or current physical location) you are allowed access this website.

No contract

Use of this website does not result in a contractual relationship between the user and ETC Issuance GmbH. To that extent, no contractual or quasi-contractual claims arise against ETC Issuance GmbH as a consequence of visiting this website.

No offer

No content of this website should be considered as an offer to purchase any product or securities as described on this website. The prices and valuations published on this website are indicative and are for information purposes only, as is other information displayed on this website. Any person making offer of securities described on this website shall observe and strictly comply with restrictions on the usage of information pursuant to these Terms and Conditions, as well as any restriction imposed by a prospectus published with respect of any securities described or applicable laws and regulation, including without limitation restrictions imposed by the EU Prospectus Regulation (REGULATION (EU) 2017/1129 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 14 June 2017).

Authorised Investors

Any securities described on this website are not permitted to be offered for sale in all countries and are in each case reserved for investors who are authorised to purchase the securities. Selling restrictions applicable to specific products are set out in the relevant prospectus and should be read carefully by investors. Any restrictions imposed by the relevant prospectus are in addition and without prejudice to any restriction or prohibition established by laws or regulations of any jurisdiction.

United States Persons and legal entities resident in the United States

Securities issued by ETC Issuance GmbH or its affiliates have not been registered under the U.S. Securities Act of 1933, as amended, (the "Securities Act"). The Bonds are being offered outside the United States of America (the "United States" or "U.S.") in accordance with Regulation S under the Securities Act ("Regulation S"), and may not be offered, sold or delivered within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

The information provided on this website is not directed to any United States person or legal entity or any state thereof, or any of its territories or possessions.

U.S. PERSONS (AS DEFINED IN REGULATION S) AND LEGAL ENTITIES RESIDENT IN THE UNITED STATES MAY NOT ENTER THIS WEBSITE.

Information from this website may not be distributed or redistributed into the United States or into any jurisdiction where it is not permitted.

Exclusion of liability for content

Some documents displayed on the website and its content are restricted to ”Professional Investors” only and are not intended for retail or private investors. By making use, opening, or downloading such documents, you agree that you are an “Institutional Investor” as defined here: https://www.handbook.fca.org.uk/handbook/COBS/3/5.html, and have read, understood and accepted the conditions.

Certain documents made available on this website may have been prepared and issued by persons other than ETC Issuance GmbH. This includes any prospectus and additional documents thereto. ETC Issuance GmbH is not responsible in any way for the content of any such document. Except in those cases, the information on the website has been given in good faith and every effort has been made to ensure its accuracy. Nevertheless, ETC Issuance GmbH shall not be responsible for any loss which is a direct or indirect result of reliance placed on any part of the website and it makes no warranty as to the accuracy of any information or content on the website. The terms and conditions of securities applicable to investors will be set out in the relevant prospectus, available on the website and should be read prior to making any investment.

Risk Warnings

You should always bear in mind that:

  • Cryptoassets are a highly volatile asset class. Your capital is at risk. The value of cryptoassets can go down as well as up and you can lose your entire investment.
  • Past performance is not an indication of future performance.
  • Rates of exchange may affect the value of investments.
  • Applications to invest in securities referred to on this website must only be made on the basis of the relevant prospectus.

Investors should refer to the section entitled “Risk Factors” in the relevant prospectus for further details of these and other risks associated with an investment in the securities offered by the Issuers before investing.

Changes of terms and conditions of website use

ETC Issuance GmbH reserves the right to modify or amend these Terms and Conditions at any time without prior warning.

Copyright

Content and design of this website are protected by copyright and other applicable laws. Any copying of the website or of its content requires the prior written consent of ETC Issuance GmbH.

Data Privacy Policy

ETC Issuance GmbH respects the privacy of users. Personal data, which are collected when visiting the website, are processed according to the requirements of the GDPR or equivalent national legislation. For details on data privacy, please see our Privacy Policy.

Hyperlinks

Some of the hyperlinks contained on this website may lead the user to external websites that are not under the control of ETC Issuance GmbH and for the content of which ETC Issuance GmbH is not responsible. When the user clicks on such a link, the user will leave the ETC Issuance GmbH website. ETC Issuance GmbH is not responsible for the content of any websites reached by means of such a link.

