The Weekly Wrap: Valkyrie Miners ETF, Recovered BitFinex BTC, CPI at new high

1. Valkyrie launches Miner ETF

The Facts:

• On February 8th, Valkyrie launched its Bitcoin Miners ETF on Nasdaq (WGMI).
• Even though the ETF will have no direct exposure to BTC, at least 80% of its net assets will be securities of companies that “derive at least 50% of their revenue or profits” from BTC mining.
• Back in October, the asset manager was the first to offer indirect exposure to BTC through cash-settled contracts.

Why it’s important:

• With the current conversation regarding energy consumption of Bitcoin mining, the launch of this ETF signals long term commitment by a major asset manager in the space.
• In addition, offering another vehicle for indirect exposure could serve as interesting diversification product, while several asset managers are waiting for their direct exposure ETFs to be approved.

2. DOJ recovers BTC

The Facts:

• On Tuesday, the US Department of Justice managed to complete the “largest cryptocurrency seizure to date”.
• The recovered funds are part of the roughly 120’000 BTC stolen during the infamous hack of Bitfinex in 2016.
• Ilya Lichtenstein and Heather Morgan were reportedly arrested on charges of their involvement in laundering the BTC taken from the exchange.

Why it’s important:

• The inherent transparent functionality of blockchain once again has proven how a transparent, trustless system can provide high security against different forms of malicious intent.
• The fact that law enforcement has caught up and is now able to enforce the law itself, attributes to the maturity of the technology.

3. January CPI numbers

The Facts:

• On Thursday the CPI numbers for January were published, taking annual inflation up to 7.5%. The highest since 1982.
• High inflation is the result of an unusual economy, partially boosted by stimulus checks, and the general impact of the pandemic.

Why it’s important:

• With Inflation finding new heights, how long will the interest rates be able to stay below 0.10%?
• The US Dollar losing more of its purchase power could further drive the public to look for yield in alternative investments.

In other news

• KPMG Canada add BTC and ETH to corporate treasury. (via THEBLOCK)
• Polygon raised $450m. (via Forkast)
• Galaxy Digital ESG. (Galaxy Digital)
• Fitch downgrades El Salvador’s default rating. (Fitch Ratings)

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