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CoinSmart Achieves Record Monthly Revenue of $1.8 Million in October
Record Cash of 18MM and Crypto Assets of 3MM for a total of $21 Million ($0.35 per share) on Balance Sheet
Toronto, Ontario--(Newsfile Corp. - November 30, 2021) - CoinSmart Financial Inc. (NEO: SMRT) (FSE: IIR) ("CoinSmart"), a leading Canadian headquartered crypto asset trading platform, today announced record preliminary unaudited monthly revenue in October 2021 of approximately $1.8 million[1]. This represents a 24% increase compared to September 2021 and was primarily driven by increased trading volume.
October 2021 Highlights:
- Record Monthly Revenue of $1.8MM
- Record Assets Under Management (AUM) of $74MM
- Cash Flow Positive
- Approx $18MM in cash and cash equivalents and $3MM in crypto assets for a total of $21 million ($0.35 per share)[2] as at November 29, 2021
- No debt
CoinSmart CEO Justin Hartzman commented:
"October was a tremendous month for CoinSmart as we achieved record revenue, assets under management and company cash and crypto assets on our balance sheet. This bodes well for Q4 as our team continues to work feverishly to make crypto currency accessible to all."
From time to time the company may report on any new records it achieves on key performance metrics[3].
About CoinSmart
CoinSmart is a leading Canadian-headquartered crypto asset trading platform dedicated to providing customers with an intuitive way for buying and selling digital assets, like Bitcoin and Ethereum. CoinSmart is one of the few crypto asset trading platforms in Canada to be registered as a securities dealer with the Ontario Securities Commission. CoinSmart is also one of the first Canadian headquartered trading platforms to have an international presence, accepting customers across 40+ countries at a time when the digital asset industry continues to rapidly expand.
Cautionary Note Regarding Forward-Looking Information and Other Disclosures
This press release contains statements that constitute "forward-looking information" ("forward-looking information") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking information and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may","could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information. In disclosing the forward-looking information contained in this news release, the Company has made certain assumptions. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, it can give no assurance that the expectations of any forward-looking information will prove to be correct. Known and unknown risks, uncertainties, and other factors may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: regulatory approvals. Accordingly, readers should not place undue reliance on the forward-looking information contained in this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking information to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking information or otherwise.
Financial Outlook
This press release contains a financial outlook within the meaning of applicable Canadian securities laws. The financial outlook has been prepared by management of the Company to provide an outlook for the revenue of CoinSmart during October 2021 and may not be appropriate for any other purpose. The financial outlook has been prepared based on a number of assumptions including the assumptions discussed under the heading "Cautionary Note Regarding Forward-Looking Information and Other Disclosures" above and assumptions with respect to market conditions, pricing, and demand. The actual results of CoinSmart's operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. CoinSmart and its management believe that the financial outlook has been prepared on a reasonable basis. However, because this information is highly subjective and subject to numerous risks, including the risks discussed under the heading "Cautionary Note Regarding Forward-Looking Information and Other Disclosures" above, it should not be relied on as necessarily indicative of future results.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
For further information please contact:
Justin Hartzman
Chief Executive Officer
E-mail:justin@coinsmart.com
Tel.: (647) 923-7678
[1] All figures stated above are preliminary, unaudited and subject to final adjustment.
[2] Based on 60,364,549 shares outstanding as of November 29th,2021
[3] See heading "Financial Outlook".
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
News Provided by Newsfile via QuoteMedia
Crypto Market Buzzing on Rumor Trump Will Announce Bitcoin as Strategic Reserve Asset
Crypto investors are abuzz amid rumors that former US President Donald Trump may announce Bitcoin as a strategic reserve asset at a Bitcoin event scheduled to run from July 25 to 27 in Nashville, Tennessee.
Trump, who is scheduled to speak on July 27 and is currently gunning for his second presidential term, has historically had a mixed relationship with Bitcoin and cryptocurrencies in general.
What will he say at the event this weekend? Here's what experts think could happen.
From critic to champion: Trump’s turbulent past with cryptocurrencies
In 2019, Trump criticized cryptocurrencies in a series of posts on X, then called Twitter, stating that they are "not money" and that their value is "highly volatile and based on thin air."
He also expressed concerns about their use in illegal activities.
However, his stance appears to have shifted in recent times. At a Mar-a-Lago dinner earlier this year, Trump encouraged his supporters to back him if they are in favor of crypto assets, signaling a possible change in his approach.
Bitcoin has had a turbulent year, experiencing significant fluctuations over the past months. Starting 2024 on a positive note, Bitcoin prices reached an all-time high in March, eclipsing US$73,000.
The price has pulled back since then, dipping below US$60,000 in early July.
Bitcoin saw both peaks and troughs during Trump's presidency, including a remarkable 2017 price run that saw it skyrocket, breaching $US20,000 for the first time in December after hovering around US$1,000 at the start of the year.
What will Trump say about Bitcoin in Nashville?
