Sunday, December 30, 2018
Saturday, December 29, 2018
Will Pension Funds Soon Be Investing in Crypto?
The latest rumor circulating in the investment industry is that pension funds are buying crypto. Is a multi-million dollar pension fund finally prepared to give investors exposure to cryptocurrencies? And if so, what will this mean for the burgeoning asset class?
Also Read: Morgan Creek Launches Digital Asset Index Fund for Institutional Investors
Typical Pension Fund Investment Strategy
The largest 300 pension funds collectively hold $6 trillion in assets. It is highly unlikely that a global pension and endowment fund has engaged in crypto investing in 2018. Why? Well one obvious reason is due to the funds being subject to heavier saver or investor protection regulations. Pension funds have large amounts of cash to invest and are the major investors in listed and private companies. Primary asset classes used for the investment of pension funds is equities, property, bonds and cash. Crypto is still too volatile and not regulated enough for the likes of a pension fund. That is all starting to change however.
Chuck Lauber, a portfolio manager at First National Fund Advisors, explained that pension funds in the U.S. are public entities, and as such “they’re mired in red tape which results in most of them being ‘late to the game’ in the realm of investment opportunity.”
Some pension funds are at the cutting edge of making smart investments in emerging assets classes, and crypto certainly falls into that category. “Most [pension funds] unfortunately, are not. Pro: ‘new’ asset class could help lower overall correlations. Con: lack of knowledge and reach for yield makes PFs the potential bag holders,” said Lauber.
Rumors Circulate of Pension Funds Buying Crypto
Pensions now buying cryptos
— zerohedge (@zerohedge) December 28, 2018
Zerohedge runs a markets-focused blog owned by ABC Media Ltd. It recently tweeted that pension funds are buying crypto, but was unable to back up this claim with a credible source.
Pensions Crisis?
It’s no secret that the performance and growth of pension funds is slowing down. Thanks to low interest rates, looming inflation, and slow growth, the future of retired populations could be at risk. The economics of retirement funding is at breaking point.
Anthony Pompliano, aka Pomp, is the founder of Morgan Creek Digital, an asset management firm backed by multi-billion dollar investment advisor Morgan Creek Capital Management. Pomp recently blogged on why he believes pension funds should buy Bitcoin.
“It will take time for pension funds to get comfortable with investing in bitcoin. We need to educate multiple stakeholders and demystify this nascent industry. When one makes the decision, it will create a cascading effect that leads to hundreds of them jumping in,” writes Pompliano.
Bitcoin Outperform Traditional Assets
According to Pompliano, the modern portfolio theory to support investing in bitcoin is strong. He states that BTC has been the best performing asset over the last 10 years.
“[Bitcoin] has experienced a 1,300,000x+ increase in value from $0.003 to ~$4,000 today. It has beat the S&P 500 for the last 10 years, the last five years, and the last two years. As a fixed supply asset, I believe bitcoin will continue to outperform traditional assets in the future as demand continues to increase too,” writes Pompliano.
If Pomp’s bullish thesis proves true, and Zerohedge’s assertion is correct, we may not have long to wait before the first major pension fund reveals it has acquired a cryptocurrency portfolio.
How likely is it that pension funds will turn to cryptocurrency investment in 2019? Share your thoughts in the comments section below.
Images courtesy of Shutterstock.
Need to calculate your bitcoin holdings? Check our tools section.
The post Will Pension Funds Soon Be Investing in Crypto? appeared first on Bitcoin News.
via Tanzeel Akhtar
1 in 7 Chinese Have Invested in Cryptocurrency
A survey conducted by Panews has found that 14% of Chinese citizens have invested in cryptocurrencies. The survey also found that 98% of respondents indicated familiarity with the concepts of cryptocurrency and bitcoin – 3% more than those who stated that they had heard of blockchain technology.
Also Read: Skeptical Payoneer CEO Dismisses Idea of Single Currency Like Bitcoin as Unrealistic
Survey Finds 14% of Chinese Citizens Have Invested in Cryptocurrencies
Panews has published the findings of a survey that queried 4,200 Chinese citizens on their familiarity and opinions regarding Bitcoin and cryptocurrencies.
The survey found that just 75 respondents had not heard of cryptocurrency or blockchain technology, equating to roughly 2% of the survey’s sample. The survey also found that 40% of respondents expressed a willingness to invest in cryptocurrencies in the future, despite nearly 83% of the sample describing cryptocurrency investment as a new trend.
14% of the sample, or 598 respondents, stated that they have invested in cryptocurrencies, nearly 70% of whom purchased their crypto via an exchange platform. 266 respondents came to possess their crypto through airdrops, followed by mining, with 263.
The sample indicated that social media is the dominant means through which Chinese citizens have become exposed to cryptocurrencies, with 38% of respondents claiming familiarity with crypto stating that they became exposed to such through social media, followed by “relatives and friends” with 26%.
Panews also noted that the majority of respondents associated cryptocurrencies with investment products primarily, and not as a medium of exchange.
