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_27_2x.jpg
newsletter
Tom Rodgers
Tom Rodgers Head of Research
Share on Share on Linked In Share on Twitter

ETC Group Crypto Minutes Week #27

Bitcoin markets reach a whale-sized turning point, EY adds Layer 2 tech for ETH and institutional DeFi begins

Bitcoin whales return, cryptoasset inflows for first time in 9 weeks

Investors are again pouring money into cryptoassets for the first time in nine weeks, suggesting a positive upturn in market sentiment.

Regulated investment products in cryptoasset ETPs and ETFs saw net inflows of $63m in the past week after more than a month of net outflows, according to CoinShares data.

Over a third of these net inflows came into ETC Group products, which include the 100% collateralized and redeemable Physical Bitcoin (BTCE), Physical ETH (ZETH) and Physical Litecoin (ELTC). On 2 July BTCE became the first Bitcoin ETP to offset its carbon footprint, compensating for the CO2 equivalent emissions associated with Bitcoin mining and transactions

For the first time in five weeks digital asset investment products saw inflows totalling $63m last week. And for the first time in nine weeks, inflows were seen across all individual digital asset implying a turnaround in sentiment amongst investors. CoinShares, Digital Asset Inflows Report, 5 July 2021
CoineShares

Additionally, data pulled from public blockchains shows that Bitcoin 'whales', the wealthiest investors in the space, are aggressively adding Bitcoin to their portfolios.

The number of coins held by the richest participants — those with between 1,000 BTC and 10,000 BTC ($34.2m to $342m) — spiked to a two-month high, according to data analytics provider Glassnode.

glassnode graph

Wealthy investors played a key role in moving bitcoin prices from $10,000 to over $60,000 in the five months to May 2021.

Renewed accumulation by the market's wealthiest participants is seen as a bullish sign for markets going forward, and the number of these large entities jumped to a three-week high of 1,922, Coindesk reported.

EY releases public ETH Layer 2 scaling solution

On 1 July global accounting giant EY released a public zero-knowledge (zk) layer 2 Ethereum scaling solution to tackle the blockchain's cost base for transactions. .

The EY code, called Nightfall 3 - which is freely available on Github - aggregates or 'rolls up' transactions into groups, removing the need for them to be processed on the underlying Ethereum Layer 1 blockchain.

Along with sharding (splitting computing load across sidechains), zk-rollups are one of the most promising technological updates coming in the ETH2 roadmap.

This update is denoted 'optimistic' because it assumes that transactions are valid unless specifically proven otherwise. This lightens processing requirements, and with it gas costs, by removing the need for validation from all nodes and participants.

We Based on EY experience, zk-Optimistic rollups are currently among the most effective in balancing security incentives and mathematical efficiency for running private transactions on the public Ethereum network. Paul Brody, EY Global Blockchain Lead, 1 July 2021

EY first began releasing zero-knowledge protocols for Ethereum into the public domain in October 2019. The continued deployment of EY's substantial development resources into increasing the efficiency of Ethereum transactions is indicative of wider structural interest in DeFi.

In early March 2021, for example, Ethereum won a huge seal of approval from Amazon Web Services when the internet utility giant announced the general availability of Ethereum on Amazon Mananged Blockchain.

Unlike the Bitcoin network, which in the main can only process one asset (BTC), on Ethereum many thousands of assets can be wrapped into ERC-20 tokens and moved around on-chain. That includes Wrapped Bitcoin (WBTC), a representation of Bitcoin on Ethereum.

We The popular narrative is that Bitcoin is [still a] good store of value if you're worried about inflation, or if you're in an emerging market it will hedge against currency collapse, but if you want to do anything that's very familiar to people on Wall Street like trade derivatives or create things that resemble equity or debt then they are all super hyped about building on Ethereum, that's where the zeitgeist is right now. Joe Weisenthal, Bloomberg Odd Lots podcast, 1 July 2021

First regulated DeFi market for institutions - Germany leads again

Banks, audit and account networks and professionals spanning the whole gamut of traditional financial services are becoming increasingly interested in the promise of DeFi.

And this week we saw what is understood to be the first regulated DeFi exchange for institutions.

After a long gestation period, Germany's Swarm Markets became the first decentralised exchange to launch under the supervision of BaFin, the German market regulator. It goes live with $15 million in pledged liquidity.

People are looking for ways to make their collateral work for them but need to operate in a trusted and secure environment that suits their compliance needs. We see regulation as necessary for the evolution of DeFi as opposed to it being a limiting factor. Instead of reinventing the wheel, we've applied existing German regulation to DeFi markets. This regulatory layer will give enough assurances and protections to allow capital and assets into the ecosystem that have been sitting on the sidelines for far too long. Philipp Pieper, co-founder, Swarm Markets, 1 July 2021

Despite declining from a mid-May peak, there still remains over $50bn of cryptoasset value locked in DeFi smart contracts, according to industry aggregator DeFiPulse.

And Germany has long been at a pioneer for institutional crypto adoption and regulation, with scores of banks scrambling to apply for licenses to custody cryptoassets since the floodgates opened on 1 January 2020.

An amendment to the fourth EU Money Laundering Directive meant that financial institutions could handle and store cryptocurrencies by arranging a license with the securities regulator BaFin.

When the Bundesrat Federal Council passed the new law on 29 November 2019, the upper house of the country's Parliament released a new source of custom for the country's 1,900 financial institutions. Interestingly enough, Germany has more banks per capita than any other European country - more than Switzerland certainly, which is considered the banking capital of the bloc. Serving its 83 million population are around 200 private banks, 400 savings banks and 1,100 credit unions.

Global ETP providers like ETC Group, VanEck and WisdomTree have consistently chosen Germany's B?rse Xetra as their preferred listing venue for regulated, central counterparty cleared cryptoasset products, since ETC Group pioneered the way onto Deutsche B?rse XETRA, Europe's largest ETF trading venue, with the listing of the world's first centrally cleared Bitcoin ETP in June 2020. One year later, in June 2021 the German arm of Coinbase (NASDAQ:COIN) became the first non-bank institution authorised to provide cryptoasset custody in Germany.

Markets

BTC/USD

Bitcoin buying continued in force this week, supporting a near 7.5% upturn in the flagship cryptocurrency's fortunes, beginning at $34,117.45 and peaking to resistance just above $36,600. Near-term upside towards $40,000 remains limited by this ceiling, although bitcoin prices have defended higher lows since the mid-June dip to $29,000.

Data as of 6 July 2021 | Source TradingView

ETH/USD

Ether posted wide gains against the US dollar this week, supported by a move back into a relative position of strength above $2,000, after a several weeks of posting lower lows and dipping towards the $1,700 mark. Beginning at $2,118.30, ETH added 12.8% across the seven days to claim $2,389.56 before sliding back 4.5% to end the week at $2,280.95. The midway point to $3,000 appears the most likely near-term resistance/support point. The native currency of the programmable money blockchain first reached this milestone on 15 April 2021 on its bull run to over $4,300 and has not been that high since falling through this level on 16 June 2021.

Data as of 6 July 2021 | Source TradingView

LTC/USD

Price volatility decreased significantly in Litecoin markets as the payments protocol held its position to end the week net flat. From $135.79, LTC posted single digit gains to reach $149.00, before sliding back to neutral at $135.60. It did, however, continue its recent trend of hitting higher lows from the recent capitulation to under $105 on 22 June 2021.

Data as of 6 July 2021 | Source: TradingView

Disclosure | Copyright © 2022 ETC Group. All rights reserved

Browse through related content