Canada’s Largest Fund Group Partners with Galaxy Digital, Completes $72M IPO of a Bitcoin Fund

Amidst Bitcoin’s crazy rally, Canadian mutual fund manager CI Financial Corp. raised $72 million in an initial public offering of a Bitcoin fund.

Founded in 1965, CI Financial is Canada’s largest independent mutual-fund manager with C$215.6 billion in assets under management as of Nov. 30.

While Toronto-based CI Financial will be managing the fund, Mike Novogratz’s Galaxy Digital will be the sub-advisor and execute the Bitcoin trading on behalf of the fund. On this collaboration, Novogratz commented,

“Fuel to the fire. So excited to partner with Canada’s largest fund group.”

The IPO attracted interest from a wide range of investors, including individuals, institutions, high-net-worth investors, and financial advisers.

Each share of the CI galaxy Bitcoin Fund was sold at C$12.88 ($10). It will be listed on the Toronto Stock Exchange to trade in U.S. and Canadian dollars.

The fund enables the company’s clients to hold the largest cryptocurrency through existing investment channels without going on new platforms. CI Financial Chief Executive Officer Kurt MacAlpine in an interview said,

“Having a product that can be bought directly — it can be bought through their financial adviser on behalf of them — it just makes their life a lot simpler than having to address their desire for Bitcoin via different structures and wallets.”

The closed-end fund will invest directly in Bitcoin, which will be held in segregated cold storage.

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Author: AnTy

Bitcoin Adoption has Achieved Another Milestone; Primed for Additional $600B Demand

According to JPMorgan Chase, Massachusetts Mutual Life Insurance Co.’s recent investment in Bitcoin means there is potential for additional institutional demand for the largest cryptocurrency in coming years.

In its previous report, the analysts at the banking giant had said that the institutional adoption of Bitcoin has just begun.

As for the latest round of $100 million purchase by the 169-year old insurance behemoth, Bitcoin’s adoption is spreading from wealthy investors and family offices to insurance firms and pension funds, wrote the strategists including Nikolaos Panigirtzoglou.

Although pension funds and insurance firms are unlikely to make high allocations, the strategists said even a small shift could be significant for the cryptocurrency.

“MassMutual’s Bitcoin purchases represent another milestone in the Bitcoin adoption by institutional investors,” the strategists said.

“One can see the potential demand that could arise over the coming years as other insurance companies and pension funds follow MassMutual’s example.”

This bullish commentary for Bitcoin didn’t end here; the strategies went to say that if the insurance firms and pension funds in the US, UK, Japan, and Europe allocate just 1% of their assets into Bitcoin, that would see an additional $600 billion in Bitcoin demand.

Currently, the largest cryptocurrency has a market cap of $356 billion.

However, the JPMorgan strategies also wrote that the regulatory hurdles related to risk levels and liability mismatches could limit their Bitcoin allocation for these traditional investors.

Bitcoin is having a great time in 4Q20, in which it has rallied 78% while being up over 166% YTD. After the correction last week, Bitcoin started surging on the weekend, and currently, around $19,100, it is yet again ready to go for the all-time high.

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Author: AnTy

DeFi Project Nexus Mutual Suffers $8.25M Attack; Only Founder’s Personal Wallet Affected

DeFi insurance project Nexus Mutual has suffered an attack.

But for the crypto community, the only good thing is that Nexus Mutual founder Hugh Karp’s personal addresses were only affected.

On Monday, the team took to Twitter to share that at 9:40 on Dec. 14 itself, the personal address for the project creator was attacked and drained by a member of the mutual itself.

“Only Hugh’s address was affected in this targeted attack, and there is no subsequent risk to Nexus Mutual or any members,” noted the team.

370,000 NXM worth $8.25 million has been stolen from Hugh’s personal wallet.

As per the initial investigation, this targeted attack was made on Hugh’s hardware wallet by gaining remote access to his computer. By modifying the popular Ethereum wallet MetaMask’s extension, the attacker tricked Hugh into signing a different transaction to transfer the funds to the attacker’s address.

“Since on hardware wallets you often can not validate practically what you are actually signing the weakest point to attack is the interface that creates the sign request – e.g., the Dapp,” said Martin Köppelmann, founder of the prediction market platform Gnosis.

As such, one needs to make sure that the private key only signs what the owner intends to, for which multiple signier or sanity checks must be used to separate the transaction request from signing it, advised Köppelmann.

According to the Nexus Mutual team, the attacker completed his KYC earlier this month and then switched the membership to a new address on Dec. 3rd.

“The mutual is not impacted; the pool of funds and all systems are safe. Our investigation is ongoing to identify the attacker and how they operated,” added the team.

