Competition is intensifying among major US banks regarding who will be the first to add a Bitcoin ETF to their portfolio. The Bitcoin-based Bitcoin Cash has left behind its halving event, which was introduced to the market in 2017. Meanwhile, Meta, formerly known as Facebook, has lost $40 billion in its metaverse division since 2021. Here are three significant developments that have marked the last 24 hours in the cryptocurrency market, compiled for you.
Debate Over ETFs Continues in the US
The launch of spot Bitcoin exchange-traded funds (ETFs) in the United States has fueled competition among investment banks to be the first intermediary to add these products. According to crypto expert Andrew, as reported on April 3rd at X, Morgan Stanley hopes to surpass UBS in fully approving a Bitcoin ETF.
Referring to Morgan Stanley’s internal memos, Andrew mentioned that the bank could announce its transition to Bitcoin ETF funds a few days ago. He also spoke about how global banks are actively discussing adding Bitcoin ETFs as part of a race. Bloomberg ETF expert Eric Balchunas added to Andrew’s headline on X, stating that neither Morgan Stanley nor UBS have added Bitcoin ETF funds, referencing a reliable source.
Bitcoin Cash Completes Its Halving Event
Bitcoin Cash experienced a decline on April 3rd after a three-month rally, but recovered shortly after completing its second halving event, which reduced mining rewards by half on its blockchain network. Bitcoin Cash is a proof-of-work blockchain network and cryptocurrency designed to be faster and cheaper than Bitcoin. The first Bitcoin Cash halving event occurred on April 8, 2020, reducing miner rewards from 12.5 BCH to 6.25 BCH.
Prior to the halving, positive speculations were made as Bitcoin Cash’s price increased by 147.85% over the last three months and by 24% over the last 30 days. However, according to CoinMarketCap data, the price of Bitcoin Cash fell by 9.94% to $572.21 the day before the halving event. Yet, it quickly rebounded after the event, rising by approximately 5.5% to $604.
Meta’s $40 Billion Loss
Mark Zuckerberg‘s company has incurred a $40 billion loss in its metaverse division since rebranding from Facebook to Meta in 2021. Although Meta achieved an impressive revenue of $134.9 billion in 2023, a closer look at the financial statements reveals troubling signs for the Reality Labs division, responsible for products like the Quest VR headset. The financial statements show consecutive declines year over year since 2021.
Data from UploadVR indicates that as of March 2023, Meta has sold approximately 20 million Quest headsets since 2019. In a blog post in March, the company declared the death of the metaverse sector and highlighted artificial intelligence as the next technological disruptor.
