Bitcoin is under pressure as the Federal Reserve has indicated that rates could go higher than expected and after a major crypto-focused lender, Silvergate Capital, collapsed.

Jonathan Raa | Nurphoto | Getty Images

Bitcoin briefly fell 8% to below $20,000 on Friday, hitting a near-two-month low, after a stock market sell-off in the U.S. and the collapse of a crypto-focused lender.

The cryptocurrency market saw more than $70 billion wiped off its value over the course of the 24 hours.

Bitcoin was last trading lower by just 2.7% at $19,944.66, according to Coin Metrics. Ether was last down 2.6% at $1,414.21.

The crypto sell-off has been prompted by a number of factors. The movement of cryptocurrency prices is quite closely correlated to U.S. stock markets, in particular the tech-heavy Nasdaq.

On Tuesday, U.S. Federal Reserve Chairman Jerome Powell indicated that interest rates may go higher and stay higher than expected. The raising of interest rates over the past year has weighed on risk assets such as stocks, and in particular cryptocurrencies.

"There is just little reason to buy bitcoin now as the market is saturated with negative developments, not just specifically for the crypto industry, but also for the wider financial market as well," Yuya Hasegawa, an analyst at Japanese crypto firm Bitbank, told CNBC via email.

Another major factor weighing on crypto prices is the collapse of Silvergate Capital, a major lender to the crytpo industry. Silvergate said Wednesday it is winding down operations and liquidating its bank.

Silvergate's fall is another example how the collapse of major cryptocurrency exchange FTX continues to have an impact on the industry. FTX was a big customer of Silvergate.

Separately, on Friday morning the Federal Deposit Insurance Corporation closed Silicon Valley Bank and took control of its deposits, making it the largest U.S. bank failure since the global financial crisis. The bank's parent company, SVB Financial, said late Wednesday that it sold off $21 billion worth of its holdings at a $1.8 billion loss. SVB was a major bank in the technology start-up space.

The sale of assets comes as SVB grapples with a weaker technology funding environment as VCs remain cautious amid a weaker macroeconomic situation and rising interest rates.

Both Silvergate and SVB put their money into U.S. Treasurys which have lost value as the Fed has raised rates. These banks have been forced to sell these bonds at a loss to shore up their capital position.

"Overall, sentiment seems to have turned quite bearish given a combination of global macro and interest rate rises but also the exposure many banks probably have to long duration securities," Vijay Ayyar, vice president of corporate development at crypto exchange Luno, told CNBC via email.

CNBC's Tanaya Macheel contributed reporting.

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More than $70 billion wiped off crypto market in 24 hours as bitcoin drops below $20,000 - CNBC

In an interview Tuesday, Frank defended Signatures business and said it was seized due to an overreaction by a New York state regulatory agency following the collapse of another financial institution, Silicon Valley Bank, last Friday. He also disputed his critics claim that he had supported a 2018 law, signed by then-president Donald Trump, that weakened key provisions of Dodd-Frank.

Regulators seized control of Silicon Valley Bank and Signature Bank after customers suddenly withdrew billions of dollars of deposits last week, and regulators determined the banks could collapse if the withdrawals continued.

The two banks, based in California and New York, respectively, had some features in common that made them vulnerable, industry observers said. Both had exceptionally high levels approximately 90 percent of uninsured deposits, that is funds belonging to a single customer in excess of $250,000, the federal cap for insuring deposits.

And both banks had a high proportion of customers from high-risk industries tech in Silicon Valleys case and cryptocurrency in Signatures. Silicon Valley Bank had also invested a significant portion of customer deposits in long-term bonds, whose value had declined as the federal government hiked interest rates in the past year, making it harder for the bank to meet customer demands for withdrawals.

Signature, which had accepted crypto token deposits since 2018, was affected by an erosion of confidence in cryptocurrency after the bankruptcy of FTX, a cryptocurrency exchange, last November and the announced liquidation of Silvergate Bank, a cryptocurrency-focused bank, this month.

Frank said Signature got hurt when nervous customers rushed to withdraw their deposits Friday. Then, over the weekend, the New York Department of Financial Services stepped in to shut the bank and hand the reins to the Federal Deposit Insurance Corporation as a receiver.

The New York regulators said they had problems with our data, Frank said. I dont think thats a reason you shut people down.

A Department of Financial Services spokesperson said that following the bank run, Signature failed to provide reliable and consistent data, creating a significant crisis of confidence in the banks leadership.

Frank also alleged that bias against cryptocurrency may have played a role in the New York regulators decision to shut down Signature. I thought it was an anti-crypto thing, he said.

The DFS spokesperson said, The decisions made over the weekend had nothing to do with crypto.

Frank has faced criticism this week for allegedly supporting a 2018 bill that eased regulatory oversight of medium-sized banks, such as Signature, while serving on Signatures board. But Frank pushed back on Tuesday, citing a 2018 CNBC op-ed he wrote criticizing the final form that bill took. Why I would vote no on Senate bill to amend Dodd-Frank, the headline said.

The central dispute back in 2018 and the current controversy is the question of which banks are so big, and so important to the broader financial system, that they must be subjected to heightened regulatory scrutiny.

The original Dodd-Frank law set that threshold at $50 billion in assets. Banks above that limit faced strict reporting requirements, were subjected to stress tests to see if they could withstand a severe economic downturn, and had to create plans for how they would safely wind down operations in the event of a collapse. Regulators were also more likely to require them to keep greater amounts of reserve capital on hand.

Frank said Tuesday that he always thought the $50 billion threshold was too low. It placed too great a burden on smaller banks, which inhibited competition. He said Tuesday that he called for an increase of the threshold in 2013 at a conference held at the Chicago Federal Reserve. Id never heard of Signature Bank at that time, he said.

He joined Signatures board in 2015 and earned $2.4 million in stocks and cash while serving there, Frank said.

Signature was under the Dodd-Frank threshold in 2015, with less than $29 billion in assets, according to Federal Reserve statistics. During Franks time on the board, the banks assets more than tripled to more than $110 billion as of last week, according to the FDIC.

In 2018, as the bill amending Dodd-Frank was being considered, Frank advocated raising the $50 billion threshold. He wrote in the CNBC op-ed that $125 billion would be reasonable. He argued that the effect of raising the threshold to that level would be substantively neutral, and politically beneficial, undercutting some criticism of Dodd-Frank and helping to safeguard the laws future.

But when Republicans pushed for a $250 billion limit, he balked. I believe that the price the Republican colleagues are demanding is too high, he wrote at the time.

