PR: Hybrid Blockchain XinFin ICO Enters Second Week, Announces Institutional Partnerships

Hybrid Blockchain XinFin ICO

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

XinFin’s Hybrid Blockchain ICO was announced last week after launching minimum viable products and ongoing pilot projects with several institutions. The utility coin XDCE offering enters second week.

XinFin, the first of it’s kind Hybrid blockchain platform is entering into the second week of it’s ICO for it’s utility coin XDCE. XDCE is an ERC 20 token that is also 1:1 swappable with the XDC that has utility in hosting masternodes as well as to be used on tradefinex.org platform for Global Trade and Finance beta platform.

Youtube : https://www.youtube.com/watch?v=K-tHZkV6zAs
Telegram : https://t.me/xinfintalk
Token Sale Page : www.xinfin.io
Main Website : www.xinfin.org

“XinFin XDC Masternodes can float tokenized or non-tokenized private subnetworks which can be used by banks, utility companies, communities or enterprises for blockchain enabling and tokenizing their assets. XinFin network is a peer to peer contract platform running on stake based DPOS consensus which can use existing approved payment channels or use XDC as a settlement layer only through approved financial institutions. The architecture makes XinFin fully compliant with laws of the land.” said Karan Bharadwaj, CTO of XinFin.

“TradeFinex.org Platform is the first app launched on the XinFin’s hybrid blockchain platform aimed at bridging the $27 trillion infrastructure deficit globally. It is connecting buyers, suppliers and financiers through it’s trusted network of trade associations, financial institutions, policy makers and regulators.” he added.

XinFin launched the tradefinex platform at second peer to peer Digital Asset summit organized by Assocham in India and extended the platform to over 450,000 enterprise members of Assocham. Amongst its institutional tie ups are Global Youth Economic Summit by NM College group that extends the XinFin platform to over 35,000 students of various affiliated colleges. Singapore based Ramco Labs also announced to build hybrid blockchain solutions with XinFin on its XDC01 protocol for global supply chain finance. Upcoming major global expansion includes Canada and Sri Lanka to be announced in the coming weeks.

Twitter: https://twitter.com/XinfinF
Slack: https://xinfin-public.slack.com/
Slack Invitation : https://launchpass.com/xinfin-public

Contact Email Address
info@xinfin.org
Supporting Link
xinfin.io

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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Number of Cryptocurrency Hedge Funds Rises to 226 Globally

Number of Cryptocurrency Hedge Funds Rises to 226 Globally

The number of global cryptocurrency hedge funds has reached a record high of 226, according to research firm Autonomous Next. The hedge funds tracked by leading hedge fund database provider Eurekahedge show a return of 1,477.85 percent in 2017 on average.

Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies

226 Crypto Hedge Funds

Number of Cryptocurrency Hedge Funds Rises to 226 GloballyAccording to Autonomous Next, the London-based fintech practice of Autonomous Research, the number of hedge funds focused on trading cryptocurrencies more than doubled in the past four months. Reuters reported:

The number of crypto hedge funds more than doubled in the four months to Feb. 15…The research firm recorded a record high of 226 global hedge funds with such a strategy, up from 110 global hedge funds as of Oct. 18.

On August 29, the number of crypto hedge funds was only 55, and it was only 37 at the start of 2017. Furthermore, the firm revealed that assets under management of the funds are currently between $3.5 and $5 billion.

Autonomous Next partner Lex Sokolin commented:

While the softer prices of crypto assets do create a more difficult environment for investors, I do not think it will pause the influx of funds and other financial institutions building products in the space…It would take the extreme case of the entire space contracting by 80 percent and high regulation before the flow of funds turns around.

Crypto Funds Gained 1,478% in 2017

Number of Cryptocurrency Hedge Funds Rises to 226 GloballyAccording to an independent hedge fund data provider, Eurekahedge, cryptocurrency-focused funds lost an average of 4.6 percent in January. “Some invest in just bitcoin, taking both long and short positions, some buy a basket of cryptocurrencies and others exploit the arbitrage between different exchanges’ prices,” Reuters further noted.

