Kvě 24

Weiss Ratings: Bitcoin Correction The Best Buying Opportunity Since 2015

Weiss Ratings believes that bitcoin price surging to $8,373 will open the doors to a once in a lifetime purchasing opportunity.


Weiss Says Buy the Dip

On Thursday Weiss Ratings tweeted that Bitcoin’s current technical setup presents the best purchasing opportunity for investors since 2015.

The independent rating agency based their assessment on analysis from their chief crypto analyst Juan Villaverde.

The analyst explained that Bitcoin’s recent surge to a 2019 high at $8,373 has primed the market for an impending correction that will represent the greatest purchasing opportunity since 2015.

According to Villaverde, similar price action occurred in 2012 and 2015 and the cryptoanalyst explained that:

In January 2012, for instance, after Bitcoin has rallied to $7 per token from its bottom of $2 just months earlier, Bitcoin suffered a 45% correction down to about $4. But that was a launching pad for a bull run that would take Bitcoin into four-digit territory for the first time in its history, hitting a high of almost $1,200 by December 2013.

Villaverde then pointed to an identical occurrence in 2015 when Bitcoin price notched $500 in November only to be followed by a sharp 40% sell-off to $300 a week later.

Will Bitcoin Pull Off a ‘Three-Peat’?

Naturally, investors will be concerned about whether history will repeat itself and the phrase “past performance is not indicative of future results” comes to mind.

Villaverde addresses this valid concern by pointing out that that Bitcoin’s fundamentals have improved significantly over the past year and the fact that Bitcoin usage is near all-time highs, with daily transaction volumes nearly reaching levels not seen since late 2017 is encouraging.

According to him, Bitcoin’s 24-hour transaction volume recently reached a 2019 high of 450,000 and the previous all-time high occurred on December 13, 2017, just a few days before prices reached $20,000.

Weiss also pointed out that Bitcoin network fees remain at their lowest levels since August 2017 despite the consistent increase in transaction volume. Villaverde explained that there is a negative correlation between usage and fees and this is proof that upgrades like SegWit and the Lightning Network were paramount in making this possible.

Overall Villaverde encouraged investors to focus on the positives and reiterated that: the recent major rally confirmed the beginning of a bull market, Bitcoin’s fundamentals have improved the point of supporting increasing price and he cautioned investors to be attentive of an impending sharp correction, which could provide a fantastic purchasing opportunity.

Do you agree with Weiss Ratings advice to buy the next Bitcoin dip? Share your thoughts in the comments below! 


Images via TradingView.com, Twitter, Shutterstock

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Kvě 22

Winklevoss: Sitting on the Sidelines is Crazier Than Investing in Bitcoin

Prominent Bitcoin investor and Gemini Exchange co-founder Cameron Winklevoss says that the future of money is currently being built with Bitcoin and crypto and that it’s ‘crazy’ to be sitting on the sidelines. 


‘The Future of Money is Literally Being Built’

Popular cryptocurrency commentator and a prominent Bitcoin investor Cameron Winklevoss has argued the craziness of investing in the crypto space. He said:

“Some people think it’s crazy to invest in crypto. Maybe. But definitely not as crazy as sitting on the sidelines when the future of money is literally being built before your eyes.”

The Winklevoss twins, in general, have been more than well-known in the space. Earlier in January, they said that Bitcoin will pass the $7 trillion gold market cap.

Mr. Wonderful Disagrees

One of those who seem to believe that investing in Bitcoin is more than crazy is popular TV personality and millionaire entrepreneur Kevin “Mr. Wonderful” O’Leary. Those of you who’ve watched the popular entrepreneur show “Shark Tank” surely know him.

Kevin O'Leary bitcoin

Just yesterday, in a rather heated debate with Anthony “Pomp” Pompliano of Morgan Creek Capital, on CNBC’s SquawkBox, O’Leary argued that there’s no value in owning bitcoin as an asset class. He said:

Where is the value in owning bitcoin as an asset class? Tell me why this, which is basically a digital game, has any intrinsic value. And where is the long-term value? Just this idea that they’re going to cut the number of units in half is just a scam. That’s just total BS.

Despite Pompliano’s arguments, the investor couldn’t seem to wrap his mind around the idea and denied all merits of Bitcoin and other cryptocurrencies as well.

