Paul Tudor Jones Prefers Crypto Over Gold Which is “Clearly Winning The Race”

Hedge Fund Manager, Paul Tudor Jones, Prefers Crypto Over Gold Which is “Clearly Winning The Race”

Much like the crypto community, the billionaire investor said he would rather own Bitcoin itself than the futures-tied ETF but said investors should “take great comfort” that it’s approved by the SEC.

Billionaire investor Paul Tudor Jones sees cryptocurrency as a hedge against inflation and said, “It would be my preferred one over gold at the moment.”

The founder of hedge fund Tudor Investment Corp. said in an interview on CNBC that he prefers crypto assets over traditional hedges like gold; as such, he has “crypto in single digits in my portfolio.”

Back in June, Jones had said that Bitcoin is a great way to protect his wealth over time, calling it the world’s biggest store of wealth.

“We’re moving into an increasingly digitized world.” “Clearly there’s a place for crypto, and clearly it’s winning the race against gold at the moment.”

The precious metal, which is a traditional safe-haven asset is only up 3.08% this month but down 5.92% this year so far. Bitcoin, meanwhile, has spiked 50% in October to hit a new all-time high on Wednesday at $67,000 and recorded 126% gains YTD.

Jones also called cryptocurrency “the single biggest threat to financial markets.”

The latest rally came amidst the launch of the first US bitcoin-linked exchange-traded fund. In just two days, ProShares Bitcoin Strategy ETF has amassed over $1 billion in assets.

But much like the crypto community, Jones said he would rather own Bitcoin itself than the futures-tied ETF. Still, the ETF will do just fine, said Jones adding, investors should “take great comfort” that it’s been approved by the U.S. Securities and Exchange Commission (SEC).

The crypto bull also talked about being worried about inflation which he said poses a major threat to the US financial markets and the recovering economy.

To Tudor Jones, inflation is not transitory, as Federal Reserve Chairman Jerome Powell has been saying. Last week, data from the Labor Department showed that the consumer price index rose 0.4% from August and 5.4% from the prior year, the largest annual gain since 2008.

But Fed economists still predict inflation to be back under 2% next year, according to the minutes from last month’s Federal Open Market Committee (FOMC).

This is “absolute death” for the traditional portfolio structure of 60% stocks and 40% bonds, said Tudor Jones, adding, the Fed’s current monetary policy is the most inappropriate and that Powell may not be the best person to run the central bank right now.

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Author: AnTy

Pimco is Already Trading Crypto But Now Plans to Invest in Certain Assets & Learn DeFi

$2.2T Fixed-Income Giant, Pimco, is Already Trading Crypto, Now Plans to Invest in Certain Assets & Understand DeFi

“We’ll take baby steps in an area that’s rapidly growing,” said Pimco CIO Daniel Ivascyn.

Pimco, the asset manager giant with $2.2 trillion in assets under management, has been dabbling in cryptocurrency for some time and now plans to gradually invest more in crypto assets.

“Now we’re looking at potentially trading certain cryptocurrencies as part of our trend-following strategies or quant-oriented strategies, then doing more work on the fundamental side,” said chief investment officer Daniel Ivascyn in an interview with CNBC.

“So this will be a gradual process where we spent a lot of time on the internal diligence side speaking to investors. And we’ll take baby steps in an area that’s rapidly growing.”

Ivascyn’s comments came as Bitcoin hit a fresh all-time high at $67,000, and today Ether nearly touched its $4,380 ATH.

Some of the company’s hedge fund portfolios are already trading crypto-linked securities, he said.

“We’re trading from a relative value perspective. So we’re not taking directional exposure, but we’re looking to take advantage of mispricings between the cash product, popular trust that trades on the exchange, and then the futures.”

“So that was a starting point for us in a very narrow segment of our business.”

Pimco is also taking an interest in decentralized finance (DeFi), which one has to understand because “it will be disruptive…in our business in particular,” Ivascyn said.

The firm is currently working on scenarios where it could provide them with a competitive edge “in a rapidly changing environment that offers a pretty significant value proposition,” particularly for younger generations — the new generation of the investment community.

Unlike Pimco, hedge fund manager David Einhorn finds cryptocurrencies “very complicated” as such; he hasn’t chosen to invest in them.

Greenlight’s Einhorn prefers gold as an inflation hedge, in contrast to billionaire investor Paul Tudor Jones, but said,

“I’m not negative on [cryptocurrencies]. … They may continue to do extremely well. I just haven’t chosen to invest in them.”