The crypto market's anticipation for Trump's Nashville speech isn't without basis.
Markus Thielen, founder of 10x Research, noted in an email sent to clients that there is speculation that Trump may use the conference as a platform to announce the establishment of Bitcoin as a strategic reserve asset.
"Speculation is high that he will announce bitcoin as a strategic reserve asset, which could trigger a parabolic rise in bitcoin's price," he added in a Monday (July 22) edition of the 10x newsletter.
According to CoinDesk, this sentiment has been echoed in the options market, where traders are preparing for potentially extreme price movements following Trump's rumored announcement.
Beyond market reactions, there are broader economic implications to consider. If the US were to officially recognize Bitcoin as a strategic reserve asset, it could validate the "digital gold" narrative and position Bitcoin alongside traditional reserve assets like gold. Moreover, the political ramifications are noteworthy. Rumors suggest that Trump may appoint pro-crypto figures to key positions, such as chair of the US Securities Exchange Commission or Treasury secretary.
Names like Larry Fink, chairman and CEO of BlackRock, have been mentioned, indicating a potential shift toward a more favorable regulatory environment for cryptocurrencies that could accelerate its growth.
The US government already holds a substantial amount Bitcoin seized during past confiscations, such as those resulting from the Silk Road case. Transferring these holdings to the Treasury could effectively position Bitcoin as a strategic reserve asset without requiring additional purchases on the open market.
This approach could reduce the supply of Bitcoin available for public trading, potentially driving up its price due to its inherent scarcity. However, the integration of Bitcoin into national financial strategies raises challenges.
The US government's current legal framework and monetary policy would need substantial adjustments to accommodate Bitcoin as a strategic reserve asset. Additionally, experts have raised questions about the security and custody of a volatile asset like Bitcoin, particularly given its susceptibility to cyber threats.
The volatility of Bitcoin itself poses risks as well; its price swings could lead to substantial impacts on national financial stability if it were to be heavily integrated into the country's reserve holdings.
Trump will join independent presidential candidate Robert F. Kennedy Jr., industry experts, business figures and politicians at the Nashville conference, where he is set to give a 30 minute speech at 3:00 p.m. EDT on July 27.
Don't forget to follow us @INN_Technology for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Spot Ether ETFs Make US Debut
After months of anticipation, nine spot Ether exchange-traded funds (ETFs) launched in the US on Tuesday (July 23), trading on the New York Stock Exchange, the Chicago Board Options Exchange and the Nasdaq.
Their debut marks a significant milestone for Ether investors, providing them with regulated exposure to the second-largest cryptocurrency by market capitalization.
The new spot Ether ETFs, holding approximately US$10.3 billion in assets, are:
- Grayscale Ethereum Mini Trust (ARCA:ETH)
- Grayscale Ethereum Trust (ARCA:ETHE)
- Bitwise Ethereum (NYSE:ETHW)
- VanEck Ethereum (CBOE:ETHV)
- 21Shares Core Ethereum (CBOE:CETH)
- Invesco Galaxy Ethereum (CBOE:QETH)
- Fidelity Ethereum (CBOE:FETH)
- Franklin Ethereum (CBOE:EZET)
- iShares Ethereum Trust (NASDAQ:ETHA)
Ether's rising valuation and strong early trading volume
In the days before the ETFs launched, Ether's price experienced volatility despite investor enthusiasm. At 2:40 a.m. EDT on Tuesday, Ether was valued at US$3,436.
Between 4:15 a.m. and 5:15 a.m. EDT, a 2 percent increase was observed, taking the price to US$3,528.
At the opening bell, Ethereum was valued slightly lower, at US$3,495.82. In the first 20 minutes of trading, it fell by 1.63 percent.
However, Bloomberg ETF analyst Eric Balchunas reported promising early trading data, revealing US$112 million traded within the first 15 minutes.
Grayscale's Ethereum Trust and BitWise held the top two spots, recording US$37. 9 million and US$25.5 million, respectively, in capital inflows. Michaël van de Poppe, founder and CEO of trading firm MNTrading, noted “The Ethereum ETF launch is heavily undervalued and I expect it to trade towards an (all-time high) in the coming 1-2 months.”
As of writing, Ether, which has a market cap of US$414 billion, is valued at US$3,485.
The launch of these ETFs is expected to further boost Ether's market presence. “Like the success of the Bitcoin ETF, the Ether ETFs will open up access to invest in this asset for a new group of investors. In simple supply/demand terms, bringing in a new group of investors will increase the demand for Ether,” Greg Taylor, CIO at Purpose Investments, told the Investing News Network.
“With the supply side already regulated by existing rules, the increase in demand should be a net positive for the price over the long term.”
Ethereum price forecasts have garnered significant attention as experts and analysts predict substantial growth in the coming years. Projections have ranged from US$6,000 to US$14,000 by next year.
