Ben Strack

The SEC continued its enforcement spree on the crypto sector Monday by going after a Miami-based investment adviser the agency claims ran a fraud scheme.&nbsp;



BKCoin Management raised roughly $100 million from at least 55 investors to invest in cryptoassets between October 2018 and September 2022, the SEC <a href="https://www.sec.gov/news/press-release/2023-45" target="_blank" rel="noreferrer noopener">said</a> Monday.&nbsp;



The company and one of its principals, Kevin Kang, used $3.6 million to make “Ponzi-like payments,” the commission alleges in a complaint filed in the United States District Court for the Southern District of Florida. Kang also used at least $371,000 of investor money to pay for vacations, sporting events tickets, and a New York City apartment.



BKCoin and Kang assured investors their money would be used primarily to trade cryptoassets and generate returns via separately managed accounts and five private funds, according to the SEC. The firm misrepresented to some investors that it received an audit opinion from a “top four auditor,” the agency’s complaint adds.&nbsp;



“As we allege, investors entrusted their money to the defendants to trade in crypto assets. Instead, the defendants misappropriated their money, created false documents, and even engaged in Ponzi-like conduct,” Eric Bustillo, director of the SEC’s Miami regional office, said in a statement.



The SEC has obtained an asset freeze against BKCoin Capital and appointed a receiver — a neutral party appointed by a judge to manage another party’s affairs. The complaint seeks permanent injunctions, disgorgement, prejudgment interest and a civil penalty from the defendants.  



Kang and the company did not immediately return a request for comment.&nbsp;



<a href="https://blockworks.co/news/latest-in-crypto-hiring-hedge-fund-makes-hires-ftx-adds-while-rivals-cut">BKCoin Capital in June hired Paul Magahis</a> as president, Adriano Caloiaro as chief technology officer and Leanna Haakons as director of business development and investor relations. The firm said that month its diversified investment platform had more than $145 million in assets under management.



CoinDesk <a href="https://www.coindesk.com/business/2022/12/08/crypto-hedge-fund-bkcoin-fired-co-founder-kang-over-misappropriated-investor-funds/" target="_blank" rel="noreferrer noopener">reported</a> in December, Kang was fired from the company in October for allegedly misappropriating $12 million in assets from three multi-strategy funds, according to <a href="https://www2.miami-dadeclerk.com/ocs/ViewerPDF.aspx?QS=c5IYpK185bY23cLz6BVS3OZjSma9F6nnQySIhHZGBLkQk%2fn9xZFU%2fL%2f0aRq2uP1e2XLhdBMGEy5ZXt4dz9rywYCCxltgLt10z5YWbFvLiUpjOBE%2bOA311PTpSNE2bMBtpVnW9cAaik7nNWxpQIa02hOREUkr%2fjhuIhq4uaqdWEKIfliAm0o4Dmz9rYTD9CwRML03GRy0Z0%2fi0G8o4N1%2bMtSEvle2PKd9k1vHB76LL5kokLWcH3b4R4mpjJK%2bGgvlgg9VbIqaDaXyZDn7T1hN%2fd451WOukd9jDdxKSJKPiisbLjgCr2spgKHdh53SaiU1Y082GetUwTP2gdNoNs6gUr%2bZV6FjSo6AUU%2fV4Sk0HEdTeq4b5TPx%2bikJaxS6cOebq1F8HA%2be2sU%3d" target="_blank" rel="noreferrer noopener">filings</a>.



A BKCoin Management founder engaged with John Annesser — a partner at law firm Annesser Armenteros — after discovering irregularities with respect to the actions of one of its managing members, Annesser told Blockworks in an email. After an internal investigation, the company contacted the SEC and law enforcement agencies to self-report what had been discovered and seek the appointment of a receiver, he added.&nbsp;



“At all times prior to the appointment of a receiver, both BKCoin Management and the reporting founding partner have fully cooperated with all requests from both regulatory and law enforcement agencies,” Annesser added. “Due to the ongoing cases, no further comment will be made at this time.”



Monday’s SEC enforcement action comes as the agency <a href="https://blockworks.co/news/sec-crypto-enforcement-actions-accelerate">has ramped up</a> its focus on the crypto space over the last year.&nbsp;



The SEC last month charged Terraform Labs and CEO Do Kwon for <a href="https://blockworks.co/news/sec-charges-do-kwon-terraform-labs-with-fraud-misleading-investors">allegedly “orchestrating” cryptocurrency securities fraud</a>. A week earlier, crypto exchange <a href="https://blockworks.co/news/kraken-settles-sec-crypto-staking-program">Kraken agreed to settle with the SEC for $30 million</a> over its staking products.