Senator Elizabeth Warren, in recent days, has sharply criticized the 2018 law and said that leaving the $50 billion threshold in place could have prevented the collapses of Silicon Valley Bank and Signature Bank.

President Trump and congressional Republicans decision to roll back Dodd-Franks too big to fail rules for banks like [Silicon Valley Bank] reducing both oversight and capital requirements contributed to a costly collapse, she said in a statement Friday.

On Tuesday, Warren and other Democratic legislators introduced a bill to repeal the portion of the 2018 law that raised the asset threshold.

Mark Williams, a Boston University finance professor and former Federal Reserve bank examiner, said raising the threshold had caused a reduction in bank oversight. But he said decisions at the banks themselves were more significant factors in their failures than regulatory changes.

Both banks allowed their uninsured deposits to grow to extraordinarily high levels, Williams said. And both aggressively pursued clients in high-risk, high-reward sectors, he said. (Signature also had customers in a wide range of other industries, the Department of Financial Services spokesperson said.)

They bet that those industries would continue to take off and that the industries success would be their success, he said. It was a very risky decision.

Signature changed its risk profile in a very short time, Williams said, referring to the banks pivot in recent years toward cryptocurrency. This was a staid bank that turned into a more risk-taking bank and it was clearly to seek greater profit.

Mike Damiano can be reached at mike.damiano@globe.com.

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Barney Frank, coauthor of landmark banking reform, defends his positions after SVB collapse, Signature Bank seizure - The Boston Globe

Alex Dovbnya

BlackRock CEO Larry Fink has suggested that the next big trend in the crypto industry could be tokenization

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BlackRockCEO Larry Fink's annual letter to investors suggests that tokenization might be the next big trend in crypto.

According to the head of the $10 trillion asset management behemoth, Bitcoin has caught headlines as a mere distraction, with the media's "obsession" obscuring other interesting developments happening in the cryptocurrencyspace.

Fink draws attention to the dramatic advances in digital payments taking place in emerging markets such asBraziland parts of Africa. Hecontrasts them with the sluggish pace of innovation in developed markets like the US, where the cost of payments remains high.

In his view, the fragmentation of asset categories into tokens presents a highly encouraging prospect.

He has confirmedthat Blackrock is actively delving into the realm of digital assets with an emphasis on permissionedblockchains and the conversion of stocks and bonds into tokens.

However, Fink acknowledges that while the industry is maturing, there is still no regulatory clarity.He hasassuredinvestors that they will apply the same standards and controls to cryptothat they do across their business.

As reported by U.Today,Fink predicted that most cryptocurrency companies would failduring his recent appearance at a summit. The BlackRock bossalso revealed that BlackRock put $24 million into the defunctFTX exchange, but it was then forced to mark thatsum down to zero.

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Forget Bitcoin: BlackRock CEO Touts Next Big Thing in Crypto - U.Today

The cryptocurrency exchange Kraken made big news last month when it announced a groundbreaking settlement with the Securities and Exchange Commission, shutting down the firms staking-as-a-service business in the U.S. and paying a $30 million settlement.

The news came as a jolt, in part because of the reputation of the defendant. Kraken is one of the more responsible actors in an industry characterized by reckless business practices. But a bigger shock came in the form of the SECs interpretation of staking.

To technologists, staking has a straightforward definition based on its purpose in a cryptocurrency network. In proof-of-stake consensus mechanisms, networks are secured by actors running specialized software who are typically required to put funds at stake to deter them from acting maliciously. Under this incentive scheme, funds are destroyed (slashed) by the network if a participant acts dishonestly. Staking refers to using ones funds to participate in the security of a decentralized cryptocurrency network by running softwarerather than burning electricity, like in a proof-of-work consensus chain.

Staking by exchanges, as pioneered by Coinbase, involves a service-based approach. This is where the practice should have begun and endedexchanges could act as savvier participants to secure a blockchain network on behalf of some token holders, passing along to them any rewards accrued in the process. On the Tezos platform, Coinbase acts as a delegate for token holders to assign rights to validate and vote on the blockchain. Coinbase makes money by taking a portion of the rewards accrued by running software on their customers behalf. This is a modest but consistent revenue steam, and an easy option for less-technical token holders to participate in the Tezos network.

At the peak of the 2020 speculative frenzy, known as DeFi summer, however, the definition of staking as a technical practicea security-ensuring mechanism for a network paired with a small incentive structuremorphed into a catchall phrase to describe everything from risky lending practices to providing liquidity to decentralized exchanges. Some even began invoking staking to describe the returns for Ponzi-esque projects like the Terra protocol. The upshot is that many protocols and tokens no longer employ staking to describe securing a network, but rather as a marketing term for a dodgy reward system for new users. This has led to many crypto participants, especially less sophisticated ones, conflating yields and stakes and believing that staking implies double- or triple-digit returns on recently minted tokens.

As Sam Bankman-Fried described in his now-infamous money box analogy, this weird box staking thing starts out as just this sort of like side show to the bigger story of were gonna change the world with the protocol that we just built. Its no surprise, given Bankman-Frieds history with the disgraced FTX exchange, that the weird box staking thing propping up crypto markets in 2020 and 2021 proved to be unsustainable.

This is why we cant have nice things.

Conflating securing a network with marketing a token through the common use of staking is a microcosm of whats plagued the industry rhetorically for the last decade. In blurring the lines between activities like lending, token distribution, Ponzi economics, andtechnical security, staking now means nothing at all. Like all security measures, the concept was at its best when it was boring.

Once, there was a rhetorical distinction between the creation of tokens for network security and the creation of tokens as a distribution strategy to promote a new project. Unfortunately, too many projects appropriated the language of network security to describe a distribution scheme that would create good feelings through unsustainably high yields for early participants. While the market capitalization of the industry expanded, nobody felt the need to clarify these two radically different activities. Now that numbers have gone down, the folks who succumbed to peer pressure have started to watch their chickens come home to roost. (My guess is that stablecoins will be the next meaningless word to invite scrutiny from regulators.)

A call for precise language in the cryptocurrency space has always felt like a shout into the void. The recent staking-as-a-service settlement feels like validation of that lament, and it will be far from the last.

Kathleen Breitman is a cofounder of Tezos. The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs ofFortune.

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Staking as a disservicehow crypto marketers ruin it for everyone - Fortune

Use of emerging alternative payment platforms, such as Apple Pay or Bitcoin or other cryptocurrencies, can alter consumer credit card behavior and consequently impact our interchange fee income.

So says Horizon Bancorp which provides a broad range of banking services through its bank subsidiary, Horizon Bank.

They have $7.9 billion in assets and $5.9 billion in deposits with this regional bank being the first to explicitly state that bitcoin is a risk to their profits.