Number of Cryptocurrency Hedge Funds Rises to 226 GloballyEurekahedge is tracking nine hedge funds with collective assets of $1 billion. They “made an average of 1,477.85 percent in 2017,” the news outlet conveyed.

The founder of high growth blockchain fintech firm Bitspread, Cedric Jeanson, commented that “some of the hedge funds charge high fees – an average of 1.6 percent for management and 17.5 percent for performance for funds tracked by Eurekahedge – even though they are using largely passive strategies,” the publication added.

Referring to crypto funds in general, Diana Gibson, a managing director at investment consultant Cambridge Associates, pointed out:

Gains in 2017 were largely generated from being long.

In December of last year, Pantera Capital’s bitcoin fund reportedly returned 25,004% for investors since its launch in 2013. The gain was due to the skyrocketing price of bitcoin which peaked at $19,666 on December 17, according to data from Bitstamp.

Number of Cryptocurrency Hedge Funds Rises to 226 Globally
BTC chart.

What do you think of all these hedge funds investing in cryptocurrencies? Let us know in the comments section below.


Images courtesy of Shutterstock, Bitcoincharts, Autonomous Next, and Eurekahedge.


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British Couple Lawyer Up as $840k Cryptocurrency Divorce Heats Up

British Couple Lawyer Up as $840k Cryptocurrency Divorce Heats Up

Divorce is never fun and rarely simple, but when one party – generally the male – owns cryptocurrency, there’s an added layer of complexity. With cryptocurrency still relatively new as an asset class, there have been very few cases to date in which the unhappy couple have squabbled over altcoins. A British law firm professes to be handling three such cases at present, with the largest involving a tug-of-war over crypto valued at $840,000.

Also read: Divorce is Messy – Especially When You Own Bitcoin

Kissing Goodbye to the Ball and Blockchain

It was only a matter of time until a high profile, high value crypto divorce grabbed the headlines. In the event, it was Britain that claimed the dubious honor of hosting the world’s largest cryptocurrency untethering to date. “Crypto cash divorce nightmare looming” reads the cheery press release published by UK law firm Royds Withy King, on Valentine’s Day no less. Bolstering the stereotype about opportunistic lawyers, it reads:

Royds Withy King is acting on three separate high value divorce cases where spouses are seeking the disclosure and a potential share of cryptocurrency assets.  These are a first wave of cases that the firm is expecting. The three cases all involve husbands that have invested in or have purchased cryptocurrencies, including Bitcoin, Litecoin, Ripple and Ethereum.

The most lucrative of these cases – for all parties – concerns “an original investment of £80,000 [of cryptocurrency] in November 2016, which was valued at £1m in December 2017 and is now worth £600,000 [$840,000]”.

British Couple Lawyer Up as $840k Cryptocurrency Divorce Heats Up
Vandana Chitroda of Royds Withy King

One of the firm’s partners speaks of there being “a traceability nightmare” in cases where a spouse hasn’t disclosed their assets. One partner’s nightmare, of course, may be another’s dream. As previously ventured on news.Bitcoin.com, “Parting with half of one’s cryptocurrency collection doesn’t come easy…Progressive males let their wife keep her surname and give up half their crypto come the divorce. Patriarchal oppressors put it all in monero and deny everything.”

British Couple Lawyer Up as $840k Cryptocurrency Divorce Heats UpWhile onlookers who aren’t embroiled in a crypto divorce may derive a degree of schadenfreude from such cases, there are serious issues at stake. In many countries, a 50% division of assets is awarded, despite the husband often being the main breadwinner, because the wife’s contribution is recognized in other domains, including caring for their children and supporting his career. Making money from cryptocurrency calls for shrewdness, foresight, and iron hands, but qualifying it in the same bracket as a 40-hour-per-week job may be stretching it. Unless the husband embroiled in the $840k case is a full-time crypto trader, he likely made his money simply from buying early and hodling.

Always 50/50 In Relationships?

Even if the man’s spouse isn’t seeking an equal division of cryptocurrency, he may, for various reasons, begrudge parting with a portion of his portfolio. As Vandana Chitroda, a partner at Royds Withy King, points out: “[Volatility] presents a real challenge when valuing cryptocurrencies. Valuations will have to be carried out a number of times during the divorce process as the case progresses.”

