25 Apr 2025, 21:03

Swiss National Bank Rejects Calls to Add Bitcoin Reserves

The Swiss National Bank has rejected holding bitcoin reserves, citing concerns over cryptocurrency market liquidity and volatility. "For cryptocurrencies, market liquidity, even if it may seem ok at times, is especially during crises naturally called into question,” said SNB President Martin Schlegel at the bank’s General Assembly meeting Friday. “Cryptocurrencies also are known for their high volatility, which is a risk for long term value preservation. In short, one can say that cryptocurrencies for the moment do not fulfill the high requirements for our currency reserves.” Unknown block type "jwpVideo", specify a component for it in the `components.types` option Schlegel’s comments were prompted by the Bitcoin Initiative , a bitcoin advocacy group whose research demonstrates that adding bitcoin to Switzerland’s treasury would complement its overall portfolio and yield substantial return with minimal volatility. Without bitcoin, the Swiss National Bank's investments grew by about 10% since 2015. A 1% bitcoin allocation to the central bank’s portfolio would have nearly doubled returns over the same period, according to a Bitcoin Initiative portfolio simulation. Annualized volatility would have increased only slightly. The Bitcoin Initiative emphasized that bitcoin's volatility should not be evaluated in isolation, but in terms of its influence on the overall dynamics and performance of the investment portfolio. “[Bitcoin] price reached new highs, it showed resilience under market stress, and it continues to be highly liquid with trading volumes in the double digit billions, every day and night, even on bank holidays,” said Luzius Meisser, a member of the Bitcoin Initiative and board member of Bitcoin Suisse. “The Bitcoin network remains one of the most reliable and secure IT systems ever created. And most remarkably, the United States has started a strategic bitcoin stockpile.” In an emailed statement to CoinDesk, the Bitcoin Initiative suggested the Swiss National Bank’s aversion to bitcoin might be political, as it could be perceived as “an expression of distrust towards other currencies” and harm delicate relations between Switzerland and the European Union. European Central Bank President Christine LaGarde has consistently criticized bitcoin, calling it “ worth nothing ” and a “ highly speculative asset ” linked to money laundering. In January, Lagarde said “I’m confident ” that “bitcoins will not enter the reserves of any of the central banks of the General Council” of the ECB. That was in response to comments made by Czech National Bank Governor Ales Michl that his institution was evaluating adding bitcoin to its reserves. LaGarde argued that bitcoin fails to meet the ECB’s criteria for liquidity, security, and safety from criminal associations. In February, Poland's central bank ruled out “keeping reserves in bitcoins under any circumstances” and the Romanian central bank warned banks not to issue loans to crypto companies. Federal Reserve chair Jerome Powell said in December 2024 that the U.S. central bank was “ not allowed to own bitcoin ” per the Federal Reserve Act and it’s not looking to change the law. The Swiss National Bank has bitcoin exposure through stocks that own corporate bitcoin treasuries, including 520,000 shares of Strategy, 8.12 million shares of Tesla, 580,000 shares of MARA Holdings, and 500,000 shares of CleanSpark, as of the end of 2024 according to Fintel data . Schlegel rejected citizen calls to add bitcoin reserves to the Swiss central bank’s coffers as recently as last month . When it comes to technological advancements, Schlegel noted Thursday that the SNB is running a pilot project using central bank digital currencies to facilitate payments between financial institutions. By contrast, U.S. President Donald Trump signed an executive order this year that establishes a strategic bitcoin reserve and crypto stockpile, along with a Crypto Council that will evaluate budget neutral ways to supplement U.S. digital reserves. The order further prohibits government agencies from creating or promoting a central bank digital currency in the United States out of privacy concerns for citizens.

