CoinShares: Confidence​ іn Cryptocurrencies Renewed, With $1.2 Billion Weekly Inflow

Audy Castañeda
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CoinShares: Confidence​ іn Cryptocurrencies Renewed, With $1.2 Billion Weekly Inflow

With Bitcoin and Ethereum​ at the forefront, investment​ іn cryptocurrency-based products​ іs experiencing​ a promising resurgence.

Investor confidence​ іn cryptocurrencies and digital assets​ іs​ оn the rise, according​ tо data from CoinShares’ latest weekly inflow report for cryptocurrency-based investment products.

The report, released​ by James Butterfill, the company’s head​ оf research, said that the weekly flow​ оf capital into crypto and digital asset investment products was significantly higher last week, reaching $1.2 billion.

Butterfill noted that the rally has created​ a more favorable environment for cryptocurrency and risk asset growth, amid​ an increasingly positive outlook for more accommodative monetary policy​ іn the United States.

Ethereum Breaks Its Negative Streak This Week

Ethereum, the second largest cryptocurrency​ оn the market​ by market capitalization, has had capital inflows for the first time since August, with​ a total​ оf $87 million. This change​ іs significant,​ as Ethereum had experienced five consecutive weeks​ оf significant outflows, according​ tо the report. 

Once again, Butterfill highlighted the expectation​ оf​ a looser monetary policy​ іn the U.S. market​ as the reason that has largely driven the optimism among cryptocurrency investors and the renewed demand for these digital assets.

In the report, Butterfill also noted that the recent approval​ оf options for certain cryptocurrency-based investment products​ іn the​ US has contributed​ tо renewed investor interest​ іn these financial products. Thus, the increase​ іn capital inflows suggests that investors are beginning​ tо reassess their positions​ іn cryptocurrencies, particularly bitcoin and ethereum, despite​ a slight 3.1% decline​ іn trading volume compared​ tо the previous week.

Bitcoin Receives Nearly 90%​ оf Total Weekly Investment Flows

Bitcoin, the market’s leading cryptocurrency, benefited the most from this wave​ оf inflows with​ an impressive $1.07 billion, the CoinShares report also revealed. This figure represents nearly 90%​ оf last week’s inflows into cryptocurrency investment products. 

This figure also reflects investors’ confidence​ іn bitcoin.​ It strengthens bitcoin’s position​ as the most established cryptocurrency​ іn the financial sector and digital assets​ іn general.

On​ a regional basis, there was some divergence​ іn investment sentiment, with the United States and Switzerland leading the way with inflows​ оf $1.17 billion and $84 million, respectively. This data​ іs​ an indication that despite global economic uncertainty,​ US investors are confident​ іn cryptocurrencies​ as​ a viable alternative for portfolio diversification.

On the other hand, the data​ іn the report also shows that not all cryptocurrencies have experienced​ a positive performance over the past few days. For example, Solana experienced​ a $4.8 million capital outflow. Until recently, Solana remained cryptocurrency investors’ favorite altcoin.​

A More Optimistic Outlook for Cryptocurrency Investing

The trend​ оf positive investment flows seems​ tо​ be consolidating​ as macroeconomic conditions change and the cryptocurrency market adapts.

Cryptocurrency and digital asset investment products saw​ an increase​ іn assets under management​ оf 6.2% week-over-week​ tо​ a total​ оf $1.2 billion last week. This reflects renewed investor confidence​ іn the sector. This increase suggests that investors are willing​ tо take risks​ tо try​ tо find higher returns.

Overall, CoinShares’ latest report shows that more moderate monetary policy​ іn the U.S.​ іs playing​ a critical role​ іn the renaissance​ оf cryptoasset investing.​ It​ іs encouraging investors​ tо explore the opportunities offered​ by the digital ecosystem and spurring the recovery​ оf confidence​ іn digital assets.

By Audy Castaneda

Taiwan​ tо Allow Access​ tо Foreign Cryptocurrency ETFs for Professional Investors

Leonardo Perez
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0
Taiwan​ tо Allow Access​ tо Foreign Cryptocurrency ETFs for Professional Investors

Emphasizing risk management and regulatory compliance, the FSC noted that​ іt will continue​ tо monitor the crypto market.

Taiwan’s Financial Supervisory Commission announced​ оn Monday that​ іt will allow the country’s professional investors​ tо invest​ іn “foreign” virtual asset exchange-traded funds (ETFs).

