News
Donald Trump says he wants all future bitcoin to be mined in the U.S.
- Donald Trump says he wants all future bitcoin to be minted in the U.S.
- The proclamation comes after the former president convened a working group of the country’s top bitcoin miners on Tuesday in Mar-a-Lago.
- The coalition included representatives from Riot Platforms, Marathon Digital Holdings, Terawulf, CleanSpark, Core Scientific, Arkon Energy, Cholla Energy and Exacore.
Former U.S. President Donald Trump speaks at a dinner at Mar-a-Lago on June 5, 2024 in West Palm Beach, Florida. Now that his criminal trial in New York has wrapped up, the former president has scheduled a number of fundraising events around the country to aid his presidential bid. (Photo by Eva Marie Uzcategui/Getty Images)
Eva Marie Uzcategui | Getty Images
This past Tuesday night in Palm Beach, Florida, about a dozen bitcoin mining executives and experts sat down with former president Donald Trump for an hour and a half in a small tea room at the Mar-a-Lago Club. As a steady drizzle fell outside, they sipped from Trump-branded water bottles and tried to sell him on the world’s largest cryptocurrency by market capitalization.
The meeting marked the first time the former president and presumptive Republican presidential nominee — recently convicted of 34 felonies in New York — had taken a meeting with the technologists securing the $1.3 trillion bitcoin network.
The intimate gathering brought together a coalition of some of the biggest private and public American miners in the business, including representatives from Riot Platforms, Marathon Digital Holdings, Terawulf, CleanSpark, Core Scientific, Arkon Energy, Cholla Energy and Exacore.
CNBC spoke to half the miners who attended the closed door session on Tuesday, including the CEO of Riot Platforms. Jason Les told CNBC that one of the group’s top talking points was the fact that the U.S. is number one in a lot of things, and it should be number one at bitcoin, especially as the world’s top coin touches new all-time price highs this year. Bitcoin is up 160% to around $67,000 since June 2023.
Senator Bill Hagerty (R-Tenn.) — who is the ranking member on the Senate’s Banking Committee and Finance Subcommittee, as well as a vocal proponent of the digital asset industry broadly, and bitcoin mining in particular — was also there to help guide what participants described as a free-flowing and wide-ranging discussion on bitcoin, energy, job creation and the push to beat China in the artificial intelligence arms race.
Many agreed that the former president was collaborative, had well-informed questions and seemed genuinely interested in how bitcoin miners could help solve America’s energy deficit problem.
BTC Inc. CEO David Bailey, who organized the mining sit-down with Trump, says that the meeting is part of a larger push to support the former president’s bid to return to the White House.
“Our industry intends to make bitcoin and crypto a defining issue for the 2024 election,” Bailey said of the effort. “As an industry we are committed to raising over $100 million and turning out more than 5,000,000 voters for the Trump reelection effort.”
Less than four hours after Trump’s roundtable wrapped, the former president took to social media to extol the virtues of the bitcoin mining business.
“Bitcoin mining may be our last line of defense against a CBDC,” Trump posted shortly before midnight on Tuesday.
“Biden’s hatred of Bitcoin only helps China, Russia, and the Radical Communist Left. We want all the remaining Bitcoin to be MADE IN THE USA!!! It will help us be ENERGY DOMINANT!!!”
Bitcoin and some other cryptocurrencies are created through a process known as proof-of-work, in which miners around the world run high-powered computers that collectively validate transactions and simultaneously create new tokens.
The process requires heaps of electricity, leading miners to seek out the cheapest sources of power. Many have begun to set up shop in the U.S. in the last few years, much to the chagrin of a mix of mostly Democratic lawmakers, including Sen. Elizabeth Warren (D-Mass.).
“It’s such an easy issue for politicians,” in part because there is “no major ask that we have to change the rules or anything else,” Les, who runs a bitcoin mining company with a market cap of about $3 billion, told CNBC.
“We just want to be treated like everyone else,” Les added, noting that more than one in four people in the U.S. now owns bitcoin, according to a survey recently conducted by bitcoin financial services firm Unchained.
For months, Trump — who recently launched his latest non-fungible token collection on the solana blockchain in April — has been making increasingly bullish comments on crypto.
