Dub 28

EToro Sees Bitcoin & Ethereum Trading Volume ‘Explode’ by 4,500%

· April 28, 2017 · 5:30 am

eToro has revealed that the number of users its Bitcoin and Ethereum has soared while trading volumes have “exploded” on its platform since the beginning of the year. 


eToro Runs Up Trading Volume 4,500%

EToro, a leading online trading and investment platform, has experienced a huge increase in both cryptocurrency users and trading volume of Bitcoin and Ethereum, according to Marketwatch. 

So far this year, eToro users trading CFDs (contracts for difference) in cryptocurrencies his risen by four times compared to the same period in 2016. Since the beginning of the year, cryptocurrency trading volume on eToro has soared by a whopping 4,500%.

Since Bitcoin trading has been supported by eToro since 2014, one major reason for this surge can be attributed to the platform’s addition of Etheurem in the beginning of the year.

The price of Ethereum has jumped from about $15 USD per Ether (ETH) to over $65 today in just the past two months. This is reflected in 90% of Ethereum traders buying the asset since it was launched on eToro. Meanwhile, 80% of Bitcoin traders have been buying up the cryptocurrency for a consecutive fifteen months, eToro notes. 

It should also be noted that eToro provides a feature called “copy functionality.” This lets novice users copy the trading strategies of its most successful cryptocurrency traders.

‘Cryptocurrency is the Future of Forex’

Commenting on this impressive growth, Senior Markets Analyst at eToro, Mati Greenspan, believes that “Cryptocurrency is the future of forex.”

[O]ver the last 12 months we’ve seen a 4x growth in traders accessing this market. But the volume of trading has exploded even more than this, with a huge 4,500% jump.

As the total cryptocurrency market capitalization recently passed $30 billion, Greenspan explained, that its users have been reaping ‘significant rewards’ from this jump in prices and a nascent market that has doubled in just the past four months. 

“The rapid growth in the adoption and price of cryptocurrencies only marks the first few steps on the long-journey to establishing cryptocurrencies as a dominant force in forex trading,” he continued.

We expect cryptocurrency trading volumes to get much bigger over the coming years.

As Bitcoin is once again above Gold market price, surging to record highs, the cryptocurrency market should continue to attract even more traditional investors looking for the next big thing.

Recent news of the Securities and Exchange Commission (SEC) willing to review its rejection of the Winklevoss Bitcoin ETF is just the latest in a string of positive news for traders to be bullish on Bitcoin and cryptocurrencies as a whole.

Will the cryptocurrencies market continue to attract traditional investors or will we see another repeat of the dot-com bubble? Share your thoughts below!


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Dub 26

Take Two: SEC to Review Its Bitcoin ETF Decision

· April 26, 2017 · 9:00 am

The U.S. Securities and Exchange Commission has announced that it will review its decision regarding the Winklevoss twins’ Bitcoin ETF.


SEC to Review Its Bitcoin ETF Decision

The U.S. Securities and Exchange Commission (SEC) will review its decision regarding the rejection of the Bitcoin exchange-traded fund (ETF) proposed by Cameron and Tyler Winklevoss.

statement issued by the SEC in response to a petition for review of the Disapproval Order by the Bats BZX Exchange reads:

[…] it is hereby: ORDERED that the petition of BZX for review of the Division’s action to disapprove the proposed rule change by delegated authority be GRANTED; and It is further ORDERED that any party or other person may file a statement in support of or in opposition to the action made pursuant to delegated authority on or before May 15, 2017.

The SEC first rejected the Bitcoin ETF (COIN) proposed by the Winklevoss twins last month, citing risk of fraud and a lack of regulation in the Bitcoin markets. The statement in which the SEC rejected the COIN EFT reads:

As discussed further below, the Commission is disapproving this proposed rule change because it does not find the proposal to be consistent with Section 6(b)(5) of the Exchange Act, which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest.

The petition filed by the Bats BZX Exchange will see the SEC’s action to disapprove the Bitcoin ETF reviewed and possibly amended. If so, COIN ETF shares would be traded on a public stock exchange, providing an easy way for investors to capitalize on the price of BTC without the need to deal with Bitcoin exchanges, wallets, private keys, and so forth.