The increasing use of Bitcoin and other crypto currencies and/or stable coin and the possible impact these alternative currencies may have on deposit disintermediation and income derived from payment systems, is one of the risks, uncertainties, and factors that could cause Horizons actual results to vary materially, the bank says, as well as:

Potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms (e.g., Apple Pay or Bitcoin) take a greater market share of the payment systems.

Of course the banks loss is the publics gain as they benefit from lower fees or from diversifying deposit risks, but allegedly some regulators are intervening against this market competition and innovation which benefits the taxpayer.

Barney Frank, the former congressman and architect of the landmark Dodd-Frank banking regulations who also sits on the board of Signature bank, which was closed last week by the Department of Financial Services in New York (DFS), accuses the latter of closing the bank for no good reason as it was not insolvent, but to send a crypto message.

Why did they react so harshly to what they said was our inability to give them the sufficient data? I believe it was probably to send the message that even though we were doing crypto stuff responsibly, they dont want banks doing crypto.

DFS has denied the accusation, claiming there was a crisis of confidence in the banks leadership, but if the bank was indeed solvent, closing in does raise questions.

In addition the admission by Horizon bank now finally provides evidence of bias, which law makers and the elected will hopefully bear in mind when they are lobbied, both through the media and in private, against what they see as their competitor: crypto.

Where bankers as individuals are concerned however the story has been changing and considerably, with many of them embracing the new frontier.

Yet some bankers, like Jamie Dimon or Warren Buffet, remain viciously biased towards the entire crypto space with some regulators too often not bothering to hide their bias.

A bias no different than Blockbusters towards Netflix, with here too lower fees, diversification of risk and other features, including ease of global access, benefiting the public.

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Bitcoin a Risk to Profits Says Bank - Trustnodes

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Fidelity Investments has quietly opened access to bitcoin and ether trading to all of its retail traders, filling a void created by the closures in recent days of cryptocurrency-friendly banks that bridged the divide between digital and traditional finance.

The Fidelity Crypto platform, previously available only to institutions and some waitlisted customers, was made available earlier this month. Individual investors can now buy and sell bitcoin and ether and use custodial and trading services provided by Fidelity Digital Assets.

Clients are not yet able to transfer cryptocurrency to or from their Fidelity accounts. The company said it would be exploring cryptocurrency transfers in November, shortly after announcing the waitlist, but hasnt provided a clear timeline.

The separation of investors from the passwords known as private keys that allow direct owners to take custody of their cryptocurrencies combined with the inability to transfer holdings means that Fidelity retains custody of the assets. A string of bankruptcies among crypto exchanges and investment programs last year illustrated the drawbacks of entrusting digital assets to intermediaries, though Fidelitys size and reputation likely mitigates the risk.

The company has not responded to a Forbes request for more information.

Trading is open only to U.S. citizens over the age of 18 who reside in one of the 36 states where Fidelity Digital Assets offers services.

Following the footsteps of stock-trading app Robinhood and crypto exchange Binance.US, the asset manager has touted the offering as commission-free, but theres a catch: a 1% fee will be added to each transaction. The company calls the fee a spread and defines it as the difference between your execution price and the price at which Fidelity Digital Assets fills your order.

The move comes at a time when the U.S. cryptocurrency market is facing regulatory pressure, sparked by multiple high-profile collapses last year, and closures of crypto-friendly banks including the Silicon Valley Bank, Silvergate and Signature.

Still, the Fidelity service provides both the credibility that crypto has needed and the opportunity for investors, most of whom rely on their financial advisors for investment strategies, says Ric Edelman, a financial advisor and founder of Digital Assets Council of Financial Professionals.

In addition to cryptocurrency trading, Fidelity also provides, Fidelity Ethereum Index Fund, which tracks the performance of the coin in U.S dollars. In December, the asset manager filed three trademark applications for providing NFT and metaverse investment services.

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Amid Crypto Bank Crisis, Fidelity Expands Bitcoin, Ether Trading To Most Retail Accounts - Forbes

It's been a tough time for cryptocurrency but, despite volatility, you still need to know how the technology works, said Douglas Boneparth, a certified financial planner based in New York.

The digital currency market dropped by nearly $1.4 trillion in 2022, following a cascade of bankruptcies and liquidity issues, including the high-profile collapse of crypto exchange FTX. In March, crypto-focused Silvergate Capital announced plans to wind down operations and regulators shut down crypto lender Signature Bank.

Although the crypto market rallied at the start of 2023, assets recently tumbled again, with bitcoin falling below $20,000 on Friday, triggered by a stock market sell-off in the U.S. But bitcoin surged by 10% on Monday, following the news of U.S. regulators' plans to safeguard depositors and financial institutions associated with Silicon Valley Bank.

Here are more FA Council perspectives on how to navigate this economy while building wealth.

Boneparth, who is president of Bone Fide Wealth and a member of CNBC's Financial Advisor Council, said the recent events and crypto market volatility have made him even more "bullish" on learning about the technology.

"Clearly, the decentralized financial world is interconnected to the traditional financial world more so now than ever before," he said.

An early adopter of digital currency since 2013, mostly in bitcoin, Boneparth said there's plenty to learn about the technology we'll inevitably see more from in the future.

"This doesn't necessarily mean you should be allocating your money there," he said. But he believes you should be investing your time and energy to see where the technology may be heading.

"I've learned a lot in my journey without having to take an exorbitant amount of risk," Boneparth said.

When it comes to cryptocurrency, he said the "best thing you can do" is learn about the technology and how decentralized finance works. "A little bit would go a long way," he added.

Ive learned a lot in my journey without having to take an exorbitant amount of risk.

Douglas Boneparth

President of Bone Fide Wealth

"That's powerful stuff," Boneparth said. "It's not always putting your money into the latest craze of crypto; it's learning what it's all about."

While many advisors won't recommend clients buy or sell digital currency, Boneparth said investors may come to his practice looking for guidance on existing crypto allocations.

"Some people have amassed quite a bit of money in cryptocurrency," he said. "And it's my job to show them what the risks are, how that concentration and that asset can impact their long-term goals and their portfolio."

Boneparth said it's important to know how owning any particular type of asset may affect your financial goals, especially "volatile assets" like cryptocurrency.