Earlier this month, he had put crypto in a “too hard” bucket because it was unregulated and unlimited. “I don’t have a strong view that this is some enormous waste or this is some phenomenal opportunity. I think it’s too difficult,” he said at the time.

In his interview this week with CNBC, Einhorn said that the Federal Reserve “doesn’t have the stomach to fight inflation” because policymakers are afraid to trigger a market correction or a recession. This means, “they are really left with bad choices.”

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Author: AnTy

NYAG Now Goes After Crypto Lenders, Nexo Says It Doesn’t Offer Services In New York Anyway

NYAG Now Goes After Crypto Lenders, Nexo Says It Doesn’t Offer Services In New York Anyway

After settling charges with Tether and Bitfinex for $18.5 million, the New York State Attorney General has now asked two cryptocurrency lending platforms to cease activities in New York. Three other platforms have also been directed to provide information about their business.

In a redacted letter, Letitia James said the Office of the Attorney General “was in possession of evidence of unlawfully selling or offering for sale securities and/or commodities.”

Crypto lending platforms that are interest-bearing accounts offering investors a rate of return on crypto deposits are required to register with the Office of the Attorney General (OAG) if they are operating within the state or offering their products to New Yorkers said James on Monday. She added,

“Cryptocurrency platforms must follow the law, just like everyone else.”

The two companies are reportedly Celcisus and Nexo. Celsius Network is already targeted by Texas, Kentucky, Alabama, and New Jersey regulators for its interest-bearing accounts, which the local regulators allege violate local securities laws.

This month, the company with over 1 million registered users and $25 billion in assets under management raised $400 million from equity firm WestCap and Canada’s second-largest pension fund Caisse de dépôt et placement du Québec, at a valuation of $3 billion.

Nexo Finance took to Twitter to clarify that it already restricts access to its Nexo Exchange Service and Nexo Earn Interest Product to the citizens or residents of the States of New York, Texas, Kentucky, New Jersey, Alabama, Oklahoma, Arkansas, and Washington, as such the letter doesn’t make any sense.

“Nexo is not offering its Earn Product & Exchange in NY so it makes little sense to be receiving a C&D for something we are not offering in NY anyway.” “But we will engage with the NY AG as this is a clear case of mixing up the recipients of the letter. We use IP-based geoblocking.”

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Author: AnTy

UK Losses $200 Million to Crypto Frauds, Indian Exchanges Block Accounts Dealing in Malicious Activities

UK Losses $200 Million to Crypto Frauds, Indian Exchanges Block Accounts Dealing in Malicious Activities

Frauds related to cryptocurrencies surged over 146 million pounds ($200 million) in the first nine months of the year, said the UK Police.

The amount of money lost in 2021 so far is 30% more than all of 2020.

The Police also said that more than 7000 reports of crypto-linked frauds were reported to the U.K.’s national reporting center for fraud and cybercrime this year. More than half of these victims were between the age of 18 and 45 years, they added.

Additionally, fraudsters often used a fake celebrity endorsement to lure people in, with about 79% of all complaints reporting a fake endorsement.

“Reports of cryptocurrency fraud have increased significantly over the past few years,” said Temporary Detective Chief Inspector Craig Mullish.

“Being online more means criminals have a greater opportunity to approach unsuspecting victims with fraudulent investment opportunities.”

Elsewhere, India’s three cryptocurrency exchanges WazirX, CoinDCX, and CoinSwitch Kuber, have blocked over 200,000 accounts in the past six months, citing malicious activities.

CoinSwitch Kuber alone suspended 180,000 accounts between April-September 2021 and is currently monitoring the daily activities of around 200k accounts that may be malicious, CoinSwitch Kuber CBO Sharan Nair told BusinessLine.

Binance acquired WazirX meanwhile has blocked 14,469 accounts. The exchange also received 38 requests from the law enforcement agencies of India and the US, UK, France, Austria, Switzerland, and Germany to block the accounts.

To track malicious activities, WazirX has collaborated with crypto compliance platform TRM Labs.

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Author: AnTy

Brazil’s Central Bank Governor Expects Crypto Investment in Country to Surpass $9 Billion

Brazil’s Central Bank Governor Expects Crypto Investment in Country to Surpass $9 Billion

Brazilians have already bought more than $4 billion in crypto this year up to August, as per the central bank report.

The total value of cryptocurrencies purchased by Brazilians this year has exceeded $4 billion, according to the data released by the Central Bank of Brazil in a report last week.

