Superstate, a blockchain-based asset management firm, has unveiled a new tokenized fund designed to generate yield through a popular “cash and carry” investment strategy. This innovative fund leverages the USCC token, an ERC-20 token on the Ethereum blockchain, to offer investors a unique way to profit from the cryptocurrency market.

USCC Token and Carry Trade Strategy

The USCC token aims to generate yield by engaging in a delta-neutral carry trade. This involves buying spot Bitcoin and Ether while simultaneously taking equivalent short positions in BTC and ETH futures. This strategy allows the fund to profit from the market without making directional bets on price changes. Hedge funds commonly use this approach by purchasing spot Bitcoin exchange-traded fund shares and selling Bitcoin derivatives on the Chicago Mercantile Exchange.

Innovation in Crypto Tokenization

The launch of the USCC token is part of a broader trend in the cryptocurrency industry towards tokenizing traditional investment strategies. Tokenization puts conventional investments such as bonds, funds, and credit onto blockchain platforms, making them more accessible and efficient. Another example of this trend is Ethena Labs’ “synthetic dollar” USDE token, which has attracted over $3 billion in deposits in the first half of the year by providing yield through the carry trade.

Differences Between Superstate and Ethena

Despite similarities in their underlying strategies, Superstate and Ethena Labs have structured their products differently. According to Superstate CEO Robert Leshner, Ethena’s token generates yield from perpetual futures’ funding rates, passing the income to those who lock-up or stake the token. In contrast, Superstate sells futures with specific maturity dates, offering more predictable returns and distributing the yield to all token holders. The USCC token targets qualified, whitelisted investors to comply with U.S. securities laws and operates as a series of a Delaware Trust, ensuring it is a bankruptcy-remote entity from Superstate.

“USCC is a highly-regulated product, with lower risks but offering lower returns,” Leshner noted.

Operational Partners and Security Measures

To execute the futures trades for the fund, Superstate has partnered with prime brokerage companies, ensuring seamless and secure transactions. The spot assets are held with custodial partner Anchorage Digital, providing additional security and trust for investors. This robust infrastructure highlights Superstate’s commitment to delivering a reliable and transparent investment product.

Previous Success and Market Reception

Superstate’s latest offering builds on the success of its first tokenized fund, which holds short-term U.S. Treasury bills. This initial fund has gathered nearly $80 million in assets since its debut earlier this year, according to rwa.xyz data. The positive reception and substantial asset accumulation demonstrate the market’s growing interest in tokenized investment products.

Future Prospects and Market Impact

The introduction of the USCC token represents a significant step forward in the integration of traditional investment strategies with blockchain technology. By providing a regulated and secure platform for investors to engage in the carry trade, Superstate is poised to attract a broad range of institutional and individual investors. This move could further legitimize the cryptocurrency market and encourage more traditional investors to explore digital assets.

Conclusion

Superstate’s launch of the new tokenized fund for Bitcoin and Ether is a notable development in the evolving landscape of blockchain-based investments. The innovative use of the carry trade strategy, combined with the security and regulation of the USCC token, offers investors a unique opportunity to profit from the cryptocurrency market. As the industry continues to grow, Superstate’s commitment to transparency and compliance positions it well to lead the way in tokenized asset management.

Featured Image: Freepik

Please See Disclaimer

With President Joe Biden stepping aside from the 2024 presidential race, Democrats have a unique opportunity to reset their crypto policy and potentially win over a significant portion of the crypto electorate. Analysts believe that Vice President Kamala Harris and other Democratic leaders can embrace this shift, challenging former President Donald Trump’s stronghold on crypto voters.

Biden Administration’s Stance on Crypto

For years, the Biden administration has maintained a strict stance on cryptocurrency, focusing on regulation by enforcement rather than crafting tailored regulations. Jake Chervinsky, a crypto lawyer and chief legal officer at Variant Fund, highlighted this issue on social media, stating, “The Biden administration has been extremely hostile toward crypto, refusing to craft reasonable regulations tailored to the technology and instead trying to destroy the industry.”

Chervinsky sees Biden’s exit as a critical moment for the Democratic Party to pivot. “With President Biden stepping aside, the Democratic Party has a huge opportunity to win back a big share of the crypto vote. This should be a top priority for the new nominee in an election that will be won on the margins in states where crypto is a live issue.”

