$500B German Asset Manager is Considering Adding Bitcoin to A ‘Handful’ of Private Funds

Union Investment, a $500 billion Germany-based asset manager, is testing a pilot program with Bitcoin exposure certificates. If the program becomes a success, it will also open Bitcoin exposure to other funds.

The certificates will be available in the quarter fourth of this year with the date yet decided.

For this, “We are considering adding bitcoins in small amounts of 1% to 2% maximum to a handful of other funds for private investors,” Portfolio Manager Daniel Bathe told Bloomberg.

Union Investment had its first Bitcoin exposure in its mixed fund at the beginning of this year. These were Delta 1 certificates in private funds that are allowed to invest up to 1% in Bitcoin, and currently, they are just below that, according to Bathe.

With this move into cryptocurrency, Union Investment aims to get ahead of its competitors, with one of the largest ones, DekaBank, not yet offering any fund with Bitcoin exposure. However, a spokesperson from Dekabank, Germany’s largest asset manager, did say in July that the firm was also considering investing in the leading cryptocurrency.

Germany is expected to see a massive wave of crypto adoption after a new law came into effect in August that allowed “Spezialfonds” that are holding $1.8 trillion to invest 20% in crypto.

“We are observing an increased interest of mixed fund managers in crypto assets,” said Kamil Kaczmarski, a consultant for financial service providers at Oliver Wyman in Frankfurt.

Traditional German investment managers are likely to begin their crypto exposure through certificates and other derivatives, as seen with German public bank Sparkassen, which recently made Bitcoin and crypto investment available to its customers via certificates, individual stocks, and ETFs.

The post 0B German Asset Manager is Considering Adding Bitcoin to A ‘Handful’ of Private Funds first appeared on BitcoinExchangeGuide.

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Author: AnTy

Seasonality Affecting BTC the Same as Other Asset Classes, Longest Consecutive Outflows Since Jan 2018

Seasonality Affecting Bitcoin the Same as Other Asset Classes, Longest Consecutive Outflows Since Jan 2018: CoinShares Report

However, this time, outlaws from Bitcoin investment products are proportionally far less, with only 0.2% of assets under management (AUM) compared to nearly 5% in the 2018 bear market.

While the Bitcoin price is showing strength, the institutional money that went away in May hasn’t made its comeback yet. But as the well-known financial-world adage goes, “Sell in May and go away, and come on back on St. Leger’s Day,” which falls in September, may come back soon.

By this adage, the crypto market still has a way before institutional money makes its way back in, and the way the price has been recovering, it could just so happen that we have broken 2021 ATHs, which has started happening with Solana (SOL) and Terra (LUNA).

For now, though, the digital assets investment products had a 6th consecutive week of outflows. The outflow of $22 million this time brings the total 6 week run of outflows to $115 million.

“Despite the continued negative sentiment, it comes at a time of low investor participation likely due to seasonal effects as seen in other asset classes,” noted CoinShare in its report.

This, however, now marks the longest run of consecutive outflows since January 2018, but proportionally far less. This time, outlaws only represent 0.2% of assets under management (AUM) compared to nearly 5% in the 2018 bear market.

Volume is also down at $3.1 bln per week in investment products, down from $7 bln per week in May.

In contrast, the uptrend in the market has resulted in the AUM rising 10% week-on-week to $55 bln.

Bitcoin (BTC), yet again, continues to be the main target of these outflows, accounting for almost the entire $22 million last week.

Ethereum (ETH) saw minor outlaws totaling $1.1 million, and akin to this, Binance recorded $0.9 mln of outflow.

Multi-asset investment products, which, unlike Bitcoin, continued to draw investors’ attention, also saw outflows this time. This happened for the first time since June 2020, but they were minor at just $0.3 mln.

When it comes to inflows, a few crypto assets still managed to attract some, including Cardano (ADA), Polkadot (DOT), and Stellar (XLM) at $1.3 mln, $0.4 mln, and $0.4 mln, respectively.