Originally posted here:

Despite market volatility, advisor says he's 'bullish' on crypto education. Here's why - CNBC

Hashdex AG

Hashdex Bitcoin Futures ETF (DEFI) product provides Institutional Investors with access to Bitcoin through a cost-effective and regulated exchange-traded fund

DEFIs structure is well-positioned for potential future conversion to spot-price Bitcoin product

New York / Rio de Janeiro / London, March 16, 2023 Hashdex, a leading global crypto-focused asset manager, is proud to celebrate the six month anniversary of the Hashdex Bitcoin Futures ETF, the worlds first Bitcoin Futures ETF (exchange-traded fund) registered solely under the Securities Act of 1933 (33 Act) by ringing the Opening Bell at the New York Stock Exchange on Wednesday, March 15. The innovative product, developed with Teucrium Trading, LLC (Teucrium), a 33 Act fund specialist focused on commodities funds, was launched on NYSE Arca on September 16, 2022.

The importance of having access to institutional-quality products, processes and service providers cannot be stressed enough, and as institutional investors and wealth managers continue to look for Bitcoin exposure through regulated products we are proud to provide a cutting edge approach to gain exposure through a cost-effective and regulated exchange-traded fund, said Marcelo Sampaio, Co-Founder & CEO of Hashdex. As has been our mission since the founding of Hashdex, we remain steadfast in our commitment to serving as a responsible firm within this evolving, innovative space that, above all else, puts our investors first. We continue to work closely with global regulators to support and fuel growth within the crypto ecosystem and were hopeful that a successful conversion to a Bitcoin spot ETF, such as with our Hashdex Bitcoin Futures ETF, will be the next step for the industry.

Bitcoin has seen roughly a 50% price increase year-to-date which Hashdex believes reinforces the underlying interest and confidence in the asset. Through the Hashdex Bitcoin Futures ETF, investors can participate in Bitcoins long-term growth potential while being confident that their funds remain secure through Hashdexs transparent, risk-aware and diligent approach to working with leading exchanges and custodians. Hashdex serves as the Digital Asset Advisor to the Hashdex Bitcoin Futures ETF, and is responsible for providing its partners with research and analysis regarding bitcoin and bitcoin markets for use in the operation and marketing of DEFI.

Story continues

Recent uncertainty within the banking sector has reiterated Bitcoins use case and reinvigorated enthusiasm from investors in holding an asset class that acts as a decentralized store of value across macroeconomic conditions, said Bruno Caratori, Co-Founder & COO of Hashdex. The resurgence of interest given the strong performance for crypto assets this year, combined with many long-term investors who have been cautiously evaluating increased exposure in the space as part of their asset allocation strategies, has reinforced our commitment to ensuring the products we bring to market meet global investor needs and adhere to the highest standards.

With offices in Brazil, the United States, and Europe, Hashdex is a renowned leader in the development of industry-first crypto offerings that enable global investors to participate in the crypto ecosystem. Nasdaq developed, in partnership with Hashdex, the Nasdaq Crypto Index (NCI), which benchmarks the institutionally investable crypto market, and listed the worlds first crypto ETF in history, the Hashdex Nasdaq Crypto Index ETF, on the Bermuda Stock Exchange.

Hashdex currently has nearly 230,000 investors globally in its products. KPMG has served as the independent auditor for Hashdex's funds since 2018, and Fidelity Digital Assets, Coinbase Custody, and Bitgo Trust serve as custodians of digital assets managed by Hashdex.

The firms Research Team regularly publishes cryptocurrency resources for investors. Recent research published by Hashdex covers topics ranging from: Bitcoins recovery, optimism in the new year as bulls make their case, timing in crypto investing, and more.

About HashdexHashdex is a global pioneer in crypto asset management. Hashdex invites innovative investors to join the emerging crypto economy. Hashdexs mission is to provide educational resources and best-in-class products that advance its efforts to help build pathways by opening the crypto ecosystem to the world. The firm co-developed the Nasdaq Crypto Index (NCI) with Nasdaq to provide global investors with a reliable benchmark for the crypto asset class. In 2021, Hashdex introduced the worlds first crypto ETFs and other innovative products, enabling nearly 230,000 investors to simply and securely add crypto to their portfolios. For more information visit http://www.hashdex.com or follow Hashdex on Twitter or LinkedIn.

About Teucrium Trading LLCTeucrium Trading is an ETF provider focused with a mission to empower investors with the knowledge and tools necessary to intelligently design well-diversified portfolios. Additionally, Teucrium provides Commodity Trading Sub-Advisor services for fund sponsors interested in partnering with an experienced team to help launch and/or manage ongoing fund operations. Teucriums suite of Exchange Traded Products has revolutionized the way commodity ETFs are structured; products are widely available to investors and advisors in traditional brokerage accounts.

Media Contacts:Kendal Till/Josh GerthDukas Linden Public RelationsHashdex@DLPR.com

Important Information

The Fund does not invest directly in bitcoin, but provides price exposure to the crypto asset through bitcoin futures contracts. This gives investors the opportunity to capitalize on the cryptocurrencys growth potential, its store of value characteristics, and the prospect of a decentralized future, without the complexities of self custody.

Certain information contained herein has been obtained from third-party sources and such information has not been independently verified by Hashdex, Teucrium and Victory Capital. No representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by Hashdex, Teucrium, Victory Capital or any other person. All information regarding the Fund strategy is based on information provided either in writing or verbally, and on both a formal and informal basis, from underlying Funds and/or other resources available to Hashdex, Teucrium and Victory Capital. Hashdex, Teucrium and Victory Capital have not necessarily made any attempt to verify all such information and do not guarantee the accuracy of any such information. None of the investments discussed in this document should be viewed as an investment recommendation and are provided for illustrative purposes only.

Fund DescriptionThe Fund is a commodity pool that issues Shares that may be purchased and sold on NYSE Arca. The Funds investment objective is for changes in the Shares NAV to reflect the daily changes of the price of the Benchmark, less expenses from the Funds operations. Under normal market conditions, the Fund invests in Benchmark Component Futures Contracts and cash and cash equivalents. Because the Funds investment objective is to track the price of the Benchmark by investing in Benchmark Futures Contracts rather than bitcoin, changes in the price of the Shares will vary from changes in the spot price of bitcoin.

The Fund employs Foreside Fund Services, LLC as the Distributor for the Fund. The Distribution Services Agreement among the Distributor, the Sponsor, and the Trust calls for the Distributor to work with the Custodian in connection with the receipt and processing of orders for Creation Baskets and Redemption Baskets and the review and approval of all Fund sales literature and advertising material. The Distributors principal business address is Three Canal Plaza, Suite 100, Portland, Maine 04101. The Distributor is a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a member of FINRA.

