Invesco announcing partnership with crypto enthusiast’s institution
Invesco Ltd., one of the largest ETF issuers in the United States, has announced partnering with Michael Novogratz’s Galaxy Digital Holdings merchant banking institution that works in the digital assets and blockchain industry.
The fourth-largest ETF issuer stated that the company will be developing a partnership with Novogratz’s Galaxy Digital Holdings to create U.S.-listed physically backed digital assets funds.
The venture will be used by Invesco to create market-leading crypto ETFs which have not yet received a regulatory pass and review from the SEC. Invesco has already filed an application to launch a digital assets fund, which already garnered major demand from both retail and institutional investors.
The cryptocurrency industry is yet to receive significant funding from products like ETFs and has good potential for growth, said the company’s ETF business lead, John Hoffman. He also stated that the company spent years looking at the development of the blockchain industry. He compared crypto with the early days of ETF development back in the late 1990s, and they are excited to focus on the cryptocurrency market.
The Securities and Exchange Commission has been cautious about the cryptocurrency industry and the ETFs tied to it. But at the same time, the regulator’s leader, Gary Gensler, has signaled that the SEC is open to a discussion about ETFs based on crypto futures. Companies like Invesco and ProShare have already filed applications for related funds.
The company is aiming at allowing customers to invest in digital assets as a technology and not as a speculative tool. Hoffman thinks that the crypto ETF market will follow the steps of commodity-tracking funds since they have numerous similarities between them.
Facebook Begins Piloting Its Crypto Wallet in U.S.
Facebook has finally started rolling out its digital wallet
Social media giant Facebook has started rolling out its Novi digital wallet in the U.S. and Guatemala, according to an announcement posted by the company’s blockchain exec, David Marcus, on Twitter.
The purpose of the pilot is to test the wallet’s key features in the wild.
While stablecoins are typically used by traders for parking their gains, Marcus hopes that the trial will be able to showcase a new use case:
We’re also hopeful this will demonstrate a new stablecoin use case (as a payments instrument) beyond how they are typically used today.
Notably, Facebook will be trialing its wallet with Paxos’ Pax Dollar as a cloud of regulatory uncertainly continues to hang over its own stablecoin project.
Coinbase’s custodial arm will be responsible for safeguarding users’ funds.
Initially named “Libra,” the project ditched its controversial structure along with the moniker after stumbling upon regulatory roadblocks in 2019, and it was reintroduced as Diem in April 2020.
Marcus announced that the Novi crypto wallet, which was initially named “Calibra,” was ready to come to market in August.
UK investors have lost $200M in cryptocurrency scams since 2021
- Investors in the UK have lost over $200 million in cryptocurrency scams since this year.
- About 558 of the fraud reports were related to fake celebrity endorsements.
Cybercriminals are still capitalizing on the growing attention and popularity of digital currency to siphon money from unsuspecting investors. Recently, the fraud and cyber reporting center of the United Kingdom (UK), Action Fraud, disclosed that the residents have lost over $200 million (or £146,222,332) in cryptocurrency scams since the beginning of the year.
Cryptocurrency scams up 30% in UK
The losses so far already represent a 30 percent increase from the record last year. The Action Fraud said investors have filed 7,118 reports of cryptocurrency scams since January, most of which were from people below the age of 50 years, losing over $28,000 (£20,500) on average. The majority of the victims (52%) were aged between 18 and 45.
“Reports of cryptocurrency fraud have increased significantly over the past few years, which is unsurprising given everyone is spending more time online,” said Temporary Detective Chief Inspector Craig Mullish from the City of London Police. “Being online more means criminals have a greater opportunity to approach unsuspecting victims with fraudulent investment opportunities.”
Fake celebrity endorsements
The Action Fraud noted that some of the cryptocurrency scam reports they received were connected to fake celebrity endorsements. We have reported several cases where cybercriminals impersonate well-known figures or use fake testimonies to deceive people into investing in their projects.
Between April 2020 and March 2021, about 558 UK investors filed fraud reports involving “bogus celebrity endorsements,” and 79% of all the inventors who fell for these scams said it was crypto-related.
As recently as October 15, Cryptopolitan reported that scammers made away with about $1.4 million from Tinder users who were tricked into a fake Bitcoin dating app.
Here’s Why Billionaire Real Estate Mogul Barry Sternlicht Owns Two Different Crypto Assets
Billionaire and real estate magnate Barry Sternlicht says that he owns Bitcoin (BTC) and Ethereum (ETH) for a number of reasons.
In a new interview with CNBC’s Squawk Box, the chief executive of Starwood Capital says that he’s invested in crypto due to his concerns regarding endless money printing and what he sees as questionable monetary policies.
“The reason I own BTC is because the US government and every government in the Western hemisphere is printing money now until the end of time, And this is a finite amount of something, and it can be traded globally and people have fiat currencies whether it’s in Nigeria or… Bolivia or wherever, you can move into something that the world has accepted as a substitute for gold.”
Referencing JPMorgan CEO Jamie Dimon who said he thinks Bitcoin is “worthless”, Sternlicht argues that the same case could be made for gold.
“What Jamie Dimon talked about, I mean gold is kind of worthless too, silver [as well], they have some industrial uses, but they’re minor.”
The billionaire says that while Bitcoin is minimal in its purposes, he sees high potential in Ethereum’s ecosystem, plus all of blockchain technology in general.
“Since it’s 18 million float of 21, I think Bitcoin… It’s the biggest. It’s a dumb coin, it has no real purpose other than a store of value, and it’s a little crazily volatile. So Ether, which is right below it, I own some of that. That’s a programmable Bitcoin, and then there are tons of other coins that are built off of that system… I’ve become very interested in blockchain technology as a whole, the digital ledger is going to change everything…”
"Gold is kind of worthless," says Barry Sternlicht. "The reason I own #bitcoin is because the U.S. government and every government in western hemisphere is printing money now to the end of time and this is a finite amount of something and it can be traded globally." pic.twitter.com/72zYQTjF0y— Squawk Box (@SquawkCNBC) October 13, 2021