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

These terms and conditions (the “ Terms ”) tell you the terms on which you may make use of our website https://etc-group.com/ (“ Website ”).

Please read these Terms carefully before using this Website. By using this Website, you are deemed to have read and accepted our Terms and Conditions as set out below. If you do not agree to these Terms, you must not use this Website.

Your attention is particularly drawn to the disclaimers and limitations of liability set out in the sections below headed: “ Disclaimer ”, “ No Offer ” and “ Limitation of Liability ”.

Information about us

The website is owned and operated by ETC Management Ltd, a company registered in England and Wales under number 12165332 with its registered office at Gridiron, One Pancras Square, London, England, N1C 4AG.

You can contact us by email at info@etc-group.com.

References to “ ETC Group ”, “ we ”, “ us ” and “ our ” in these Terms refers to ETC Management Ltd and our affiliates.

These Terms

These Terms constitute the agreement between you and us for the use of this Website and the contents and services available through it.

We may change these Terms from time to time. Any changes we may make to these Terms in the future will be posted on this Website and, where appropriate, notified to you by email. By continuing to use and access this Website following such changes, you agree to be bound by any changes we make. Please review this page frequently to see any updates or changes to these Terms.

If you commit a breach of these Terms, we reserve the right at our sole discretion to immediately and without notice suspend or permanently deny your access to all or part of this Website.

Website

We provide this Website on an "as is" and "as available" basis with all faults. We do not guarantee that this Website, or any services or content on it, will always be available or be uninterrupted. We may suspend, withdraw, discontinue or change all or any part of this Website without notice. You agree that your use of this Website is at your own risk. We will not be liable to you if for any reason this Website is unavailable at any time or for any period.

You are responsible for ensuring that all persons who access this Website through your internet connection are aware of these Terms and other applicable terms and conditions, and that they comply with them.

We may update and change this Website from time to time to reflect changes to our products and services, our users' needs and our business priorities.

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. By accessing this Website you represent that you have done so. By accepting these Terms, you hereby confirm that you are allowed to access this Website pursuant to applicable laws.

Lawful use

You may use this Website only for lawful purposes. You must not use this Website in any way that breaches any applicable local, national or international law or regulation, or in any way that is unlawful or fraudulent or has any unlawful or fraudulent purpose or effect.

You must not use or attempt to use any automated program (including, without limitation, any spider or other web crawler) to access our system or this Website. You must not use any scraping technology on this Website.

Disclaimer

Certain documents made available on this Website may have been prepared and issued by persons other than ETC Group. This includes any prospectus and additional documents thereto. ETC Group is not responsible in any way for the content of any such document.

While we take all reasonable care to ensure the information and analysis which we publish on this Website are as accurate as possible, we cannot promise that they will be complete, accurate and up to date.

Opinions and any other contents on this Website are provided by us for informational purposes only and are subject to change without notice. We are not giving you any advice (investment, financial, legal or otherwise) in respect of any of the information on this Website. You should obtain professional or specialist advice before taking, or refraining from, any action based on any information on this Website. Any reliance that you may place on the information on this Website is at your own risk.

To the maximum extent permitted by law, we disclaim any and all implied conditions, warranties and representations that this Website and the information and services available through it are of satisfactory quality, accurate, fit for a particular purpose, or non-infringing.

No offer

Nothing on this Website should be construed as an offer, or recommendation, to purchase or dispose of any product or securities. 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, 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

Some documents displayed on this 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.

The 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 Group 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.

Limitation of liability

ETC Group shall not be responsible for any damage (including, without limitation, damage for loss of business or loss of profits) arising in contract, tort or otherwise from the use of, or inability to use, this Website or any material contained in it, or from any action or decision taken as a result of using this Website or any such material.

We do not exclude or limit in any way our liability to you where it would be unlawful to do so. This includes liability for death or personal injury caused by our negligence or for fraud or fraudulent misrepresentation.

Viruses

We do not guarantee that this Website will be secure or free from bugs or viruses.

You are responsible for configuring your information technology, computer programmes and platform in order to access this Website. You should use your own virus protection software.

You must not misuse this Website by knowingly introducing viruses, trojans, worms, logic bombs or other material which is malicious or technologically harmful. You must not attempt to gain unauthorised access to this Website, the server on which this Website is hosted or any server, computer or database connected to this Website.

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.

Copyright

All content and the design of this Website are owned by ETC Group or our licensors and protected by copyright and other applicable laws.

Any copying of the website or of its content requires the prior written consent of ETC Group.

Your Privacy

ETC Group respects the privacy of users. Please see our Privacy Policy for information setting out how we handle personal information collected through the Website.

Hyperlinks

Some of the hyperlinks contained on the Website may lead the user to external websites that are not under the control of ETC Group. ETC Group does not approve or endorse the contents of such websites and does not control the content of any such websites. When the user clicks on such a link, the user will leave the Website. ETC Group is not responsible for the content of any websites reached by means of such a link.