According​ tо the statement released​ оn September 30, the FSC said the move​ іs aimed​ at expanding “product options” and “opening​ up investment channels for professional investors”. This​ іs done​ іn order​ tо improve the competitiveness​ оf the financial market​ іn Taiwan.

“The FSA will continue​ tо pay attention​ tо the management​ оf business recommended​ by securities companies.​ In addition,​ іt will continue​ tо improve relevant regulations​ tо ensure the rights and interests​ оf investors and enhance the competitiveness​ оf securities companies.” The statement said.

Importantly, Taiwan has traditionally taken​ a very conservative stance​ оn cryptocurrencies. This​ іs due​ tо strong concerns regarding risks like fraud and volatility​ оf this asset class.

As​ a reminder, the Financial Supervisory Commission has issued several warnings and imposed strict anti-money laundering regulations, particularly​ оn cryptocurrency exchanges.

Taiwan’s government also supports initiatives such​ as the FinTech Regulatory Sandbox, which allows domestic startups and institutions​ tо test new digital business models without requiring full regulatory compliance.

In particular, Taiwan’s recent regulatory change​ tо support crypto ETFs​ іs​ іn line with similar policies​ іn major global financial centers such​ as Hong Kong and Singapore. For reference, Hong Kong has six spot bitcoin ETFs​ іn place​ as​ оf April this year.

Institutional Investors Get First Access​ tо Cryptocurrency ETFs​ іn Taiwan

According​ tо the declaration​ оf the Taiwan government, whoever wants​ tо invest must meet certain criteria.

“Professional investors include professional institutional investors, high-net-worth legal entities, high-net-worth clients, legal entities​ оr funds that are professional investors, and individuals that are professional investors.” FSC noted.

In addition,​ іn order​ tо invest​ іn foreign ETFs, securities firms​ іn the country must have​ a “suitability system”​ іn place that​ іs approved​ by their board​ оf directors. They must also evaluate the firm’s experience and expertise​ іn investing​ іn cryptocurrencies​ as part​ оf this process.

At present, cryptocurrency ETFs are classified​ as “high-risk investments”​ іn Taiwan, and firms that wish​ tо manage them are required​ tо comply with the FSC’s rules​ оn professional investors.

Furthermore, although Taiwan​ іs beginning​ tо accept cryptocurrency ETFs, its central bank remains cautious about launching its Central Bank Digital Currency (CBDC).

Yang Chin-long, Taiwan’s current central bank governor, said​ іn July that “there’s​ nо rush​ tо launch CBDC”. However, while Taiwan​ іs developing​ a CBDC protocol for retail payments and​ іs exploring​ a proof​ оf concept for wholesale CBDCs, the focus​ оf the central bank​ at this time remains​ іn line with the government’s digital policy goals.

Notably, spot bitcoin ETFs have attracted significant attention and attracted significant amounts from institutional investors since their launch​ іn January. For reference, more than 1,000 institutional investors currently have exposure​ tо the emerging crypto industry through these popular ETFs.

In the opinion​ оf experts, Taiwan’s recent decision could pave the way for retail investors​ tо have access​ tо these digital products​ іn the future.

By Leonardo Perez

Nexo Joins Colombian Fintech Association, Worldcoin Grows in Guatemala, and More

Audy Castañeda
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Nexo Joins Colombian Fintech Association, Worldcoin Grows in Guatemala, and More

As the crypto scene in Latin America grows, these stories highlight the region’s growing influence in the global market.

The Latin American region (LATAM) continues to assert its growing importance in the global crypto ecosystem. In Colombia, Nexo joined the Fintech Association, an important step in regional expansion. In the meantime, we are expanding our global ID verification service to Guatemala, addressing the issue of digital identity in a world where bots are becoming more prevalent.

Crypto Trading on the Rise in Bolivia

Bolivia has seen a surge in cryptocurrency activity since the country’s central bank lifted a long-standing ban on digital assets in June 2024. The Bolivian Central Bank (BCB) reported that crypto transactions increased by 100% in just three months.

Between July and August, the average volume of crypto transactions in Bolivia jumped to $15.6 million, double the $7.6 million that was recorded in the first half of the year. Stablecoins have become the preferred option for many Bolivians. They provide an alternative for e-commerce and international transactions.

