Crypto weekly update
29. July 2021  • clock 3 min •  Daniel Mitrovsky

Number of investors owning bitcoin has more than tripled – Crypto weekly update

This week, the total market capitalization exceeded 1.30 trillion EUR. Increase at the 7-day interval is 16.1 %. Bitcoin increased by 24.6 % during the week to a current value of more than 33,700 EUR. Bitcoin dominance is 48,4 %.

Source: Coinmarketcap

Number of bitcoin investors is growing

The latest survey focused on cryptocurrencies and bitcoin has revealed very interesting results.

The study conducted by global analytics and advice firm Gallup revealed that the number of investors in the U.S. holding BTC has jumped from 2% in 2018, to 6% as of June 2021.

The research defines “investors” as adults with $10,000 or more invested in stocks, bonds, or mutual funds.

It also reported that Bitcoin ownership among investors surveyed aged under 50 has more than tripled over the past three years to 13% from 3% in 2018. Unsurprisingly, it revealed ownership was much lower at just 3% for the over 50s group of investors, though this has also increased three-fold from 1% in 2018.

The results of the poll come from the Gallup Investor Optimism Index survey conducted between June 22 and 29, 2021, among 1,037 investors in America aged 18 and older. The sample for the study was weighted to be demographically representative of the U.S. adult population with a maximum margin of sampling error of ±5%. Source

Tesla has not sold any bitcoins

Monday’s quarterly Tesla earnings report showed the company’s total revenue rose by 98 % year-on-year in the second quarter, up from $6 billion in 2020 to $11.9 billion in 2021.

However, financial analysts and cryptocurrency investors were particularly interested in the current state and profit from Tesla´s bitcoin position.

As Tesla holds its bitcoin as an intangible asset, accounting rules mandate that the firm must report an impairment loss when the asset’s price drops below its cost basis. However, Tesla is not required to report price appreciations in the underlying asset until the position is realized through a sale.

The report also shows that Tesla didn’t buy or sell any digital assets in Q2. As such, Tesla’s sole crypto purchase remains its $1.5 billion BTC buy in Q1, with the firm having also cashed out $272 million during the same quarter.

Tesla had to report a quarterly loss due to the bitcoin price drop. Tesla reported an impairment loss of $23 million. However, this amount is significantly lower than expected, because several companies estimated a loss of up to $100 million.

Speaking at the virtual conference “The ₿ Word” on Thursday, Tesla CEO Elon Musk quashed rumors that the firm may sell its holdings in the near future, also teasing that it may resume accepting BTC payments for its electric vehicles. Source

Amazon denies rumored plans for Bitcoin acceptance

In recent days, there has been massive speculation on media and social networks about Amazon’s alleged plan to accept bitcoin and other cryptocurrencies as a payment method.

On Tuesday, Amazon refuted speculation it may be readying to support Bitcoin and other cryptocurrencies. However, according to a published report from Reuters, Amazon remains interested in the crypto industry but has no specific plans to onboard digital assets for payments just yet.

On the other hand, the spokesperson for the company also said that Amazon is continuing to investigate cryptocurrencies as well as research into how cryptocurrencies could affect customers on Amazon.

On Thursday, Amazon posted a job opening for a digital currency and blockchain product lead. Source

Goldman Sachs files for DeFi ETF

Investment banking giant Goldman Sachs has applied for a crypto-related ETF with the U.S. Securities and Exchange Commission.

The proposed ETF fund called „The Goldman Sachs Innovate Defi and Blockchain Equity ETF“ would be linked to stocks of public crypto-related companies rather than crypto assets, it may have a slightly higher chance of getting approved by the SEC.

While it remains unclear what specific companies Goldman plans including in their “Innovative DeFi and Blockchain Equity ETF,” according to the filing the bank seeks to invest 80% of the fund’s assets into companies that are aligned with two key themes : the implementation of blockchain technology and the digitalization of finance.

Goldman has been one of many leading investment banks to take a bullish stance on crypto in recent months. Source

Kazakhstan will allow banks to process cryptocurrency purchases

The government in Kazakhstan will reportedly allow local banking institutions to offer cryptocurrency exposure to their clients. The pilot project will run for one year and then the government will decide whether to extend it.

Numerous institutions will soon be granted permission to provide businesses and firms with cryptocurrency exposure. In particular, the government expects from this project to assess the risks and benefits of virtual currencies.

As Kazakhstan becomes a mining hub and many residents are already quite actively trading various crypto assets, this step is another significant shift in the further cryptocurrency adoption for the country.

Following the mining restrictions in China, many mining companies decided to move their business to Kazakhstan, mainly due to cheap electricity and a government system that has a positive attitude towards cryptocurrencies. Source

More than 81 countries is already exploring CBDC

Research related to the understanding and review of central bank digital currencies (CBDCs) is currently underway in more than 81 countries, which together representing more than 90% of global GDP.

CBDC is currently used in five countries from the Caribbean region, with the Bahamas, St Kitts and Nevis, Antigua and Barbuda, St Lucia and Grenada already actively implementing central bank digital currencies into their payment systems.
CBDCs are in their pilot stage in 14 other countries, including South Korea and Sweden.

The Atlantic Council, which was established back in 1961, is currently monitoring a total of 83 countries that have expressed interest in CBDC and are exploring possible ways to use it.

Among the countries with the four largest central banks, the US is currently furthest behind in terms of CBDC development. The U.S. Federal Reserve has been researching CBDCs for several years now, with Chairman Jerome Powell indicating in January that digital dollar development is a “very high priority” to combat financial crime. Source

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Daniel Mitrovsky


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