Cryptocurrency Moving Towards Becoming Household Concept in China
While 4,125 respondents indicated familiarity with the concepts of cryptocurrency, Bitcoin, and blockchain technology, only 372 individuals described themselves as possessing a strong understanding of pertinent topics, amounting to roughly 9% of all respondents.
Only 17 respondents claimed not to have heard of cryptocurrency, while 103 stated that they were unfamiliar with Bitcoin. 60% of respondents described common perceptions regarding the complexity of exchanging and storing cryptocurrency as the primary barrier to greater crypto adoption.
Overall, the study found that bitcoin and cryptocurrency have made significant strides toward penetrating mainstream economic discourse in China, asserting that “the cryptocurrency industry has made considerable progress in the public’s cognitive level” since “the early days.”
How many years do you think it will be until 98% of the world’s population have heard of bitcoin and cryptocurrency? Share your thoughts in the comments section below!
Images courtesy of Shutterstock
At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.
The post 1 in 7 Chinese Have Invested in Cryptocurrency appeared first on Bitcoin News.
via Samuel Haig
Huobi and Major Russian Bank to Provide Legal Help to the Crypto Industry
The recently established Russian subsidiary of global cryptocurrency exchange Huobi and Vnesheconombank, Russia’s state-owned development bank, are now partnering to offer crypto companies legal support and advice. The newly created “legal lab” will also represent blockchain businesses in court.
Also read: German Startup Devises Eco-Friendly Energy-Efficient Miners
Legal Lab to Assist Crypto Companies in Russian Courts
Huobi, which is currently the third largest digital asset trading platform by daily volume, opened its office in Russia on Nov. 12. The branch provides 24-hour online support and has a Russian-language call center. The Huobi Russia online exchange officially launched on Dec. 6.
The Singapore-based company also revealed it’s planning to participate in a number of projects including an educational program focused on crypto and blockchain technologies, a startup incubator, and mining hotels. The government-controlled Vnesheconombank (VEB) is Huobi’s main partner in Russia. The exchange cooperates with VEB’s Center for Digital Transformations in more than one field – education and training, legislative initiatives and blockchain research.
The latest joint initiative led to the creation of the Huobi Legal Lab, a unit that employs experts who will be providing legal assistance and advice to companies realizing new projects in the nascent crypto industry, Huobi Russia announced in its Telegram channel. It will also support businesses working in other related sectors of the digital economy, helping them to comply with the current Russian laws, Forklog and Bitnovosti reported.
Another of its priorities will be to provide legal representation in Russian courts to entities that require such services. The lab’s experts will also develop and assess new legislation concerning the cryptocurrency and blockchain industry in order to create favorable conditions for market participants.
The two partners will receive support from the Moscow State Institute of International Relations (MGIMO). The chairperson of the parliamentary group assessing the risks associated with cryptocurrencies, Elina Sidorenko, will head the legal lab. Sidorenko, who is a professor at MGIMO, said the legal experts will make sure that digital assets do not violate the existing legislation and comply with international law. She also commented:
In a situation when the regulatory framework is developing more slowly than the digital industry itself, legal support is vital for the business.
Russian Cryptocurrency Industry Faces Challenges in Legal Vacuum
Crypto companies in Russia are finding it hard to comply with Russian law as it does not yet reflect the specifics of their activities. Unfortunately the adoption of the draft legislation that was expected to legalize them was postponed several times this year. In May, Russian lawmakers approved on first reading three drafts but none of them has passed second reading yet.
The final adoption of the main bill, the law “On Digital Financial Assets,” has recently been rescheduled for the spring session of the State Duma, the lower house of Russia’s parliament. What’s more, following a number of amendments to the original text, the legal document lost key terms related to the matter it is supposed to regulate. These include “cryptocurrency,” “token,” “mining,” and “smart contract.”
The legal lab created by Huobi and VEB is not the first attempt by the Russian society to deal with the challenges stemming from the legal vacuum in the digital space. Recently, the Russian Lawyers Association and an educational organization called Blockchain Lawyers agreed to create a specialized commission of legal experts that will review cases not covered by the current Russian regulations. Two months ago, a leading Russian industry organization announced the establishment of an arbitration body to look into disputes between participants in the digital economy, including the crypto sector.
What do you think about the joint initiative between Huobi and Vnesheconombank? Let us know in the comments section below.
Images courtesy of Shutterstock.
At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.
The post Huobi and Major Russian Bank to Provide Legal Help to the Crypto Industry appeared first on Bitcoin News.
via Lubomir Tassev
Italian Government Selects 30 Representatives to Develop DLT and Crypto Policy
Italy’s Ministry of Economic Development recently published a list of the 30 individuals that the Italian government has tasked with developing the country’s regulatory strategy with regards to distributed ledger technology (DLT) and cryptocurrencies. Among the individuals are alumni of the United Nations, the European Parliament, the European Commission, and the Italian Chamber of Commerce.
Also Read: German Startup Devises Eco-Friendly Energy-Efficient Miners
Italy Selects Group Tasked With Developing National DLT Strategy
The Italian government has named the 30 individuals it has sought to develop a national strategy pertaining to distributed ledger and related technologies.
