US Crypto Exchanges Believe Regulatory Oversight Could Help Them Surpass Binance

US Crypto Exchanges Believe Regulatory Oversight Could Help Them Surpass Binance

Cryptocurrencies have grown exponentially in the last six months. However, the regulation of platforms that offer exposure to them is behind.

Regulatory Oversight Set To Pay Off

According to a Bloomberg Crypto report, regulation seems to be catching up with certain areas of the crypto universe. Government authorities are paying close attention to platforms that offer crypto services.

Even though previously, crypto exchanges operated without any oversight from authorities, the narrative seems to be shifting. The first indication is the UK’s Financial Conduct Authority (FCA) which has banned the world’s largest crypto exchange by trading volume from operating in its territories.

Following this development, US authorities are also reportedly taking a closer look into the business practices of Seychelles-based Binance Holdings Ltd with the Internal Revenue Services, Commodity Futures Trading Commission, and the US Department of Justice launching separate investigations into the centralized exchange.

This seemingly unfortunate event has tipped the scale in favor of several US exchanges.

These centralized exchanges are Coinbase Global, Gemini, Kraken, and Bittrex, which offer crypto custodial services to US customers. According to Gemini co-founder Cameron Winklevoss, these exchanges play a long-term game in the crypto trading dominance, given that Asian exchanges have continued to rule the burgeoning crypto industry.

“We’re trying to be the fastest tortoise in the race. The long game pays off over time,” Cameron added.

The Gemini crypto exchange sees this as an opportunity, given that it is a regulated entity.

Other US-based crypto exchanges have also come under regulatory oversight to attract institutional investors, hedge funds, and family offices. Coinbase Global is a publicly-traded company and has its shares listed on Nasdaq. Kraken has a regulated bank charter license in Wyoming, while Gemini helped create the Virtual Commodity Association in 2018 as a watchdog in the rapidly expanding crypto space.

Binance Leads The Pack For A While Yet

For now, Asian-originated crypto exchanges still control the crypto markets, with Bloomberg noting that Binance, OKEx, and Huobi have the highest 24-hour trading volume as of July 12.

Even though Binance has generated little in value from its US subsidiary, its daily spot trading volume is reportedly 100 times that of the Gemini exchange, according to Coinmarketcap. It also offers the most exposure to crypto-assets due to its rapid system of listing hot coins. This contrasts with Coinbase, which only listed Dogecoin this June after the meme token became a major hit earlier this year.

Meanwhile, centralized exchanges may not be the only threat to authorities. According to Bloomberg, the booming decentralized finance (DeFi) sub-sector may present a greater challenge. This is because platforms that offer access to these financial services do not observe know-your-customer (KYC) protocols and are largely decentralized with no central authority.

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Author: Jimmy Aki

Central Bank CBDC’s Could Enhance Cross Border Payments: BIS, IMF, World Bank at G20

Central Bank CBDC’s Could Enhance Cross Border Payments: BIS, IMF, World Bank at G20

While Central banks seem to be focusing more on the domestic use of cross-border networks of central bank digital currencies (CBDC), the Bank of International Settlements (BIS) believes CBDCs should be used beyond borders.

CBDC Proposed At G20

In a report published alongside the International Monetary Fund (IMF) and the World Bank, the BIS proposed a cross-border network of CBDCs to the G20.

Although cross-border networks are usually criticized for their high cost, low speed, limited access, and insufficient transparency, the global finance triumvirate believe CBDC could change that.

The report analyzed how CBDCs could facilitate enhanced cross-border payments through integration and cooperation. This includes basic compatibility tests and finding common ground between various national efforts in order to reap the full benefits of digital currencies.

The report then dwelled on the importance of interoperability between CBDCs since various CBDCs would roll out at different paces in several jurisdictions.

“If different jurisdictions’ CBDC projects are coordinated effectively, the clean slate presented by CBDCs might be leveraged to enhance cross-border payments,” the paper explained.

While no central bank has launched a CBDC yet, most CBDC studies and development efforts from the apex banks have been largely focused on domestic use and not cross-border payments.

When central banks were asked earlier this year whether they were thinking of exploring CBDCs’ cross-border use, the majority said no.

The survey which was carried out in the first quarter of 2021 with 50 central banks as participants showed that most central banks have not yet taken a firm position on the CBDC issue.

