Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Blockchain, Crypto, Digital Assets, Tokens, CBDCs, Stablecoins, Metaverse, NFTs
Spot Ethereum ETFs Debut in the U.S. (Without Staking)
Investing | Jul 23, 2024
Image: Pixabay/elifxlite
SEC Approves Spot Ether ETFs to Kickstart a New Era for Crypto Investments
The US Securities and Exchange Commission (SEC) has approved multiple spot Ethereum (ETH) exchange-traded funds (ETFs) to begin trading today, marking a watershed moment and regulated channel for investors to obtain exposure to the second-largest cryptocurrency by market capitalization. Specifically, the SEC has approved asset managers such as Grayscale, VanEck, BlackRock, Fidelity, Bitwise, Franklin Templeton, Invesco, and 21Shares. This move is expected to democratize access to Ethereum, allowing institutional and individual investors to participate in its growth without having to physically purchase and manage the cryptocurrency themselves.
Why Invest in Spot Ether ETFs?
With all the hubbub made over the approval of a spot Bitcoin ETF in Q1, why might investors choose to invest in a spot Ether ETF instead?
- Simply put, investors should consider diversification. Ethereum provides a different value proposition than Bitcoin. While Bitcoin is often referred to as "digital gold," Ethereum is considered as a platform for decentralized applications (dApps) and smart contracts, offering a wide range of use cases beyond just a store of wealth.
- The Ethereum network is being constantly upgraded, such as the transition to Ethereum 2.0, which aims to improve scalability, security, and energy efficiency. These changes have the potential to boost Ethereum's utility and adoption, thus increasing its growth potential and value.
- Ethereum serves as the cornerstone for both the DeFi ecosystem and non-fungible token (NFT) markets. This unique position exposes investors to some of the most rapidly rising sectors in cryptocurrency.
See: SEC Approves 3 Spot Ethereum ETFs Trading July 23
All good investment opportunities are not without risks. For your consideration, here are some of the main risks:
- Crypto is a volatile investment and Ethereum is no different. Prices can fluctuate substantially in a short period of time, due to market sentiment, regulatory announcements, and technology improvements.
- The regulatory framework surrounding cryptocurrency is continually changing. Future changes to legislation or regulations may have a substantial impact on the value and legality of Ethereum and related ETFs.
- While ongoing Ethereum network updates are exciting, technical risks such as bugs or vulnerabilities could harm the network and, as a result, the value of these ETFs.
- The security of third-party custodians whether it be Coinbase, Gemini or Fidelity Digital Assets handling the underlying assets is everything. Any breach or failure can cause huge losses.
- Unlike Canadian spot Ether ETFs that allow staking (i.e., 3iQ ETH Staking ETF), U.S. spot Ether ETFs currently do not offer a staking option, potentially limiting returns for investors who want to benefit from staking rewards.
Comparing Canadian vs. US Spot Ether ETFs
| Feature | Canada | United States |
|---|---|---|
| Regulatory Environment | Proactive regulatory framework, early approval of cryptocurrency ETFs | Cautious, focused on investor protection, recent shift towards acceptance |
| Staking Options | Allows staking for additional returns | Currently does not allow staking |
| Accessibility | Traded on the Toronto Stock Exchange (TSX) | Traded on major exchanges like Nasdaq, CBOE, and NYSE |
| Investor Base | Easily accessible to Canadian investors | Broader access to a larger investor base |
See: Unlocking Solana: 3iQ and VanEck Apply for Solana ETP/ETFs
List of Actively Trading Spot Ethereum ETFs
| ETF Name | Trading Symbol | Management Fees | Staking Option | Custodian |
|---|---|---|---|---|
| Grayscale Ethereum Mini Trust | ETH | 0.15% (post-waiver fee) | No | Coinbase |
| Grayscale Ethereum Trust | ETHE | 2.5% | No | Coinbase |
| Franklin Ethereum ETF | EZET | 0.19% | No | Coinbase |
| VanEck Ethereum ETF | ETHV | 0.20% | No | Gemini |
| Bitwise Ethereum ETF | ETHW | 0.20% | No | Coinbase |
| 21Shares Core Ethereum ETF | CETH | 0.21% | No | Coinbase Custody |
| Fidelity Ethereum Fund | FETH | 0.25% | No | Fidelity Digital Assets |
| iShares Ethereum Trust | ETHA | 0.25% | No | Coinbase |
| Invesco Galaxy Ethereum ETF | QETH | 0.25% | No | Coinbase |
Outlook
Do you hear that sound of a door opening to broader acceptance of digital assets in mainstream finance? The approval of the first batch of spot Ethereum ETFs creates new investment opportunities for retail and institutional investors while paving the way for future growth and innovation in the Ethereum ecosystem.