The Republican Crypto Platform

Donald Trump’s anti-crypto platform has focused on ending what he calls “Joe Biden’s war on crypto.” This stance has energized crypto industry donors, who have contributed millions to Trump’s campaign. Trump’s promise to keep American innovation at home and reduce regulatory hurdles has resonated with many in the crypto community.

A Democratic Strategy for Crypto

Chervinsky laid out a five-point plan for a Democratic nominee to counter Trump’s pro-crypto platform and attract crypto voters:

1. Outreach to the Crypto Industry: Engaging with industry leaders to understand their needs and concerns.
2. Potential Appointments: Floating a list of potential appointments to the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) who are favorable to crypto.
3. Promoting U.S. Innovation: Emphasizing the importance of keeping crypto innovation within the U.S. rather than driving it overseas.
4. Reversing SEC’s Approach: Shifting from the SEC’s enforcement-first approach to a more balanced regulatory framework.
5. Releasing Crypto Policy Proposals: Proposing policies that protect consumers while promoting innovation in the crypto space.

Chervinsky noted that a significant portion of the crypto electorate leans Democrat or independent, and many are not single-issue voters. This demographic could be pivotal in the upcoming election if the Democratic Party can effectively reset its crypto policy.

Winning Back the Crypto Vote

Chervinsky argued that a new Democratic nominee could “flip the script” and attract a meaningful number of crypto voters. While some crypto enthusiasts have become staunch Republicans, many remain open to supporting a pro-crypto Democratic candidate. “If the Democratic Party is serious about winning this election, the new nominee must seize this opportunity,” Chervinsky emphasized.

Potential Implications

The reset in crypto policy could significantly impact both the Democratic Party’s prospects in the 2024 election and the broader crypto industry. By adopting a more favorable stance on crypto, Democrats could tap into a growing voter base and potentially secure crucial votes in swing states. Additionally, a more balanced regulatory approach could foster innovation and growth within the U.S. crypto market, preventing talent and investment from moving abroad.

Conclusion

President Biden’s decision to withdraw from the 2024 race presents a strategic opportunity for Democrats to reset their crypto policy and attract a significant portion of the crypto electorate. By adopting a pro-crypto stance, the Democratic Party can challenge Trump’s dominance in this area and appeal to voters seeking innovation and reasonable regulation. As the 2024 election approaches, how Democrats address the crypto issue could play a pivotal role in determining the outcome.

Featured Image: Wikipedia

Please See Disclaimer

With President Joe Biden stepping aside from the 2024 presidential race, Democrats have a unique opportunity to reset their crypto policy and potentially win over a significant portion of the crypto electorate. Analysts believe that Vice President Kamala Harris and other Democratic leaders can embrace this shift, challenging former President Donald Trump’s stronghold on crypto voters.

Biden Administration’s Stance on Crypto

For years, the Biden administration has maintained a strict stance on cryptocurrency, focusing on regulation by enforcement rather than crafting tailored regulations. Jake Chervinsky, a crypto lawyer and chief legal officer at Variant Fund, highlighted this issue on social media, stating, “The Biden administration has been extremely hostile toward crypto, refusing to craft reasonable regulations tailored to the technology and instead trying to destroy the industry.”

Chervinsky sees Biden’s exit as a critical moment for the Democratic Party to pivot. “With President Biden stepping aside, the Democratic Party has a huge opportunity to win back a big share of the crypto vote. This should be a top priority for the new nominee in an election that will be won on the margins in states where crypto is a live issue.”

The Republican Crypto Platform

Donald Trump’s anti-crypto platform has focused on ending what he calls “Joe Biden’s war on crypto.” This stance has energized crypto industry donors, who have contributed millions to Trump’s campaign. Trump’s promise to keep American innovation at home and reduce regulatory hurdles has resonated with many in the crypto community.