While more than 25% were considering allowing retail CBDC use by non-residents, 14 and nearly 20% said that they are not yet considering this but may do so in the future. Only 8% of the central banks initially considered allowing cross-border retail issued CBDC, while others said they might do so in the future.

Central Banks Exploring CBDCs

Several central banks around the world are currently working on studying or developing pilot tests for digital fiat. Different countries seem to have taken different approaches to CBDCs in terms of design, research, and development efforts.

China’s digital yuan is still leading the game. The country has distributed more than 200 million yuan in digital currency as part of pilot projects across the country. It has conducted trials of its digital currency across different provinces, including Shenzhen, Suzhou, Xiongan, and Chengdu.

China also intends to test its digital yuan with foreign athletes and visitors during the Beijing Winter Olympics to be held in 2022.

Many countries have also piloted CBDCs for cross-border use. This includes France, Switzerland, Singapore, and Bahrain among others.

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Author: Jimmy Aki

CEO Jesse Powell Says Kraken Exchange Could Go Public Next Year

CEO Jesse Powell Says Kraken Exchange Could Go Public Next Year

Jesse Powell, Chief Executive Officer of crypto exchange Kraken, has confirmed that the firm plans to go public next year.

In an interview with Bloomberg, Powell said the exchange’s initial public offering (IPO) could happen anytime between 12 to 18 months.

Kraken Could Become Second US-based Crypto Firm To Go Public

When it happens, Kraken would become the second US-based crypto firm to go public after Coinbase. Coinbase went public through a direct listing on the Nasdaq Stock exchange in April with a valuation of around $65 billion at the time.

According to Powell, Kraken is already going through the rigors of becoming a publicly traded company. Although he declined to give the firm’s target valuation, he said their valuation would reflect their success in bringing crypto to the world. Powell’s words,

“We’re on a mission achieving to bring crypto to the world, and our valuation hopefully will be a reflection of our success in that mission.”

This is not the first time news of Kraken’s IPO plans would be revealed. In March, a Fox Business reporter, Charles Gasparino, claimed that the company was looking at going public through a special-purpose acquisition company (SPAC) or an initial public offering (IPO).

However, a Kraken spokesperson said the company was “too big” to go public via a merger. With the SPAC and direct listing route probably off the table, Powell’s announcement means Kraken may pursue an initial public offering.

Speaking further during the interview, when asked if people are trading differently after the recent sell-off, Powell said that the people selling are mostly newer to the market.

According to him, the old investors that have been holding for a long time are still accumulating. He said that the new investors who are yet to understand the market are not willing to hold onto their assets.

Powell added that people who came into crypto for the quick gains leave once the price drops, while those who truly understand the fundamentals remain.

Kraken Expanding Services

With more than 6 million clients in almost 190 countries, Kraken is one of the five largest crypto exchanges in the world.

The firm has done remarkably well this year as it continues to boost crypto adoption. According to Powell, the firm got more sign-ups this year than in any other year.

Kraken also expanded the reach of its services by launching its mobile app for both iOS and Android users in Europe and the United States.

Earlier this year, reports had it that the San Francisco-based exchange was in talks to raise a new funding round to boost its valuation to surpass $20 billion.

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Author: Jimmy Aki

Best Cryptocurrencies with Growth Potential to Buy In June

Despite the market downturn, cryptocurrencies are still popular. If you’re new to the space, it could be mind-boggling picking the best digital asset to invest in.

These virtual currencies have grown exponentially, and early adopters have substantial returns to show for their investments. While there are thousands of crypto assets on the market, these five cryptocurrencies have the best growth potential coming into the month of June.

Top Cryptocurrencies to Buy With Massive Potential

PancakeSwap (CAKE)

PancakeSwap is a decentralized finance (DeFi) application and automated market maker (AMM) that enable users to convert digital tokens on its platform. It is also popular due to the massive returns users get from farming its liquidity pool.

Aside from users providing liquidity and earning CAKE (a native token) and SYRUPs back, PancakeSwap runs a lottery session, and users can stake CAKE to win a specified amount of CAKE.

Rivaling popular decentralized application (dApps) platform Ethereum, PancakeSwap was created in response to the high gas fees users have to pay while using the second most valuable cryptocurrency network.