He is now accepting digital currency donations and has pledged to defend the rights of those who choose to self-custody their coins, meaning that they don’t rely on a centralized entity like Coinbase to hold their tokens and instead, do it themselves in personal crypto wallets, which are sometimes outside the reach of the Internal Revenue Service. Trump also vowed at the Libertarian National Convention in Washington in May to keep Sen. Warren and “her goons” away from bitcoin holders.
In early June in San Francisco, technologists, crypto executives, and venture capitalists paid up to $300,000 per ticket to join a Trump fundraiser that ultimately raised more than $12 million.
And then on Tuesday, Trump declared that all future bitcoin will be minted in the U.S., should he return to the White House.
Geoff Kendrick, who heads up digital assets research at Standard Chartered, recently wrote that he expects bitcoin to reach the $100,000 price threshold as the U.S. approaches the November presidential election and $150,000 by the end of the year if Trump wins.
Read more about tech and crypto from CNBC Pro
Decentralization is a key feature of bitcoin, because it means the network isn’t controlled by any entity and can’t be shut down — even if a government disapproves. Roughly 37% of the bitcoin network’s miners are located in the U.S., with China closely following at 21% of bitcoin’s global processing power despite Beijing banning the practice in 2021.
“He wants to keep all of the remaining bitcoin mining in the U.S. and out of China,” Matthew Schultz, CleanSpark’s executive chairman and director, who attended the Mar-a-Lago working group, told CNBC. “For him to be legitimately engaged in the bitcoin industry, and understanding the way that mining works, was really awesome.“
The group also touched on doing more to support U.S.-made ASICs, short for Application-Specific Integrated Circuits, which are the purpose-built rigs used to mine bitcoin. Most ASICs are built in China, but Auradine is a U.S.-based startup that is manufacturing this equipment.
Jayson Browder, senior vice president of Government Affairs at Marathon Digital Holdings, said that he brought one of these machines to show Trump to highlight the significance of “bringing chips manufacturing back to the U.S.”
The emphasis on protectionist policies that safeguard domestic manufacturing echoes the former president’s “America First” economic agenda.
Trump also expressed concern over the U.S. launching a central bank digital currency, or CBDC — that is, a digital coin issued by the Federal Reserve that could grant the government greater access to personal spending data.
Bitcoin is seen by many in the industry as the antithesis of a CBDC because it is a censorship-resistant and borderless currency that is not centrally issued, nor constrained by geographic or governmental boundaries. Trump wrote that bitcoin mining may be the “last line of defense against a CBDC.”
When asked about the Tuesday evening meeting, Brian Hughes, senior advisor to the Trump administration, told CNBC that “crypto innovators and others in the technology sector are under attack from Biden and Democrats” and that “while Biden stifles innovation with more regulation and higher taxes, President Trump is ready to encourage American leadership in this and other emerging technologies.”
Trump’s pro-crypto campaign platform comes as polling data shows that crypto matters more to the voting public now than in past presidential elections. A Harris poll funded by the spot bitcoin ETF issuer Grayscale found that one in three U.S. voters will consider a candidate’s crypto stance before casting a ballot.
Bitcoin has also seen its place as an asset class solidified in the traditional financial markets through the adoption of spot bitcoin exchange-traded funds. Since launching in January in the U.S., these funds have collectively brought in roughly $60 billion in assets under management as institutions and an entirely new set of investors gain exposure to the digital asset class for the first time.
So far this year, crypto-friendly venture capital firm Andreessen Horowitz; centralized crypto exchange Coinbase; veteran venture capitalist Ron Conway; venture capital executive Fred Wilson; tech executives Cameron and Tyler Winklevoss; and Ripple, a crypto solutions business, have all donated tens of millions of dollars to Fairshake, according to the pro-crypto super PAC.
Meanwhile, bitcoin miners who met with Trump this week tell CNBC they have been trying and failing for years to get into a room with President Biden. Under the current administration, the U.S. Treasury Department has looked to impose a 30% tax squarely on the cost of electricity used in crypto-related mining operations.
Multiple attendees described the unfettered access to the presumptive Republican nominee to be a welcome change from the status quo.
CNBC reached out to the White House to ask about the administration’s perceived reluctance to engage with bitcoin miners but did not immediately hear back.
“He walked around and shook hands with everyone in the room, talked about where they’re from, and thanked us for being there,” Schultz said of Trump’s demeanor during the meeting on Tuesday night, adding, “He’s smart as a whip. Not one note for that entire interaction.”
It was a no comms and no photographer policy at the mining roundtable on Tuesday.
