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Bitcoin Set to Rise Beyond $70,000 in ‘Coming Weeks,’ Experts Say

Bitcoin Set to Rise Beyond $70,000 in ‘Coming Weeks,’ Experts Say

Bitcoin’s price surge shows no signs of slowing down, with some predicting a breach of the $70,000 price tag in the coming weeks.

The world’s largest crypto is currently trading at over $67,600 after swelling to highs not seen since the beginning of August, CoinGecko data shows.

Yet is the current rally sustainable?

According to Jonathan de Wet, chief investment officer at Zerocap, Bitcoin’s upward momentum remains robust, he opined in an investor note on Wednesday.

 “We see [Bitcoin] at $70,000 in the coming weeks,” de Wet stated, pointing to a technical breakout providing a solid foundation for further gains.

Several tailwinds are beginning to converge, including political developments in the U.S., fueling optimism over favorable policy geared toward the crypto industry.

Republican nominee and former President Donald Trump has vowed to make the U.S. the world’s crypto capital, alongside protecting users’ right to custody their assets.

Democratic nominee and current Vice President Kamala Harris, meanwhile, has promised to create rules of the road for crypto while attempting to foster innovation.

Trump’s plans to create a Bitcoin reserve could mark a turning point for crypto regulation, Anndy Lian, an intergovernmental blockchain expert, told Decrypt.

“This political backing could lead to a more favorable regulatory environment, boosting investor confidence and demand,” Lian said.

Lian believes Bitcoin will reach its all-time high next week, driven by global monetary policies, including extensive rate cuts by major central banks that could boost risk assets, including crypto.

Still, questions linger over China’s economic strife, de Wet said, which includes soaring local government debt, slow growth, and weak demand for goods and services.

The world’s second-largest economy has vowed to inject hundreds of billions of dollars through stimulus measures to kickstart its stock market and spur demand.

There’s also concerns surrounding geopolitical tensions in the Middle East as the region remains a dominate player in energy production and trade suppy chains.

However, traders have nothing to fear from that end if BitMex co-founder Arthur Hayes’ musings turn out to be right.

 

Source: https://decrypt.co/286814/bitcoin-rise-beyond-70000-coming-weeks-experts-say

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
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Understanding Abu Dhabi’s Rise as a Cryptocurrency Hub

Understanding Abu Dhabi’s Rise as a Cryptocurrency Hub

Insights

What makes Abu Dhabi a preferred destination for cryptocurrency enterprises?

As mentioned by Anndy Lian in the article, he said that Abu Dhabi's appeal to cryptocurrency enterprises stems from its comprehensive and forward-looking regulatory approach to crypto assets, a business-friendly environment, strategic geographic positioning, and a high quality of life.

What role does the Abu Dhabi Global Market (ADGM) play in the rise of Abu Dhabi as a crypto hub?

ADGM, as an international financial center, provides a regulatory framework modeled after English and Welsh common law. The Financial Services Regulatory Authority (FSRA) within ADGM spearheaded cryptocurrency regulation, offering clarity on various crypto activities and aligning with international standards.

How has Abu Dhabi attracted prominent crypto entities like Kraken and Paxos?

Abu Dhabi's regulatory framework and business-friendly incentives, such as a tax-friendly regime, 100% foreign ownership, and strategic geographic positioning, have attracted leading crypto entities like Kraken and Paxos to establish operations in ADGM.

What challenges does Abu Dhabi face in becoming a cryptocurrency hub, and how does it address them?

Abu Dhabi faces challenges such as crypto market volatility and competition from other jurisdictions. To address these challenges, a vigilant and adaptable approach from both crypto companies and regulators is deemed vital for fostering a resilient and thriving crypto sector.

How does Abu Dhabi compare to other jurisdictions, particularly Dubai, in terms of crypto regulations?

Comparisons between Abu Dhabi and Dubai highlight differences in regulatory perspectives, with concerns about the Virtual Asset Regulatory Authority (VARA) in Dubai. Clear, consistent policies and resource optimization are seen as crucial for Abu Dhabi to maintain its position as a leading crypto hub amidst competitive pressures.