A Democratic Strategy for Crypto

Chervinsky laid out a five-point plan for a Democratic nominee to counter Trump’s pro-crypto platform and attract crypto voters:

1. Outreach to the Crypto Industry: Engaging with industry leaders to understand their needs and concerns.
2. Potential Appointments: Floating a list of potential appointments to the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) who are favorable to crypto.
3. Promoting U.S. Innovation: Emphasizing the importance of keeping crypto innovation within the U.S. rather than driving it overseas.
4. Reversing SEC’s Approach: Shifting from the SEC’s enforcement-first approach to a more balanced regulatory framework.
5. Releasing Crypto Policy Proposals: Proposing policies that protect consumers while promoting innovation in the crypto space.

Chervinsky noted that a significant portion of the crypto electorate leans Democrat or independent, and many are not single-issue voters. This demographic could be pivotal in the upcoming election if the Democratic Party can effectively reset its crypto policy.

Winning Back the Crypto Vote

Chervinsky argued that a new Democratic nominee could “flip the script” and attract a meaningful number of crypto voters. While some crypto enthusiasts have become staunch Republicans, many remain open to supporting a pro-crypto Democratic candidate. “If the Democratic Party is serious about winning this election, the new nominee must seize this opportunity,” Chervinsky emphasized.

Potential Implications

The reset in crypto policy could significantly impact both the Democratic Party’s prospects in the 2024 election and the broader crypto industry. By adopting a more favorable stance on crypto, Democrats could tap into a growing voter base and potentially secure crucial votes in swing states. Additionally, a more balanced regulatory approach could foster innovation and growth within the U.S. crypto market, preventing talent and investment from moving abroad.

Conclusion

President Biden’s decision to withdraw from the 2024 race presents a strategic opportunity for Democrats to reset their crypto policy and attract a significant portion of the crypto electorate. By adopting a pro-crypto stance, the Democratic Party can challenge Trump’s dominance in this area and appeal to voters seeking innovation and reasonable regulation. As the 2024 election approaches, how Democrats address the crypto issue could play a pivotal role in determining the outcome.

Featured Image: Wikipedia

Please See Disclaimer

Bitdeer Technologies (NASDAQ:BTDR), a prominent bitcoin miner, has recently been identified as a potential takeover target, according to a research report by broker Benchmark. The increasing interest from artificial intelligence and high-performance computing firms in the energy assets of crypto miners has significantly bolstered Bitdeer’s value.

Rising Valuation and Market Interest

Benchmark raised its price target for Bitdeer to $16 from $13, reiterating its buy rating on the shares. As of premarket trading, Bitdeer shares were valued at $11.10. The stock has seen a remarkable increase, more than doubling in the last two months. This surge is attributed to Bitdeer’s recognition as one of the bitcoin miners with substantial existing and planned power capacity, which can be leveraged for both crypto mining and powering AI and HPC projects.

Increased Takeover Activity in the Sector

The bitcoin mining sector has witnessed a surge in takeover activity. Core Scientific (NASDAQ:CORZ), another key player, recently rejected a $5.75 per share offer from cloud computing firm CoreWeave, stating that the offer significantly undervalued the company. This indicates a growing interest and competition among firms in acquiring valuable crypto mining assets.

Bitdeer is currently engaged in preliminary discussions with several customers in the AI/HPC space. These talks are expected to gain momentum once management completes site analysis to determine the optimal use of their resources. This strategic move positions Bitdeer as an attractive acquisition target for companies looking to expand their AI and HPC capabilities.

Broker’s Positive Outlook and Financial Projections

Benchmark has adjusted its estimates for Bitdeer, reflecting the anticipated contributions from its ASIC chip and mining rig initiatives. The broker increased its full-year 2025 revenue estimate to $617.5 million from $497 million, highlighting the company’s potential for significant growth. This optimistic outlook is based on the increasing demand for energy assets from AI and HPC firms, which can provide alternative and more lucrative uses for bitcoin mining sites.

Sector Re-Rating and Market Trends

The valuation multiples of bitcoin mining equities have seen a notable increase in recent months. Core Scientific’s deal with AI hyperscaler CoreWeave has played a significant role in driving the re-rating of the sector. This trend underscores the growing recognition of the potential synergies between bitcoin mining and AI/HPC applications.

Wall Street giant JPMorgan (NYSE:JPM) recently commented on this market trend, noting that the rally in the bitcoin mining sector suggests that the market perceives AI and HPC opportunities as viable and more accretive use cases for bitcoin mining sites. This perspective aligns with the broader industry sentiment that energy-intensive crypto mining operations can be repurposed to support the growing demands of AI and HPC applications.