Hugh also took to Twitter to urge the attacker to return the stolen NXM to him, and in return, they will drop the investigation and grant them the $300k bounty.

The project currently has a total value locked (TVL) of about $94 million, and its token NXS is currently trading at $0.226, down 1.91%. The token with a market cap of $15.65 million has a year-to-date performance of about 28%.

Meanwhile, Wrapped Nexus (wNXM), which the attacker used to move the funds, is seeing a bigger drop of over 16% to $16.41.

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Author: AnTy

MassMutual Invests $100M In Bitcoin; ‘Other Return-Hungry Insurance Companies’ Buying BTC

The 169-year old mutual insurer, MassMutual, purchased $100 million in Bitcoin for its general investment fund. This bitcoin investment is part of the company’s broad strategy to take advantage of new opportunities that give it “measured yet meaningful exposure to a growing economic aspect of our increasingly digital world.”

Massachusetts Mutual Life Insurance Co. is the latest mainstream firm to jump on the Bitcoin bandwagon, with its BTC investment representing 0.04% of the general investment account of about $235 billion.

“We see this initial investment as a first step, and like any investment, may explore future opportunities,” said spokeswoman Chelsea Haraty.

Analyst Mati Greenspan called this “one small step for an insurance company and a giant leap for digital assets.”

A HUGE Deal

The company also announced a $5 million minority equity stake in New York-based fund management company NYDIG, a Stone Ridge subsidiary that provides cryptocurrency services to institutions.

As we reported, the institutional manager bought 10k BTC in October as its “primary treasury reserve asset.”

NYIDG has more than $2.3 billion in bitcoin and other crypto assets under management and will now provide custody services to MassMutual’s Bitcoin too. Ross Stevens, the founder and executive chairman of NYDIG told, Wall Street Journal,

“Other return-hungry insurance companies have also bought bitcoin for their general accounts through his firm. Interest rates that are hovering near zero and a depreciating dollar have made bitcoin appear more attractive.”

The insurance behemoth, which has been around since 1851, has joined MicroStrategy and Square’s ranks that poured money into the world’s largest cryptocurrency amidst its growing institutional adoption.

Earlier this month, Bitcoin made an all-time high and is currently on a pullback, trading under $18,000, after the 100% run-up in 4Q20. Mike Novogratz, the founder of Galaxy Digital, commented,

“This might be the most important BTC news of 2020. An insurance company buys bitcoin for its general account. This needs fed approval. It’s a HUGE deal.”

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Author: AnTy

Nexus Mutual Expands Beyond DeFi, Now Provides Insurance Cover for CeFi

DeFi insurance provider Nexus Mutual has announced Custody Cover’s launch for the users of centralized exchanges and custodians. This means users can now purchase the insurance cover for the funds put into an organization to safely keep their crypto assets’ private keys on behalf of them.

It will cover the users if the custodian gets hacked and the user loses more than 10% of their funds or if withdrawals have been halted for more than three months. Initially, six custodians are supported: BlockFi, Nexo, Celcius, inLock, Ledn, and Hodlnaut.

Nexus Mutual’s second and the latest product aims to “provide protection outside of the DeFi space.” In the long-term, the idea is to cover risks both in and outside the crypto space.

“Having trustless coverage for CeFi services is hugely market expansionary for DeFi,” said the head of research at the crypto fund, The Spartan Group.

A building block for the broader ecosystem, Custody Cover is working towards encouraging more widespread adoption and DeFi onboarding by helping protect newcomers, said the team. A partner of the crypto fund, The Spartan Group, noted,

“Given the amount of assets sitting with CeFi lenders, this move could scale Nexus’ active cover by a multiple of current cover. Potentially very accretive to NXM over time.”

This DeFi project has about $100 million in TVL (total value locked), while its token NXM is trading at $23.90.

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Author: AnTy

Fidelity Head Launches New Bitcoin Index Fund; $100,000 Minimum Buy-In Price

One of the largest mutual funds in the U.S., Fidelity Investments, is enhancing its efforts in the Bitcoin and crypto space with its chief strategist, Peter Jubber, starting an institutional-grade and high net worth clients-focused BTC index.

According to a filing sent to the Securities Exchange Commission (SEC), Fidelity Investments has launched a new Bitcoin index fund, ‘Wise Origin Bitcoin Index Fund I, LP’ that targets high et worth investors and institutions. A $100,000 minimum buy-in value is required by the index fund following the demand by corporations and accredited investors on Wall Street on crypto investments.