Attendees, who had an expansive view over thunderstorms on the Atlantic coast that night, forfeited their smartphones to a Radio Frequency Identification pouch that blocked incoming and outgoing signals. As participants lost their sense of time, they convened under a large chandelier listening to the former president actively engage on the nuances of America’s energy deficit, bitcoin mining, and AI — without the aid of a teleprompter — for the duration of the conversation.
“He just really knew his stuff,” said Browder of Marathon.
“We were very impressed by how in the weeds he was on some pretty dense topics when you’re talking about artificial intelligence, data centers, energy buildout, and transmission,” continued Browder, who added that it was the first time bitcoin miners have formally met with the former president to discuss the industry.
CNBC spoke to half a dozen miners who were at the meeting, all of whom converged on the same conclusion; that Trump understood how bitcoin mining complements some of the bigger macro challenges that the U.S. has as a country, most notably the imminent need for the rapid buildout of energy production and transmission infrastructure amid the booming interest in generative AI technologies.
Schultz of the NASDAQ-traded mining firm CleanSpark said Trump came in, sat down, and got right down to business after grabbing a Diet Coke and a cookie from the four-plate spread of macadamia, chocolate chip, and oatmeal varieties adorning the table.
Trump “actually believes that bitcoin provides value,” said CleanSpark’s executive chairman. “I went there feeling like this is going to be a campaign rally; a highly politicized campaign rally.”
“It was anything but a fundraiser pitch,” continued Schultz.
Exacore president Chris Cook echoed that takeaway, telling CNBC that Trump was “very knowledgeable on the subject” of bitcoin mining and that he understood the significance of the job creation that could come from supporting big data mining in the U.S.
“We’re able to train people that have been displaced from industries that may have evolved or no longer exist — and train them to operate and work in a bitcoin mine,” said Cook. “The coal industry, for example. There’s not nearly as many jobs there anymore, and we can teach them to operate a bitcoin mine.”
Amanda Fabiano, a veteran of the mining industry who is on the board of a publicly traded mining firm and the founder of Fabiano Consulting, came away with a similar impression. She says that the former president seemed especially interested in hearing more about the substantial job creation that the mining industry generates in remote parts of the country in sectors ranging from technology to construction, as well as the financial incentive it provides for the buildout of infrastructure to harness the power of stranded renewable energy sources.
Marathon’s Browder says that a lot of the places where they mine bitcoin are in rural areas of the United States that have been left behind, whether it was a town once known for its coal plants, or factories that have shuttered altogether.
“We’ve come in and revitalized those areas, and I think that resonates very well with former President Trump, his team, and obviously, a lot of voters in rural America that support him,” said Browder.
Exacore’s Cook says the kind of job creation they’re talking about extends well beyond staffing a mine. The mining industry justifies the economic investment to create new power generation infrastructure, which then creates the need for thousands of new roles to make that buildout happen.
“That’s where you’ve got all these ancillary jobs; it’s not just the bitcoin mining directly,” said Cook.
“I think we can about double the amount of power generation in the U.S., which would, by my estimate, add two to three percent to GDP and create close to a million jobs,” continued Cook.
“He’s been speaking more about energy independence, jobs, and technology,” Marathon Digital’s Browder said of Trump. “I think it’s the broader context of what’s happening around the world with the power competition between the U.S. and China.”
Across the U.S. are untapped and stranded sources of renewable energy. In West Texas, for example, there is an idyllic overlap of sun quality and wind speed. But a lot of that renewable energy is concentrated in remote parts of the state, and without a financial incentive, there is little reason to build out renewable infrastructure to harness this energy.
Enter bitcoin miners.
Some have opted to build mining sites where wind and solar are abundant and the transmission system is constrained, meaning that power wants to flow down the line, but the lines are full. These mines act like a large power station but in reverse. The mines will absorb abundant renewable energy at times when supply outpaces demand, thereby monetizing these assets when there are no other buyers. And on the flip side, the mines will incrementally ramp down their energy intake, as demand on the grid rises.
Adding bitcoin miners to the portfolio of energy buyers has helped to improve the core economics of renewable power production. Providing demand to these semi-stranded assets essentially makes renewables economically viable when they might not be otherwise.
Schultz noted, however, that Trump isn’t a huge fan of wind energy, because it’s too expensive to build, maintain, and dispose of when the components go bad, so he doesn’t see it as a long-term solution, but he is apparently a fan of renewables otherwise.
