There’s never a dull moment in the world of crypto with the past few months’ events underscoring just how volatile the industry is.
Terra is a trustless, programmable blockchain ecommerce platform that offers fiat-pegged stable coins to provide more stability when conducting cross-border payments.
The shockwave of the collapse set off a chain reaction in the crypto-verse with no project spared from a massive wave of selling.
My view from the beginning of my crypto journey is just that-a journey with the vast majority of gain available in the outyears typically as the end of the decade.
My opinion is if the SEC is given new regulatory powers many of the current projects around, especially those with founders issued pre-mined or coins at a fraction of a penny would be classified as securities.
The looming legislation is a key clearing event for the industry as I view it, a key catalyst to pave the wave for a Bitcoin ETF.
The discount to net asset value on GBTC is now comfortably in the mid to high 20 percent range, a level that is interesting to new investors while a source of dismay to many longer-term holders.
I have shifted from purchasing the coin outright and reinvesting the interest offered on it through various crypto exchanges to now viewing GBTC as a better alternative.
For my calculations, I am factoring in a four-year holding period to offer ample time for the regulatory framework to be in place for a Bitcoin ETF to come into existence.
Secondly, there have been numerous incidents of tracking error in the fund that the ETF wrapper should address.
While I believe politicians are interested in the space even the best-intentioned bills have found a way to perish once it approaches committee.
The asset class itself is typically more volatile than equities with the recent drop from BTC highs in November 2021 underscoring this reality.
Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in GBTC over the next 72 hours.