Fidelity Increases Its Stake in the First Hong Kong Regulated Crypto Exchange, OSL

Fidelity Investments, a leading global asset manager interested in crypto, has increased its capital allocation to BC Technology Group. This firm runs the first crypto asset exchange to be licensed in Hong Kong, OSL. According to the regulatory filing, Fidelity increased its ownership stake from 5.29% to 6.29% after acquiring an additional 3.3 million shares at HK$52.3 million ($6.7 million).

Before this event, Fidelity’s shares at BC Technology stood at 17,795,500, an investment that the asset manager acquired last year at a rough figure of $14 million. The latest increment is a sign of the bullish outlook in being exposed to Hong Kong crypto markets where regulators seem to have been slowing capital inflows. Notably, BC Technology raised around $90 million in a top-up share placement last week.

Having received the Hong Kong license, OSL crypto exchange might be well onto the path of exponential growth. This much-coveted license is issued by the Hong Kong Securities and Futures Commission, which means that OSL now gives crypto exposure to both retail and institutions. The exchange recently touted its status as the world’s ‘first SFC-licensed, listed, digital asset wallet-insured, Big-4 audited digital asset trading platform for institutions and professional investors.’

Going by such fundaments, Fidelity’s capital scaling in Asia comes as no surprise; in fact, the firm recently invested in a Singapore regulated fund manager dubbed Stack Funds in a move that will enable investors to purchase and store crypto assets. Fidelity also launched a Europe based unit towards the end of last year; this particular entity was launched in the United Kingdom and will focus on extending Fidelity’s services to the larger European market.

Overall, Fidelity has had quite a good run in the crypto space; its CEO, Abigail Johnson, a crypto enthusiast, recently revealed that their custody operations have been ‘incredibly successful.’ Having launched its Bitcoin fund in early 2020, Fidelity targets investors who can invest a minimum of $100,000. Per the company’s latest updates, an estimated 36% of institutional investors have exposure to BTC or other crypto assets.

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Author: Edwin Munyui

Three Arrows Capital Holds 36,969 Bitcoin ($1.24B) via An Over 6% Stake in GBTC

Three Arrows Capital Holds 36,969 Bitcoin ($1.24B) via An Over 6% Stake in GBTC

Three Arrows Capital currently holds about $1.24 billion worth of position in Grayscale’s Bitcoin Trust, up from $230 million in June.

Since June, the Singapore-based investment firm has purchased 17,831,650 shares of GBTC.

Now has a total of 38,888,888 shares representing just over 6% stake in GBTC. The firm holds a total of 36,969 BTC BTC 8.55% Bitcoin / USD BTCUSD $ 34,001.83
$2,907.16 8.55%
Volume 67.7 b Change $2,907.16 Open $34,001.83 Circulating 18.59 m Market Cap 632.15 b
3 h FTX Now Allows to Short or Long Grayscale’s GBTC & ETHE and Bitwise 10 Crypto Index (BITW) 4 h BTC’s Break Above 2017’s ATH of $20,000 Converts One into a Bitcoiner 5 h Grayscale Officially Removes XRP from the Fund; Addresses with Large Amounts of XRP Drops Sharply

“GBTC is our preferred way to prefer wealth, aka BTC,” commented Su Zhu, CEO and CIO at Three Arrows Capital.

The world’s largest crypto asset manager Grayscale Investments has a total of 606.9k BTC in its holdings worth$18.78 billion, with no new purchase since Dec. 25. And Three Arrows has the largest position in its Bitcoin fund.

Typically, the shares of Grayscale’s product trades at a high premium, currently GBTC shares are at a premium of 17.05%, down from 40% on Dec. 22nd and from 132% back in May of 2017. This premium offers traders an opportunity to arbitrage.

Three Arrow’s portfolio also involves Ethereum (ETH), Polkadot (DOT), Uniswap (UNI), AAVE, Synthetix (SNX), Yearn.Finance (YFI), Compound (COMP), Kyber Network (KNC), and HXRO among others as per Messari.

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Author: AnTy

Skybridge Launches Institutional-Grade Fund to Directly Invest in Bitcoin; Offers GBTC Swap Too

Anthony Scaramucci’s SkyBridge Capital Launches Institutional-Grade Fund to Directly Invest in Bitcoin; Offers GBTC Swap Too

Describing Bitcoins as a “monetary life raft” and better at being gold than gold, SkyBridge predicts a “tidal wave of institutional capital.”