“It’s a race against the rest of the world building this infrastructure, so we don’t want the United States to be left behind in this regard,” added Riot’s Les.
Demand for AI compute and infrastructure surged after OpenAI unveiled ChatGPT in November 2022, setting off a rush of investment in AI models and startups.
Data centers alone could use up to 9% of the country’s power by the end of the decade, according to the Electric Power Research Institute. That’s more than double today’s demand across the U.S today.
“When you talk about the grid and energy production, a lot of the conversation was around AI and the amount of energy that’s going to be needed there,” said Marathon’s Browder.
Exacore’s Cook noted that Trump “was very much aware of how much energy AI needs.”
Bitcoin miners do two things especially well.
When miners partner with utility companies, they turn off their data centers almost instantly when there is too much power demand and give energy back. This helps to stabilize the grid, and miners are then compensated for curtailing their consumption.
In some cases, bitcoin miners also make it more cost effective to build the infrastructure necessary to bring renewables onto the grid.
Both those things are important when it comes to building out energy infrastructure across the country.
“These are synergies that I think the Trump administration understands very well in this context of, we need more energy, and there’s a grid power competition between the U.S. and China,” said Marathon’s Browder.
“Those are the high level pieces that I think the Trump administration are thinking about and developing policies around,” added Browder. “They’re very forward thinking.”
In the closed-door meeting, Trump also spoke about the fact that fossil fuels are likely to make a comeback as they are in several other countries, due to the demand for increased energy capacity for data centers around the world.
Tapping into nuclear energy is seen by many as a cleaner alternative and the answer to meeting these ballooning power demands.
Microsoft co-founder Bill Gates and Amazon founder Jeff Bezos have invested in nuclear plants in recent years, as has Sam Altman, who is best known for being the CEO of his $80 billion start-up OpenAI. Altman told CNBC last year that he’s a big believer in nuclear when it comes to serving the needs of AI workloads. He’s also backed two different nuclear power start-ups, one of which just listed on the New York Stock Exchange in May.
“I don’t see a way for us to get there without nuclear,” Altman said. “I mean, maybe we could get there just with solar and storage. But from my vantage point, I feel like this is the most likely and the best way to get there.”
TeraWulf powers its mining sites with nuclear energy, and is looking to get into machine learning.
The company’s chief strategy officer, Kerri Langlais, tells CNBC that whether it’s bitcoin mining or AI, the reliance solely on intermittent renewables, whether it be solar or wind, which are fluctuating, is not going to be enough to support the tremendous projections for the amount of energy that is going to be required to support build out over the next five to ten years.
“We definitely talked about nuclear,” Langlais said of the sit-down with Trump.
“We need to think about that in the context of how we’re operating, how the grid is operating, the role that bitcoin mining plays in that, because we can provide a pretty valuable service to the grid in that sort of fluctuating supply environment.”
— CNBC’s Brian Schwartz contributed to this report.
Advances in artificial intelligence (AI) technology and innovative new drugs in the weight loss market were major contributors to stock market gains for much of the past year.
While investors have reaped generous returns from owning mega-cap technology and some pharmaceutical stocks, it’s human nature to wonder what else is out there and where additional value can be found.
Investment alternatives how cryptocurrencies have gained massive popularity over the past decade or so — and one of the most curious cryptocurrencies, Shiba Inu (SHIB 2.08%), it may seem very tempting, as trades below a penny.
Let’s take a look at the Shiba Inu and find out if it’s a good buy right now.
What is Shiba Inu?
The first thing to know about cryptocurrency in general is that not all cryptocurrencies are created equal. Some of the most popular cryptocurrencies out there include Bitcoin, EthereumIt is Solana. While each of them still carries some degree of speculation, all of these currencies have achieved some form of real-world application.
For example, Bitcoin is now accepted as a means of payment in some online stores and retail establishments. In addition, many projects that revolve around non-fungible tokens (NFT) tend to rely on Ethereum, Solana, and other major cryptocurrencies.
Shiba Inuin turn, is in a totally different category.
That is, Shiba Inu is often affiliated with Dogecoin. Although Dogecoin has experienced some fleeting volatility in the past — largely thanks to some irreverent support from high-level personalitiesincluding Mark Cuban and Elon Musk — cryptocurrency is largely seen as a joke.