Tom Lee Says Current Bitcoin Bull-Run Has Legs

Speaking on CNBC’s Markets Now, Fundstrat Global Advisors’ head analyst, Tom Lee, discussed the current case for Bitcoin. He outlined that the top ten days in any year account for all the gains for crypto.

tom lee Bitcoin price

However, Lee also said that there’s plenty of reasons to be optimistic. He reiterated on the narrative that Bitcoin “has proven to be digital gold” – something also expressed by the Winklevoss twins themselves.

Lee also mentioned the upcoming Bitcoin halving which is estimated to take place in less than a year from now.

As Bitcoinist reported yesterday, the overwhelming majority of people bullish regarding the effect it will have on the cryptocurrency’s price given historical trends.

What do you think of Bitcoin going forward? Let us know in the comments below!


Images via Shutterstock

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Kvě 21

Argentina: Bitcoin Bought at $20K Retained More Value Than the Peso

Bitcoin has proven to be a store-of-value in Argentina where you would have been better off buying BTC at its peak rather than hold the peso.


Argentina Ensnared Political and Economy Turmoil

The Argentinian economy continues to shrink, afflicted by stubbornly high inflation, which President Mauricio Macri, who is running for re-election, has been unable to rein in. Hence, he is becoming increasingly unpopular.

On May 19, 2019, the country’s grim economic outlook became even muddier when former president Cristina Fernandez de Kirchner announced she was running for the vice presidency alongside Alberto Fernandez (her former cabinet chief), in the upcoming presidential elections in October 2019.

Ms. Kirchner made the announcement a few days before the beginning of her trial for alleged corruption offenses related to public works contracts. The trial is scheduled to start on May 21, 2019. Reuters wrote,

Cristina Fernandez is considered by investors to be a riskier prospect because of her past populist policies. She introduced currency controls and tax increases on farm exports while in office between 2007 and 2015.

Fearing that if Ms. Kirchner returns to power it would bring populism back to the country, investors are now more than ever seeking refuge in safe-haven currencies, such as US dollars and Bitcoin.

In effect, Bitcoin’s value in relation to the Argentinian peso and Bitcoin’s trading volumes are reaching all-time highs. Likewise, the US dollar is an all-time high against the Argentinian peso. This set of circumstances will most likely reinforce Argentina’s inflationary spiral.

Argentinians Better Off Holding Bitcoin

Officially, as of March 2019, Argentina’s annual inflation rate reached over 55 percent. But even this elevated rate of inflation is questioned. Economist Steve Hanke argues that when using high-frequency data, the inflation rate in Argentina is over 80 percent.

Such a high inflationary rate significantly erodes the purchasing power of the peso, to such an extent that replacing the peso with Bitcoin to save Argentina’s plummeting economy no longer seems like a crazy idea.

As a result, many are turning their attention to Bitcoin’s deflationary attributes. For example, one strong argument put forward is that Bitcoin is a better store-of-value than the peso.

In this regard, Partner at Sixtant, Josu San Martin, noted:

If an Argentinian had bought Bitcoin at the highest point of the ‘biggest bubble in history,’ in 2017, he would have been better off than leaving his money in his Argentinian bank account. So tell me again how Bitcoin is a horrible store of value.

As a completely new asset class, Bitcoin is still volatile. Nevertheless, in the long run, Bitcoin is proving to be a better (and rapidly appreciating) store-of-value than gold, even more so in a digital economy.

In this regard, Grayscale Investments, one of the largest cryptocurrency asset managers, details key features to highlight Bitcoin’s superiority to gold in, verifiability, divisibility, durability, fungibility, portability, and recognizability.

Moreover, a compelling and most relevant argument for the Argentinian economy is Bitcoin’s inflation-resistant nature, which is strengthened by its scarcity. Only 21 million bitcoins will ever be created by around the year 2140.

Furthermore, Grayscale compares the cryptocurrency to gold in the features shown in the chart below.

To save the failing economy, President Macri has already received advice to bear Bitcoin in mind. In March 2019, serial investor Tim Draper advised him that to attract foreign investors he must dramatically transform Argentina’s economy and replace its peso with Bitcoin.

How do you think that Bitcoin can help Argentina to minimize inflation? Let us know in the comments below.


Images via  Grayscale, Shutterstock

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Kvě 04

Bitcoin Will Be Over $10K By 2020 Halving, Model Shows

Despite a slight dip, Bitcoin price is still expected to surpass $10,000 by the next block halving, according to Stock-to-Flow models.