Anthony Scaramucci, the founder of SkyBridge Capital has launched the Bitcoin Fund as shared by him during the last quarter of 2020 when he said Bitcoin is still in “very, very early innings.”

SkyBridge Bitcoin GP LLC. is the new institutional-grade weekly-subscription based product that invests directly in bitcoin with a minimum investment of $50,000. Compared to GBTC’s 2% fee, this fund charges a 0.75% management fee with redemptions to be made quarterly with 30 days notice.

The fund has selected Fidelity as its custodian and Silvergate Bank to custody the US dollars. While Ernst & Young is the fund auditor, it will be administered by M.G. Stover.

Besides offering this product, the official website lists the ‘GBTC Swap’ option noting that the premium on GBTC can be monetized by selling it and investing in the Skybridge Bitcoin Fund.

The world’s largest asset manager, Grayscale holds over 3% of Bitcoin’s circulating supply while its product GBTC trades at a premium of 17% to Bitcoins’ market price. SkyBridge Capital notes,

“The GBTC premium exists because there are a dearth of vehicles for traditional investors to obtain exposure to Bitcoin. However, the premium is likely to disappear when more investment products, particularly a Bitcoin ETF, become available.”

SkyBridge encourages GBTC holders to swap it into their Bitcoin fund because SkyBridge Bitcoin Fund trades at NAV, making the swapping potentially more beneficial as the price of BTC rises BTC -3.19% Bitcoin / USD BTCUSD $ 31,930.84
-$1,018.59 -3.19%
Volume 81.19 b Change -$1,018.59 Open $31,930.84 Circulating 18.59 m Market Cap 593.62 b
6 h Why Does Bitcoin (BTC) Continue to Tear Up Without Ever Stopping? 7 h Ethereum Blockchain Becomes Absolutely Unusable Yet Again as Average Fees Hits ATH at $20 8 h Anthony Scaramucci’s SkyBridge Capital Launches Institutional-Grade Fund to Directly Invest in Bitcoin; Offers GBTC Swap Too

“Monetary life raft”

In its presentation, SkyBridge notes massive currency collapses that can be seen all over the world. Not to mention the system banking crisis and the ever-present risk of government confiscation of assets that make Bitcoin a “monetary life raft.”

The New York-based global investment firm further notes that the digital asset is a vast improvement over traditional safe-haven asset gold and is gold 2.0.

With BTC having a mere $500 million market cap compared to yellow metal’s $10 trillion, “if Bitcoin archives the same market capitalization of gold, the price per Bitcoin will be $535,000,” it states.

SkyBrige predicts a “tidal wave of institutional capital,” that involves hedge funds, public company treasurers, insurance companies, pension funds, RIAs, banks and brokerage firms, and a Bitcoin ETF.

Currently, BTC is trading around $30,500, down from Sunday’s $34,850 high, a level Scaramucci encouraged people to buy BTC saying that even now, “You’re still way early to Bitcoin.”

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Author: AnTy

Greenpro Capital to Invest $100M in Bitcoin; Will Replace Cash With BTC on Balance Sheet in Q1

Greenpro Capital to Invest $100M in Bitcoin; Will Replace Cash With BTC on Balance Sheet in Q1

Greenpro “fully believe in BTC as a store of value” and sees other crypto-assets like ETH as a better return option. Bitcoin investments have become the way to pump the company shares in 2020.

The Kuala Lumpur headquartered Nevada corporation, Greenpro, has announced its intention to set up a Bitcoin Fund for investment. The company will use its subsidiary, cryptocurrency exchange CryptoSX, to acquire its BTC stake.

The decision to launch a Bitcoin fund has been made in the light of the ongoing mass adoption of BTC by banks, hedge funds, insurance companies, and institutions, said the company in its official announcement.

Greenpro also believes that Bitcoin, the world’s most widely-adopted cryptocurrency, is a reliable store of value as such the company’s crypto strategy will produce significant value to the company.

The company not only has a belief in BTC but also other cryptos like Ethereum which by providing better returns, preserve the value of their capital as such a better option than holding cash in their balance sheet.