“It's hard to call the short-term moves in any asset, especially one as volatile as crypto. However, we are positive on the outlook longer term for cryptocurrencies as the use case grows for many investors. We are also seeing more interest across the board from investors to gain access to assets that would benefit in a world in which the US dollar starts to weaken,” said Taylor.
Regulatory concerns and approvals
Initially optimistic, the prospects of Ether ETF approval in 2024 became shrouded in uncertainty after reports of talks between regulators and institutional investors breaking down in March.
The US Securities and Exchange Commission (SEC) had previously expressed concerns about complexities related to crypto staking, including market risks, custody issues, and potential conflicts of interest. In lawsuits filed against Coinbase and Kraken, the SEC has accused both companies of offering unregistered securities through their staking-as-a-service programs. Both cases are ongoing.
However, in a surprising turn of events, the SEC requested updated applications to offer Ether ETFs from the New York Stock Exchange, the Nasdaq and the Chicago Board Options Exchange on May 20, prompting a 24 percent rise in Ether’s valuation between May 20 and May 23.
Ether ETF applicants received 19b-4 form approvals confirming that institutions will not stake Ether for yield from the SEC on May 23. Bloomberg research analyst James Seyffart was quick to clarify that approval of spot Ether ETFs did not guarantee their immediate launch, emphasizing the likelihood of a period of “at least weeks, and potentially months” between the approval and the actual availability of these ETFs for investors, which proved to be an accurate timeline.
Ethereum’s broader use cases
Ethereum expanded on blockchain technology to enable broader use cases than a digital currency, which is Bitcoin’s foundational application. Ethereum’s platform enables smart contracts, self-executing agreements with the terms of the agreement between buyer and seller directly written into code; and dApps, decentralized applications that run on the blockchain.
The network also supports its native digital currency, Ether, which is used to pay for transaction fees and computational services on the Ethereum network.
Common use cases for dApps on Ethereum, and other platforms like Solana and Cardano, include decentralized finance, non-fungible tokens (NFTs), gaming, decentralized autonomous organizations, digital wallets and gambling.
Investor takeaway
The launch of spot Ether ETFs in the US represents a significant step forward for the cryptocurrency industry. With strong early trading volume and growing investor interest, these ETFs are poised to play a crucial role in the broader adoption of Ethereum and its associated applications.
“(We are) very excited to see the launch of spot ether ETFs in the US,” said Taylor. “It's great to see growing options for investors seeking regulated exposure to digital assets.”
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
How Will the US Election Affect the Crypto Industry?
As the world continues to embrace digital currencies and blockchain technology, the cryptocurrency industry is solidifying its position on a broad scale as a key part of the global economy.
Six months in, 2024 has already been a big year for crypto, with milestones including a new all-time high for the Bitcoin price, and the approval of spot Bitcoin and Ether exchange-traded funds in the US.
Heading into the second half of the year, the US election is expected to have far-reaching implications for the crypto market in America and potentially beyond. Issues such as regulation, taxation and the integration of cryptocurrencies into the mainstream economy will be critical in shaping the future of this dynamic sector.
The stakes are high for crypto market participants who want to secure their interests in a rapidly evolving financial landscape. Perhaps unsurprisingly, this burgeoning industry has already become a major talking point in the US election cycle as crypto-friendly Congressional nominees and a favorable regulatory framework become a focus for voters.
In fact, a recent Harrison Poll survey shows that 21 percent of voters in swing states — 13 percent of whom are pro-crypto compared to 8 percent who are anti-crypto — say that crypto policies are important enough to warrant consideration when they head to the polls. About 14 percent of those surveyed own crypto.
As the crypto narrative continues to intertwine with the US election cycle, the choices made in the voting booth could well determine the trajectory of this transformative technology. The stage is set for a pivotal moment in the crypto industry's history, and the decisions made in the next few months will echo far into the future of finance.
How is the crypto sector influencing the US election?
While the US election is set to impact the crypto market, the reverse is also true — the industry is already influencing lawmakers at both the federal and state levels as voting day approaches.
In December 2023, in order to gain a toehold in the political sphere, a group of three affiliated super political action committees (PACs) backed by prominent figures in the crypto sphere revealed plans to invest a substantial US$78 million with the aim of supporting crypto-friendly candidates in upcoming political campaigns.
Fairshake, one of the group’s three affiliated super PACs, has now raised upwards of US$160 million through donations from major stakeholders, including significant contributions from the Winklevoss twins and companies such as Kraken, Coinbase (NASDAQ:COIN) and Electric Capital Partners. The group reportedly spent around US$10 million on attack ads in an attempt to sway voters against Representative Katie Porter (D-CA) in the race to represent California in the Senate. Porter, who has been outspoken against corporate interests and federal lobbyists, ultimately lost the race.
