Germany Done Selling Its BITCOIN

Author

Gerry Rafferty
July 15, 2024

It's Not Germany Selling Bitcoin. Its Saxony.

The state of Saxony in eastern Germany has been selling nearly half of the Bitcoin it confiscated in January, causing a stir in the market. The sale of over $1.5 billion worth of Bitcoin has led to a significant decline in crypto prices and widespread concern among investors. However, it's important to clarify that it's not the country of Germany, but rather the state of Saxony, that's behind the massive sell-off. The final sell off occurred on July 12th and the market has rebounded to $63,500.

Saxony seized 49,857 Bitcoin worth almost $3 billion from Movie2k , a website accused of money laundering and other illegal activities. As part of standard procedure, the state is liquidating its seized assets, which includes the Bitcoin. The German Federal Criminal Police Office (BKA) is responsible for handling the sale, as it was involved in the initial investigation and has the necessary technical expertise.

The sell-off has been met with criticism on social media, with some calling it a "retarded" decision. However, according to Dr. Lennart Ante, co-founder and CEO of Blockchain Research Lab, it's simply standard procedure for confiscated assets to be liquidated within a certain period. The BKA does not have decision-making power and only acts on instructions from Saxony.

While some argue that Saxony is selling too much Bitcoin at once, others believe that the volatility of the asset makes an emergency sale justified. On Tuesday, Saxony received $200 million back from some exchanges, indicating that there wasn't enough demand to buy such a large sum. Despite the controversy surrounding the sale, it's clear that Saxony is following standard protocol in liquidating its seized assets.

Ethereum ETFs ‘close to the finish line’ — Bitwise exec

Bitwise's Chief Compliance Officer, Katherine Dowling, has indicated that eight United States-based spot Ether exchange-traded funds (ETFs) are nearing approval by the Securities and Exchange Commission (SEC). Dowling believes that the few remaining issues being vetted between the SEC and prospective ETF issuers suggest that a launch date is imminent. US SEC Chair Gary Gensler had previously predicted that spot Ether ETFs would launch in the summer.

The issuers have been waiting for six weeks to receive approval after submitting amended S-1 registration statements in early July. Dowling noted that the SEC has been open to discussions about new products beyond Bitcoin and Ether, including non-Bitcoin and Ether products. She stated that communication with the SEC has been "quite welcoming" regarding these products.

Bitwise's Chief Investment Officer, Matt Hougan, estimates that spot Ether ETFs could attract up to $15 billion in inflows in the first 18 months of trading, similar to the amount of inflows seen by spot Bitcoin ETFs since their launch six months ago. The Chicago Board Options Exchange (CBOE) recently filed applications to list spot Solana ETFs on behalf of VanEck and 21Shares.

However, Dowling is less optimistic about the approval of a third spot cryptocurrency ETF under Gensler's leadership. Senior Bloomberg ETF analyst Eric Blachunas made a similar observation, stating that a spot Solana ETF application would likely be "dead on arrival" if Biden were re-elected and Gensler remained as head of the SEC.

UK’s Potential New City Minister Tulip Siddiq Could Back Tokenization

Tulip Siddiq is expected to become the UK's City Minister, overseeing the country's financial services industry, including fintech and crypto assets. According to a Bloomberg report, Siddiq is set to be appointed Economic Secretary to the Treasury by newly elected Prime Minister Keir Starmer. As City Minister, Siddiq will play a key role in shaping the government's initiatives to maintain London's status as a global financial hub after Brexit.

Siddiq has been a vocal advocate for fintech innovations and has criticized the Conservative Party for their handling of crypto regulation. She has also expressed support for tokenization and digital assets, with deVere Group CEO Nigel Green noting that Labour's stance on digital assets suggests they would transform the UK into a global crypto hub. Green emphasized the need for a clear and comprehensive regulatory framework to establish the UK as a global crypto hub, providing clarity and security for businesses and investors.

Siddiq has been a Member of Parliament since 2015 and has held similar roles in Starmer's shadow cabinet, focusing on financial services and fintech. Her appointment as City Minister is expected to bring a new perspective on financial regulation and digital assets in the UK.

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