Bitcoin (BITCOMP) continued to tread water in the $34-36,000 range last week as Ethereum (ETH-X) began a climb back from late-June lows. 

Unsplash

Bitcoin began the week around $34,500 before reaching above $36,000 mid-week. A high of $35,842 late on 4 July capped a week of swings for the cryptoasset, which has now fallen back to trade around $34,200 this morning.

Ethereum likewise suffered volatility but with a clearer upward trajectory in the past seven days. It began the week trading in the $1,800 range, but still well below its recent peaks in May above $4,000. ETH is currently trading back above $2,200 marking a positive week for the cryptoasset. 

JP Morgan bullish on Ethereum upgrades catalyzing ‘$40bn’ staking industry

Last week JP Morgan (JPM) claimed that the impending upgrades to the Ethereum network could result in $40 billion of staking rewards by 2025. 

In a recently released report, it asserted that as blockchains running more energy efficient networks become more popular, and staking becomes more common, it will gain traction as a source of revenue for both retail and institutional investors.

The boom will largely be driven by the switch from proof-of-work to proof-of-stake, which is set to be implemented in the Ethereum 2.0 launch next year. Proof-of-work has been criticized in the past for its energy-demanding processes, which validates all the transactions on the network. However, proof-of-stake will deliver scalability and efficiency within the network, and allow investors to lock away their funds on the blockchain in return for financial rewards.

JP Morgan outlined that staking currently generates c.$9bn for the crypto industry each year. However, the upgrade to Ethereum 2.0 and the proof-of-stake will catalyze staking payouts to increase initially to $20bn following the launch, and reach $40bn by 2025. It also made the point that as the volatility of cryptoassets decline, earning positive returns will further help the market become more mainstream.

New German law could see $415bn investment in crypto

A new law has been enacted in Germany allowing “special funds” (Spezialfond) to invest up to 20% of their assets in crypto. 

The Fund Location Act, which came into effect last Thursday could in theory see as much as $415bn flow into cryptoasset investment, provided every Spezialfond allocated their full 20%.

Whilst this theoretical sum is unlikely to flow into cryptoasset investment in its entirety, the legal enactment is big news for the industry, and a vote of confidence for cryptoassets and their potential. 

Spezialfonds are the leading institutional investment vehicles in Germany. Any sizable allocation into crypto would have a large impact, thanks to Germany’s status as the Eurozone’s largest economy. 

Visa continues to build out its crypto team as it moves to support more digital currencies

Payments giant Visa (V) has added five new faces to its ever-growing crypto team. A mix of new hires and placements has seen key roles filled as it looks to grow its offering. Visa’s head of crypto has also highlighted further job openings via Twitter. 

The new hires confirm Visa’s goal of offering similar services for crypto as it does for fiat payments, such as enabling companies and consumers alike to access their assets and move them around. 

It claims to already be working with more than 25 digital currency wallets, enabling users to spend crypto at 61 million merchants globally.

The firm also has plans to expand support for digital currencies in the future, such as stablecoins and central bank digital currencies. 

Soros Fund Management reportedly ‘trading bitcoin’

George Soros’ investment fund is reportedly trading bitcoin, according to financial news site TheStreet. 

The move comes as part of a broader exploration of digital assets, with the firm said to be in discussion to acquire blockchain-focused firms.

Chief investment officer Dawn Fitzpatrick has apparently been exploring cryptoassets for some time. This could well signal a green light for further crypto ventures. 

Soros Fund Management was one of several firms funding the $200 million New York Digital Investment Group, with other backers including Morgan Stanley and MassMutual. 

Whilst it is unclear how the fund will trade bitcoin, Fitzpatrick has previously commented positively about cryptoassets, speaking to Bloomberg in March that they are at an “inflection point” that could lead to greater adoption in the future.