With rising inflation, investors are getting rid of gold in favor of cryptocurrencies, the Financial Times (FT) reported.
This shift highlights the erosion of support for gold, which is usually seen as a chief signifier of value in favor of what are, by comparison, new digital assets, according to the report.
There’s been over $10 billion pulled from the largest gold exchange-traded fund (ETF) this year, with funds’ physical gold hoards selling down as well, the report stated, citing Bloomberg data.
The price of gold has fallen 6.1% this year, while bitcoin has doubled in price this week, hitting an all-time high of over $67,000, according to the report.
In other news, Mojito, which is a startup supporting Sotheby’s Metaverse, has raised $20 million in its first-ever funding round, The Block reported. This brings the total value of the company to $100 million.
Mojito helps users sell nonfungible tokens (NFTs) from their own websites or storefronts, and it works in minting NFTs, ensuring compliance and allowing for perpetual royalties, according to the report.
Sotheby’s CEO Charles Stewart said, per the report, working with Mojito will allow the company to “apply our expertise and curatorial insight to the burgeoning world of digitally native art and the Mojito partnership will only expand our capabilities.”
Meanwhile, Cboe Global Markets, which provides global market infrastructure and tradable products, has entered into an agreement to buy ErisX, which operates a U.S.-based digital asset spot market, a regulated futures exchange and a regulated clearinghouse, CryptoNinjas reported.
With its global standing, Cboe will be able to offer a digital asset marketplace focused on regulatory compliance, data and transparency, according to the report. The company also plans to create a Digital Advisory Committee with its market participants, who would advise Cboe on new developments in the spot and derivatives markets.
Cboe President, Chairman and CEO Ed Tilly said, per the report, that the acquisition “will help us bring the regulatory framework, transparency, infrastructure, and data solutions of traditional markets to the digital asset space.”