South Koreans Are Trading XRP & BTT More than BTC and Ether

South Koreans Are Trading XRP & BTT More than BTC and Ether

Bitcoin kimchi premium is also taking a drop after surging to 22% as Upbit temporarily suspends fiat (KRW) deposits and withdrawals, and Bithumb sees an “increasing” inflow of BTC.

Kimchi premium has been flying high until it wasn’t.

Bitcoin prices on South Korean exchanges at one point today were as much as over 22% higher than other cryptocurrency exchanges. But soon it took a big hit and dropped to about 13%. Ki-Young Ju of data provider Crypto Quant noted,

“It seems someone finally figured out how to arbitrage this Kimchi premium opportunity. The trading volume in 30min time frame on Upbit, the largest Korean exchange, was bigger than Binance’s. This drop seems related to Kimchi pullback.”

As of writing, Bitcoin is trading at $56,740 on Coinbase Pro, $56,824 on Binance, $64,247 on Upbit, $64,469 on Bithumb, and $64,494 on Coinone.

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Bithumb, according to CryptoQuant, is seeing an “increasing” inflow of BTC, unlike all the other exchanges which have been seeing a decrease.

A possible reason for the drop could be Upbit announcing a temporary suspension of fiat (Korean Won) deposit and withdrawals and KRW account registration services.

The suspension has been due to an urgent inspection by the KRW deposit and withdrawal service provider. Once this maintenance is completed, the exchange will resume the services. The translated notice reads,

“After the urgent inspection of the KRW deposit and withdrawal service provider has been completed, the KRW deposit and withdrawal and KRW account registration services will be resumed.”

However, on South Korean exchanges, the biggest trading assets by volume are a bunch of altcoins, with XRP and BitTorrent (BTT) taking the top place BTT 5.17% Blocktrade Token / USD BTTUSD $ 0.00
$0.005.17%
Volume 0 Change $0.00 Open $0.00 Circulating 55.75 m Market Cap 231.49 K
8 h South Koreans Are Trading XRP & BTT More than BTC and Ether 9 h Bitcoin Takes A Dive & Altcoins’ Drop Hard, But People Are Still ‘HODLing and Not Selling’ 1 mon Why Are Celebrities Exclusively Endorsing Tron, “Is TRX Mass Adoption On The Horizon?”
. XRP is trading nearly 16% higher at $1.10 on South Korean crypto exchanges than about $0.95 on Bitfinex. XRP -13.13% XRP / USD XRPUSD $ 0.92
-$0.12-13.13%
Volume 21.61 b Change -$0.12 Open $0.92 Circulating 45.4 b Market Cap 41.74 b
8 h South Koreans Are Trading XRP & BTT More than BTC and Ether 9 h Bitcoin Takes A Dive & Altcoins’ Drop Hard, But People Are Still ‘HODLing and Not Selling’ 9 h Ripple Wins Access to SEC Internal Crypto Discussions Regarding Bitcoin & Ether’s Non-Security Status

XRP on these platforms is actually pulling in more than double the volume of Bitcoin BTC -3.52% Bitcoin / USD BTCUSD $ 56,041.45
-$1,972.66-3.52%
Volume 74.98 b Change -$1,972.66 Open $56,041.45 Circulating 18.68 m Market Cap 1.05 t
6 h Hindenburg Research Shorts Chinese Bitcoin Mining Maker; Ebang Continues its Fundraising Spree 8 h South Koreans Are Trading XRP & BTT More than BTC and Ether 8 h Grayscale Adds Chainlink (LINK) to its Digital Large Cap Fund
and Ether ETH -7.09% Ethereum / USD ETHUSD $ 1,968.30
-$139.55-7.09%
Volume 35.9 b Change -$139.55 Open $1,968.30 Circulating 115.38 m Market Cap 227.09 b
7 h Seven-Time Superbowl Champ, Tom Brady, Is Launching an NFT Platform Called Autograph 8 h South Koreans Are Trading XRP & BTT More than BTC and Ether 8 h Grayscale Adds Chainlink (LINK) to its Digital Large Cap Fund
.

For instance, on Upbit, XRP and BTT are the two most traded crypto assets at $2.9 billion and $2.3 billion volume, respectively, versus $1.2 billion on BTC/KRW pair and a mere $428 million for ETH/KRW.