See: CSA Updates on Value-Referenced Crypto Assets Regulation
Investors need be watchful, consider the associated risks, and stay up to date on continuing regulatory and technological developments.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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NatWest Launches Spatial Banking App for Apple Vision Pro
Banking Innovation | Jul 19, 2024
Image: Freepik/rawpixel.com
NatWest Launches Retail Banking App on Apple Vision Pro
As reported by Finextra, NatWest has made the bold move of launching its latest retail banking app on Apple's Vision Pro, an innovative mixed-reality headset and are one of the first banks to do so. By utilizing the immersive qualities of augmented reality, they hope to completely transform the way that consumers interact with their accounts and offer a more engaging, personalized and interactive, hands-free, banking experience with the latest biometric security technologies.
See: Unveiling Apple Vision Pro: A Leap in Spatial Computing
Wendy Redshaw, Chief Digital Information Officer at NatWest:
“It’s great to be a first-mover with such exciting new technology. It will be interesting to take learnings, understanding how customers use the app in this new technology to deal with their finances, and to understand how we can create bespoke propositions to serve them even better. It’s just one insight into how the future of banking could look in the future - watch this space.”
Do Retail Customers Really Need Mixed-Reality Banking Apps?
While traditional retail clients may not "need" mixed-reality banking apps, these apps offer considerable advantages that can improve their experience with financial services. This technology though is beneficial and interesting for the following reasons:
- Mixed-reality banking apps provide immersive data visualization that fundamentally changes how users see their financial data. Users can interact with 3D representations of their finances rather of reading through tables and charts, which makes it simpler to immediately understand complex information.
See: Apple’s Foray into Metaverse: Anticipation of ‘xrOS’ Unveil at WWD
- These apps frequently have AI-powered assistants that offer guidance and insights in real time. An AI assistant may, for instance, provide advice on managing debt, point out anomalous spending habits, or provide financial suggestions within the immersive interface of a mixed-reality app.
- Apps for mixed-reality banking may easily incorporate money management into users' everyday routines. For instance, users can monitor their spending while shopping with AR overlays that display their budget and expenses in real-time, or they can set financial objectives and receive visual reminders in their physical environment.
- Interactive tutorials and simulations that teach users about financial goods and services may be found in these apps. For example, users can view the long-term consequences of their financial decisions in a simulated setting or investigate how various investment kinds operate.
Banking that 'Comes Alive'
UXDA conducted a case study on how AI is shaping the future of what they call spatial banking which puts customers needs at the centre of this new immersive banking architecture. So what does this mean? Well in Apple's spatial banking case for its vision pro, some of the core UX design principles include:
- Familiar --> Spatial banking apps use virtual windows that have a natural feel and appearance, blending in with their environment. These windows are straightforward to use and pleasant for users to move to different locations and adjust in size to suit their needs. No matter how far away users are from the windows, they can still navigate the program using familiar motions like swiping and tapping. In summary, the app is made to be adaptable, fit in with a user's surroundings, and utilize actions they're already familiar with to make banking a pleasant experience.
See: CB Insights: Metaverse stack and companies making it a reality
- Human-focused -->These apps need to be really user-friendly and to work well whether sitting or standing. Content is placed naturally along a user's line of sight, so they don't have to move around a lot.