If the couple are to reach an amicable resolution, the wife may find her husband more willing to come to an agreement in a bear market than during a bull run. Whether she’d be willing to accept a payoff while the crypto markets are mired in the red is another matter entirely. In the years to come, divorce courts may be prove to be a prime testing ground for determining how cryptocurrencies are classified and valued.

Do you think crypto assets should be equally apportioned in the event of a divorce? Let us know in the comments section below.


Images courtesy of Shutterstock, and Royds Withy King.


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Dubai Issues License to Cryptocurrency Firm

Dubai Issues License to Cryptocurrency Firm

The largest free economic zone in the UAE, with zero percent personal and corporate income tax, has started issuing licenses to firms trading cryptocurrencies. The first license has been issued to a gold trader that has recently started offering cryptocurrency services.

Also read: Japan Cracks Down on Foreign ICO Agency Operating Without License

Attracting Crypto Businesses

UAE’s Largest Free Economic Zone Issues License to Cryptocurrency FirmThe Dubai Multi Commodities Centre (DMCC) is a government entity established in 2002 to enhance commodity trade flows through Dubai. DMCC Free Zone is the largest and fastest growing free economic zone in the UAE.

“We perform a range of roles which continue to position Dubai as the preferred destination for global commodities trade and DMCC as the world’s No.1 Free Zone,” offering zero percent personal and corporate income tax, the center’s website states. Today, more than 14,100 multinational corporations and startups call DMCC home, with almost 90,000 people living and working there.

UAE’s Largest Free Economic Zone Issues License to Cryptocurrency FirmThe Centre has started issuing licenses to allow firms trading in cryptocurrencies to operate from its free zone, Thomson Reuters Zawya reported on Monday.

DMCC’s executive director for commodities, Sanjeev Dutta, told the publication that the Centre is “beginning to facilitate” a market in cryptocurrencies which, he acknowledged, is unregulated. Citing that firms looking to set up in the zone would be considered on a “case-by-case” basis, he elaborated:

To me, what is important is the fact that you are still evaluating it as part of your innovation strategy. You are not saying ‘no’ to something. You are not saying ‘yes’ either, but you are exploring, so you are clearly ahead of the others when the time to make a decision comes.

Cryptocurrencies as Commodities

DMCC is a member of the Global Blockchain Council, which began as a Dubai Smart City project and has 46 member organizations globally today. The Centre’s director of innovation hub, Franco Bosoni, said that a global consensus is emerging which favors classifying cryptocurrencies as commodities, the news outlet detailed and quoted him explaining:

DMCC’s view is that these [cryptocurrencies] meet the test of a commodity. They’re priced based on supply and demand, produced and sold globally at a uniform quality and (are) indistinguishable between products.

Wai Lum Kwok, head of capital markets for Abu Dhabi Global Markets Regulatory Authority, told the publication on Sunday that the regulator is “reviewing and considering the development of a robust, risk-appropriate regulatory framework” for crypto exchanges and intermediaries. Emphasizing that no timeframe has been set, he added:

As we develop our framework, we will also want to check in and have the conversations with, for example, US regulators, Japanese regulators and so on and so forth, so that there is some alignment of approach to avoid any regulatory arbitrage.

First License Issued

UAE’s Largest Free Economic Zone Issues License to Cryptocurrency FirmThe first license for the Free Zone reportedly went to Regal Assets, a gold trader and storage provider with offices in the US, Canada, and the UAE. The company added cryptocurrencies to its product line at the end of last year, offering brokerage services and an insured, high-security cold storage service for bitcoin, ether, bitcoin cash, ethereum classic, ripple, and dash.

According to Bloomberg, “Dubai gold trader Regal RA DMCC is the first company in the Middle East to get a license to trade cryptocurrencies.” The news outlet quoted DMCC acknowledging in a statement, “The company will offer storage of bitcoin, ethereum and other cryptocurrencies in a vault located in DMCC headquarters in Almas Tower in Dubai.”