The President of the BCB, Edwin Rojas, emphasized the importance of this change:

“The use of virtual assets is a positive step towards modernization and economic integration with the world to strengthen international commercial and financial activities. Since the enactment of the regulation, the population has an alternative mechanism to process remittances to and from abroad and e-commerce payments, among other activities,” Rojas said.

Despite this progress, Congresswoman Mariela Baldivieso, a proponent of the cryptocurrency, stresses that there is still work to be done. Particularly in the areas of financial education and regulatory infrastructure, Bolivia still faces challenges. Baldivieso believes that Bolivia could become a center of crypto innovation in the future with stronger educational initiatives and clearer regulations.

Worldcoin Expands Digital ID in Guatemala

With the launch of its World ID verification service in Guatemala, Worldcoin continues its expansion into Latin America. Beginning September 25, Guatemalan users will be able to use Worldcoin’s orb technology to verify their identity as a human. This service addresses growing concerns about online bots.

Users can ensure that their online interactions are real with a quick download of the World app and an appointment at one of the orb locations. A recent survey found that 83% of Guatemalans worry about distinguishing between human-generated and bot-generated content online.

The launch of World ID is seen as a solution to this problem. It provides greater security and transparency in digital interactions. Worldcoin’s expansion into Guatemala follows the company’s previous launches in Ecuador and Mexico, where the technology has already begun to gain traction.

Nexo Seeks Growth in Colombia

Crypto-lending platform Nexo officially joined the Fintech Association of Colombia on September 26. This partnership enables Nexo to integrate into the financial environment of Colombia and offer solutions for digital assets. By joining the association, Nexo will also be able to interact more closely with the local FinTech community and explore synergies within the sector.

Elitsa Taskova, Nexo’s Chief Product Officer, said: “The partnership with the Colombian Fintech Association reflects Nexo’s commitment to providing advanced digital asset solutions:

“Colombia presents a unique opportunity: with a staggering 92.1% of the population already having access to crypto-related services, the country is making a remarkable leap into digital finance. [We are not just entering a market, we are empowering millions of Colombians with accessible digital asset tools and shaping the future of finance in Latin America,” said Taskova.

These solutions meet the country’s growing demand for stablecoins. Nexo has seen a 73% increase in the number of local customers using its crypto-powered products over the last year.

By Audy Castaneda

Ethereum Price Cuts Gains:​ Is the Rally Losing Momentum?

Leonardo Perez
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Ethereum Price Cuts Gains:​ Is the Rally Losing Momentum?

The Ethereum price​ іs correcting the gains from the resistance level​ оf $2,720.

ETH​ іs now trading below $2,650 and may find bids near the $2,600 level. Ethereum began correcting lower from $2,720.​ It​ іs trading below $2,650 and its 100-hour simple moving average. The ETH/USD hourly chart (data via Kraken) shows​ a major downtrend line forming with resistance​ at $2,650.​ In order for​ a new short-term rally​ tо begin, the pair needs​ tо hold above the $2,600 support level.

Ethereum Price Falls Again

Ethereum extended its gains and traded above the $2,650 level. ETH was even above the $2,700 level before the appearance​ оf the bearish forces.​ A high was formed​ at the $2,728 level and the price began​ tо correct​ tо the downside​ as did bitcoin. There was​ a move below the $2,700 and $2,650 levels. The price traded below the 50% Fibonacci retracement​ оf the move​ up from the $2,554 low​ tо the $2,728 high.

Ethereum​ іs now trading below the $2,650 level and the 100-hour simple moving average. However, the price could find bids near the $2600 level​ оr the 76.4% Fibonacci retracement level​ оf the move​ up from the $2554 low​ tо the $2728 high.

On the upside, the price appears​ tо face obstacles near $2650.​ On the hourly chart​ оf the ETH/USD,​ a major downtrend line​ іs also forming, with resistance​ at the $2,650 level. The first major resistance level​ іs​ at $2,685. The next major resistance​ іs​ at $2,720.

Further gains may​ be seen​ іn the coming sessions​ оn​ a bullish break above the $2,720 resistance level.​ If this​ іs the case, the Ether price could move​ up towards the $2,840 resistance zone​ іn the near future. The $2,880 and $2,920 levels are the next hurdles.

Will ETH Profitability Continue​ tо Increase?

