Crypto stream: Fidelity could make a retail crypto switch; White House Report Shows Concerns Over Bitcoin Mining

It’s been a volatile week so far in crypto (when isn’t it?) and the bulls and bears must have some really big calluses from their endless, exhausting tugging.

In terms of news-based machinations, however, on the one hand we have State Street and Fidelity pulling the hardest for Team Bulls. And on the other, a few officials from Negative Nellie White House and a bastard named Macro.

Before summarizing some of the most important headlines, let’s take a look at the main market sentiment indicator – the crypto Fear & Greed Index.

On the surface, the “fear” in the market would suggest that the bearish view is the winning lens. A closer look, however, and it suggests a bit more positivity has crept in over the past 24 hours.

On some of the most eye-catching recent news…

Bullish News

loyalty, the US$4.2 trillion global asset management company, has been working on the fringes of the crypto industry pool for some time. Dipping your toe here and there – for example in the US 401(k) retirement savings lane.

There have been rumors in the past about the investment giant possibly setting up a crypto-trading platform for its institutional clients, and those rumors seem to be picking up in volume.

According to a Bloomberg report, Galaxy Digital CEO Mike “Howlin’ Wolf” Novogratz believes Fidelity is working to offer crypto-trading services to its base of more than 34 million retail investors. So not just his special customers, the big cats, which seems inclusive.

Although Fidelity has not confirmed this decision, here is what Novogratz reportedly said at a conference in New York yesterday:

“A bird told me that Fidelity, a little bird in my ear, will soon transition its retail customers to crypto. I hope that bird is right. So we are still [on] this institutional march and which gives crypto its floor.

One thing, Novo might want to get that ear checked. It seems painful.

• State Streetanother big American investment management dog, spoke to The Sydney Morning Herald the other day and expressed his belief that institutional interest in crypto is growing and that “the asset class is here to stay.”

Irfan Ahmad, State Street Digital’s Asia-Pacific product manager, said the financial giant’s clients “were not really deterred from making strategic bets on the asset class.”

Ahmad noted that various investment titans that already offer crypto products are likely to make new moves in the space. In April, for example, Goldman Sachs launched a Bitcoin-backed loan and more recently BlackRock partnered with a private BTC trust.

• Conservative Party of Canada elected “Bitcoiner” Pierre Poilievre, an Ontario MP, to lead his party and challenge Prime Minister Justin Trudeau’s Liberal Party in the nation’s 2025 election.

In fact, is it bullish? It may depend on which side of the political fence you lean on. As decentralized and free from government control as a crypto can be, if Bitcoin could actually think, it would probably care less about this news, come to think of it.

• David Rubensteinthe founder of another ridiculously deep-pocketed US investment firm, Carlyle Group, is a former blockchain and crypto skeptic, but seems to have changed toneproving that not all old American billionaires are like the two antagonistic puppets of the film Stock exchanges.

(Or the two antagonistic Muppets Statler and Waldorf. Or also Warren Buffett and Charlie Munger.)

Rubenstein reportedly recently told CNBC’s Squawkbox the following:

“I haven’t bought cryptocurrencies, but I’ve bought companies that serve the industry because I think the genie is out of the bottle.”

He then added, “Some of the blockchain-related investments and things associated with crypto are likely to be with us for a while…Young people tend to have the smarts and the energy to kick things off. trends.”

•Fordone automotive company you may have heard of reportedly filed 19 trademark applications related to possible metaverse activities.

The apps take note of Ford-branded NFTs, its own NFT Marketplace, and virtual car models including Mustangs and the Ford Bronco.

Trusty US trademark attorney Mike Kondoudis has the tweet. In fact, he reported plenty of big brand metaversal moves throughout the year.

We could go on and on with the crypto-positive news we see on our Twitter and newsfeeds, but we better limit it there and see what the bears bring to the picnic…

Bearish News

The White House OSTP (Office for Science and Technology Policy) late last week released its highly anticipated 45-page report on the climate and energy implications of the crypto industry. And at first glance, this does not seem particularly positive.

In fact, many of the early headlines reported were quite alarmist, pointing to the OSTP’s recommendation that the US government might consider banning the use of the energy-efficient Proof-of-Work consensus mechanism. . The one Bitcoin and Bitcoin miners need to operate.

The report suggests that federal government action is needed to ensure the wide adoption and responsible development of digital assets.

“Cryptoassets could impede broader efforts to achieve net zero carbon pollution consistent with U.S. climate commitments and goals,” the OSTP wrote.

That said, based on a deeper dive into the report, which also indicated the potential for crypto mining to help capture vented methane, not everyone agrees with the idea. that the report is actually so negative…

Joe Carlassare, who co-chairs the Cryptocurrency, Blockchain and FinTech group at law firm SmithAmundsen, for example…

Exits in Ethereum-based investment products have been on the rise lately, according to industry fund manager CoinShares.

Its latest weekly report suggests that ETH bullion products made up the bulk of total outflows for the week of September 5-11. This is the fifth consecutive week of releases.

By the way, the exits in the context of the CoinShares report could be seen as bearish, indicating that investors are leaving a specific crypto (in this case Ethereum) and moving towards other assets.

This should therefore not be confused with the less specific idea of ​​crypto outflows leaving exchanges for hardware wallet storage, which would be something for the bullish list above.

Report author James Butterfill wrote that the outflows occurred “despite improved merger certainty…and perhaps highlights concern among investors that” the event does not go as planned”.

Cointelegraph headlined its article on the report like this: Merger jitters are driving an exit from Ether-based investment products.

• Hold on tight… some more bearish ahead…

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