As of today, it is possible to pay with Bitcoin in the US online store of the US car manufacturer Tesla. “You can now buy Tesla with Bitcoin,” writes company founder Elon Musk on Twitter.
Tesla does not work with third-party providers for BTC payments, who exchange Bitcoin for US dollars in the background and then transfer them to Tesla, but accepts the BTC directly. According to Musk, Tesla would work exclusively with internal open-source software and also operate a Bitcoin node itself.
The company announced this promise back in February 2021. At the same time, 1.5 billion dollars were invested in digital currency. The value of Bitcoin had risen sharply in recent months – at the beginning of January, it climbed temporarily to over 40,000 dollars. In mid-March, it even cracked a record value of over 60,000 dollars.
Investment bank Morgan Stanley will offer its wealthy clients access to Bitcoin funds. This makes it the first leading bank in the US to take such a step. Morgan Stanley currently manages over $4 trillion for its clients, and its move into bitcoin (BTC) could be huge for the crypto market.
Sources closely familiar with the matter told CNBC that Morgan Stanley told its financial advisors in an internal memo yesterday to grant access to three funds and allow clients bitcoin assets.
According to Morgan Stanley, the move to offer bitcoin funds results from increasing demand from its clients. The bitcoin rally over the past year has caught the attention of Wall Street. Several wealthy investors are demanding exposure to cryptocurrency.
There would be certain restrictions regarding bitcoin funds. Morgan Stanley would only allow wealthy clients to access the funds. To qualify, an investor must have at least $2 million in assets, while the minimum requirement for investment firms is at least $5 million. In both cases, accounts must be at least six months old.
The Norwegian Aker Group is diversified. In addition to its oil and renewable energy business, it is also active in six other areas. Now another one is being added, which is even relatively obvious.
Because Aker ASA announced yesterday that it had founded the subsidiary Seetee. Seetee’s initial focus will be on bitcoin mining, but it also aims to support and expand the entire bitcoin ecosystem. The company calls on its official website to get in touch if you have fresh and big ideas you want to realize.
At the same time, they also announced a partnership with Blockstream and thus indirectly made clear that they see the future in the further development of sidechains and the Lightning Network.
At the start, the company’s assets amounted to 500 million Norwegian kroner, which is equivalent to about 50 million euros, which is invested entirely in Bitcoin and, according to its own statements, wants to keep simple. Seetee is thus becoming a European Bitcoin whale along the lines of MicroStrategy.
Although there has been increased discussion in recent weeks about whether Ethereum might also not see an influx of institutional investors, so far, it looks like other cryptocurrencies are rather secondary in the eyes of this target group. This means that finally, a European company is also betting on BTC after only a comparatively small attempt was launched in Germany by SynBiotic SE so far.
BlackRock signals growing interested in cryptocurrencies. It was announced that bitcoin derivatives on commodity exchanges would become eligible investments for BlackRock Funds V and the Blackrock Global Allocation Fund.
The move is in line with increasingly positive bitcoin rhetoric coming from BlackRock. CEO Larry Fink talked about the possibility of Bitcoin going global.
He added that a digital currency makes the U.S. dollar less relevant.
According to Rieder, deteriorating macroeconomic conditions with negative interest rates, extreme monetary policy, and skyrocketing government debt have led institutions to look at cryptocurrencies for diversification.
The past few weeks have seen a flood of high-profile institutional investors, including Tesla and BNY Mellon. Not to mention the likes of JPMorgan have indicated interest.
This momentum from institutional buyers will only encourage more companies to do the same and buy Bitcoin in uncertain times.
Canada took a bold step this week. The OSC approved the “Purpose Bitcoin ETF.” That replicates the price development of Bitcoin (BTC) and does not represent a closed investment fund, which so far provided the only products on the Canadian market.
Many market observers believe it is more than likely that the U.S. could soon follow suit. Similarly, the Security and Exchange Commission (SEC) is not known for cultivating a liberal approach to the issue. In recent years, several applications from various companies have failed.
Given the excessive increase in money supply in both the euro and USD zones, there is legitimate concern about a massive devaluation of fiat money. The cannabis company SynBiotic SE (XETRA; ISIN: DE000A2LQ777 / WKN: A2LQ77) is therefore set to become the first listed company in Germany to hedge against the devaluation of the euro with bitcoin. Hence, SynBiotic SE has started to shift some of its free liquidity into bitcoin.
SynBiotic SE CEO Lars Müller says of the decision: “Our decision focused less on price fluctuations than the risk of devaluation of euro and dollar. Bitcoin is the exact antithesis of traditional currencies: its volume is limited to 21 million units. This limit is fixed and inviolable, which the cryptocurrency‘s decentralized organization and the blockchain‘s tamper-proof nature in turn guarantees. For this reason, we have more long-term confidence in bitcoin than in euros or dollars, where a central institution, influenced by politicians, can expand the money supply immeasurably. In addition, the cannabis sector, in particular, has had very positive experiences with bitcoin as a simple and digital means of payment. Several SynBiotic subsidiaries already accept payments in bitcoin in addition to payments in euros.”
Bitcoin’s soaring price pushed the oldest and best-known cryptocurrency above the $50,000 mark for the first time in its history on Tuesday. Bitcoin marked a high of 50,602 dollars (41,720 euros) on the Bitstamp trading platform. In the evening, the price then stood at just under 49,000 dollars.
Meanwhile, the value of all Bitcoins in circulation is approaching the $1 trillion mark. On Tuesday, BTC capitalization measured at a high of $927 billion on the website Coinmarketcap. All nearly 8,500 digital currencies are worth about $1.5 trillion, according to the report.
JPMorgan’s co-chairman admits demand for Bitcoin will arrive “at some point”
In a conversation with CNBC about Bitcoin, JPMorgan co-president Daniel Pinto said that the demand for Bitcoin will arrive “at some point.” While the message sounds ostensibly optimistic, Pinto implies that the order for Bitcoin has not yet been reached.
The price of Bitcoin has increased nearly fivefold since October in just four months. In the process, volume on centralized exchanges has exploded, while institutional platforms and vehicles like CME’s Bitcoin futures market and Grayscale’s Bitcoin Trust have recorded record volume.
While the online community Reddit is in the international headlines because users are organizing to buy shares, the creators behind it are pushing ahead with their blockchain and token technology plans. A partnership has been struck with a massive player in the crypto industry: the Ethereum Foundation.
“While Reddit continues to grow with more than 50 million daily users and hundreds of thousands of communities, the platform has long maintained a decentralized ethos by allowing users to create, manage, and grow their own communities,” the US company says. “Through this partnership, we will strengthen our commitment to the blockchain, accelerate scale and resources for the Ethereum ecosystem, and bring the value and independence of blockchain technology to millions of Redditors.”