In January, CNBC reported on lobbying efforts by the Cedar Innovation Foundation, whose backers are unknown. Its aim was to unseat Senate Banking Chairman Sherrod Brown (D-OH) — a crypto cynic. Brown later supported stablecoin legislation tied to a package that included cannabis banking reform, which he has called a “high priority,” but emphasized that crypto bills must have guardrails and consumer protection to secure his vote.
More recently, Politico reported in May that Marc Veasey (D-TX) was persuaded to support pro-crypto policies by billionaire investor and longtime crypto advocate Mark Cuban, who has warned that a rigid stance on the issue could cost the current administration supporters.
How is crypto currently regulated in the US?
The regulatory landscape for the crypto industry in the US is still evolving, and further developments are expected to occur in the coming years. As it stands, various government agenciesemploy diverse strategies to regulate different aspects of the industry, reflecting their unique mandates and objectives.
The US Securities and Exchange Commission (SEC) is the primary regulator of securities in the US and, under Chairman Gary Gensler, who was appointed by President Joe Biden, it has taken the view that many cryptocurrencies constitute securities and are therefore subject to federal securities laws.
The Commodity Futures Trading Commission (CFTC) is the primary regulator of futures and options contracts in the US. It is of the opinion that certain cryptocurrencies, such as Bitcoin and Ethereum, are commodities due to their decentralized nature and the fact that they are not backed by a government or other central authority.
Both regulators have taken action against crypto exchanges for breaking laws. Most notably, the CFTC brought charges against Binance founder Changpeng Zhao for violating the Commodity Exchange Act in March 2023. Meanwhile, the SEC has been involved in litigation against numerous crypto companies for years.
Majority party split on crypto regulation
Democrats appear divided on the best approach to crypto regulation. While some have cited concerns that overregulation could stifle innovation, other representatives, like Senator Elizabeth Warren (D-MA), have advocated for more stringent policies, citing threats to national security without proper money-laundering provisions in place.
That division became evident when a resolution to overturn the SEC’s Staff Accounting Bulletin 121 (SAB-121) passed in the House in early May. The resolution, which requires firms that provide custody for crypto assets to record them as liabilities, was primarily backed by Republicans, who argued it would reduce regulatory burdens, enable crypto innovation and challenge the SEC's evolving guidance on digital asset custody. Opponents said reversing the order would undermine the SEC’s authority, which put the measure in place to protect consumers and investors from fraud.
Despite Biden’s opposition to the resolution and his promise to veto the decision, 11 Democratic senators crossed party lines to vote in favor, including Senate Majority Leader Chuck Schumer. His vote to repeal SAB-121 may have been motivated by Republican nominee Donald Trump's recent support of crypto-friendly policies, which has put pressure on Democrats to reconsider their positions on crypto regulation to avoid losing votes from the crypto crowd.
Biden did ultimately veto SAB-121, but the split among Democrats, as well as the SEC’s recent approval of spot Bitcoin and Ether exchange-traded funds, and the passing of three crypto-related bills, has led some analysts to suggest that the party may be easing its approach to appease pro-crypto voters and gain the support of the crypto-backed super PACs.
Key US crypto legislation to watch
With cryptocurrencies becoming more mainstream, US lawmakers have been strongly encouraged to create a clear and comprehensive regulatory framework for this rapidly evolving industry.
FIT21 Act
The Financial Innovation and Technology for the 21st Century Act (FIT21) is the first federal bill specifically focused on cryptocurrencies to pass one chamber of Congress. It provides a comprehensive and clear regulatory framework, giving the CFTC greater regulatory authority for digital assets over the SEC.
Ranking members of the Democratic Party said they would not whip Democrat votes against FIT21 despite the party’s belief that it creates uncertainty and undermines established legal precedents in its current form. FIT21 received “overwhelming bipartisan support” in the House on May 22, passing with a vote of 279 to 136.
Former House Speaker Nancy Pelosi was one of the votes in favor of FIT21. When she was speaker, she accepted donations on behalf of the House Majority PAC from ex-crypto king Sam Bankman-Fried before his arrest in 2022. Sources for the American Prospect confirmed she was considering the motion days before the vote took place.
Some lawmakers are urging Congress to hold a Senate vote for FIT21 ahead of the November election, although this has been opposed by the president and the SEC.
Responsible Financial Innovation Act
For opponents, the Responsible Financial Innovation Act offers an alternative approach. The bill was a bipartisan effort that was reintroduced by Senators Cynthia Lummis (R-WYO) and Kirsten Gillibrand (D-NY) in July 2023. It has since been referred to the Committee on Banking, Housing and Urban Affairs.
The Act is similar to FIT21; however, there are also some differences between the two bills in terms of their specific provisions and approaches. For example, FIT21 places a greater emphasis on defining key terms and providing exemptions from duplicative regulations, while the Responsible Financial Innovation Act focuses more on consumer protection and combating illicit finance, goals that align with statements made by the White House.