Governing Law and Jurisdiction

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. However, if you are a consumer resident in another part of the UK or in any EU country, then you will also be entitled to any additional protection afforded to you under your national consumer protection laws.

You can bring legal proceedings in respect of these Terms in the English courts or, if you are a consumer resident in another part of the UK or in any EU country, the courts of your home country.

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_23_2x.jpg
newsletter
Tom Rodgers
Tom Rodgers Head of Research
Share on Share on Linked In Share on Twitter

ETC Group Crypto Minutes Week #23

Markets seemed uncertain as to whether Bitcoin remained in a bullish or bearish state this week, while Ethereum fared a little better than its number one rival

DeFi regulations: World Economic Forum launches policy toolkit

While crypto markets largely moved sideways this week, there was much more excitement around the adoption, regulation and policy coming to the fore.

As US states jostle for access to crypto companies, Texas Governor Greg Abbott signed the much-awaited House Bill 4474 into law, creating a formal legal framework for crypto investments, adapting commercial law to include blockchain and digital assets, and defining virtual currencies. According to the National Law Review, as reported by Coinbase, 25 states are now considering blockchain or crypto-related measures in their 2021 legislative sessions.

One major sign that the mostly Ethereum-based DeFi sector is entering the mainstream comes in a new regulatory whitepaper from The World Economic Forum (WEF) this week.

This once-niche market subset of decentralised, automated financial products like lending, token/currency swaps and borrowing -- using Ethereum as a base layer -- has exploded in popularity, seeing surging capital inflows and total value locked in smart contracts of more than $80bn by late May 2021.

Clearer regulation would give DeFi (mostly focused on crypto-to-crypto and synthetic assets) the ability to interact more seamlessly with mainstream financial products.

The WEF's policy toolkit for governments could hasten this much-needed move.

The Interest in crypto and DeFi rose sharply during the pandemic and investment has accelerated. While DeFi has the potential to transform the financial system, it lacks a clear policy landscape that could help accelerate benefits and mitigate risks. To help policymakers make sense of these trends and craft appropriate guidance the Forum, alongside a community of international organisations and financial institutions created a framework to evaluate DeFi World Economic Forum, policy toolkit, 8 June 2021

In the past 12 months, the value of digital assets locked in DeFi smart contracts surged over 50x, according to industry data aggregator DeFiPulse. The WEF whitepaper also highlights that in the period from June 2020 to June 2021, the number of DeFi-related applications grew 2,400% from eight to more than 200, while the number of user wallets increased over 10x from 100,000 to over 1.2 million.

Decentralised finance platforms like Aave, Compound and MakerDAO are enabling simple, direct access to common financial services through smart contracts, largely created on Ethereum.

And taxonomy is normally first point of contention for global regulators: as we have seen with cryptoassets more broadly over the last 10 years, every project in the space was generally lumped together as disruptive pseudo-currency, no matter whether it was a security token, utility token, stablecoin, store of value or expansive application of distributed ledger-based technology.

DeFi presents a generational expansion of financial opportunity (and always accompanying risk). This report helpfully provides us with a thoughtful, clear and comprehensive cartography of DeFi so that we can make the most of truly innovative opportunities for financial expansion and novel risk mitigation Michael Mosier, Acting Director, US Financial Crimes Enforcement Network

Fundamentally, DeFi opens up access to lending and borrowing to the millions of people who either don't have traditional bank accounts or are otherwise excluded from the global financial system.

It's just about policymakers taking that understanding of what's new and unique about DeFi and thinking through how to weigh some of those trade-offs and not necessarily shut it down just because it's something they're not familiar with. Sumedha Deshmukh, WEF curator of blockchain and digital assets

Bitcoin legal tender: Policymakers rally around El Salvador bombshell

Financial inclusion for the world's poorest was also the theme of more bombshell news this week, as the President of El Salvador announced he would make Bitcoin legal tender.

Data from the World Bank shows that El Salvador is the 6th-highest ranked country for inbound remittance from the US, making up 21% of the nation's GDP. Remittances back to Low to Middle Income Countries hit a record high of $554bn in 2019, overtaking the rate of Foreign Direct Investments, a crucial form of private investment in domestic companies from overseas.

70% of citizens have no access to a traditional bank account, leaving them at the mercy of intermediaries who charge fees on average of 6.38% of the amount sent, a hugely costly fee for small, regular amounts of money.

The World Bank's latest report on remittance flows, released on 12 May 2021, explains that despite the popularity of remittances, and the growing market size, "in many smaller remittance corridors, costs continue to be exorbitant".

President Nayib Bukele said there would be zero capital gains tax for Bitcoin, as it would be a legal currency under law. In the days following the 5 June news, lawmakers from Panama and Paraguay both revealed proposals to make cryptocurrency part of their formal monetary policy.

