GBTC premium collapses / Coinbase has 9% of crypto / OKCoin Lightning Network

The premium-to-NAV of Barry GBTC) fell from 40% to 4%...

Inside.com Part of   Network January 26, 2021

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Bitcoin $32,276 7 day: -13.3% Ethereum $1,333 7 day: -6% All crypto $954B 7 day: -1% Bitcoin dominance 63% 7 day: -2.2% Prices as of 1:45 p.m. EST

The premium-to-NAV of Barry Silbert's Grayscale Bitcoin Trust (OTCQX:GBTC) fell from 40% to 4% during bitcoin's recent price correction. The arbitrage available between bitcoin's price and GBTC's net asset value (NAV) to institutional investors has been one of the most important drivers of demand for bitcoin, a phenomenon we have covered for months here at Inside Cryptocurrency. Slimmer arbitrage profits (for now): GBTC holds roughly 3% of all circulating bitcoin. With arbitrageurs able to earn higher risk-adjusted yields elsewhere, buying from GBTC investors could decelerate. The trust's large markup to its underlying holdings — 40% as of Dec. 21 — is now just 4%. GBTC's premium to its underlying holdings dropped as low as 2.8% this month — its lowest premium since March 2017, according to Bloomberg data. Bloomberg

Coinbase possesses over 9% ($90B ) of all cryptocurrencies. The world's largest bitcoin exchange has published updated numbers that show custody over 9-10% of the roughly $960B market capitalization of all cryptocurrencies. More: New numbers on Coinbase's About page on Friday show $90B in assets on behalf of its 43M customers. As recently as last week, that page showed $25B in assets on the platform. The exchange has filed with the SEC for an IPO that could fetch a valuation north of $28B. (Coinbase filed Form S-1 in mid-December.) Coinbase will also list its shares on a secondary market for its private stock, ahead of its IPO, on Nasdaq Private Market. Coindesk

A message from MELIO Mom and pop go digital: how Covid-19 led small businesses to embrace new tech. The global spread of Covid-19 made 2020 one of the most challenging years on record for small businesses everywhere.  A new survey commissioned by B2B bill payment company Melio and conducted by market research company OnePoll indicates that small businesses may have some advantages at times of crisis, mainly as they are more willing to adapt to changing environments and adopt new solutions than large companies are.  According to the survey, 31% of small business owners believe embracing new technology has helped their business during Covid-19. On top of that, 25% of respondents said the pandemic accelerated the adoption of digital tools by their business. Interestingly enough, the survey also pointed at age as a decisive factor, showing younger small business owners were more likely to have made changes during this time. Read More

Bitcoin and Lightning Network logos OKCoin became the latest exchange to integrate bitcoin's Lightning Network. About a half dozen exchanges have added support, notably including Bitfinex and California-based Kraken, both of which support Tether (USDT). More: OKCoin announced its support for both deposits and withdrawals via Lightning Network. The integration is scheduled for completion by the end of February. We have written extensively about Lightning Network in the past, which at times was majority-controlled by a single person and could have been overtaken, as of Feb. 2020, in an attack costing just half a bitcoin. The Block Crypto

Russian Ministry of Labour and Social Protection Russia's Ministry of Labor is demanding its federal and local government workers liquidate crypto holdings. A document dated Dec. 16, published on the Ministry's website, indicates that the directive aims to prevent corruption. Russian crypto news outlet Forklog first reported the news. The letter refers to new crypto laws that came into effect in the country this month, which we have been following here at Inside Cryptocurrency. Neither public officials, their spouses, nor their under-age children are allowed to own cryptocurrencies issued outside of Russia. The deadline for divestiture is April 1. Coindesk

Denis Beau, Banque de France First Deputy Governor The first deputy governor of France's central bank sees inevitable regulatory changes to accommodate for central bank digital currencies (CBDCs). During the Paris Blockchain Week Summit, the French central bank's first deputy governor Denis Beau spoke about monetary technological innovations, suggesting that ongoing CBDC experiments have an expansive nature and may trigger changes in many regulatory guidelines. Banque du France began CBDC trials as part of an experimental program on Mar. 27, 2020. All countries in the European Union are testing a bloc-wide CBDC and analyzing regulatory changes. Governor Denis Beau stated that French central bankers are preparing national rules in cooperation with the European Commission. The Block Crypto

QUICK HITS: See how consumer electronics brand Nomad went headless with their existing Shopify store to increase their ecommerce conversion rate by 25%.* Anthony Scaramucci introduced a new bitcoin fund last week from his company, SkyBridge Capital, and then marketed bitcoin investments as being "as safe as owning bonds and commodities like gold." Bank of England Governor Andrew Bailey does not believe an existing cryptocurrency has a structure that will survive as a long-term means of payment. The Reserve Bank of India issued a report defining the expanding digital payments structure within the country, saying they are exploring the need for a digital version of a fiat currency and ⏤ if deemed necessary ⏤ how to "operationalize it." The Central Bank of the Philippines has approved guidelines on virtual asset service providers — entities that facilitate financial services via blockchain, Bitcoin, cryptoassets, and digital currencies — to cover new business models and activities. Marathon Patent Group (NASDAQ:MARA) purchased 4,812 bitcoin ($150M worth) to hold as a treasury reserve. Overstock (NASDAQ:OSTK) is converting its blockchain-focused subsidiary, Medici Ventures, to a limited partnership fund. Pelion Venture Partners, a separate VC firm, will be a general partner in the fund. Diginex Limited (NASDAQ:EQOS) entered into a strategic partnership with GSR Markets, a global marketmaker for cryptocurrency spot and crypto derivative markets, and one of the main liquidity providers for its EQUOS crypto exchange. What are the costs of inefficiencies in your product release cycle? Read how top companies save over $1M each year.* *This is sponsored content.

Curated by Associated Press fanboy, eye-strained news terminal watcher, and bitcoin follower since $1, Aaron Wise. Temporarily listening to news squawk boxes in Florida while awaiting the construction of cryptopia. Editor Charlotte Hayes-Clemens is an editor and writer based in Vancouver. She has dabbled in both the fiction and non-fiction world, having worked at HarperCollins Publishers and more recently as a writing coach for new and self-published authors. Proper semi-colon usage is her hill to die on.

Melio is on a mission to keep small businesses in business by providing them with a smart B2B payment solution.

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