Cookies

ETC Issuance GmbH may collect data about your computer, including, where available, your IP address, operating system and browser type, for improvements to the website, system administration and other similar purposes. These are statistical data about users' browsing actions and patterns, and they do not identify any individual user of the website. A cookie is a small file of letters and numbers that is put on your computer if you agree to accept it. By agreeing to the cookie notice below you are consenting to the use of cookies as described here. These cookies allow you to be distinguished from other users of the website, which helps ETC Issuance GmbH to provide you with a better experience when you browse the website and also allows the website to be improved from time to time. Please note that you can adjust your browser settings to delete or block cookies, but you may not be able to access parts of this website without them.

Governing Law and Jurisdiction

ETC Issuance GmbH is a subsidiary of ETC Management Ltd, company number 12165332, with registered office at Gridiron, One Pancras Square, London, England, N1C 4AG. These Terms and Conditions and your access to and use of this website and the content are subject to the laws of England and Wales.

The products displayed on this website are not available for subscription or purchase by retail investors in your selected jurisdiction. Please contact your broker or financial adviser for further information.
This website and the products displayed on this website are not available to retail investors in the United Kingdom. Please contact your financial adviser for further information.
back to articles
/blog/thumbnails/weekly_10_2x.jpg
newsletter
Tom Rodgers
Tom Rodgers Head of Research
Share on Share on Linked In Share on Twitter

ETC Group Crypto Minutes Week #10

120,000 people donate $60m" in Bitcoin and Ethereum to Ukraine, institutions add their largest Bitcoin positions in four months, there’s a banking mass exodus and eBay could herald the next stage of mainstream adoption.

120,000 people donate $60m" in crypto to Ukraine

Europe is in turmoil and everyone reading this will know why. What we do need to discuss is the impact of technology on the geopolitical situation, and specifically blockchain, because there are some absolutely incredible things going on.

Crypto has a long history as a tool for oppressed people to finance their causes: it was true in Hong Kong in 2019 when HSBC cut off access to protestor funds, it was true in Belarus in 2020 when dissidents were fighting the regime and were enabled with Bitcoin grants, and even in Myanmar, pro-democracy anti-Junta groups made the Tether USD stablecoin an official currency as a way to fund their cause.

This time around, it’s not only NGOs and grassroots initiatives that are raising funds with crypto, it is a sovereign government itself. On 26 February the Ukrainian government posted on Twitter three wallet addresses: one for Bitcoin (BTC), one for Ethereum" (ETH), and one for Tether (USDT), and within 24 hours raised millions of dollars.

graph

By 8 March that figure had reached $60m", with 120,000 people donating cryptoassets of one kind or another. They include Polkadot founder Gavin Wood, who sent $5.8m in DOT, while Art for Ukraine is using Tezos (XTZ) to send funds to these addresses near-instantly as soon as anyone buys one of their artworks, using a specially-designed smart contract. Each sells for around 3 XTZ ($6). The project has raised 6,000 XTZ.

Ukrainian suppliers of night-vision goggles are accepting payments directly in crypto, Coindesk reports.

It may take some time for the wider world to adequately process the idea that a sovereign nation has turned to a global community to crowdfund critical funds, using a novel technology, thereby validating the thesis for what cryptoassets do. They are a way to move and store money value cross-border and peer to peer, in a frictionless way that avoids censorship, seizure and other issues along the way.

graph

Crypto regulatory compliance firm" Elliptic added data showing how a CryptoPunk NFT worth $200,000 was sent to the Ukrainian government’s Ethereum" address – displaying exactly how it is not just money, but any kind of tokenisable asset that can move cross-border onto public blockchains. Pressure group UkraineDAO has also auctioned off an NFT of the Ukrainian flag for $6.5m" in ETH, the tenth most expensive NFT ever sold. The proceeds are to be donated to the Come Back Alive NGO.

To the point that Russia’s sanctioned wealthy could use crypto in the same way to evade sanctions, we have written a lengthy rebuttal countering these assertions. For Crypto Minutes readers, here’s a short summary.

Public blockchain ledgers are terrible ways to launder large amounts of money: anyone can view a record of all transactions at any time. Coupled with the skill of forensic blockchain analysts like Chainalysis and Elliptic, and we are talking flows of money that are orders of magnitude larger than it would be possible to conceal.

If Russia wants a SWIFT alternative, it won’t use Bitcoin. Instead of a public, open network it cannot control, it is much more likely to use CIPS, the onshore yuan clearing and settlement system" offered by China. To this point, we hear that Sberbank and Alfa Bank will issue Mir cards with China’s UnionPay, after Mastercard and Visa stopped operating in the country.

Institutions pile $127m"/week into crypto: most since December

Despite accelerating geopolitical risks, and commodity markets like oil and nickel seeing vast spikes, institutions are pushing ever greater amounts of capital into cryptoasset ETPs. 

