Tag: Crypto Investment

Bitwise to Launch Two Innovative Ethereum Futures ETFs on October 2

by Blockchain News

Bitwise Asset Management, America’s largest crypto index fund manager, announced the launch of two first-of-their-kind Ethereum Futures ETFs, AETH and BTOP, scheduled for October 2. These ETFs will provide investors with exposure to CME Ether futures in a regulated format, expanding Bitwise’s existing suite of crypto investment products.

Bitwise Asset Management, a leading player in the crypto asset management space, has announced the launch of two groundbreaking Ethereum-themed Exchange-Traded Funds (ETFs). The Bitwise Ethereum Strategy ETF (ticker: AETH) and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF (ticker: BTOP) are set to begin trading on October 2, 2023. These ETFs are the first to offer investors exposure to CME Ether futures through a regulated ETF format.

Based in San Francisco, Bitwise offers a broad range of crypto investment vehicles, including more than 20 products and five ETFs. The firm is known for its focus on quality education and research, partnering with financial advisors and investment professionals.

“Ethereum now has billions in revenue, millions of users, and thousands of distinct apps and developers,” said Bitwise CEO Hunter Horsley. According to data, stablecoins processed over $1 trillion in transactions in Q1 2023 alone, growing from virtually non-existent in 2019 to a $125 billion market today. Additionally, the total capital in decentralized finance (DeFi) applications on Ethereum has surged 60-fold since 2019, reaching $40 billion.

Bitwise CIO Matt Hougan stated that Ethereum offers a broader portfolio opportunity than Bitcoin, with low correlation to traditional equities. However, it’s essential to note that both Bitcoin and Ethereum futures are subject to unique and substantial risks, including price volatility and liquidity risks.

AETH: Focuses on regulated CME Ether futures, primarily front-month contracts. The fund custodian is Bank of New York Mellon, with an expense ratio of 0.85%.

BTOP: Provides equal exposure to regulated CME Bitcoin and Ether futures. The fund custodian is also Bank of New York Mellon, with an expense ratio of 0.85%.

Bitwise also warns investors should be aware that these ETFs do not invest directly in Bitcoin or Ethereum but in their respective futures contracts. The funds are subject to various risks, including price volatility, liquidity risk, and the cost of futures investment.

On the same day that Bitwise Asset Management is set to launch its Ethereum Futures ETFs, AETH and BTOP, ProShares is also launching its own groundbreaking products. ProShares will introduce the first-ever ETF focused solely on Ether, along with two blended ETFs that offer exposure to both Bitcoin and Ether. Similar to Bitwise’s offerings, ProShares’ new ETFs are designed to provide investors with a more accessible and regulated way to gain exposure to cryptocurrencies, eliminating the need for a separate crypto custodian or wallet.

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Raiffeisen Bank to Launch Crypto Investment Service

by Blockchain News

In a recent announcement, the Raiffeisenlandesbank Niederosterreich-Wien (RLB NO-Wien) detailed its intentions to foray into the realm of bitcoin investing services. The Austrian cooperative banking institution, which was established in 1900 and now has a 22.6% interest in Raiffeisen Bank International (RBI), has decided to launch its new service in collaboration with the Austrian cryptocurrency startup Bitpanda.

Customers of RLB NO-Wien will be able to invest in a variety of assets, including digital assets such as Bitcoin and Ether, thanks to the launch of a new crypto investing service. Customers will also continue to have access to investment services for equities, exchange-traded funds, precious metals, and commodities. The software as a service (SaaS) product that Bitpanda has will be the vehicle through which the service will be delivered.

The Chief Executive Officer of RLB NO-Wien, Michael Hollerer, said that the purpose of the relationship with Bitpanda is to broaden their product offering by including a cutting-edge, risk-free component that would make it simpler for all consumers to amass money. By the end of the year, Bitpanda’s technological infrastructure will have been swiftly and securely linked, making possible the availability of trading.

