The new cryptocurrency tax policy is now active and has led to a significant drop in trading volumes on major Indian crypto exchanges. Since the overall market is moving upwards, it is likely that activity has shifted to the gray market to avoid taxation.
The pressure on the SEC is increasing
Michael Sonnenshein, CEO of the world’s largest digital asset management firm, Grayscale, mentioned in an interview that he may sue the SEC if his request to convert his Bitcoin trust into a Bitcoin ETF is denied. This comment could come from frustration, as Grayscale’s GBTC, which has over $30.6 billion in assets under management, is trading at a discount of around 25% to its NAV (net worth of inventory).
GBTC was trading at a premium (above NAV or fund NAV) primarily due to the lack of an alternative institutional investment vehicle for Bitcoin. However, this has changed significantly. This can be attributed to increased competition and the extremely high fixed management fee of 2% making Gbtc (not Bitcoin) undesirable.
A Bitcoin spot ETF could be the next catalyst for mass adoption because an ETF breaks down the complexity barrier. The investor does not need to know about hardware wallets, crypto exchanges and anything technical. All he has to do is buy the publicly available ETF and it’s in Grayscale’s best interest to see that happen.
The $600 million hack
The gaming industry is a multi-billion dollar industry. It is one of the first industries to jump into the crypto space and Axie Infinity is spearheading it. Unfortunately, Axie Infinity’s Ronin network was exploited and a staggering $600 million in Ethereum and USDC was stolen. The hack was possible thanks to a certain level of centralization on the Ronin chain. It had nine validating nodes responsible for verifying deposits and withdrawals. The hacker had access to 5 nodes to sign his transactions. The interesting part of the hack was that it went unnoticed for a week.
Cardano is making a comeback
Since Cardano’s smart contract update went live in late 2021, the price of ADA has plummeted. This can be attributed to the lack of activity within the network. However, things are starting to turn for Cardano as the TVL or Total Value Locked has increased almost 100x since the start of the year. As a bonus, “Coinbase” just allowed people to stake their Cardano through their exchange. This means that all Cardanos collecting dust on their Coinbase wallets can earn passive income, thereby removing more and more Cardano from exchanges.
We would like to say thanks to the writer of this write-up for this outstanding content
Crypto Week At A Glance: New Tax Laws Lead To A Sharp Drop In Trading Volume
Find here our social media profiles and other pages that are related to them.https://metfabtech.com/related-pages/