Data via CoinShares shows that institutional investors moved net inflows of $127m" into Bitcoin, Ethereum, Solana, Cardano, Tezos ETPs in the last week. That rounds up seven straight weeks of net inflows. It’s a dramatic turnaround from November-December 2021, which saw profit-taking on a huge scale after Bitcoin hit its $69k all time high. These figures bring the 2022 year-to-date net inflows to $218m.

Digital asset investment products saw inflows totalling $127m" last week, an uptick on the previous week, suggesting investors remain supportive of digital assets despite the recent geopolitical events prompting a sell-off in risk assets,” wrote CoinShares head of research James Butterfill.
Bitcoin saw inflows totalling $95m", the largest single weekly inflow since early December. Ethereum saw inflows of $25m, the largest in 13 weeks, and follows a run of mixed to negative sentiment since early December.

Altcoins including Litecoin and Cardano also saw net inflows.

graph

Crypto markets appear to have effectively split into two types of capital market allocators.

One is the speculator who is highly leveraged and who treats Bitcoin as a purely risk-on asset, riding the wave of liquidity flows and monetary debasement, but who sells at the first sign of central bank tightening. 

The other is the risk-neutral investor who believes the generation-defining thesis that crypto is the greatest macro opportunity of our lifetime and that it will create more value than the internet.

eBay accepts NFTs, could accept crypto, while banking exodus continues

Turning away from" the turmoil in Europe for a moment, we are seeing more ripple effects of the broad-scale adoption of crypto as a payment method.

eBay CEO Jamie Iannon told The Street in a 27 February interview that he wants to reposition the marketplace as the go-to home for Gen Z and millennials.

Despite the lack of an official announcement, eBay has already changed its policies to accept trading in NFTs, Iannon said.

So even without announcing anything or doing anything, people started trading NFTs on our platform". It reminded me of many years ago when people just started selling cars, when we didn't even have a vehicle business at that point. So we're seeing the same type of thing [with NFTs].

The $32.7bn market cap company could make an announcement on accepting crypto as payment methods as soon as an upcoming March investor presentation day, Iannon revealed.

We're not accepting crypto currently. On March 10, we're going to go deeper on all of these things, payments, advertising, our focus categories.

The masses don’t see adoption of new technologies coming in advance. That’s probably because human brains are really good at processing linear information, but terrible at tracking and understanding the effect of exponential curves.

Jeff Bezos famously quit a high-paying hedge fund job to start Amazon in his garage in 1994. His decision was based, in part, when he spotted a stat that made him sit up in shock: the internet was growing at 2,300% per year.

Crypto is following the same trajectory and is projected to reach 1 billion users sometime between 2023 and 2027.

graph

By the same token, we are starting to see the early stages of what could be a mass exodus of bankers, analysts, FX traders and finance professionals into crypto.

FnLondon's recent interviews with six former bankers who all switched to crypto was illuminating.

My phone rings off the hook, said Chris Perkins, who left Citigroup in September 2021 to become president of crypto investment firm Coinfund.

“I realised I was advising on transactions with centuries-old financial services companies who could be significantly impacted if they didn’t adapt,” said Hazem" Shish, former head of financial institutions group banking at Barclays. He left the bank in November 2021 to found a blockchain startup.

17-year Morgan Stanley veteran Kyle Downey followed a similar path: “The dominant narrative around crypto has shifted from" it being a joke, for criminals and supporting the dark web, to a lot of people on Wall Street saying you should have 1-2% of your portfolio allocated to digital assets.”

In October 2021 Downey quit his senior technologist role to head up a firm" focused on digital asset risk management. “The bigger picture is that it is a new way to trade any asset. If you project forward 15 years, I think all assets will be tokenised and there will be no difference between the stock market and digital asset markets.”

Annabelle Huang of Amber Group, a 250-staff crypto trading firm" in Hong Kong, cut her teeth trading FX markets for Deutsche Bank and Nomura. “That was 24/5 and I thought it was pretty crazy, but now this is 24/7,” she said.

We’re getting resumes every day from" banks all over the world. I’m personally getting a lot of phone calls from people who I used to work with. Four years ago, they were mostly asking me, ‘What is wrong with you?’ and now, they’re asking me, ‘How can I be a part of it?