The new service will also include Bitpanda’s whole inventory of digital assets, which totals over 2,500 different assets and consists of cryptocurrencies such as Bitcoin and Ether. Customers will have the ability to invest in a wide variety of assets, notwithstanding the amount of cash that is now accessible, with investments possible to begin with as little as one euro.

The expansion of Raiffeisen Bank International into the realm of digital currency development includes a move into the provision of investment services for cryptocurrencies. In the year 2020, the bank was in the process of constructing a platform for the tokenization of the national currency utilizing blockchain technology. In addition to this, the bank is well-known for its involvement in trade financing pilot projects leveraging R3’s Marco Polo blockchain network.

In general, the collaboration between RLB NO-Wien and Bitpanda sheds light on the expanding interest that conventional financial institutions have in the provision of bitcoin investment services. It is possible that we will witness a surge in the adoption and public acceptance of digital assets as more financial institutions join the bitcoin industry.

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US Labor Department Urges Caution over Crypto Investment in 401k Retirement Plans

by Blockchain News

The U.S. Department of Labor (DOL) on Friday warned employers and retirement plan providers to “exercise extreme care” before they consider cryptocurrency into their investment option for plan participants.

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The labor agency made such comments as part of its efforts focused on protecting the retirement savings of U.S. workers.

The DOL said that cryptocurrencies like Bitcoin and other digital assets such as non-fungible tokens, pose significant challenges and risks to 401(k) investors, including, financial loss, theft, and fraud.

The Labor Department disclosed that financial services companies have started marketing crypto investments to 401(k) plans as retirement-plan option in recent months.

The labor agency warned that employers who add crypto investments to their company 401(k) plans might easily go against their legal obligations to plan participants.

Ali Khawar, acting assistant secretary at the Employee Benefits Security Administration, talked about the development and said: “At this early-stage in the history of cryptocurrencies … the U.S. Department of Labor has serious concerns about plans’ decisions to expose participants to direct investments in cryptocurrencies or related products, such as NFTs, coins and crypto-assets.”

Investing in Cryptocurrency

In September last year, the U.S. Department of Labor started working on guidance related to cryptocurrency. But the latest move by the DOL shows that the agency has followed the footsteps of other U.S. federal regulators that have recently highlighted risks that cryptocurrencies present to investors. The U.S. Securities and Exchange Commission (SEC) has a regulatory focus on investor risks related to cryptocurrencies.

Although the current law does not prohibit investing cryptocurrencies in 401(k) plans, many labor lawsuits (including a recent wave) have challenged the structure of the plan investment lineup, resulting in several plan sponsors favouring safer and less exotic and or volatile investments.

There has been pressure on retirement plan providers to favor stable, transparent, and low-cost investments such as index funds to avoid potential litigation. Recent lawsuits have examined how the Employee Retirement Income Security Act of 1974 (ERISA) regulates alternative investments like private equity or hedge funds.

Investing in cryptocurrency and crypto funds—which are much less stable or transparent than mutual funds—may still be far away from the investment universe of an ERISA plan.

 

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Singapore To Restrict Highly Risky Crypto Investment Marketing

by NEWSBTC

Singapore, one of the world’s most progressive financial cities and home to many crypto investment companies, is cracking down on advertisements for digital asset services within its borders.

The Monetary Authority of Singapore, which to summarize: “This new law will effectively ban advertisements related to digital currencies.”  It’s another setback for cryptocurrency suppliers as more countries regulate this sector.

The Financial Authority of Singapore has issued guidelines to crypto investment companies that urge them to cautionary advertising and marketing in public areas and bodily or digital currency trading. The government agency says these practices are dangerous for most people because they can lead others into losing their funds when something goes wrong with your investment strategy – which could happen at any time.

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As authorities have already upset several companies with the gradual approvals, these new rules might create an even more competitive environment.

Crypto suppliers should not use social media platforms or other public sites to attract new customers. They can’t advertise on buses, trains, and places where they stop as well – nor through broadcast/print media, for that matter. Offering ATMs with crypto tokens is also discouraged.

