Crypto SWOT: A Bitcoin spot-backed ETF could bring $30 billion in new demand for the cryptocurrency.

Strengths

Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Compound, rising 149.63%.

Coinbase CEO Brian Armstrong will meet with House Democrats behind closed doors on Wednesday morning. Armstrong will speak privately with lawmakers from the New Democrat Coalition about digital-asset legislation and related issues including tax, national security, privacy, and climate, writes Bloomberg.

A Bitcoin spot-based ETF could bring $30 billion in new demand for the world’s largest digital asset, according to crypto trading firm NYDIG.

Weaknesses

Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was Rocket Pool, down 26.20%.

Crypto traders are turning increasingly bearish on the BNB token that serves as the centerpiece of the embattled Binance digital-asset trading platform. The negative sentiment is most reflected on the perpetual swap market, a type of futures contract used in crypto markets that do not expire, writes Bloomberg.

Kuwait has prohibited the use of crypto for payments or investment to combat money laundering. The capital markets authority also placed an absolute ban on all digital asset mining, prohibited the recognition of crypto as decentralized currency, and warned the public that companies are not allowed to provide any type of crypto related services, writes Bloomberg.

Opportunities

Crypto trading platform Bitget plans to expand into the Middle East and hire up to 60 new members of staff. The company said it has already opened an office in downtown Dubai to support the expansion and will explore opportunities in Bahrain and the UEA, writes Bloomberg.

Elon Musk posted a Scooby-Doo meme this week and in response Dogecoin added $320 million in just 15 minutes. The cryptocurrency based on the Doge meme quickly jumped in value by 3% after the tweet, writes Bloomberg.

The aggregate total of active loans in the crypto lending sector has increased to $5.5 billion since the beginning of the year. Aave is the current market leader with about 50% of the market in active loans, writes Bloomberg.

Threats

A North Korean government-backed hacking group breached U.S. IT management company JumpCloud to use it as a springboard to target an unknown number of cryptocurrency companies, writes Bloomberg.

SEC chairman Gary Gensler doubled down on his promise to crack down on “the Wild West” cryptocurrency industry. The industry is “rife with fraud, scams, and abuse,” he explained, writes Bloomberg.

Crypto fund fraudster Eddy Alexandre was sentenced to nine years after pleading guilty to swingling $249 million from investors through his EminiFX cryptocurrency scheme, writes Bloomberg.

Frank E. Holmes

Frank Holmes is CEO and chief investment officer of U.S. Global Investors, Inc., a boutique investment advisory firm based in San Antonio that manages domestic and offshore funds specializing in the natural resources and emerging markets sectors. The company’s no-load mutual funds include the Global Resources Fund (ticker PSPFX), the World Precious Minerals Fund (UNWPX) and the Gold Shares Fund (USERX).

Please consider carefully the fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk.

The S&P/TSX Global Gold Index is an international benchmark tracking the world's leading gold companies with the intent to provide an investable representative index of publicly-traded international gold companies. The FTSE Gold Mines Index Series encompasses all gold mining companies that have a sustainable and attributable gold production of at least 300,000 ounces a year, and that derive 75% or more of their revenue from mined gold.

Holdings as a percentage of net assets as of 6/30/07: Jiangxi Copper (China Region Opportunity Fund 1.74%); Silvercorp Metals Inc. (World Precious Minerals Fund 2.78%, Global Resources Fund 0.89%, China Region Opportunity Fund 2.42%); Gold Fields Ltd. (Gold Shares Fund 6.05%, World Precious Minerals Fund 2.58%, Global Resources Fund 0.39%); Sino Gold Mining Ltd. (Gold Shares Fund 1.03%, World Precious Minerals Fund 0.58%, China Region Opportunity Fund 0.27%); Anglogold Ashanti (0.0%); Dynasty Gold (0.0%).

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Frank Holmes

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

opinion

Crypto SWOT: A Bitcoin spot-backed ETF could bring $30 billion in new demand for the cryptocurrency.

By Frank E. Holmes

Kitco Commentaries
Opinions, Ideas and Markets Talk

Frank E. Holmes

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opinion

Crypto SWOT: A Bitcoin spot-backed ETF could bring $30 billion in new demand for the cryptocurrency.

By Frank E. Holmes

Kitco CommentariesOpinions, Ideas and Markets Talk

Frank E. Holmes

Tags:

Kitco Commentaries
Opinions, Ideas and Markets Talk