Korean investors are also piling into the nation’s crypto stocks, driven by Coinbase’s upcoming public listing.

Hanwha Investment & Securities Co., which owns a 6.15% stake in Dunamu, is the best performer among Kospi stocks this year, as it uptrends over 210% YTD.

Dunamu actually operates Upbit, which local media reported last week has also explored a possible listing on the Nasdaq.

Other shareholders in the company are also enjoying an increase in their value. Woori Technology Investment Co. and Kakao Corp., both of which have about 8% stake in Dunamu, saw their share prices increasing by 140% and 38% respectively so far this year.

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Author: AnTy

Crypto Hedge Fund Arca is the Latest to Join the Crowd of Bitcoin Trust Issuers

Meanwhile, GBTC is getting sold off with premium tanking to -3.77% and -5.27% on ETHE. Still, crypto fund assets are about to cross the $50 billion mark, up 12.5x from a year ago, that too without a US Bitcoin ETF.

Arca, the cryptocurrency hedge fund, is the latest one to launch a Bitcoin Trust product, as per the filing with the US Securities and Exchange Commission (SEC) on Thursday.

This makes sense given the explosive demand for Bitcoin funds, as we saw with the debut of the first Bitcoin ETF in Canada.

With this filing, Arca has joined several other asset managers that aim to provide exposure to Bitcoin without having the investors hold the digital assets themselves. Already, a number of asset managers like Bitwise, BlockFi, OpsreyFund, and others have been racing to launch their own bitcoin investment vehicles.

The Bitcoin products will be competing with the world’s largest digital asset manager, Grayscale.

What looks like the digital asset manager’s first foray into Bitcoin offerings launches with $100,000 so far. Unlike Grayscale’s $50k minimum, Arca is taking in $25k as minimum investments.

Meanwhile, Grayscale, which has $31 billion in its Bitcoin Trust (GBTC), holding more than 3.5% of Bitcoin’s circulating supply, is getting sold off.

Currently, GBTC is trading at a negative premium, continuing to fall this week, to its latest low -3.77%, as per Bybt. The same is the case for ETHE, on which the premium is also at its lowest level of -5.27%.

“This is panic or profit-taking selling,” said Eric Balchunas, BI’s senior ETF analyst. “It’s almost like the price of GBTC is an amplified version of Bitcoin price.”

Bitcoin, along with the broad crypto market, has been experiencing a sell-off, which is continuing today as the price of Bitcoin dumps to another low at $44,000, down 24.5% from Sunday’s all-time high of $58,300.

Michael Sonnenshein, chief executive officer of Grayscale Investments, acknowledged the risk of vanishing GBTC premium in a panel for the Bloomberg Crypto Summit on Thursday.

“It’s certainly a risk, no question about it, but ultimately price discovery in GBTC every day is driven entirely by market forces,” Sonnenshein said.

Still, crypto fund assets are about to cross the $50 billion mark, up from a mere $4 billion a year ago that too without a US Bitcoin ETF. These numbers are about the same asset level as ETFs tracking the energy sectors, noted Balchunas, only to add that it still has a long way to go because it is just one-third of gold ETFs.

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“The SEC should consider approving multiple Bitcoin exchange-traded funds at the same time, in our view, after Canada’s regulator gave its initial issuer a significant first-mover advantage. Pent-up demand could put a single U.S. winner well ahead of rivals. An ETF would force Grayscale to decide how to handle the world’s largest Bitcoin tracker,” said Dave Nadig, Chief Investment Officer & Director of Research for ETFTrends.

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Author: AnTy

Grayscale ETHE Price & Premium Crashes as Millions of Shares Flood the Market

Grayscale ETHE Price & Premium Crashes as Millions of Shares Flood the Market

Grayscale Ethereum Trust share price fell 48% and premium 94% despite the price of Ether surging past $1,000.

The shares of Grayscale’s Ethereum Product, ETHE, that had been trading at a premium of 270% on Dec. 22nd have now come down to just under 15%.

This premium has been coming down over the years; back in June, this premium was at about 950%, and before that in 2018, it was around 3,550% based on the demand for the product, price of the underlying asset, availability of other products, and the lock-up period of these shares.