- Immersive --> some spatial banking apps can have two different modes and can switch seamlessly between the two. First is a Shared Space that lets you interact with others while still seeing your surroundings, while the second mode is Full Space, which fully immerses users in the app. The app is designed to seamlessly integrate with a user's real environment to feel alive and engaging without being overwhelming.
Conclusion
The financial services experience will be much enhanced by the release of mixed-reality banking apps like NatWest's on the Apple Vision Pro. These technologies have the power to completely change how people engage with financial institutions as they become more widely available, paving the way for a day when banking is seamlessly incorporated into everyday immersive digital life.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Legal Maze of DAOs. UK Law Commissions Scoping Guide
DAOs - Legal Perspective Report | Jul 17, 2024
Image: DAOs A Scoping Report (UK Law Commission)
UK Law Commission Publishes DAO Scoping Report
The UK Department for Business and Trade, sparked by interest from HM Treasury, commissioned a study back in September 2022 to investigate the legal framework surrounding Decentralized Autonomous Organizations (DAOs). A call for evidence on the design, functionality, and legal integration of DAOs was quickly announced in November 2022, which had 27 submissions from academics, technologists, and attorneys offering various perspectives. Combined with follow-up discussions, the contributions culminated in a comprehensive 289 page PDF 'DAO Scoping Report' that examines the legal framework around DAOs today and identifies potential options for legal reform.
What is a DAO?
A Decentralized Autonomous Organization (DAO) is a novel type of online organization that functions by enforcing rules stored as computer programs, usually with the help of blockchain technology. With DAOs, decision-making and governance is managed by a community of participants instead of traditional hierarchical systems or middlemen.
See: The Emergence of Insurtech Solutions for DAOs
Key features include:
- Decentralization --> Rather than being concentrated in the hands of one authority, control and decision-making are shared by all parties.
- Autonomy --> Smart contracts, which are self-executing and automatically enforce rules, control operations.
- Transparency --> Trust and transparency among participants are ensured by the public blockchain, which records all transactions and rules.
- Token-Based Governance --> To vote on proposals and set the direction of the organization, DAO participants usually use governance tokens.
DAOs can be utilized for many different purpose, such as community-driven projects, decentralized application development, and asset management.
A Legal Journey of Decentralized Innovation
Imagine a society in which blockchain technology makes transparent governance, streamlined operations, and collective decision-making possible. Sound great? Yes, but DAOs quickly run up against legal ambiguity and complexities. Some jurisdictions have created their own framework such as Wyoming Passes the DUNA Act, A Legal Framework for DAOs but mostly DAOs are challenging traditional legal practices.
"DAOs represent a paradigm shift in organizational structure, but they also bring unprecedented legal challenges that require careful consideration and innovative solutions."
1. The Birth of DAOs - A New Era of Governance
Introducing Alex, a digital entrepreneur motivated by blockchain's potential. Alex aspires to build a user-driven community platform where choices are made by users, for users. The result of this dream is the formation of a DAO called "CryptoCollaborate" (NB: this is a fictitious story for illustration only)
See: Are DAO governance attacks avoidable?
Although DAOs are innovative, it can be difficult to characterize them legally. Do they fall under a different category entirely, partnerships, or unincorporated associations?
- What are the possible legal classifications for DAOs?
- How does each classification affect the DAO's operations and member liability?
There are various legal classifications for liability and regulatory responsibilities, ranging from unincorporated associations to general partnerships. Understanding the pros and cons of each categorization can guide the organization of the DAO.
2. Who Bears the Burden?
As CryptoCollaborate grows, a security flaw in a smart contract causes significant financial losses. Alex and the team face a daunting question: Who is liable?
See: Court Tests the Liability of DAOs and Their Makers: What You Need to Know
The issue of liability within DAOs is intricate. Participants, developers, and token holders could be held responsible for the DAO’s actions. The report delves into scenarios where liability could arise and suggests the need for clear legal frameworks to protect participants.