The Fund is a series of the Teucrium Commodity Trust (the Trust). The sponsor to the Fund is Teucrium Trading, LLC (the Sponsor), which receives a management fee. The Sponsor is registered as a commodity pool operator (CPO) and a commodity trading adviser (CTA) with the Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA). Hashdex Asset Management Ltd. (Hashdex) will serve as the Funds Digital Asset Adviser and will assist the Sponsor and Marketing Agents with research and investment analysis regarding bitcoin and bitcoin markets for use in the marketing of the Fund. Hashdex will also provide the Fund with marketing services including, but not limited to, branding, the issuance of press releases, preparation of website data content, holding promotional webinars and engaging in promotional activities through social media outlets.

Toroso Investments, LLC, Tidal ETF Services LLC and Victory Capital Management Inc. (the Marketing Agents) assist the Fund and Sponsor with certain functions and duties relating to marketing, which include the following: marketing, sales strategy, and related services.

Foreside Fund Services, LLC is the distributor for the Hashdex Bitcoin Futures ETF (DEFI) Fund.

Hashdex has no responsibility for the investment or management of the Funds investment portfolio or for the overall performance or operation of the Fund.

For more information pertaining to the relationship of companies involved in the Fund please read the prospectus.

Bitcoin RisksBitcoin and bitcoin futures are a relatively new asset class and the market for bitcoin is subject to rapid changes and uncertainty. Bitcoin and bitcoin futures are subject to unique and substantial risks, including significant price volatility and lack of liquidity. The value of an investment in the ETF could decline significantly and without warning, including to zero.You should be prepared to lose your entire investment. The ETF does not invest directly in or hold bitcoin. The price and performance of bitcoin futures should be expected to differ from the current spot price of bitcoin. These differences could be significant. Bitcoin futures are subject to margin requirements, collateral requirements and other limits that may prevent the ETF from achieving its objective. Margin requirements for futures and costs associated with rolling (buying and selling) futures may have a negative impact on the funds performance and its ability to achieve its investment objective. Bitcoin is largely unregulated and bitcoin investments may be more susceptible to fraud and manipulation than more regulated investments. Bitcoin and bitcoin futures are subject to rapid price swings, including as a result of actions and statements by influencers and the media.

Futures RiskCommodities and futures investing is generally volatile and risky which may not be suitable for all investors. Futures may be affected by Backwardation: a market condition in which a futures price is lower in the distant delivery months than in the near delivery months. As a result, the fund may benefit because it would be selling more expensive contracts and buying less expensive ones on an ongoing basis; and Contango: A condition in which distant delivery prices for futures exceeds spot prices, often due to costs of storing and inuring the underlying commodity. Opposite of backwardation. As a result, the Funds total return may be lower than might otherwise be the case because it would be selling less expensive contracts and buying more expensive one.

Commodities and futures generally are volatile, and instruments whose underlying investments include commodities and futures are not suitable for all investors.

This material must be preceded or accompanied by a prospectus. Please read the prospectus carefully before investing. To obtain a current prospectus visit the link below: http://hashdex-etfs.com

The Fund is a commodity pool regulated by the Commodity Futures Trading Commission.

The Fund, which is an ETP, is not a mutual fund or any other type of investment company within the meaning of the Investment Company Act of 1940, as amended, and is not subject to regulation thereunder.

Because the Fund will invest primarily in BITCOIN futures contracts and other derivative instruments based on the price of BITCOIN, an investment in the Fund will subject the investor to the risks of the BITCOIN market, and this could result in substantial fluctuations in the price of the Funds shares.

Shares of the Fund are not insured by the Federal Deposit Insurance Corporation (FDIC), may lose value and have no bank guarantee.

Unlike mutual funds, the Fund generally will not distribute dividends to its shareholders. Investors may choose to use the Fund as a means of investing indirectly in bitcoin, and there are risks involved in such investments.

This material is not an offer or solicitation of any kind to buy or sell any securities outside of the United States of America.

Definitions:

The Benchmark is HDEFI HASHDEX U.S. BITCOIN FUTURES FUND BENCHMARK INDEX, the average of the closing settlement prices for the first to expire and second to expire Bitcoin Futures Contracts listed on the CME. The index is calculated and disseminated by ICE DATA INDICES, LLC.

Continued here:

Hashdex Celebrates Six-Month Anniversary of World's First Bitcoin ... - Yahoo Finance

ESET researchers analyzed Android and Windows clippers that can tamper with instant messages and use OCR to steal cryptocurrency funds

ESET researchers have discovered dozens of copycat Telegram and WhatsApp websites targeting mainly Android and Windows users with trojanized versions of these instant messaging apps. Most of the malicious apps we identified are clippers a type of malware that steals or modifies the contents of the clipboard. All of them are after victims cryptocurrency funds, with several targeting cryptocurrency wallets. This was the first time we have seen Android clippers focusing specifically on instant messaging. Moreover, some of these apps use optical character recognition (OCR) to recognize text from screenshots stored on the compromised devices, which is another first for Android malware.

Prior to the establishment of the App Defense Alliance, we discovered the first Android clipper on Google Play, which led to Google improving Android security by restricting system-wide clipboard operations for apps running in the background for Android versions 10 and higher. As is unfortunately shown by our latest findings, this action did not succeed in weeding the problem out completely: not only did we identify the first instant messaging clippers, we uncovered several clusters of them. The main purpose of the clippers we discovered is to intercept the victims messaging communications and replace any sent and received cryptocurrency wallet addresses with addresses belonging to the attackers. In addition to the trojanized WhatsApp and Telegram Android apps, we also found trojanized Windows versions of the same apps.

Of course, these are not the only copycat applications to go after cryptocurrencies just at the beginning of 2022, we identified threat actors focused on repackaging legitimate cryptocurrency applications that try to steal recovery phrases from their victims wallets.

Due to the different architecture of Telegram and WhatsApp, the threat actors had to choose a different approach to create trojanized versions of each of the two. Since Telegram is an open-source app, altering its code while keeping the apps messaging functionality intact is relatively straightforward. On the other hand, WhatsApps source code is not publicly available, which means that before repackaging the application with malicious code, the threat actors first had to perform an in-depth analysis of the apps functionality to identify the specific places to be modified.

Despite serving the same general purpose, the trojanized versions of these apps contain various additional functionalities. For better ease of analysis and explanation, we split the apps into several clusters based on those functionalities; in this blogpost, we will describe four clusters of Android clippers and two clusters of malicious Windows apps. We will not go into the threat actors behind the apps, as there are several of them.

