NYDIG stacks up, Elon buys Twitter

by Arthur · October 31, 2022

For all the doom and gloom surrounding crypto markets these days, there is a lot to be happy about. Institutional investors are still actively buying Bitcoin (BTC), venture capital is still investing heavily in blockchain startups and upcoming regulatory clarity will likely pave the way for wider adoption, perhaps as early as next year. This week’s Crypto Biz newsletter features some exciting stories of adoption, not to mention Elon Musk’s deal to buy Twitter (finally).

Sidebar: I had the opportunity to attend Circle Internet Financial’s Converge22 conference in San Francisco last week. In a media session on the sidelines of the conference, Circle CEO Jeremy Allaire said that USD Coin’s (USDC) “stablecoin” label is a misnomer and that we should start thinking of the asset as a true form of a digital dollar. I also had the opportunity to interview several leaders from the blockchain community on topics related to interoperability, market manipulation, CeFi risk and crypto’s multi-chain future.

*Circle CEO Jeremy Allaire speaks at the Converge22 conference in San Francisco, California.*

Table of Contents

NYDIG Raises $720 Million As Bitcoin Balance Hits Record

A recent filing with the United States Securities and Exchange Commission (SEC) revealed that New York Digital Investment Group had raised approximately $720 million for its institutional Bitcoin fund. The company, which offers cold storage solutions to institutional investors, also increased its BTC holdings by nearly 100% year-on-year, clearly showing its intention to hodl during the market downturn. Once again, NYDIG and its investors demonstrate that depressed market conditions are favorable times to buy Bitcoin. Are you ready to get greedy when others are scared?

Bitwise launches Web3 ETF for institutional and private investors

Speaking of institutional investors, they will also have more streamlined access to Web3 investment opportunities under a new exchange-traded fund offered by Bitwise. The new Bitwise ETF, announced this week, provides “focused exposure to one of the fastest-growing themes in technology.” The launch of the fund coincides with billions of dollars in venture capital pouring into Web3 startups over the past 10 months. Not quite sure what Web3 means? Don’t worry, you are not alone. We know it refers to a future iteration of the internet that is more decentralized and powered by blockchain technology. Beyond that, definitions and interpretations vary.

Musk’s deal for Twitter appears to go with the original price tag of $44B

Entrepreneur and Dogecoin (DOGE) enthusiast Elon Musk wants to buy Twitter after all – opening up the real possibility that the social media network will become increasingly crypto-compatible. On Oct. 4, the eccentric billionaire confirmed his intention to buy Twitter for $44 billion, or $54.20 per share, more than six months after he initially signaled plans to do so. While we wait for a shake-up at Twitter headquarters, expect to see the number of followers shrink as the newly acquired company begins to purge spambots.

Buying Twitter is an accelerator to create X, the alt app

— Elon Musk (@elonmusk) 4 October 2022

Basel Committee: Banks worldwide reportedly own €9.4 billion in crypto assets

While most institutional investors are waiting for regulatory clarity before dabbling in crypto, several banks have already gained exposure to the sector. According to a new study published by the Basel Committee on Banking Supervision, 19 out of 182 banks within the organization’s territory have already invested in Bitcoin and other digital assets. They currently have digital assets worth $9.4 billion. You know what this means, right? Banks are scrambling to get into crypto. It is only a matter of time before the floodgates are opened (or until regulatory clarity gives the green light).

Before you go: Credit Suisse faces rumors of a Lehman Brothers-style collapse

Investors have been on edge all week amid rumors that Zurich-based Credit Suisse was facing the moment of reckoning. The Swiss investment giant, struggling to restructure its business in the wake of scandals and money-laundering allegations, saw its credit default swaps increase over the weekend. Crypto investors are now asking: How will this failure affect us? In this week’s market report, I sat down with fellow analysts Marcel Pechman and Benton Yaun to discuss how Credit Suisse’s fall could affect the crypto markets. You can watch the full replay below.