This year first MicroStrategy, which has invested more than a billion-dollar in BTC as a reserve asset, and then Square with its $50 million investment has given value to BTC as a replacement to cash as a reserve asset. Greenpro CEO CK Lee, who recently received an Honorary Ph.D. in Finance and Cryptocurrencies from Rivera University located in France said,

“We fully believe in BTC as a store of value. I’ve instructed our investment bankers to raise debt in Q1, 2021 of up to US$100 million to invest in BTC. The Company will also invest its own cash into BTC.”

In response to the news of Bitcoin investment, the shares of Greenpro Capital jumped 133% in pre-market on Monday. After going as high as $2.41, a price level that was last seen in October of this year, GRNQ shares have settled around $1.87 for now.

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Author: AnTy

Cryptocurrency Market Sees $1 Billion USD of Real Capital Flowing Out of Altcoins

Cryptocurrency Market Sees $1 Billion USD of Real Capital Flowing Out of Altcoins

For most of the altcoins, the deep losses have already been reverted in this week of Pump-Dump-Pump.

XRP has taken the entire crypto market down with it.

The cryptocurrency carnage that occurred on late Wednesday night wiped out about $62 billion from the market.

XRP has lost 63.5% of its value since Monday when Ripple CEO Brad Garlinghouse tweeted that SEC is going to sue them for selling unregistered securities in 2013.

XRP/USD went as low as $0.212 before recovering to the $0.263 level.

Still, shorting XRP won’t be as fun here as “Funding rate is absolutely insane. Similar to the funding rate for BTC during the March capitulation. This can short squeeze so hard,” noted trader CryptoSqueeze.

While the world’s largest cryptocurrency, Bitcoin barely felt the effect, as it only dropped to $22,600 and is already back above $23,000, the second-largest cryptocurrency wasn’t this lucky.

ETH went down hard, losing nearly 12% of its value as it crashed to $550, currently working on getting back to the $600 level.

When it comes to the DeFi market, the total value locked (TVL) in the space hasn’t seen much change from last weekend’s ATH of $14 billion, currently standing at $13.3 billion.

As for tokens, SUSHI nuked only to get back to the previous level soon after. Much like SUSHI, several altcoins fell hard. LINK is another example of losing easily 30% of their value only to move back halfway up.

Over the past week, the notable losers include HAKKA (51%), SWRV (35%), CRV (31%), bzrx (28%), COVER (26%), COMP (25%), YFI (18%), AAVE (9%), and UNI (8.40%).

This week, SNX was the outlier as it diverged from the rest of the DeFi world. SNX surged more than 42% in the first three days of the week only to feel the pressure and losing 24% of its value since then.

This altcoin carnage resulted in their collective market capitalization down approximately $31 billion. This amounts to about “$1b USD of real capital flows out of alt-coins using FundStrat estimations of crypto cap change per dollar invested,” noted on-chain analyst Willy Woo.

Altcoins’ loss has been Bitcoin’s gain as its dominance surpassed 70%, to reach a one-year high.

Overall, markets remain in the red going into the weekend ahead of the Christmas celebration.

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Author: AnTy

SkyBridge Capital Wants to Invest in Bitcoin & Digital Assets, Reveals SEC Filing

New York City-based global investment firm SkyBridge Capital founded by Anthony Scaramucci has filed Form 424B3 with the US Securities and Exchange Commission (SEC) on Nov. 13. As per this amendment, the $3.6 billion fund of the company will start investing in Bitcoin.

“The Company may seek exposure to digital assets (as defined herein) by investing in Investment Funds that provide exposure to digital assets,” and in companies that provide technologies related to digital assets or other emerging technologies.

The fund wishes to hold long and short positions in digital assets, known as “virtual currencies” and “cryptocurrencies” with no intrinsic value other than as a method of exchange, reads the amendment.

While having a limited history, these extremely volatile assets are typically “not issued or backed by any government, bank, or central organization.” These digital assets may trade on unregulated exchanges or are outside the US and can be shut down permanently.

It further says these assets shouldn’t be expected to be correlated or connected to traditional economic or market forces as they could decline rapidly, to even zero.

“Investment Funds may invest in digital assets without restriction as to market capitalization or technological features or attributes (including lesser-known or novel digital assets known as “altcoins”) and may invest in initial coin offerings, which have historically been subject to fraud.”

