Navigating the Maturing Landscape of Crypto: Insights on Recent Developments and Future Prospects

Dear Bamboo Users,

I am writing to you today to share my thoughts on the current state of crypto based on the recent excitement in the market and price appreciation.

It has become very clear over the past several weeks that the institutions are here and contributing to the crypto ecosystem. Below are some of the recent highlights:

• BlackRock and Barclays use JPMorgan's blockchain in a milestone collateral transaction BlackRock CEO says he believes Bitcoin and crypto will play a role as a flight to quality
• Major European clearinghouse Euroclear issues first-ever tokenized digital eurobond worth $106 million
• JPMorgan reveals that its digital coin handles $1 billion worth of transactions daily
• Crypto market cap nears $1.5 trillion for the first time in nearly 2 years
• CME Bitcoin   futures open interest surpasses Binance to claim the #1 spot for the first time in two years
• UBS launches crypto ETF trading for wealthy Hong Kong clients
• Japanese banking giant Nomura launches ETH fund
• BlackRock files for spot Ethereum ETF
• HSBC announces digital assets custody services to institutional investors
• UK sets out proposals to bring stablecoins into the real economy

It is an exciting time and represents a maturing of the industry. This maturing will attract substantial sums of capital and interest in the sector over the coming years and lead to mainstream adoption, which we expect to be much much like the internet is used today.

It is important to highlight that Bitcoin has historically followed a four year cycle. Four years ago,, Bitcoin was sitting at $8,000 USD then going to reach highs of around $70,000 USD per coin. We are now sitting at around $37,000 USD per coin and extremely excited about where Bitcoin can go over the next four years.

Innovation cycles have historically contributed to volatility of these four year cycles market cycles. In 2020 we saw the early advent of technologies like decentralised finance, NFT’s, play-to-earn gaming, layer two scaling solutions and more. This market cycle does not seem to be fostering the same level of new technological innovation, rather a maturing of existing technologies to support broader adoption.

Finally, from a regulatory point of view, it looks like clarity is finally coming. In Australia, the Treasury Department has released a consultation paper for industry review focused on regulating digital asset exchanges. It’s expected to take another 1-2 year before it is completely implemented, but this will bring certainty to the industry for many investors. Similarly, in the US, precedent is being created and upheld from the winning cases by Ripple, Coinbase and Greyscale Investment Trust against the SEC. Further to this, the courts have ruled that the SEC can not apples some of the decision my the courts. Regulation is still a challenge, but certainly moving in the right direction.

In summary, we are very optimistic about the next 12-24 months in crypto and we hope that we can continue to help you navigate the crypto ecosystem so you can achieve your financial goals.

Sincerely,

Blake Cassidy

CEO of Bamboo