- What are the potential liabilities for DAO participants?
- How can DAOs mitigate these liabilities?
Without a defined legal framework, developers, token holders, or the DAO as a whole may all be held accountable. Implementing strong governance systems and establishing legal organizations to restrict liability are examples of mitigation techniques.
3. Crossing Borders - Jurisdictional Challenges
CryptoCollaborate now has members from around the world. A legal dispute arises, and Alex is puzzled. Which country’s laws apply?
See: Research: Ownership of Top 10 Web3 DAOs is Surprisingly Concentrated
DAOs provide serious jurisdictional issues because of their global nature. The decentralized structure of DAOs makes it more difficult to implement national laws. In order to overcome these challenges, the UK Law Commission underlines the necessity of clear jurisdictional standards and international cooperation.
- How do jurisdictional challenges affect DAOs?
- What are the potential solutions for managing these challenges?
Regulatory compliance and legal accountability are impacted by jurisdictional issues. Creating distinct jurisdictional links, forming legal entities inside particular jurisdictions, and encouraging international legal collaboration are some potential remedies.
4. Regulatory Roadblocks - Financial and Tax Laws
Maria, an investor in CryptoCollaborate, receives a notice from her country’s tax authority. Alex needs to be aware of how their DAO's operations affect their taxes.
See: Decentralizing Venture Capital: DAO
DAOs are met with tax and regulatory obstacles. It is difficult to apply current financial standards and tax legislation to DAOs. To address the distinctive characteristics of DAOs and avoid regulatory arbitrage, the report recommends the creation of new regulatory frameworks and more precise standards.
- What are the key regulatory and tax considerations for DAOs?
- How can DAOs ensure compliance with financial regulations and tax laws?
Understanding the relevant financial rules, anti-money laundering laws, and tax requirements are important factors to take into account. By obtaining expert legal counsel, abiding by local laws, and implementing open reporting procedures, DAOs can remain compliant.
5. Governing the Future - Transparency and Accountability
As CryptoCollaborate's operations grow more intricate, Alex and the group put in place a voting system that is token-based. One member, Mark, wonders how they can maintain transparency and equitable governance.
See: Sounds like a DAO, Looks like a DAO: Introducing the Modern Digital Organization
Transparency and good governance are essential to DAO success. The report emphasizes the value of accountability and openness while examining governance techniques including token-based voting. Upholding transparency guidelines similar to those of conventional businesses can improve stability and confidence.
- What are effective governance mechanisms for DAOs?
- How can DAOs ensure transparency and accountability?
Transparent decision-making procedures, frequent audits, and decentralized voting systems are examples of effective governance techniques. Maintaining transparency calls for adhering to governance procedures, reporting actions to the public, and maintaining open lines of communication with members.
Charting the Path Forward
The future of DAOs lies in understanding and addressing their legal challenges. By staying informed and proactive, we can harness the power of decentralized governance and build a more transparent, democratic, and efficient digital world. As DAOs continue to evolve, the need for robust legal frameworks becomes increasingly apparent. The insights from the UK Law Commission’s report provide a solid roadmap for navigating this uncharted DAO territory.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Bank of Canada’s Latest on CBDC Implementation
Policy | Jul 17, 2024
Image: The Role of Public Money in the Digital Age (BoC, July 2024)
Bank of Canada Sees CBDCs as Essential for Financial Stability and Inclusion in the Digital Age
The Bank of Canada has released another paper on Central Bank Digital Currencies (CBDCs), called "The Role of Public Money in the Digital Age" (25 page PDF). This paper articulates staff's latest views which is a cautiously positive stance on the potential implementation of a CBDC. For those that have missed some of the previously published BoC reports on CBDCs, check out NCFA's fintech industry reports and research directory for more reading.