The investment may be in part or whole in digital assets or technologies that are “highly disruptive, and the future successes of such technologies are highly uncertain.”

Because of being a nascent space, the companies to be invested in maybe “rapidly eclipsed by newer and more disruptive technological advances that render current digital assets or technologies outdated or undesirable.”

Covering the regulatory aspect, the report says, it is “undefined and rapidly developing” and subject to “significant uncertainty.” This means the federal, state, or foreign governments may restrict the use and exchange of digital assets at any time, which could further limit investment funds’ ability to pursue investment strategies in digital assets or cause digital assets to lose significantly, or all, of their value.

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Author: AnTy

Top 20 Global Investment Firm Franklin Templeton & VC Illuminate Finance Invest in Curv Series A

The global investment firm Franklin Templeton and Illuminate Financial, a Fintech venture capital firm, join Curv, an institutional cryptocurrency wallet solution, as investors – joining Curv’s July 2020 Series A funding. The move sees the former two firms join the $23 million funding round, including several top investors, including Digital Currency Group (DCG), Coinbase Ventures, CommerzVentures, Google’s Digital Garage, and Team 8.

According to an email sent to the BEG news desk, Franklin Templeton will switch from a customer of Curv to an investor. This follows the successful completion of a proof of concept built by BNP Paribas that allows Curv to transfer digital assets across blockchains securely.

This partnership will see the two traditional finance heavyweights join the digital and crypto world through Curv. The institutional wallet firm aims to drive traditional finance corporations to own and hold digital assets through its Multi-party Computation (MPC) technology. MPC allows a secure transfer, storage, and management of digital assets on distributed ledgers.

Franklin Templeton aims to leverage Curv’s MPC technology to expand into the growing crypto and decentralized finance (DeFi) market on a secure platform. Curv’s MPC technology introduces a keyless approach removing all single points of failures to help institutions securely move assets and deliver them instantaneously on a blockchain.

Joe Boerio, EVP, Chief Risk & Transformation Officer at Franklin Templeton, believes joining Curv as an investor will improve security when transferring assets across blockchains with the MPC technology – protecting the system “against cyber breaches and insider collusion.” He said,

“We are excited to participate in Curv’s journey as it sets a new standard for digital asset security and scales its business across major financial institutions across the globe.”

Over the past few months, governments worldwide have taken a front foot in regulating the virtual currency industry to curb illicit activities. Due to this, first-time institutions entering the field are leaning towards licensed institutional wallets to store their digital assets. Curv, in particular, has witnessed a growth in its client base, offering an enterprise-grade infrastructure for these institutions ensuring they securely deploy these solutions. Itay Malinger, Curv CEO and Co-founder said,

“The addition of Franklin Templeton is a barometer of the traditional industry’s shift into digital assets, and a broader desire to bring public blockchain-based offerings to market.”

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Author: Lujan Odera

Social Capital Reveals its ‘Big Bet’ Bitcoin Investment During Investor Call

In its investor conference call, Social Capital revealed its Bitcoin investment made in 2013.

The company CEO Chamath Palihapitiya, who is a bitcoin proponent, revealed last week that the company invested in Bitcoin seven years back when the price of BTC ranged between $13 to $1,200.

Today, Bitcoin is trading above $10,400.

In the Sept. 15 call, while talking about the company’s aim to “partner with iconic technology companies,” and the plan to take Opendoor public, Chamath likened his latest bet with that of Bitcoin, which belongs to the same category as Tesla and Amazon.

“I believe in this the same way that I believed in some of our other big bets that we’ve made, whether it was Bitcoin in 2013, Amazon in 2015, Tesla in 2016, and Virgin Galactic in 2019. We really try to find companies that we think are run by exceptional leaders with great asymmetric upside, which can 10x in 10 years.”

With Social Capital looking to raise $2 billion for three new blank cheque companies and even planning to go public itself to become the “Warren Buffett of tech investing,” it would be the first publicly-traded company of significant market value to invest in the leading cryptocurrency.

Bitcoin History

This isn’t the first time Chamath has talked about investing in the undisclosed amount of Bitcoin, but he hasn’t clarified if it was a private or fund investment.

A minority stakeholder at the Golden State Warriors and chairman of Virgin Galactic, he also worked as a senior vice president of Facebook from 2007 to 2011.