Updated March 6, 2023 at 6:00 pm: Added comments from John Annesser, partner at law firm Annesser Armenteros.



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BKCoin

SEC Alleges BKCoin Collected From Crypto Investors, Ran Fraud Scheme

Macauley Peterson

<div id="highlights-block_623df904d2a90" class="highlights">
 <ul>
 <li>Pavel Zavalny, chair of Russia’s Duma committee on energy, said Russia was willing to consider bitcoin for payment of Russian fossil fuels</li>
 <li>Several major digital assets are at technical resistance levels</li>
 </ul>
 
</div>



Crypto markets led by bitcoin have been in a strong short-term uptrend this week, but several of the largest assets by market cap ran into an area of major resistance on Friday, bounded by the confluence of their 200-day exponential moving average price and previous range highs.



The Bitcoin CME Futures are up about 15% since the start of the week, at a level not seen since mid-February. If bitcoin ends the week above $43,000, it will be the first time since the end of September.



Renewed institutional interest is providing a tailwind, according to Noelle Acheson, Head of Market Insights at Genesis.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“Just this week alone, we had statements from <a href="https://cms.blockworks.co/blackrock-ceo-ukraine-war-could-speed-digital-currency-adoption/" target="_blank" rel="noreferrer noopener">BlackRock</a>, <a href="https://cms.blockworks.co/goldman-sachs-makes-milestone-crypto-trade-with-galaxy-digital/" target="_blank" rel="noreferrer noopener">Goldman Sachs</a>, Bridgewater, <a href="https://cms.blockworks.co/financial-firm-cowen-unveils-digital-assets-unit/" target="_blank" rel="noreferrer noopener">Cowen</a> and Virtu about crypto services and/or investments,” Acheson told Blockworks.</blockquote>



Acheson also points to the <a href="https://cms.blockworks.co/?s=funding+roundup" target="_blank" rel="noreferrer noopener">steady stream</a> of large fundraises in the crypto space, as well as an <a href="https://cms.blockworks.co/?s=hiring" target="_blank" rel="noreferrer noopener">influx of new talent</a>, including from traditional Wall Street firms.



Bitcoin has been oscillating between about $37,000 and $45,000 for the past two months, with long-term declining volatility that, like a tightly coiled spring, typically precipitates large price swings. On the five-day timeframe, bitcoin has not seen volatility this low since October 2020.



<div class="wp-block-image"><figure class="aligncenter"><img decoding="async" src="https://lh3.googleusercontent.com/-MURfQ1mrLipDqhYSQ5IgU56pJmO84QxIlPug7hLHoJ27iSOYF0aO1umxU5sgpwKMtRwbEavmoisWuVmf3qFrjhdJSR7KwNBWxVfmaSm3KSSdC-JyRX0NRcQTGxmTztWoANHByL1" alt=""/><figcaption>Bollinger Band Width Percentile, a volatility-based indicator, 5 day time frame; Source: TradingView</figcaption></figure></div>



Both bitcoin and ether were bouncing off their daily 200-EMA in midday Friday trading.



<div class="wp-block-image"><figure class="aligncenter"><img decoding="async" src="https://lh6.googleusercontent.com/nLtIoYwyy-4zcCPjHL284soU-0X4nNRQXBfS629zwZfmchNTxJMu_rf3HUoQ5hwAtlAixfkO-40rAPOV0TsqWiEaRX1qrFmKlYT94fpjy1EwMNivAGls-Q1qQGQW3kB2jaLGUSO4" alt=""/><figcaption>The ETHUSD daily chart on the Coinbase exchange, with 200-EMA (blue line); Source: TradingView</figcaption></figure></div>



<h3 class="wp-block-heading">An uptick in bitcoin interest</h3>



Bitcoin’s global open interest has reached <a href="https://app.krowntrading.net/desk/cryptos/dashboard" target="_blank" rel="noreferrer noopener">upwards of $13.5 billion</a> across all exchanges for the first time since the start of the year.



“In part, this uptick in interest is down to bitcoin’s resilience and liquidity. A large part of it, though, is also driven by the growing attention on BTC’s role on the global stage as a result not just of the war in Europe but also the extraordinary monetary policy framework central banks around the world are trying to navigate,” Acheson said.