BoC's Position on CBDCs
In order to maintain the stability and effectiveness of the financial system in the digital era, the Bank of Canada believes that CBDCs may be essential for the financial system as it relates to the evolution of public money. They think a CBDC would serve as a secure, government-backed substitute for the many, proliferating stablecoins and private digital currencies. Bluntly put, virtual currencies may pose a danger to the Canadian dollar, so a CBDC may be required to preserve monetary sovereignty. The Bank of Canada would have more regulatory authority over the monetary system and be able to better manage economic policies and ensure compliance with financial rules if it were to issue a CBDC.
See: 2023 BIS Survey: CBDC and Crypto Trends Revealed
The report focuses on how a CBDC could improve marginalized people's access to financial services. The Bank of Canada recognizes the significant barriers that Indigenous and rural communities may have when trying to access typical financial services. By offering a safe and convenient digital payment option, a CBDC might lessen the need for cash and close the gap in financial inclusion. Families and individuals with low incomes may turn to pricey alternatives like payday loans and check-cashing services because they frequently struggle to obtain reasonable banking services. A CBDC may provide an inexpensive, widely available mode of payment that can help relieve the burden and financial strain.
Coordinating CBDC implementation with educational programs may increase digital and financial literacy. This plan will enable all Canadians, regardless of socioeconomic status, to benefit from a CBDC and utilize digital financial services effectively, which would lead to increased economic participation.
In order to accommodate people with different degrees of digital competency, the BoC's research highlights the need to develop a CBDC with user-friendly features and interface and strong customer service. It also emphasizes the importance of providing accessibility for individuals with disabilities to guarantee that a CBDC is open to and usable by every user.
Better security features than traditional currency can be provided by a well-designed CBDC, shielding users from fraud and theft. This is especially advantageous for vulnerable groups that are more likely to become victims of financial crimes. In order to maintain user confidence and prevent transaction data from being misused, the Bank of Canada places a high priority on incorporating robust security and privacy measures into the design of the CBDC. This improves overall system security and dependability.
See: The Ripple Effect of CBDCs on Bank Lending and Profitability
All things considered, the Bank of Canada is exercising caution to ensure that any development pertaining to the CBDC is advantageous to both the financial sector and the broader public. They propose a well-rounded approach to innovation that makes use of new technology to boost the economy of Canada's inclusivity and productivity while safeguarding it against emerging threats.
A Few Global CBDC Updates
- The European Central Bank (ECB) has entered a 'preparation phase' for a digital Euro, with an emphasis on basic elements like platform development, thorough testing, and rules finalization. In keeping with Canada's emphasis on efficiency and privacy, this phase is intended to guarantee high levels of anonymity and instantaneous settlements in central bank currency.
- The CBDC development process is guided by the IMF's 5P methodology, which specifies a methodical approach that includes preparation, proof-of-concept, prototypes, pilots, and production. This methodology, like Canada's cautious yet proactive strategy (IMF), is about deliberate and phased adoption.
- For cross-border transactions, interoperability in CBDCs is emphasized by both Swift and the Atlantic Council. Swift's interlinking approach addresses any fragmentation issues by showing how various networks can be connected to streamline and expedite financial transactions utilizing CBDCs. See: IMF Working on Global CBDC Platform to Revolutionize Global Remittances and Trade
See: SWIFT Launching CBDC Solution Within 2 Years (to Compete with BRICS)
- Financial Inclusion: The IMF and other central banks, along with Canada, acknowledge that CBDCs have the potential to advance financial inclusion. The IMF talks about how well-crafted CBDCs can mimic the qualities of cash in order to be accepted by those that are financially excluded and improve access to the formal financial system.
- Central banks globally are navigating tech and regulatory obstacles that CBDCs present. The emphasis is on building strong frameworks that guarantee security, compliance, and user protection.
How About the U.S. Perspective on CBDCs?
