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Another Week of Institutional Accumulation: CoinShares Sees $42 Million Weekly Crypto Inflows

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Institutional investors have kept accumulating cryptocurrencies for five weeks in a row now, according to CoinShares’ latest report.

One of the most popular digital asset managers, CoinShares, continues to see institutional inflows for a 5th week in a row now.

  • In its latest Digital Asset Fund Flows Weekly Report, CoinShares revealed that it ended the previous week on a positive note in terms of inflows.
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Source: CoinShares

Digital asset investment products saw inflows totaling $42M last week. Inflows were seen across all digital assets and signals what we believe to be continued improving sentiment amongst investors.

  • It’s also worth noting that Bitcoin saw inflows of about $15 million and has suffered from negative investor sentiment in only 3 of the last 16 weeks.
  • Another thing that the report touched on is Solana. As CryptoPotato reported, the network suffered from an outage and was off for hours.
  • Despite this, Solana saw inflows of some $4.8 million, which “suggests investors were happy to shrug off the attack, seeing it as teething problems rather than something more inherent with the network.”
  • Nevertheless, this report accounts for the data up until September 17th. In the past couple of days, the cryptocurrency market lost billions of its capitalization in a broader collapse.
  • This saw Bitcoin tank to about $40,000 earlier today, while other cryptocurrencies are also bleeding out.
  • WIth this said, it’s interesting to see how institutional investors are handling the current situation.

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Crypto Exchanges Facing “Digital Tax” Blow in U.K.

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Cryptocurrencies are neither currencies nor commodities, according to Her Majesty’s Revenue and Customs

Cryptocurrency exchanges have to pay a 2% digital services tax in the U.K., according to a Sunday report by The Daily Telegraph.

They do not qualify for an exemption granted to financial marketplaces since the Her Majesty’s Revenue and Customs office doesn’t recognize cryptocurrencies as “financial instruments.”

The tax on the local revenues of large tech companies was introduced in April 2020.

CryptoUK, a crypto lobbying group, is not happy about the lack of the exemption since it would further stifle the industry.

The U.K. arm of the Coinbase exchange is expected to easily surpass the revenue threshold of £25 million ($33 million) due to the crypto trading boom in 2021.

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However, HMRC is adamant that crypto assets cannot be classified as either commodities or currencies.  

In October, European governments forged a deal with the U.S. to establish a new global tax regime to eschew America’s retaliatory tariffs.

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Bitpanda New Partner Lydia’s 5.5M Users Will be Able to Invest in Crypto

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Major French mobile financial services app Lydia is slated to offer its 5.5m users exposure to a wide range of crypto assets after a partnership with the Austrian crypto exchange Bitpanda.

As part of the deal, Lydia will integrate Bitpanda’s digital asset investment product, dubbed ‘White Label Solution,’ to allow its customers to invest 24/7 in more than 100 digital assets, including cryptocurrencies, fractional stocks, exchange-traded funds (ETF), and precious metals.

Founded in 2013, Lydia is a daily financial “super-app” said to be used by a third of the French 18 to 35 year olds. The app has raised a total of USD 131m in two funding rounds in 2020, though it did not disclose valuation.

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“With Lydia trading, our ambition is to widen access to investment assets, to make it accessible to everyone whether they are simply curious, beginner investors or experts,” said Cyril Chiche, the app’s CEO and co-founder.

“Our goal is to reimagine what it means to invest, by making simple, easy-to-use financial products for everyone,” Eric Demuth, Bitpanda co-founder and CEO, was quoted saying.

Bitpanda raised USD 170m earlier this year in a Series B funding round and earned a valuation of USD 1.2bn, becoming Austria’s first tech unicorn. In its Series C funding round, however, the exchange raised USD 263m, earning a valuation of USD 4.1bn.

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Meanwhile, the exchange has been aggressively expanding its presence across Europe. Just recently, Bitpanda unveiled a partnership with Fabrick, an Italian open finance provider, that will offer digital asset trading services to Italian banks and fintechs. 

The exchange has also hired former JPMorgan executive Joshua Barraclough as CEO of its advanced trading platform Bitpanda Pro.

“We are confident that this is just the beginning: we are committed to offering everyone investment options for any budget and risk appetite,” Demuth added.

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Gemini looks to secure $400M in funding, set to battle Facebook on Metaverse

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  • The recent funding round will nearly double the wealth of Gemini founders aka the Winklevoss twins.
  • The two brothers also have big plans for Metaverse development putting up a head-on competition with Facebook.

In its latest funding round, cryptocurrency exchange Gemini has announced a $400 million fundraise at a valuation of $7 billion. Founders of Gemini, the Winklevoss twins will retain 75 percent ownership of the company post this investment.

As per reports, their combined net wealth will nearly double from $6 billion in April to $10.5 billion as of date. The latest funding round will be led by capital management giant Morgan Creek Digital. It also includes participation from ParaFi Capital, a decentralized finance (DeFi) venture firm.

Gemini joins the list of several other crypto companies raising funds amid the booming market condition. Some of its biggest rivals like Coinbase Global and ConsenSys Inc have also been taking advantage of these favorable market conditions.

In terms of the capital raise New York-based Morgan Creek has contributed $75 million. As a result, its general partner Sachin Jaitly became the third member of Gemini’s board of directors. As reported by Bloomberg, no plans are final at this stage and the terms of the deal can still change.

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Metaverse becomes the new battleground for Gemini

It seems that Winklevoss twins are all set to battle their old rival aka Facebook’s Mark Zuckerberg over the newly brewing Metaverse revolution. Speaking to Forbes regarding this, Gemini co-founder Cameron Winklevoss said:

There’s these two parallel paths, in terms of technology right now. There’s a centralized path, like Facebook or Fortnight, that is one step away from being a metaverse, and that’s totally fine.

But there is another path, which is the decentralized metaverse and that’s the metaverse where we believe there’s greater choice, independence and opportunity, and there is technology that protects the rights and dignity of individuals.

It looks like the twins are all set to take the battle with Facebook head-on over the development of Metaverse. The Gemini co-founders had already put the building blocks for metaverse back in 2019. The two brothers bought NFT exchange Nifty Gateway that helps in picking up unique digital assets.

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The Nifty Gateway platform adopts a similar path to that of Gemini. The platform is completely decentralized allowing NFT creators to host their work. “Decentralization is a spectrum,” says Cameron. “We want to continue to move down the spectrum towards empowerment. But you have to start somewhere.”

Interestingly, the Gemini co-founders have also made personal investments in the Metaverse through the Winklevoss Capital. The twins have taken a stake in the early version of the metaverse dubbed The Sandbox (SAND), built by Animoca Brands.

As part of The Sandbox deal, the two brothers have also bought a plot of virtual land. They will soon build the first of many virtual locations. Gemini co-founder Tyler Winklevoss said:

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Instead of building brick and mortar bank branches in meatspace. We’re gonna build a Gemini experience in different metaverses, where you can go into Gemini, and trade but it would be immersive instead of on your phone.

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