DMCC Executive Chairman Ahmed Bin Sulayem was quoted by the publication, “At the heart of DMCC’s long-term strategic growth plan is the use of technology and innovation to disrupt and connect new markets, industries and customers,” adding that “the announcement today embodies this approach.”

Do you think more crypto companies will move to this free economic zone? Let us know in the comments section below.


Images courtesy of Shutterstock and DMCC.


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The 65 Percent Price Dip Has Made ‘Bitcoin Whales’ A lot More BTC

The 65 Percent Price Dip Has Made 'Bitcoin Whales' A lot More BTC

Last year bitcoin had a phenomenal run leading up to its all-time high of $19,600 per BTC this past mid-December. The price over the past few weeks had since dipped to a low of $5,900 on Monday, February 5, losing close to 65 percent of its value in a short period. The dip has ‘rekt’ a lot of cryptocurrency traders but the ‘richest bitcoin holders’ have gained thousands more BTC taking full advantage of these significant price variances.

Also read: Following Money Through the Bitcoin Laundry Is Not So Easy

Bitcoin Whales Use Big Price Swings to Accumulate More Wealth

Cryptocurrency enthusiasts understand that digital currencies often fluctuate in price and over the years many traders have been able to take advantage of these swings. Essentially if a trader can guess the top and sell their bitcoins, then follow that maneuver by buying back in at the bottom, that individual can gain a lot more coins. One particular group of BTC holders that have taken advantage of these swings time and time again  are the top 100 richest ‘bitcoin whales.’ The individuals or groups of people known as bitcoin whales hold vast quantities of cryptocurrency and they can sometimes use their assets to ‘move the market.’ According to data collected from Bitinfocharts.com most of the 100 richest BTC addresses haven’t lost any money during the last 65 percent dip — In fact, their stacks of BTC increased exponentially.

The 65 Percent Price Dip Has Made 'Bitcoin Whales' A lot More BTC

The Richest Address Has Gained An Exponential Number of Bitcoin’s Since 2016

Take for instance the owner of the most substantial amount of bitcoins located in one address which currently holds 167,000 BTC at the time of writing. The wallet started collecting BTC approximately two years ago when the address recorded its first deposit of roughly $840 dollars worth of BTC. Now there is $1.4 billion USD worth of BTC held in the wallet as thousands of coins have been collected since its inception. Coincidentally this bitcoin whale has been able to acquire a lot more BTC during each meteoric rise in value, and the typical dumps that follow soon after. In 2017 there have been six ‘major’ corrections that have seen BTC lose over 30 percent or more of its value, and this particular whale has gained more funds every single time.

The 65 Percent Price Dip Has Made 'Bitcoin Whales' A lot More BTC
The top bitcoin address has 167,000 BTC at the time of writing worth $1.4 billion USD.

‘Whale Sightings’ and Speculating Collusion

Many of the wealthiest bitcoin addresses besides wallets that have been dormant for years have followed the same pattern. These bitcoin whales have been able to accumulate more bitcoins due to catching the highs and lows at precisely the right time. Perusing through the top 100 richest addresses shows many of them sold thousands of BTC at once between November and December 2017. Bitcoiners have had many ‘whale sightings,’ and you can often see forum posts and Twitter conversations concerning these market movers during big price spikes and subsequent dumps. For example, on November 12, 2017, when cryptocurrencies were reaching new price highs, blockchain spectators noticed 25,000 BTC was sent to the exchange Bitfinex.

The 65 Percent Price Dip Has Made 'Bitcoin Whales' A lot More BTC
Chart created by the Great Wall of Numbers.

The most affluent bitcoin holders have been a controversial subject for quite some time. Mainstream media likes to assume that 1,000 addresses own more than 40 percent of the market. Some speculators believe whales can even contact each other, which could lead to enormous BTC market movements. Kyle Samani, the managing partner at Multicoin Capital, believes this theory and states:        

I think there are a few hundred guys — They all probably can call each other, and they probably have.