As originally posted by the Twitter user planB, Bitcoin remains on course to exceed $10,000 and perhaps even $100,000 according to trend-following macroeconomic models.

The significance of stock-to-flow

The graph above shows a correlation between bitcoin reward halving and the price of bitcoin, mapped by year and counting down until the next halvening event that will occur May 2020. Most importantly, the price appears to follow the Stock-to-flow macroeconomic model.

The SF model displays a price uptrend. Notably, as the halvening is expected to reduce sell pressure on the supply side. A lack of interest from sellers could help the price climb upwards from its current levels.

However, these kinds of rallies are stymied by a lack of selling pressure rather than interest from buyers, and can quickly climb into overbought levels followed by a sharp downside correction.

The halvening countdown

Bitcoin block reward halvings occur roughly once every four years. Each time the network halves the network reduces the mining reward by 50 percent. At present, miners are rewarded with 12.5 BTC each time a block is mined. By May 2020, that number will be halved down 6.25 BTC.

There are less than 390 days to go.

As Bitcoinist has reported previously, the price of Bitcoin seems to rally one year after the ‘halvening’ event occurs. In fact, there appears to be a direct correlation between the price of bitcoin and halvening events that cannot be ignored.

There have been other models used to predict the price of Bitcoin that pushes the price of Bitcoin higher — except on a more futuristic timescale.

For instance, a $1 trillion market cap was predicted for Bitcoin after the halving that will occur in 2020 implying a price of $55,000.

However, the price of bitcoin could climb to even higher levels in 2023. A “massive rally” could push the coin to the astronomical price of $10 million dollars. This figure was taken from the model that prices seem to increase bi-laterally, as well as hash rate, which analyst, Max Keiser says “never left” the bull market.

Given these theories, we can expect the next halvening event to be a major cornerstone in Bitcoin’s history and have a significant impact on the currency’s evaluation. How high bitcoin’s price will climb is still up to debate, but the consensus overall is that we can expect higher prices than what we’re seeing now as shown by previous halvings and bitcoin stock to flow.

Will bitcoin price be over $10,000 by 2020 at the time of the halving? Share your thoughts below!


Images via Shutterstock

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Kvě 02

Bitcoin ‘HODL Waves’ Chart Shows Price Building Momentum

Woobull.com, a provider crypto asset market, and network data has added new charts to its Bitcoin price, momentum, volume, and volatility platform.


Bitcoin Price Building ‘Momentum’

The news was originally announced in a tweet by Willy Woo, market analyst and founder of Woobull.com

The “Bitcoin Momentum Chart” appears to lead the price of bitcoin  (Similarly to the RSI and MACD, but specifically for bitcoin) as changes in crowd psychology tend to happen before prices do.

As Bitcoinist has written before, Bitcoin’s price is typically followed by public interest.

The indicator is also seemingly able to quantify price trends based on bull markets and changes in momentum plotted on a separate line graph. This indicator could help traders understand if a strong price trend is in force.

It should be noted that there is already a directional movement indicator that was developed in the 1970s named the Average Directional Index (ADX). The ADX appears to follow the same premise as the Bitcoin Momentum Chart — although this new chart might be easier for new traders to read and therefore understand.

Signaling and investment-related charts

Woobull seemingly offers traders and investors charts and data that they cannot easily find online. For instance, many, (if not all) of the charts on Woobull are sourced outside of the mainstream technical analysis sites such as tradingview.com or CoinMarketCap.

The site, therefore, might be more suited towards investors who look at long-term and secular trends than swing or day traders that look at the hourly candles. Still, the information provided from Woobull remains objectively useful for anyone with a technical or financial interest in Bitcoin.

One interesting chart above is titled “Bitcoin Risk Adjusted Returns vs Other Assets.” The chart is used to “compare Bitcoin ROI, adjusted for its risk, to other assets.”

Another graph to pay attention to is its “HODL Waves” which claims to offer “A cross-sectional view of Bitcoin HODLers over time, shows demand and supply from new and old HODLers.”

The Bitcoin Valuation cap shows “a collection of useful valuation metrics on Bitcoin.”

The Bitcoin NVT ratio shows when the currency is either overbought or oversold, which functions identically to the existing calculations of the RSI or stochastics that also measure extreme readings.

Bitcoin monetary and network statistics

The below chart shows the difference between Bitcoin’s network value and network volume.