The premium on ETHE has been on an incline since October, when crypto assets started rallying. But this week, the 6-months lock-up period for these shares ended, which pushed this premium down.

“A significant number of private placement investors have their lock-ups ending today and are receiving shares this week,” noted Joshua Frank, CEO at The TIE.

Grayscale’s ETH holdings are still at 2.94 million ETH, worth $2.94 billion, but with no new additions since Dec. 9.

Interestingly, the ETHE share price has fallen over 48% to Nov. 30 level of $12 while during the same period, the price of Ether rallied more than 75% to above $1,000.

The cause of this fall in ETHE price was a flood of new shares in the Grayscale Ethereum Trust. Besides the 47 million shares already outstanding, another 116 million were available to trade as their lock-up period ended.

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Because regulators haven’t approved an exchange-traded fund (ETF) for cryptocurrencies, Grayscale’s exchange-traded product works similar to a closed-end mutual fund. Here, a fixed number of shares are issued that can at times trade at premiums or discounts with a six-month lock-up period, but without a method to realign the prices.

“By failing to allow a crypto ETF in the U.S., the SEC has left retail investors exposed to significant risks via wide mispricing in less-efficient vehicles, while giving an advantage to accredited investors such as wealthy individuals, hedge funds and private-equity firms,” said James Seyffart, associate analyst for Bloomberg Intelligence.

The price of ETH actually went to the Jan. 2018 high of $1,000 on Coinbase on Sunday only to drop to $885 right after.

One trader expects ETHE investors to affect the price and send it crashing in the near future.

“What are boomers gonna do tomorrow when they see that ETH is up 70% and ETHE is down -50%? and then the next boomers and the next and the next? a reflexive cycle. down to the depths of namek.”

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Author: AnTy

Grayscale’s Trust Shares Are Trading At Huge Premiums, Arcane Research Reports

  • Grayscale Trust shares are currently trading at a ‘huge’ premium showing an increasing demand in crypto across the U.S.
  • In a report by blockchain research firm, Arcane Research, the ballooning monetary and fiscal policies in the U.S. could be the driver to increasing demand in these digital products.

In a report published by Arcane Research on the current state of the institutional crypto investment fund, Grayscale Trust, there is an increasing demand for Bitcoin (BTC) across the U.S. as inflation grows. Throughout 2020, the Fed has undergone several expansionary monetary policies (increasing dollars in the economy), which has forced investors to look towards cryptocurrencies as a barrier against inflation.

Grayscale offers publicly tradable shares with crypto as the underlying asset. Currently, the platform holds over $5 billion in digital assets, which is important as demand from U.S. investors grows. However, these shares are trading at an obscene premium, deviating wildly from actual asset prices. In the past month, Bitcoin, Bitcoin Cash, Litecoin, and Ethereum Trust funds have been trading at a “huge premium.”

The Grayscale Bitcoin Trust (GBTC) holds over $5 billion in assets, roughly 2.3% of the total value of BTC in circulation. Astonishingly, GBTC is trading at a 23% premium compared to BTC’s current price, as demand from retail investors increases. Ethereum Trust (ETHE) holds approx. 1.8% of all ETH in circulation ($873 million AuM), trading at 93.7% premium to the net asset value.

Grayscale’s Litecoin Trust (LTCN) and Bitcoin Cash Trust (BCHG) shares publicly launched three days ago following the April 2018 launch to private accredited investors.

As of Thursday, the LTCN shares were trading at a 753% premium to LTC’s price, with BCHG shares trading at a 351% premium. However, the premium in BCHG has been falling since launch as demand and arbitrage are wiped away from the pair, comparative to LTCN shares.

An Arbitrage That Doesn’t go Away

As mentioned above, such premiums should be arbitraged away. GBTC, for instance, has been trading around 7-40% premiums for the past year, showing a possible broken market. Arcane Research explains the main drivers for these premiums staying out on the market with three main drivers.

First, Grayscale’s products bought by accredited and high net worth clients, are locked up for a period before they are released to the secondary market. On the public market, these investors seek “compensation” for the lockup period.

Second, these funds are the only way U.S. investors can publicly trade cryptocurrencies through their 401k investments. This increases the demand, and hence the price for these assets.

