Cryptocurrency Update
/Mark Carnegie announces cryptocurrency fund
Venture capitalist Mark Carnegie has announced his company, MH Carnegie and Co, in conjunction with blockchain expert Sergei Sergienko are launching a cryptocurrency fund. Carnegie is describing the move as offering Australian investors greater access to opportunities in the global digital asset space.
The fund, the MHC Digital Asset Fund, is directed at wholesale investors and invests in larger, more liquid assets such as Bitcoin and Ethereum, but also early-stage investment in blockchain businesses, non-fungible tokens and second-generation digital assets.
Elon Musk doing an about-turn on how green bitcoin is
Elon Musk revealed in July that his space exploration company, SpaceX, owns bitcoin, though he didn’t say how much. Musk said at a bitcoin virtual event, The ₿ Word, he personally owns bitcoin, but so does his companies Tesla and SpaceX. Musk also indicated that Tesla was on the verge of accepting bitcoin again after some promising signs that more renewable energy was being used for bitcoin mining.
Earlier in 2021 Musk created a furore when he announced Tesla was no longer going to accept bitcoin as a payment method due to environmental concerns. Bitcoin prices dropped a significant 40 per cent since the announcement.
After there was a lowered Chinese coal-powered hash rate, Musk seems to be warming up to bitcoin again, though will require more sustainability research on his behalf, he says. He wants bitcoin to be run on at least 50 per cent renewables before Tesla will reinvest. The last time Tesla invested in bitcoin, it was $1.5 billion.
Musk also revealed that he holds Ethereum (ETH) and further affirmed his support for Dogecoin.
BitMEX crypto derivatives platform launches tracking index
A cryptocurrency derivatives platform based in Seychelles has launched the BitMEX ALTMEX Basket Index which tracks the performance of the top 10 cryptocurrencies in the altcoin and decentralised finance (DeFi) markets respectively.
Historically cryptocurrency investors weren’t able to easily hedge risk or trade cryptocurrency basket products on a specialist cryptocurrency derivatives platform with a fully verified user base and comprehensive know-your-customer requirements in place. This platform will thus be attractive to those wishing to trade in a very secure and compliant atmosphere.
ASIC consultation paper released on crypto-assets
The Australian Securities and Investments Commission (ASIC) has released a consultation paper on how exchange-traded products (ETPs) that invest in or provide exposure to crypto-assets, and how they might meet regulatory expectations of ETPs. The paper sets out proposals on good practice for operators and product issuers to ensure the fair, orderly and transparent financial market function in Australia.