The graph below claims to “chart user-centric metrics tracking network congestion, e.g. payment fees, confirmation times.”

The graph below shows the growth (inflation) of bitcoin over time.

In closing, there are many more charts that WooBull offers that will be of interest to anyone invested in Bitcoin. Interested Bitcoiners are encouraged to check them out.

Will you be using Woobull in future? Let us know in the comments!


Image source: Woobull.com, Shutterstock

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Dub 22

Think Your Altcoin Will Beat Bitcoin ROI? Then Don’t Look at This Chart

Bitcoin dwarfs every other altcoin when it comes to return on investment (ROI) since initial exchange listing, data shows. Had you threw in just $100 bucks into BTC in 2010, you would be a millionaire today.


Bitcoin ROI Shows Why They’re Called ‘Altcoins’

A new visual graph from DataLight perfectly illustrates just how impressive Bitcoin ROI (return on investment) has been over the past decade.

Buying just $100 USD worth of Bitcoin in mid-2010 would have netted you a cool $1.3 million today. That is, if you managed to ‘hodl’ instead of ‘sodl’ your precious bits until today.

By comparison, every other cryptocurrency has been dwarfed by BTC when it comes to ROI since being first listed on an exchange.

Granted, when it comes to trading on exchanges, Bitcoin has an almost 3 year head start even on Litecoin, one of the oldest ‘altcoins’ and the first to use the Scrypt hashing algorithm. But for those banking on the ‘silver to Bitcoin’s gold’ to beat Bitcoin’s returns anytime soon may be out of luck.

Certainly, Litcoin has seen some impressive rips in recent years. However, the price of Litecoin has had a much different trajectory while being at the mercy of BTC market cycles.

For example LTC/USD peaked at around $35 in November 2013. These same price levels then repeated in July 2017….and again in January 2019. This is more reflective of speculative, pump-n-dump behavior than a (secondary) store of value.

Bitcoin, on the other hand, stands out  as it continues to post higher highs after every bubble making it the perennial leader of cryptocurrencies today.

Ethereum (ETH) 00 has been the best performing altcoin since its exchange debut in 2015. One hundred bucks into Ethereum would have netted you roughly $68,000 today at around $170 per ETH. Though, undoubtedly, this figure would be much higher at Ethereum’s all-time high of nearly $1,400 in January 2018.

Bitcoin-branded forks like Bitcoin Cash, meanwhile, have fared even worse, actually depreciating in value since their inception.

Bitcoin Apples to Altcoin Oranges

More recently, Bitcoinist highlighted the stellar performance of Binance Coin (BNB) 00, which has skyrocketed in value since launching in mid-2017. In fact, it has become the first cryptocurrency to surpass the January 2018 all-time high.

At the same time, comparing in-house digital tokens like BNB (and pretty much every other ‘alt’ with a foundation or a company behind it) to Bitcoin is like comparing apples to oranges.

In fact, every single altcoin is paired against bitcoin by default for a reason. Admittedly, some altcoins have performaned marvelously against BTC since their inception, particularly on shorter timeframes.

But as the saying goes: the faster they rise, the faster they fall.

That’s because their low market caps on exchanges are both a weakess and a strength. In bull-markets, for example, a lower cap means a coin can be pumped much easier allowing it to outpace the gains of high cap cryptocurrencies like Bitcoin.

On longer timeframes, however, the story repeats over and over again as Bitcoin demonstrates who’s king.

#REKT? Not With Bitcoin! Yearly ROI On Largest Cryptocurrency Still Tops 150%

Think Your Favorite Altcoin Can Beat BTC? Good Luck.

Therefore, it is no surprise that Bitcoin, being a truly leaderless, decentralized and open-source cryptocurrency, has attracted the most network effect and hashing power to be the most secure blockchain today.

Subsequently, this give investor confidence more confidence in Bitcoin above all. It also means that it’s the de facto choice for trustlessly transferring value over any other cryptocurrency regardless of fees.

It’s also no coincidence that the SEC is considering approving a Bitcoin ETF only. It’s why Bitcoin trading instruments have been the first to hit traditional markets; and why investors are increasingly calling it ‘irresponsible’ not to have exposure to BTC in 2019.

In fact, data has shown that allocating only 1 percent of one’s portfolio to bitcoin historically outperforms the S&P 500, gold and US Treasury bonds.