A total of nearly R$ 23.3 billion, $4.270 billion has been traded from January to August-end. In August, the purchase value was $496 million.

In August, Roberto Campos Neto, the president of Brazil’s central bank, also said that they need to pay attention to cryptocurrencies as they are here to stay. “We need to reshape the world of regulation,” he added.

The value of crypto assets bought by Brazilians reached its peak in May at $756 million. That month, the Brazilian market broke a record by trading R$ 826 million ($150 million) in Bitcoin in a single day.

But since then, they saw a drop in June and July at $695 million and $583 million, respectively. Still, these numbers have been much higher than the figures reported earlier this year in February at $386 million and $357 million in March.

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Last week, Deputy Governor for Monetary Policy at the central bank, Bruno Serra, said the Brazilians investment in crypto assets abroad is potentially three times greater than in American shares. He further said that there is a potential for this investment in crypto to reach R$ 50 billion (more than $9 billion in USD).

Serra also believes that people’s interest in cryptocurrencies is unlikely to fade anytime soon.

Earlier this month, as we reported, a bill advanced through Brazil’s House of Representatives, which has been in development since 2015, to regulate cryptocurrency in the country.

The bill calls for creating clearer definitions of crypto, will require virtual asset service providers to register, and further aims to crack down on crypto crimes by imposing higher fines and harsher prison sentences.

After being approved by a special committee of the Chamber of Deputies, the bill is currently in the hands of the Chamber’s Plenary, and once green-lit by them, it will advance to the Senate to be discussed before finally going to the president for a final nod.

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Author: AnTy

Fortnite Developer Epic Games ‘Welcomes’ Crypto and NFT Games After Steam’s Ban

Fortnite Developer Epic Games ‘Welcomes’ Crypto and NFT Games After Steam’s Ban

Last month, CEO Tim Sweeney said they “aren’t touching NFTs as the whole field is currently tangled up with scams.”

Steam, a video game digital distribution service, is no longer allowing blockchain-based games that involve non-fungible tokens (NFT) and cryptocurrency.

“Applications built on blockchain technology that issue or allow exchange of cryptocurrencies or NFTs,” are specified under the category “what you shouldn’t publish on Steam” on Steamworks’ onboarding page. The rule has been added this month.

SpacePirate Games, the studio behind a sci-fi action-adventure title called Age of Rust, spoke up about the rule on Twitter, saying Steam’s parent company Valve was kicking blockchain games off the platform “because NFTs have value.”

“We chose to be upfront about blockchain gaming & NFTs. As a result, we finally lost the battle with Steam,” it said, adding: Steam is not allowing those items on its platform that can have real-world value.

While this could be true, Valve allows people to exchange virtual goods for Steam Wallet funds through the community market.

Searching for “NFT” and “crypto” on Steam currently brings up 12 and 62 results, respectively.

A U-Turn

While Steam is severing any ties with crypto, competitor Epic Games has announced that it is “open to games that support cryptocurrency or blockchain-based assets.”

While there will be some limitations when it comes to allowing games featuring NFTs, the company told The Verge that they are willing to work with “early developers” in the “new field.”

The Fortnite developer further said that the games would have to comply with financial laws and make it clear how the blockchain is actually used and need to have appropriate age ratings as well. Developers won’t be able to use Epic’s payment service to accept crypto either, and they would have to use their own payment systems.

Epic co-founder and CEO Tim Sweeney also took to Twitter to clarify that they welcome any blockchain-related games as the technology underpinning crypto “has utility whether or not a particular use of it succeeds or fails.”

“Epic Games Store will welcome games that make use of blockchain tech provided they follow the relevant laws, disclose their terms, and are age-rated by an appropriate group. Though Epic’s not using crypto in our games, we welcome innovation in the areas of technology and finance,” he wrote on Twitter.

Interestingly, just late last month, Sweeney had said that they “aren’t touching NFTs as the whole field is currently tangled up with an intractable mix of scams.” While there are “interesting decentralized tech foundations,” it is also rife with scams, he had said.

But now, he has made a U-turn to compete with Valve by announcing support for something that the company baned.

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Author: AnTy

Estonia‘s Head of AML Agency Proposes a 28x Increase in Minimum Capital Requirement for Crypto Firms

Estonia‘s Head of AML Agency Proposes a 28x Increase in Minimum Capital Requirement for Crypto Firms

Estonia’s head of anti-money laundering government agency wants to scrap its current crypto regulations and start afresh. Up until now, Estonia has been a crypto-friendly jurisdiction, but that could soon change.