In investing, non-serious investments tend to fall under the category of a meme. Shiba Inu is no exception here. With little to no real-world utility, Shiba Inu is widely seen as a meme coin.
Image source: Getty Images.
Should you buy Shiba Inu while it is selling for less than a penny?
Shiba Inu’s price dynamics closely follow the rules of supply and demand. At the moment, Shiba Inu has a total supply of 589 trillion tokens, and the coin is trading at just $0.000017.
With such an abundance of Shiba Inu coins available, the asset is anything but scarce. In other words, pretty much anyone can buy Shiba Inu if they want to. For this reason alone, it doesn’t have much appeal for investors looking to spot a profitable opportunity.
Given the lack of demand, it is not surprising to see that the Shiba Inu is trading for less than a penny. Unless a large number of institutional investors invested billions of dollars in purchasing Shiba Inu, I can’t imagine a world where the currency starts to gain traction in the market.
Since cryptocurrency is still considered a speculative investment, I consider it highly unlikely that large fund managers will buy Shiba Inu en masse.
Instead, I think Shiba Inu will continue to be the favorite among a small group of retail investors — specifically, inexperienced traders who follow the advice of online influencers or fake financial gurus.
If you are looking for exposure to cryptocurrency but can’t decide which coin to buy, there are many cryptocurrency stocks that could serve as a decent proxy. Companies like Coinbase, Robinhoodand even Microstrategy each offers investors some exposure to the cryptocurrency landscape, but with some degree of isolated risk.
So while Shiba Inu may seem cheap, there are many reasons why the coin’s value remains depressed. I think investors are better off moving on from Shiba Inu and considering more established cryptos or individual stocks operating in the crypto space.
Adam Spatacco has positions in Coinbase Global. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, Ethereum, and Solana. The Motley Fool has a disclosure policy.
Disclosure: This article does not constitute investment advice. The content and materials presented on this page are for educational purposes only.
Raboo and ZRO are outperforming Dogecoin with unique features and growing investor interest.
In the evolving cryptocurrency market, Raboo (RABT) and ZRO are emerging as standouts, gaining significant traction among investors. These new coins are not only on the rise but are also outperforming the established meme coin, Dogecoin (DOGE).
Raboo’s unique integration of AI into meme culture and ZRO’s fresh approach are attracting a growing community of enthusiasts. This article delves deeper into the unique features of Raboo and ZRO, exploring how they are shaping the future of the crypto landscape and why they may offer compelling investment opportunities. Read on to discover the potential of these rising stars.
DOGE: The veteran memecoin
DOGE has a market cap of over $19 billion as of July 2024 and in this circulation, there is a supply of 145 billion DOGE. The price of the coin jumped 6% in the last 7 daysechoing the trend — increased investor interest and market recovery.
Although Dogecoin was initially created as a joke, it has still held up quite well, probably due to the fact that it has had a huge community since its inception and periodic endorsements from important people like Elon Musk, thus keeping this cryptocurrency relevant and moving.
Dogecoin’s current rise could also be driven by events such as increased institutional adoption and favorable developments around the Dogecoin Foundation. These events are generating more interest, with a halving likely in 2025. Analysts project that Dogecoin will trade within the $0.15 and $0.25 range in the near future.
ZRO: A Rising Star in the Crypto Universe
ZRO is the native token of LayerZero, a robust and promising newcomer to the cryptocurrency market, which has been attracting attention recently for its intrinsic value and recent market performance. LayerZero is a cross-chain interoperability protocol that allows blockchains to communicate seamlessly with each other, literally being a “blockchain of blockchains.” Ultra Light Nodes (ULNs) power this new development, verifying transactions and messages in a way that brings security and efficiency to chains like Ethereum, BNB Chain, and Avalanche. ZRO is up over 80% in the last 30 days, reaching $4.63 with a market cap of over $509 million.
While Dogecoin has been showing improved performance in the crypto scene recently, ZRO’s growth is very fast. Its strategic partnerships, such as the latest cooperation with Flare Network, extend it to 75 blockchains, greatly increasing its market position.
Analysts are bullish on ZRO and are pricing in long-term growth in the forecasts. While Dogecoin enjoyed community support and some celebrity endorsements, the focus that ZRO has placed on its technology development and practical applications gives it a distinct advantage in this increasingly competitive cryptocurrency landscape.