Winklevoss Chose Bats Exchange For a Reason

As noted by Blockchain researcher and host of the Crypto Scam podcast, Tone Vays, ‎in a 2016 interview, it is very likely that the Winklevoss twins chose to work with the Bats BZX Exchange on the COIN ETF for this very reason. 

Vays

“My guess is the reason that they changed is that Bats is the new kid on the block, so they push the issues a bit,” Vays explained. 

Not only does it make sense for the Winklevoss twins to identify with the Bats BZX Exchange due to the “experimental” nature of the COIN ETF, but it is also a great strategic move that ensured the exchange they partnered with would help them fight to see the Bitcoin ETF approved.

Vays continued:

Nasdaq might not have been helping the Winklevoss fight against the SEC to get this approved and maybe Batz said ‘you know what, we’ll throw your lawyers at it’.

The Saga So Far

The Winklevoss’ bid to see a Bitcoin exchange-traded fund on public stock exchanges is a saga that has been going on for roughly three years. It started with the filling of an S-1 form for the Winklevoss Bitcoin Trust in May 2014.

Twins

The Winklevoss Bitcoin Trust was based on the twins’ substantial Bitcoin holdings (roughly 1% of the total supply at the time) and had Math-Based Asset Services LLC as the sponsor of the Trust. Later that year, a follow-up filling was made in order list the Winklevoss Bitcoin Trust as an ETF on the NASDAQ OMX exchange with the name “COIN.”

Two years later, in June 2016, the twins filed a document that would see the ETF listed on the Bats exchanged instead of Nasdaq. The same filing also saw the ETF offering increase from $20 to $65 million.

Last month, the Securities and Exchange Commission (SEC) denied the Winklevoss Twins’ Bitcoin ETF, which lead to the petition by the Batz BZX Exchange.

Do you think that the Winklevoss Bitcoin ETF will be approved after the SEC’s revision? If so, let us know why in the comments below.


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Bře 14

Any Bitcoin ETF Gaining Approval in 2017? Don’t Bet On It. Here’s Why

· March 14, 2017 · 4:00 am

The defeat of the COIN Bitcoin ETF turned out to be the story that wasn’t. Yes, it caused a sharp dip in the market, but this was filled within hours on Friday evening. Some say this is not a big deal because other ETF proposals wait in the wings. But the evidence says they will suffer a similar fate.


‘Significant Markets for Bitcoin are Unregulated’

Let’s take you back to Friday afternoon. The decision on the Bitcoin ETF was set to come down by Saturday, March 11th, so the SEC held up their end of the bargain. They did not delay the decision again, but said they will not approve the proposal. The deeper issue is why it was not approved.

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“Based on the record before it, the (SEC) Commission believes that the significant markets for bitcoin are unregulated,” the SEC said in a statement. “The Commission notes that bitcoin is still in the relatively early stages of its development and that, over time, regulated bitcoin-related markets of significant size may develop.”

Bitcoin ETF a ‘Cause for a Pause’

This does not sound like a problem based on The Winklevoss Twins actual proposal, or a technicality. The problem the SEC seems to have is with the Bitcoin market overall. They specifically mentioned multiple global markets, plus a long time view of their progression towards regulation, which really isn’t in the offing.

bak

“The SEC made a strong statement and it listed its concerns, and I thought it did a very good job of explaining its rationale,” Phil Bak, the former head of ETF listings at the New York Stock Exchange told MarketWatch.

Bitcoin will mature as an investment over the coming years, but I don’t think we’ll see a change in how the SEC views it over that time. For the other firms trying to bring one to market, I’m trying to think of a nice way to say, ‘no chance in hell’ for their approval.

The Winklevoss Twins have been on this mission for almost four years and they have decided not to give up on the process. However, the reasons for denial have virtually nothing to do with the proposal, so where do they go from here?

Winklevoss Twins

“They can obviously try again, and SEC membership continually changes, but getting rejected is usually a stop, or at least cause for a pause. I don’t know what the next steps would be,” said Todd Rosenbluth, director of ETF and mutual fund research at CFRA.

“The SEC highlighted the unregulated market for bitcoin, and I don’t think the filers could do anything to change that,” Rosenbluth said.

Therefore, it appears that similar filings such as Barry Silbert’s Bitcoin Investment Trust will share a similar fate as COIN or at least until regulators get better oversight of Bitcoin and its related markets.