The United States remains cautious about the widespread adoption of CBDCs, citing several concerns. Due in large part to worries about financial stability, privacy, and regulatory obstacles, the US is still hesitant to embrace CBDCs widely. Significant privacy concerns are raised by critics who claim that a CBDC might enable unprecedented government surveillance by allowing for the comprehensive tracking of individual financial transactions. Officials in the United States are also concerned that a CBDC may cause widespread withdrawals from bank deposits, upending the banking industry and perhaps resulting in disintermediation and financial instability.
In addition, there are significant technical and regulatory obstacles to take into account, such as the need for a comprehensive regulatory structure to tackle concerns pertaining to cybersecurity and system resilience. It is also the belief of policymakers that current payment systems can be enhanced without requiring a CBDC.
See: Markets React to Trump’s Assassination Attempt
The cautious stance taken by the Federal Reserve, which states that comprehensive public engagement and parliamentary support are required before issuing a CBDC, is indicative of a wider political and economic reluctance to proceed without careful consideration.
Conclusion
With several nations moving forward with their CBDC projects, global trends are constantly changing. Canada is taking a cautious approach to guarantee that it is ready to adapt to new financial landscapes while preserving its monetary sovereignty.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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SEC Approves 3 Spot Ethereum ETFs Trading July 23
Regulation | Jul 16, 2024
Image: Freepik/benzoix
Three (3) Ethereum ETFs receive preliminary approval from the SEC to begin trading early next week
The U.S. Securities and Exchange Commission (SEC) has given preliminary approval to three asset managers BlackRock, VanEck, and Franklin Templeton to begin trading spot Ethereum (ETH) Exchange-Traded Funds (ETFs) early next week, assuming no hiccups.
- The three companies have until the end of the week to complete their final offering documentation, and if they do, trading is likely scheduled to start on July 23, 2024. Ethereum is now the second cryptocurrency to be approved as an ETF, after the SEC approved a slew of spot Bitcoin ETFs earlier this year.
- Analysts are predicting that similar to the approval of Bitcoin ETFs, which attracted large interest and investment at launch, the approval of Ethereum ETFs will draw a variety of institutional investors who were previously sitting on the sidelines due to regulatory concerns. According to current optimistic trends, Ethereum may hit $4,500 thanks to improved investor confidence and clearer regulations.
See: SEC Approves 19b-4 Forms of First Batch Ethereum ETFs
- As U.S. regulators are paving the way for crypto ETFs, there's increased likelihood of additional cryptocurrencies like Solana ETF being approved in the near future.
- Next week, Ether products from Invesco Galaxy, ARK 21Shares, Fidelity, Grayscale and Bitwise are also expected to launch imminently, as soon as next week based on the timing of their final offering documents.
Update: Nate's instincts were right, hearing SEC finally gotten back to issuers today, asking them to return FINAL S-1s on Wed (incl fees) and then request effectiveness on Monday after close for a TUESDAY 7/23 LAUNCH. This is provided no unforeseeable last min issues of course! https://t.co/D21FD9Qf94
— Eric Balchunas (@EricBalchunas) July 15, 2024
Impact on Future Crypto Regulations
The recent approval of spot Bitcoin and Ethereum ETFs, demonstrates that the SEC is prepared to collaborate with asset managers to introduce novel investment products to the market. This fact incentivizes additional companies to submit applications for approval of ETFs for other cryptocurrencies, which would result in a stronger and and more diversified market.
See: New US Crypto Tax Reporting Rules Starting 2025
Hester Peirce, an SEC commissioner:
“The approval of Ethereum ETFs is a significant step forward in bringing greater transparency and regulatory oversight to the crypto markets. It demonstrates that the regulatory framework can adapt to new technologies while ensuring investor protection.”
Outlook
The legal approval of more digital assets may open the door for institutional investors to embrace them more widely, spurring blockchain innovation and further integration in the financial industry. That would increase public trust, and also longer term, increase market stability and growth.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Markets React to Trump’s Assassination Attempt
Crypto News | Jul 15, 2024
Image: Freepik
Donald Trump's Support for Bitcoin and Impact on Trade and Financial Markets
On Saturday, President Donald Trump narrowly survived an attempted assassination at a rally in Butler, Pennsylvania. Markets reacted on Monday, with the price of Bitcoin skyrocketing over $63,000 (over 10%). In the wake of the attack, investors responded favourably, seeing Bitcoin as a decentralized and safe financial instrument amidst periods of political instability. Furthermore, the Republican platform has officially declared its stance on digital assets, and Trump will be speaking at the upcoming Nashville, Tennessee, Bitcoin Conference.