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In market movement, CAKE has experienced the best of both worlds. Surging over 30% year to date, PancakeSwap’s CAKE has traded as high as $42.91 in the April boom. However, the recent downtrend of Bitcoin has seen CAKE lose a third of its value in the May crypto market crash.

Currently, 1 CAKE currency trades for $16.71, with a 6.28% slump on the daily trading chart. This is an opportunity to get in on the action.

Elrond (EGLD)

Elrond with crypto ticker EGLD is our second best crypto investors need to put their money on. With a $1.5 billion market cap, Elrond is a blockchain platform that aims to fast-track the shift to Web 3.0 with its sharding technology.

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Elrond’s native token EGLD has also benefited from the recent crypto boom surging to a mouth-watering $243.4 on April 11. But the decline of Bitcoin has seen it lose 70% in the massive selloffs that followed regulatory tightening in China.

Trading at $86.48, the altcoin is poised for a remarkable recovery once the broader crypto market escapes the volatile stage.

BitTorrent (BTT)

If you are familiar with the entertainment industry, then you will understand what BitTorrent (BTT) aims to achieve.

Bram Cohen created BitTorrent in 2001 to make people share files trustlessly, thereby bypassing go-betweens. This way, content creators can receive fees from consumers without having to go through intermediaries.

Ranked forty-eight on the global crypto chart, BitTorrent is home to over 100 million active users who share everything from music to videos, documents, and podcasts.

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Eventually acquired by the Tron network in 2018, BitTorrent has grown exponentially as more users flock to its P2P communications protocol.

Riding on the crypto wave of April, BitTorrent’s BTT TRC-10 native token surged to $0.1068 from $0.003337 a few weeks earlier. However, following the general market downtrend, BTT has seen negative price action and sits 3.74% with a valuation of $0.00355.

With a market cap of over $2.3 billion, BitTorrent is a crypto protocol to keep on your watchlist.

Siacoin (SC)

Altcoin Siacoin (SC) is the native utility token of blockchain-based, decentralized storage platform Sia.

The protocol is looking to onboard users with a decentralized storage marketplace and at a competitive rate.

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Speaking on its mission, the Sia development team said Sia wants to become the backbone storage layer of the internet, and if anything is to come out of this, Sia is performing well in the market.

Ranking ninety-third on the charts, Sia boasts of over $750 million in market valuation. However, Siacoin is also facing volatility like other altcoins mentioned here and trades below the dollar mark at $0.01564.

Qtum (QTUM)

Quantum (that’s how it’s pronounced) is a proof-of-stake (PoS) blockchain protocol that leverages Bitcoin’s unspent transaction output (UTXO) model and Ethereum’s smart contract capabilities.

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Qtum aims to offer crypto users all the benefits of the two large-cap protocols without any of their deficits. Qtum has dipped from 30 days high of $27 to $9.30.

Ranking eighty-second on the chart, QTUM has a market cap of $964 million and trades at $9.28.

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Author: Jimmy Aki

Billionaire Ray Dalio Believes Digital Yuan Could Become Global Reserve Currency

Billionaire Ray Dalio Believes Digital Yuan Could Become Global Reserve Currency; Could Run on Ethereum

According to billionaire investor Ray Dalio, the CBDC race seems to be heating up, and China may emerge a winner.

Digital Yuan To Outpace Digital Dollar

Bridgewater Associates founder Ray Dalio pointed out that China’s digital yuan could serve as a threat to the continued dominance of the US dollar in the global marketplace.

Speaking on CNBC’s Managing Asia, the American investor noted that China is clearly at the forefront with its digital yuan program compared to the US, which is still undergoing consultation.

This delay by the world’s largest economy could enable the Asian nation’s digital version of its fiat to become more competitive than a potential digital dollar.

According to Dalio, the US will launch a digital dollar, but it will not be the most competitive digital currency given the US rising debt level. However, he pointed out that it will still be viable given the US position as a market leader.

Earmarking China’s digital yuan, Dalio said it would be the most competitive given its pricing and return on investment. He also pointed out that the digital yuan would be a viable alternative to the dollar if it enjoys international acceptance and comes with attractive interest rates.