Raboo: Changing Memecoins with AI
Raboo (RABT) has quickly emerged as a significant player in the memecoin market, leveraging advanced AI technology to stand out from its competitors. The token’s unique approach includes a “Post-to-Earn” platform where users are rewarded for creating and sharing content, fostering dynamic community engagement. Raboo’s presale has been particularly successful, with tokens currently priced at $0.0048, representing a significant 233% increase since the presale began.
Despite Dogecoin’s established presence and recent price stability, Raboo’s rapid rise is remarkable. Analysts predict that Raboo could outperform Dogecoin, with expectations of a 100x return upon launch. This optimism is driven by Raboo’s unique technological capabilities and the growing appeal of its SocialFi features, which set it apart from more traditional memecoins.
Conclusion
Raboo and ZRO are emerging as strong contenders in the cryptocurrency market, outperforming the established Dogecoin with their unique features and strong community engagement. Raboo, with its AI-powered meme creation and “Post-to-earn” platform, offers a unique investment opportunity, especially for those looking to diversify their portfolios in the dynamic memecoin sector. ZRO’s focus on cross-chain interoperability also positions it well for future growth.
These developments highlight the evolving cryptocurrency landscape, where technological creativity and community-driven models are becoming increasingly important for success. Investors should consider Raboo for its high potential returns and innovative features.
For more information, visit the Raboo Pre-Order Website or follow the project at Telegram or X.
Disclosure: This content is provided by a third party. crypto.news does not endorse any products mentioned on this page. Users should do their own research before taking any actions related to the company.
The introduction of spot cryptocurrency ETFs offers a new and easy way for investors to gain exposure to digital currencies.
For much of crypto’s existence, those interested in purchasing digital assets would have to do so through cryptocurrency exchanges. But now, that’s starting to change.
If you’ve been hesitant to dive into crypto due to what can sometimes be a daunting and technical task when navigating cryptocurrency exchanges, now might be the perfect time to explore the new spot exchange-traded funds (ETFs) available to investors.
Image source: Getty Images.
What are spot ETFs?
A spot ETF is a financial instrument that allows investors to gain exposure to the price movements of an underlying asset – in this case, cryptocurrencies such as Bitcoin (BTC -1.63%) and Ethereum (ETH -1.36%) — without directly owning the asset. These ETFs are traded on traditional stock exchanges, and their value is directly tied to the current (or spot) price of the cryptocurrency.
One of the main differences between owning a spot ETF and owning the actual cryptocurrency is the responsibility of custody. When you own cryptocurrency, you need to manage its storage and security, which involves using digital wallets and understanding private keys. With spot ETFs, the responsibility of custody falls on the fund manager, making it easier for investors to gain exposure to the asset without worrying about the complexities of secure storage.
In many ways, you can think of spot ETFs as gold ETFs. When people buy a gold ETF, they don’t actually receive gold coins or bars. Instead, they own shares that track the price movement of gold.
Another important distinction is trading hours. Cryptocurrencies can be traded 24/7, while spot ETFs are subject to the stock exchange’s trading hours. This means that you can only trade ETFs during market hours. These limited hours can lead to potentially missing out on significant price movements that occur outside of the market’s designated trading hours.
Options available today
Currently, the only options for investors looking for spot cryptocurrency ETFs are Bitcoin and Ethereum. These two cryptocurrencies stand out due to their significant value and established track records, positioning them as attractive options for integration into the stock market via ETFs. Bitcoin, often referred to as digital gold, was the first cryptocurrency (created in 2009) and the first to gain approval for a spot ETF. With nearly seven months of trading now under its belt, the approval of the 11th Spot Bitcoin ETFs was touted as one of the most successful ETF launches in history.
More recently, nine Ethereum spot ETFs have gained approval from the Securities and Exchange Commission (SEC) to begin trading on July 23. As the second most valuable cryptocurrency and the backbone of the decentralized finance (DeFi) economy, Ethereum was the next best candidate for a spot ETF launch.
While limited to two cryptocurrencies, as investors become more comfortable with digital currencies and ETFs continue to prove popular, we can expect to see more cryptocurrencies gaining ground as ETFs. The early stages of this expansion are already visible, with applications for Solana Spot ETFs starting to come in.
How to buy an ETF outright
Buying a spot ETF involves several steps and considerations, just like any other ETF investment. Here’s a detailed guide on how to do it:
- Start by researching the available Bitcoin and Ethereum ETFs. Compare their fees, assets under management (AUM), and performance. ETFs with lower fees and higher AUM are generally more attractive, as they may offer better liquidity and lower costs.