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Cryptocurrency exchanges should not pay influencers to promote their services. This is because Singaporean law requires all advertising material to indicate who produced it and what they want people to know about the product/service.

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Their marketing campaigns will continue through the company’s own websites, social media accounts, or app stores.

“Cryptocurrencies are extremely hazardous and never appropriate for most people,” Yee Siew, Assistant Managing Director of Coverage, Funds & Monetary Crime at MAS, said in a press release on Monday. 

Singapore Government Action To Pause All Types of Marketing

The Singaporean central financial institution has taken an interesting approach by labeling cryptocurrencies as ‘DPT’s” which stands for digital payment tokens. This new classification will help them keep up with the recent trends in cryptocurrency trading and invest more wisely than before.

In an effort to get people into their crypto exchange, Foris DAX Asia has been hiring some top Hollywood talent. They’ve rented out American actor Matt Damon for advertisements and even splashed out on his services to make it seem more appealing.

The Hollywood star appeared on multiplex screens throughout Singapore, promoting Crypto.com.  The tagline “Fortune favors the courageous” popped up earlier than motion pictures startup.

Based on the latest from MAS, advertisements for DPT games should no longer be used in public venues.

Crypto.com disclaimer reads:

“The Financial Authority of Singapore (MAS) requires us to supply this danger warning to you as a buyer of a digital fee token (DPT) service supplier. Please observe that you could be not be capable to get well all the cash or DPTs you paid to Foris DAX Asia Pte Ltd if Foris DAX Asia Pte Ltd enterprise fails.”

Singapore’s Monetary Regulator (MAS) has been vocal about its stance on digital currency. The country’s laws specify that service providers who fail to observe the rules face penalties. It’s more likely for them when companies ignore public safeguards and continue working legally within our borders. This could lead MAS to take action against these businesses to prevent negative consequences.

Time will tell how this new advertising and marketing framework affects businesses. Still, MAS instructed some DPT gamers to wind down old campaigns or fulfill contractual obligations before penalizing them.

Crypto Investment Advertisement Framework

Singapore’s Central Financial Institution is taking an identical stance on crypto investment advertising as Britain. The UK’s Advertising Standards Authority has moved to clamp down against any misleading or deceptive ads that may be running throughout this new digital economy – and it looks like they’re going balls out when doing so.

With so many digital currency providers in need of licenses, it’s no wonder that the government has been slow to respond. So far, they’ve only granted five permits out of 180 purposes for these “digital fee token provider” companies – and those are just since January 2020 when Act took effect.

The Singaporean Finance Agency (SFA) recently released a statement highlighting their framework for cryptocurrencies and blockchain technology, noting that it’s important to have guardrails in place when adopting new technologies.

Shadab Taiyabi, president of the SFA, says:

“The expertise behind blockchain has the potential to open many thrilling alternatives for the trade and convey advantages to shoppers. Opening the doorways to innovation additionally requires a system of checks and balances to be put in place earlier than shoppers achieve full consciousness and understanding of the brand new instruments.”

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Bitcoin and Ethereum In for Bullish 2022 As Money Managers Forced To Allocate to Crypto: Bloomberg’s Mike McGlone

by Dailyhodl

Bloomberg’s head commodity strategist says the crypto markets look poised for a bullish 2022, with Bitcoin and Ethereum set to lead the charge.

In the December edition of Bloomberg’s “Global Cryptocurrency Outlook,” Mike McGlone says that given crypto’s relative outperformance of other asset classes, many money managers may be forced to get involved.

“Past performance is no indicator of future results, but when a new asset class outperforms incumbents, naysayers have little choice but to join in. We see this process playing a primary role in 2022, as money managers may face greater risks if they continue to have no portfolio allocations to cryptos.”

McGlone says that BTC looks like it’s still on schedule to break the six-figure mark next year, partially on the back of rapid adoption from various economies and markets.

“Bitcoin appears to be on a trajectory for $100,000. We see it as more of a question of time, notably due to the economic basics of increasing demand vs. decreasing supply. There are ample examples of Bitcoin simply staying on course in 2022 of its process of adoption into the mainstream. U.S., Canadian and European exchange-traded funds and futures, migration into the 60/40 mix and legal-tender status in El Salvador point to a bull market in global adoption.” 

