Nasdaq’s Bitcoin and Ethereum Indices Solve a Major Problem for Crypto

Nasdaq may have just removed one of the most significant barriers before a potential cryptocurrency adoption.
The US stock market exchange on Monday announced two cryptocurrency indexes which provide real-time spot or reference rate for Bitcoin and Ethereum. Dubbed as the Bitcoin Liquid Index (BLX) and Ethereum Liquid Index (ELX), both the indexes extract price data from multiple exchanges to provide onlookers single price point for BTC and ETH. Nasdaq assured that independent auditors had verified their methodology of obtaining and unifying price data to present the best USD-equivalent value of cryptos.
“The BLX,” the exchange said, “is one of the most widely-referenced BTC indices among crypto traders and has been calculated back to 2010.”
At the same time, the ELX price data dates back to 2014, the exchange added. The indices’ underlying algorithm, created by New Zealand-based blockchain research firm Brave New Coin, will refresh price information at a frequency of thirty seconds.
IOSCO Principles
Nasdaq said that their independent auditors had verified both BLX and ELX against the critical principles proposed by IOSCO. They are investors’ security, regulating markets to ensure fairness, efficiency, and transparency, and curbing systematic risks.

The Nasdaq is going to list #Bitcoin & #Ethereum indices!! The herd is coming. A #BTC & #ETH ETF will be next. @APompliano #crypto #blockchain #cryptocurrency #digitalasset
— Roland (@rolandstautz) February 14, 2019

In a broader perspective, the move could lead to solving regulators’ concerns about new-age bitcoin trading derivatives. For instance, the Securities and Exchange Commission (SEC) had consecutively rejected the applications of nine bitcoin exchange-traded funds fearing market manipulation. The regulator had stated that exchanges that acted as a bitcoin’s reference price point remained loosely regulated.
Reducing Market Manipulation Risks
Some ETF applicants processed the SEC’s concerns. They took initiatives to bring more transparent pricing systems for potential investors. VanEck, for instance, launched a bitcoin price index through its New York-based subsidiary, MV Index Solutions, in November 2018.
Fast forwarding to the present, it appears Nasdaq is also working on the same concerns. The stock market operator has been very active lately in the cryptocurrency and blockchain space. In January 2019, it led a $20-million Series B of blockchain startup Symbiont.
In November 2018, a Bloomberg report claimed that Nasdaq was planning to launch bitcoin futures contract in early 2019. Per the news agency, the exchange was working with the Commodity and Futures Trading Commission (CFTC) to solve some regulatory issues. At that time, Nasdaq had partnered with VanEck to use their bitcoin index solution, as mentioned earlier, for their futures contracts.
It is not clear whether or not BLX would play any crucial role in Nasdaq bitcoin futures offering. But it inevitably opens the exchange’s horizons to achieve more stable and transparent crypto pricing indexes.
Opportunity to Attract Big Investors
The launch of Nasdaq crypto indices could lead to regulatory approval for crypto-based derivatives in the market. In the near-term, the move could project cryptocurrencies as new investment alternatives to both retail and institutional investors. According to Ari Paul, the founder and CIO of crypto fund BlockTower Capital, the institutional investment is coming to the crypto space. But, nobody should expect it to arrive earlier.

9/ the level of interest and education continues rising, but slow progress on adding crypto to the platform (whether that’s a wealth management platform at a bank, or trading services at a big hedge fund.
— Ari Paul (@AriDavidPaul) February 1, 2019

“I’ve been too optimistic about the pace of institutional adoption in the past,” said Paul. “It’s coming, but I can’t estimate which quarter (whether that’s this year or 2022) that we’ll see a big spike. As a humble guess, something like Q3 2019.”
Both BLX and ELX will go live on Nasdaq on February 25.
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Source: New

