Crypto Market Resurgence Signals Potential Bull Run

11.15.2023

Wave Leadership Thoughts 

With the broader market finally trending up, a resurgence of activity is sparking investor optimism, hinting at a potential bull market on the horizon. Ethereum’s daily volume has soared to $3.2 billion, reminiscent of the March meme coin frenzy. This surge reflects growing investor confidence and a dynamic shift in market trends.

A notable trend is the increasing preference for DeFi projects to raise funds through DAOs, like Alfa DAO, rather than traditional venture capital firms. This shift is driven by the desire for fairer valuations and the avoidance of the predatory practices often associated with venture firms, which tend to offload tokens quickly. Raising funds through DeFi also offers the advantage of anonymity and bypasses the need for formal entity registration, aligning with the decentralized ethos of the crypto space.

The emergence of Real World Asset (RWA) protocols is reshaping the crypto landscape, offering a fresh perspective on asset tokenization. Among these, Uranium3o8 is an upcoming project that serves as a prime example. It focuses on converting uranium into a tradable digital asset, illustrating the broader trend of integrating tangible assets into the blockchain. This development in RWAs signifies a significant shift, blending the physical with the digital, and paving the way for more diverse and tangible investment opportunities within the crypto ecosystem. Such initiatives are key to the evolving dynamics of asset management, demonstrating the potential of RWAs in modern finance.

Finally, the rise of Telegram trading bots like Banana Gun and Maestro signifies a shift in trading practices. With Uniswap’s implementation of a 0.15% trading fee on its front end, users are increasingly turning to automated trading tools for convenience and efficiency. These bots have gained significant traction, indicating a broader trend towards automated, user-friendly trading solutions in the crypto market.

Latest News:

WELCOME FRIENDS: Hundreds of institutions and prominent individuals have invested directly in crypto, adopted the value thesis, or started building technology to support digital assets since Wave started tracking these developments in late 2020. Now the rise of the Metaverse, Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), and Decentralized Autonomous Organizations (DAOs) is driving mainstream adoption of blockchain technologies everywhere we look. We’re continuing to keep track of it every week here:

• Switzerland’s fifth largest cantonal bank, St. Galler Kantonalbank (SGKB), has partnered with SEBA Bank to launch bitcoin and ether custody and trading services. SGKB plans to expand its digital asset offerings based on client demand. SEBA Bank will provide digital asset brokerage and custody services for SGKB. This move marks SGKB’s entry into the digital asset space and aims to help its clients integrate cryptocurrencies into their existing investment portfolios.
• Blackrock’s plans for a spot Ether ETF have now been confirmed, per a 19b-4 form filing submitted to the U.S. SEC on Nov 9. Nasdaq filed the 19b-4 form with the securities regulator on behalf of the $9-trillion asset management firm for a proposed ETF called the “iShares Ethereum Trust.” The move signals BlackRock’s intention to expand beyond Bitcoin with its ETF aspirations. ETH increased 13% on Thursday in response.
• Multinational banking firm JPMorgan has rolled out a programmable payment feature for institutional users of its private blockchain platform JPM Coin. The capability is said to enable real-time, programmable treasury functionality and new digital business models.

REGULATORY ROUNDUP: We’re living through the era of regulatory recognition of digital assets. The legislation, litigation, and regulation happening today will dictate the entire future of our industry, and we have a historic chance to shape those changes by staying informed and providing public commentary.