 

Abu Dhabi, the capital and the most expansive emirate of the United Arab Emirates, is swiftly becoming the preferred destination for cryptocurrency enterprises within the region and globally. This rise to prominence is the result of the emirates’ comprehensive and forward-looking regulatory approach to crypto assets, which has drawn industry heavyweights. Coupled with a business-friendly environment, a geographically strategic position, and a superior quality of life, Abu Dhabi presents a compelling case for investors and entrepreneurs in the cryptocurrency domain.

Central to Abu Dhabi’s distinctive appeal is the Abu Dhabi Global Market (ADGM), an international financial center and free zone established on Al Maryah Island. Inaugurated in 2013 and operational since 2015, ADGM offers an extensive suite of financial and ancillary services to both local and international firms. It boasts an autonomous legal framework modeled after English and Welsh common law and is regulated by its own Financial Services Regulatory

The FSRA has spearheaded cryptocurrency regulation in the Middle East, unveiling the region’s inaugural exhaustive regulatory framework for crypto assets in June 2018. This pioneering framework comprehensively governs the full spectrum of crypto asset activities, encompassing issuance, trading, custody, and brokerage services, while addressing the predominant risks such as money laundering, terrorism financing, consumer protection, market integrity, and technological governance. Furthermore, the FSRA provides regulatory clarity on initial coin offerings (ICOs) and stablecoins and aligns with international standards and best practices in the sector.

By understanding Abu Dhabi’s unique positioning and proactive stance, we can better comprehend its ascent as a crypto hub and its implications for the broader financial landscape.

Abu Dhabi’s crypto regulatory framework has garnered significant acclaim and attention from the crypto community. Its comprehensive rules provide clarity and confidence for crypto businesses operating within Abu Dhabi, fostering an environment ripe for innovation and growth in the sector. This flexibility is conducive to emerging technologies and business models, from decentralized exchanges to tokenization platforms and digital asset funds. Regulatory authorities have developed a symbiotic relationship with the industry, ensuring a continuous exchange of insights and support throughout the regulatory and supervisory process.

This visionary approach has led numerous prominent crypto entities to establish their operations in ADGM. Notable among them, Kraken, a preeminent crypto exchange, became the first international virtual assets exchange group in the UAE to obtain a comprehensive financial license from ADGM in 2022. Similarly, Paxos, a leading blockchain infrastructure platform, received in-principle approvals from FSRA, positioning it to innovate within ADGM’s dynamic framework.

Additionally, Copper, a distinguished crypto custody and brokerage firm, plans to inaugurate a digital securities brokerage using blockchain technology in 2024 after obtaining the necessary FSRA endorsements.

These instances underscore Abu Dhabi’s emerging prominence as the regional hub of choice for the crypto industry, with expectations for increased migration of similar firms shortly.

Moreover, Abu Dhabi’s appeal as a crypto haven extends beyond its regulatory landscape. As one of the globe’s most affluent and stable nations, boasting a GDP of $508 billion and a per capita income of $87,729, the emirate has a multifaceted economy with strengths across various sectors, including energy, aerospace, tourism, and healthcare. Home to some of the world’s largest sovereign wealth and private investment firms, Abu Dhabi is a powerhouse of capital.

Businesses in ADGM benefit from an array of incentives: a tax-friendly regime with no corporate, personal, or withholding taxes, and exemption from VAT for financial services; 100% foreign ownership with unfettered capital and profit repatriation; world-class infrastructure; strategic geographic positioning for market access across Asia, Africa, and Europe; and an advantageous time zone.

Coupled with a high quality of life, cosmopolitan culture, and a spectrum of lifestyle amenities, Abu Dhabi is an increasingly compelling choice for crypto companies seeking to broaden their international presence and leverage the burgeoning opportunities across the region and beyond.

Abu Dhabi’s emergence as a pivotal cryptocurrency hub in both the UAE and the wider MENA region is a testament to its holistic regulatory landscape and conducive business environment. The emirate’s strategic location augments its appeal, drawing leading crypto companies worldwide and nurturing a dynamic, multifaceted crypto ecosystem. Abu Dhabi’s commitment to innovation and its aspiration to be at the forefront of the crypto sector is evident in the progressive policies it has implemented.

However, Abu Dhabi’s ambitions are not without challenges. The crypto market is notorious for its volatility, presenting a spectrum of risks that could impact the emirate’s crypto businesses and investors. Such challenges are not unique to the country; they reflect broader uncertainties inherent in the global crypto landscape.