Before briefly describing those app clusters though, what is a clipper and why would cyberthieves use one? Loosely, in malware circles, a clipper is a piece of malicious code that copies or modifies content in a systems clipboard. Clippers are thus attractive to cybercriminals interested in stealing cryptocurrency because addresses of online cryptocurrency wallets are composed of long strings of characters, and instead of typing them, users tend to copy and paste the addresses using the clipboard. A clipper can take advantage of this by intercepting the content of the clipboard and surreptitiously replacing any cryptocurrency wallet addresses there with one the thieves can access.

Cluster 1 of the Android clippers also constitutes the first instance of Android malware using OCR to read text from screenshots and photos stored on the victims device. OCR is deployed in order to find and steal a seed phrase, which is a mnemonic code comprised of a series of words used for recovering cryptocurrency wallets. Once the malicious actors get hold of a seed phrase, they are free to steal all the cryptocurrency directly from the associated wallet.

Compared to Cluster 1s use of advanced technology, Cluster 2 is very straightforward. This malware simply switches the victims cryptocurrency wallet address for the attackers address in chat communication, with the addresses either being hardcoded or dynamically retrieved from the attackers server. This is the only Android cluster where we identified trojanized WhatsApp samples in addition to Telegram.

Cluster 3 monitors Telegram communication for certain keywords related to cryptocurrencies. Once such a keyword is recognized, the malware sends the full message to the attacker server.

Lastly, the Android clippers in Cluster 4 not only switch the victims wallet address, but they also exfiltrate internal Telegram data and basic device information.

Regarding the Windows malware, there was a cluster of Telegram cryptocurrency clippers whose members simply intercept and modify Telegram messages in order to switch cryptocurrency wallet addresses, just like the second cluster of Android clippers. The difference is in the source code of the Windows version of Telegram, which required additional analysis on the part of the malicious actors, to be able to implement inputting their own wallet address.

In a departure from the established pattern, the second Windows cluster is not comprised of clippers, but of remote access trojans (RATs) that enable full control of the victims system. This way, the RATs are able to steal cryptocurrency wallets without intercepting the application flow.

Based on the language used in the copycat applications, it seems that the operators behind them mainly target Chinese-speaking users.

Because both Telegram and WhatsApp have been blocked in China for several years now, with Telegram being blocked since 2015 and WhatsApp since 2017, people who wish to use these services have to resort to indirect means of obtaining them. Unsurprisingly, this constitutes a ripe opportunity for cybercriminals to abuse the situation.

In the case of the attacks described in this blogpost, the threat actors first set up Google Ads leading to fraudulent YouTube channels, which then redirect the unfortunate viewers to copycat Telegram and WhatsApp websites, as illustrated in Figure 1. On top of that, one particular Telegram group also advertised a malicious version of the app that claimed to have a free proxy service outside of China (see Figure 2). As we discovered these fraudulent ads and related YouTube channels, we reported them to Google, which promptly shuttered them all.

Figure 1. Distribution diagram

Figure 2. Trojanized Telegram app offered in Telegram group

At first glance, it might seem that the way these copycat apps are distributed is quite convoluted. However, it is possible that with Telegram, WhatsApp, and the Google Play app all being blocked in China, Android users there are used to jumping through several hoops if they want to obtain officially unavailable apps. Cybercriminals are aware of this and try to ensnare their victims right from the get-go when the victim searches Google for either a WhatsApp or a Telegram app to download. The threat actors purchased Google Ads (see Figure 3) that redirect to YouTube, which both helps the attackers to get to the top of search results, and also avoids getting their fake websites flagged as scams, since the ads link to a legitimate service that Google Ads presumably considers very trustworthy.

Figure 3. Paid advertisement when searching for Chinese Telegram

The links to the copycat websites can usually be found in the About section of the YouTube channels. An example of such a description can be seen in a very rough translation in Figure 4.

Figure 4. Fraudulent WhatsApp YouTube channel that points to a fake website

During our research, we found hundreds of YouTube channels pointing to dozens of counterfeit Telegram and WhatsApp websites some can be seen in Figure 5. These sites impersonate legitimate services (see Figure 6) and provide both desktop and mobile versions of the app for download. None of the analyzed apps were available on the Google Play store.

Figure 5. Fake channels available on YouTube

Figure 6. Websites mimicking Telegram and WhatsApp

We found various types of malicious code being repackaged with legitimate Telegram and WhatsApp apps. While the analyzed apps have sprung up at more or less at the same time using a very similar pattern, it seems that they were not all developed by the same threat actor. Besides most of the malicious apps being able to replace cryptocurrency addresses in Telegram and WhatsApp communications, there are no indications of further connections between them.

While the fake websites offer download links for all operating systems where Telegram and WhatsApp are available, all Linux and macOS links, as well as most iOS links, redirect to the services official websites. In the case of the few iOS links that do lead to fraudulent websites, the apps were no longer available for download at the time of our analysis. Windows and Android users thus constitute the main targets of the attacks.

The main purpose of the trojanized Android apps is to intercept victims chat messages, and either swap any cryptocurrency wallet addresses for those belonging to the attackers, or exfiltrate sensitive information that would allow attackers to steal victims cryptocurrency funds. This is the first time we have seen clippers that specifically target instant messaging.

To be able to modify messages, the threat actors had to thoroughly analyze the original code of both services apps. Since Telegram is an open-source application, the cybercriminals only had to insert their own malicious code into an existing version and compile it; in the case of WhatsApp, however, the binary had to be modified directly and repackaged to add the malicious functionality.

We observed that when replacing wallet addresses, the trojanized apps for Telegram behave differently from those for WhatsApp. A victim using a malicious Telegram app will keep seeing the original address until the application is restarted, whereupon the displayed address will be the one that belongs to the attacker. In contrast, the victims own address will be seen in sent messages if using a trojanized WhatsApp, while the message recipient will receive the attacker address. This is shown in Figure 7.

Figure 7. Malicious WhatsApp (left) replaced sent wallet address in message for recipient (right)

Cluster 1 is the most intriguing, since its members constitute the first known instance of OCR abuse in any Android malware. In this case, trojanized Telegram apps use a legitimate machine learning plugin called ML Kit on Android to search the victims device for images with .jpg and .png extensions, the most common screenshot formats on Android. The malware looks for screenshots of cryptocurrency wallet recovery phrases (also known as mnemonics) that the victim might have kept on the device as a backup.

Malicious functionality that iterates through files on the device and runs them through the OCR recognizeText function can be seen in Figure 8.

Figure 8. Malicious code responsible for retrieving images and pictures from the device and OCRing them

As shown in Figure 9, if the recognizeText finds the string mnemonic or (mnemonic in Chinese) in the text extracted from the image, it sends both the text and the image to the C&C server. In select cases we have seen the list of keywords expanded to eleven entries, specifically , Mnemonic, memorizing, Memorizing, recovery phrase, Recovery Phrase, wallet, METAMASKA, Phrase, secret, Recovery phrase.

