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- A $3 billion Bitcoin investment firm is being formed by the U.S. Commerce Secretary’s son with backing from Tether and SoftBank.
- The new SEC chairman promises strong support for crypto growth in the United States.
- Sovereign wealth funds are rapidly increasing their Bitcoin holdings.
Paul Atkins has stepped into his role as the new Chairman of the U.S. Securities and Exchange Commission (SEC). He plans to make the United States the most attractive country for crypto businesses. He aims to offer clear, fair, and effective regulations for digital assets.
This step could allay some of the uncertainty of the regulation in the crypto sector. Atkins aims to update old rules. He wants to encourage the blockchain sector to grow while ensuring that markets remain safe.
He prioritized cooperation with business over strict enforcement. Cryptocurrency leaders view it as a welcome shift in government attitude. If his plans come to fruition, the U.S. could again be a go-to destination for cryptocurrency companies.
SEC May Review 21 Capital’s Billion-Dollar Bitcoin Plan
The US Secretary of Commerce’s son, Brandon Lutnick, is spearheading a significant crypto investment strategy. He’s launching a new firm called 21 Capital with funding from Tether, SoftBank, and Bitfinex. The intention is to replicate MicroStrategy’s Bitcoin strategy but on a grander scale, while navigating potential scrutiny from the SEC as regulatory pressures on crypto intensify.
It is offering $1.5 billion in Bitcoin. SoftBank will contribute $900 million, and Bitfinex will contribute $600 million. Another $550 million will also be raised in the form of bonds and private equity.
Bitcoin investments will be converted into stocks at $85,000 per coin. This indicates that they believe in long-term growth in Bitcoin. The company may influence the price of Bitcoin in the market and draw in more giant investors into the cryptocurrency arena.
Coinbase Sees Surge in Institutional Bitcoin Demand
Sovereign wealth funds have been purchasing huge volumes of Bitcoin. According to Coinbase Institutional, the trend has picked up since the start of April. Retail investors, however, are getting out of the market. They are transferring to the spot market and ETFs.
This move indicates a more stable and less emotional market condition. Fidelity reports that public companies are also accumulating stock of Bitcoin in bulk. Their buying has taken exchange reserves to the lowest level they have been at since 2018.
Since the US election, corporate investors have accumulated more than 350,000 Bitcoins. MicroStrategy alone holds more than 538,000 coins. It just purchased another 6,556 Bitcoins, taking its portfolio to over $50 billion in value. Such steady, massive investment is shaping the future of Bitcoin ownership.
Related Reading: Is Bitcoin on Track for $100K? Key Indicators and Institutional Trends Point to Growth