Estonia should “turn the regulation to zero and start licensing all over again,” the Financial Intelligence Unit (FIU) chief Matis Mäeker, who was appointed in May this year, told a local news outlet.

Mäeker explained that crypto companies had made “tens of billions of euros per year,” but instead of helping the Estonian economy, it has moved to other countries “Their only goal is to get an Estonian license and use it to turn over very large sums, while Estonia gets nothing out of it,” Mäeker said.

The chief has proposed stricter rules for licensing crypto startups and raising the minimum capital requirements from €12,000 (US$13,900) to €350,000 ($405,000).

A bill proposing regulations for crypto licenses will also be introduced in the Estonian parliament, Mäeker said. In the meantime, he called for existing licenses to be revoked.

Last year, the FIU revoked 1,808 cryptocurrency licenses, and currently, there are 400 licenses in Estonia.

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Author: AnTy

$9.5T Asset Manager BlackRock is Studying Crypto, “We Believe That Will Play A Very Large Role”

$9.5 Trillion Asset Manager BlackRock is Studying Crypto, CEO says “We Believe That Will Play A Very Large Role”

Larry Fink, the CEO of the world’s largest asset manager, BlackRock doesn’t understand much about Bitcoin but said he sees huge opportunities in digitized currencies.

“I see huge opportunities in a digitized crypto-blockchain-related currency and that’s where I think it’s going and that’s going to create some big winners and some big losers,” he said during his conversation with CNBC.

But when it comes to the trillion-dollar asset BTC, Fink said he is “not a student of bitcoin” and does not know where it’s going to go.

“I can’t tell you whether it’s going to $80,000 or zero.”

“But I do believe there is a huge role for a digitized currency and I believe that’s going to help consumers worldwide.”

Interestingly, Bitcoin jumped 5% to nearly $57,300 on Wednesday, continuing the green month in which the cryptocurrency is up more than 30%.

When further asked about JPMorgan CEO Jamie Dimon calling the leading cryptocurrency “worthless,” Fink said he’s “probably more on the Jamie Dimon camp.”

In an interview this week, Dimon said, “(Bitcoin) makes no difference to me” but added, “Our clients are adults. They disagree. That’s what makes markets.”

But that doesn’t mean, the asset manager isn’t interested in the crypto market as on being asked when he has shifted in his view in offering access to crypto to BlackRock investors, Fink said,

“We’re studying blockchain and the whole concept of crypto and we believe that will play a very large role.”

Back in February, BlackRock’s chief investment officer of global fixed income Rick Reider said the firm had “started to dabble” in crypto assets. Then in a filing with the Securities and Exchange Commission (SEC) dated July 31 showed that the BlackRock Global Allocation Fund had been trading Bitcoin futures. The asset manager giant has also invested millions in Bitcoin mining companies.

On Wednesday, the New York firm reported a 16% increase in revenue to $5.05 billion while its assets under management jumped 21% to $9.46 trillion, as of Sept. 30 from $7.81 trillion a year earlier.

Earlier this week, at the Institute of International Finance, Fink had commented on inflation, saying he doesn’t believe that it is transitory.

“I’m not calling for stagflation — I don’t see any evidence of that — but do I see persistence in inflation? Yes.”

“I think it’s more than transitory related to supply-chain issues and commodity prices.”

While President Rob Kapito said at the time some clients are increasing allocations to various alternatives from 1% to up to 20%, the CEO said some are allocating more to equities.

“I don’t think there’s one global trend of going in and out of one product because [there are] inflationary fears and some clients don’t believe in that.”

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Author: AnTy

US Dollar Hits One-Year High But Bitcoin No Longer Holds an Inverse Correlation with it

The crypto market is feeling some blues as the Bitcoin price gets back under $55,000.

The week started on a bullish note as Bitcoin went to nearly $58,000, recording a 32.5% uptrend in October. Late on Tuesday, the price dipped to $53,700 only to recover back above $56,600 in the next few hours.

“We believe the market is healthy, and these are, in fact, normal pullbacks that are to be expected,” said Philippe Bekhazi, CEO and co-founder of crypto trading platform XBTO.

“The market is seemingly pricing in the probability of an ETF approval this month. So profit-taking is natural.”

Bitcoin going red has the total market cap also sliding by 4% in the past 24-hours but still keeping well above $2.34 trillion.

