How to balance cryptoassets and fiat in your treasury, ETF updates and more
Greetings from beautiful Davos!
It’s been almost two weeks on the road now - we had some amazing meetings in St. Moritz last week, and now we’re in Davos, where the World Economic Forum is held. Switzerland is the go-to destination for the industry every January, and, of course, I couldn’t miss the chance to join WEF and catch up with old (and new!) friends.
Last week was marked with the SEC’s approval of ETFs, and the echoes of it are present in many conversations we have here. I am still undecided about whether ETFs are good or bad for the industry. The good could be increased education, stimulating demand for Bitcoin, and providing greater access to a wider population. But what could be on the negative side is the need for ETF providers to acquire a significant amount of Bitcoin, which could threaten digital currency's decentralisation ethos. As ETF holders acquire more Bitcoin to issue ETFs, the ownership of the digital assets could become centralised.
Additionally, ETFs have not driven up the price of Bitcoin as people had hoped. In fact, there were even a few downward dips when the ETF news was announced. Interestingly, 15 alternative coins to Bitcoin saw sharp increases in value once the ETF was released, while Bitcoin remained relatively stable. I recently shared my views in an opinion piece for Euronews here.
Aside from ETFs, the market's tone is focused on rebuilding trust after the scandals predominantly led by the fall of SBF. The World Economic Forum's strapline this year is "rebuilding trust," and this theme is present in all the events I attend.
Let’s see what the next weeks bring us - it will surely be an exciting ride. If you happen to be in Davos these days, drop me a note at email@example.com. Always happy to connect.
Our team has been working on a fresh version of our weekly newsletter. We’re excited to share more updates and insights in a new form with you - let us know your thoughts!
P.S. Here’s the full list of events I’m attending with Nick. If you’re not in Switzerland this year, maybe we will see you in Dubai at the Satoshi Roundtable beginning of February?
CEO of XEROF
Market Moves & News Of Note
Bloomberg: Bitcoin ETF Trades Top $4.6 Billion in ‘Ground-Breaking’ Day
On the launch day Bitcoin ETFs witnessed over $4.6 billion in trading. As ETFs gain traction, their impact on the cryptoasset market and broader financial ecosystem promises to be a key focus in the future.
Paul Brody anticipates a more sustainable summer in blockchain with increased institutional participation, scalability solutions, and privacy advancements. Driving this theory is the convergence of central banks towards regulated stablecoins and CBDCs amidst ongoing progress in industrial applications, signalling a steady acceleration of blockchain adoption.
Financial Times: Bitcoin’s Wall Street takeover frustrates crypto’s true believers
The success of Bitcoin, propelled by the approval of cryptoasset ETFs and Wall Street's support, marks a watershed moment challenging its original decentralised ethos. As Bitcoin transforms from a revolutionary concept to a speculative asset, its future trajectory raises questions about the balance between mainstream integration and maintaining its decentralised roots.
Views from Switzerland
Marc Taverner’s Op-Ed for Euronews: Are we trading Bitcoin’s price for its centralisation?
Cointelegraph: Rollups, Corporate Demand, and Bitcoin-tied Solutions among 2024’s Cryptoasset Business Trends
Coindesk: Cathie Wood Sees Bitcoin Price Reaching $1.5M by 2030 After ETF Approval
We discuss how Web3 companies can overcome challenges in treasury management by adapting to the growing trend of cryptoasset investments and understanding the importance of balancing digital assets with fiat for day-to-day expenses.
The challenges in Europe's move towards a cashless society stem from its diverse payment preferences across countries. Unlike uniform trends observed in China and Southeast Asia, European countries exhibit distinct payment preferences, requiring a delicate balance to ensure inclusivity while accommodating local choices.
Concerns over privacy and security are paramount in Web3. To fully embrace the vision of Web3, users must feel confident in managing their online interactions and data securely, highlighting the need for robust privacy measures in this space.
XEROF is a Swiss-licensed Crypto Gateway that offers exchange services for customers who possess crypto wallets and want to use them as fiat currency to purchase real estate properties and luxury goods.Learn more about XEROF