But, more importantly, it also highlights the possibility of a Lindy effect, suggesting that the ‘internet of money’ could be a zero sum game. If so, then betting on ‘the next bitcoin’ looks more like gambling. Whereas bitcoin is increasingly becoming the safer play and one of the best investment opportunities in generations.

As InterchangeHQ cofounder, Dan Hedl says:

You think the altcoin you’re holding will beat Bitcoin’s return? Good luck.

Is investing in altcoins a good strategy compared to only bitcoin? Share your thoughts below!


Images via Shutterstock

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Dub 16

Bitcoin Consolidating Above $5K a ‘Positive Sign,’ Says Crypto Hedge Fund

It’s safe to say that Bitcoin has had a good Q1 2019, gaining upwards of 30 percent of its value since January 1st. Now, a new report has it that if the price consolidates above $5,000, this could lead to further increases throughout the year. 


Bitcoin Price $5K Consolidation a ‘Positive Sign’

According to a new report by BitBullCapital, a cryptocurrency hedge funds manager,”the fact that Bitcoin has managed to retain gains from early April is a very positive sign.

Moreover, CEO Joe DiPasquale outlines that the bitcoin price 00 is seeing consolidation above $5,000. If this continues for another week or two, it could lead up to a shot at the $5,500 level.

Going further, the report reiterates that the latest BTC/USD rally was caused by a large order, which was executed simultaneously on multiple exchanges and was likely an algorithmic one.

Notedly, such a move should have been viewed with a certain skepticism as it’s not organic or steady in its nature. However, it brought back substantial market momentum, which is considered to be a positive sign.

It’s worth noting, though, that Bitcoinist reported that another reason for the latest rally might be hidden in the increased activity across the board, as data shows that the number of active wallets has risen by as much as 40-60 percent.

This, with a significant uptick in institutional interest, are also likely the reasons why Bitcoin managed to sustain the recent gains.

But 2017-Type Run ‘Not in the Near Future’

On the other hand, the cryptocurrency hedge fund also believes that a run similar to that back in 2017 is unlikely to be seen “in the near future.”

It notes that for this to happen, there needs to be a major catalyst such as “global governmental approval and integration with mainstream services and portals.”

…[W]e do not believe a run similar to the 2017 drive can be seen again, at least not in the near future and particularly not in the absence of major catalysts such as global governmental approval and integration with mainstream services and portals… [W]e do expect steady growth in the years the come, building the foundation for a surge when the timing is right.

DiPasquale also says that there is a real risk for the cryptocurrency failing to maintain its current range and to retest the $5,000 level in the coming weekend if the trading volume starts to drop. Reads the report:

If $5,000 breaks, we are likely to see support around $4,700 – $4,800 and reconsider market sentiment and fundamentals.

However, Bitcoinist reported that the Mayer Multiple by Trace Mayer, a key indicator which called 2015’s bottom, is flashing again, suggesting that the price may have already bottomed.

Other Cryptocurrencies Would Benefit

On another note, it also outlines that an increase in Bitcoin’s price could also cause other cryptocurrencies, especially those closely related to it, to surge as well.

This already happened with Litecoin, which gained upwards of 55 percent following Bitcoin’s rally.

The cryptocurrency has since lost some of its gains but is still substantially higher than prices from last month.

BitBull Capital manages cryptocurrency hedge funds, and is the “the first cryptocurrency fund of funds,” BitBull Fund manages a strategically selected bundle of 10 of the more than 600 crypto hedge funds for its investors, including gaining access to exclusive, closed funds and $M-minimum funds.

What do you think of the recent report? Do you think we’ve entered a new bull run or are the bears still in charge? Don’t hesitate to let us know in the comments below!


Images courtesy of Shutterstock, TradingView

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Dub 14

It’s ‘Irresponsible’ For Investors Not To Have Any Bitcoin Exposure – Says Xapo CEO

Xapo CEO, Wences Casares, believes that it would be “irresponsible” for any investor not to have at least a one percent position in bitcoin as it could have a bigger impact on the world than the internet. 


Minimal Bitcoin Exposure, Maximum Gains

In an essay published by Kana and Katana back in March 2019, the Xapo chief laid down an argument for Bitcoin to take up one percent of every investment portfolio. According to Casares, a $10 million with a one percent allocation to BTC could yield close to $25 million within seven to ten years.

