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News/El Salvador, Rumble, and ETFs: What Drive Crypto Adoption This Week

El Salvador, Rumble, and ETFs: What Drive Crypto Adoption This Week

Van Thanh Le

Jan 20 2025

4 weeks ago3 minutes read
El Salvador robot holds Bitcoin atop a glowing volcano

MicroStrategy Buys 11,000 BTC, Boosts Holdings to 461K

MicroStrategy disclosed significant updates about its Bitcoin strategy. The company purchased 11,000 BTC for $1.1 billion at an average price of $101,191 per Bitcoin, raising its total holdings to 461,000 BTC valued at $48 billion. These acquisitions were funded by selling 3 million shares, generating $1.1 billion, with $5.4 billion in shares still available under its sales agreement. 

MicroStrategy aims to raise $42 billion for Bitcoin acquisitions under its “21/21” plan, having achieved 50% of this goal. Shareholders approved amendments on January 21 to increase authorized Class A common stock to 10.3 billion and preferred stock to 1 billion to facilitate further purchases. Despite the moves, MicroStrategy’s stock (MSTR) fell by 4.5%, while Bitcoin prices declined by 3% on the same day.

KULR Increases Bitcoin Holdings to $50 Million with $8 Million Investment

KULR Technology Group, Inc. has expanded its Bitcoin Treasury by investing an additional $8 million, bringing its total Bitcoin holdings to $50 million, equivalent to 510 BTC. The company acquired these bitcoins at an average price of $101,695 each, including fees and expenses. This strategic investment aligns with KULR's Bitcoin Treasury Strategy, announced on December 4, 2024, which commits up to 90% of its surplus cash reserves to Bitcoin. 

For the year to date, KULR has reported a remarkable Bitcoin Yield of 127%, achieved through a combination of surplus cash and its At-The-Market (ATM) equity program. The company's Bitcoin Yield serves as a key performance indicator (KPI), calculated as the percentage change in the ratio of Bitcoin holdings to the assumed fully diluted shares outstanding. 

REX Shares Files for First U.S. Meme Coin ETFs Following SEC Leadership Change

Osprey Funds and Rex Shares have submitted a registration statement to the U.S. Securities and Exchange Commission (SEC) for seven new exchange-traded funds (ETFs), including proposals for an Ethereum ETF, Bitcoin ETF, XRP ETF, and a TRUMP memecoin ETF, following President Donald Trump’s inauguration. The firms believe the Trump administration will be more supportive of digital assets, especially after Trump appointed crypto-friendly Paul Atkins to lead the SEC. 

The registration, filed under the Investment Company Act of 1940, aims to combine various derivatives and asset holdings to avoid K-1 issues, mirroring strategies in commodity ETFs. Analyst James Seyffart noted these proposals appear to push boundaries under the new SEC leadership, making the handling of controversial assets like memecoins particularly intriguing. As of now, the funds’ unique structure and the SEC's response to them remain to be seen, with significant industry expectations surrounding them.

Finland Launches First Crypto ETPs on Nasdaq Helsinki with Virtune

Virtune has launched Finland's first crypto exchange-traded products (ETPs) on Nasdaq Helsinki, marking a significant advancement in the country's financial landscape. This rollout introduces five euro-denominated ETPs, including the Virtune Bitcoin, Staked Ethereum, XRP, Staked Solana, and Crypto Altcoin Index ETPs, allowing Finnish investors secure, regulated access to cryptocurrency investments within an established framework. Notably, this launch signifies the largest simultaneous crypto ETP introduction in the Nordic region, establishing Finland's €20.5 billion ETP market for crypto assets. 

The products are fully collateralized and backed with support from market maker Flow Traders, ensuring liquidity and investor confidence. Virtune's CEO Christopher Kock emphasized its role in meeting the growing demand for secure crypto exposure, while Nasdaq Helsinki's Henrik Husman highlighted the importance of this launch within a transparent regulatory environment, positioning Finland as a progressive player in the evolving global financial ecosystem.

El Salvador Adds 11 Bitcoin to Reserves Despite IMF Pressure to Scale Back Adoption

El Salvador boosted its Strategic Bitcoin Reserve by adding 11 Bitcoin, valued at over $1 million, despite pledging to scale back its BTC adoption in exchange for a $1.4 billion loan from the International Monetary Fund (IMF) announced in December 2024. This new acquisition follows the government's commitment to amend its controversial Bitcoin law, which mandates businesses to accept Bitcoin, as part of the loan negotiations. 

The IMF has repeatedly warned El Salvador about the potential macroeconomic and financial risks associated with Bitcoin adoption since it became legal tender in September 2021. Although the IMF acknowledged in August 2024 that many of the risks had not yet materialized, it urged the country to enhance transparency and limit public sector involvement in Bitcoin activities. These discussions reflect ongoing tensions between El Salvador's cryptocurrency policies and the IMF's financial oversight and recommendations.

Rumble Makes Historic First Bitcoin Purchase, Plans $20 Million Investment

Rumble, the Tether-backed video platform, announced its first-ever Bitcoin purchase, marking a significant move into the cryptocurrency market. CEO Chris Pavlovski revealed this milestone via a tweet, emphasizing that this acquisition would not be the last, thereby hinting at further investments in Bitcoin. Rumble has committed to a broader financial strategy that includes investing up to $20 million in Bitcoin, showcasing its intent to diversify assets and embrace cryptocurrency as an essential component of its financial ecosystem. 

This decision reflects a growing trend of institutional interest in digital assets, positioning Rumble as an innovative player in the tech and financial sectors. With Tether’s strong backing, the platform aims to set a precedent for integrating cryptocurrencies into mainstream financial operations, demonstrating confidence in Bitcoin as a store of value and hedge against inflation.