CBDCs, short form for central bank digital currencies, have been the rave ever since the decentralization era began with Bitcoin. BTC -1.72% Bitcoin / USD BTCUSD $ 36,661.69
-$630.58-1.72%
Volume 34.62 b Change -$630.58 Open $36,661.69 Circulating 18.72 m Market Cap 686.46 b
2 h HRF Bitcoin Development Fund & BitMEX Disburses $210,000 in Grants to Developers 3 h Marathon’s Mining Pool, Marapool, to Signal for Taproot in a Change of Heart 4 h Riksbank Governor Believes Crypto Regulation is Certain, But Exchanges & Trading Is Already Regulated

They are state-backed digital versions of a country’s fiat and are usually issued by the apex bank. The majority of national banks have launched independent CBDC programs in pivoting to a digital economy.

Even some small countries have launched a digital version of their currency, but China has drawn the world’s attention given the implication of its program.

The digital yuan, which started six years ago, has been labeled a ‘threat’ by financial experts to the US dollar’s position as the world’s reserve currency. Dalio points to a potential toppling of the greenback.

The International Monetary Fund (IMF) data puts China at 2% behind the Pound, Euro, and the Japanese Yen. The US leads with 60%, and Dalio says this may not be for long.

According to the American investor, China’s digital yuan could scale up to 10 and 15% in the next couple of years.

China is close to launching its digital yuan, with pilot tests presently ongoing in its major cities. The forthcoming Olympics in Beijing has been chosen as the official wholesale launch.

The US Federal Reserve is only just picking the cue, and Fed boss Jerome Powell has announced plans to publish a discussion paper on the likely impact of a CBDC in the country.

Smart Contracts Compatible With CBDCs

China is planning to launch a digital yuan and make them ‘smart’ with time, per reports from Sina Finance. This is according to the director of the Science and Technology Supervision Bureau of China’s regulatory commission Yao Qian.

Speaking at the International Finance Forum 2021, Qian said that national banks should not only aim to launch digital versions of their currencies but add smart contract functionality. This will enable it to run on the Ethereum blockchain. ETH -2.63% Ethereum / USD ETHUSD $ 2,630.81
-$69.19-2.63%
Volume 27.35 b Change -$69.19 Open $2,630.81 Circulating 116.12 m Market Cap 305.48 b
4 h Riksbank Governor Believes Crypto Regulation is Certain, But Exchanges & Trading Is Already Regulated 6 h Billionaire Ray Dalio Believes Digital Yuan Could Become Global Reserve Currency; Could Run on Ethereum 10 h Ethereum (ETH) Holders Grows by 8.16 Million, Despite the 60% Drawdown

However, Qian advises that this should not be rushed given the inherent challenges smart contracts come with as the industry is still young. He said that the best approach would be to start with a simple, smart contract and then build more complex ones as security and legality become clearer.

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Author: Jimmy Aki

Judge’s Comments During SEC Hearing Could Be Favorable for Ripple: Unaffiliated Attorney

Judge’s Comments During SEC Hearing Could Be Favorable for Ripple: Unaffiliated Attorney

Attorney Jeremy Hogan, a partner at Hogan & Hogan legal firm, has pointed out some comments made by the magistrate Judge that may favor Ripple against the U.S. Securities and Exchange Commission (SEC).

Hogan observed the judge commenting in a virtual hearing over the SEC’s attempt to obtain personal financial information of Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen.

Judge’s Comments May See Ripple Come Out Triumphant

In a YouTube video, Hogan said Judge Sarah Netburn had interrupted the discussion to clarify a statement she felt was untrue.

Netburn is not the primary judge in the case; she is assisting District Judge Analisa Torres with discovery and mediation.

According to Hogan, Netburn gave the impression that Ripple’s XRP cryptocurrency may not be a security as the SEC claims. According to Hogan, the judge said,

“My understanding about XRP is that not only does it have a currency value, but it has a utility, and that utility distinguishes it from Bitcoin and Ether,”

Attorney Matthew C. Solomon representing the defendants said XRP had the same intrinsic attributes as Bitcoin and Ethereum, which is branded as a “commodity.”

Hogan, who is not in any way related to the case, said that the second comment Netburn made that was as striking as the first was questioning whether everyone who sold XRP was selling illegal securities.

This was based on the SEC’s prior argument. But the SEC lawyer said that only Ripple and its affiliates could be accused of selling the XRP as illegal securities under the regulator’s Securities Act.