The analyst says the digital asset markets are being driven by three main “stalwart” components, which are Bitcoin, Ethereum, and stablecoins, which he calls “crypto dollars.” According to McGlone, altcoins like Shiba Inu (SHIB) and Dogecoin (DOGE) show that the crypto markets are ripe for speculation, but that BTC, ETH, and USD-backed stablecoins will continue to maintain dominance.

In the long term, the commodity strategist says that Bitcoin could ultimately find a stable price somewhere in the neighborhood of 100x the price of an ounce of gold, which right now would be $178,300.

“A potential path for the Bitcoin price is to stabilize around 100x an ounce of gold and for volatility to resume its downward trajectory, if past patterns repeat.”

Source: Bloomberg

The full Bloomberg report can be read here.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Former Wall Street Banker Partners With Ethereum Competitor for New $1,500,000,000 Crypto Fund

by Dailyhodl

A former Citigroup executive is shaking up the crypto investment space with a $1.5 billion venture, partnering with a leading layer 1 altcoin project.

Hivemind Capital Partners is an investment firm founded by Matt Zhang, a 14-year Citigroup Inc veteran. In a press release, Zhang announces Hivemind’s mission to provide solutions to early blockchain entrepreneurs through the creation of a new “tailor-made crypto investment platform.”

“We believe blockchain technology is a paradigm shift, and we are still in the early innings. Our mission is to provide start-to-finish capital and infrastructure solutions to visionary entrepreneurs and category-defining crypto projects.

The traditional asset management model is not designed to do this, which is why we are building a tailor-made crypto investment platform from the ground up that also offers the infrastructure institutional investors need for risk management, compliance and security.”

Hivemind is partnering with payments and decentralized finance (DeFi)-focused blockchain Algorand (ALGO) as a “strategic partner to provide technology capability and network ecosystem infrastructure.”

“We believe that Algorand is the preeminent blockchain protocol that allows institutional and corporate users to connect with the decentralized economy. With the explosive growth of the digital asset space, people tend to forget how early the crypto economy still is. We want to team up with partners who have the patience to build an enduring business.”

However, Zhang notes that Hivemind is exploring partnerships with other layer 1 blockchains as the project progresses.

“We are also in active discussions to form partnerships with a number of other leading layer-1 networks. The goal is to build a multi-chain world to let our investors see the best opportunities across the entire crypto ecosystem.”

ALGO, trading at $1.82 at time of writing, is up nearly 12% on the day. The payments blockchain has interest from other large investors lately, including an endorsement from American financier Anthony Scaramucci last month.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Australian Super Rest Retirement Fund To Invest In Cryptocurrencies

by NEWSBTC

Australia remains outstanding with its increased swing and adoption of cryptocurrencies by the populace. Despite its volatility, the popularity of digital assets has triggered more investment moves towards this financial asset.

Joining in the train of crypto investment within the country is the Retail Employees Superannuation Trust (Rest Super).

By its indication to invest superannuation fund in cryptocurrency, the Australia Rest Super will be the first of its type to do so. Before now, the entire retirement fund sector has been careful with cryptocurrency.

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With about 1.8M members, Rest Super fund’s assets under management (AUM) are worth $46.8 billion.

However, superannuation is mandatory for all Australian employees. It has an equivalence of a U.S. Individual Retirement Account or 401k.

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Speaking on Tuesday during the annual general meeting of Super Rest Fund, Andrew Lill, the company’s Chief Investment Officer (CIO), acknowledged the volatility of such crypto investments. However, he said that their allocation to the investment is a part of diversifying their portfolio.

The CIO mentioned that the company considers cryptocurrencies an important investment aspect and will exercise caution in its move. However, he stated that his opinion is that the investment introduces members to digital assets and blockchain technology.

Hence, they could access a stable source of value within a period where people stick more to crypto investment to combat fiat currency inflation.