See: ‘Mugshot Edition’ Trump NFTs Blending Politics, Memorabilia and Digital Assets
- Trump now supports Bitcoin, changing his earlier unfavourable stance. In his view, Bitcoin is a safe, decentralized substitute for established financial institutions that is necessary for both personal financial sovereignty and economic stability. Trump's endorsement of Bitcoin has the potential to significantly influence trade policy in the future by encouraging international trade and lowering dependency on fiat currencies. This is consistent with his overarching economic plan to promote innovation and global market competitiveness.
- Following the assassination attempt, Polymarket showed Trump's chances of winning the 2024 presidential election significantly rose to 71%, it's all time high. This uptick indicates that investors are becoming more confident in his capacity to withstand setbacks and lead with steadiness, which will make him more appealing to fans and market players.
- Trump's Republican Party platform for 2024 calls for an end to the crackdown on cryptocurrencies, indicating a more welcoming regulatory climate for digital assets. This well-rounded strategy promotes innovation while safeguarding consumer interests, possibly establishing the United States as a frontrunner in the digital economy.
Despite Failed Assassination Attempt, Trump to Speak at Upcoming Bitcoin Conference in Nashville
On July 27, Trump will headline the Nashville Bitcoin Conference, where he will address his support for cryptocurrencies and their effects on trade and the economy. It is anticipated that his speech will clarify his position on fair regulation of cryptocurrencies and their integration into traditional financial systems. Politicians and investors are looking forward to this event for insights into future regulatory approaches to crypto.
Conclusion
The assassination attempt's effect on markets and Donald Trump's recent support for Bitcoin in the face of political unrest. His endorsement suggests that trade policies may change and that regulations pertaining to digital assets may become more lenient.
See: Fortune 100 & 500 Embrace Blockchain, Driving Onchain Growth
Investors and lawmakers are anxious to learn more about Trump's plan to incorporate Bitcoin into the banking system and pave the way for important advancements in the digital economy as he gets ready to speak at the Nashville Bitcoin Conference.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Is Web3 Ready for Social Commerce Adoption?
Report | Jul 15, 2024
Image: Web3: A new era for social commerce (Onyx by J.P. Morgan)
Are Web 3 and Social Commerce Ready for Prime Time?
Social commerce is expected to reach over $1 trillion in 2023 and 600% increase by 2030. This growth is sparking radical change in consumer behaviour due to tech advancements but there's still a lot of friction existing on today's social media platforms that needs innovating. Enter Web3, the next phase of internet development distinguished by user ownership and decentralization, however is Web3, ready for mass acceptance in social commerce and vice versa? Dig into just published report from Onyx by J.P. Morgan called "Web3: A New Era for Social Commerce."
Traditional Social Influencers
With their large fan bases on TikTok, YouTube, Instagram, and other platforms, social influencers are becoming essential to digital marketing campaigns. However, centralized Web2 platforms play a major role in the traditional influencer model. The distribution of content, data, and revenue are all under the hands of these platforms, which limits influencer autonomy and puts them at the whim of platform algorithms. Influencers' reach is fueled by engagement metrics like likes, comments, and shares, but they can be manipulated by the platforms, giving audiences and influencers alike an uneven and occasionally untrustworthy experience.
Enter Web3's Social Tech Stack
With its blockchain roots, decentralization, openness, modularity, and interoperability, Web3 is a major advancement above Web2. Web3 gives people ownership and control over their digital identities and content, in contrast to Web2, where user data and content are controlled by centralized platforms and corporations.