Digital Asset Anti-Money Laundering Act
While the Responsible Financial Innovation Act seeks to provide a comprehensive framework for regulating digital assets, the Digital Asset Anti-Money Laundering Act aims to address concerns around money laundering and illicit finance in the digital asset space. The bill has 19 sponsors, including Republicans Lindsey Graham (R-SC) and Roger Marshall (R-KS), as well as Warren, a longtime political ally to the current president.
What does Biden think about cryptocurrencies?
There has been heightened government engagement with the crypto sector under the Biden administration, amplified by scandals such as the collapse of FTX in November 2022. Just one year earlier, on November 10, 2021, Bitcoin reached US$68,991, which was then its highest price to date. This milestone may have added impetus for politicians to pay closer attention to the industry and consider the potential implications of its rapid growth.
Against that backdrop, Biden has been carefully navigating the crypto industry, aiming to balance innovation and economic growth with consumer protection and regulatory oversight. In March 2022, he signed an executive order outlining a strategy to assess the risks and benefits of cryptocurrencies. It focused on six key areas, including consumer protection, responsible innovation and global competitiveness. The order also addressed the lack of coordination between government agencies by promoting a more unified approach.
Building on this move, the White House released a more detailed framework for responsible digital asset development in September 2022. It expanded upon the key areas identified in the initial executive order and provided further guidance for a coordinated, government-wide approach to managing the risks and harnessing the benefits of digital assets.
Biden's 2025 budget proposal includes measures that prevent investors from immediately selling and repurchasing digital assets, as well as one that would require more traditional reporting methods for digital asset transactions.
The budget also includes an excise tax on electricity used to mine cryptocurrencies, which is expected to generate US$10 billion in revenue in 2025 and over US$42 billion over 10 years. Many Republicans have expressed concerns about the proposed crypto industry taxes and regulations laid out in the budget; for example, they have said crypto mining could be pushed out of the US if the proposed mining taxes are enacted.
What does Trump think about cryptocurrencies?
In response to the crypto industry's growing influence in the political sphere, Trump also appears to have shifted toward a supportive stance in recent months. After initial skepticism, his forays into the crypto world include the launch of his second collection of Trump Cards, a non-fungible token (NFT) collection on the Polygon blockchain.
In May, Trump became the first presidential nominee to accept donations in digital currencies, and in June, he advocated on Truth Social for all future Bitcoin mining to be done in the US.
Also in May, Lee Bratcher, founder and president of the Texas Blockchain Council, shared insights with Coindesk on Trump’s interest in crypto, suggesting he may have been influenced by former Republican presidential candidate Vivek Ramaswamy, who was supportive of cryptocurrencies and blockchain technology during his brief campaign.
“Trump looks to Vivek on tech and digital asset policy,” Bratcher said. “When he saw how Vivek captured the Republican voter — and more centrist (voters) than Trump can capture — he’s probably more interested in that (policy)."
Trump appears to be driven by a desire to distinguish himself from political opponents who favor a more active regulatory approach, as well as crypto's increasing popularity and potential.
In May, he criticized Biden, the Democratic party and Gensler at a dinner for buyers of his NFT cards, telling pro-crypto attendees that they “better vote for Trump” if they want crypto in “any form.”
While he hasn’t explicitly said how he plans to tax digital assets, Trump is a prominent proponent of lower taxes. His administration signed the Tax Cuts and Jobs Act into law in 2017, the largest tax code change made in decades. Provisions within the act are set to expire in 2025, although Trump has said he will make them permanent if he is re-elected. The Congressional Budget Office has estimated that if they become permanent, these tax cuts would deduct billions from the US revenue base annually beginning in 2027.
At a rally in New Jersey in mid-May, Trump promised voters that he would impose further tax cuts, lowering the maximum capital gains tax rate from 20 percent to 15 percent. This would affect crypto assets, as the Internal Revenue Service (IRS) treats cryptocurrencies as property, making transactions subject to capital gains and other taxes.
According to Section 1031 of the tax code, some capital gains taxes can be deferred for like-kind exchanges — in other words, investments that are of the same nature or character, even if they differ in size or value. The IRS concluded in 2021 that only “real property” can qualify for tax deference as like-kind exchanges, excluding swaps of cryptocurrency. However, some attorneys disagree with that classification.
It’s worth noting that a special-interest group called Project 2025 has developed a 900 page conservative policy agenda called the Mandate for Leadership that includes strategies to shift the power of the IRS and other agencies toward the executive branch. Additionally, the document recommends that the SEC and the CFTC collaborate to delineate the distinction between digital assets that are classified as securities and those that are considered commodities.
The group was organized by the Heritage Foundation, a conservative think tank that has influenced Republican policies in the past, including during Trump’s presidency.
Investor takeaway
While Trump’s recent statements and actions suggest a permissive stance toward crypto if he is elected, the Biden administration appears to be taking a more cautious approach.