25 Apr 2025, 20:52

Michael Saylor Hails Fed U-Turn: US Banks Cleared to Back Bitcoin on $95K Rally

Strategy founder Michael Saylor says that banks are free to support Bitcoin following the U.S. Federal Reserve’s cancellation of its previous crypto guidelines, according to a Thursday night X post from the crypto proponent. Saylor Shares His Take “Banks are now free to begin supporting Bitcoin,” Saylor said in an X post regarding the Federal Reserve’s announcement. Banks are now free to begin supporting Bitcoin. https://t.co/mw7KjqJbQr — Michael Saylor (@saylor) April 24, 2025 The Fed’s previous guidance toward digital assets largely advised banks under its oversight to notify the organization before they engaged in activities involving cryptocurrencies at large due to heightened volatility and risk. “The emerging crypto-asset sector presents potential opportunities to banking organizations, their customers, and the overall financial system; however, crypto-asset-related activities may pose risks related to safety and soundness, consumer protection, and financial stability,” a 2022 letter from the federal bank reads . However, the nation’s federal banking system has changed its tune on the emerging fintech sector. “The Board will work with the agencies to consider whether additional guidance to support innovation, including crypto-asset activities, is appropriate,” it said in an April 24 statement . The U.S. Embraces A Changing Crypto Regulatory Environment Saylor’s support of the Fed’s reversal of its crypto guidelines comes as Bitcoin continues to rally, climbing over $95,500 on Friday afternoon. Current U.S. President Donald Trump widely campaigned for crypto-friendly regulations, with Bitcoin experiencing a post-election rally that saw the cryptocurrency soar over $109,000. Just this week, Trump’s pick to lead the United States Securities and Exchange Commission (SEC), Paul Atkins, was sworn in as head of the federal regulator . Michael Saylor, who led Strategy’s initial Bitcoin back in 2020, praised the choice in a recent X post. “SEC Chairman Paul Atkins will be good for Bitcoin,” Saylor said. The end of the Fed’s crypto guidelines and Bitcoin’s coinciding boom may prime traditional finance investors to explore the digital asset industry as a whole. The post Michael Saylor Hails Fed U-Turn: US Banks Cleared to Back Bitcoin on $95K Rally appeared first on Cryptonews .

