This week saw significant developments in the sector that moved the industry toward greater transparency and main street acceptance. Two U.S. bitcoin-linked exchange-traded funds, Proshares Bitcoin Strategy ETF (BITO) and VanEck Bitcoin Strategy ETF (XBTF) launched, both funds track CME bitcoin futures, or contracts, speculating on the future price of bitcoin. VanEck stated that a ‘physically backed’ bitcoin ETF remains a future goal.
It’s not just Wall Street in the crypto game. An historic deal announced November 17 will rename Los Angeles’ Staples Center to Crypto.com Arena. The deal worth $700 million, spans 20 years and is touted as one of the largest naming deals in sports history. Crypto.com Arena will make its debut on Christmas Day. Marrying cryptocurrency to high-visibility commercial real estate may prove to be a bellwether in the U.S. toward increased cryptocurrency transactions within the sector.
Chief Executive Officer, Barry Lipscombe of Contracoin, a global real estate blockchain platform and cryptocurrency, expressed confidence in the sector. “I am very excited to see this business activity and what it means for our firm. I believe that we offer a unique value proposition for investors to pay for up to 100% of a real estate property using our Contracoin token. We connect crypto buyers with properties to create opportunities for U.S. investors world-wide.”
Against this backdrop of buoyant investing interest is the evolving regulatory environment, as legislation within the Infrastructure Bill takes effect in January 2024. Experts say it remains to be seen how this ultimately impacts volatility and performance of the DeFi sector.
