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Investment advisers are “very skeptical” about the first US Bitcoin ETFs: “It’s hard to recommend a crypto product with a poor RIA.”

Have a nice Sunday! Welcome to the penultimate article of Need to Know Crypto Edition ahead of the launch of the new weekly crypto newsletter “Distributed Ledger” starting next month.

I’m Mark DeCambre, Editor-in-Chief of the Market. This week we’re talking about the latest and greatest digital assets so far.There are many grounds to cover, especially as ProShares Bitcoin futures exchange traded funds may debut. Next week at the earliest, Mark digital asset milestones.

Crypt with snap

Nearly eight years after it was created, many applications were rejected in the process, but eventually Bitcoin-loosely anchored ETFs emerged, worried the average investor worried about storing digital assets. You will be able to access it without having to.

Submitted ProShares Amended application In a telephone interview, Todd Rosenbluth, Head of CFRA’s ETFs and Investment Trust Research, announced the Securities and Exchange Commission and Bitcoin Futures ETFs on Friday.

ETFs are not expected-US funds directly backed by Bitcoin like From the north neighbor But it’s what crypto bulls can wear hats, and many see it as a watershed moment of assets that didn’t exist until 2009.

We talked about the advantages and disadvantages of ETF futures here When here..

In any case, the enthusiasm for ETFs helped shake Bitcoin prices.
BTCUSD,

As of Friday afternoon, the world’s number one digital asset in market value was up 8.2% to $ 61,749, and that of a larger complex is skyrocketing. According to CoinDesk, this is close to the $ 64,888.99 record. (A colleague of Dow Jones Market Data has a $ 63,381.20 record entered on April 15 based on the value of 5 pm Eastern Standard Time)

ether
ETHUSD

Ethereum blockchain was up 2.6% to $ 3,876.92, a record high of $ 4,379.11, according to CoinDesk and Dogecoin, a memetic asset.
DOGEUSD

It was down 0.1% to 23.4 cents, well below the record high of 74 cents.

Will they come?

In response to news about ProShares futures ETFs and the prospect of a stable flow of similar fund products, we spoke with Ben Cruikshank, head of Flourish, an investment platform owned by insurance giant MassMutual. Registered Investment Advisor (RIA) oversees $ 1 trillion in assets

Flourish said he has a keen interest in cryptocurrencies, but if there are better options for owning cryptocurrencies such as Coinbase Global and other digital asset exchanges, advisors will bitcoin from a trustee’s perspective. We are reluctant to recommend Coinbase products to our clients.

“The feedback I’m getting is a derivative and an inefficient form of ownership,” Cruikshank told MarketWatch in a telephone interview.

The RIA asks, “Will the trustee recommend more complex and complex futures products than opening a Coinbase account in 5 minutes?”

“It’s hard to justify inferior futures products,” he said. “That’s not my feedback, it’s what the company is telling me.”

Cruikshank estimates that about 50 million Americans have already invested in cryptocurrencies, and RIA’s sense is that “investors prefer direct access whenever available.”

“People value convenience and it’s not without hiring, but the companies we’re talking about are very skeptical of futures ETFs,” said Cruikshank.

Engine
Biggest winner

price

% Weekly return

stack

$ 2.03

40.63

Perpetual protocol

$ 18.20

30.70

Telecoin

$ 0.02272

28.58

Polka dots

$ 41.91

23.43

Bitcoin BEP2

$$ 61,731.03

13.18%

Source: CoinMarketCap.com.Largest winner in the top 100 in terms of market value

Biggest loser

price

% Weekly return

Irweave

$ 52.64

-18.15

Terra

$ 37.44

-15.62

phantom

$ 1.96

-15.38

Internet computer

$ 43.32

-14.57

Shiba inu

$ 0.00002498

-13.20

Source: CoinMarketCap.com.The biggest loser in the top 100 by market value

Bitcoin in 2023 $ 100,000?

We briefly talked to Julian Timmer, Global Macro Director of Fidelity Investments in Boston, about the outlook for Bitcoin. His recent tweets suggest that Bitcoin is heading towards $ 100,000 by 2023, based on his fundamental analysis.

Timmer has converged on a combination of stock-to-flow models that represent network effects, the theory that value is based on increased use of goods and services, and how assets are valued based on supply and demand indicators. Said. Next two years or so.

“You get a lot of hyperbolic price targets … it’s not a price target,” Timmer said. “The only number I’m happy with is that the survey has some basis,” he told MarketWatch.

He said Bitcoin offers its own value proposition and some investors consider it digital gold. In fact, Mr. Timmer said Bitcoin may have gained some market share from gold and that Bitcoin allocations are likely to be part of what is allocated to precious metals. ..

Timmer states that Bitcoin can fit on the 40% side of the traditional 60:40.model“portfolio. 60% represents an allotment to equities and 40% represents a normal allotment to bonds.

“Cryptographic” bank

Analysts at Morgan Stanley, led by Ken Zerbe, have published a list of what are called “cryptographic banks.” Otherwise, it is a “traditional physical institution that provides crypto-related products or services.”

Morgan Stanley
MS

The list is almost exclusively made up of mid-sized financial institutions that far fall short of leading financial institutions such as their banks and rival JP Morgan Chase.
JPM

And Goldman Sachs Group
GS,

All of these provide varying degrees of encryption and blockchain services to individual and / or institutional investors.

However, Morgan Stanley states that the list reflects the institutions that were “most active in the crypto ecosystem.”