This is important and Panama cannot be left behind. If we want to be a true technology and entrepreneurship hub, we have to support cryptocurrencies. We will be preparing a proposal to present at the Assembly. Gabriel Silva, Congressman, National Assembly of Panama

Paraguayan deputy Carlos Rejala too defended the potential adoption of bitcoin and cryptocurrencies, adding that his country could benefit from a formal adoption of digital assets, not just from sending remittances but improving inbound investments. According to Rejala, Paraguayan GDP could increase to double digits if Bitcoin-related companies started investing in the country. Endorsements from Argentinian and Brazilian politicians soon followed, with congressmen across the politican spectrum supporting the El Salvadorian position.

Institutions drive for more crypto access as ETPs launch

In the same week that ETC Group listed the first ever crypto ETP in the UK, institutions continued their quest for greater allocation to Bitcoin, Ethereum, Litecoin and other digital assets. On the Aquis Exchange, security and liquidity for ETC Group's products is assured by central counterparty clearing, provided by SIX x-clear.

And parsing a new swathe of SEC filings we can see that institutional investors show no sign of backing away from cryptoassets. If anything, more are seeking multi-year access to this new asset class.

On 2 June 2021 the $270bn Guggenheim fund notified the US market regulator it would begin investing in Bitcoin and other cryptoassets through its Active Allocation Fund.

We also saw confirmation via a filing for feeder fund USCA All Terrain that a notable $13.7bn hedge fund had begun taking both long and short positions in digital assets.

Global macro fund, Brevan Howard [has] begun trading in cryptocurrencies such as Bitcoin to complement the dozens of other assets in which they invest... SEC filing, 7 June 2021

On the same day,MicroStrategy (NASDAQ:MSTR) announced a private institutional offering for another $400m in senior secured notes to buy more bitcoin, to add to the 92,709 BTC it already holds in treasury reserves.

And there are rapid moves now to counter ESG concerns highlighted by the energy use of Bitcoin's proof of work consensus mechanism.

Square (NASDAQ:SQ), the crypto payments firm founded by Jack Dorsey, has partnered with Blockstream to build a solar-powered cryptoasset mining farm. Square announced on 5 June it would invest $5m in the mining farm as part of its Bitcoin Clean Energy Initiative. The facility will be a "proof of concept for 100% renewable energy Bitcoin mining at scal", Blockstream said, adding that information on operational costs and ROI would be open to the public.

The $100bn market cap Square has the third-largest public company accumulation of bitcoin on its balance sheet, with 8,027 BTC reported.

ETH, LTC accumulation accelerates

Ethereum remained the most trusted cryptoasset this week, with institutional flows pouring $33.1m net inflows towards ETH ETPs and funds, while pulling $141m net outflows away from BTC, according to industry data from Coinshares.

Only one product provider, ETC Group, saw statistically significant inflows in the last week, at $33m, while Grayscale inflows were net zero, Coinshares added $6.6m of inflows and the Canadian Bitcoin ETF provider Purpose Investments saw $9.8m of inflows across the week. 3iQ, which manages bitcoin and ether funds listed on the Toronto Stock Exchange, saw the largest net outflows with over $187m leaving its crypto fund products in the past seven days.

The smart money in crypto continues to hold, according to Chainalysis Market Intel . ETH held for 52+ weeks experienced the largest one-week increase in 6 weeks, increasing by 105,100 ETH to 45.1m ETH, while LTC held for 52+ weeks saw the largest one-week rise in 14 weeks, climbing 20,800 LTC to 30.74m LTC

The longer assets are held, the more likely it is that holders are using the asset as a store of value.

This indicates that recent sell-offs in ETH and LTC have hit day traders and the most recent entrants holders the hardest. The data shows that assets that were held for the shortest amount of time since the recent market top, with ETH above $4k and LTC higher than $300 a coin, were being sold for a loss.

Markets

BTC/USD

Markets seemed uncertain as to whether Bitcoin remained in a bullish or bearish state this week, starting near $38,000 and climbing to attempt a retake of $40,000. Later in the week that momentum stalled as prices dipped to a low of $31,272.41, before bouncing higher to finish the week at $32,233.44. Traders are keenly focused on Bitcoin's 21-day exponential moving average to see where the line will run to next.

BTC/USD graph
Data as of 8 June 2021 | Source: TradingView

ETH/USD

Ethereum fared a little better than its number one rival this week, having recaptured territory in the mid-$2,000s, but mostly traded sideways. Prices began at $2,637.32, dipping 12.3% at the most to bounce off $2,310.49, and adding 5.7% from that low to end the week approaching $2,500. That ETH has been able to find support around the levels that kickstarted its April 2021 run to $4,000 and beyond will be of some succour to traders, but there is much disagreement among them about whether macro sentiment has turned sour or remains largely positive.

ETH/USD graph
Data as of 8 June 2021 | Source: TradingView

LTC/USD

Very little happened in quiet Litecoin markets this week. Volatility disappeared as prices trended flat, edging up towards the $200-mark before slipping down 18.7% to finish at $155.86. One thing worth noting: this level is still comfortably 20% above its May 2021 lows of $121.90.

LTC/USD graph
Data as of 8 June 2021 | Source: TradingView

Disclosure | Copyright © 2022 ETC Group. All rights reserved

Browse through related content