When it comes to asset managers, 21 Shares had the highest at just $3.5 mln, Grayscale $0.3 mln, Bitwise $0.1 mln, and others $3 mln, as per the data.

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Author: AnTy

Singapore’s DBS Bank Gets Approval from MAS to Offer Crypto Services to Asset Managers & Companies

Singapore’s DBS Bank Gets Approval from MAS to Offer Crypto Services to Asset Managers & Companies

Singapore’s DBS Bank is the latest to receive approval “in principle” from the Monetary Authority of Singapore (MAS) under the country’s Payment Services Act.

DBS Vickers, the bank’s brokerage arm, is the one that received the go-ahead from the country’s financial regulator to begin offering crypto services directly to companies and asset managers via its DBS Digital Exchange (DDex).

“We are pleased to have made steady progress on our digital asset ecosystem in the six months since we launched the DDEx last year,” said Eng-Kwok Seat Moey, group head of capital markets at DBS, who also reported of “keen interest” among corporations and asset managers for access to crypto.

Earlier this month, cryptocurrency exchange Independent Reserve received the first such approval.

In 2019, the Payment Services Act was passed requiring all digital payment token service providers to operate. Since it came into effect in January last year, hundreds of applicants have applied for the license.

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Author: AnTy

$402B Asset Manager Giant Files to Start Offering Bitcoin and Ethereum Exposure Immediately

$402 Billion Asset Manager Giant Files to Start Offering Bitcoin and Ethereum Exposure Immediately

Neuberger Berman will be offering indirect exposure to the top two crypto-assets through futures and funds invested in BTC and ETH in line with SEC Chairman Gary Gensler’s openness to Bitcoin futures-backed ETFs.

Neuberger Berman, the asset manager with over $400 billion in assets under its management, filed with the US Securities and Exchange Commission (SEC) Wednesday to start offering exposure to the top two crypto-assets.

Much like the latest Bitcoin-related ETFs filed with the SEC, such as VanEck and Invesco, Neuberger Berman will also offer indirect exposure through futures instead of investing directly in Bitcoin and Ether after SEC Chairman Gary Gensler indicated that he is more open to futures backed ETFs that offer more protection. The SEC filing reads,

“Effective immediately, Neuberger Berman Commodity Strategy Fund’s (the “Fund”) investment strategy will permit actively managed exposure to cryptocurrency investments and digital ​​”assets through (i) cryptocurrency derivatives, such as bitcoin futures and ether futures, and (ii) investments in bitcoin trusts and exchange-traded funds to gain indirect exposure to bitcoin.”

The fund giant will be making the investment through its subsidiary.

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Author: AnTy

$45 Billion Asset Manager, GoldenTree, Is Investing in Bitcoin

$45 Billion Asset Manager, GoldenTree, Is Investing in Bitcoin

GoldenTree Asset Management, a $45 billion asset manager run by founder and chief investment officer Steven Tananbaum, is the latest financial institution to get into crypto by purchasing an undisclosed amount of Bitcoin.

While it is not yet known just how much GoldenTree is actively buying Bitcoin, the fund has reportedly restricted its crypto exposure to only Bitcoin at this level.

Back in April, the asset manager had updated its SEC filing to allow the acquisition and buying and selling of a broad range of cryptos and blockchain-based companies.

Citing sources with knowledge of the matter, TheStreet reported that adding Bitcoin to its balance sheet will work as a diversifier for its broad mixture of debt-focused strategies.

Lately, they have also been having conversations about adding to its headcount with experience on the funding and operational sides of crypto investing, one of the sources said.

CIO Tananbaum and his companions at the firm Joseph Naggar Deeb Salem have already made VC-style investments in blockchain firms. In early July, they backed the funding for Borderless Capital, which focuses on the Algorand ecosystem.