Casares based his analysis on his forecast that BTC could top $1 million within the stated timeframe. Conversely, if Bitcoin fails, the portfolio would only have lost the original one percent – $100,000.

Wences Casares

According to Casares:

Bitcoin offers a unique opportunity for a non-material exposure to produce a material outcome. It would be irresponsible to have an exposure to Bitcoin that one cannot afford to lose because the risk of losing the principal is very real. But it would be almost as irresponsible to not have any exposure at all.

Investment legend, Biller Miller is a popular example of Casares’ logic. In July 2017, Miller took up a one percent position on BTC. By mid-December 2017, BTC accounted for 50 percent of Miller’s total asset under management, simply because BTC/USD gained almost 700 percent in value during that period.

The 2018 bear market probably, reduced Bitcoin’s proportion with respect to the rest of Miller’s portfolio. However, with BTC price still double what it was in July 2017, Miller’s bitcoin bag is still in the green.

Bitcoin Resembles the Early Internet

For Casares, whose company stores over $10 billion in BTC for clients in Swiss ‘bunkers,’ the signs pointing towards Bitcoin’s long-term success continue to become evident as time passes. For one, the Xapo chief says Bitcoin resembles the early internet in many ways.

Casares highlighted how since the establishment of the Internet, the world has seen little of protocol developments and with more emphasis on creating companies. Bitcoin, according to the Xapo CEO represents a new paradigm-altering protocol that could have even greater ramifications than the Internet.

Coming from a purely technical standpoint, Casares does agree that there exists the possibility that Bitcoin might not necessarily fail, but become obsolete. He says companies could create solutions on a protocol level that appeal more to users than Bitcoin’s current state.

Casares has previously made expressed similar sentiments, describing Bitcoin as an intellectual experiment that could still fail.

However, Bitcoin’s leaderless open-source and borderless approach to both its tech and economics are diminishing this possibility alongside its ever-growing network effect and first-mover advantage.

Meanwhile, there is a growing unease with the policies of governments and central banks that are making BTC become an even more attractive proposition to investors as a hedge.

Forget Altcoins, BTC is the Real Deal

Casares also adds that the other over 2,000 altcoins don’t stand a chance. The Xapo CEO says Bitcoin as a protocol is already on its way to succeeding in ways altcoins can’t.

5 Altcoins with Major Events the week of April 1, 2018 (Gains Likely to Beat BTC Returns!)

Elaborating on the gulf in utility and adoption, Casares noted:

Over 60 million people own Bitcoin and over 1 million people become new owners every month. The other 1,000 cryptocurrencies [that process at least one transaction per day] have less than 5 million owners combined, so Bitcoin will add more users in the next 5 months than those 1,000 cryptocurrencies added in their combined history.

Back in August 2018, Casares declared that altcoins will eventually face a “mass extinction event.” Commentators like Matt Hougan of Bitwise and Barry Silbert of Digital Currency group also believe that most altcoins will not survive the crypto version of the dot-com bubble bursting. After which, most altcoins will go to zero.

Bitcoin’s superiority becomes even more apparent given that its value transfer dwarfs all cryptocurrencies despite having fewer BTC transactions per day than some altcoins.

Should investment portfolios consider taking up a one percent position on Bitcoin? Share your thoughts with us in the comments below.


Image via Twitter (@wences), realidadeconomica.com.ar

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Úno 26

Swiss Bank Julius Baer Launching Crypto Services to Meet ‘Increasing Demand’

The Swiss private bank industry is stepping up its efforts to become a formidable world player in the crypto industry. Now, Julius Baer, one of the largest and oldest Swiss private banks, and SEBA Crypto AG are joining forces to offer their clients a range of digital asset services, in a fully regulated environment.


Major Swiss Banks Embracing Cryptocurrencies

The Julius Baer group is partnering with SEBA to respond to its clients’ growing demands for crypto asset services. According to the announcement on February 26, 2019,

Julius Baer will enter into a partnership with SEBA to take advantage of their innovative platform and capabilities in order to provide Julius Baer clients with leading-edge solutions in the area of digital assets to meet an increasing demand.

At the announcement, Peter Gerlach, Head Markets at Julius Baer, remarked,

At Julius Baer, we are convinced that digital assets will become a legitimate, sustainable asset class of an investor’s portfolio. The investment into SEBA as well as our strong partnership is proof of Julius Baer’s engagement in the area of digital assets and our dedication to make pioneering innovation available to the benefit of our clients.

