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_24_2x.jpg
newsletter
Tom Rodgers
Tom Rodgers Head of Research
Share on Share on Linked In Share on Twitter

ETC Group Crypto Minutes Week #24

Tesla CEO drives Tesla back into Bitcoin and Goldman Sachs plans to extend its crypto options for wealthy investors

Global crypto banking regulations dominate

News that the Basel Committee had put forward proposals for worldwide regulations that could help banks to hold, trade and invest in cryptoassets dominated conversations this week. The Switzerland-headquartered global banking watchdog is held up as the gold standard for regulators.

Cryptoassets have had to endure years in the regulatory wilderness, subsisting on region-level or country-specific guidelines. That has made it difficult for major international financial institutions to throw their weight behind the nascent asset class.

Implicit support from the Basel Committee in the form of black and white regulations may just blow those doors wide open. In a paper published on 10 June the regulator said it could fold stablecoins under existing banking regulations, and would consult on the wider treatment of bitcoin and other cryptoassets until 10 September 2021.

In general the Basel Committee’s report and subsequent consultation seeks to split cryptoassets into two broad groups. The first (Group 1) include fiat-backed stablecoins like Tether (USDT) and USD Coin (UDSC), commodity-backed stablecoins (those collateralized using physical assets like real estate, oil or precious metals) and synthetic cryptoassets which represent a claim on securities, including tokenised equities. Group 2 cryptoassets include currencies like bitcoin and litecoin and will be “ subject to a new conservative prudential treatment”. Under the terms of the proposal, banks will need to hold enough capital to cover cryptoasset losses in full.

It was the Basel Committee’s recommendations in the wake of the 2008-09 financial crisis that required banks to hold regulated levels of Tier-1 capital to prevent another major collapse.

Elon drives Tesla back into Bitcoin as energy options go green

Known for roiling near-term equity and crypto markets with the click of a tweet, Elon Musk added an uncharacteristically stable hand this week. The Tesla (NASDAQ:TSLA) CEO dropped his apparent fascination for Dogecoin to reiterate that his electric vehicle giant only sold 10% of its bitcoin holdings “to confirm BTC could be liquidated easily without moving the market”. The company revealed in a Q1 earnings statement that Tesla sold $272m of digital assets, which helped reduce its operating losses by $101m. That would leave $1.33bn of BTC on the car company’s balance sheet, accounting for purchase prices around 8 February 2021.

Musk also hinted at another bite of the cherry for retail investors to use bitcoin for vehicle purchases.

When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing bitcoin transactions. Elon Musk, Twitter, 14 June 2021

That could happen much faster than expected as China’s control of the bitcoin hashrate continues to fall. Xi Jinping’s countrywide crackdown on mining using coal power plants has accelerated in recent weeks, and it is North American mining pools like Foundry USA that are scooping up the proceeds.

US companies like Square have already committed to producing net zero carbon by 2030. Jack Dorsey’s payments company is also behind the Bitcoin Clean Energy Investment Initiative, which supports bitcoin miners developing green energy technologies to accelerate the transition to clean power usage.

ETH grows as Goldman Sachs adds options, futures

Goldman Sachs (NYSE: GS) is to extend its crypto options for wealthy investors by offering options and futures on ETH, the base currency of the Ethereum blockchain. A Monday 14 June Bloomberg exclusive told how the Wall Street giant would add the cryptoasset derivatives to its growing stable of investment choices.

Investors should also watch out for increasing M&A activity in the space, the report noted. Goldman recently led a $15m funding round for crypto data provider Coin Metrics in a deal that saw McDermott join the board of directors.

We are looking at a number of different companies that fit into our strategic direction. Mathew McDermott, head of Digital Assets, Goldman Sachs

The banking giant’s move into Ether follows CME Group offering the first ever regulated ETH futures in February 2021.

Goldman made it clear in a May 2021 report, ‘Crypto: a new asset class?’ that it was targeting Ether as a major source of inflows into digital currencies and the blockchain market more broadly.

Ethereum is widely seen as the most important cryptoasset project in the world. It powers a near-total majority of rapid-growth decentralised finance markets, along with niche subsectors like NFTs, and has birthed a legion of blockchain-based applications. Speaking on a recent podcast with MIT researcher Lex Fridman, Ethereum’s co-creator and figurehead noted why institutional investors are so excited about the blockchain’s future.

[While] Bitcoin is the blockchain for money...Ethereum is built from the start as a general purpose blockchain. There is Ether the asset, but you can also make decentralised financial things [on Ethereum], what we call DeFi today. You can make decentralised domain name systems, you can put prediction markets on it… Vitalik Buterin, 4 June 2021

There is a huge need today for Ethereum’s decentralised smart contract-based innovation. Just one example would be in carbon credit trading markets — which Ethereum’s system of trustless participation, automated execution and free cross-border payments through USD-based stablecoins can achieve.

And as Ethereum looks ahead to its second major iteration, ETH2, the switch to proof of stake, a 99.95% reduction in energy use, and deflationary currency mechanics, investors are grasping the opportunity to gain exposure to the near-$300bn market cap blockchain project.

Markets

BTC/USD

Markets took a turn for the better this week after multiple sessions of bearish price action.

Bitcoin, for its part, gained strongly from Tuesday 8 June’s low at $31,042.17 and on Monday 14 June touched $41,015.62, a 32.1% uplift on the week and its highest price point in nearly a month. By the week’s end, BTC appeared to flip the script to turn the psychologically-important $40,000 level into support from a point of significant near-term resistance. Intraday trading volume is also growing as June progresses.

BTC/USD graph
Data as of 15 June, 2021 | Source: TradingView

ETH/USD

ETH markets remained steady this week with little volatility, and managed to reverse a midweek fall from a starting point of $2,436.09. The dip to $2,261.27 on Saturday 12 June now appears to be a recent bottom, as the programmable blockchain gained 13.6% to top out the week at $2,569.51.

ETH/USD graph
Data as of 15 June, 2021 | Source: TradingView

LTC/USD

The price of Litecoin too bounced strongly from a recent low on Tuesday 8 June, at $145.07. Climbing 25.2% to its weekly high of $181.60 represents the best result for the payments blockchain in some time, and while it couldn’t hang on to this high watermark, LTC finished the week only 5% from its high point at $174.47. In recent weeks the popular blockchain has dipped out of the top 10 cryptoassets by market cap, first leapfrogged by Bitcoin Cash, Solana and Chainlink. However, given this recent strength, its $11.62bn valuation — at time of writing — has overtaken those latter two competitors and is now closing in on BCH.

LTC/USD graph
Data as of 15 June, 2021 | Source: TradingView

Disclosure | Copyright © 2022 ETC Group. All rights reserved

Browse through related content