- To buy ETFs, you need a brokerage account. If you don’t already have one, choose a brokerage that offers a wide range of ETFs, low fees, and a user-friendly platform.
- If you’re new to the brokerage, you’ll need to provide personal information and fund your account with money from your bank. Most brokerages offer multiple funding methods, including ACH transfers, wire transfers, and check deposits.
- Once your account is funded, use your broker’s search function to find the Bitcoin or Ethereum ETF you’ve decided to invest in. ETFs are usually identified by their ticker symbols, so knowing them can make your search easier.
- Decide how many shares of the ETF you want to buy. You can place a market order, which buys the ETF at the current market price, or a limit order, which sets a maximum price you are willing to pay. Review your order carefully before submitting it.
- Once you’ve purchased the ETF, monitor its performance and keep an eye on any news or developments related to cryptocurrencies and the ETF itself. Regularly reviewing your investment ensures that it aligns with your financial goals and risk tolerance.
An evolving landscape
The introduction of Bitcoin and Ethereum spot ETFs marks a significant milestone in the evolution of cryptocurrency investing. These financial instruments offer a simpler and more accessible way to gain exposure to digital currencies without dealing with the complexities of cryptocurrency exchanges and direct ownership.
By following the steps to purchase these ETFs through a brokerage account, investors can seamlessly integrate digital currencies into their investment strategies. As the cryptocurrency market continues to mature, the availability and acceptance of spot ETFs is likely to expand, providing even more opportunities for investors to participate in this dynamic asset class.
RJ Fulton has positions in Bitcoin, Ethereum, and Solana. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.
Republican presidential candidate and former President Donald J. Trump holds a campaign rally at Van Andel Arena in Grand Rapids, Michigan, on July 20, 2024.
Bill Pugliano | Getty Images News | Getty Images
NASHVILLE, Tenn. — Former President Donald Trump is heading to Tennessee this weekend to deliver a keynote speech at a major bitcoin conference. It looks like he’ll be in front of a supportive crowd.
Trump, the Republican presidential nominee, has raised more than $4 million from a mix of digital tokens, a campaign aide told CNBC. Contributors have donated bitcoin, etherRipple’s XRP token, the stablecoin pegged to the US dollar USDC and several memecoins, according to a Federal Election Commission filing.
The more than 1,000-page report shows totals for the joint fundraising committee “Trump 47” from April 1 to June 30. The committee raised more than $118 million during that period, with payments going to the Trump campaign, the Republican National Committee and other parties, according to the filing.
At least 19 donors have contributed more than $2.15 million in bitcoin to the committee, the lawsuit shows. The contributors hail from 12 states, including some battleground states. Their professions include homemaker, U.S. military officer, missionary, painter, pizza sales representative and State Department security technician.
Crypto billionaire twins Tyler and Cameron Winklevoss led the charge, each contributing 15.57 bitcoins, or just over $1 million at the time of the donation. Since their contributions surpassed the $844,600 limit, the lawsuit indicates that the money was partially refunded. Mike Belshe, CEO of digital asset security firm BitGo, contributed $50,000 worth of bitcoin.
Tyler Winklevoss, CEO and co-founder of Gemini Trust Co., left, and Cameron Winklevoss, chairman and co-founder of Gemini Trust Co., speak during the Bitcoin 2021 conference in Miami, Florida, U.S., on Friday, June 4, 2021.
Eva Marie Uzcategui | Bloomberg | Getty Images
In recent months, Trump has positioned himself as the pro-crypto candidate for president, a reversal from his previous stance during his time in the White House. Trump launched his latest collection of non-fungible tokens on the Solana blockchain in April and has since been making increasingly optimistic crypto commentary. Along the way, he has gained the support of several influential tech and crypto investors, including venture capitalists Marc Andreessen and Ben Horowitz.
Trump will be in Nashville on Saturday to deliver the keynote address at The Bitcoin Conference, which is being held at the Music City Center. He will also host a campaign fundraiser in the city on the same day, where tickets cost up to $844,600 per person.
Front-row tickets include a seat at a roundtable with Trump and cost the maximum donation amount allowed for individuals. the Trump Committee 47. The next tier includes a photo with the former president for $60,000 per person or $100,000 per couple, according to the invitation.