Competing jurisdictions vie for the attention of crypto enterprises with varying regulatory climates, potentially offering more appealing conditions. Within the region, the comparison between Abu Dhabi and Dubai often surfaces, particularly regarding the application and enforcement of crypto regulations. There are concerns that the Virtual Asset Regulatory Authority (VARA) in Dubai may not have the necessary resources or clarity in its guidelines, underscoring the need for unequivocal and stable regulations.

These hurdles necessitate vigilant oversight and an adaptable stance from both crypto companies and regulators in Abu Dhabi. A pragmatic and balanced approach is vital to fostering a resilient and thriving crypto sector within the emirate.
Abu Dhabi’s regulatory framework, spearheaded by the Abu Dhabi Global Market (ADGM) and the Financial Services Regulatory Authority (FSRA), is commendable for its inclusive approach to crypto asset regulation. This approach has placed Abu Dhabi on the map as an inviting destination for global crypto enterprises, and its economic landscape is equally alluring. The emirate’s diverse economy is supported by substantial investments from some of the world’s largest sovereign wealth funds. The business environment, characterized by tax incentives, full foreign ownership, and exemplary infrastructure, is strategically poised to attract crypto companies looking to scale their operations.

Yet, to maintain its trajectory as a crypto hub, Abu Dhabi must navigate the market’s inherent unpredictability and the competitive pressures from other jurisdictions. The contrasts in regulatory perspectives between Abu Dhabi and Dubai highlight the necessity for clear, consistent policies and the optimization of resources.

For Abu Dhabi to continue its rise in the crypto domain, a strategy that embraces vigilant regulation and the flexibility to adapt to the market’s evolving dynamics is essential. Such a strategy will secure Abu Dhabi’s position as a crypto haven and cement its stature as a global leader in the digital economy.

 

 

 

Source: https://intpolicydigest.org/understanding-abu-dhabi-s-rise-as-a-cryptocurrency-hub/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Anndy Lian: The Rise of Crypto ETFs and Regulatory Considerations

Anndy Lian: The Rise of Crypto ETFs and Regulatory Considerations

Crypto assets have been gaining popularity and legitimacy in recent years, attracting the attention of investors, regulators, and policymakers worldwide.

One of the most significant developments in the crypto space is the emergence of crypto exchange-traded funds (ETFs), which are investment vehicles that track the performance of a basket of crypto assets or related products.

Crypto ETFs offer several advantages for investors who want to gain exposure to the crypto market without dealing with the technical and operational challenges of buying, storing, and securing crypto assets directly. They also provide more liquidity, transparency, diversification, and tax efficiency than other forms of crypto investment.

However, several regulatory challenges and uncertainties may limit their growth potential and market acceptance. I will explore the rise of crypto ETFs, their mechanics, regulatory hurdles, and their potential to reshape the investment landscape.

What is a Crypto ETF and How Does It Work?

An ETF is a type of fund that trades on a stock exchange like a regular stock. It typically holds a portfolio of assets that track an underlying index or benchmark, such as a stock index, a commodity, a currency, or a sector. Investors can buy and sell shares of an ETF through a broker or an online platform, just like any other stock.

A crypto ETF is a type of ETF that tracks the performance of a basket of crypto assets or related products. There are different types, depending on how they obtain exposure to the crypto market. Some examples are:

  • Physical-backed crypto ETFs: They hold actual crypto assets in custody and issue shares that represent a proportional ownership of the underlying assets. For example, a Bitcoin ETF would hold Bitcoin (BTC) in a secure vault and issue shares that reflect the value of Bitcoin.
  • Futures-based crypto ETFs: They use futures contracts or other derivatives to gain exposure to the price movements of crypto assets without holding them directly. For example, a Bitcoin futures ETF would buy and sell Bitcoin futures contracts on a regulated exchange and issue shares that reflect the value of the contracts.
  • Synthetic crypto ETFs: They use swaps or other complex financial instruments to replicate the performance of crypto assets without holding them directly or indirectly. For example, a Bitcoin synthetic ETF would enter into an agreement with a counterparty to exchange the returns of Bitcoin for another asset or index.
  • Crypto-related ETFs: They invest in companies or sectors that are involved in or benefit from the development and adoption of crypto assets and technologies. For example, a blockchain ETF would invest in companies that provide blockchain solutions or services.

Why are Crypto ETFs Popular?