Figure 9. Image and the recognized text within are sent to the attackers C&C server

In contrast with Cluster 1, which employs advanced methods to aid in its malicious activities, the second cluster of Android clippers is the least complicated among the four: these malicious apps simply swap wallet addresses, without further malicious functionality. The trojans in Cluster 2 mostly replace addresses for bitcoin, Ethereum, and TRON coin wallets, with a few of them also being able to switch wallets for Monero and Binance. The way the messages are intercepted and modified can be seen in Figures 10 and11.

Figure 10. Telegram message interception by malicious code

Figure 11. Malicious code responsible for replacing wallet addresses in Telegram messages

Cluster 2 is the only Android cluster where we found not only Telegram, but also WhatsApp samples. Both types of trojanized apps either have a hardcoded list of attacker wallet addresses (as seen in Figure 11) or dynamically request them from a C&C server, as seen in Figure 12.

Figure 12. Bitcoin, Ethereum and TRON wallet addresses received from C&C server

This cluster monitors Telegram communication for particular keywords in Chinese, such as mnemonic, bank, address, account and Yuan. Some of the keywords are hardcoded, while others are received from the C&C server, meaning they could be changed or expanded at any time. Once a Cluster 3 clipper recognizes a keyword, the whole message, along with the username, group or channel name, is sent to the C&C server, as can be seen in Figure 13.

Figure 13. Clipper exfiltrates a message if keyword was detected

The last identified cluster of Android clippers, Cluster 4, can not only replace cryptocurrency addresses, but also exfiltrate the victims Telegram data by obtaining their configuration files, phone number, device information, pictures, Telegram username, and the list of installed apps. Logging into these malicious versions of the Telegram app means that all the personal internal data stored within, such as messages, contacts, and configuration files, become visible to the threat actors.

To demonstrate, lets focus on this clusters most intrusive trojanized app: this malware combs the internal Telegram storage for all files smaller than 5.2MB and without a.jpg extension and steals them. Additionally, it can also exfiltrate basic information about the device, the list of installed applications, and phone numbers. All the stolen files are archived in an info.zip file, which is then exfiltrated to the C&C. All malware within this cluster uses the same ZIP filename, suggesting a common author or codebase. The list of the files exfiltrated from our analysis device can be seen in Figure 14.

Figure 14. Private Telegram user files that are exfiltrated to the C&C server

As opposed to the trojanized Android apps we discovered, the Windows versions consist not only of clippers, but also of remote access trojans. While the clippers focus mainly on cryptostealing, the RATs are capable of a wider variety of malicious actions such as taking screenshots and deleting files. Some of them can also manipulate the clipboard, which would allow them to steal cryptocurrency wallets. The Windows apps were found at the same domains as the Android versions.

We discovered two samples of Windows cryptocurrency clippers. Just like Cluster 2 of the Android clippers, these intercept and modify messages sent via a trojanized Telegram client. They use the same wallet addresses as the Android cluster, meaning that they most probably come from the same threat actor.

The first of the two clipper samples is distributed as a portable executable with all the necessary dependencies and information embedded directly in its binary. This way, no installation takes place after the malicious program is executed, keeping the victim unaware that something is amiss. The malware intercepts not only messages between users, but also all saved messages, channels, and groups.

Similar to the related Android Cluster 2, the code responsible for modifying the messages uses hardcoded patterns to identify the cryptocurrency addresses inside messages. These are highlighted in yellow in Figure 15. If found, the code replaces the original addresses with the corresponding addresses belonging to the attacker (highlighted in red). This clipper focuses on bitcoin, Ethereum, and TRON.

Figure 15. Decompiled code with hardcoded patterns and wallet addresses

The second clipper uses a standard installation process, the same as the legitimate Telegram installer. However, even if the process outwardly appears innocent, the installed executable is far from benign. Compared to legitimate Telegram, it contains two additional files encrypted using a single byte XOR cipher with the key 0xff. The files contain a C&C server address and an agent ID used to communicate with the C&C.

This time, no hardcoded addresses are used. Instead, the clipper obtains both the message patterns and the corresponding cryptocurrency wallet addresses from the C&C via an HTTP POST request. The communication with the C&C works in the same way as shown in Cluster 2 of Android clippers (Figure 12).

In addition to swapping cryptocurrency wallet addresses, this clipper can also steal the victims phone number and Telegram credentials. When a person compromised by this trojanized app tries to log in on a new device, they are requested to put in the login code sent to their Telegram account. Once the code arrives, the notification is automatically intercepted by the malware, and the verification code along with the optional password end up in the hands of the threat actors.

Similar to the first Windows clipper sample, any message sent using this malicious version of Telegram containing bitcoin, Ethereum, or TRON cryptocurrency wallet addresses will be modified to replace the addresses for those provided by the attacker (see Figure 16). However, unlike the Android version, the victims will not be able to discover that their messages have been tampered with without comparing chat histories: even after restarting the app, the sender will always see the original version of the message since the relevant part of the code is executed again on application start; the recipient, on the other hand, will only receive the attacker wallet.

Figure 16. Legitimate Telegram client (left) and trojanized one (right)

The rest of the malicious apps we discovered are distributed in the form of Telegram and WhatsApp installers bundled with remote access trojans. Once the RATs have gained access to the system, neither Telegram nor WhatsApp need to run for the RATs to operate. In the observed samples, malicious code was mostly executed indirectly by using DLL Side-loading, thus allowing the attackers to hide their actions behind the execution of legitimate applications. These RATs differ significantly from the clippers, since they do not explicitly focus on stealing cryptocurrency wallets. Instead, they contain several modules with a wide range of functionalities, allowing the threat actors to perform actions such as stealing clipboard data, logging keystrokes, querying Windows Registry, capturing the screen, obtaining system information, and performing file operations. Each RAT we discovered used a slightly different combination of modules.

With one exception, all the remote access trojans we analyzed were based on the notorious Gh0st RAT, malware that is frequently used by cybercriminals due to its public availability. As an interesting aside, Gh0st RATs code uses a special packet flag set to Gh0st by default, a value that threat actors like to customize. In changing the flag, they can use something that makes more sense for their version of the malware, or they can use no flags at all. They can also, as in one case spotted during our analysis, reveal their deepest desires by changing the flag to lambo (as in, the nickname for the Italian luxury car brand; see Figure 17).

