BlackRock Fund Allows USDC Conversions; Draper Forecasts Bitcoin Uptick; Paraguay Considers Crypto Mining
Summary:
BlackRock's tokenized investment fund holders can now convert shares into Circle's USD Coin (USDC). Venture capitalist Tim Draper predicts Bitcoin's value could triple by 2024 due to inflows into spot exchange-traded funds (ETFs) and the upcoming Bitcoin halving. In Paraguay, legislators are re-evaluating a proposed crypto mining ban and considering the sale of excess energy from a hydroelectric plant to crypto miners.
BlackRock's cryptocurrency investment fund holders can now convert their shares into Circle's stablecoin, USD Coin (USDC). Noted venture capitalist Tim Draper has offered his insights into possible developments regarding Bitcoin's (BTC) value after it splits. Further developments report that in Paraguay, legislators are suggesting selling surplus power produced from a hydroelectric facility to those operating crypto mines.
Circle, the crypto company, has declared that owners of tokenized shares in BlackRock's investment fund can now use USDC for redemption. Circle claims those holding shares in BlackRock's USD Institutional Liquidity Fund (BUIDL) can convert their investments into USDC. This action, as per Circle, would provide a fast and efficient method to gain USDC. BUIDL, introduced recently on the Ethereum blockchain, allows investors to secure U.S. dollar profits via Securitize Markets, a firm specializing in tokenization of physical assets.
Jeremy Allaire, CEO of Circle, said the tokenization of assets presents solutions to several investor issues. He adds that USDC provides a convenient way for investors to transition away from tokenized investments, thus reducing costs and improving ease of transactions.
Having received approval to release a spot-oriented Bitcoin (BTC) exchange-traded fund, BlackRock has become the largest institutional investor in the premier digital asset. Figures from April 10 show that BlackRock's ETF holds over 266,580 BTC.
Tim Draper shares belief that Bitcoin would experience a peak in 2024 due to increased investments in ETFs and the expected halving of Bitcoin occurring that year. Draper predicts that we could anticipate about $250,000 by 2024 despite a strong performance already.
The greenlighting of spot Bitcoin ETFs in the U.S. acts as a major source of renewed interest leading to capital injections into the Bitcoin ecosystems. Draper opines that these investments offer a feasible solution for those interested in Bitcoin but are hesitant to hold BTC outright, and can also be useful in countering depreciating regular currencies.
Meanwhile, in Paraguay, lawgivers have suspended advancements on a proposed cryptocurrency mining prohibition. Currently, they are considering auctioning excess power generated by the Itaipu hydropower plant to miners, instead of transferring this energy to Brazil and Argentina.
The country's senators omitted a proposed law for forbidding Bitcoin mining during 180 days, after alleged illegal crypto mines impacted the nation's power supply. This argument and potential benefits of Bitcoin mining will be part of a public hearing on April 23, confirmed Senator Lilian Samaniego.
Senator Salyn Buzarquis has high hopes that the Paraguayan Ministry of Industry will examine the potential economic benefits of selling excess energy to Bitcoin miners.
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Published At
4/11/2024 9:06:12 PM
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