The Data Collected from the Richest Addresses to Depict Wealth Distribution Always Fails

However, a research report published last fall reveals that the assumption that “1,000 people own 40% of the BTC market” is false. According to data collected by the Bambou Club, many models of the current distribution of bitcoin wealth that analyze wallets and addresses usually “always fail.” Bambou Club says that the issue with most data estimates is they fail to recognize the relationship between the owner, wallet, and address. “It is not necessarily 1: 1: 1,” explains the report.

“That is to say, it is not true by definition that one person has one wallet that uses a single bitcoin address,” the trading analysis group Bambou Club notes.       

For a start, a person may hold many bitcoin wallets. And a wallet can make use of many bitcoin addresses. (Indeed it is advisable to generate a new address every time you use your wallet for reasons of anonymity.) So the relationship can be 1: Many: Many.

The 65 Percent Price Dip Has Made 'Bitcoin Whales' A lot More BTC
Bambou Club’s distribution data shows owning 15 BTC puts an individual in the 1% category.

Whales Are Getting Bigger, But It Only Takes 15 BTC to be In the Top One Percent

Essentially using a different method of data collection, Bambou Club derived the distribution of global wealth and the global ownership of bitcoin numbers, then the researcher mapped the wealth distribution to calculate a better bitcoin distribution analysis. According to the study, there are more than 25 million bitcoin owners, and it only takes 0.153 BTC to be placed in the top 30 percent most affluent bitcoin owners. Moreover, you only need “15 BTC to be in the top 1 percent,” the data reveals.

While it’s true bitcoin whales are continuing to accumulate BTC over time, mainstream media’s portrayal of the 1 percent is a bit skewed according to a different method of analysis. We don’t know if the whales work together to move the price other than mere internet speculation. But we do know that over the course of various market fluctuations over the years, and especially this past 70 percent dip, many of them have become much larger fish in the sea of bitcoin wealth distribution.

What do you think about bitcoin whales taking advantage of large price spikes and corrections to accumulate more BTC? Do you believe the BTC wealth distribution is too concentrated or do you think that Bambou Club’s analysis is more correct? Let us know your thoughts on this subject in the comments below.


Images via Pixabay, the Great Wall of Numbers, Bitcoin.com, Bambou Club, and Bitinfocharts.com.


Do you agree with us that Bitcoin is the best invention since sliced bread? Thought so. That’s why we are building this online universe revolving around anything and everything Bitcoin. We have a forum. And a casino, a mining pool, and real-time price statistics.

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Ledger X President: $50K Bitcoin Bet Saw a $1M Premium the Same Day

Ledger X President: $50K Bitcoin Bet Saw a $1M Premium the Same Day

Last year on December 22 a firm purchased a $1 million dollar options trade on the Ledger X platform that wagered the BTC/USD market price will be $50,000 by the last month of 2018. This week Juthica Chou, the president of Ledger X chatted with Jared Blikre at the Yahoo Finance All Markets Summit’s cryptocurrency presentations and explained to the audience how the bitcoin trade was settled for a premium.

Also Read: Coincheck Announces JPY Withdrawals Will Resume Next Week

The Mysterious Bet Placed Last December That Wagered Bitcoin Will Touch $50K By the End of 2018

Last year after the price of BTC hit the $19K region on December 16, the cryptocurrency’s value started tumbling downwards and touched the $15K zone just before the holidays. On December 22 a company surprised a lot of people when they purchased a Ledger X futures contract betting the price of bitcoin would be $50,000 by the last month of 2018. An individual “familiar with the matter” told the publication Business Insider that the $1 million bet on bitcoin was placed by a firm called Blocktower Capital. Blocktower is a well-known hedge fund that has 175 startups under its belt, and was founded by Ari Paul a former executive at Susquehanna. After the Ledger X sale was executed Paul tweeted to his Twitter followers, “I wonder who bought these?”

Ledger X President: $50K Bitcoin Bet Saw a $1M Premium the Same Day

Earning Yield Off of Bitcoin Market Volatility

At the Yahoo Finance All Markets Summit this week the president of Ledger X, Juthica Chou, explained how the call overwrite was executed and some of the reasoning behind the trade.