Morgan Stanley acknowledges that the list can be subjective and points out that he plans to change the composition of the list over time.

In the present circumstances, Signature bank
SBNY,
New York community
NYCB,
Customer Bancorp Inc..
CUBI,
Silver Gate Capital Co., Ltd.
SI,
National Bank Holdings Corporation..
NBHC,
Metropolitan Bank Holding Corporation.
MCB,
Triumph Van Corp.
TBK,
Blue Ridge Bankshares Inc.
BRBS,

When Provident Bank Corp.
PVBC..

Morgan Stanley writes that crypto banks far outperform some of their larger peers.

Many mid-cap codenames enjoy three-digit year-to-date returns, 53% above Bank of America, above YTD, 49% above Morgan Stanley, and 31% above JP Morgan Chase (attached). See the graph in). So far in 2021 shows some comparative returns).

Factset

Tether, Bitfinex fine

The Commodity Futures Trading Commission has resolved its claim with Tether Holdings for misleading clients about the quality of the reserves that support Tether, a stablecoin.
USDTUSD
MarketWatch’s Chris Matthews wrote: Regulators have also fined Bitfinex, a crypto exchange linked to Tether Holdings, for acting as a merchant on an unregistered Futures Commission.

CFTC Said in a press release Tether misrepresented Stablecoin when it claimed that its tokens were “100% backed” by fiat assets.

“Instead of holding reserves for all USDT tokens in US dollars, Tether relied on unregulated entities and certain third parties to hold the funds that make up the reserves. It is a mixture of Bitfinex’s operating and client funds. It holds reserves for non-flat financial products, “CFTC said.

Tether stablecoin of the same name is a popular asset in cryptocurrencies because its price is intended to be “stable” and fixed to statutory assets such as the US dollar. Tether is seen as a way for investors to stay in cryptocurrencies without the volatility associated with Bitcoin and Ethereum.

Tether’s CFTC settlement will take place approximately eight months after the New York Attorney General’s office completes a two-year investigation into Tether and Bitfinex.The office also concluded that the company made some public misrepresentations regarding the backing of Tether’s dollar reserves in 2017 and the situation in Bitfinex in 2018. Lost access to about $ 850 million Of the customer’s funds it put in an external company.

Mining USA

Earlier this week Washington post The United States reportedly overtook China to gain the largest share of the global Bitcoin mining network. data From Cambridge University.

The move comes after China cracked down on cryptocurrency mining and trading in the summer, causing a major outflow from Beijing.

University of Cambridge

Cryptographic sheriff?

Coinbase Global Inc.
coin
Proposed A comprehensive change to the US Code of Federal Regulations for digital assets, Congress is asked to establish a new institution to regulate the industry under a framework different from that used to oversee the traditional financial services industry. I’m looking for.

“There must be one federal regulator designated for the digital asset market,” Coinbase’s chief policy officer, Farial Shirzad, told reporters Thursday.

Cryptographic companies, funds

Cryptographic company news said Coinbase shares rose 7.93% to $ 280.61 on Friday, up 13.1% that week.

Michael Saylor’s MicroStrategy Inc.
MSTR

It rose 3.6% to $ 749.85, contributing a 5.8% advance each week. Mining company Riot Blockchain Inc.Stocks
Riot

Sessions rose 6.6% to $ 27.85, up 7.8% a week, Marathon Digital Holdings Inc. Stocks have risen.
Mara

It surged 12.2% to $ 48.89 to make a 23.8% profit each week.Another miner Ebang International Holdings Inc. ClA stake
EBON

This week it was up 7.7% to $ 1.97 and up 9.4%.

Overstock.com Inc.
OSTK

Square Inc. rose 1.6% to $ 77.67, but fell 0.8% for the week.
SQ

Tesla Inc, with a weekly profit of 4.4%, up 0.6% to $ 249.Stock price
TSLA

It rose 3% to $ 843.03 on Friday, helping Elon Musk-owned companies record a weekly rise of 7.3%.

PayPal Holdings Co., Ltd.
PYPL

Add 0.7% to $ 268.35, record a weekly profit of 3.2%, NVIDIA Corp.
NVDA

It rose 0.5% to $ 218.62, contributing a 5% rise each week. Advanced Micro Devices Inc.
AMD

It was up 0.1% to $ 112.12, earning 6.7% weekly.

In Fund Space, Bitwise Crypto Industry Innovator ETFs
BITQ,

It focuses on pure cryptocurrency companies, up 4.2% to $ 25.10 and up 4.6% this week. Amplify Transformational Data Sharing ETF with a focus on blockchain
block

It rose 3.6% to $ 50.86 a week, up 5.4%.Grayscale Bitcoin Trust
GBTC,

It tracked the Bitcoin market price, rising 5.6% to $ 47.41, booking a weekly 12% return.

New Fund, Invesco Lerian Galaxy Crypto Economy ETF
Sato

Invesco Alerian Galaxy Blockchain users and decentralized commerce ETFs up 5.3% weekly and 4.3% Friday
BLKC

Posted a weekly return of 4.4% after rising 3.3% to end the week.

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Investment advisers are “very skeptical” about the first US Bitcoin ETFs: “It’s hard to recommend a crypto product with a poor RIA.”

Source link Investment advisers are “very skeptical” about the first US Bitcoin ETFs: “It’s hard to recommend a crypto product with a poor RIA.”

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