XRP Momentum Could Set a Precedent for Bitcoin

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According to a report by NYDIG, spot Bitcoin ETFs could increase demand for BTC by as much as $30 billion. The crypto-trading company estimates that there is $27.6 billion in spot-like products, compared to $210 billion invested in gold funds, which bitcoin is often compared to. Bitcoin is approximately 3.6 times more volatile than gold, which means that on an equivalent volatility basis, investors would need 3.6 times less bitcoin than gold on a dollar basis to be as much exposed to risk. Still, that would drive nearly $30 billion in additional demand for a bitcoin ETF, NYDIG writes. The possibility of a spot bitcoin ETF in the United States seems much more likely since BlackRock submitted an application to list one with a supervisory sharing agreement, which the SEC considers necessary to prevent market manipulation.

El Salvador-rated bonds due 2027 have trended substantially higher over the past six months amid the bitcoin rally, defying some analysts’ expectations. The Central American country, which made BTC legal tender in 2021, saw its debt rating downgraded by Fitch last September with a forecast of default in January. In fact, junk-rated bonds are up 62% since the start of 2023 and are trading at 72 cents on the dollar. Bitcoin is up 79% over the same period. However, El Salvador bonds even outperformed the Invesco Emerging Markets Sovereign Debt (PCY) ETF, one of the country’s largest debt holders, according to Factset.

Kuwait’s financial regulator has banned crypto payments, investments, and mining as a way to combat money laundering. The bans aim to comply with the Financial Action Task Force (FATF) global recommendations on crypto assets, according to the regulator. “Securities regulated by the Central Bank of Kuwait and other securities and financial instruments regulated by the Capital Markets Authority are excluded from this ban,” the regulator said in a circular. FATF compliance requires safeguards against money laundering, but the international watchdog says it hasn’t asked any country to ban crypto, he told CoinDesk in May. .

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