25 Apr 2025, 20:10

Secure Future: Bitcoin Gains Ground as Safe Haven Amid Global Uncertainty

Are you wondering how the shifting global landscape is impacting your investments? As geopolitical tensions rise and economic uncertainties loom, traditional investment strategies are being re-evaluated. A significant narrative gaining momentum is the increasing perception of Bitcoin as a safe haven asset, challenging the long-held dominance of gold. This shift isn’t just chatter; it’s backed by observations from major financial players. Is Bitcoin a True Safe Haven Asset Yet? The concept of a “safe haven” asset is simple: it’s something expected to retain or increase in value during times of market turbulence or economic distress. Traditionally, gold has been the go-to safe haven. However, recent years have seen Bitcoin enter this conversation. What’s driving this? According to Jay Jacobs at BlackRock, one of the world’s largest asset managers, a key factor is Bitcoin’s growing independence from U.S. equity markets. Historically, Bitcoin often traded in correlation with tech stocks. While some correlation still exists, periods of significant divergence are becoming more apparent, suggesting Bitcoin is reacting to different market forces. This reduced correlation is crucial for an asset to be considered a safe haven. Investors look for assets that won’t plummet simply because stock markets are crashing. Bitcoin’s unique characteristics – its decentralized nature, fixed supply, and global accessibility – contribute to its potential role in this regard. Geopolitical Uncertainty Fuels Asset Shifts Global politics and economics are intertwined, and current geopolitical uncertainty is having a tangible impact on how nations and institutions manage their reserves. Jay Jacobs highlighted that central banks, particularly in countries like China, are strategically reducing their exposure to U.S. Treasuries. Why are central banks moving away from U.S. debt? Reasons often cited include concerns over potential sanctions, a desire to diversify away from the U.S. dollar’s dominance, and a response to global political instability. This move requires finding alternative stores of value. Traditionally, the primary alternative has been gold. Central banks have been significant buyers of gold in recent years, driving up demand and prices. However, the commentary suggests that some entities are now also looking towards Bitcoin as a potential component of this diversification strategy. This isn’t necessarily about central banks adding vast amounts of Bitcoin to their official reserves overnight, though some discussions around digital currencies are happening. It’s more about the broader signal this sends regarding trust in traditional financial systems and the search for uncorrelated assets outside the direct influence of any single government. The Rise of Institutional Bitcoin Investment The narrative of Bitcoin as a safe haven is significantly bolstered by increasing institutional Bitcoin investment. For years, Bitcoin was primarily seen as a retail phenomenon or a speculative gamble. However, the entry of major financial institutions, hedge funds, and corporations has lent it credibility and stability. Firms like BlackRock launching Bitcoin investment products (like their spot Bitcoin ETF) are not just participating in the market; they are actively shaping the perception of Bitcoin among traditional investors. These institutions conduct extensive due diligence, and their willingness to allocate capital signals a growing acceptance of Bitcoin as a legitimate asset class. This institutional embrace provides deeper liquidity and infrastructure, making it easier for large players, and potentially even central banks in the future, to acquire and hold Bitcoin. Their investment often reflects a long-term view, driven by factors like diversification, inflation hedging, and yes, its potential as a safe haven against geopolitical and economic risks. Consider the flow of funds into institutional products like ETFs. Significant inflows during periods of market stress or political uncertainty can be interpreted as investors seeking refuge in Bitcoin. Central Bank Gold Buying: A Precedent for Alternative Assets? The mentioned trend of central bank gold buying provides a valuable context for understanding the potential for Bitcoin adoption. Central banks are inherently conservative institutions. Their large-scale move into gold over the past decade demonstrates a clear strategic decision to de-dollarize and hold tangible assets perceived as independent of government liabilities. While gold has thousands of years of history as a store of value, Bitcoin has just over a decade. However, Bitcoin offers certain advantages that gold does not: Portability and Divisibility: Easy to send across borders and divide into tiny fractions. Verifiable Scarcity: A mathematically fixed supply cap (21 million coins). Decentralization: Not controlled by any single government or entity. Transparency: All transactions are recorded on a public ledger (though pseudonymous). The central banks’ actions with gold show a willingness to move beyond traditional paper assets. This sets a precedent that could, over time, extend to digital assets like Bitcoin, especially as their understanding and regulatory frameworks evolve. Challenges and Nuances for Bitcoin as a Safe Haven Despite the compelling arguments, it’s important to acknowledge that Bitcoin’s role as a safe haven is not universally accepted and faces challenges. Volatility: Bitcoin is still significantly more volatile than gold or traditional safe havens. Large price swings can deter conservative investors. Regulatory Uncertainty: The regulatory landscape for cryptocurrencies is still developing globally, which poses risks for institutional adoption. Nascent History: Compared to gold’s millennia, Bitcoin’s short history means it hasn’t been tested across numerous different types of crises over long periods. Complexity: Understanding and securely storing Bitcoin requires technical knowledge that isn’t necessary for holding physical gold or government bonds. These factors mean that while Bitcoin’s safe haven narrative is strengthening, it’s still considered a riskier and less proven alternative compared to traditional assets by many. What Does This Mean for Your Bitcoin Investment? The growing institutional interest and the geopolitical factors discussed suggest that the fundamental case for Bitcoin as a long-term store of value and potential safe haven is getting stronger. For individuals considering a Bitcoin investment, this perspective adds another layer to the investment thesis beyond pure speculation. It implies that Bitcoin’s price movements may increasingly be influenced by macro-economic and geopolitical events, similar to gold, rather than just tech trends or retail sentiment. Actionable Insights: Diversification: Consider Bitcoin as part of a diversified portfolio, potentially alongside traditional assets. Long-Term View: The safe haven narrative supports a long-term holding strategy rather than short-term trading. Stay Informed: Pay attention to global geopolitical developments and central bank policies, as they may increasingly impact Bitcoin’s price. Understand the Risks: Acknowledge the volatility and regulatory risks still associated with Bitcoin. While Bitcoin may not yet be a perfect safe haven like gold, its trajectory, driven by institutional adoption and global macro-trends, points towards an evolving role in the financial world. Conclusion: Bitcoin’s Evolving Role in a Changing World The assessment from BlackRock, highlighting Bitcoin’s decoupling from U.S. equities and the strategic shifts by central banks away from U.S. Treasuries towards assets like gold and potentially Bitcoin, underscores a significant trend. Geopolitical uncertainty is reshaping investment strategies at the highest levels. While challenges remain, the increasing institutional Bitcoin investment and the clear precedent set by central bank gold buying indicate a growing acceptance of alternative, uncorrelated assets. Bitcoin’s unique properties position it as a compelling candidate in this new landscape, strengthening its narrative as a potential safe haven for the digital age. The journey from a niche digital asset to a globally recognized store of value is ongoing, but the forces of global finance and geopolitics appear to be accelerating its path towards becoming a more established component of investment portfolios seeking refuge from uncertainty. To learn more about the latest Bitcoin trends, explore our article on key developments shaping Bitcoin institutional adoption.