The individuals include 10 members of the business community with relevant trade associations to DLT, 10 representatives of organizations, think-tanks and academia, and 10 representatives of trade unions and civil society, in addition to several representatives of the Ministry of Economic Development.
According to the ministry’s website, the group will be tasked with promoting DLT within the public sector, developing economic, political, and regulatory conditions suitable to fostering innovation in the DLT sector, and promoting the application of smart contracts.
The names include Angiolini Giorgio, current member of the United Nations Sustainable Development Group’s “UNINFO Blockchain and distributed management technologies” organization, Bruschi Francesco, “technical consultant for the Florence prosecutor’s office in the context of cryptocurrencies, Atzori Marcella, “Blockchain Expert” for the European Commission and the European Parliament, and Epifani Stefano, president of the Digital Transformation Institute and advisor for the United Nations.
DLT Policy Becomes “Fundamental Priority” for Italian Government
Italy’s Ministry of Economic Development announced its intention to assemble a group of DLT experts at the end of September. At the time, the ministry published a public notice for expressions of interest for “the development of the national strategy on technologies based on distributed registers and blockchain.”
The ministry then stated that it considers a deepening of Italy’s understating of distributed ledger technologies as a “fundamental priority,” in addition to increasing “public and private investments in this direction and technologies closely related to them.”
The other individuals named as part of the group are Belardi Tamara, Capaccioli Stefano, Chiriatti Massimo, Cirillo Monica, Comandini Gianluca, Conti Mauro, Damiani Ernesto, Di Nicola Vincenzo, Faini Fernanda, Gabriele Luigi, Giuliano Massimo, Giustozzi Lorenzo, Grottola Renato, Lecca Fabio, Lo Castro Aldo Peter, Mauri Giuseppe, Monaco Marco, Mosco Gian Domenico, Nastri Michele, Nava Gilberto, Pimpinella Martino Maurizio, Ricci Laura Emilia Maria, Sarzana Salvatore Fulvio, Savioli Massimo, Tenga Federico, and Vitale Marco.
On Dec. 4, Italy joined France, Spain, Malta, Cyprus, Portugal, and Spain in signing a joint declaration to promote blockchain technology in the southern European region.
What is your response to Italy’s assembly of a 30-person group of ‘experts’ to design DLT policy? Share your thoughts in the comments section below!
Images courtesy of Shutterstock
At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.
The post Italian Government Selects 30 Representatives to Develop DLT and Crypto Policy appeared first on Bitcoin News.
via Samuel Haig
Kraken Launches Margin Trading for BCH Pairings
Kraken has launched margin trading for Bitcoin Cash pairings, now supporting leveraged trading for BCH/XBT, BCH/USD, and BCH/EUR markets. The exchange has also launched margin trading for XRP, now offering up to 5x leverage on XRP pairings.
Also Read: Bitcoin Cash Mining Showcased at the Houston Rockets Game
Kraken Launches Leverage Trading for Bitcoin Cash and Ripple Markets
Kraken has become the latest cryptocurrency exchange to expand its Bitcoin Cash markets, introducing margin trading for three BCH pairings. Kraken users are now able to trade BCH/XBT using 2x margin, in addition to having access to BCH/USD and BCH/EUR markets with 2x or 3x leverage.
The exchange has also announced support for leveraged XRP trading, introducing 2x and 3x margin for XRP/XBT, and 2x, 3x, 4x, or 5x margin for its XRP/USD and XRP/EUR pairings. Despite the introduction of the new markets, BCH and XRP are not supported as collateral currencies on Kraken, meaning that traders will not be able to open leveraged positions against BCH or XRP balances.
The introduction of the margin trading for BCH and XRP brings the number of cryptocurrencies that Kraken supports leveraged trading for to eight, alongside XBT (BTC), ETH, ETC, REP, XMR, and USDT.
The exchange charges a 0.02 percent fee for the opening of a margin position, and further 0.02 percent rollover fees per every four hours that the position is open.
Recent Email From Kraken to Prominent Clients Claims $4 Billion Valuation
Earlier this month, Kraken reportedly issued an email to prominent clients informing them that the exchange is considering a private offering and to conduct a survey regarding opportunities to invest in the company.
The email seeks to emphasize that Kraken holds “significant reserves” and is not in need of financing, rather, insisting that the company is anticipating opportunities for acquisition. The email also reportedly states that the company is considering listing its shares with a valuation of $4 billion, with minimum investments expected to be set at $100,000.
“The transaction process will be done by a 3rd party service, who will run accredited investor checks, facilitate the execution of transaction documents, and the funding of your investment,” the email stated, adding that recipients would have until Dec. 16 to respond to the survey.
Do you like to trade using leverage? Share your favorite trading strategies in the comments section below!
Images courtesy of Shutterstock
The Bitcoin universe is vast. So is Bitcoin.com. Check our Wiki, where you can learn everything you were afraid to ask. Or read our news coverage to stay up to date on the latest. Or delve into statistics on our helpful tools page.
The post Kraken Launches Margin Trading for BCH Pairings appeared first on Bitcoin News.
via Samuel Haig