Asset management giant fidelity files etf

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asset management giant fidelity files etf

The institutional side of BTC and ETH investment continues to make moves as Uniswap plans to skew in a similar direction.

As always, it’s been an eventful week in the blockchain and cryptocurrency industry. Tesla CEO Elon Musk confirmed on Twitter that the electric car maker now accepts — and holds — BTC as payment, while asset management giant Fidelity joined the Bitcoin ETF race in the United States. At the same time, the Grayscale Ethereum Trust has a new challenger, and Uniswap revealed new details for its next iteration, V3.

Here’s everything you need to know about these stories, and more, in this week’s edition of OKX Insights’ News of the Week.

Staked challenges Grayscale with ETH Trust staking rewards

Staked, a provider of crypto-staking services, is entering the asset management space through a new trust product for ETH. Called the Staked ETH Trust, accredited investors are able to both gain exposure to and earn staking rewards for the native cryptocurrency of Ethereum.

Fireblocks is the product’s custodian.

Key takeaways

  • The product looks to directly rival the Grayscale Ethereum Trust while also removing any friction involved with staking ETH on an individual level. However, like Grayscale, there is no redemption mechanism.
  • The Staked ETH Trust is firmly geared toward traditional investors, with a minimum investment amount of $25,000 and a 12-month lock-up period.

Fidelity joins Bitcoin ETF race, files SEC application

Fidelity is throwing its hat into the Bitcoin ETF ring, according to a new filing with the United States Securities and Exchange Commission.

The asset management behemoth’s exchange-traded fund is dubbed the “Wise Origin Bitcoin ETF” and joins the race to become the first exchange-traded product for the foremost cryptocurrency in the U.S.

Key takeaways

  • Fidelity Digital Assets will serve as the custodian, and Fidelity’s own BTC price index would be used for price tracking.
  • There are currently six applications for a Bitcoin ETF pending in the U.S., with at least one expected to be approved following the approval of such products in Canada.

Tesla now accepts BTC as payment, doesn’t convert to fiat

As expected, electric car maker Tesla now accepts BTC as payment in the United States, with international availability expected to come later in 2021. The company’s plans to allow BTC as a means of payment were noted alongside its $1.5 billion purchase in February.

Key takeaways

  • According to Tesla CEO Elon Musk, the company is exclusively using internal and open-source software, while directly operating Bitcoin nodes.
  • Furthermore, Tesla will not convert its BTC to fiat currencies. Instead, it will retain the BTC payments as BTC.
  • Tesla does not accept other cryptocurrencies.

Uniswap reveals new V3 details, sparking UNI decline

Uniswap — one of the top decentralized exchanges by total value locked — revealed new details about its next iteration, dubbed V3.

Primarily, the next form of Uniswap will have liquidity providers make markets within customized price ranges, as opposed to having their funds idling in an infinite range of prices — increasing capital efficiency.

Key takeaways

  • Uniswap’s future shift in market-making dynamics may also shift the direction of the company. As noted by @Fiskantes on Twitter, the DEX’s move toward professional liquidity providers “will skew the direction of the company, its culture and design choices” — while putting more emphasis on business development and regulation.
  • In an effort to avoid a repeat of SushiSwap — which was originally cloned from Uniswap — the Uniswap V3 Core protocol is licensed under BSL 1.1, which protects it for a defined period before making it open.
  • The price of Uniswap’s governance token, UNI, declined dramatically following the revealing of new V3 details.

Jack Dorsey sells NFT of first tweet for $2.9 million

Twitter CEO Jack Dorsey successfully sold the first-ever published tweet, in the form of a nonfungible token, for $2.9 million. The NFT was minted using Ethereum-based platform Cent and carries the tweeted text “just setting up my twttr.”

Dorsey donated all proceeds from the sale to GiveDirectly, a nonprofit that assists families living in extreme poverty by directly sending cash.

Key takeaway

  • Jack Dorsey’s tokenization of the first tweet — published on March 21, 2006 — continues to perpetuate the ongoing NFT boom while further solidifying his endorsement of blockchain technology.

OKX Insights presents market analyses, in-depth features, original research & curated news from crypto professionals.

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