Most crypto experts advocate for a regulated approach, arguing that increased regulatory efforts have served as an incentive for more serious investors. Indeed, this regulatory push has been a significant catalyst for crypto’s impressive performance over the past seven to eight months. Ultimately, the outcome of the election will have important implications for the future of crypto regulation and the broader crypto industry.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
Tech 5: Crypto Investors Eye Solana ETF Filings, Amazon Developing AI Chatbot
In the tech space this week, two financial institutions applied to offer exchange-traded funds (ETFs) tied to the spot price of Solana, challenging a former ruling by the US Securities and Exchange Committee (SEC).
Meanwhile, Amazon (NASDAQ:AMZN) pushed back the expected launch date of its satellite internet service, and Micron's (NASDAQ:MU) earnings report wasn't enough to meet investors' sky-high expectations.
Stay informed on the latest developments in the tech world with the Investing News Network's round-up.
1. VanEck, 21Shares file to offer Solana ETFs
VanEck filed an S-1 form with the SEC to issue a Solana ETF on Thursday (June 27).
The news was shared by Matthew Sigel, head of digital assets research at VanEck, in a post on X, formerly known as Twitter, and led to a 6.5 percent boost in the token’s value in one hour.
The next day, 21Shares filed an S-1 form to issue its own Solana ETF.
Solana is a blockchain platform designed to host decentralized and scalable applications, including non-fungible tokens and decentralized physical infrastructure (DePINs). DePINs is a relatively new concept that aims to decentralize ownership of physical infrastructure such as electricity grids.
Solana uses a consensus mechanism called “proof-of-history,” where timestamps define the next block on its chain. Users report lower fees and faster transaction processing speeds than Ethereum, which has comparable functionality and features. Solana’s token, SOL, is used to pay transaction fees and for staking.
Spot ETFs allow investors to gain exposure to the underlying asset — in this case, Solana’s native token SOL — without directly purchasing and storing it themselves. The Solana ETF filings follow similar proposals for spot Bitcoin and Ether ETFs, indicating continued recognition of certain cryptocurrencies as legitimate financial assets.
Following the SEC’s approval of spot Bitcoin ETFs in January, the regulatory landscape for cryptocurrencies appears to be shifting. Eight Ether-backed spot ETFs are slated to begin trading as soon as next week.
In VanEck’s filing, Sigel lists SOL as a commodity on the grounds that it functions similarly to Bitcoin and Ether; however, in the SEC’s 2023 lawsuit against cryptocurrency exchange platform Binance, the SEC listed SOL as a security given that there is an expectation of profits derived from the efforts of others. Defining cryptocurrencies has been an ongoing topic of contention between regulators and crypto market stakeholders.
2. Amazon developing AI chatbot
According to multiple news outlets, Amazon is working on its own artificial intelligence (AI) chatbot to compete with OpenAI’s ChatGPT. The story was originally reported by Business Insider on Monday (June 24); the article notes that the service, codenamed Metis, could be revealed by the company later this year.
According to sources for Business Insider, the chatbot will be accessed via a web browser, and will use some of the same infrastructure that powers a new version of Amazon’s voice assistant, Alexa.
The Alexa upgrade, which was reported in May, will include generative AI technology and a two-tiered system. Sources have said the company is considering charging a subscription fee of between US$5 and US$10 for the higher-performance tier, a fee that would be independent of a Prime subscription.
3. Amazon delays Project Kuiper satellite launch
During an event to unveil its new satellite manufacturing facility in Washington, US, Amazon announced that it has delayed the launch of its first Project Kuiper internet satellites to the fourth quarter.
The company previously anticipated that testing would begin during the first half of 2024.
Project Kuiper is Amazon’s version of SpaceX’s Starlink, which is comprised of nearly 6,000 satellites in a low-Earth orbit. Starlink was the first to provide high-speed, low-latency broadband internet access to remote locations around the world from space. Project Kuiper aims to ship over 3,000 satellites from its new factory to its processing facilities at the Kennedy Space Center in Florida and the Guiana Space Center in French Guiana.
Amazon’s license to deploy and operate satellites, issued by the Federal Communications Commission, requires that at least half of its satellite constellation be launched by July 2026. The first two prototypes were launched in October 2023.
“We expect to ship our first completed production satellites this summer, and we’re targeting our first full-scale Kuiper mission for Q4 aboard an Atlas V rocket from ULA,” the company said in a Thursday blog post.
“We will continue to increase our rates of satellite production and deployment heading into 2025, and we remain on track to begin offering service to customers next year.”
4. US may allow federal tax payments using Bitcoin
Republican Congressman Matt Gaetz (R-FL) has introduced a bill that would allow taxpayers to pay federal taxes in Bitcoin. Gaetz made the announcement via X on June 25 (Tuesday).
“By enabling taxpayers to use Bitcoin for federal tax payments, we can promote innovation, increase efficiency, and offer more flexibility to American citizens,” he wrote. “This is a bold step toward a future where digital currencies play a vital role in our financial system, ensuring that the U.S. remains at the forefront of technological advancement.”
