Alpaca Finance Institutional Newsletter #105

Key Points:

  • Kamala Harris to Promote Crypto and Marijuana in ‘Opportunity Economy’ Pitch

  • Grayscale seeks SEC approval to convert hybrid crypto fund into ETF

  • Italy Considers Raising Bitcoin Capital Gains Tax to 42%

U.S. presidential candidate and Vice President Kamala Harris will unveil her support for cryptocurrencies and marijuana as part of her "Opportunity Economy" agenda. On October 14, Harris will address Black entrepreneurs in Erie, Pennsylvania, where she will discuss supporting Black-owned businesses, digital asset regulation, and federal marijuana legalization. Harris campaign co-chair Cedric Richmond highlighted her plans to provide Black people with economic tools to create wealth. While some in the crypto community believe she supports pro-crypto policies, others remain skeptical of her campaign's shift. Harris' platform proposes protecting cryptocurrency ownership rather than restricting it, reflecting a more favorable stance toward the industry.

Grayscale Investments has filed a request with the U.S. Securities and Exchange Commission to convert its Hybrid Crypto Digital Large Cap Fund (GDLC) into an exchange-traded fund (ETF). The fund, which holds popular cryptocurrencies such as Bitcoin, Ethereum, Solana, XRP, and Avalanche, is currently traded over-the-counter and has $524 million in assets under management. Bitcoin and Ethereum make up the majority of the fund, with Bitcoin accounting for nearly 75%. Grayscale has previously converted Bitcoin and Ethereum funds into ETFs, and its Bitcoin ETF has $14 billion in assets under management. This latest filing is in line with Grayscale's goal of making crypto assets more accessible to investors. Other recent ETF applications in the industry include Bitwise and Canary Capital's application for a spot XRP ETF, which is still awaiting approval from the U.S. Securities and Exchange Commission.

Italy plans to increase capital gains tax on Bitcoin investments from 26% to 42%, according to Maurizio Leo, Italy's deputy economy minister. The proposed increase is part of the country's new budget bill, which has been approved by the Council of Ministers and is aimed at raising revenue. In addition, the government plans to scrap the €750 million minimum revenue requirement for the Digital Services Tax (DST) and target digital companies more aggressively. The changes are part of a broader effort to finance Italy's 2025 budget, which includes a €30 billion plan partly funded by a levy on banks and insurance companies. The bill is awaiting final approval from the Italian parliament, which is expected to be received by the end of the year.

news

  • Kamala Harris to Unveil Support for Cryptocurrency and Marijuana

  • Four Reasons Elon Musk's Tesla Could Move $760 Million in Bitcoin

  • Radiant Capital halts lending due to exploitation of loophole

  • FBI Arrests Hacker Behind Fake SEC Bitcoin ETF Approval

product

  • Grayscale Files to Convert Hybrid Crypto Fund of Bitcoin, Ethereum and Solana into ETF

  • BlackRock hopes to use BUIDL to provide derivatives collateral to cryptocurrency exchanges

  • Stacked Bitcoin and Gold ETF Launches to Protect Investors from Inflation and Currency Devaluation

  • Kraken Crypto Exchange Launches Its Own Wrapped Bitcoin Token

Regulation

  • Italy Considers Raising Bitcoin Capital Gains Tax from 26% to 42%

  • SEC approves Bitcoin options ETF for listing on NYSE and CBOE

  • UAE stablecoin issuer gets central bank approval

  • CySEC no longer accepts new applications from crypto asset service providers

funds