The Wise Origin Bitcoin fund was launched by the head of strategy and planning at Fidelity Investments, Peter Jubber, in conjunction with the mutual fund’s brokerage and distribution divisions. The fund aims to provide a gateway for accredited investors on Wall Street to dip their feet into crypto.

Fidelity is known for its soft stance on crypto investing, owning stakes in crypto companies such as Canadian mining firm, 8Hut, and providing custodial services to institutions. Jubber, also a well-known enthusiast and evangelist of Bitcoin and blockchain, in 2017 said the firm was sketching out a decade long plan on the impacts and opportunities that blockchain technology offers to traditional finance.

Peter will lead the ‘Wise Origin Bitcoin Index Fund’ as the executive director and FD’s Fund’s president. Reports on Forbes also confirm that a Delaware based firm, FD Funds GP will become a general partner to Fidelity’s new BTC fund.

Fidelity’s reports on the cryptocurrency market this June showed that over 36% of big institutional investors were taking up digital assets, and another 80% of them stating they find crypto appealing. Moreover, a recent report by the mutual fund concluded there is an increasing interest in Bitcoin as a store of value with the world’s witnessing unprecedented fiscal and monetary policies.

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Author: Lujan Odera

Alipay Makes Blockchain Record as China Pays Less Attention to Bitcoin

These are interesting times for the blockchain niche in China. Xiang Hu Bao is a blockchain-dependent mutual aid network that is run by Alipay, a payment processor. It just made a new impressive record with its more than 100 million customers.

Opened in October 2018, the platform offers a comprehensive health package that sees to the needs of those afflicted with more than 100 kinds of disease conditions. Apart from being a blockchain-dependent network, Xiang Hu Bao also has some other perks for those who want to make use of it. For example, the users on the platform do not need to cough out any admission fees or even make any kind of upfront payments. As far as risk is concerned on the platform, it is shared by everyone involved and the same goes for the payouts too. Now with more than 100 million customers on its platform, Xiang Hu Bao looks more than prepared for the future.

China Focuses on Blockchain

Apart from becoming the darling of private investors, there are other things going on very well for the blockchain community. Probably the most amazing of all these is the fact that the government of China is now placing a lot of attention to blockchain technology. This technology got a massive boost when it was loudly promoted and endorsed by President Xi Jinping. Ever since the announcement was made, the Chinese government has been making concerted efforts to consolidate the adoption of blockchain technology in its projects at every level.

The goal is to ensure that blockchain technology plays a very big role in the economic advancement of the country. This explains why the Bank of China is making aggressive use of blockchain technology all through its insurance sector. The goal of this is to improve and promote efficiency.

As it is now, it does not look like the Chinese government is going to reduce its efforts in this regard. On the 7th of November, the China International Import Expo was held and it was yet again another pointer to what the government of China has in mind. At the event, the Shanghai Customs, the Shanghai Municipal Commission of Commerce and representatives from six different banks appended their signatures to form what is now known as the Blockchain Alliance. This is a group that is going to assist in the use of blockchain at several levels to promote trade across international borders.

Chinese Government Means Business

That is not even all. The government of China is also ready to spend as much as $2 billion just to improve the blockchain network in the country. This is a goal that the government is planning to achieve by 2023. Things are really looking good for the blockchain niche in China at the moment. In addition to the fact that the government is interested, several private interests are also doing the same. These include big brands like Alibaba and Huawei and all these can mean just one thing – that blockchain technology has a bright future in China.

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Author: Ali Raza

Vanguard to Create a Blockchain Platform with Symbiont for $6 Trillion Forex Market

Vanguard, a mutual fund giant of the financial industry, has started a partnership with Symbiont, a company backed by Nasdaq Ventures. Together, these two firms are set to develop a $6 trillion currency market platform focused on forex trades.

The main idea of the platform is to lower costs. Vanguard manages $5.2 trillion USD for very wealthy clients and it wants to decrease transaction costs without cutting its profits, so using the blockchain is a pretty good idea.

The CEO of Symbiont, Mark Smith, affirmed that the platform has been operational for around two months and that some of the first trades were already. Despite the progress, the platform was still not properly launched, as there are still some tweaks to be made.

Symbiont, which was founded in 2013, has raised over $35 million USD. The company had a seed round in 2014, a Series A in 2017 and recently a Series B round, in which it was able to raise over $20 million USD.

A spokesperson from Vanguard affirmed that the company is currently piloting the project to improve the efficiency of forex trades and reduce risks, which could help it to provide a much more efficient service. If the project is successful, it will certainly be an important milestone for Wall Street, as there is no similar platform at the moment.

The two companies have already worked together before. The two developed an index fund back in 2017 that would streamline the process of data collection using smart contracts.

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Author: Gabriel Machado