Read in the digest
- The entire cryptocurrency market reacts positively to Yellen’s slip of Biden’s executive order.
- Thailand is set to become a crypto haven with the introduction of lower taxes.
- An avalanche of funds flows into the cryptocurrency ecosystem, targeting crypto companies and investors interested in mining ETFs.
- Second largest NFT collection makes a donation of $1 million to Ukraine.
BTC and Cryptos Rally After Yellen Lets Slip Details of the Upcoming Executive Order
Bitcoin shook off the decline of recent days to soar past the $42,000 mark in less than a day. The increase resulted in an impressive 10% spike and led to the asset’s highest level since March 2nd.
The digital asset spike came on the heels of a statement released by Treasury Secretary Janet Yellen which shared insights into Biden’s executive order. Although Secretary Yellen shared details ahead of schedule and quickly deleted it, the components were captured by a web archive.
Yellen’s accidental slip hinted that Biden’s executive order would be positive for crypto, and thus, the markets reacted positively. President Joe Biden reportedly signed the executive order for agencies to study the “future of money,” and the decision has been hailed as a step in the right direction.
The 1-day price chart for Bitcoin (BTC). Source: CoinMarketCap
Flipsider:
- The 180-day turn around by agencies as of the executive order to study the nature of cryptocurrencies and make regulations may cause a measure of uncertainty for investors.
Why You Should Care
The executive order on digital assets is geared towards streamlining the government’s efforts in the ecosystem and may serve to usher in an era of coherency in the space.
Thailand Eases Crypto Tax Burdens
Thailand has opted to take steps to improve the country’s status as a cryptocurrency paradise. The country reportedly intends to do so by relaxing tax burdens from April 2022 through to the end of 2023.
The country achieved this measure after the cabinet’s decision to remove the 7% VAT on cryptocurrency transactions. Investors will also be able to seize the initiative by using government approved cryptocurrency exchanges to offset their annual losses against crypto profits.
Since 2021, Thailand has been improving its cryptocurrency framework, famously removing the 15% withholding tax plans after public outcry. Thailand’s cryptocurrency traders have since grown beyond new stock market traders thanks to the government’s receptive stance on the sector.
Flipsider:
- Thailand is making significant forays into the development of a CBDC that could come into direct competition with cryptocurrencies in the country.
Why You Should Care
Tax breaks for cryptocurrencies are always a sure-fire way to stimulate growth in the industry of a particular jurisdiction, and the successes of this model could be easily replicated in other countries.
VanEck ETF, Goldman Sachs Galaxy + Bain Capital’s Crypto Fund
VanEck has launched a crypto mining ETF for investors called the ‘Digital Assets Mining ETF’ (DAM). The fund will sink 80% of assets into securities on mining firms that earn 50% of their revenue from mining activities, and will track the MVIS Digital Assets Mining Index.
In similar news, Goldman Sachs looks set to introduce clients to an ETH fund that issued by Galaxy Digital. Goldman Sachs will be paid an introduction fee, and so far 28 clients have signed up with cumulative investments of $50 million.
One of the largest start-up investment firms has indicated a strong desire to wade into the cryptocurrency ecosystem with a $560 million fund. The fund will be investing in 30 companies over the next 10 years, stating that they are “unfazed and in some ways uninterested in short-term market gyrations.”
Flipsider:
- VC firms have been lambasted by Twitter’s founder Jack Dorsey for controlling Web 3.0, as opposed to its intended ownership by users.
Why You Should Care
The flow of institutional investments into crypto signals strong bullish momentum for digital assets across the board.
Bored Ape Donates to Ukraine
NFT collection Bored Ape Yacht Club has disclosed the donation $1 million to Ukraine in the face of Russia’s invasion of the country as the collection sent 388.999 ETH to the country’s official Ethereum wallet address.
BAYC matched the donations made by holders of the collection, having been inspired by them. The collection has grown exponentially over the last year to become the second largest in the world, and has attained cult status in crypto circles.
Ukraine’s total received cryptocurrency donations now stand at over $88 million, with cryptocurrency entities like Binance and Gavin Wood making significant submissions to the country’s cause. A rare CryptoPunk NFT was also donated to the country valued at the time at over $200,000.
Flipsider:
- Regular charitable platforms like Patreon have excluded donations to Ukraine from their platforms on grounds of rule violations due to an excerpt against “funding weapons or military activity.”
Why You Should Care
The Russian-Ukrainian conflict is often described as the first crypto war, and the events currently playing out are bound to set a precedent for the future. The future of donations has already been flipped with cryptocurrencies becoming the go-to method for several entities.