Julius Baer’s move follows the trend set by other Swiss private banks. In August 2017, Maerki Baumann Private Bank announced that it would be accepting cryptocurrencies. And, Falcon bank already allows direct crypto transfers, while its blockchain facilitates investments in Bitcoin, Bitcoin Cash, Ether, and Litecoin.

Moreover, Switzerland’s stock exchange Six has been offering a Bitcoin-heavy cryptocurrency ETP for some time now and planning its own security token offering (STO) later this year.

Bridging the Gap Between Fiat and Cryptocurrencies

SEBA, headquartered in Zug, Switzerland, aims “to build a FINMA supervised and progressive technological bridge between the traditional and the crypto worlds.”

SEBA is currently petitioning The Swiss Financial Market Supervisory Authority (FINMA) for a banking license.

Swiss Regulators Engage Banks to Prevent Exodus of Cryptocurrency Ventures

The partnership with Julius Baer will take effect when SEBA obtains a securities dealer and banking license from FINMA.

Thus, besides providing a platform for storage, transaction and trading solutions for digital assets, SEBA will ensure that these services will be delivered within the FINMA regulatory framework. In this regard, Guido Buehler, CEO SEBA, underlines,

We are very proud to have Julius Baer as an investor. SEBA will enable easy and safe access to the crypto world in a fully regulated environment. The cooperation between SEBA and Julius Baer will undoubtedly create value for the mutual benefit and to the clients.

How do you think Julius Bair and other major Swiss banks’ ventures into the crypto space will impact Bitcoin’s value? Let us know in the comments below!


Images courtesy of  Twitter/@Juliusbaier, Shutterstock

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Led 25

Wall Street Invests $20M to Bridge Blockchain With Capital Markets

Despite the bear market, and rising camp of naysayers predicting Bitcoin’s demise, Wall Street is steadily plowing funds into crypto. The latest blockchain company to catch investors’ eyes is Symbiont, a New York startup bringing blockchain tech to capital markets.


2019 The Year of Institutional Investment

Bitcoinist reported yesterday that Nasdaq is positively bullish on bitcoin. Ahead of Davos, Nasdaq CEO Adena Friedman stated unequivocably that cryptocurrencies would play an important role in the future. She even predicted that bitcoin could become a global currency.

Now the world’s second largest stock exchange Nasdaq Ventures initiative is taking the lead in Symbiont’s series B funding round. Along with Citigroup, and other high-name investors including Mike Novogratz’s Galaxy Digital Holdings Ltd, they’re investing $20 million.

This vote of support in Symbiont shows that Wall Street is still anxious to make its way into the cryptocurrency space. Despite a torrid 12 months with as much as 90 percent of value wiped off of some altcoins.

Blockchain Technology Called into Question

According to Symbiont CEO Mark Smith, this much-needed backing from Wall Street comes not only during the crypto winter but at a time when blockchain technology is being called into question as well.

After an overhyped 2017, 2018 left people’s expectations deflated like a helium balloon after a children’s party. Smith told Bloomberg that we were now entering a much more “realistic phase” about what blockchain can and cannot do.

We are leaving the peak of the hype cycle and entering the trough of disillusionment, especially for people who inappropriately applied this technology hoping it would become a panacea for solving all their problems.

From finding a cure to cancer to eradicating corruption in the supply chain, blockchain was the solution. However, it’s becoming clear that while the technology is undoubtedly important, its uses are limited–for the current time.

What Makes Symbiont a Good Bet?

Symbiont’s smart contract platform Assembly allows financial institutions to verify and share data. By using smart contracts, the company aims to make the mortgage bond market more efficient. It also plans to speed up times for syndicated loans.

As well as the backing of Nasdaq, Citi, Novogratz, and Jim Pallotta’s Raptor Group Holdings, Symbiont has also teamed up with Vanguard Group Inc.

This will be an important partnership that will enable investment giant Vanguard to apply blockchain tech to update the index data behind mutual funds.

Symbiont will use the funds to improve their data management process and work on private equity, mortgages, and syndicated loans.

And as for Nasdaq? The world’s second largest stock exchange will be looking into opportunities to capture new clients who want to tokenize assets and use smart contracts through Symbiont’s Assembly platform. Watch this space.

Will this latest cash injection materialize for the Wall Street investors? Share your thoughts below!


Images courtesy of Shutterstock

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