“This is an example of a call overwrite that was done back in December,” Chou explains showing the audience a chart of the million dollar trade settled on December 22. “So a lot of our market participants are bitcoin holders or have bitcoin on their balance sheet — But they are not really earning any yield off of it, so a common type of trade, even in the stock space to earn yield is something like a call overwrite.”

In this case back then bitcoin was $15,000 USD, the seller deposited 275 BTC with Ledger X. Then they sold 275 of the $50,000 strike call options expiring on December 2018.

Ledger X President: $50K Bitcoin Bet Saw a $1M Premium the Same Day A Million Dollars in Premium Made That Day

Chou explains behind the scenes the trade is very profitable as the contract buyers sold the options for a premium the day the trade took place.         

“So one way to think about it is on trade date they sold these options for $3,600 per option,” Chou reveals to the All Markets Summit’s Jared Blikre. “Given the volatility of bitcoin, it’s a pretty healthy premium which is about 25 percent of the spot price at the time.”

They collected a million dollars in premium that day, and as soon as the trade is done, the premium is in their account and they can withdraw it. Then the trade gets held for a year or until someone trades out of it — So that expiration if bitcoin is above $50,000 then the seller will essentially sell the bitcoin for $50,000 and received another $14 million dollars.

Ledger X President: $50K Bitcoin Bet Saw a $1M Premium the Same Day

Virtual Trading Pits Designed With Digital Currency In Its DNA

The president of Ledger X seems optimistic about the future of digital currencies and explains her firm is adding some of the old aspects of stock trading to the modernized cryptocurrency scene. One of the ideas is a ‘virtual trading pit’ modeled after the ‘pits’ stock traders used in the past to gather and trade shares and options. Most stock exchange pits have since been replaced by electronic trading services, and some of the largest trading floors have closed down.    

“Were actually bringing back the social pit nature of trading and we launched a beta version of what we call ‘The Pit’  and it really harkens back to the pit days,” Chou adds.

A lot of the great elements of the social trading pit, people exchanging market color, knowing who their counterparties are, but we’re doing it in more of a modern way that’s specifically designed with digital currency in its DNA.

What do you think about the million dollar options bet placed on the Ledger X exchange? Do you think the idea of virtual pits would be a good concept for digital currency traders? Let us know what you think in the comments below.


Images via Pixabay, Ledger X, and Yahoo Finance. 


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Weiss Ratings Defends its Decision to Give Bitcoin Only a C+ Grade

Weiss Ratings Defends its Decision to Give Bitcoin Only a C+ Grade

Wall Street is known for being a cut throat place where shrewd business people play as tough as possible in order to make gains or their destroy opponents. However, the crypto ecosystem can be at times far more nasty than any other market. One company that had the audacity to rate everyone’s favorite cryptocurrency somewhat poorly learned this recently, but it still stands by the rankings. 

Also Read: NFL Superstars Like to Talk About Bitcoin Just Like the Rest of Us

Crypto+

Weiss Ratings Defends its Decision to Give Bitcoin Only a C+ GradeWeiss Ratings, an independent U.S. rating agency which recently issued letter grades for cryptocurrencies has published a new report to explain its decision to score bitcoin a mere C+ (“fair”).

The company obviously felt it needed to counter attack against critics after its rankings caused it to get hurled insults from many cryptocurrency people and opinion leaders on social media. It even suffered a cyber attack which took down the Weiss site temporarily. The 14-page report is meant to answer the outcry by revealing key factors and data behind the rating.

Where is my A?

Weiss Ratings Defends its Decision to Give Bitcoin Only a C+ Grade“For investors,” explains Weiss Ratings founder Martin D. Weiss, PhD, “an A rated crypto would be one that rarely crashes, and right now, there’s no such thing. But we do understand where developers are coming from. They tell us they don’t care about market fluctuations. They feel our ratings should reflect strictly the quality of their work and its relative success in the real world.”

Aiming to address both investors and developers, the Weiss model combines a number of sub-models: Risk and Reward, adapted from its stock and ETF ratings, plus Fundamentals and Technology, which are unique to cryptocurrencies. Here’s how they determined bitcoin performs on each:

Risk and Reward-“Bitcoin investors have recently made less than altcoin investors, while continuing to experience the risk of extreme volatility.”

