Crypto News Today: Major Shifts by Wealthy Investors, Tether, and VanEck
Welcome to your daily briefing on the latest in the digital asset world. Stay informed on key developments impacting the market with our snapshot of Crypto News Today. From shifts in global wealth allocation to major corporate moves, here’s what you need to know.
Wealthy Investors Pivot Away from US Dollar
A notable trend emerging is the changing asset allocation preferences of high-net-worth clients in Asia. According to financial services giant UBS, these wealthy investors are increasingly moving away from traditional US dollar-based assets. Why the shift?
- Rising geopolitical uncertainty
- Persistent market volatility
Amy Lo, UBS’s co-head of wealth management for Asia, highlighted this pivot during a recent event, noting increased popularity for gold, cryptocurrencies, and Chinese assets. Investors are seeking broader exposure and perceived safe havens amidst ongoing market fluctuations. China, in particular, is seeing renewed interest, with its Hong Kong benchmark index performing strongly in 2024.
This sentiment aligns with broader market data; Bank of America’s May fund manager survey indicated the largest underweight position in the US dollar in 19 years among global fund managers.
Tether Injects Significant Bitcoin Holdings
Stablecoin issuer Tether has made a substantial move, injecting $458.7 million worth of Bitcoin into Twenty One Capital, a Bitcoin investment firm it supports. This transaction occurred on May 13, related to Twenty One Capital’s planned SPAC merger with Cantor Equity Partners.
Details revealed in a regulatory filing show Tether acquired 4,812.2 BTC at a price of $95,319 per coin on May 9, placing it in an escrow wallet. This boosts Twenty One Capital’s total Bitcoin holdings to 36,312 BTC. For perspective, here’s how Twenty One Capital’s holdings compare to other major public companies:
| Company | Bitcoin Holdings (approx.) |
|---|---|
| MicroStrategy (formerly Strategy) | 568,840 BTC |
| MARA Holdings | 48,237 BTC |
| Twenty One Capital | 36,312 BTC |
This move positions Twenty One Capital with the third-largest corporate Bitcoin treasury among publicly listed firms.
VanEck Ventures into RWA Tokenization
Investment management firm VanEck is entering the growing field of RWA Tokenization with the launch of its first tokenized fund. This fund will provide exposure to US Treasury bills and was developed in partnership with tokenization platform Securitize.
Named VBILL, the fund will be accessible across multiple prominent blockchains including Avalanche, BNB Chain, Ethereum, and Solana. Initial minimum subscription amounts vary by chain, starting at $100,000 on Avalanche, BNB Chain, and Solana, and $1 million on Ethereum.
VanEck joins other major financial players like BlackRock and Franklin Templeton who have already launched similar RWA tokenized products. The tokenized US Treasurys market is a significant segment within RWA, currently valued at around $6.9 billion, second only to private credit.
Summary
Today’s Crypto News Today highlights significant movements across the digital asset landscape. We saw a notable shift by wealthy Asian investors towards crypto and gold, a major strategic Bitcoin injection by Tether into Twenty One Capital, and VanEck‘s entry into the promising space of RWA Tokenization. These developments underscore the increasing integration of digital assets into traditional finance and global investment strategies.
