Cryptocurrency

Jack Bogle’s ghost haunts Vanguard’s crypto plans

19 Jan 2024

The asset manager’s rival BlackRock is plunging into digital currency with a bitcoin ETF that brought in over $1 bln in a week. That strategy, divergent from Vanguard, highlights the desperation to differentiate. Bogle’s former firm’s decision to shun crypto may leave it behind.

Bitcoin ETFs only entrench one frivolous use case

10 Jan 2024

The SEC finally greenlit BlackRock, Grayscale and other funds to track the crypto price, with trading due to start this week. It’ll be easier to make – and lose – money in the volatile digital asset, but it’s no closer to being a currency, store of value or network for new apps.

Blockchain’s rebirth will pass United States by

19 Dec 2023

Regulators are cracking down on digital asset firms while Congress dithers over passing rules to govern them. Financial hubs like London, faster to set guidelines, will capture the value created not just by crypto, but by potentially powerful distributed ledger technology.

Bitcoin ETF race is a shiny distraction

15 Dec 2023

The digital token’s price has spiked as a US exchange-traded fund creeps closer to approval, bringing it back into the ranks of the world’s most valuable assets. But as with gold, economic swings, not accessibility or inherent value, will mostly determine its long-term worth.

Binance mega-fine fits go-big-or-go-home vibe

21 Nov 2023

The cryptocurrency exchange will pay $4.3 bln for violating US laws, and its founder will stand down. It’s more than HSBC and Goldman Sachs paid for big financial transgressions, and racked up in a fraction of the time. Crypto is precocious in its lows as well as its highs.

Lina Khan’s spirit haunts T-Mobile deal ghost

10 Nov 2023

Consumers are suing the $170 bln telecom company for its deal with Sprint. Given government watchdogs can’t bust up big tech, it seems ambitious. But recent jury verdicts illustrate rising movements against companies. Plus the hassle creates yet another deal impediment.

Capital Calls: Regulating crypto

7 Nov 2023

Concise views on global finance: The US Securities and Exchange Commission is struggling to hire digital token experts, partly because prospective recruits aren’t willing to acquiesce to the agency’s requirement that they sell their holdings in bitcoin and beyond.

SBF’s guilty verdict will help crypto break free

3 Nov 2023

Sam Bankman-Fried’s crimes worsened a rout that wiped trillions of dollars in value from digital assets. The FTX founder’s conviction suggests that, even in crypto, bad actors will be held to account. That could help rebuild trust in the idea of a trustless financial system.

Biden AI plan is one step in avoiding crypto trap

30 Oct 2023

The president’s new executive order aims to set regulatory guardrails for artificial intelligence. It still leaves a big hole for Congress to fill. Failing to set coherent rules risks the kind of piecemeal enforcement that hobbled crypto, but for a technology with higher stakes.

Bankman-Fried circus will be a singular clown show

4 Oct 2023

The FTX founder’s fraud trial bookmarks crypto’s rise and fall. Risk-loving speculators were the most obvious losers, while more everyday investors suffered in previous scandals such as Enron and Countrywide. This time, the spectacle is less likely to lead to new protections.

Capital Calls: US budget

21 Sep 2023

Concise views on global finance: US House Speaker Kevin McCarthy is siding with hardline conservatives to fund the government. Empowering the further-right flank narrows the already slim odds of new Ukraine aid, cannabis reform and crypto clarity.

Capital Calls: Coinbase’s Circle deal

22 Aug 2023

Concise views on global finance: Crypto exchange Coinbase is investing in struggling $26 bln stablecoin issuer Circle. Tokens tracking the US dollar haven’t delivered on hopes of transforming finance; the deal promises little current payoff, but at least keeps the dream alive.

Crypto survivors will be severely scarred

17 Aug 2023

Digital asset custodian BitGo says it raised money at a $1.7 bln valuation, days after a rival filed for bankruptcy. As with stablecoins, exchanges, and currencies, winners are emerging in crypto. Stumbles will still happen, though – a painful but necessary process.

Capital Calls: Coinbase raises the stakes

4 Aug 2023

Concise views on global finance: For the first time, the $21 bln cryptocurrency exchange generated more revenue from services like pledging coins for blockchain initiatives than from transaction fees. Diversification is sensible, but 10 state regulators jeopardize the strategy.

Coinbase is a crypto conundrum, squared

20 Jul 2023

The exchange boasts powerful Wall Street allies like BlackRock’s Larry Fink, and a recent court decision gave its shares a boost. But its future still hangs on unpredictable judges and politicians. The real unknown? Why the market thinks Coinbase is worth anything like $25 bln.

Winklevoss twins take strike two with crypto hype

11 Jul 2023

The founding brothers of crypto investment firm Gemini are suing the parent of bankrupt crypto lender Genesis over a soured deal that led to almost $1 bln in losses. The twins, known for their spat with Meta’s Mark Zuckerberg, are a bellwether of another messy tech hype cycle.

Capital Calls: Digital euro, Thames Water

28 Jun 2023

Concise views on global finance: Brussels is in a new push to convince EU member states and the European Parliament to endorse a digital euro; Britain’s Thames Water could be placed into special administration.

Hong Kong’s market promotions get shrill

28 Jun 2023

The city’s bourse is trying to lure foreign listings from Europe and the Middle East while regulators push local lenders to bank crypto exchanges. The first initiative is worthwhile but unlikely to yield much new business; the latter creates fresh headaches for HSBC and peers.

BlackRock puts bitcoin in a suit and tie

22 Jun 2023

The asset manager’s application to launch a bitcoin ETF ticks at least one box that other firms’ applications didn’t. If the SEC approves, it would make the oldest cryptocurrency easier to hold and more legitimate in the eyes of Wall Street investors – but still with far to go.

Crypto is dead: long live crypto!

16 Jun 2023

Already reeling from fraud and falling prices, cryptocurrencies suffered a fatal blow with US charges against two leading exchanges. Yet Felix Martin argues that the demise of speculative digital tokens may help revive their original purpose as private global currencies.