What Makes Binance the Most Profitable Crypto Exchange in a Bear Market

Binance, the world’s leading cryptocurrency exchange by volume, is also doing great in terms of profitability, its chief financial officer told CNBC.
The statement follows one of the most extended bear phases in the cryptocurrency market, during which the industry lost almost one-third of its valuation. The depressive trend prompted many small and medium-size crypto companies to shut down their operations. At the same time, big firms like Bitmain and ShapeShift resorted to layoffs to compensate their losses.
But Binance walked in a different direction, according to CFO Wei Zhou, who claimed that they remain a profitable business even in a bear market.
Guessing the Profits
Binance CEO Changpeng “CZ” Zhao estimated that their 2018 earnings would be anywhere between $500 million to as high as $1 billion. CZ explained that they had earned $300 million in the first half of a bearish 2018, while their number of customers had increased to 10 million at the same time.
However, the company didn’t release any quarterly or annual reports to justify its projects. Media reports self-calculated Binance profits based on its token buyback and token burning event. As mentioned in its whitepaper, Binance would spend 20% of its total monthly benefits to buy back its native utility token BNB. Eventually, the exchange would push 100 million BNB out of circulation. Therefore, with simple maths, one only has to multiply BNB totals with its per token price on the day of the burn to get a rough USD-equivalent profit.
So far, Binance has conducted six quarterly BNB buybacks, in which it burned a total of 10,824,871 BNB tokens, which is close to $131.02 million. So, the total profits made by Binance between Q3-2017 and Q4 2018 should be approximately $655.14 million. Meanwhile, its most successful quarter is Q4 2017, when the crypto market was at its prime. During that time, the exchange posted $200 million in profits.
Source: The Block
Meanwhile, the same report shows that Binance fell just short of meeting its annual profit estimates. As calculated by the Block, the company generated $446 in total profits, $54 million lower than CZ’s minimum target. The gains continued dropping with each passing financial quarter, noting its most miserable period in Q4 2018, in which Binance earned close to $50 million. That is 75% less than what the exchange made during Q4 2017.
Why so Profitable
Launched in July 2017, Binance was already a famous name after it raised $15 million in an ICO funding round. By March 2018, the exchange surpassed competitors like Coinbase and BitFinex to become the world’s largest crypto exchange by trading volume. It remained at the top of the exchange board albeit the trading volume fell significantly during the 2018’s crypto meltdown.
It is evident that users love Binance, most notably for its ability to process up to 1.4 million orders in a second. More importantly, the exchange cuts back its BNB supply quarterly, which makes it an attractive asset for traders from profitability.

Thank you, Andrew!
— CZ Binance (@cz_binance) February 13, 2019

As a company, Binance has grown arms everywhere, be it the development and subsequent launch of their ICO-friendly Binance Launchpad platform, or their investments into blockchain tech startups.
The company has also expanded into new regions. In Bermuda and Malta, for instance, Binance signed a memorandum of understanding (MoU) with their governments and regulators.

Binance Coin hit an ATH against BTC and is up nearly 2x against USD since January. @cz_binance – DEX– Financially stable– Successful Binance Jersey launch– $400M+ profit in 2018– Coin burn ($9M in Q1 2019)
Seems like investors are confident.
— Joseph Young (@iamjosephyoung) February 11, 2019

The company also launched new divisions in Jersey and Uganda to gain influence in European and African markets. In August 2018, Binance raised $32 million for a stable coin project. And the very latest, the exchange partnered with Israel-based payment processor Simplex to simplify cryptocurrency purchases via traditional banking methods.
The post What Makes Binance the Most Profitable Crypto Exchange in a Bear Market appeared first on NewsBTC.
Source: New

Controversial Crypto Exchange QuadrigaCX Linked in Binary Options Scam

Independent researchers have identified financial links between crypto exchange QuadrigaCX and a shady company.
The accusation surfaced after Spoofy McSpoofface, a Twitterati, found that the Canadian exchange had asked its customers to deposit money into a bank account owned by Hong Kong-based Valoris HK Ltd. The profile shared the screenshot of a Reddit thread from 2018 to validate its claims.