Investors are also safeguarding themselves from the aggressive quantitative easing policies being implemented by the Fed. With an increasing debt-fueled bubble, investors are moving to crypto-assets to prevent the washed value of dollars from the impending inflation.

Finally, a considerable number of these investors may not be aware of the premiums they are paying for hence fueling the prices of the Grayscale Trust shares.

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Author: Lujan Odera

Bitcoin Transactional Fees Skyrocket with Halving Event Looming, Under 6 Hours Left

  • Bitcoin miners are now charging premium fees for transaction processing. The transaction fees have skyrocketed by over 300% from $0.63 towards the end of April to upwards of $3.00 on May 8th just a few days to the long-awaited 3rd halving event.

With just under 6 hours remaining before the third bitcoin halving unfolds, reports have emerged that BTC transaction fees have soared significantly in the past few months. Miners have increased their transactions fees with the BTC halving imminent.

The increased verification fees indicate that there are more users competing for resources within the BTC Network. Based on meticulous calculations, the network is then able to determine a premium fee for the miners as users are willing to pay more to get their transactions verified.

In the last 24 hours, bitcoin has been as low as $8,250 and as high as $9,180 BTC/USD after surpassing $10,000+ on May 7th.

300% Spike

Taking the previous industry trends as case studies, the transactional fees have always spiked onset Bitcoin halving. Towards the end of this April 2020, the transactional fee averaged at $0.62 and has only been on the on an upward trend since then.

Notably, on May 8th it settled at $3.19 marking a remarkable 300% bump. A similar trend was witnessed in 2016 as fees climbed from $0.10 to $0.62 in just a single day.

BTC halving is set to be triggered when the 630000th block is mined which has been predetermined to occur on May 13th. Miners are to bear the brunt of the halving as mining rewards per block are set to reduce by half from 12.5BTC to 6.25BTC.

The mining difficulty is also predicted to increase meaning it would be more expensive to mine. There are currently 18,374,250 BTC in circulation out the possible 21 million according to CoinMarketCap.

It’s been reported that most of its mining equipment will become obsolete after the halving. This means the end of the road for hobbyist and smaller-scale miners that can’t afford the next-gen rigs. The latest rig to be released is the WhatsMiner M30 series by MicroBT rolled out in April.

Reports of miners hoarding BTC

There have also been reports of miners hoarding BTC. They have been issuing less BTC than they are mining. This according to industry experts only fuels speculations that the BTC will increase its price post halving. Renown Industry Analyst, Chris Wood, has also urged investors to diversify their portfolios to include BTC pre halving.

Latest Bitcoin Price News and Crypto Market Updates

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Author: Lujan Odera

Grayscale’s Ethereum Trust (ETHE) Is Trading at a Remarkable 430% Premium, But Soon to Fade

Over the past year, we saw the premium on digital asset manager Grayscale Investments’ Bitcoin and Ethereum contracts skyrocketing. And just like those numerous other times, this time as well, the premium on Ether products has jumped as high as 430%.

Currently, the price of Ether on spot exchanges is around $170 while Grayscale’s Ethereum Trust (ETHE) is trading at $900.

In comparison, the premium on Grayscale’s Bitcoin product (GBTC) is small at nearly 9% which could be because of the “mismatch of supply and demand” in Ether AUM.

On Grayscale, the basic requirements to buy Ether are that one needs to be an accredited investor with a minimum order of $25,000 for a one-year lockup period.

For the first time, the firm reported ETHE inflows separately in its stellar quarterly report, showing that $50 million will be unlocked from the end of July-July, $75 million by the end of October, and $100 million by the end of 2020.

“In one month period June/July 2020 we’ll see $44.5M/$6M = 7.4x the current NAV of the float being unlocked. Second half of 2020 we’ll see 15x current float being unlocked,” stated analyst Cetris Paribus.

According to him, the ongoing high premium on Ether should be down “substantially” by September, unless there is a euphoric bull run.

Hedge funds are not institutional investors

As we reported, in Q1 of 2020, Grayscale had record inflows. ETHE also had its record quarter ever with $8.5 million inflows in 1Q20 and $4.0 million in the past 12-months.