The war in Ukraine has become a fundamental driver of price action for another reason, Kevin Kang at BKCoin Capital, told Blockworks.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“Russia’s chairman of the Energy Committee [in the State Duma], Pavel Zavalny, showed his willingness to accept bitcoin as payment for energy exports,” Kang said.</blockquote>



Zavalny’s comments came in a <a href="http://pressmia.ru/pressclub/20220324/953580633.html">video interview with RIA Novosti</a>, a Russian state-owned television station earlier this week, which were widely circulated on Twitter and picked up by Western media including <a href="https://www.cnbc.com/2022/03/24/russia-might-take-bitcoin-as-payment-for-oil-and-gas-as-sanctions-rise.html">CNBC</a> and the <a href="https://www.bbc.com/news/business-60870100">BBC</a>.



There is no indication that bitcoin is actually being used in this manner, and Jerry Brito, Executive director at CoinCenter, doubts their significance, <a href="https://twitter.com/jerrybrito/status/1507344116698554368">noting on Twitter</a>, “the reference to Bitcoin was clearly a throwaway line.”



Kang also pointed to favorable news regarding <a href="https://cms.blockworks.co/exxon-mobil-powering-bitcoin-mining-pilot-using-excess-natural-gas-report/" target="_blank" rel="noreferrer noopener">bitcoin mining by major energy companies</a>.



“Exxon [is] using excess gas to mine bitcoin. That is big, as Exxon could lead other energy producers to do the same,” Kang said.



Morgan Chittum provided additional reporting for this story.



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Bitcoin

Bitcoin Presses Range Highs Amid Russian Gas Payment Speculation

Michael Bodley

<div id="highlights-block_621909b75a046" class="highlights">
 <ul>
 <li>Bitcoin and ether both plunged more than 10% on Thursday before recovering to notch modest 24-hour gains</li>
 <li>Crypto funding behind the conflict raises the possibility of quicker regulation, industry participants say</li>
 </ul>
 
</div>



While the crisis in Ukraine roils global equity and digital asset markets, bitcoin and other cryptocurrencies are increasingly seen as risk assets in the eyes of institutional traders.



Recent shocks have <a href="https://cms.blockworks.co/bitcoins-plunge-on-ukraine-invasion-undermines-status-as-digital-gold/" target="_blank" rel="noreferrer noopener">hindered the premise</a> of bitcoin as digital gold, or a store of value — its standing as a bellwether investment in times of turmoil has likewise been called into question.



Bitcoin and other cryptocurrencies, including ether, plunged more than 10% Thursday as the Russian incursion into Ukraine started, before bouncing back to book modest gains on the day. Digital assets also continued to rise Friday as traders appeared to shake off the impact of medium- and longer-term implications of the invasion.



Kevin Kang, co-founder of digital asset hedge fund firm BKCoin Capital, attributed the recovery to “short covering and equities recovering earlier losses.”



Indeed, bitcoin has traded in near tandem with stocks as of late. Wary of the correlation, big-time traders have largely stayed on the sidelines of the latest market moves, according to Rance Masheck, CEO of trading platform <a href="https://www.ivestplus.com" target="_blank" rel="noreferrer noopener">iVest Plus</a>.



“Overall, [crypto] moved with the way the US market moved,” Masheck said. “Some of it came back, just like the market came back, but the big players aren’t jumping in or bailing out.”



iVest data show a decline of about 50% in bitcoin trades over $100,000 from the same time last week — plus, the firm recorded a net outflow of a modest $19 million, indicating few directional bets.&nbsp;



Bitcoin was up 9.6% in the last 24 hours as of midday Friday, while showing a weekly decline of -2.9%. Ether, meanwhile, increased 10.7% in the last day, paring week-long losses to -5.6%.&nbsp;



Volatility shows few signs of slowing.



“Historically, the day of the invasion marked a local bottom in the market as uncertainty dissipates, but there are a lot of talks about how Russia may be just starting and may go into Poland and other near NATO nations, which will put the US in a limbo,” Kang said. “There are still a lot of uncertainties in the market. We expect the volatility to continue.”&nbsp;



Brian Brooks, CEO of bitcoin mining and crypto technology company Bitfury, said bitcoin is trading as it should in a risk-off environment where investors “are going to retreat to Treasurys and cash for a short period of time.”



Other macro factors are at play behind recent market volatility, too, he said — including looming tax bills on the horizon that traders may not have budgeted for. A recent drying up of liquidity hasn’t necessarily helped matters either.