Hogan then surmises that the SEC lawyer’s statement clears the way for cryptocurrency exchanges in the United States to possibly re-list XRP again with no fear of reprisal.

Others believe Hogan’s argument doesn’t hold much weight. One of them is popular trial lawyer Stephen Palley.

Palley believes that an “offhand comment” made by a magistrate judge in charge of mediation and discovery doesn’t mean Ripple would win the case. On exchanges relisting XRP, Palley feels crypto exchanges like Coinbase and Gemini would be foolish to take such a stance in an ongoing case.

Ripple Having A Good Run So Far

Hogan said that Netburn’s comments are exactly what Ripple would want the court to think. He said,

“If I’m Ripple, I’d be feeling pretty good that my mediator and consulting summary judgment judge just said on the record what I essentially argued in my pleadings.”

The lawsuit against Ripple, filed in December 2020 as the former chair Jay Clayton vacated his position, alleges that co-founder Chris Larsen and CEO Brad Garlinghouse aided and abetted Ripple’s unregistered sales of securities in 2013 and 2015, respectively.

Ripple has responded, stating that it had never offered or sold XRP as an investment and that XRP holders do not acquire any claim to Ripple’s assets, hold any ownership interest in Ripple, or have any entitlement to share in Ripple’s future profits. Following the SEC’s lawsuit, numerous crypto exchanges came out hard on the company by delisting its XRP token.

Despite the backlash from businesses in the U.S, Ripple’s Asian market continues to boom. The blockchain firm has partnered with a subsidiary of Japan’s SBI Morningstar, which plans to pay its shareholders XRP tokens as dividends.

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Author: Jimmy Aki

NYDIG Sees Institutional Order Books Pushing BTC Holdings to $25B by Year-End

  • NYDIG believes it could grow its AUM to $25 billion as institutions are still hungry for Bitcoin.
  • Increasing institutional demand is growing at impressive levels, giving more hope for Bitcoin’s long-term trajectory.
  • Institutional demand remains a significant point of focus for the crypto market, with more firms expected to enter into the industry soon enough.
  • In line with the phenomenon, the New York Digital Investment Group (NYDIG) expects to quadruple its assets under management this year.

This week, Ross Stevens, the founder and chairman of NYDIG, made an appearance at the MicroStrategy World Conference 2021. In his session, the executive explained that the crypto investment company could be sitting on $25 billion in assets under management (AUM) by year’s end.

Stevens explained that NYDIG’s AUM figures currently stand at about $6 billion. However, the firm has seen enough institutional investors’ commitment to push the figure past the $25 billion mark. Considering that none of the investors have walked back their intention to commit to Bitcoin, the firm expects a windfall going into the year.

NYDIG is a fund management firm that operates as the crypto-facing subsidiary of Stone Ridge Holdings Group LLC. The company provides an avenue for large investors to improve their crypto exposure. Last year, it helped facilitate the purchase of $100 million by MassMutual, the Massachusetts-based insurance giant.

As the Wall Street Journal reported at the time, MassMutual, a company with about $235 billion in AUM, had made the purchase through a backchannel with NYDIG. The insurance giant also purchased a minority stake in NYDIG for $50 million. The deal will also see NYDIG custody MassMutual’s Bitcoin stash. Now that more institutions appear to be lining up to make purchases, NYDIG could be in for its most fruitful year.

Institutional Demand: A MicroStrategy Case Study

Stevens had made the revelation to Michael Saylor, a businessman who has become overly familiar with cryptocurrencies over the past year. Since August 2020, under Saylor, MicroStrategy has purchased over $1.3 billion worth of Bitcoin, becoming one of the industry’s largest institutional players.

The company has benefited immensely from the decision. MicroStrategy built a $425 million Bitcoin holding when the asset was only trading at about $11,000. When the asset eventually grew to $21,000 apiece, the firm announced that it had issued $650 million in convertible senior notes and would use most of the raised capital to purchase more of it.

Now that Bitcoin is in the high $30,000s, it is anyone’s guess just how much MicroStrategy’s decision to move to the Bitcoin standard has grown its reserves.

Along with its bottom line, MicroStrategy’s Bitcoin obsession seems to be helping its stock price. In December, Tyler Radke, an analyst at investment banking giant Citigroup, downgraded MicroStrategy’s stock based on fears that the company was overpricing its Bitcoin play. As the analyst explained, while the company had made a sizable return on its Bitcoin investment, the market appeared to have been overpricing its core business.