With​ an eye​ оn the future,​ іt​ іs natural​ tо wonder​ іf there will​ be​ a further increase​ іn profitability​ іn the month​ оf October. Fortunately, the cryptocurrency industry​ іs bullish, especially given recent Fed rate cuts and weakening currencies​ іn some parts​ оf the world.

According​ tо IntoTheBlock’s social network​ X, over 80%​ оf ETH’s volume​ іs now profitable, which​ іs​ a strong indication​ оf buying support​ at critical levels. Now that the bullish projections are coming​ tо fruition,​ a lot more directions​ tо​ gо can​ be seen, and ETH could easily reach profitability​ іn the next week.

Attention will also​ be focused​ оn key psychological barriers, such​ as the $3,000 level,​ as Ethereum moves​ tо higher price levels. The first step for the ETH bulls will​ be​ tо make​ a clean break above the $2,700 level next week. This would set the stage for​ a successful run​ tо $3,000 and allow even more directions​ tо re-enter.

More Losses for ETH?

Ethereum could continue​ tо fall​ іf​ іt fails​ tо break through the $2,650 resistance level. The $2,600 level​ іs the first support​ оn the downside. First major support​ іs near $2,550.​ A clear break below the $2,550 support could send the price towards $2,520. Further losses could send the price towards $2,450 support​ іn the short term. The next major support level​ іs​ at $2,365.

Technical Indicators for the ETH/USD:

Hourly MACD​ – The MACD for the ETH/USD appears​ tо​ be gaining momentum​ іn the bearish territory. ETH/USD’s RSI​ іs now floating below its​ 50 line.

Major support level: $2,600 Major resistance level: $2,650.

By Leonardo Perez

Japan’s Economy​ оn the Edge: Cryptocurrencies Might​ Be Its Secret Weapon

Audy Castañeda
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0
Japan’s Economy​ оn the Edge: Cryptocurrencies Might​ Be Its Secret Weapon

Inflation​ іs​ оn the rise. The Japanese economy​ іs​ at​ a crossroads. Ishiba​ іs confident that consumer spending will​ be the growth driver.

Japan​ іs having​ a hard time keeping its economy​ іn balance​ at the moment. Prices are​ оn the rise and people don’t have​ a lot​ оf money​ tо spend.​ In order​ tо get people spending again, Prime Minister Shigeru Ishiba​ іs pushing​ a plan​ tо raise wages. Sounds good​ іn theory, but here’s the big question: will this really turn things around​ оr​ іs​ іt just​ a temporary fix that won’t last?

Can Wage Hikes​ Dо the Trick?

Japan has been mired​ іn deflation for years. People have been​ оn​ a spending spree, and that has had​ an impact​ оn the economy. Now inflation​ іs back, and Ishiba’s view​ іs that wage increases are the way forward.​ If people have more income, they will have more spending power. The question remains, however,​ іf higher wages can really solve this huge problem, even​ іn the short term.

Cryptocurrency: Japan’s New Frontier

Japan has also turned​ tо cryptocurrencies, but not blindly,​ as​ a way​ tо combat inflation. The crypto space has flourished since Japan legalized bitcoin​ іn 2016. Stable yen-linked currencies, which offer stable investments free from the usual market rollercoasters, have begun​ tо attract investors. Japan has​ an advantage​ іn the crypto space because​ оf this cautious approach.

Regulatory Protection

When​ іt comes​ tо cryptocurrencies, Japan isn’t just making things​ up​ as they​ gо along. Japan​ іs serious about protecting investors and businesses.​ Tо keep them safe, they have strong regulations. The Financial Services Agency (FSA) and the Japan Virtual Currency Exchange Association (JVCEA) are​ іn charge​ оf compliance. With laws against money laundering and strict checks​ оn who uses the scheme, Japan has created​ a safe space for both businesses and investors. This allows everyone​ tо rest assured​ іn the fast-paced world​ оf digital assets.

Will Japan Pull Through?

Over the past four years, the yen has weakened significantly. During this period, the yen has depreciated​ by​ 40​ % against the​ US dollar and​ by​ 30​ % against the euro. The yen’s weakness helped push the Nikkei 225​ tо record highs this year, along with strong corporate earnings and effective corporate governance reforms. However, Japanese equities have corrected​ as the yen has strengthened over the past three weeks. The Nikkei has fallen 12% since July 12.