“Even though bitcoin in part has an element of store of value to it, it’s still thinly traded enough that it’s acting more like a risk asset,” Brooks said. “Other than bitcoin, the right way to think about crypto tokens is they’re risky internet stocks — and internet stocks are way down.”



Meanwhile, the growing prospect of rising interest rates in the US — expected as a means to tamp down runaway inflation — is likewise weighing on crypto markets, according to David Tawil, president of cryptocurrency hedge fund firm ProChain Capital. Ongoing supply chain jams are also roiling traditional financial instruments and digital assets, Tawil said.



“Clearly, the downdraft in the asset class has been because the dominant feature has been, essentially, a growth-tech story, a risk-on asset,” Tawil said. “Therefore, when we get into a risk-off environment, it’s going to trade down, including inflation, rising rates and now geopolitical instability.”



The Ukraine tensions also raise the possibility of sanctioned Russian oligarchs turning to crypto to transfer money as banks have cut them off, Masheck said — as well as the government itself tapping digital assets to circumvent traditional finance. It heightens the prospect of US regulators taking a faster pace as both Ukraine and <a href="https://cms.blockworks.co/as-russia-tests-digital-ruble-plans-for-broader-crypto-regulation-are-uncertain/" target="_blank" rel="noreferrer noopener">Russia</a> have moved to legalize and regulate the space.



“Obviously, those sanctions will have some level of impact, but crypto allows for a little bit of a circumvention of some of that,” he said.



Masheck and Brooks both expect bitcoin to behave less like a risk asset and lose its correlation to stocks as the asset evolves.



“As we move forward here, I think we’ll start to see more of a divergence between what US markets are doing and what’s happening in crypto,” Masheck said.



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As Ukraine Crisis Underscores Bitcoin as Risk Asset, Volatility May Be Here To Stay

Kevin Kang

<div id="highlights-block_61cbc0b360174" class="highlights">
 <ul>
 <li>With Gary Gensler helming the SEC, there will be greater regulatory clarity in 2022</li>
 <li>2022 could see a shift in the narrative around bitcoin mining and energy usage</li>
 </ul>
 
</div>



2021 turned the tide for cryptocurrencies; a major influx of investment including household names such as Apple’s Tim Cook and Tesla’s Elon Musk, plus former Twitter CEO Jack Dorsey leaving the multi-billion-dollar company he founded to become a ‘missionary’ for Bitcoin with his new brainchild <a href="https://cms.blockworks.co/jack-dorseys-square-to-change-its-name-to-block/" target="_blank" rel="noreferrer noopener">Block</a> (formerly Square).



Bitcoin, ethereum and many other cryptocurrencies hit all-time highs during the year, enticing even risk-averse institutional money-managers to invest, and fuelling the crypto buzz amongst retail investors. November 2021 alone saw $4 billion entering the market.



As an exciting 2022 looms, here are the major questions, issues and likely developments in BKCoin Capital’s crystal ball.



<h3 class="wp-block-heading">ETFs&nbsp;</h3>



In October 2021, the first bitcoin futures ETF went live in the US after winning regulatory approval from the SEC. The ProShares Bitcoin Strategy ETF (<a href="https://cms.blockworks.co/bito-on-track-to-be-first-fund-in-history-to-hit-1b-in-aum-in-two-days/" target="_blank" rel="noreferrer noopener">BITO</a>) listed on the NYSE, giving the crypto industry its long-awaited wish. It launched with stunning success, surpassing $1 billion in trading volumes on its first day of trading and becoming the second biggest ETF launch ever, by volume.



A physical bitcoin ETF has long been an asset class watershed. It provides a more conventional means of investment, enabling investors to buy directly from traditional investment brokerages.



In November, the SEC rejected global investment manager VanEck’s filing for a first-of-its-kind bitcoin ETF, which could have supercharged bitcoin’s price. The SEC cited risks of manipulation and fraud within the market. However, with more regulation expected next year, don’t be surprised to see the SEC’s thinking shift. 2022 could be the year we finally see physical bitcoin ETF approval and Ethereum ETFs.&nbsp;



<h3 class="wp-block-heading">More regulatory dialog</h3>



With Gary Gensler helming the US Securities and Exchange Commission (SEC), there will be greater regulatory clarity in 2022. The IRS is also naturally motivated to introduce regulation — for US citizens to file taxes correctly — so the conversation is moving in a promising direction. Gensler also understands the importance of cryptocurrency as an innovative, new technology — one to be embraced, not shut down — having previously warned about risks to investors without sufficient regulation.&nbsp;



As a rapidly maturing asset class, cryptocurrencies need clear and pro-innovation regulatory guidelines for companies and investors. Regulatory fog does not benefit the industry. Eliminating these points of friction by sensible regulation is a prerequisite to becoming an integral part of economies worldwide and facilitating cryptocurrencies’ promises of transparency and free exchange.