25 Apr 2025, 20:00

Crypto Biz: Cantor Fitzgerald crypto play, ETF inflows highlight industry’s big sentiment shift

US President Donald Trump’s first 90 days in office have been miserable for Bitcoin ( BTC ) and the broader cryptocurrency industry. Despite positive regulatory developments, culminating in the first-ever White House crypto summit on March 7, digital asset prices have been dragged down by the currents of trade war and fear of recession. However, crypto saw a huge sentiment shift this week amid reports that Trump was backing off on his full-scale tariff war against China. It also didn’t hurt that Trump’s media empire, Trump Media and Technology Group, inked a deal with Crypto.com for its forthcoming Made in America exchange-traded funds (ETFs). This week’s Crypto Biz newsletter covers renewed inflows into Bitcoin ETFs, a potential crypto venture backed by Cantor Fitzgerald, and Coinbase’s possible pursuit of a federal banking charter. It wraps up with a look at Tesla’s decision to hold its Bitcoin position despite a disappointing earnings quarter. Bitcoin ETFs see largest inflows since January Capital is flowing back into US spot Bitcoin ETFs, highlighting a positive sentiment shift among institutional investors. According to Glassnode data, the 11 spot Bitcoin ETFs registered $381.3 million in net inflows on April 21, with the ARK21Shares Bitcoin ETF accounting for nearly a third of the total. One day later, the 11 funds registered $912.7 million in net inflows, the largest since January when Bitcoin was trading at all-time highs. The ARK21Shares, Fidelity and BlackRock Bitcoin funds saw the largest inflows on April 22. As billions flowed back into Bitcoin ETFs, spot BTC prices climbed back to $94,000 on April 23, pushing the total cryptocurrency market cap close to the $3 trillion mark again. Net inflows to US spot Bitcoin ETFs are surging again. Source: Coinglass Cantor Fitzgerald is backing $3B crypto venture: Report Cantor Fitzgerald is reportedly in talks with Softbank, Tether and Bitfinex to establish a $3 billion crypto acquisition company called 21 Capital. According to an April 23 report by the Financial Times, the new company aims to capitalize on the favorable crypto environment in the United States following US President Donald Trump’s election. It also seeks to emulate the success of Strategy, the business intelligence firm turned Bitcoin bank that has amassed more than 534,000 BTC. The report suggested that stablecoin issuer Tether will contribute $1.5 billion to the new venture. Softbank is expected to add $900 million and Bitfinex another $600 million. 21 Capital is reportedly eyeing another $350 million raise via convertible bonds alongside a $200 million private equity placement. The proceeds will reportedly be used to buy Bitcoin. Cantor Fitzgerald is led by Brandon Lutnick, the son of Howard Lutnick (right), who became President Trump’s Secretary of Commerce. Source: White House Coinbase weighs US banking license Coinbase is considering applying for a United States federal bank charter , potentially signaling the cryptocurrency exchange’s intention to move into traditional banking services. A spokesperson for Coinbase confirmed to Cointelegraph that the exchange was considering this option, but did not elaborate on the reasons why. “This is something Coinbase is actively considering but has not made any formal decisions yet,” the spokesperson said. A US federal bank charter is significant because it allows licensees to perform core banking activities, including deposit taking and lending. For crypto exchanges like Coinbase, obtaining such a charter could represent a major step toward integrating traditional banking with digital assets. Tesla HODLs Bitcoin despite earnings slump Electric vehicle maker Tesla reported disappointing first-quarter earnings this week but opted to hold onto its Bitcoin investments , signaling that Elon Musk’s company still sees significant upside in digital asset prices. Tesla’s net income plunged 71% in the first quarter, with revenue falling 9% and automotive sales down 20% year over year. Tesla’s disappointing earnings highlight the folly of mixing business and politics, with the results partly attributed to Musk’s role in Trump’s White House. Despite the earnings slump, Tesla held firm on its digital asset position, maintaining 11,509 BTC — unchanged since 2022. At current prices, that stake is valued at just under $1.1 billion. Tesla’s Bitcoin investments. Source: BitcoinTreasuries.NET Crypto Biz is your weekly pulse on the business behind blockchain and crypto, delivered directly to your inbox every Thursday.