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Author: AnTy

Crypto “Presents An Interesting Opportunity For Robinhood,” Clear Interest In The Asset Class

Crypto “Presents An Interesting Opportunity For Robinhood,” Clear Interest In The Asset Class

“I think it’s becoming a more and more widely accepted asset class,” said Robinhood co-founder Vlad Tenev pointing to the institutions taking a bigger role in crypto and being “an accelerant potentially for international expansion.”

“We’re going to be a participant,” in the cryptocurrency industry in the long-term, said Robinhood co-founder and CEO Vlad Tenev in an interview with CNBC’s “Squawk on the Street” this week as the company went public.

“It’s clear that our customers are interested in this asset class, and I think it’s becoming a more and more widely accepted asset class,” said Tenev pointing to the “institutions taking a bigger role” in it.

On being asked about the regulatory aspect of the crypto market, with Senator Elizabeth Warren talking about crypto in the context of snake oil and how it might affect the company, the co-founder of the zero-fee trading app is pretty clear that they are going to be a part of it.

“It’s global by nature which I think presents an interesting opportunity for Robinhood because it’s an accelerant potentially for international expansion into certain markets. So, of course, we’re gonna have to continue constructive dialogue and people are trying to figure out what the regulatory framework is going to be and we welcome that.”

Cryptocurrencies have begun to take a significant share in the company’s transaction-based revenue, with one-fifth of its Q1 revenue coming from crypto and one-third of that is from Dogecoin alone.

When asked about Dogecoin becoming a massive part of their business, if that’s sustainable, and what does it mean to have these meme moments, Tenev said, “there’s going to be idiosyncratic moments where something becomes more culturally relevant like a particular cryptocurrency or a particular stock and, of course, we have to be available for our customers.”

As for Robinhood itself becoming a meme stock, the CEO hasn’t given it much thought. But the first day of trading Robinhood shares doesn’t reflect that as plenty of its users didn’t take up the chance to take part in the IPO.

Robinhood priced its share at $38, valuing it at $31.7 billion after raising $1.89 billion from the offering, setting the stage for the company to start trading on Thursday under the symbol HOOD.

But unlike the hype around Coinbase’s direct listing or many other ICOs that saw their prices rocketing, this time, “HOOD” shares opened around $38 level only to decline right from the first few minutes of its opening.

HOOD shares ended its first day as a public company 8.4% below its IPO price, failing to win over the retail investors, or it could be an efficient market in play.

Robinhood set aside around 35% of its IPO shares for the retail business and ended up selling around 20% to 25%, according to the New York Times, citing a person with knowledge of the matter.

The company’s debut also came in a crowded and diminished week in the capital markets, with the record-setting year of US listings losing momentum. Meanwhile, the IPO made its co-founders billionaires with Tenev’s holdings valued at about $2.4 billion and co-founder Baiju Bhatt worth $2.8 billion.

In an interview with Bloomberg, Tenev said he’s striving for a “large portion” of the company’s customers to be long-term investors.

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Author: AnTy

Coinbase’s Goal is to List ‘Every’ Crypto Asset, says CEO Brian Armstrong

Coinbase’s Goal is to List ‘Every’ Crypto Asset, says CEO Brian Armstrong

The biggest cryptocurrency exchange in the US, Coinbase co-founder and chief executive officer Brian Armstrong took to Twitter on Monday to remind the crypto community just how it lists assets.

“Our goal is to list *every* asset where it is legal to do so,” he said.

Besides following the listing standards in terms of legality and safety, Armstrong said, the firm doesn’t have an opinion on the value of each asset.

“We are asset agnostic, because we believe in free markets and that consumers should have choice in the cryptoeconomy. This is how we’ll have the most innovation.”

Over time, Coinbase will provide tools to give customers ratings and reviews of assets to make more informed decisions. However, Armstrong said, listing on Coinbase shouldn’t be taken as an endorsement of that asset.