The bill would modify the Internal Revenue Code of 1986 and would require the treasury secretary, currently Janet Yellen, to develop a system that would accept Bitcoin as a legitimate form of payment for federal taxes.
Yellen has expressed caution and skepticism about cryptocurrencies. Meanwhile, Donald Trump, the Republican party’s presidential nominee, has made the adoption of digital assets a central part of his campaign in recent weeks and has begun accepting donations in crypto.
5. Micron shares sink after earnings report
Shares of Micron had dipped by 7.34 percent as of market close on Thursday. The decline came after the chipmaker reported results for its third fiscal quarter just after market close on Wednesday (June 26).
The company's revenue reached US$6.81 billion, compared to the previous quarter's US$5.82 billion. Year-over-year, its revenue was up approximately 82 percent from US$3.75 billion.
The numbers exceeded analysts' projected revenue of US$6.67 billion.
Earnings per diluted share came in at at US$0.62, higher than the anticipated US$0.53. Micron’s board of directors declared a quarterly dividend of US$0.115 per share, payable in cash on July 23.
Micron's share price fall is being attributed to its guidance. Looking ahead, it's projecting revenue of US$7.6 billion for its fourth fiscal quarter, with diluted earnings per share of approximately US$0.61.
Company shares closed at US$131.53 on Friday.
Don't forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
ASX Welcomes First Bitcoin ETF as Crypto Soars in Popularity
The Australian Securities Exchange (ASX) welcomed its first Bitcoin exchange-traded fund (ETF) on Thursday (June 20), following a growing trend of digital assets hitting various global stock markets.
The VanEck Bitcoin ETF (ASX:VBTC) invests in the VanEck Bitcoin Trust (BATS:HODL), but doesn't own Bitcoin directly.
“We’re really pleased to admit the ASX’s first Bitcoin ETF, responding to increased customer demand for access to cryptocurrency assets, and providing access to more investment options for Australians,” Andrew Campion, general manager of investment products and strategy at the ASX, said in a press release.
Campion emphasised that trading Bitcoin via an ETF on an established exchange like the ASX allows investors to buy and sell via traditional brokerage accounts, simplifying the process compared to using cryptocurrency exchanges.
"This approach makes it easier for more Australians to invest in Bitcoin," he added in the release.
The VanEck Bitcoin ETF launched with an initial investment of approximately AU$985,000 (US$657,000) and is designed as a feeder fund for the US$647 million VanEck Bitcoin Trust, which is listed in the US.
This setup ensures that each unit of the ETF is backed by a specific amount of Bitcoin, offering investors a transparent and straightforward way to gain exposure to the cryptocurrency's price movements.
The ASX's move to introduce its first Bitcoin ETF follows a broader trend of increasing acceptance of digital assets. Earlier this year, spot Bitcoin ETFs were launched in the US, quickly accumulating US$56 billion in assets. Hong Kong also permitted the trading of spot ETFs for Bitcoin and Ether in April, although these have attracted less interest.
With the VanEck Bitcoin ETF now live on the ASX, other local players, including Sydney-based BetaShares Holdings and DigitalX (ASX:DCC,OTCQB:DGGXF), are preparing for potential listings on the country's main exchange. Crypto ETFs are already available on CBOE Australia, another Australian exchange, holding a collective US$90 million in assets.
Bitcoin itself has experienced notable momentum over the last nine months, and has nearly quadrupled in value since early 2023. It reaching a high of US$73,798 in March before experiencing a pullback.
Don't forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article
Tech 5: Crypto Sinks, Apple Soars as Markets Set All-time Highs
Apple (NASDAQ:AAPL) has had a sluggish H1 compared to other tech giants, but its share price surged in the days following its annual World Wide Developers Conference (WWDC) on Monday (June 10).
Meanwhile, crypto markets dipped throughout the week as the US Federal Reserve held interest rates steady, and Tesla (NASDAQ:TSLA) got the green light to begin testing its full self-driving mode in Shanghai.
Stay informed on the latest developments in the tech world with the Investing News Network's round-up.
1. Tech boom pushes indexes to new highs
The Nasdaq Composite (INDEXNASDAQ:.IXIC) continued its historic run this week, closing at new all-time highs for five consecutive trading days. After opening at 17,083.45 on Monday, the tech-heavy index ended Friday (June 14) at 17,688.88, driven by the resilience and performance of tech-focused stocks.
The S&P 500 (INDEXSP:.INX) also had a stellar week, but narrowly missed out on a five day winning streak, setting all-time highs through Thursday's (June 13) close. It ended Friday at 5,431.6, down 0.04 percent from the previous day.
Oracle’s (NYSE:ORCL) share price jumped 9 percent on Wednesday (June 12), a move that market watchers have attributed to the company's competitive cloud infrastructure offerings, which provide a more cost-effective alternative to its rivals like Google (NASDAQ:GOOGL), Microsoft and Amazon (NASDAQ:AMZN). Meanwhile, shares of Adobe (NASDAQ:ADBE) surged 16 percent to reach their highest since March 14. The company’s Q2 results revealed record revenue of US$5.31 billion, driven by “growing customer value through an innovative product roadmap.”
