Breaking News: Hawaii Crypto, VanEck Solana ETF, Mantra Tokenizes Real Estate

July 5, 2024

Crypto World

Maciej Zerelik

Stay in the loop with the latest crypto news from StealthEX and CryptoDaily. This week, we have the most exciting updates from the world of cryptocurrencies. Wondering what’s currently trending? Our digest offers fresh insights and the most recent developments. Don’t miss out on staying informed and ahead of the curve!

Crypto Firms in Hawaii Exempt from State License

Crypto companies in Hawaii can now operate without a Money Transmitter License (MTL). This new rule starts on June 30, allowing these firms to function more freely within the state. The Hawaii Department of Commerce and Consumer Affairs (DCCA) made this announcement after completing the Digital Currency Innovation Lab (DCIL) project.

The DCIL, launched in 2020, explored digital currency activities and the necessary regulations for such firms. This pilot program allowed companies to operate without the state MTL, leading to the recent rule change. However, firms must still comply with federal licensing laws.

The DCCA emphasized that while the MTL requirement is lifted, companies must follow federal regulations set by agencies like FinCEN, SEC, and FINRA. This move aims to balance innovation with consumer protection.

Consumers are advised to remain cautious and informed when dealing with crypto firms. Banking Commissioner Iris Ikeda highlighted the importance of consumer awareness regarding digital currency risks.

Eleven companies, including Apex Crypto and Gemini, participated in the DCIL. Despite the program’s success, crypto lender BlockFi filed for bankruptcy during this period. The DCCA continues to focus on understanding digital currencies while ensuring consumer safety.

VanEck Seeks Approval for First Solana ETF in the US

VanEck, known for its pioneering role in the crypto ETF market, filed for a Solana ETF with the SEC. The application, submitted on Thursday, is for the “VanEck Solana Trust.” If approved, it would be the first spot Solana (SOL) ETF in the US.

Matthew Sigel, VanEck’s head of digital asset research, announced the news on June 27. He highlighted the high utility and economic benefits of Solana’s blockchain. The new fund, named VanEck Solana Trust, will not engage in staking activities for additional income.

Sigel explained that SOL, like Bitcoin and Ether, is used to pay transaction fees and for computational services on the blockchain. It can be traded on digital asset platforms or used in peer-to-peer transactions.

This application shows VanEck’s commitment to expanding its crypto investment products. The firm views SOL as a commodity, despite the SEC’s ongoing classification of similar assets as securities. The ETF will reflect Solana’s price performance by backing the Trust’s shares with SOL tokens. VanEck plans to list the ETF on the Cboe BZX Exchange.

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Mantra Partners with UAE Developer MAG to Tokenize $500M Real Estate Portfolio

Mantra has partnered with UAE real estate developer MAG to tokenize $500 million of its portfolio. This collaboration aims to enhance the value and accessibility of MAG’s real estate offerings.

According to Mantra’s announcement on July 3, MAG’s total real estate portfolio is valued at over $5 billion. The tokenization will begin with Keturah Reserve, a luxury residential development in Meydan, Dubai. Talal Moafaq Al Gaddah, CEO of MAG Lifestyle Development, emphasized the importance of this strategic collaboration in leveraging blockchain technology.

Mantra, a layer-1 protocol, specializes in real-world asset tokenization and complies with regulatory requirements. The project describes its blockchain as a “permissionless chain for permissioned applications.”

The tokens resulting from this collaboration will be released in tranches. Investors can expect an approximate 8% annual percentage yield from stablecoins alone, with additional earnings in OM tokens. The initial investment vault will be over-collateralized by a $75 million mansion at the Ritz-Carlton Residences in Dubai, backed by MAG’s corporate credit.

John Patrick Mullin, founder and CEO of Mantra, stated that this partnership marks a significant milestone in bridging blockchain with tangible assets. He highlighted the venture’s potential to set new standards in real estate tokenization, providing global investors access to premium real estate assets in the UAE.

Andrew Kang Downplays Impact of Spot Ethereum ETF

Billionaire crypto entrepreneur Andrew Kang believes the launch of a Spot Ethereum ETF will have minimal impact on Ethereum’s price. He expressed this view on X, stating that the potential benefits are already priced in.

VanEck’s recent 8-A filing for their Spot Ethereum ETF has sparked excitement in the crypto market. The launch is expected soon, as a similar filing for their Spot Bitcoin ETF was followed by its launch within a week. Investors are optimistic, hoping the Ethereum ETF will mirror Bitcoin ETF’s success and drive up Ethereum’s price.

However, Andrew Kang, Managing Partner at Mechanism Capital, offers a different perspective. He argues that Ethereum’s price will not see significant gains unless it finds a way to improve its economics. In his analysis of the Spot Bitcoin ETF, Kang notes that despite $14.5 billion in net inflows, not all were true inflows. He attributes $4.5 billion to carry trades and $5 billion to conversions of Spot Bitcoin into the ETFs, leaving the true inflow closer to $5 billion.

Kang cites an estimate by Eric Balchunas that the Ethereum ETF could attract 10% of Bitcoin ETF’s inflows, around $0.5 billion. Kang’s own estimate is slightly higher at $0.84 billion. He also challenges the notion that the Bitcoin ETF alone drove Bitcoin’s price from $40,000 to $65,000, attributing the surge to other buyers in the spot markets. He estimates this year’s demand flow for Bitcoin to be between $40 billion and $130+ billion.

Kang’s cautious outlook suggests that while the Ethereum ETF launch is highly anticipated, its actual impact on Ethereum’s price may be limited.

Standard Chartered Predicts Bitcoin to Hit $100,000 by November

Geoffrey Kendrick, head of forex and digital assets research at Standard Chartered, predicts Bitcoin’s price will reach a new high by August and surge to $100,000 by the U.S. presidential election. This optimistic forecast is based on market conditions and political factors.

Bitcoin’s current all-time high of over $73,000 was achieved in March 2024, following the approval of Spot Bitcoin ETFs in January. Standard Chartered identifies the upcoming U.S. presidential race as a potential catalyst for further price increases. Kendrick emphasizes the impact of the political landscape on Bitcoin’s performance, particularly the candidates involved.

The $100,000 prediction assumes President Joe Biden will remain in the presidential race, which is seen as beneficial to Donald Trump’s chances. Trump is viewed as “bitcoin-positive,” and his potential administration is expected to create favorable conditions for Bitcoin regulation and mining.

Kendrick also considers a scenario where Biden withdraws from the race in late July, which could lower Bitcoin prices to $50,000-$55,000. If replaced by a credible Democratic candidate like Michelle Obama, Bitcoin prices might remain subdued. Conversely, Biden’s continued candidacy represents a strong buying opportunity for Bitcoin.

The critical date for determining Biden’s participation is August 4, the deadline for presidential candidates to register in Ohio. If Biden remains the Democratic nominee on this date, he is likely to continue his candidacy until the November election.

This article is not supposed to provide financial advice. Digital assets are risky. Be sure to do your own research and consult your financial advisor before investing.