25 Apr 2025, 19:44

Senator Lummis blasts the Fed: Anti crypto bias persists, despite ‘lip service’

The Fed recently pulled back guidance warning banks about crypto risks. Senator Cynthia Lummis called it “lip service.” The Federal Reserve withdrew restrictive guidance on banks holding crypto assets, but not everyone is convinced that the regulator is taking a new direction. On Friday, April 25, pro-crypto Senator Cynthia Lummis blasted the Fed for what she considers performative steps on Bitcoin. (1/5) The Federal Reserve’s actions yesterday withdrawing crypto guidance are just lip service. Here’s why: — Senator Cynthia Lummis (@SenLummis) April 25, 2025 Lummis pointed out that the Fed continues to block access to several crypto-friendly banks to master accounts. These are special types of accounts that enable the banks to participate in the Fed’s payment system directly. This has recently led to a crypto-friendly Custodia Bank suing the Fed , citing unwarranted delays in its master account application. Fed didn’t withdraw a key anti-Bitcoin guidance: Lummis The Senator also points to the fact that the Fed uses reputation risk when supervising banks. This applies to certain industries that, while legal, are unpopular and could damage the bank’s reputation. Notable examples include the oil industry, the marijuana industry, and crypto. You might also like: If the Fed prints more money, what’s at stake for Bitcoin? This standard is controversial as it makes it harder for legal businesses to find banking partners. Lummis claims that the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation recently stopped using reputation risk. However, she believes that the Fed didn’t. Lummis also pointed out that the Fed didn’t withdraw the Policy Statement on Section 9(13) . This statement calls Bitcoin and other crypto assets “unsafe and unsound”. Finally, the Senator complained that the Fed’s staff behind the supposed operation “Chokepoint 2.0” is still running the Fed today. Operation Chokepoint refers to the supposed anti-crypto bias, or a series of coordinated actions on behalf of U.S. regulators under the Biden administration. During Joe Biden’s term in office, crypto companies complained that they found it increasingly difficult to find banking partners in the U.S. This has led many to scale back their services or look for offshore banking partners. You might also like: Trump seeks to fire Fed Chair Jerome Powell via the Supreme Court. Good news for the crypto market?

25 Apr 2025, 19:44

BlackRock’s Bitcoin (BTC) Holdings Revealed: Here’s The Stash

BlackRock’s spot Bitcoin ETF is in the spotlight once again as it approaches 3% of Bitcoin’s (BTC) total supply amid a surge in investor inflows. According to blockchain analysis firm Arkham Intelligence, the world's largest asset manager currently holds about 2.77% of all Bitcoin in circulation, which equates to more than 582,000 BTC and is currently worth about $56 billion. Arkham announced today that $1.2 billion worth of Bitcoin was added to the ETF this week alone. While BlackRock’s staggering $12 trillion in total assets under management dwarfs its Bitcoin holdings, the speed and scale of accumulation is striking. On Wednesday, the iShares Bitcoin Trust (IBIT) saw inflows of $643 million, its biggest single-day increase in more than three months. Related News: Critical Number Revealed for Bitcoin: Miners Start Losing Money If BTC Falls Below This Number The ETF's growing dominance comes on the heels of last month's European BTC-based exchange-traded product launch as BlackRock expands its footprint in digital assets beyond the United States. It is worth noting that BlackRock manages these assets on behalf of its clients, meaning that those investing in Bitcoin are its investors, not the company itself. Speaking to CNBC on Thursday, Jay Jacobs, BlackRock’s head of U.S. equity ETFs, suggested that global instability has increased interest in alternative stores of value. “If there’s going to be more uncertainty around the world, things like gold and Bitcoin should continue to rise,” Jacobs said. “People are looking for these assets that are going to behave differently. *This is not investment advice. Continue Reading: BlackRock’s Bitcoin (BTC) Holdings Revealed: Here’s The Stash