Broadcom (NASDAQ:AVGO) also rose significantly following its Q2 results on Wednesday. The company showcased a strong annual forecast driven by demand for artificial intelligence (AI) chips, and announced a stock split and a quarterly dividend of US$5.25 per share. After starting the week at US$1,412, the company closed at US$1,735.04 on Friday.
In other market news, Reuters reported on Monday that NVIDIA's (NASDAQ:NVDA) recent stock split has some analysts speculating about its suitability for inclusion in the Dow Jones Industrial Average (INDEXDJX:.DJI).
Before the stock split, NVIDIA's lofty share price excluded it from consideration, as its price fluctuations would have had a disproportionate effect on the index. However, the split lowered the company's share price to a more manageable level, making it a more suitable candidate for inclusion in the Dow.
2. Crypto prices fall as Fed holds rates steady
The crypto market started the week low ahead of the Fed's latest meeting.
Bitcoin and Ethereum experienced notable declines, dropping 3.5 percent and 4.6 percent, respectively, and asset liquidations worth US$270.4 million in just 24 hours on Tuesday (June 11).
The Fed ultimately opted to leave rates unchanged, saying it now anticipates just one cut this year. In a press conference, Chair Jerome Powell also extended the anticipated timeline for the first potential cut to September, but cautioned that waiting until December remains a distinct possibility. Since the meeting, crypto markets have fallen further.
Despite this week's market volatility, there were some positive signs for the cryptocurrency industry. The market cap of tokenized US treasuries was tagged at an all-time high of over US$1.5 billion. Notably, BlackRock’s (NYSE:BLK) BUIDL fund has seen the most action, amassing US$472 million since launching in March.
Additionally, MicroStrategy (NASDAQ:MSTR) issued two press releases on Thursday, announcing plans to redeem US$650 million worth of convertible notes on July 15, as well as a private offering of another US$500 million of convertible senior notes; the offering was increased to US$700 million on Friday. The funds will be used in part to buy more Bitcoin.
3. Spot Ethereum ETFs could be approved by summer
Elsewhere, US Securities and Exchange Commission Chair Gary Gensler gave testimony before the Senate Committee on Appropriations, indicating that S-1 forms for spot Ethereum exchange-traded funds (ETFs) will likely be approved by the end of the summer. Hoping to cash in, ProShares filed a 19b-4 form to offer spot Ethereum ETFs on June 7 and an S-1 registration statement on June 11, bringing the total number of applications to nine.
K33 Research has projected that spot Ethereum ETFs could see around US$4 billion of inflows within their first five months, and CoinShares’ latest Digital Asset Fund Flows report shows that in the first week of June investment products holding Ethereum drew their highest inflows since March.
4. Apple unveils on-device AI processing, share price soars
At its annual WWDC event on Monday, Apple introduced a slew of new AI capabilities powered by a freshly announced partnership with OpenAI. While the initial market reaction was subdued, with Apple's share price staying around the US$193 mark in after-hours trading Monday, the picture has changed since then.
After climbing through Tuesday and Wednesday, Apple set a new all-time high closing price on Wednesday at US$214.24. The company briefly overtook Microsoft (NASDAQ:MSFT) in terms of market capitalization to reclaim the title of the world’s most valuable company. A global ranking of the 10 most valuable brands in the world by Kantar's BrandZ also reveals that Apple is now the first brand to achieve US$1 trillion in brand value. NVIDIA cracked the top 10 for the first time, securing the sixth position on the list.
5. Tesla to test full self-driving in Shanghai
According to Reuters, the Shanghai Observer, a government-backed news outlet in China, reported that Tesla will carry out tests of its full self-driving (FSD) software on 10 vehicles in Shanghai. Tesla's FSD software equips vehicles with autonomous capabilities to navigate intricate urban environments. This includes managing intersections, traffic signals and pedestrian crossings, all without human intervention. The tests in Shanghai will allow Tesla to gather data on how its FSD software performs in a densely populated and heavily congested urban environment.
For Tesla, the Shanghai tests hold strategic importance as China represents a key market for the company.
China has been rolling out public testing of self-driving software for several companies, including Nio (NYSE:NIO), BYD (HKEX:1211) and SAIC Motor (SHA:600104). The Chinese government has been supportive of the development of self-driving technology, considering it a crucial aspect of the country's transportation future.
Moreover, the Shanghai tests will contribute to the development of regulatory frameworks for self-driving vehicles in China. As autonomous driving technology continues to advance, governments worldwide are working to establish clear regulations and standards to ensure the safety and responsible use of such vehicles. The data collected during the Shanghai tests can provide valuable insights for policymakers and regulators in developing effective regulations.
Don't forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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