Coinbase has started to list more and more cryptocurrencies to its exchange recently, and the exchange has been focused on adding more assets, with CFO Alesia Haas saying last month,

“We’re making big investments to improve the speed of our asset addition.”

Armstrong also shared late on Monday that they are working to keep up with the “incredible amount of assets being issued” and interacting with the asset issuers who are “building the future of this industry.”

For this, Coinbase will be increasing its staff to engage with all asset issuers in a timely manner through its AssetHub, where it encourages crypto projects to list their assets across Coinbase projects and promote them to over 56 million customers, as previously done by Algorand (ALGO), Polkadot (DOT), Dogecoin (DOGE), Cosmos (ATOM), and Compound (COMP).

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Author: AnTy

Fidelity Amasses over $100 Million from 83 Investors for its Bitcoin Fund

One of the world’s largest asset managers, Fidelity Investments’ Bitcoin Fund raised $102 million from investors since its launch in August last year.

According to the filing with the US Securities and Exchange Commission (SEC), the asset manager amassed a total of $102,350,437 from 83 investors with a minimum investment of $50,000 each, in a matter of nine months.

Last month, Morgan Stanley’s standalone Bitcoin Fund, which is offered in partnership with NYDIG, aggregated $29.4 million in its first two weeks.

The pooled investment fund is a passively-managed vehicle that Fidelity sells to qualified investors through the company’s subsidiary Fidelity Digital Funds.

Wise Origin Bitcoin Index Fund I, LP is managed by chief strategist Peter Jubber.

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Author: AnTy

One River Asset Management Submits Proposal to SEC for Carbon-Neutral Bitcoin ETF

Institutional cryptocurrency fund manager One River Asset Management has joined the long list of asset managers pushing for the approval of a Bitcoin exchange-traded fund (ETF).

So far, the U.S Securities and Exchange Commission (SEC) has refused to approve any despite the onslaught of proposals.

MC02 Tokens To Represent Carbon Reduction

Putting a new twist to an already old narrative, One River aims to address Bitcoin’s current carbon emission concerns.

According to an S-1 filing submitted to the SEC yesterday, One River says its Bitcoin ETF will be targeted towards reducing Bitcoin’s carbon footprint.

This will see the One River Carbon Neutral Bitcoin Trust purchase and retire the carbon credits for the estimated carbon emissions tied to the Bitcoin the Trust will be holding.

One River would leverage on its partnership with carbon credit platform Moss. For every Bitcoin owned, One River will purchase and burn Etherum-based MC02 tokens to offset carbon emission. MC02 token is a carbon credit token created to compensate for carbon emissions.

These fungible tokens will be encrypted and tokenized using blockchain, and they will be stored on a registry managed by software firm Verra.

One River’s green ETF proposal will be listed on the New York Stock Exchange (NYSE), and Coinbase has been selected as a custodian for the Trust.

One River says the initiative is meant to enable climate-conscious crypto investors to gain exposure to Bitcoin and Ethereum without worrying about the underlying environmental risks.

Bitcoin ETFs have been a hot topic in the US of late. Following a series of rebuttals from the SEC, innovative investment firms have continued making their case. One of the most famous critics of the initiative was former Chairman of SEC Jay Clayton, who felt the crypto industry was not yet ripe for an ETF offering.

Citing market manipulation and fraud, Clayton refused every ETF filing that came across his table for the world’s oldest cryptocurrency.

However, Clayton seems to have gone beyond this pessimistic view of the burgeoning industry. He is currently an adviser for One River, joining the firm’s Academic and Regulatory Advisory Council in March 2021.

Clayton’s involvement in the ongoing filing could play out in One River’s favor following his experience with the SEC. With One River carefully targeting the energy signature of Bitcoin mining, it could herald a new era of ETF offerings in the crypto space.

Crypto Carbon Footprint: A Black Spot

The carbon footprint of proof-of-work (PoW) protocols like Bitcoin and Ethereum have been a hotly discussed topic in crypto in the past couple of weeks.

