Market Analysis Report (09 Aug 2021)

Ethereum’s London hard fork went live last week, and it included Ethereum Improvement Proposal (EIP) 1559, which was designed to simplify how transaction fees are paid on the network. Since then, 16,500 ETH worth over $48 million have been burned.

U.S. senators are set to vote on an unchanged version of the controversial infrastructure bill that aims to raise $28 billion to fund infrastructure through expanded cryptoasset taxation on Tuesday. The bill would impose broad third-party reporting requirements by poorly defining what a “broker” is.

Brazil’s São Paulo-based exchange B3 has listed a new exchange-traded fund (ETF) that claims to be the country’s first “green” bitcoin ETF, BITH11. The ETF plans to neutralize carbon emissions associated with BTC mining by purchasing carbon credits.

Sponsored: Another exciting quarter has come and gone and despite the turmoil experienced in crypto markets after mid-May, the Invictus Capital suite of funds has continued to offer investors exceptional returns, with the Hyperion VC (IHF), Margin Lending (IML) and Crypto10 Hedged (C10) Funds all shooting the lights out.

Top stories in the Crypto Roundup today:

• $48 Million in Ether Have Been Burned Since London Hard Fork
• U.S Senate to Vote on Unchanged Controversial Crypto Tax Bill This Week
• ‘Green’ Bitcoin ETF to be Launched on Brazilian Stock Exchange
• Daily Movers – CHZ, EGLD, ZIL
• Sponsored: Invictus Capital Q2 2021 Investment Report

$48 Million in Ether Have Been Burned Since London Hard Fork

Ethereum’s London hard fork went live last week, and it included Ethereum Improvement Proposal (EIP) 1559, which was designed to simplify how transaction fees are paid on the network. Since then, 16,500 ETH worth over $48 million have been burned.

Part of EIP-1559’s mechanism involves burning a portion of transaction fees, effectively removing ETH from circulation forever. The supply reduction helps Ethereum’s inflation rate drop, and could make the cryptocurrency deflationary if the burn rate gets high enough.

Currently, an Ethereum burn tracker shows that an average of 2.63 ETH have been burned per minute, while 6.7 ETH have been emitted every minute, meaning the network isn’t deflationary yet.

Since the EIP-1559 upgrade, around 36% of the new supply of ETH being created has been burned, and the upgrade is slowing the increase of Ethereum’s circulating supply over time. As a result of the upgrade, Ethereum miner revenues may drop, as base fees have been getting burned instead of sent to them.

U.S: Senate to Vote on Unchanged Controversial Crypto Tax Bill This Week

U.S. senators are set to vote on an unchanged version of the controversial infrastructure bill that aims to raise $28 billion to fund infrastructure through expanded cryptoasset taxation on Tuesday. The bill would impose broad third-party reporting requirements by poorly defining what a “broker” is.

Owen Lay, analyst at Oppenheimer, has explained that the bill defines a broker as any party “responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.”

The regulation could, for example, define Ethereum miners as brokers. In a joint statement the Blockchain Association, Coinbase, Coin Center, Ribbit Capital, and Square expressed concern over the language included in the infrastructure bill, as it will place “unworkable requirements on crypto technology.”

Several amendments to the bill have been proposed, with Compound Finance’s general counsel Jake Chervinsky noting that the Senate had voted in favor of debating these amendments. However, discussions were halted ahead of the final vote.

Cryptocurrency industry players supported an amendment proposed by Senators Pat Toomey, Rob Wyden, and Cynthia Lummis that would limit the scope of crypto “brokers” to exempt miners, network validators, and software developers.

If the Senate passes the bill on Tuesday, it would still need to clear the house before being mandated as law, giving further opportunity for it to be revised.

Green’ Bitcoin ETF to be Launched on Brazilian Stock Exchange

Brazil’s São Paulo-based exchange B3 has listed a new exchange-traded fund (ETF) that claims to be the country’s first “green” bitcoin ETF, BITH11. The ETF plans to neutralize carbon emissions associated with BTC mining by purchasing carbon credits.

It was launched by cryto-focused alternative investment firm Hashdex Asset Management. The firm has partnered with Germany’s Crypto Carbon Ratings Institute (CCRI), which is set to produce annual reports estimating the energy consumption underpinning the creation of BTC the fund acquires.

The ETF will invest 0.15% of its liquid assets into carbon credits and eco-friendly technologies every year. Hashdex has issued other cryptocurrency investment funds, including the weighted Nasdaq Crypto Index (NCI) tracking BTC, its Bitcoin Risk Parity Gold Fund, and other Bitcoin ETFs.

Crypto Spot Volumes Fall to Yearly Low as Open Interest Rises

In late July, cryptocurrency prices started picking up. Month on month, Bitcoin rose 18.3% while Ethereum rose 11.25%, however, spot trading volumes plummeted by 31.5% to $1.9 trillion during the same period.

A daily spot volume maximum of $98 billion was traded on July 26, as traders reacted to growing prices. Derivatives trading volumes reached 56.9% of the total cryptocurrency volume, the highest percentage share of total volume since November 2020.

The largest derivatives exchange in July by monthly trading volume was Binance, having traded $1.4 trillion. It was followed by OKEx, which traded $368 billion, and by Bybit, which traded $285 billion.

Aggregate open interest rose for the first time in three months, from a weekly average of $16.4 billion in June to $17.7 billion in July. The rise came as cryptocurrency markets started picking up steam at the end of the month.

Additional insights can be found in our latest Exchange Review, which you can download here. This month’s report is sponsored by EXMO, one of the leading cryptocurrency exchanges in Europe.

Invictus Capital Q2 2021 Investment Report

Another exciting quarter has come and gone and despite the turmoil experienced in crypto markets after mid-May, the Invictus Capital suite of funds has continued to offer investors exceptional returns, with the Hyperion VC (IHF), Margin Lending (IML) and Crypto10 Hedged (C10) Funds all shooting the lights out.

AUM is still ticking up, with an average of $145 million under management over June. Hyperion has continued to astound, and we are incredibly proud of the performance of the underlying portfolio that now firmly places the fund within the top tiers of global venture capital fund performance.

The company’s funds offered commendable performance in a quarter marked by heightened volatility and extreme fear in the Bitcoin and broader cryptoasset market. The simple average return across our suite of seven funds was 9.85% for the quarter, which is equivalent to an annualized return of 45.61%.

We invite you to read the full Q2 2021 investment report which includes comprehensive macroeconomic and crypto market analysis, fund-specific commentary and detailed company updates.

Disclaimer:

Cryptocurrency trading involves high risk, and is not suitable for all investors. Before deciding to trade cryptocurrencies, tokens or any other digital asset you should carefully consider your investment objectives, level of experience, and risk appetite.

Its content does not constitute financial advice. Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. If you are unsure of the suitability of your investment please seek advice.

Press Release

State of the Crypto by Top Tier Exchange Volume

Build your project with the CryptoCompare API

Terms
| Privacy

162 Main Road, Danbury, Chelmsford

England, CM3 4DT

This email may include advertisements by third parties. None of the advertised or promoted products and services have been verified or approved by us and this email is not any endorsement by us of the third party or of their products or services.