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Bře 11

Bitcoin ETF Rejected; Price Dips Below $1,000

· March 11, 2017 · 12:20 am

The Bitcoin ETF proposal (COIN) has been rejected by the United States Securities and Exchange Commission, which immediately sent the price plunging down to a $958.5 low.


Bitcoin ETF Rejected

The much anticipated Bitcoin ETF filed by the Winklevoss Brothers in mid-2013 has been officially rejected. The document outlining the decision states the reasons for the rejection:

Based on the record before it, the Commission believes that the significant markets for bitcoin are unregulated. Therefore, as the Exchange has not entered into, and would currently be unable to enter into, the type of surveillance-sharing agreement that has been in place with respect to all previously approved commodity-trust ETPs—agreements that help address concerns about the potential for fraudulent or manipulative acts and practices in this market—the Commission does not find the proposed rule change to be consistent with the Exchange Act.

This decision caused widespread community outrage since many believed that there was a fair chance that the ETF would be approved.

Twins

Many users, including Andreas Antonopoulos, a prominent member of the Bitcoin community, took to social media to voice their disagreement:

Immediate Price Crash

Almost right after the decision was published, the price of Bitcoin saw a crash down to around $958 USD, translating to a decrease of almost 25% in a matter of minutes.

Bitcoin Price After ETF Decision

The price slowly recovered and had been fluctuating around $1,100 USD at the time of writing. Prior to the announcement, the price hit a volatile peak of $1,350 USD amid speculation that the ETF would be likely approved.

These large swings in price also caused increased trading volumes on Western exchanges, with Bitfinex and Bitstamp seeing a combined volume of almost 80,000 BTC.

Will Bitcoin price recover after this crash? Share your thoughts below!


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Led 21

Barry Silbert’s Bitcoin Investment Fund Files $500m Share Offering

· January 21, 2017 · 7:00 am

Barry Silbert’s Bitcoin Investment Trust has filed form S-1 with the US Securities And Exchange Commission (SEC) for up to $500 million USD worth of shares.


Private Placement Shares End

The documentation, submitted Friday, will take the Trust a step closer to listing on the New York Stock Exchange should the SEC approve it.

Bitcoinist_Digital Currency Group Barry Silbert

Grayscale Investments, LLC announced today that it has filed a registration statement on Form S-1 relating to the proposed registration of the Bitcoin Investment Trust’s shares (the “registered Shares”) with the Securities and Exchange Commission,” an accompanying press release confirmed.

The investment objective of the Bitcoin Investment Trust is for the registered Shares to reflect the performance of the value of a bitcoin, before liabilities and expenses of the Trust, as represented by the TradeBlock XBX Index.

The move also means that the Trust’s holding company, Grayscale Investments, has ceased offering shares in the Trust through its private placement.

“As of the close of business on January 19, 2017, Grayscale Investments, LLC has ceased its ongoing private placement and will no longer issue shares of the Bitcoin Investment Trust through its previous 506(c) private placement,” an additional announcement stated Friday.

Shares of the Bitcoin Investment Trust will continue to be quoted in the secondary market on OTCQX®, the top marketplace operated by OTC Markets, under the symbol: GBTC.

Grayscale has also announced a new Ethereum Classic Trust, with more details to be announced in the near future.

Analysts: SEC ‘Worried About FUD’

The SEC is also currently considering the Winklevoss twins’ Bitcoin ETF, which has faced a long process to ratification and has still not received the regulatory blessing.

Bitcoinist_Bitcoin Devleopment Funding

Earlier this month, analysts suggested the SEC was unlikely to grant the Fund approval due to various factors causing unease – including, somewhat unusually, “fear, uncertainty, and doubt.”

Nonetheless, the instrument has already proven its viability, for example in a surge last January as uncertainty gripped global stock markets.

A decision from the SEC is expected by March, and if successful, the same analysts note, the Bitcoin ETF could see $300 million flow into the Bitcoin ecosystem from new Wall Street investors.

The Winklevoss twins have been vocal in their support for Bitcoin as an asset, stating is “better than gold” and calling Bitcoin “the greatest social network of all.”

The BTI meanwhile, launched back in 2013, began trading on the OTCQX in May 2015. 

What do you think about the chances for the Bitcoin Investment Trust compared to the Bitcoin ETF? Let us know in the comments below!


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