StealthEX & CryptoDaily: El Salvador’s Bitcoin Bet, ETF Moves, and Global Market Trends

March 1, 2024

Crypto World

Maciej Zerelik

Discover the latest news from StealthEX and CryptoDaily! We’re excited to present a clear and concise summary of the top stories and movements in the crypto market. Keep up with important developments and influential figures. Curious about the top news in the cryptocurrency sphere this week? Get into the specifics right away!

El Salvador’s Bold Bitcoin Strategy: A Long-Term Vision

El Salvador, under President Nayib Bukele’s leadership, is making headlines with its unwavering commitment to Bitcoin. The nation’s Bitcoin reserves have soared past $60 million, thanks to the cryptocurrency’s recent price surge. Yet, President Bukele has made it clear: El Salvador is not cashing out anytime soon.

In a world where Bitcoin’s volatility often leads to quick profits, El Salvador’s strategy stands out. The country began its Bitcoin journey in 2021, becoming the first to accept it as legal tender. Despite skepticism and the crypto industry’s ups and downs, El Salvador has accumulated over 2800 BTCs. This bold move has paid off, with the country’s Bitcoin investment now showing a potential profit of almost $41.6 million, a 40% return on investment.

The recent increase in Bitcoin’s price, partly due to the launch of several spot Bitcoin ETFs, has placed El Salvador in an enviable position. With Bitcoin’s value exceeding $60,000, the nation enjoys a significant unrealized profit margin. Each Bitcoin was acquired at an average cost of $42,440, highlighting the strategic foresight of El Salvador’s government.

El Salvador’s approach mirrors that of MicroStrategy, a company that has also heavily invested in Bitcoin. Both entities share a long-term vision, choosing to hold onto their Bitcoin reserves despite the tempting profits. This strategy reflects a deep belief in Bitcoin’s future potential and a disregard for short-term gains.

Governments Eye Bitcoin as the New Gold, Reveals Edward Snowden

Edward Snowden, the whistleblower known for the Prism Gate scandal, has recently made a groundbreaking claim. He suggests that a national government has been quietly accumulating Bitcoin, treating it as a modern alternative to traditional gold reserves. This revelation comes at a time when Bitcoin is gaining traction among retail investors, institutions, and now, potentially, sovereign governments.

Snowden’s prediction, shared on the social media platform X, hints at a significant shift in how countries might manage their wealth. The move towards Bitcoin by a national government, which remains unnamed, underscores the cryptocurrency’s growing acceptance and legitimacy. Snowden anticipates that this year, the government’s Bitcoin purchases will come to light, marking a pivotal moment in Bitcoin’s history.

This development is particularly noteworthy against the backdrop of increasing interest in cryptocurrencies, spurred further by the United States Securities and Exchange Commission’s approval of spot Bitcoin ETFs. Governments and major institutions worldwide are exploring the potential of cryptocurrencies and blockchain technology, signaling a potential shift from gold to Bitcoin as a reserve asset.

El Salvador’s example, as the first country to adopt Bitcoin as legal tender, illustrates the potential benefits of such a strategy. The nation has seen its Bitcoin investments increase in value, attracting tourists and investments. Snowden’s comments suggest that other governments might follow suit, drawn by the allure of Bitcoin as a secure and profitable reserve asset.

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Morgan Stanley Eyes Spot Bitcoin ETF, Signaling Crypto’s Mainstream Shift

Morgan Stanley, a titan in asset management with $1.3 trillion under its belt, is reportedly considering a groundbreaking move into the cryptocurrency space. The firm is exploring the possibility of offering a spot Bitcoin ETF to its clients. This development follows the green light from the United States Securities and Exchange Commission for spot Bitcoin ETFs in January, marking a significant milestone in the acceptance and integration of cryptocurrencies into traditional financial services.

