The UAE Federal Tax Authority (FTA) announced significant amendments to the VAT laws on October 2, promoting growth in the cryptocurrency sector. Notably, the revisions include VAT exemptions for the transfer and conversion of virtual assets, effective retroactively from January 1, 2018. PwC, a leading consultancy firm, highlighted that these changes not only aid in managing investment funds but also in conducting transactions involving digital assets, defining them as tradeable representations of value used primarily for investment purposes.

Furthermore, PwC advised companies in the virtual asset space to reassess their VAT positions retrospectively, with a focus on optimizing input tax recovery. This development follows the collaborative effort of Dubai’s Virtual Asset Regulatory Authority (VARA) and the UAE’s Securities And Commodities Authority (SCA) to enhance oversight and licensing frameworks for virtual asset service providers (VASPs), underscoring the nation’s commitment to becoming a global hub for digital asset innovation and security.

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BlackRock, the world’s largest asset manager, sees significant potential for Bitcoin adoption, with predictions valuing the market at approximately $5.4 trillion in the coming years. At the Digital Assets Conference in Brazil, Jay Jacobs, BlackRock’s US Head of Thematics and Active ETFs, emphasized the growing demand for alternative assets, highlighting Bitcoin’s role in achieving portfolio diversification amid rising market correlations and interest rates.

Jacobs noted the strategic importance of Bitcoin in modern investment strategies, explaining that sophisticated investors are increasingly seeking liquidity and diversification. As a leader in the field with nearly 370,000 BTC under management, BlackRock is committed to educating investors about Bitcoin’s advantages. Jacobs also differentiated Bitcoin as a monetary alternative, contrasting it with Ethereum’s technological bet, underscoring the significant global shifts towards digital assets driven by demographic and technological changes.

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Bitcoin will not become more widely adopted as a result of intellectual curiosity or because it’s theoretically the best form of money ever. Instead, people will begin to use it because it solves pressing problems in their lives.

So, if you’re looking to foster greater Bitcoin adoption, show someone how they can use Bitcoin to solve an issue their facing.

Hermann Vivier, co-founder of Bitcoin Ekasi, a Bitcoin circular economy in South…

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Bitwise Asset Management today unveiled a new strategy for its crypto futures ETFs, transitioning them to trend-following funds that will alternate between cryptocurrency and US Treasuries based on market momentum. This innovative approach aims to enhance investor returns by capitalizing on crypto trends and providing stability during downturns.

The newly proposed ETFs, including the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF, the Bitwise Trendwise Ethereum and Treasuries Rotation Strategy ETF, and the Bitwise Trendwise BTC/ETH and Treasuries Rotation Strategy ETF, will dynamically adjust their exposures. Utilizing a proprietary signal analyzing short-term exponential moving averages, these ETFs will pivot between assets—increasing crypto holdings during upward trends and switching to safer US Treasuries when the market hints at a downturn.

Set for a December 3, 2024 conversion, these changes require no action from current investors and maintain existing expense ratios and tax treatments. According to Bitwise, this strategic pivot is designed to mitigate risks and optimize returns, ensuring investor confidence through adaptable asset management.

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Bitcoin ETFs have carved out a dominant position among the top exchange-traded funds launched in 2024, showcasing their burgeoning appeal among investors. This year, 10 of the 25 most significant ETF introductions were Bitcoin-focused, commanding massive inflows. The iShares Bitcoin Trust ETF topped the list with a staggering $21.54 billion in year-to-date flows. Close on its heels, the Fidelity Wise Origin Bitcoin Fund attracted nearly $9.84 billion, with ARK 21Shares Bitcoin ETF not far behind at approximately $2.64 billion.

Other notable Bitcoin ETFs included the Bitwise Bitcoin ETF and the Valkyrie Bitcoin ETF, which saw inflows of $2.11 billion and $535 million, respectively. These numbers not only illustrate a clear shift towards cryptocurrency as a viable investment but also reflect the growing mainstream acceptance of Bitcoin within the broader financial landscape. This trend underscores the cryptocurrency’s resilience and its increasing integration into traditional investment portfolios, promising further growth and diversification of financial assets in digital spaces.