Welcome to our monthly newsletter. Every month we create an overview of the performance of our Hodl funds, the developments within Hodl, and the latest cryptocurrency news.
The Securities and Exchange Commission approved the first, long-awaited, future-based Bitcoin ETF (Exchange Traded Fund). The ProShares Bitcoin Strategy ETF started trading on the New York Stock Exchange on October 19th. Due to the high demand by investors, the ETF managed to break an 18-year old record with its debut turnover exceeding one Billion US Dollars.
A few days later, the SEC also approved the Valkyrie ETF, while Van Eck’s ETF is currently awaiting approval. The rapid pace of ETF approvals, followed by the demand of investors indicates a bright future for cryptocurrency investing.
ETFs are registered publicly traded products that allow institutions, companies, and other investors to buy Bitcoin through listed products. The current ETFs hold Bitcoin futures (a derivative that entitle the holder to buy Bitcoin in the future) as the underlying asset. In the future, we hope to see approval of spot ETFs that hold Bitcoin as the underlying asset.
Following the launch of the ETFs, Bitcoin reached a new all-time high. The price managed to rise just above $ 67.000. Another important factor contributing to the rise in price is the increase of Bitcoins being withdrawn from exchanges to be stored for longer periods.
The positive sentiment, especially in the second half of October, is reflected in the fund results. The Hodl.nl Consensus Fund, the Hodl.nl Genesis Fund, and the Oracle Fund all reached new all-time highs in October.
The results of October 2021:
The launch event of Hodl Finance started this month, Hodl Finance is a project created by team members of Hodl.nl. The project combines the best aspects of centralized and decentralized finance to create a sustainable ecosystem for continuous innovation. Hodl Finance combines a transparent foundation with community-driven governance. To make the launch more exciting, a number of HFT tokens will be freely distributed through an online game.
Every month we highlight a cryptocurrency and this month we focus on Ocean Protocol (OCEAN).
Ocean Protocol aims to build a decentralized data exchange that can free up the data sharing economy. A wealth of information is locked up in centralized platforms, corporations, and enterprises and is simply unattainable for data consumers. Here is where Ocean Protocol steps in and connects data consumers with data providers using blockchain solutions. This allows data to be exchanged with ensured trust, openness, and traceability for all concerned parties.
The growth of Hodl continues as Antonie Bartels comes to join the Hodl.nl team.
Over the past five years, Antonie Bartels (26) has been working as a marketeer within the IT sector. Here he obtained a broad range of skills, with his focus being on Web and Content. Within Hodl, Antonie will fulfill the role of Content Marketeer. He will focus on all the expressions and communications of Hodl.
“After years of employment within the cloud business software industry, it was time for a new challenge. When I came across the opportunity at Hodl, I was immediately sold. At Hodl, I can combine my passion for cryptocurrency and blockchain with my experience as a Content Marketer. I am looking forward to making cryptocurrency understandable for investors.”
Antonie is a great addition to our growing marketing team, we warmly welcome him!
On the 4th of October, the Bank of America published the research report “Global Cryptocurrencies and Digital assets”. In the report, the bank dives deeper into subjects as the ecosystem, its applications, regulation, and risks. Bank of America has positive expectations for the long-term future of cryptocurrencies and digital assets. The adoption is growing, which will help decrease the volatility in the market. However, Bank of America does warn investors that possible regulation might affect the growth of the ecosystem. You can read the full report here.
Over the past month, the cryptocurrency market has seen tremendous growth. This resulted in a new All-time high of the total market capitalization with 2.6 trillion U.S. dollars. The Decentralized Finance (DeFi) sector also reached a new milestone. The Total Value Locked in DeFi surpassed the 200 Billion U.S. dollar mark for the first time. Total Value Locked represents the amount of value deposited in DeFi protocols. In the two weeks prior to the All-time high, the DeFi market saw a growth of 14%. The continuation after surpassing the 200 Billion dollar mark provides a promising future for the sector.
Binance, one of the biggest cryptocurrency exchanges, has announced that they will launch a one Billion dollar growth fund to develop its Binance Smart chain ecosystem. With this fund, Changpeng Zhoa (CEO of Binance) aims to reach the threshold of 20,000 active projects on Binance Smart Chain. Half of the fund will be reserved for start-ups in specialized areas such as virtual reality, artificial intelligence, and blockchain-based financial services.
Following the popularity of the Netflix series Squid Game, a project with the same name picked up steam. The unofficial token $SQUID went on a run, raising its price from just $0,01 to a massive $2.856 US Dollar. Within a minute after reaching its all-time high, the token collapsed to $0. The founders managed to leave with 2 Million dollars, leaving its investors empty-handed.
The project, with no affiliation to the Netflix series, only allowed investors to buy the token. They were not able to sell, causing the price to rise. Due to strict due diligence and thorough research, Hodl.nl prevents the funds and their clients from getting exposure to these ‘Hype coins’.
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