Furthermore, another statement from a Rest spokesperson explained that the firm considers cryptocurrencies as a diversifying means of its members’ retirement fund. But, the plan may not be a direct investment.

In addition, the spokesperson confirmed that the company is still doing its research before its final decisions. Also, they are focusing on both the regulations and security involved in crypto investment.

Investment In Cryptocurrencies To Strive In The Country

Contrasting comments are coming within the week to the ones from the Australian Rest Super. On Monday, Paul Schroder, the Chief executive of the $167 billion funds, stated that crypto is not an investment option for their members.

Reports from last month revealed that Queensland Investment Corporation (QIC), an investment fund owned by the state, is considering embracing cryptocurrency. But, contrary to that, the company, this week, disclosed to Business Insider the implication of the reports. Hence, it piped down all moves towards digital assets.

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The Head of Currency at QIC, Stuart Simmons, said he wants superannuation funds to embrace cryptocurrency. However, the move is likely to be a gradual trickling instead of a massive flow.

The entire deliberation on Australian superannuation funds is happening within the period of a bullish trend in the country’s crypto market. This is after the Senate committee brought up some regulatory proposals within October.

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It catalyzes pushing the country as a focal point in crypto transactions. Also, the Commonwealth Bank of Australia (CBA) intends to offer cryptocurrency trading earlier in the month through its banking app.

As more cryptocurrency adoption is expected in the country, Matt Comyn, the CEO of CBA, commented on the bank action this week.

The CEO explained that participation in digital assets is motivated by FOMO. He said that though there are risks to their involvement, there will be more significant risks with their non-participation.

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Crypto exposure has positive impact on investment portfolios, study shows

by Cointelegraph

Allocating funds to crypto investment positions has been shown to have a positive impact on the performance of diversified investment portfolios.

According to a research study by crypto asset management outfits Iconic Funds and Cryptology Asset Group, the ability of crypto investments to positively impact the performance of investment portfolios cuts across several asset allocation models.

This ability to improve the profitability of diversified investment portfolios is even despite the volatility of cryptocurrencies, especially the recent market crash that occurred in May.

The research study titled: “Cryptocurrencies and the Sharpe Ratio of Traditional Investment Models” examined changes in the risk-return profile of several portfolio allocation methods due to the addition of cryptocurrency assets.

This risk-return examination was conducted via measuring changes in the Sharpe ratio — the measure of excess returns earned for holding a volatile asset — when crypto positions were included in the different asset portfolio models.

With crypto supposedly an uncorrelated asset class, the risk-reward performance of investment portfolios should improve with the addition of cryptocurrencies despite their apparent volatile price movements.

By assuming a passive investment strategy, the study mapped the changes in the Sharpe ratio for traditional portfolio models with the introduction of crypto exposure against a reference index with no cryptocurrency allocation.

Source: Cryptocurrencies and the Sharpe Ratio of Traditional Investment Models

To investigate the impact of increasing the crypto positions for each portfolio model, the study also rebalanced the cryptocurrency allocation on a 1%, 3% and 5% basis.

Detailing its findings, the study stated: “This report finds that the addition of cryptocurrencies to any portfolio covered had a positive impact on the returns as well as the risk-reward performance of the portfolio,” adding:

“This finding holds despite a significant correction in the crypto markets during the beginning of 2021. Furthermore, the addition of more cryptocurrencies led to even higher returns.”

According to the document, the results of the 2021 study also lend credence to the conclusions drawn in the 2020 research that showed the positive impact of crypto allocations to investment portfolios despite the market crash of mid-March (Black Thursday).

Related: Mr. Wonderful’s crypto allocation is now larger than his gold holdings

Crypto exposure is becoming a significant trend among institutional investors. As previously reported by Cointelegraph, a recent Bank of America report showed 20 major public companies in the United States having significant digital asset-based investments.

Back in September, a survey by European investment management outfit Nickel Digital Asset Management stated that 62% of global institutional investors with zero crypto exposure will begin making forays into cryptocurrency and blockchain within the next 12 months.