Global investment managing firm VanEck has identified bitcoin (BTC) as one of their top investment opportunities for 2024. The firm also shared updates on their views regarding digital assets and the growth of digital asset-linked funds. According to a press release, assets in VanEck’s crypto-linked funds are approaching $1 billion worldwide. In addition, the VanEck Digital Transformation ETF (DAPP) has surpassed $100 million in assets under management (AUM) as of December 27.
Performance and Outlook of DAPP ETF
The CEO of VanEck, Jan van Eck, stated that the performance of the DAPP ETF in 2023 indicates positive insights for both 2023 and 2024. Currently, the DAPP ETF has seen a year-to-date performance of over +300%, largely driven by Coinbase and Bitcoin miners. Matthew Sigel, the Head of Digital Assets Research for VanEck, emphasized the sustainability of Coinbase’s market share gains. He added, “If we at VanEck are correct that Bitcoin will make an all-time high next year on the back of the Bitcoin halving, a more relaxed U.S. Federal Reserve, and continued crypto adoption in emerging markets, then 2024 may be another strong year for the universe of companies so well-captured by the DAPP ETF.”
Hong Kong Introduces Regulation for OTC Cryptocurrency Exchanges
Hong Kong authorities have announced plans to regulate over-the-counter (OTC) cryptocurrency exchanges. The decision follows incidents where young individuals allegedly violated anti-money-laundering regulations. The Financial Services and the Treasury Bureau spokesman urged residents to use licensed exchanges and warned against the risks associated with unlicensed virtual asset trading platforms. Lawmaker Johnny Ng Kit-chong highlighted several incidents involving people in their 20s suspected of using virtual assets for money laundering, with amounts ranging from millions to tens of millions of dollars.
PancakeSwap Adds Layer-2 Networks for Enhanced Functionality
Decentralized exchange PancakeSwap’s “Pancake Protectors” have announced the integration of Layer-2 (L2) networks zkSync Era and Arbitrum. With over 25,000 daily active users during peak times, the PancakeSwap PvP on-chain game allows users to utilize CAKE to unlock various functionalities. These include leveling up, unlocking specialty characters, accessing exclusive passes, purchasing in-game gold and gift packs, and staking to unlock additional resources and gameplay.
Consolidation of Coinbase Block Rewards by Leading Mining Pools
According to the Miner Weekly report by BlocksBridge Consulting, the majority of the top 15 mining pools have consolidated their coinbase block rewards. This consolidation was driven by the increasing need for strong financial backing. The report highlighted that many of these mining pools were initially launched as independent operators without notable financial support. Since early 2022, several pools, including Antpool, Binance Pool, Ultimus Pool, BTC.com, and others, have regularly sent their block rewards to the same output addresses in single transactions. The report emphasized the importance of strong financial backing in hedging against bad luck, as these pools have daily liabilities to miner customers.
In addition, the report noted the resurgence of hashrate connected to Bitmain-tied Antpool in 2023. Although Foundry USA briefly regained the lead in blocks mined, on-chain transactions suggest that the hashrate diverted to Antpool might be larger than expected.
