Up and down. November certainly saw major crypto events. First the peak last November 10 when Bitcoin reached a maximum of 68,990 dollars, marking a historical record and dragging the companions upwards, also in the wake of the inflation data which, according to many, have driven the boom. Then a black moment after a week with a sudden drop of almost 11%. Until the thud of the queen of cryptocurrencies, which last Friday lost more than 20% from the record reached this month. Difficulty also for Ethereum, which lost 6.78% to $ 4,071.5, leaving 15.9% on the field at the end of last week.
If volatility is an intrinsic characteristic of this market, the crypto issue is now cleared at all levels. And this month is definitely a turning point - with its ups and downs - towards 2022 where they will be protagonists. Now even in the elite of traditional finance,
in banks and multinationals, crypto has opened a path that is difficult to close. Not surprisingly, overseas the Federal Reserve (Fed), the Federal Deposit Insurance Corporation (Fdic), and the Office of the Comptroller of the Currency (Occ).
The regulatory challenge
In our latitudes, first of all, “it is important to remember that today, as in most European countries, cryptocurrencies escape any form of regulation. It is no coincidence that even in April 2021, our supervisory authorities - Bank of Italy and Consob - warned investors of the risks associated with cryptocurrency exchanges mainly due to the fact that these are, in fact, unregulated instruments ", he explains. to Dealflower Marco Boldini, partner of Orrick. “This means that the well-established rules of conduct do not apply to transactions involving this new type of asset, with the result that, in addition to risks of a purely financial nature, investors must be aware that they do not enjoy the traditional protection rules recognized on the financial markets and bear the consequent risks ”, he adds.
However, the interest in cryptocurrencies does not seem to wane. "However, this framework is preparing for substantial changes - continues Boldini - We await the introduction of a very specific regulatory framework in the coming years, starting with the adoption of MiCAR, the proposal for a regulation on crypto-asset markets already advanced by the Commission European ” This is a regulation that will impose rules very similar to those currently in force in terms of financial markets, public offering and also some types of crypto-assets. "It will be very interesting to see how the market adjusts to this new approach and whether the golden age of cryptocurrencies shrinks or not. In fact, let us not forget that the introduction of a harmonized regime at European level on certain sectors of the financial markets has in some cases, on the contrary, encouraged development ”, the lawyer recalls.
However, the market seems to be leading the way by going at a different speed than the regulator. Think also in Italy of the birth of CryptoSmart, an Italian fintech platform on which it is possible to trade cryptocurrencies and digital asset portfolios. It is an entirely Italian digital exchange, from the shareholders of the company, from the legislation to the deposit account, at an Italian bank. Or the recent partnership between Young Platform and Satispay which aims precisely to simplify the purchase of Bitcoin and cryptocurrencies. Also IG Italiaannounced the expansion of its cryptocurrency trading offer, making four new digital currencies available to its customers: Polkadot, Dogecoin, Uniswap, and Chainlink.
The asset class of tomorrow
Despite different speeds in different jurisdictions, there are those who are ready to bet on the rosy future of crypto. "Bitcoin, which is the most famous and most capitalized cryptocurrency in the world, has gone from being considered a purely speculative asset to a real safe-haven asset, like the dollar or gold, over the course of a decade, even preparing to replace the latter over the next century ”, Massimo Siano, 21Shares Head of Southern Europe, explains to the press. which has developed a wide range of specific products on this asset class.
In detail, 21Shares, recently presented in Italy, works in the ETPs on cryptocurrencies, with 17 dedicated ETPs and 77 listings on the main European exchanges, including the first physically replicated indices on Bitcoin, Ethereum, Crypto. In 2018 he built Hodl, the world's first ETP on a cryptocurrency basket listed on the SIX Swiss Exchange. Through 21Shares, Siano explains, investors can easily access the asset class with the best performance of the last decade. "Market data shows that investors are moving from a very fast trading strategy to a buy-and-hold strategy. long, or even very long, period. The reasons that led to this rapid institutionalization are quite evident and are linked to the major strengths of Bitcoin ”, Siano emphasizes.
Between peaks and falls, there is optimism about the crypto tomorrow. "Many investors are still scared of Bitcoin and prefer to stay away from it, mainly due to its high volatility - continues Siano - But first of all excluding this opportunity, however, it is good to consider the current scenario, characterized by rising inflation and weakness of the dollar and of the central banking system in general, which, by maintaining negative real rates, in recent years have prevented investors from obtaining high returns not only from the dollar but from all the major currencies in the world, be it Euro, Pound Sterling, Yen or Swiss Franc. However, if many think that this problem can be solved by digital currencies, we believe the amount of money in circulation will still be decided at the discretion of the credit institutions ”, he concludes.
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