Conclusion

Bitdeer Technologies is emerging as a potential takeover target amid increasing interest from AI and HPC firms in the energy assets of crypto miners. With Benchmark raising its price target and positive market trends supporting the sector’s re-rating, Bitdeer is well-positioned for significant growth and strategic acquisition opportunities. The company’s proactive discussions with AI/HPC customers and ongoing site analysis further enhance its appeal as an acquisition target.

As the bitcoin mining sector continues to evolve, the integration of AI and HPC applications offers promising alternative uses for mining resources. This dynamic market environment presents new opportunities for companies like Bitdeer to leverage their capabilities and drive future growth. Investors and industry stakeholders will be closely watching how these developments unfold and shape the future of the bitcoin mining and AI/HPC sectors.

Featured Image: Freepik 

Please See Disclaimer

Bitdeer Technologies (NASDAQ:BTDR), a prominent bitcoin miner, has recently been identified as a potential takeover target, according to a research report by broker Benchmark. The increasing interest from artificial intelligence and high-performance computing firms in the energy assets of crypto miners has significantly bolstered Bitdeer’s value.

Rising Valuation and Market Interest

Benchmark raised its price target for Bitdeer to $16 from $13, reiterating its buy rating on the shares. As of premarket trading, Bitdeer shares were valued at $11.10. The stock has seen a remarkable increase, more than doubling in the last two months. This surge is attributed to Bitdeer’s recognition as one of the bitcoin miners with substantial existing and planned power capacity, which can be leveraged for both crypto mining and powering AI and HPC projects.

Increased Takeover Activity in the Sector

The bitcoin mining sector has witnessed a surge in takeover activity. Core Scientific (NASDAQ:CORZ), another key player, recently rejected a $5.75 per share offer from cloud computing firm CoreWeave, stating that the offer significantly undervalued the company. This indicates a growing interest and competition among firms in acquiring valuable crypto mining assets.

Bitdeer is currently engaged in preliminary discussions with several customers in the AI/HPC space. These talks are expected to gain momentum once management completes site analysis to determine the optimal use of their resources. This strategic move positions Bitdeer as an attractive acquisition target for companies looking to expand their AI and HPC capabilities.

Broker’s Positive Outlook and Financial Projections

Benchmark has adjusted its estimates for Bitdeer, reflecting the anticipated contributions from its ASIC chip and mining rig initiatives. The broker increased its full-year 2025 revenue estimate to $617.5 million from $497 million, highlighting the company’s potential for significant growth. This optimistic outlook is based on the increasing demand for energy assets from AI and HPC firms, which can provide alternative and more lucrative uses for bitcoin mining sites.

Sector Re-Rating and Market Trends

The valuation multiples of bitcoin mining equities have seen a notable increase in recent months. Core Scientific’s deal with AI hyperscaler CoreWeave has played a significant role in driving the re-rating of the sector. This trend underscores the growing recognition of the potential synergies between bitcoin mining and AI/HPC applications.

Wall Street giant JPMorgan (NYSE:JPM) recently commented on this market trend, noting that the rally in the bitcoin mining sector suggests that the market perceives AI and HPC opportunities as viable and more accretive use cases for bitcoin mining sites. This perspective aligns with the broader industry sentiment that energy-intensive crypto mining operations can be repurposed to support the growing demands of AI and HPC applications.

Conclusion

Bitdeer Technologies is emerging as a potential takeover target amid increasing interest from AI and HPC firms in the energy assets of crypto miners. With Benchmark raising its price target and positive market trends supporting the sector’s re-rating, Bitdeer is well-positioned for significant growth and strategic acquisition opportunities. The company’s proactive discussions with AI/HPC customers and ongoing site analysis further enhance its appeal as an acquisition target.

As the bitcoin mining sector continues to evolve, the integration of AI and HPC applications offers promising alternative uses for mining resources. This dynamic market environment presents new opportunities for companies like Bitdeer to leverage their capabilities and drive future growth. Investors and industry stakeholders will be closely watching how these developments unfold and shape the future of the bitcoin mining and AI/HPC sectors.

Featured Image: Freepik 

Please See Disclaimer