Financial Giants Rush to File Crypto ETFs Ahead of SEC Chair Gensler's Departure

Several financial giants are swiftly filing for cryptocurrency-related exchange-traded funds (ETFs) in anticipation of Gary Gensler's departure as chair of the U.S. Securities and Exchange Commission (SEC) on January 20, 2025. This surge includes proposals from notable firms like Tidal Financial Group, ProShares, CoinShares, and VanEck. Tidal is introducing the Oasis Capital Digital Asset Debt Strategy ETF, which aims to invest in crypto-related debt securities. 

In parallel, ProShares has filed for a Solana Futures ETF and multiple XRP-focused ETFs, while CoinShares offers the CoinShares Digital Assets ETF linked to its Compass Crypto Market Index. VanEck's "Onchain Economy ETF" will concentrate on digital asset instruments rather than direct investments in cryptocurrencies. Gensler's tenure has been marked by significant regulatory actions against prominent crypto companies, including Coinbase and Ripple Labs, which underscores the anticipated shift in regulatory dynamics with his exit.

Morgan Stanley CEO Announces Crypto Expansion Plans Amid Evolving Regulatory Landscape

Morgan Stanley is poised to expand its crypto market presence under the pro-crypto Trump administration, as CEO Ted Pick announced a collaboration with U.S. regulators at the World Economic Forum in Davos. The bank aims to explore opportunities to engage safely with crypto assets, seeking to act as transactors within a newly accommodating regulatory landscape. This shift comes alongside recent efforts by the SEC to establish a framework for digital assets, facilitating banks' activities beyond mere derivatives. 

Historically, Morgan Stanley has led the market by offering Bitcoin funds to wealth management clients since 2021 and allowing advisors to market Bitcoin ETFs in 2024. Pick emphasized the growing durability of Bitcoin, suggesting that its increasing legitimacy in the market is gaining momentum. The overall sentiment from the banking sector is optimistic, with clear regulations expected to significantly boost engagement with cryptocurrency assets.

Semler Scientific Aims to Raise $75M for Bitcoin Purchases Amid $29M Paper Gain

Semler Scientific plans to raise $75 million through a private offering of convertible senior notes, aiming to fund further Bitcoin acquisitions. The company reported an unrealized gain of $28.9 million from its Bitcoin investments and currently holds 2,321 BTC, valued at approximately $241 million based on recent trading prices around $105,000. This follows the purchase of 237 BTC on January 13. 

Semler’s CEO, Doug Murphy-Chutorian, expressed enthusiasm for the company's Bitcoin treasury strategy, which is part of a growing trend among public firms. Despite a 30% increase in shares after its initial Bitcoin purchase in May, Semler's stock declined by 1.55% on January 23 and fell over 12% in after-hours trading, closing at $53.75. Overall, Semler Scientific's Bitcoin holdings rank 13th among public companies, reflecting its significant position in the market, while other firms, such as MicroStrategy, lead in total holdings.

Goldman Sachs CEO Dismisses Bitcoin as a Threat to US Dollar

Goldman Sachs CEO David Solomon has downplayed Bitcoin's ability to undermine the US dollar, calling it "an interesting speculative asset" rather than a threat. In an interview with CNBC, he emphasized his belief in the significance of the US dollar. Solomon indicated that while Goldman Sachs is actively engaging with blockchain technology to improve financial systems, regulatory constraints currently prevent the bank from directly participating in Bitcoin ownership or trading. 

He mentioned that their involvement in Bitcoin and Ethereum spot trading is limited due to these regulations. However, he noted that Goldman Sachs holds $461 million in BlackRock’s iShares Bitcoin Trust and has investments in various crypto-related funds including those managed by Fidelity, Grayscale, and WisdomTree. Solomon's comments come amid speculation about potential changes in the crypto landscape with a possible revisit to regulations under the Trump administration.

CME Group Plans XRP and Solana Futures ETFs Launch by February 10

CME Group is hinting at a potential launch for XRP and Solana futures ETFs on February 10, pending regulatory approval, as indicated by updates on its beta website. This development comes amid a surge in interest for crypto ETFs, with major players like Grayscale and BlackRock competing for Solana ETF approvals. As of now, Solana’s price is $249.54, down 2.58% in the last 24 hours, with a market cap of $121.39 billion and $9.05 billion in trading volume. 

XRP's price stands at $3.14, reflecting a 0.95% intraday decline, with a market cap of $180.62 billion and $8.39 billion in trading volume. Network stability issues for Solana and the competitive landscape for XRP highlight the challenges these cryptocurrencies face in attracting investor interest and securing regulatory backing, despite optimistic long-term forecasts for both assets' market positions.

Bitwise Files for First Dogecoin ETF Amid Market Reactions and Price Predictions

Bitwise Asset Management has made a historic move by filing for the first Dogecoin-focused exchange-traded fund (ETF), confirmed by Chief Investment Officer Matt Hougan on January 23. This filing signifies Dogecoin's transformation from a meme to a legitimate asset, currently the seventh-largest cryptocurrency with a market cap of $51.73 billion. At the time of the filing, Dogecoin was trading at $0.3501, reflecting a 3.55% intraday drop, and a 6.28% decline over the past week. 

Analysts predict potential price surges, estimating DOGE could reach $15 if the ETF is approved; short-term forecasts suggest a rebound to $0.4400 or a downturn below $0.3000 could trigger further selling. Moreover, this filing aligns with broader institutional interests as other major firms consider XRP and Solana ETFs, indicating a possible wave of adoption and investment in cryptocurrencies like Dogecoin amidst evolving regulatory clarity.

This article has been refined and enhanced by ChatGPT.

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