- Web3 digital wallets communicate with decentralized apps (dApps) and blockchain networks. They offer a distinct public address that may be used to identify and communicate with other wallets and users. Recent developments have improved user experience by streamlining wallet setup and use.
- Web3 consumer dApps for everything from blogging and music to social networking such as Phaver, Yup, and Warpcast. By enabling users to gather and possess content, Web3 dApps promote a more customized and captivating user experience. Wider use across many apps is made possible by open social graphs (networks) like Farcaster and Lens Protocol, which promote creativity and user-centered experiences.
See: A Fintech Survival Guide to Understanding Gen Z Finance
- middleware layer that improves front-end application functionality by offering open algorithms, analytics, payments, messaging, search, identification, and data access.
- Performance and scalability are improved by combining blockchain technology with off-chain decentralized storage to handle the large number of data and transactions needed for social apps.
Web3 Social Commerce
- Through the use of smart contracts and on-chain data, Web3 social commerce incorporates blockchain technology into social media platforms to manage user-centric transactions with increased transparency. See Coinbase Commerce as an example.
- Transparent on-chain data and verifiable credentials enhance trust in Web3 social commerce. For instance, loyalty and "Proof of Store" badges lower the possibility of fraud and boosts brand and influencer confidence.
- Web3 offers personalized communication via digital identities and open social networks, which encourages customized content creation and community development. Influencers have the ability to produce unique, token-gated experiences and content that increase loyalty and engagement.
Take a look at the example below with user Emma's interaction with Web3 social commerce.
See: Strategies for Achieving Product-Market Fit in Web3
- Emma finds a new brand using her open social graph, which is a network of verified badges and reliable connections that indicate credibility.
- She relies on product reviews from loyalty badge-wearing verified users since she knows they are real people and not automated systems.
- Emma uses her verified credentials to get discounts and completes her order within the Web3 platform without ever leaving the ecosystem.
- Emma's engagement with the brand is further enhanced when she receives an invitation to join a token-gated community that offers unique content and events after making a purchase.
Is Web3 Ready for Social Commerce Adoption?
- In 2023, there was more than 4 million active Web3 wallets interacting with dApps on a daily basis, a sign of the increasing popularity of decentralized apps and ecosystems.
- Users have to pay gas fees for any on-chain activity, which can be a turnoff for some users, particularly those who are new to blockchain technology. To make these interactions simpler, innovations like smart wallets and chain abstraction are being developed.
- Web3 gives consumers control over their digital identities and data, however currently managing multiple wallets and identities is challenging. This function must be simple to use and meet privacy preferences as needed.
See: Unlocking Web3 – What Every Founder Needs to Know
- The total user base of Web3 social networks is still very small when compared to mainstream Web2 social platforms. In an attempt to draw in companies and non-Web3 users, the ecosystem is being gamified and opened up, but widespread adoption remains difficult.
Challenges to Widespread Adoption
- Because blockchains are decentralized, they frequently have problems with scalability and performance. Network congestion and expensive costs might result from social applications' high transaction volumes and massive data demand. To overcome these obstacles, hybrid systems combining off-chain and on-chain storage are being employed. It will take time to achieve the scalability and efficiency needed for widespread use.
- Web3 apps' user experiences need to be on par with or better than those of Web2 platforms. We're talking easy-to-use interfaces, smooth interactions, and low transaction friction.
- Campaigns for education and awareness are crucial to closing this knowledge gap and inspiring more users to embrace Web3 tech and experiences. Complexity needs to be decreased and myths dispelled.
Conclusion
Web3 has the potential to completely transform social commerce by offering user-centric, decentralized platforms that improve engagement, transparency, and trust.
See: Digital Identity in the Age of Web3: Empowering Individuals, Transforming Organizations
Although there are unmistakable signs of rising interest and tech progress, various obstacles need to be overcome before Web3 can be widely used for social commerce. This shift will be largely driven by ongoing innovation, user education, and efforts to make the Web3 experience simpler.
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