As per the company report, the majority of the investment in Grayscale’s products came from intestinal investors at 88%, which were dominated by hedge funds.

However, not everyone agrees with their definition of hedge funds which may be keeping too close to Wikipedia.

Source: @jdorman81

Jeff Dorman, CIO of Arca, a crypto investment management firm pointed out that the terminology “institutional investors” used for hedge funds is “misleading” and this is not about their interest rather just arbitrage.

“Hedge funds are not institutional investors. They are professional money managers. Inst inv’s are pensions, family offices, sov wealth funds, endowments. A bunch of hedge funds buying grayscale products shows that there is an arb, not interest,” said Dorman.

“Before GBTC stopped reporting it, they would habitually report 70-80% of inflows being “in-kind”, as in, spot BTC being converted into shares. strong evidence of arb rather than fresh long-term capital being deployed,” shared Nic Carter of Coin Metrics.

However, Grayscale is “great,” cleared Dorman while explaining that the fact is hedge funds don’t need GBTC or ETHE in order to get exposure. He said,

“If they want exposure, their mandates are flexible & they will buy spot/futures, which are liquid. A HF will find a way to buy any asset they want. They are only buying grayscale products for the arb.”

With the one-year holding period of some of the shares coming up, the premium is expected to correct down by a good percentage.

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Author: AnTy

Many Reasons To Be Bearish On Bitcoin Price But GBTC Premium Isn’t One Of Them, Economist

  • As GBTC premium drops, analyst Timothy Peterson BTC’s drop to $6,000
  • According to economist and trader Alex Kruger, this is plain “nonsense.”
  • GBTC premium “not useful for making price calls,” Kruger said

Bitcoin is currently trading below $8,000 at $7,948, as per Coincodex and at the moment, there are “many reasons to be bearish,” says economist and trader Alex Kruger.

But the GBTC premium is not one of the reasons that will drive BTC price down as it just reflects current conditions and “not useful for making price calls.”

Recently, Timothy Peterson at cane Island Alternative Advisors published a blog post where talks about the relationship between the premium investors pay on Grayscale Bitcoin Trust (GBTC)’s OTC shares and the leading cryptocurrency’s price.

Based on this relation, it is likely the Bitcoin price could drop as much as 30-40% in the coming months as the GBTC premium has fallen from $4.00 per share to $2.00 per share.

“Bitcoin’s price should fall from about $12,000 to $6,000,”

he concluded.

Although the analyst says the relationship between GBTC premium and BTC price hasn’t been predictable and stable over time, fundamentals models also suggest BTC’s value at $6,000.

“It appears that institutional and long-term US investors in GBTC are expecting this price level for bitcoin as well,” he wrote.

However, according to Kruger that is simply “nonsense.”

“Many are now talking about how BTC may drop to $6,000 according to GBTC’s premium. That, my friends, is nonsense.”

The correlation between Bitcoin and lagged GBTC variables, Kruger explains is “consistently zero.” As such, predicting the value based on GBTC has no value.

He points out that the correlation between BTC and GBTC premium is moderate, 0.25 in the last year and “statistically significant.” But correlations with lagged premiums hover around zero and not statistically significant, he added.

“Predicting the value of bitcoin-based on GBTC premiums widening/narrowing has no value.”

The GBTC premium to NAV, he says is reflective of current market conditions and not a leading indicator for the flagship cryptocurrency.

Using the GBTC premium to find BTC value would be analyzing how weather affects BTC.

“The tail does not wag the dog,” concluded Kruger.

However, Tom Lee, the managing partner and head of research at Fundstrat says, “Low premium has been an interesting time to watch bitcoin—not sure if it’s tail wagging dog but low premium does tell us a bit the weakness of sentiment.”

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Author: AnTy

Chinese Alcohol Wholesaler And Marketer Oranco To Use Blockchain To Fight Counterfeit Products

Chinese-Alcohol-Wholesaler-And-Marketer-Oranco-To-Use-Blockchain-To-Fight-Counterfeit-Products

Oranco one of the most prominent premium alcohol marketer and wholesaler in China just announced that they are going to use a product based on blockchain technology to fight fake products.