However, Bitcoin’s rally in December helped the company’s reserve to balloon even more. While Radke’s criticism of MicsoStartey’s core business has some merit, the market appeared to have overlooked that as its stock surged over 100 percent. The stock, which traded at $286.21 when Radke downgraded it, has now jumped past the $740 mark and is surging on.

The Virginia-based firm is precisely the type of client that NYDIG appears to be looking for. Deep-pocketed and not afraid to take risks, MicroStrategy has become a whale among whales in the Bitcoin market.

Although some could criticize the effects of increasing institutional action on Bitcoin’s liquidity, everyone seems to agree that it would benefit the market in the long run.

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Author: Jimmy Aki

Institutions Allocating 6.5% to Bitcoin Could Drive BTC Price to Hit $500,000: Ark Invest

Institutions Allocating 6.5% to Bitcoin Could Drive BTC Price to Hit $500,000: Ark Invest

Ark Invest, the New York-based Investment Management LLC, has featured Bitcoin as one of the disruptive innovations that macro-focused investors should keep a close eye on. The firm published its annual ‘Big Idea’ report yesterday, highlighting the growing market trends and potential innovations that could take the world’s center stage in this decade.

Per Ark’s report, Bitcoin and other crypto technologies such as the DeFi ecosystem have grown significantly in their fundamental value proposition. The management advisors estimate that the value of BTC can shoot up by $40,000, should all S&P firms allocate 1% of their cash to Bitcoin. An additional allocation to boost the position to 6.5% could see Bitcoin’s price skyrocket to $500,000.

The report further highlights that BTC prices are more fundamentally driven than the 2017 bull-run when its Google searches had hit all-time highs. Notably, 60% of the coins in circulation have not been moved for more than a year, signaling what Ark refers to as a long-term outlook by Bitcoin investors.

Institutions Are Getting Ready for Bitcoin

With public companies like Microstrategy and Square investing their cash reserves on BTC, Ark notes that they set the trend for other institutions to hedge against inflation. The analysis estimates that Bitcoin’s market cap could scale from $500 billion to $1-$10 trillion within the next five to ten years. That said, capital allocators ought to factor in the cost opportunity of ignoring BTC as an emerging asset class. The report reads,

“Untethered from traditional rules and regulations and generally uncorrelated to the behavior of other asset classes, bitcoin seems to have earned a strategic allocation in well-diversified portfolios. During the past decade, bitcoin is the only major asset with consistently low correlations to traditional asset classes.”

Bitcoin’s daily trading volume has also increased to the point of comparison with large-cap stocks. The leading cryptocurrency market cap enjoys an average daily trading volume of $6 billion, a figure that Ark estimates could grow past the U.S equities volume and FX market within 4 and 6 years, respectively.

Meanwhile, the Bitcoin open market interest hit a new all-time high on the CME to total $1 billion as of Q4, 2020. Ark noted that this indicates the crypto market growth given that investors can now access BTC in sophisticated means.

BTC Portfolio Allocation

Ark ran a Monte-carlo simulation on 1 million portfolios diversified with various asset classes for the portfolio allocation criteria. The efficient frontier captured optimal allocation positions to be between 2.55% to 6.55%,

“Based on daily returns across asset classes during the past 10 years, our analysis suggests that allocations to bitcoin should range from 2.55% when minimizing volatility to 6.55% when maximizing returns.”

The report also touched on Bitcoin’s value proposition as a gateway to other crypto niche products, especially DeFi. While the innovations are still young, Ark mentioned that they are potentially the new wave of financial experimentation.

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Author: Edwin Munyui

BlackRock CEO: We’re Watching Bitcoin, It Could Be Another Store Of Wealth But Not Proven Yet

BlackRock CEO: We’re Watching Bitcoin, It Could Be Another Store Of Wealth But Not Proven Yet

The Bitcoin market needs to have a broadening so that large sums of money can be invested without moving the value for it to be successful, said Larry Fink, the founder of the world’s largest asset manager with $8.67 trillion AUM.

The price of Bitcoin might still be stuck up around $30,000, but institutions are still watching it and getting involved.

As we reported, the world’s largest asset manager who has $8.67 trillion in assets under management as of January 2021, recently filed with the SEC to add Bitcoin futures as an eligible investment to two of its funds.