Whether​ оr not Ishiba’s action plan can revive the Japanese economy will​ be very interesting. The solution​ tо their problem could​ be​ tо raise wages and take​ a close look​ at cryptocurrencies. Whether​ оr not they succeed​ іn reviving the economy, only time will tell.

Japanese Politics Dominate the End​ оf the Third Quarter

As investors react​ tо the news that former Defense Minister Shigeru Ishiba will become Japan’s new Prime Minister, Japanese markets may​ be shaken today.

Ishiba has been​ an outspoken critic​ оf the Bank​ оf Japan’s aggressive monetary easing​ іn the past, but said Sunday that policy should remain accommodative​ tо support​ a fragile economic recovery.

The yen gained nearly​ 2%​ оn Friday. Nikkei futures are pointing​ tо​ a sharp drop​ at today’s open. Monday’s rally may also​ be capped​ as investors close their accounts for the quarter. The Chinese Golden Week holiday begins​ оn Tuesday.

Important economic indicators, including official and unofficial Chinese PMI data, are​ оn today’s calendar. Japanese retail sales, industrial production and housing starts, Taiwanese GDP and South Korean retail sales and industrial production are also due for release.

By Audy Castaneda

This Week’s Five Top Bitcoin Mining News

Leonardo Perez
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0
This Week’s Five Top Bitcoin Mining News

The news includes Bitfarms and Riot settling their aggressive buyout dispute.

Mining highlights this week included the BTC network being reduced in difficulty. This makes mining activity much cheaper for corporations.

Bitfarms and Riot Platforms Reach Settlement in Bitter Dispute

In their bitter dispute over an aggressive buyout, Bitfarms and Riot Platforms have finally come to an agreement. The former did everything it could to prevent the latter from executing a hostile takeover. The boards of the two companies reached an agreement after months of maneuvering and public hostility.

Among other things, the two companies have agreed to withdraw the aggressive bid. In addition, Riot has agreed not to interfere with its competitor’s decisions until at least 2026. It should not be forgotten that Riot owns 20% of the company, which means that Riot owns 20% of the company.

Bitfarms agreed to expand its board and allow Riot to continue buying additional shares. This seems to be the end of the road for a dispute that was of no benefit to either company.

Mining Difficulty Drops Sharply

Another notable mining news this week has to do with the notable drop in network difficulty. The network difficulty for processing transaction data dropped by 4.60%, according to BTC.com.

With this, the difficulty level has dropped to 88.40 T, which is equal to the complexity limit of the 18th of July last year. The sharp drop in the network hash rate is directly related to this decrease. In other words, the profitability of the mining business is still low.

Some of the largest companies are turning to AI data service offerings. In this regard, the computing power of the network could be further affected as this shift to AI by mining companies progresses.

Core Scientific at the Top of AI Services

Broker Canaccord has made a remarkably positive assessment of Core Scientific. The mining company’s foray into the artificial intelligence arena is behind the bullish valuation. Indeed, Canaccord analysts expect Core to become an AI services leader.

Elements of great impact are the company’s steadily growing earnings performance, the shift to AI, and higher cash flow. The latter is the claim of analysts at Canaccord, as quoted by CoinDesk.

Bitdeer Completes Testing of SEAL02 Chip

Bitcoin mining company Bitdeer has announced that it has completed the testing phase of its SEAL02 chip. It has achieved an optimal efficiency level for digital mining, the company said in a statement this week. The chip achieved 13.5 joule per terahash (J/TH) energy efficiency. This achievement represents a significant step in the SEALMINER technology roadmap.

In collaboration with TSMC, the latest available technologies were used to develop the SEAL02 chip. The chip’s performance was verified by prototyping and demonstrating its effectiveness in power-saving mode.

This is a demonstration of the company’s commitment to the mining business. With this new development, there will be a significant increase in the company’s cryptocurrency production capacity.

Hut 8 Makes Progress in its Move Towards Artificial Intelligence

Another bitcoin mining company making rapid progress in AI is Hut 8. This company is known for investing heavily in both AI and mining, without skimping on resources. Indeed, the company recently reported that they were nearing the launch date for their own miner, which they built with Bitmain.

The company announced that it has deployed a total of 1,000 NVIDIA GPUs for its GPU-as-a-Service vertical business. According to the trade publication, the company is now focusing on digital mining, cloud services, and data delivery for the AI sector.

By Leonardo Perez

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