Counterfeit goods are a nearly $500 billion industry that, by nature, is difficult to quantify. It’s likely that this number is much higher. Chinese merchants are particularly egregious in this regard, developing cheap knockoffs of popular brands and selling them to unsuspecting customers who are hungry for a good deal.

The press release of the product states:

“On August 20, 2018, the Company, through its wholly-owned subsidiary Fengyuang Huaxin Liquor Development Co., Ltd., entered into an agreement (the “Agreement”) with Guangzhou Silicon Technology Co., Ltd. (“GSTC”), a company specializing in blockchain technical solution development and technical support, to develop the Technology for the identification and anti-counterfeiting of the Company’s premium alcoholic beverages.”

Now, in accordance with the agreement, the participating companies have agreed on developing a blockchain-based tech for

“the identification and anti-counterfeiting of the Company’s premium alcoholic beverages.”

Blockchain offers an undeniable advantage for trust and customer/brand relations. By allowing identification information to be recorded and, above all, verified, it can allow real traceability of the marketed products and the way they have been produced.

President of Oranco, Mr. Peng Yang commented:

“This technology will assure the authenticity and further build the value of our premium products. We look forward to further exploring and exploiting blockchain technologies following this exciting step.”

Using blockchain to see if a product is fake or real is nothing new and has already been used for several years for the certification of diamonds and precious stones by Everledger, a company that has created a universal registry. Each stone or diamond is notarized in the blockchain with many traceability elements such as the owner’s name, the serial number which is also laser engraved on the stone, and all related data: size, color, purity, and so on.

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Author: Sritanshu Sinha

Analyst Says Bitcoin Traded with a $150+ Premium In Hong Kong Due to Protests

Analyst Says Bitcoin Traded with a $150+ Premium In Hong Kong Due to Protests
  • Bitcoin is traded at a $100 premium in Hong Kong
  • There are different Asian markets registering premium prices for Bitcoin

Bitcoin (BTC) has been growing during the last few days and it has surpassed its highest price level in more than a year. However, there are countries that are experiencing some distortions in the price of the most popular digital asset.

For example, Mati Greenspan, eToro’s senior market analyst, said that the virtual currency is being traded at a premium of over $100 in Hong Kong.

Is Bitcoin Being Traded At a Premium in Hong Kong?

According to Mati Greenspan, Bitcoin is currently being traded at a premium of about $160 in Hong Kong on the TideBit exchange.

As he explained, Bitcoin is being traded for 73,120 HKD, or $9337, $159 more than what Coindesk was currently offering as a price reference.

He suggests that this could be a signal of high demand for Bitcoin in the city-state. Hong Kong has been in the center of the media due to the largest protests since 1997. Millions of individuals went to the streets and demonstrated against a controversial extradition law with China.

As reported by Reuters a few days ago, elites started moving their funds abroad due to concerns about this extradition law. Back in 2018, Credit Suisse released a report in which they informed that the number of Hong Kong’s individuals with over $100 million grew to 853. The population of the city-state is currently on the streets defending the legal and judicial system that helped the nation become an international finance hub.

The public and the police have clashed in confrontations because protestors want the bill to be completely eliminated rather than just suspended to be debated in the future. Some protestors have also requested Hing Kong’s leader Carrie Lam to resign due to these issues.

It is worth mentioning that there are other currencies in the region that are experiencing similar issues with Bitcoin. As we wrote a few days ago, in Japan, South Korea and China, the premium could reach as much as 5%.

The report released by Binance Research reads as follows:

“The “Kimichi Premium” returns, the price of Bitcoin (BTC/KRW) in South Korean exchange Bithumb has recently seen premiums of up to 5% to that of BTC/USD spot price, reaching its highest level in 7 months.”

Bithumb, the largest crypto exchange in South Korea experienced a premium on Bitcoin of 5 percent. Bitflyer in Japan has also registered a premium of 5 percent.

At the time of writing this article, Bitcoin is being traded around $9325 and it has a market capitalization of over $165 billion. In the last 24 hours, Bitcoin surged 3.76%.

Bitcoin’s price is $9,319.13 BTC/USD exchange rate today. The real-time BTC market cap of $165.55 Billion currently ranks #1 with a chart dominance at 57.20%, daily trading volume of $6.62 Billion and live coin value change of BTC 3.85 in the last 24 hours.

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Author: Carl T