The introduction of spot Bitcoin ETFs by broker-dealers like Morgan Stanley could usher in a new era of investment, attracting more funds into the cryptocurrency market. Currently, ten spot Bitcoin ETFs are trading in the U.S., including notable names like Grayscale’s GBTC, BlackRock’s IBIT, and Fidelity’s FBTC. Morgan Stanley’s entry into this space could significantly broaden the investor base for Bitcoin, enhancing its legitimacy and appeal.

The firm is conducting due diligence to ensure the smooth introduction of these ETFs to its clientele. The success of spot Bitcoin ETFs has been undeniable, with the IBTI Bitcoin ETF breaking daily trading volume records consecutively. The approval of these ETFs has coincided with a surge in Bitcoin’s price, now trading just shy of the $63,000 mark, highlighting the growing investor interest and confidence in cryptocurrency as a legitimate asset class.

Furthermore, Morgan Stanley’s Europe Opportunity Fund is contemplating allocating a portion of its assets to spot Bitcoin ETFs, with a cap of 25%. This move signifies a strategic diversification of investment portfolios to include cryptocurrencies, reflecting the sector’s potential for growth and returns.

MicroStrategy Bolsters Bitcoin Holdings with Additional 3K BTC Purchase

MicroStrategy, led by the visionary Michael Saylor, has once again demonstrated its unwavering belief in Bitcoin. The company recently announced the acquisition of an additional 3,000 BTC, amounting to approximately $155 million. This strategic move has increased MicroStrategy’s total Bitcoin holdings to an impressive 193,000 BTC.

The purchase, conducted between February 15 and February 25, 2024, was executed at an average price of $51,813 per Bitcoin, as detailed in an SEC filing. This acquisition not only underscores MicroStrategy’s commitment to Bitcoin but also highlights the company’s long-term investment strategy in the cryptocurrency space.

MicroStrategy’s Bitcoin strategy is a testament to Michael Saylor’s belief in the digital currency as the ultimate asset, surpassing traditional investment options. The company has entrusted 98% of its Bitcoin holdings to Fidelity Custody, ensuring robust security through a dual custodial strategy that also involves Coinbase Prime.

The impact of the recently approved Bitcoin ETFs on MicroStrategy’s stock (MSTR) seems negligible to Saylor. Following the announcement of the latest Bitcoin purchase, MSTR stock saw a 1.71% increase. The company’s stock performance has been remarkable, with a 39% increase over the past month and a staggering 316% since the beginning of 2023. This success is partly attributed to the surge in Bitcoin’s value, highlighting the symbiotic relationship between MicroStrategy’s investment strategy and the cryptocurrency’s market performance.

Ethereum’s Dencun Upgrade: A Leap Towards Scalability

The Ethereum Foundation has announced a significant milestone in the blockchain’s journey towards greater scalability and efficiency. The Dencun network upgrade, a pivotal development in Ethereum’s roadmap, has been successfully activated across all testnets. This upgrade is set to go live on the mainnet on March 13, marking a crucial step forward for the Ethereum ecosystem.

Dencun introduces proto-danksharding to Ethereum, a feature that promises to enhance the blockchain’s capacity to handle transactions. By allowing rollups to add “blobs” of data on a beacon node, Dencun aims to significantly reduce the cost of transactions. These blobs, while temporarily stored, are not accessible to the Ethereum Virtual Machine (EVM) and are automatically deleted after one to three months. This mechanism ensures that rollups can transmit data more affordably, ultimately benefiting end-users with cheaper transaction fees.

The upgrade’s name, Dencun, is a blend of Deneb—a star—and Cancun, the location of Devcon 3, reflecting the Ethereum community’s tradition of creatively naming its upgrades. The activation of Dencun on the mainnet is scheduled for epoch 269568, at 13:55 UTC, or 8:55 am ET, on March 13.

For this upgrade to be smoothly integrated, stakers are required to update their beacon nodes and validator clients to ensure compatibility. As of February 22, all client teams, except Lodestar, have released their final software versions in preparation for the Dencun upgrade.

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.