They are popular because they offer several benefits for investors who want to access the crypto market in a convenient and cost-effective way. Some of these benefits are:

  • Liquidity: Trade on regulated stock exchanges with high volumes and low spreads, which means investors can buy and sell them easily and quickly at any time during market hours. This contrasts with buying and selling crypto assets directly on unregulated or illiquid platforms, which may involve delays, fees, or risks.
  • Transparency: Disclose their holdings, fees, and performance on a regular basis, which means investors can monitor their investments and make informed decisions. This contrasts with buying and selling crypto assets directly on platforms that may lack adequate disclosure or oversight.
  • Diversification: Allow investors to diversify their portfolios across different types of crypto assets or related products, which may reduce their overall risk and volatility. This contrasts with buying and selling individual crypto assets directly, which may expose investors to high concentration risk.
  • Tax efficiency: May offer tax advantages for investors who hold them in certain jurisdictions or accounts. For example, in some countries, investors may defer capital gains taxes on crypto ETFs until they sell them, whereas they may have to pay taxes on every transaction involving direct ownership of crypto assets.
  • Accessibility: Allow investors to access the crypto market without having to deal with the technical and operational challenges of buying, storing, and securing crypto assets directly. For example, investors do not need to set up digital wallets, manage private keys, or worry about hacks or thefts.

What are the Regulatory Challenges for Crypto ETFs?

Despite their popularity and benefits, crypto ETFs also face several regulatory challenges and uncertainties that may limit their growth potential and market acceptance. Some of these challenges are:

  • Lack of global harmonization: Crypto assets and related products are subject to different and evolving regulatory frameworks across different jurisdictions, which may create inconsistencies, gaps, or conflicts for crypto ETFs. For example, some countries may allow or ban certain types of crypto ETFs, while others may have different definitions, classifications, or requirements for them.
  • Lack of clear guidance: Such products are often novel and complex, which may pose difficulties for regulators to understand, monitor, and supervise them. For example, regulators may have questions or concerns about the valuation, custody, liquidity, risk management, or governance of crypto ETFs.
  • Lack of investor protection: They are often volatile, speculative, and risky, which may expose investors to potential losses or frauds. For example, investors may face market manipulation, cyberattacks, operational failures, or counterparty defaults involving crypto ETFs or their underlying assets or products.
  • Lack of market infrastructure: It often relies on emerging or untested technologies, platforms, or services, which may lack adequate standards, safeguards, or interoperability for crypto ETFs. For example, crypto ETFs may face challenges or risks in accessing, verifying, or transferring crypto assets or products across different systems or networks.

What is the Potential Impact of Crypto ETFs?

They have the potential to reshape the investment landscape by creating new opportunities and challenges for investors, regulators, and policymakers. Some of the possible impacts are:

  • Increased adoption and innovation: May increase the adoption and innovation of crypto assets and technologies by making them more accessible and attractive to a wider range of investors, especially institutional and retail investors who may otherwise be reluctant or unable to enter the crypto market directly.
  • Increased competition and integration: May increase the competition and integration between the traditional and crypto financial systems by creating new products and services that bridge the gap between them. For example, crypto ETFs may enable investors to trade crypto assets on stock exchanges or use them as collateral for loans or derivatives.
  • Increased regulation and supervision: May increase the regulation and supervision of crypto assets and related products by bringing them under the purview of existing or new regulatory frameworks and authorities. For example, crypto ETFs may require registration, authorization, disclosure, reporting, auditing, or compliance with certain rules or standards.
  • Increased education and awareness: May increase the education and awareness of crypto assets and technologies by providing more information and resources for investors to learn about them. For example, crypto ETFs may offer educational materials, webinars, podcasts, or newsletters to explain their features, benefits, risks, or performance.

The Bottom Line

Crypto ETFs are a growing phenomenon in the crypto space that offer several advantages for investors who want to gain exposure to the crypto market in a convenient and cost-effective way.

However, it faces several regulatory challenges and uncertainties that may limit their growth potential and market acceptance. They have the potential to reshape the investment landscape by creating new opportunities and challenges for investors, regulators, and policymakers.

Many of my friends are looking forward to the regulated crypto ETFs together with the Bitcoin halving next year. They believe that the real bull run will start from there. Do you feel the same too?

 

Source: https://www.techopedia.com/anndy-lian-the-rise-of-crypto-etfs-and-regulatory-considerations

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j