Brian Hughes, an adviser to the Trump campaign, said that of the more than $4 million in cryptocurrency raised, most of it came in bitcoin.
“Crypto innovators and others in the tech sector are under attack from Kamala Harris and the Democrats,” Hughes said, referring to the de facto Democratic nominee. “While the Biden-Harris Administration stifles innovation with more regulation and higher taxes, President Trump stands ready to encourage American leadership in this and other emerging technologies.”
Trump, the first major presidential candidate to accept donations in digital tokensYou can receive contributions in a variety of cryptocurrencies, including Dogecoin, Shiba Inu coin, XRP, USDC, and Ether.
Kraken founder and former CEO Jesse Powell has donated nearly $845,000 worth of ether. Stuart Alderotylegal director of Curlinggave $300,000 in XRP token. Alderoty recently attended a Trump fundraiser organized by venture capitalist David Sacks in San Francisco.
Former Messari CEO Ryan Selkis, who resigned last week from the company he co-founded after posting about “literal war” against Trump opponents, donated $50,000 in USDC.
So far, it appears that the Trump campaign is converting these contributions immediately to USDC and then liquidating the donations. In some cases, however, the campaign has chosen to keep the USDC.
Trump has personally promised to defend the rights of those who choose to self-custody their currencies, meaning they are not dependent on a centralized entity like Coinbase and instead use cryptocurrency wallets, which are sometimes beyond the reach of the IRS.
Trump also vowed at the Libertarian National Convention in Washington in May to keep Sen. Elizabeth Warren, D-Massachusetts, and “her henchmen” away from bitcoin holders. Warren is a vocal critic of cryptocurrencies.
Meanwhile, after a meeting at his Mar-a-Lago club in Florida with about a dozen bitcoin mining executives who pledged their support, Trump declared that all future bitcoins will be minted in the US if he returns to the White House.
Trump has named Ohio Senator J.D. Vance as his running mate, a move seen by many as a victory for the cryptocurrency sector. Vance has advocated for looser regulation of cryptocurrencies and revealed in 2022 that he personally holds bitcoin.
The Biden White House has stepped up regulation of cryptocurrencies, with the SEC stepping up its crackdown on the sector in recent years.
Don’t miss these insights from CNBC PRO
The price of Bitcoin is far behind these latest news!
The time to prepare is now! [Trump Altseason Catalyst!]
The strategic reserve of Bitcoin is happening! [My BTC Price Target]
There is no Altseason for 2025. [PROOF]
Are Cryptocurrencies Losing Ground Due to Trump Hype? [SHAKEOUT DUMP INCOMING!]
The Latest Tech News in Crypto and Blockchain
🪂EigenLayer Airdrop Claims Go Live
AI meme Raboo and crypto newbie ZRO
Altcoins Are Severely Undervalued, Awaiting Ethereum Move | Flash News Detail
🥛 The “war on DeFi” continues ⚔️
The price of Bitcoin is far behind these latest news!
The time to prepare is now! [Trump Altseason Catalyst!]
The strategic reserve of Bitcoin is happening! [My BTC Price Target]
There is no Altseason for 2025. [PROOF]
Are Cryptocurrencies Losing Ground Due to Trump Hype? [SHAKEOUT DUMP INCOMING!]
-
Tech9 months agoThe Latest Tech News in Crypto and Blockchain
-
DeFi9 months ago🪂EigenLayer Airdrop Claims Go Live
-
News6 months agoAI meme Raboo and crypto newbie ZRO
-
Altcoins6 months agoAltcoins Are Severely Undervalued, Awaiting Ethereum Move | Flash News Detail
-
Altcoins6 months ago
Altcoins Correct Amid ETH Decline, Grayscale Outflows | Flash News Detail
-
DeFi9 months ago🥛 The “war on DeFi” continues ⚔️
-
DeFi6 months agoIf You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation
-
News6 months agoDonald Trump vows to make the US a ‘Bitcoin superpower’ and create a national stockpile of tokens
-
DeFi9 months agoTON Network Surpasses $200M TVL, Boosted by Open League and DeFi Growth ⋆ ZyCrypto
-
DeFi8 months ago
🏴☠️ Pump.Fun operated by Insider Exploit
-
DeFi6 months ago
If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation
-
Tech6 months agoLogan Paul Offers Partial Refund for Failed CryptoZoo Game