Now, BlackRock CEO Larry Fink again talked about all the excitement around the leading cryptocurrency. “We’re watching it, we’re enjoying the conversation,” said the founder and Chairman of the asset manager giant.

While talking about working together on climate change, which he sees as an “investment risk” and sharing optimism around capital coming into China, Fink also addressed the Bitcoin market in an interview with Bloomberg, where he says, Bitcoin “is still very small.’

“It can move in a very large increment with small movements of money. So, it is not the market for the calm,” he said but added that he “understands the enthusiasm around it.”

Fink reiterated his views that this asset category is very small relative to other asset categories. The untested, highly volatile market is getting a lot of attention from the business media, which believes it’s gonna have a huge future, he said.

“People are fascinated about it,” Fink said. “It could be another store of wealth. But right now, it’s still untested. It has huge volatility.”

Fink is playing it neutral now as he says that the leading digital currency “has not proven yet on the long term viability of it.”

“For it to be truly successful, it is gonna have to have a broadening of a market, and you can invest large sums of money without moving the value,” he said. “So we are watching it, we’re enjoying the conversation” and fascinated by how many people have enjoyed the conversation.

The CEO also said that some form of a digitized currency would be playing a bigger role in the future, but it’s to be seen if it would be Bitcoin or some other currency.

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Author: AnTy

Bank of Singapore’s Chief Economist Says Cryptocurrencies Could Edge Out Gold

Bank of Singapore’s Chief Economist Says Cryptocurrencies Could Edge Out Gold

But certain risks, such as trust, volatility, and regulatory clarity, need to be addressed first.

The Bank of Singapore is the latest institution to favor cryptocurrencies in its push to usurp gold. Optimism over the asset class is high, with the industry showing signs of more growth.

While Bitcoin and several other large-cap cryptos appear to be on the upsurge again, sentiment about the crypto market is gaining momentum.

However, many are still hung up on the leading cryptocurrency’s recent performance, and talks of the asset usurping gold as the global reserve currency have continued.

No Way Over Fiat, but Time’s Up for Gold

The latest body to weigh in on the prospect of Bitcoin overtaking gold is the Bank of Singapore. According to a report from The National news, the bank recently published a research note where it touted cryptocurrencies as a possible replacement for gold down the line.

In the report, the Bank of Singapore argues that cryptocurrencies are unlikely to replace fiat currencies – practically pouring cold water on the hopes of those who are touting the digital yuan and other Central Bank Digital Currencies (CBDCs).

Mansoor Mohi-uddin, the bank’s chief economist, explained that cryptocurrencies are an inefficient unit of exchange, and central banks won’t be able to print them at will in times of crisis. However, he also explained that digital assets are more likely to become the major safe-haven asset. With the market showing significant potential over the past few years, there is every reason to believe that cryptocurrencies could easily overtake gold.

To do this, the bank believes that cryptocurrencies will need to overcome some hurdles. For one, it pointed out the need for trusted institutions that will provide custody for investors. Many cryptocurrencies would also need to be more liquid, allowing high levels of trading and other activities to take place. Improved liquidity will also reduce volatility, a problem that the crypto industry has had for years.

Everyone Loves Crypto

The Bank of Singapore isn’t the only institution pumping Bitcoin to overtake gold eventually. In a recent opinion piece, Anthony Scaramucci and Brett Messing, two executives at New York-based hedge fund SkyBridge Capital, explained that Bitcoin is ripe for investment as its ownership is now as safe as gold and government bonds.

SkyBridge Capital filed with the Securities and Exchange Commission to launch its Bitcoin fund last December. When the fund launched fully earlier this month, the New York firm claimed that it had as much as $310 million in exposure to the leading cryptocurrency.

Investment banking giant JP Morgan has also touted Bitcoin’s chances of taking up more of gold’s market share. In an investment note, the company’s strategists said:

“The adoption of bitcoin by institutional investors has only begun, while for gold, its adoption by institutional investors is very advanced. If this medium to longer-term thesis proves right, the price of gold would suffer from a structural headwind over the coming years.”

Institutional investment is sure to push Bitcoin and the entire crypto market even higher. With government regulation expected soon, the future definitely looks bright for this fledgling market.

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Author: Jimmy Aki