<h3 class="wp-block-heading">Sustainable mining</h3>



The environmental impact of the cryptocurrency industry has been a hot topic in 2021, specifically energy usage in mining bitcoin. 2022 could see a shift in the narrative.



China’s <a href="https://cms.blockworks.co/china-mining-exodus-seen-as-positive-for-bitcoin/" target="_blank" rel="noreferrer noopener">ban</a> on cryptocurrency mining in May triggered a mass exodus of miners, and a race to acquire the associated machinery. The radical decision was motivated by other factors and the former home to 75% of global bitcoin mining capacity is clearly conscious of its carbon footprint and under pressure to reduce it.



While much remains to be done to mitigate the environmental impact, companies such as Riot Blockchain have been identifying eco-friendly projects with large energy capacities and a cost-efficient rate for crypto mining. There is an ongoing effort within the industry and it will be interesting to see how this develops in 2022.&nbsp;



Bitcoin&#8217;s hash rate has fully recovered post its short-term retreat after China’s mining ban. US miners have taken advantage and the country now has the world’s highest hash rate. With ESG investment front of mind, more investment will be made in North American miners.



<h3 class="wp-block-heading">The domino effect</h3>



After El Salvador made Bitcoin legal tender, 2022 will see more countries follow suit.&nbsp;



President Bukele’s decision to make El Salvador the world’s first country to officially recognize bitcoin as legal tender was powerful. It has the potential to empower people who are either under-banked or living in nations experiencing (hyper)inflation.



The pioneering move has already had — and will continue to have — implications in the emerging economies of Latin and Central America. Brazil, Panama, Paraguay and Argentina are four countries worth tracking in 2022. If they follow <a href="https://cms.blockworks.co/el-salvador-went-all-in-on-bitcoin-will-other-countries-follow/" target="_blank" rel="noreferrer noopener">El Salvador’s lead</a>, it could send major ripples through the financial markets and catalyze more institutional adoption.



Myanmar’s shadow government, the National Unity Government (NUG), has also declared tether as its official currency. While the NUG’s formal control in the country is still in flux given its exile after this year’s military coup, the European Union still recognizes the NUG as the country’s sole government.&nbsp;



<h3 class="wp-block-heading">A positive direction</h3>



With cryptocurrencies running from one all-time high to the next, 2021 also saw the cryptocurrency industry and market mature considerably.



While obstacles remain, the asset class has become more sophisticated, widely accepted and accessible. Prepare for more institutional investment, regulatory dialogue and the first-of-its-kind bitcoin ETF.&nbsp;



In a world of uncertainty, one thing is for sure — 2022 will be another exciting year with interest and the influx of capital only heading in one (positive) direction.

2022

2022: The Year Crypto Comes of Age

<div id="highlights-block_60ca5cf689f7e" class="highlights">
 <ul>
 <li>We’re still in the very early innings of cryptocurrency adoption, and traditional allocators and investors are not ignoring this asset class anymore</li>
 <li>Holding bitcoin on the balance sheet will be no different from holding euros or Mexican pesos</li>
 </ul>
 
</div>



It’s been a fascinating month between the market getting chopped in half from all the FUD news coming out at the same time as a lot of bullish news. I’ve never seen any asset class where people are as enthused and bullish as they are after the market pulls back 50%.



Are we all nuts or are we all onto something?



Check out this list of just some of the most recent bullish news that came out last week:



<ul class="wp-block-list"><li>El Salvador officially declared&nbsp;bitcoin <a href="https://cms.blockworks.co/el-salvador-approves-bitcoin-as-legal-tender-in-supermajority/" target="_blank" rel="noreferrer noopener">legal tender</a> and plans to offer facilities to mine bitcoin with 100% renewable energy.</li><li>France, Switzerland and The Bank of International Settlements are launching a <a href="https://www.banque-france.fr/en/communique-de-presse/banque-de-france-swiss-national-bank-and-bank-international-settlements-innovation-hub-collaborate" target="_blank" rel="noreferrer noopener">trial</a> on how banks can handle Central Bank Digital Currencies&nbsp; across borders.</li><li>India is moving to classifying bitcoin as an asset class.</li><li>The World Economic Forum issued a <a href="https://www.weforum.org/whitepapers/decentralized-finance-defi-policy-maker-toolkit" target="_blank" rel="noreferrer noopener">toolkit</a> on how policy makers should treat decentralized finance (DeFi).</li><li>MicroStrategy’s junk bond <a href="https://cms.blockworks.co/microstrategy-is-selling-debt-to-buy-more-bitcoin-heres-what-that-means/" target="_blank" rel="noreferrer noopener">offering</a> was oversubscribed, and the firm offered up to $1 billion of securities to potentially buy more bitcoin.</li><li>Interactive Brokers <a href="https://cms.blockworks.co/interactive-brokers-reveals-plan-to-offer-crypto-trading/" target="_blank" rel="noreferrer noopener">plans</a> to offer digital asset trading by the end of the summer.</li><li>Victory Capital, with $157 billion in AUM, announced <a href="https://cms.blockworks.co/victory-capital-joins-nasdaq-and-hashdex-to-launch-private-funds-for-crypto-investors/" target="_blank" rel="noreferrer noopener">plans</a> to enter the cryptocurrency market.</li><li>Carl Icahn is looking to get involved in the cryptocurrency space in a ‘relatively big way.’</li><li>The Biden administration is proposing a $6 trillion budget for the 2022 fiscal year beginning October 1. It’s set to be financed through deficit financing and raising taxes.</li></ul>



That was a long list and I’m out of breath just from typing it, however there is so much fear in the market that all these great bullish headlines seem to be ignored.



<h3 class="wp-block-heading">El Salvador: bitcoin’s savior?</h3>



Let’s start with the El Salvador news. Despite the country’s nominal GDP of only $25 billion, it has bigger global implications. Some of the emerging countries that have been decimated by inflation have already been using US dollars or cryptocurrencies in the black market as a counterbalance to their official, inflated currencies.



However, with 25% of all M2 money supply having been printed this past year alone, it’s inevitable the US dollar will devalue, and we are already seeing inflation showing up in consumer prices. As bitcoin becomes legal tender in one country with more to follow in Latin America, the digital currency will have to be recognized as money under the US commercial law, which means banks will have to treat bitcoin like any other foreign currency.



As a result, the demand for bitcoin or other virtual currency in emerging markets could increase in addition to corporate treasurers potentially buying bitcoin without facing as much backlash. Holding bitcoin on the balance sheet will be no different from holding euros or Mexican pesos.



<h3 class="wp-block-heading">Digital assets are here to stay</h3>



With the Bank of International Settlements and World Economic Forum issuing guidance on how to handle CBDCs, it seems as though the global elites don’t expect cryptocurrencies to go away. They wouldn’t issue guidelines if they thought digital assets were just a fad.



Separately, India looking at classifying bitcoin as an asset class seems to squash some of the FUD that’s been coming out of India as of late. Plus the news about MicroStrategy, Interactive Brokers and Carl Icahn are all bullish because they show that more money is flowing into this new asset class.



They also show how we’re still in the very early innings of cryptocurrency adoption, and traditional allocators and investors are not ignoring this asset class anymore.&nbsp;



On the macro side, the S&amp;P 500 hit an all-time high at the same time the Federal Reserve’s balance sheet hit an all-time high of over $8 trillion. Also, the Biden administration is proposing a $6 trillion budget for the next fiscal year as well as an $1 trillion infrastructure bill, which came down from the $7 trillion initially proposed.&nbsp;



This is an unprecedented amount of money printing and a lot of money being sloshed around in the market. We’re seeing a record amount of SPAC deals in 2021 as well as all the private companies raising capital at eye-watering valuations with no problem.



With bitcoin’s capped supply at 21 million as well as Ethereum’s EIP-1559 expected to go live next month, which will evolve Ethereum as a deflationary asset, I believe the writing is on the wall when it comes to what will hold value over the coming decade. And it definitely isn’t fiat.



I’ll leave you with a final click-bait headline-maker: ‘The Fed owns Bitcoin on Its Balance Sheet.’ The Fed is the fourth-biggest owner of the SPDR Bloomberg Barclays High Yield Bond ETF (JNK) and that ETF holds MicroStrategy’s newly issued junk bond so technically, the Fed holds bitcoin on its balance sheet.



What an interesting time to be alive, don’t you think?

kevin kang

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