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
Cet article n’est disponible qu’en anglais
/blog/thumbnails/weekly_29_2x.jpg
newsletter
Tom Rodgers
Tom Rodgers Head of Research
Partager Share on Linked In Share on Twitter

ETC Group Crypto Minutes Week #29

China's obliteration of its Bitcoin industry will cause the largest wealth transfer in crypto history, while central bank 'addiction' to money printing could overwhelm the global economy.

Bitcoin hashrate rebounds as US, Europe welcome fleeing Chinese miners

The Bitcoin hashrate is a key security metric. In essence, this is the speed at which mining computers run algorithms to compete for new bitcoin. The number of hashes performed by mining machines is a direct way of knowing how much energy is being expended in keeping the golden copy of the Bitcoin transaction ledger safe and up to date. And so the more hashpower leveraged across the network, the greater its security and the greater resistance it has to being attacked.

On May 13 2021 the Bitcoin hashrate peaked at an all time high of 180.66 Th/s. Within 7 weeks, by 3 July, it had plummeted more than half to 84.79 Th/s. This was a level first surpassed in September 2019 and not seen in the 18 months since.

China's crackdown is the key.

As noted by one well-placed analyst, China's recent obliteration of its own vast bitcoin mining industry was not a mere war of words, it was harsher and more deliberate than any state-run campaign in history.

There were a lot of talks in 2018-2019 but there wasn't anything seriously enforced. But this time it seems like there's no way to go back. Banks are cutting funding channels for OTC desks. The other side is the energy angle...that's why we see Shenzhen shutting down power supplies to bitcoin mining farms. Wolfie Zhao, Asia Editor, The Block

In the weeks since, hashrate has recovered by 20% to reclaim 100 Th/s. Miners have been fleeing to more friendly jurisdictions in the US and Europe, with those regions snapping up larger proportions of the new bitcoin created by successfully mining blocks of transactions.

A higher hashrate is an indication of a healthier network, and a determiner of positive sentiment, in that miners are investing in more powerful equipment. Both of these factors can be a frontrun indicator of higher future Bitcoin values.

Found raised in US IPOs

Figures from the Cambridge Bitcoin Electricity Consumption Index, from April 2020, show that China controlled 65% of the Bitcoin hashrate. The second-largest region was the US with 7.24%.

The balance of these figures has shifted immeasurably in the 12 months since. More recent figures updated by researchers show that Chinese hashrate share had dropped to 46% by April 2021, with the US the largest gainer at 16.85%. In third place was Kazakhstan with over 8% of the Bitcoin hashrate. At the time Canada controlled 3%, while Ireland had 2.27%.

Found raised in US IPOs

On 16 July China published the whitepaper for its central bank digital currency, the e-CNY. It cited speculation as the main driver for the crackdown on Bitcoin trading, banking and mining across the state.

This opens up an unprecedented opportunity for miners to profit, most notably in the US, Kazakhstan and Western Europe.

Our interpretation is that the insistence of the Chinese state in abandoning Bitcoin will predicate the largest wealth transfer in crypto history.

Central banks 'addicted' to QE, Lords warn

The UK's upper chamber, the House of Lords, has warned in a harsh report that the Bank of England is 'addicted' to printing money through quantitative easing.

Throughout the pandemic, this once-emergency measure employed only in dire circumstances has become accepted standard practice. As a result, the price of equities, real estate and other traditional assets have become grossly inflated.

Peers said the bank must be more transparent about how it was going to tail off its ?895bn money-printing and bond buying programme without impacting inflation and damaging the economy.

Most major central banks, including the US, UK, Eurozone, Sweden, Switzerland and Japan all have ongoing QE programmes. The Federal Reserve launched unlimited asset purchases - dubbed 'QE infinity' - in March 2020. Since then, central bankers have often purchased more bonds in weeks than during entire QE programmes lasting years.

In the report the former committee chairman Michael Forsyth warned that central banks faced losing public confidence if it became clear that they were using QE to shore up economies with no end date in sight, and printing money to finance day-to-day government spending.

[The Bank] could lose credibility destroying its ability to control inflation and maintain financial stability. QE appears to be the answer to all the country's economic problems. The Bank must be more transparent, justify the use of QE and show it's working. The Bank needs to explain how it will curb inflation if it is more than just short term. It also needs to do more to mitigate widening wealth inequalities that have resulted from rising asset prices caused by QE. Michae Forsyth,chair, UK Economic Affairs Committee

In June the Federal Reserve's balance sheet hit an unprecedented $8 trillion

This milestone should be a reminder that...the Fed may soon start reducing, or "tapering," the $120 billion a month it has been pumping into the financial system since the start of the pandemic. Robert Burgess,Bloomberg Opinion

On the opposite side of the fence, Bitcoin fundamentals remain programmatically sound: a deflationary asset with a fixed supply that will continue to reduce its issuance every four years until 2140.

Rafael Schultze-Kraft, a lead analyst for Glassnode, reminds us of this fact.

Bitcoin simply continues to work as intended, securely producing block after block, like clockwork, following a deterministic supply schedule.

Markets

BTC/USD

Bitcoin market-watchers saw a steady decline this week, starting at $32,970.38 and slipping to less than $30,000 by 20 July. That, however, marked a clear inflection point as traders rallied to buy the dip, climbing 5.7% to end the week at $30,962.41. $28,775 remains the yearly low, reached on 22 June 2021 in the wake of China's crackdown on mining, and near-term support appears to be strong on higher volumes around the $30,000-mark.

BTC/USD graph
Data as of 13 July 2021 | Source: TradingView

ETH/USD

Ethereum volatility shrunk this week as bears fought with bulls for control, tipping Ether to a weekly high of $2,032.62 before weakening 15.5% to a low of $1,718.11. From this point the native currency of the programmable money blockchain climbed almost 10% to finish the week at $1,883.69. In the near term all eyes are on whether the psychologically-important $2,000 level will turn into support or resistance.

ETH/USD graph
Data as of 13 July 2021 | Source: TradingView

LTC/USD

Litecoin markets approached the $100 lows seen at the end of June, as sentiment indicators shifted bearish, at least in the short-term. The payments protocol found little support across the week, sliding gently from a $132.38 start to finish the week 13.9% lower at $113.90. One bullish point would be that traders expressed no appetite for LTC to dip below $103, rebounding 10.0% to finish this week's session.

LTC/USD graph
Data as of 13 July 2021 | Source: TradingView

Disclosure | Copyright © 2022 ETC Group. All rights reserved

Plus d'articles