+0.13%<\/bg-quote>
\n executive, said he thinks AI could be the next catalyst for the mass adoption of bitcoin.\u00a0<\/p>\nZhang said he expects AI and blockchains to be the two key pillars for the next generation of the Internet, which is often referred to as Web 3. Bitcoin could be used for transactions when AI agents interact with each other, with smart contracts eliminating the need for human intermediaries, Zhang noted.\u00a0<\/p>\n
\u201cHow do you open a bank account for AI?\u201d Zhang said in an interview. <\/p>\n
\u201cAI will actually have intelligence, and it will be another participant in the economy. I think there could be a point when AI agents all make transactions to each other,\u201d said Zhang. To reduce the need of human intermediaries, \u201cyou are gonna have them using Internet native currencies, which is bitcoin.\u201d <\/p>\n
Zhang also said he expects further consolidation in the crypto space in the future.\u00a0<\/p>\n
\u201cNot every blockchain needs a native token that is tradeable,\u201d Zhang said. \u201cFor the past three years, almost every project had a token. Sometimes I don\u2019t know why they need a token. They don\u2019t even know what the token does.\u201d\u00a0<\/p>\n
\u00a0\u201cYou should only issue a token when you have a well-capitalized business that has organic growth while the token is native to this business model,\u201d according to Zhang.\u00a0<\/p>\n
Zhang said he expects many cryptocurrencies other than bitcoin and ether
\n ETHUSD,
\n +2.20%<\/bg-quote>
\n to fade away in the next cycle, but tokens that actually have utilities may have the potential to become leading players.\u00a0<\/p>\nArk amends bitcoin ETF filing\u00a0<\/strong><\/h2>\nCathie Wood\u2019s ARK Investment Management and crypto asset manager 21Shares amended their application for a spot bitcoin exchange traded fund to include a surveillance sharing agreement, which was similar to that in BlackRock\u2019s filing earlier this month.\u00a0<\/p>\n
The Cboe BZX Exchange Exchange, where the ARK 21Shares Bitcoin ETF will be listed, expects to enter into a surveillance-sharing agreement with \u201can operator of a United States-based spot trading platform for Bitcoin,\u201d according to an updated filing with the Securities and Exchange Commission on Wednesday.\u00a0<\/p>\n
ARK Invest and 21Shares originally filed their application two years ago.<\/p>\n
The SEC approved several bitcoin futures-based ETFs in the past, but has yet to greenlight anything that is backed by bitcoin itself. <\/p>\n
Read more here about why the amendment is important. <\/p>\n
Crypto in traditional portfolios?\u00a0<\/strong><\/h2>\nCryptocurrencies can become \u201cregular parts of people\u2019s portfolios\u201d once regulations become clear in the U.S., according to Franklin Templeton.<\/p>\n
While investors now can buy crypto directly, there are limited ways for them to include digital assets in traditional portfolios, said Sandy Kaul, head of digital asset and industry advisory services at Franklin Templeton.\u00a0<\/p>\n
Kaul said she is expecting more regulatory clarity from the U.S. regulators. While some regulators said existing laws are adequate for crypto, \u201cthey\u2019re not giving a pathway of how to use existing law, which makes people feel maybe existing law is not adequate. I think [regulators] they are leaving too much uncertainty in the system,\u201d noted Kaul.\u00a0<\/p>\n
If the SEC could clarify which crypto can be registered as U.S. securities, \u201cwe can include them in broader portfolios,\u201d said Kaul.\u00a0<\/p>\n
Read more about my conversation with Kaul here.<\/p>\n
Crypto in a snap <\/h2>\n
Bitcoin gained 1.2% in the past seven days and was trading at around $30,512 on Thursday, according to CoinDesk data. Ether declined 2.6% during the same period to around $1,852.<\/p>\n
Must-reads <\/h2>\n<\/p><\/div>\n