PoW consensus algorithm demands much electricity as miners or validators have to compete to solve complex mathematical puzzles. This sees much energy being utilized.

As captured by the University of Cambridge in a Bitcoin Consumption Index, the greenhouse gas emission of crypto mining has worried investors and climate activists. According to the index dedicated solely to BTC mining, PoW consumes as much as 112.57 TWh of electricity annually, more than small European nations.

This colossal energy demand has seen pro-crypto supporter Elon Musk back out of his commitment to the embattled cryptocurrency. Musk said his automobile firm would no longer accept Bitcoin as payment for its electric cars in a tweet. According to the eccentric billionaire, BTC’s carbon footprint was environmentally unsustainable, and he is ready to adopt a protocol with less than 1% of BTC’s energy demands.

The environmental implications of PoW protocols have seen crypto protocols scale up their transitioning to a proof-of-stake (PoS) consensus algorithm, which consumes less energy and is way faster. Ethereum, the second most valuable cryptocurrency, is piloting its blockchain to a PoS in the coming months.

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Author: Jimmy Aki

Software Provider Temenos Enables Crypto Trading for Banks

Banking software provider Temenos has announced a partnership with online digital asset firm Taurus to enable access to cryptocurrency for financial institutions.

Per its press release, the integration would make it easier for banks to offer cryptocurrency trading to their clients via Taurus’ platform.

Temenos Leveraging Taurus Blockchain Expertise

This will see Temenos’ banking clients exposed to a plethora of blockchain solutions like Taurus-CAPITAL (tokenization and lifecycle management), Taurus-PROTECT (hot, warm, cold digital asset custody), and Taurus-EXPLORER (API-based blockchain connectivity to ten blockchain protocols).

All this will now be accessible through the Temenos MarketPlace.

Temenos notes that Taurus was selected after a thorough review and evaluation process to help banks seamlessly integrate all forms of digital assets across cryptocurrencies, tokenized assets, and digital currencies.

Taurus will be integrated with Temenos’ next-generation core banking software called Temenos Transact.

Speaking on the occasion, Managing Partner at Taurus Sebastien Dessimoz noted that there had been an increase in demand for digital assets since 2020.

According to Dessimoz, Taurus’ blockchain expertise would aid Temenos clients in managing any digital asset and creating digital products easily.

Geneva-based Taurus received a securities license from the Swiss Financial Market Supervisory Authority (FINMA) to launch the regulated crypto marketplace dubbed the Taurus Digital Exchange (TDX).

Taurus said that TDX would enable investors and banks to trade tokenized securities, private assets, real estate, art, non-fungible tokens (NFTs), and cryptocurrencies.

Taurus is a seasoned blockchain company as it offers services for cryptocurrencies, including staking and decentralized finance (DeFi), tokenized assets, and digital assets, all within its platform.

Taurus Integrates Aave

Taurus has continued to grow its product suite. In March 2021, the Swiss digital asset provider added DeFi protocol Aave to its asset infrastructure. The integration would enable banks and exchanges to deposit and borrow cryptocurrencies like Ether.

Aave, a DeFi protocol catering to both institutional and retail users, facilitates borrowing and lending of digital assets has experienced exponential growth alongside the broader crypto market.

Banks are gradually warming up to decentralized finance (DeFi) protocols like Aave, as the amount of funds locked up in DeFi protocols rises above the $80 billion mark, per DeFi Pulse.

In a research paper published earlier this month by Netherlands-based ING Bank, it was agreed that both centralized and decentralized financial systems need to co-exist to achieve success. The paper states:

“Although DeFi currently appears to be a domain on its own, we envision that centralized and decentralized financial services will converge at some stage as both have unique capabilities that are beneficial to the other. There is, however, the challenge for centralized institutions of making sure that their assets stay within countries that are white-listed.”

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Author: Jimmy Aki