• Spain has announced that it will bring forward the implementation of the European Union’s crypto law, known as MiCA, by six months. This move is expected to impact crypto firms already registered in the country, including Binance, Kraken, and Coinbase.
• The Securities and Futures Commission (SFC) in Hong Kong has announced that it will allow primary dealing of tokenized securities-related activities. This move is seen as part of Hong Kong’s efforts to become a virtual asset hub.
• After less than five hours of deliberations, 12 jurors unanimously found Sam Bankman-Fried (SBF) guilty of seven counts of fraud, money laundering, and conspiracy. SBF will be sentenced next March, and the 31 year old is facing a maximum 110 years in prison. In weighing a sentence, US District Court Judge Lewis Kaplan will consider the amount stolen, the number of victims, the substantial hardship caused, the sophistication of the crime, the fact the offense involved financial institutions, and other potential factors. Ari Redbord, a former federal prosecutor, said SBF “will not likely be sent to prison for life, but he will do significant time.”
• PayPal has recently come under the scrutiny of the SEC as the Enforcement division issued a subpoena related to its US dollar-pegged stablecoin. This development occurred approximately three months after PayPal introduced its own US dollar-denominated PYUSD stablecoin in early August. PYUSD is issued by Paxos Trust and is backed by a reserve of US dollar deposits, short-term Treasurys, and similar cash equivalents.
• The United Kingdom government published an updated version of its plans to regulate the fiat-backed stablecoins, revealing the approach of the Financial Conduct Authority (FCA) and Bank of England.
• Crypto.com has been granted a license to operate a virtual asset service provider in Dubai. The license was given to its Dubai entity, CRO DAX Middle East FZE, which received preparatory approval from Dubai’s Virtual Assets Regulatory Authority (VARA) in March. The company is now in the third stage of the licensing process and will need to meet localization requirements and conditions before commencing operations. Once approved, Crypto.com will be able to provide exchange services, broker-dealer services, management and investment services, and lending and borrowing services.
• A group of bipartisan U.S. lawmakers, led by Chairman of the House Financial Services Committee Patrick McHenry and Congressman Ritchie Torres, is urging the Treasury to revise its proposed digital-assets taxation regime. The lawmakers are supporting crypto representatives and lawyers who have criticized the proposed taxation scheme as “dangerous and improper overreach.” They argue that the tax reporting requirement is “unworkable” and that the proposed regulation’s definition of a digital asset “Broker” is overly broad. The lawmakers believe that the current proposal could threaten the existence of a large portion of the digital asset ecosystem in the United States.

DISCLOSURE:
THE OPINIONS EXPRESSED HEREIN ARE THOSE OF THE AUTHOR ALONE AND DO NOT REPRESENT WAVE DIGITAL ASSETS, LLC OR ANY OF ITS AFFILIATES. CERTAIN INFORMATION CONTAINED HEREIN HAS BEEN OBTAINED FROM THIRD-PARTY SOURCES, HAS NOT BEEN INDEPENDENTLY VERIFIED AND IS BELIEVED TO BE ACCURATE AS OF THE DATE OF ITS PUBLICATION ONLY. CERTAIN WAVE ACCOUNTS HOLD INVESTMENT POSITIONS IN SOME OF THE ASSETS DISCUSSED HEREIN. WAVE AND/OR THE AUTHOR MAY HOLD INVESTMENT POSITIONS IN SOME OF THE ASSETS DISCUSSED.

NOTHING IN THIS EMAIL OR LINKED INFORMATION SHOULD BE INTERPRETED AS AN OFFER OR RECOMMENDATION TO BUY, SELL OR HOLD ANY SECURITY OR OTHER FINANCIAL PRODUCT. WAVE IS FEDERALLY REGULATED BY THE US SECURITIES & EXCHANGE COMMISSION AS AN INVESTMENT ADVISER. REGISTRATION WITH A FEDERAL OR STATE AUTHORITY DOES NOT IMPLY A CERTAIN LEVEL OF SKILL OR TRAINING. ADDITIONAL INFORMATION INCLUDING IMPORTANT DISCLOSURES ABOUT WAVE DIGITAL ASSETS LLC ALSO IS AVAILABLE ON THE SEC’S WEBSITE AT https://adviserinfo.sec.gov/ OR, LEARN MORE INFORMATION ABOUT WAVE DIGITAL ASSETS AT https://wavegp.com/.