Fundamentals-“Due credit is given for adoption and security, but Bitcoin loses points on network congestion with just four transactions per second and high fees of about $10 per transaction. In addition, the top five miners control some 70% of total hashpower, also a negative.”

Technology-“Bitcoin lacks the governance needed for prompt upgrades and is falling behind in a rapidly evolving industry.”

Another criticism that was leveled at the agency is that Weiss overweights price volatility. “Not so,” he says. “Our model accurately reflects an inconvenient truth about the market’s extreme swings. But our ratings are continually updated. If prices stabilize or speed enhancements are rolled out successfully, an upgrade is possible.”

Should cryptocurrency investors even worry about what rankings? Tell us what you think in the comments section below.


Images courtesy of Shutterstock.


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Grayscale Plans to Launch a Cryptocurrency ‘Large Cap Fund’

Grayscale Plans to Launch a Cryptocurrency 'Large Cap Fund'

This Wednesday Grayscale Investments, the sponsor of the Bitcoin Trust (OTCQX: GBTC) has announced a new cryptocurrency investment vehicle is coming. The company plans to launch the ‘Grayscale Digital Large Cap Fund’ (the “Fund”) that intends to hold the top digital assets within the cryptocurrency economy.

Also Read: Phony PBOC Email Sent to U.S. Media Aimed to Manipulate BTC Price

Grayscale Launches a New Cryptocurrency Fund

Grayscale Plans to Launch a Cryptocurrency 'Large Cap Fund'The managers of the popular bitcoin investment fund GBTC and the ethereum trust, Grayscale, have decided to create a much larger investment product comprised of a basket of top-performing cryptocurrencies. According to Grayscale’s announcement, the basket will consist of litecoin (LTC) bitcoin cash (BCH) ripple (XRP) bitcoin core (BTC), and ethereum (ETH) for now.

“We’re excited to further expand the universe of Grayscale’s product offerings as interest in the digital currency asset class continues to grow,” said Barry Silbert, CEO, and founder of Grayscale Investments.

As a trusted and experienced manager, Grayscale is committed to creating investment structures that are familiar to qualified investors and provide secure access to this emerging asset class.

The Fund Targets 70% Coverage of the Digital Asset Market

Grayscale Plans to Launch a Cryptocurrency 'Large Cap Fund'
Grayscale’s Barry Silbert.

The sponsors first funds consisting of ETH and BTC have done phenomenally well following alongside the prices rises of spot markets. When Grayscale launched its first product back in 2013 at the time BTC was averaging $127 per coin and GBTC became one of the first mainstream investment vehicles tied to bitcoin reserves. In July of 2017, the firm initiated its ethereum trust which is framed in a similar fashion. For the new ‘Grayscale Digital Large Cap Fund’ the sponsor may also hold cash and assets that arise from forks and airdrops. Shares will reflect the platform Tradeblock’s Digital Asset Reference Rate at 4 pm EDT.

“Through a rules-based portfolio construction process, the Fund targets 70% coverage of the digital asset market — The Fund will be rebalanced on a quarterly basis to remove existing digital assets or include new digital assets in the Fund’s portfolio in accordance with certain criteria established by Grayscale,” explains the announcement.

One Year of Holding and Risk  

According to Grayscale the Fund is a Cayman Islands limited liability company but based in the United States. The product is also not registered with the U.S. Securities and Exchange Commission (SEC), and is not subject to American based securities laws.

Moreover, Grayscale details that the investment product is “highly speculative in nature,” and the Fund is subject to a one-year holding period. This means investors have to “bear the risks” for an entire year, but after the holding period assets can be “resold without restriction,” Grayscale concludes.

What do you think about Grayscale’s new ‘Digital Large Cap Fund?’ Let us know what you think in the comments below.


Images via Shutterstock, Twitter, and Grayscale. 


Do you like to research and read about Bitcoin technology? Check out Bitcoin.com’s Wiki page for an in-depth look at Bitcoin’s innovative technology and interesting history.

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