Figure 17. Hex-rays decompiled code with flag lambo

The only RAT among the group that wasnt completely based on Gh0st RAT used the code from the HP-socket library to communicate with its C&C server. Compared to the other RATs, this one uses significantly more anti-analysis runtime checks during its execution chain. While its source code certainly differs from the rest of the trojans discovered, its functionality is basically identical: it is capable of performing file operations, obtaining system information and the list of running programs, deleting profiles of commonly used browsers, downloading and running a potentially malicious file, and so on. We suspect that this is a custom build that could be inspired by the Gh0st implementation.

Install apps only from trustworthy and reliable sources such as the Google Play store.

If you are sharing cryptocurrency wallet addresses via the Android Telegram app, double check whether the address you sent matches the address that is displayed after restarting the application. If not, warn the recipient not to use the address and try to remove the message. Unfortunately, this technique cannot be applied to trojanized WhatsApp for Android.

Be aware that the previous tip does not apply in the case of trojanized Telegram; since the recipient of the wallet address only sees the attacker wallet, they will be unable to tell whether the address is genuine.

Do not store unencrypted pictures or screenshots containing sensitive information, such as mnemonic phrases, passwords, and private keys, on your device.

If you believe you have a trojanized version of Telegram or WhatsApp, manually remove it from your device and download the app either from Google Play, or directly from the legitimate website.

In case you are not sure whether your Telegram installer is legitimate, check if the files digital signature is valid and issued to Telegram FZ-LLC.

If you suspect that your Telegram app is malicious, we advise that you use a security solution to detect the threat and remove it for you. Even if you do not own such software, you can still use the free ESET Online Scanner.

The only official version of WhatsApp for Windows is currently available in the Microsoft store. If you installed the application from any other source, we advise you to delete it and then to scan your device.

During our research of trojanized Telegram and WhatsApp apps distributed through copycat websites, we discovered the first instances of Android clippers that intercept instant messages and swap victims cryptocurrency wallet addresses for the attackers address. Furthermore, some of the clippers abused OCR to extract mnemonic phrases out of images saved on the victims devices, a malicious use of the screen reading technology that we saw for the first time.

We also found Windows versions of the wallet-switching clippers, as well as Telegram and WhatsApp installers for Windows bundled with remote access trojans. Through their various modules, the RATs enable the attackers control over the victims machines.

This table was built using version 12 of the MITRE ATT&CK mobile techniques.

This table was built using version 12 of the MITRE ATT&CK enterprise techniques.

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Notsoprivate messaging: Trojanized WhatsApp and Telegram apps go after cryptocurrency wallets - We Live Security

(Kitco News) - The U.S. is the undisputed leader when it comes to the number of Bitcoin automated teller machines (ATMs), with 32,591 machines installed throughout the country, but a recent study conducted by Tradingbrowser indicates that cryptocurrency and Bitcoin ATM adoption is highest in countries that lack a developed financial infrastructure.

Countries that have high rates of unbanked populations also have higher rates of cryptocurrency adoption due to high cash payments and Bitcoin ATMs, Daniel Larsson, senior editor at Tradingbrowser, wrote. If the projection of installed Bitcoin ATMs continues, these unbanked countries could see exponential growth in adoption.

A total of 14 countries were included in the study, which gathered information related to the number of Bitcoin ATMs installed, cash payments, unbaked population, cryptocurrency ownership, cryptocurrency ownership percentage, and the total population in order to compare adoption rates.

It all boils down to how the population is connected to cash payments and bank accounts, Larsson said.

The countries that were found to have the highest rate of crypto adoption had the highest rates of unbanked populations and were also the most promising locations to install ATMs and promote adoption.

Countries with a high rate of cash payments and unbanked population. Source: Tradingbrowser

Out of the countries surveyed, Mexico had the largest percentage of its population unbanked at 60%, and it also ranks third in terms of the number of Bitcoin ATMs installed, with 46. Only Romania and Hong Kong currently host more ATMs than Mexico. A total of 3.4% of Mexican citizens currently own cryptocurrency, which is nearly triple the adoption rate of more advanced nations like Norway and Denmark.

In South Africa, 31% of the population is unbanked, the country has 21 Bitcoin ATMs, and 10% of its population owns some form of cryptocurrency.

When those numbers are compared to countries whose unbanked population is smaller, the differences become clear.

Countries with a low rate of cash payments and unbanked population. Source: Tradingbrowser

The differences are especially stark in nordic countries like Sweden, Denmark, and Finland, which have the lowest percentage of cash payments (1-2%) while nearly 100% of their populations are connected to the traditional banking system.

Countries where cash payments range from 1-2% and unbanked populations from 0% to 1% including Sweden, Denmark, Norway, and New Zealand have no Bitcoin ATMs installed. These countries also have a much lower adoption rate, Larsson observed.

We can draw many conclusions based on these findings but the most significant driver for the high adoption rates in highly unbanked nations is the number of Bitcoin ATMs that have been installed, Larsson said. In many cases, cryptocurrency is proving to be a viable option where Bitcoin ATMs have been installed.

In areas with no established banking infrastructure, the ability to use ATMs to trade cryptocurrency for cash, or from cash to cryptocurrency, is a feature that is impossible without access to traditional banking or credit cards.

Based on these findings, Larsson speculates that the reason crypto ownership is lower in countries with an established financial infrastructure has to do with the fact that there is no need for the population in these countries to use cryptocurrencies.

The one exception in the study was Hong Kong, which has a highly developed financial system and is considered to be a financial hub and testing ground for Chinese policymakers. Hong Kong ranked second overall in the number of Bitcoin ATMs installed, with 147, while Romania came in first with 156.

The high rate of cash payments and Bitcoin ATMs in developing countries shows a growth of alternative financing solutions such as Bitcoin which provides a fast, secure, and efficient way to transact outside the traditional banking system, Larsson said. Its safe to say that more Bitcoin ATMs are likely going to be installed in highly unbanked countries as the positive trend toward cryptocurrencies continues.

While Bitcoin ATMs are not solely responsible for driving adoption in unbanked regions of the world, there is clearly a correlation, Larsson said. The study shows that cash and Bitcoin ATMs are the two main factors driving the adoption of cryptocurrencies right now and its obvious which parts of the world are in the drivers seat.

It remains to be seen how the trend will progress moving forward, especially amid the spreading banking contagion that is now hitting banks in Europe, including Credit Suisse.

Only time will tell whether the trend of these ATMs and the adoption of cryptocurrency will continue in countries where cash is currently king, Larsson said. Until then, we can not look past the obvious which is that right now, unbanked countries are beating cashless countries in the race to full cryptocurrency adoption.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Crypto and Bitcoin ATM adoption is highest in countries with large ... - Kitco NEWS