- December 15, 2024
- Category: Crypto
This crypto week’s biggest news was mostly related to Bitcoin, with some interesting developments from Binance, Ethereum, and Ripples. Read more developments below.
Bitcoin Investment Proposal Rejected by Microsoft Shareholders
On December 10, 2024, Microsoft shareholders defeated a proposal to invest some of the software company’s treasury in Bitcoin. The proposal, led by activist investors, would have diversified Microsoft’s balance sheet and hedged against inflation. The board opposed it, citing enough diversification in their existing investment strategy.
That said, the decision highlights the very careful approach most traditional tech giants take towards Bitcoin despite increasing adoption by institutional investors and their competition. Microsoft’s rejection contrasts with companies like MicroStrategy and Tesla, which have embraced Bitcoin as part of their corporate treasuries.
Amazon Forced to Consider Bitcoin Investment
Meanwhile, Amazon shareholders are asking the online retailing giant to consider apportioning a portion of its reserve assets into Bitcoin. The National Center for Public Policy Research is behind this move, citing the benefits of hedging against currency devaluation and inflationary pressures by investing in Bitcoin.
For now, though, Amazon’s leadership makes no commitment to this, while the growing pressure to do so from investorsalso reflects the wider trend where corporations are becoming increasingly interested in Bitcoin. This discussion should finally set a precedent for other big companies to be more involved in cryptocurrencies in 2025.
Vancouver Becomes Bitcoin Friendly
The authorities of the Canadian city of Vancouver have adopted a policy that could lead to possible municipal use of bitcoin. This was reported by Bloomberg with reference to the city’s mayor, Cam Sin.
The statement said that this could happen partly under the influence of the newly elected US President, Donald Trump. It is known that six councilors supported the proposal, two opposed it, and three were absent.
The mayor of the city added that he decided to make cryptocurrencies more accessible and understandable to the public. Sim noted that “after the events in the United States, there are many other countries, provinces, and states that are beginning to show an intention to move in the same direction.” According to him, Vancouver wants to be one step ahead.
BlackRock Suggests Allocations to Bitcoin of 1-2%
Global asset management giant BlackRock suggested that investors should have 1-2% of their portfolios in Bitcoin. BlackRock’s recommendation underlined Bitcoin’s function as a diversifier because it is at a low correlation with traditional assets like stocks and bonds.
That also comes amid a continued onslaught of institutional adoption, partly abetted by recent Bitcoin ETF approvals. BlackRock believes a small allocation to this asset class can enhance general portfolio resilience and returns against the volatility of Bitcoin. This is a big endorsement of the world’s largest asset manager for major traditional finance change regarding their view on cryptocurrency.
Binance Leads in Bitcoin Deposits
During the year 2024, Binance solidified its lead in Bitcoin deposits among virtual currency exchanges. The daily average of Bitcoin deposited onto the platform increased by 2.77 BTC compared to its closest competitors: Kraken and Coinbase.Such growth in net deposits is underpinned by increasing participation from institutional and high-net-worth clients. The rise in deposits has been a function of Binance’s continued strong market position and also a function of the trust it maintains among professional traders despite regulatory challenges in many jurisdictions. The longer-term trend appears to reflect broader institutional investment interest in Bitcoin.
Ripple Launches New USD-Pegged Stablecoin, RLUSD
Ripple Labs announced that its new stablecoin, RLUSD, which is pegged to the US dollar with a 1:1 ratio, was approved by The New York Department of Financial Services (NYDFS), further cementing Ripple’s commitment to regulatory compliance.
RLUSD will increase liquidity within the XRP Ledger while providing faster processing for cross-border payments, DeFi applications, and remittances. To Ripple, this positioning will be an added competitor of stablecoins after its launch to already established predecessors such as Tether (USDT) and USD Coin (USDC).
Ethereum Liquid Restaking TVL Surges to $17 Billion
From only $284 million in TVL, Ethereum’s liquid restaking market surged all the way to $17 billion in 2024. Liquid restaking allows users to stake their ETH and receive back derivative tokens that they can utilize within DeFi protocols. This innovation increases liquidity and usability for staked tokens, while it introduces potential depegging and volatility-related risks. The surge illustrates a strong demand for yield-generating opportunities, therefore underlining the fact that Ethereum is still developing as the leading smart contract platform.