Earlier this year, he called bitcoin a “fantastic hedge” and advised that “everybody should have 1% of their assets in bitcoin.” He had shared in a separate interview that he bought “a lot” of BTC in 2013 and, at one point, had “almost 5% of all the bitcoin.”

Chamath has called the flagship cryptocurrency a “schmuck insurance” which will “protect our wealth” because it is an uncorrelated hedge to the government’s decision-making.

According to him, the gold 2.0 “is either zero or it’s millions.”

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Author: AnTy

Blockchain Capital Becomes the 27th Member to Join the Facebook-Backed Libra Association

  • Blockchain Capital, an investment company that was among the first ones to finance crypto-based projects, has joined Libra Association, the governance body spearheading the Facebook-led Libra blockchain project.

In a press statement shared with Bitcoin Exchange Guide, Libra Association stated that one of the giant venture capital firms in the industry has become its latest member. The association further added that Blockchain Capital will advise on various aspects in regards to its payment system.

Blockchain capital is also set to offer its various experts as well as different industry figures for use by the association, Libra’s chief of policy and communication Dante Disparte stated.

The Libra Association now has 30 members who are working together to design a “more equitable payment system” with Libra.

Blockchain Capital’s co-founder and managing partner, Bart Stephens stated that his company believes that modern technology can be used to enhance financial access in the world. He said:

“Leveraging blockchain technology to improve financial access and promote innovation has been at the core of Blockchain Capital’s portfolio strategy.”

Blockchain Capital was started in 2013 and has so far invested in more than 80 companies within the blockchain and crypto industry inclusive of Ripple and Coinbase.

The Libra Association was started in June 2018 following Facebook’s release of a white paper for its intended stablecoin project dubbed Libra. At that time, the association included various global firms as founding members such as Mastercard, Visa, PayPal, eBay, Stripe, Uber, Andreessen Horowitz as well as Coinbase. However, most of them have departed the association following regulatory pressure and scrutiny from the authorities.

Libra Association has added various firms this year such as Shopify and in efforts to revitalize the association. However, the firm is still miles away from its target of 100 members.

The association which is based in Switzerland has also been active in appointing top executives and on Thursday, the firm announced the appointment of ex HSBC CEO as the chief of its operating firm, Libra Networks LLC. The association had also previously announced the appointment of Stuart Levey, HSBC’s ex legal officer as its CEO.

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Author: Joseph Kibe

Robinhood Soars To $11.8 Billion Evaluation After $200 Million Series G Funding

  • Robinhood announces $200 Million in recent series G funding led by D1 Capital Partners.
  • A statement from the US-based brokerage startup has disclosed that the new cash injection will go into improving their products and overall user experience.

Robinhood has closed its Series G funding at $200 Million. The Brokerage application firm made this announcement today via their official blog.

The new cash injection brings their company valuation to $11.2 Billion. D1 Capital Partners will onboard as the new investors to the California based startup. The firm highlighted that the funds would go into the improvement of their core product as well as their customer experience.

“With this funding, we’ll continue to invest in improving our core product and customer experience.”

They recently participated in a similar Series F funding lead by TSG Consumer Partners and IVP in July, raising a cool $320 million. This bolstered their valuation to $8.6 Billion after raising $280 million at an $8.3 billion valuation in May.

Launched in 2016, they have seen their user account numbers swell from roughly 1 Million on launch to about 13 Million currently. Their exponential growth was recorded in the 2020s Q1 registering more than 3 Million accounts facing multiple outages a flaw they have since fixed.

Halted UK expansion

The popular crypto-friendly app revealed that they have had to shelve their expansion plans into the United Kingdom market. They were forced to close and delete information from an online waitlist they had set up for potential clients after receiving approval from the Financial Conduct Authority (FCA) to commence operations in the jurisdiction. They would instead focus on consolidating their position in their home markets.

Robinhood’s latest woes could be attributed to a tragedy involving a 20-year-old who allegedly committed suicide after, unfortunately, misinterpreting output from the app. Their put options category insinuated that the latter had lost close to $730,000 while, in fact, it wasn’t the case. The firm has since restricted the Put options category imposing age restrictions and a $250,000 donation to the American Foundation for Suicide Prevention kitty.

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Author: Lujan Odera