Markets

BTC/USD

Bitcoin’s performance was among the best of the cryptoassets in the two-week trading session, ascending 4.75% from" a $36,863 start to finish at $38,614. There was quite the variance in between those two points, as there tends to be in crypto markets, with a low of $34,329 found in the wake of the Russian invasion of Ukraine, before a storming 32.2% climb as high at $45,411. BTC has found some support above $40k, which will be a boon to bullish traders as this was a previous resistance point, but again found headwinds in the same $45k level it sought to breach three weeks earlier.   

BTC/USD graph
Data as of 8 March 2022 | Source: TradingView.com

ETH/USD

Ethereum" followed a similar pattern to Bitcoin across the fortnight, albeit with less volatility. A $2,550 start was less than bulls had hoped for, given its run all the way from $2,200 to $3,200 as sentiment shifted to the positive in the late-January to early-February period. Still, a bounce at a higher low than was seen three weeks earlier provides positive momentum going forward, even if $3,000 has been rejected for the moment. In all, ETH ended the two-week session almost exactly flat, at $2,561.74.

ETH/USD graph
Data as of 8 March 2022 | Source: TradingView.com

LTC/USD

Litecoin has witnessed little price action of note in recent weeks, but it will be heartening to holders to see the that the tight $104-$112 range broke to the upside in the wake of the network’s MWEB extension block upgrade from" late January.  Beginning at $102.84, Litecoin dipped less than some may have expected on the geopolitical news from 24 February, finding a bottom at $91.53, climbing 25.75% to $116.02, and then finishing almost exactly where it started, at $102.22.

LTC/USD graph
Data as of 8 March 2022 | Source: TradingView.com

BCH/USD

Bitcoin Cash developers have been showing off the chain’s DeFi credentials in recent weeks, as the chain attempts a pivot into the revenue-earning vertical and beyond its simple cross-border currency use case. That hasn’t been reflected in the price just yet, as BCH – like Litcoin and Ethereum" – traded flat across the two weeks. A low of $259.99 apes the bottom found in late January and the chain has traded at higher lows more recently, which will give bulls good cheer.

BCH/USD graph
Data as of 8 March 2022 | Source: TradingView.com

ADA/USD

Cardano appears to remain somewhat stuck in the macro downtrend that gripped crypto markets since the latter part of November, a frustrating experience for holders given that user adoption and revenue on the smart contract chain is soaring with its most recent round of tech updates. ADA began at $0.86, dipping to $0.75 before finding a relief rally push it nearly 35% higher to $1.01. That momentum" has not persisted, and ADA finished out the fortnight 7% down at $0.80. Cardano holders will be hoping that in the weeks ahead the market can digest precisely how much money the blockchain is now pulling in.

ADA/USD graph
Data as of 8 March 2022 | Source: TradingView.com

DOT/USD

Fortunes over at Polkadot have been markedly better in recent weeks, with Ukraine adding DOT to their wallet addresses and founder Gavin Wood’s international profile gaining a boost from" his near $6m donation. From a price perspective, DOT was one of the only top 25 chains to climb across the fortnight, adding 4.3% to finish out at $16.77. Bulls watching how swiftly things are moving on the technical side, with ever more parachain auction winners spinning up their blockchains on Polkadot, will be hoping to retry $20 again in the not too distant future.  

DOT/USD graph
Data as of 8 March 2022 | Source: TradingView.com

SOL/USD

Solana’s two-week journey was characterised by relatively little volatility, and the Ethereum"-killer smart contract chain dipped far less than its rivals, finding hefty support at $75, and finishing the fortnight in the green. Rejection at the lower high of $106.56 mid-period saw SOL dip below the $100 mark, though, suggesting that there is much more to come from Solana when market fortunes are revived in the latter part of 2022.

SOL/USD graph
Data as of 8 March 2022 | Source: TradingView.com

XTZ/USD

In general, Tezos holders remain in something of a holding pattern. Most are collecting their staking yields and watching as the blockchain continues to sign impressive corporate partnerships, but the price of XTZ has not followed to date. XTZ began and ended the fortnight at exactly $3.01, with a low of $2.56 swiftly rejected and more support appearing in the $2.75-$2.80 region.  

XTZ/USD graph
Data as of 8 March 2022 | Source: TradingView.com

XLM/USD

Stellar broke to the upside in late January, taking out bears who had rejected $0.195 on three separate occasions, albeit with $0.250 marking the high-water point and too much for bulls to hold. Across the two-week session, XLM" slipped 10% from a $0.180 start to bottom at $0.162. From that low, XLM added 6.1% upside to close out the fortnight at $0.172.

XLM/USD graph
Data as of 8 March 2022 | Source: TradingView.com

Disclosure | Copyright © 2022 ETC Group. All rights reserved

Browse through related content