Much like in the Q4 of 2020 when Bitcoin gradually made its way to 2017 all-time high of $20,000, after the lacking performance in the second half of Q2 and the Q3, the leading cryptocurrency is flirting with a run towards its ATH of nearly $65,000.

This, however, has been happening while the dollar is near its one-year high. The US dollar index dropped on Wednesday to 94.3 after making a new 2021 high at 94.56 just the day before, a level last seen in late September.

However, Bitcoin no longer holds an inverse correlation with the USD, according to Kaiko’s latest report.

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Historically, BTC has moved in the opposite direction to the US dollar, but this trend seems to have dissipated this year. Both the currencies have been experiencing an upward trajectory in contrast to traditional equities, which closed in September with their worst performance since the start of the pandemic.

“Bitcoin’s rising correlation with the DXY suggests that despite a growing risk-off environment, both fiat and crypto assets are treated similarly by investors,” wrote Kaiko.

The Bullish and the Bearish

Meanwhile, the crypto community has started to get bullish yet again, with many calling for new peaks for the trillion-dollar crypto asset in the historically bullish Q4.

While Vijay Ayyar, head of Asia Pacific with crypto exchange Luno sees a record high for Bitcoin at around $80k and $85k possible, others are seeing $100k getting breached this time.

Technically, Bitcoin’s run-up has activated an inverted head and shoulders chart pattern that can see the cryptocurrency climbing to $79k.

As we have reported for the past couple of days, the open interest for Bitcoin derivatives contracts has also been increasing rapidly, now sitting around $20 billion, the level last seen in mid-May. The funding rate has also started to increase, with the highest currently on Deribit at 0.0363%.

In the options market, open positions for the $80k strike call for December 2021 expiry now vastly surpass those for the $40k strike put, according to data from options exchange Deribit.

Not to mention, optimism that the first Bitcoin futures exchange-traded fund (ETF) may be approved by the SEC as soon as this month has traders and investors jumping back into Bitcoin.

That’s why this week’s decline is “not cause for concern,” according to James Butterfill, an investment strategist at CoinShares.

“It hasn’t broken trend and the fundamentals of increase chances of an SEC approval and increasing institutional adoption are likely to be supportive of price in the coming weeks.”

However, not everyone thinks the approval is coming. “The market is over-emphasizing (SEC Chairman) Gary Gensler’s public comments about support for the (CME) and futures,” said Jeff Dorman, CIO at digital asset management firm Arca.

“We believe the concerns the SEC has raised historically regarding market manipulation of bitcoin and unregulated exchanges have not been solved.”

Besides CME’s future basis rising fast, signaling a lot of buying, the Rothschild Investment Corp. disclosed an increase in their GBTC and ETHE holdings. It now owns 138,790 shares of GBTC and 303,554 ETHE, up from 141,405 GBTC and 13,817 ETHE shares, respectively.

However, the Crypto Fear and Greed Index is back to flashing “greed” at a reading of 70 when just last month it was 44 and in “fear” territory. Just yesterday, the index showed “extreme greed” in the market at a reading of 78, so market sentiments are fast-changing and led by price.

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Author: AnTy

MoonPay Raises $400 Million in Second Round Funding, Valuation Now at $3.4 billion

MoonPay Raises $400 Million in Second Round Funding, Valuation Now at $3.4 billion

US-based crypto payment startup, MoonPay has completed a $400 million capital injection raise bringing the total valuation of the company to $3.4 billion, a blog post from The Information reads. The funding aims to enhance the features of the platform and boost the global adoption of cryptocurrencies.

This funding round was co-led by venture capital firm Tiger Global Management and Coatue Management aiming to grow the user acquisition rates.

MoonPay launched in 2019 with a simple aim to increase cryptocurrency adoption across the globe. With a team of just two young entrepreneurs — co-founders Ivan Soto-Wright and Victor Faramond — the company set out to create a simple and secure software solution that would enable people from all over the world to participate in the “biggest digital revolution since the internet” the company’s blog reads.

The platform allows users to use their credit and debit cards to buy crypto assets or other digital assets on marketplaces such as OpenSea, Bitcoin.com, Abra, ZenGo, Spot, and Trust Wallet.

Last month, MoonPay partnered with the crypto wallet provider Blocto to provide a fiat on-ramp to the Flow blockchain and easier access to NFT marketplaces. Earlier in the month, the company announced a strategic partnership with Bitmart exchange allowing users to better optimize the trading experience.

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Author: Lujan Odera