Like other forex and binary options scammers, Quadriga directed some of its customers to deposit money into "Valoris HK Ltd.," at Bank Pekao in Warsaw, Poland. #cryptocapital
— Spoofy McSpoofface (@ExkrementKoin) February 11, 2019

In the thread, an unverified QuadrigaCX user claimed that the exchange was asking him via email to wire his deposits to Volaris’ bank account. In its response, QuadrigaCX confirmed that Crypto Capital, their international payments company, had sent the concerned email. It had explained:
“For wire transfers, we use the international payments company, Crypto Capital. These instructions are for our account with them. Unfortunately, banks in Canada will not permit Bitcoin companies to have bank accounts at their institutions.”
Valoris Connected to Binary Options Scammers?
The case, as mentioned above, confirmed that QuadrigaCX was using an offshore company called Valoris HK Ltd. for receiving customers’ deposits. QuadrigaCX admitted having a business relationship with the Hong Kong firm. Except, a separate report indicated that the company was also accepting deposits for forex and binary options scammers.
Spoofy McSpoofface posted a screenshot of an article published December 11, 2017, on Times of Israel, reporting that how a Canadian investor lost his life savings in an options scam. The victim stated that he had deposited $134,000 to the bank account of the same Valoris HK Ltd. Excerpts from the article:
“Curiously, an online search for this bank account reveals that it, or an account by the same name at Bank Pekao, is still actively receiving funds. The same account has been used to accept payments for TD Markets – a Binary Options and forex trading site – as well as QuadrigaCX, a bitcoin exchange that claims to be based in Vancouver, Canada.”
QuadrigaCX did not publish an independent financial audit since September 2015. Therefore, the exact sum of money transferred to or withdrew from the Valoris HK account could not be verified at press level.
$190 Million in Crypto Disappeared following QuadrigaCX Founder’s Death
By 2015, the only executive QaudrigaCX was left with was co-founder Gerald Cotten. He passed away in January 2019, allegedly taking the passwords of QuadrigaCX’s $190 million worth of crypto-reserves to his grave. The exchange later admitted that that loss of reserves had made them insolvent. Meanwhile, it filed for creditor protection at the Supreme Court of Nova Scotia. The court granted them 30-day protection.
Cotten’s death raised concerns, with many accusing the founder of faking it. Independent researchers later found that QuadrigaCX never had any crypto reserves and that the exchange was merely pitting traders against each other for executing their deposits’ and withdrawals’ requests.

1/ After a couple of days of combing through wallet explorers, examining TX IDs, addresses, and coin movements, I present to you all an analysis of QuadrigaCX's Bitcoin Holdings:
— CryptoMedication (@ProofofResearch) February 3, 2019

The Ontario Securities Commission had declared that it would look into QuadrigaCX for potential regulatory anomalies. However, whether or not there would be a federal investigation into the $190-million scandal is unclear at this point.
NewsBTC is attempting to reach Valoris HK for press statements. Kindly return to this space for more updates.
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Source: New

One Trader Thinks Recent 10% Rally of Bitcoin Could Lead to Something Much Greater: a Full-Fledged Recovery

The Bitcoin price today chartered into positive territory after weeks of bearish action near $3,400. It rose close to 10% while clearing through a stubborn resistance area of $3,480-3,500.
A sudden spike is as incredible as it is scary. There are questions about its origins. Is it natural for an asset to wake from a bearish slumber and rise 10%? Now if that has happened, how severe would the next bearish correction be? And most importantly, how far BTC can extend its gains as it trends higher in its overbought territory?
A celebrated cryptocurrency analyst attempted to answer with his latest theory.
Adam-and-Eve Meets Bitcoin
GalaxyBTC, a Twitter-based cryptocurrency analyst with close to 47.8k followers, pitted the current bitcoin price action against a widely-used technical indicator called Adam-and-Eve. The page found that that BTC was following the technical indicator pattern almost too correctly, which means the price could go even higher from where it is right now.
Adam and Eve pattern in Bitcoin Charts | Source: GalaxyBTC Twitter Account
Adam-and-Eve, technically, is a double-bottom scenario, in which the price first forms a narrow, pointed V-shaped bottom called Adam. After that, the price corrects higher, falls again to retest the said Adam’s valley bottom. But this time, the new bottom formation is more rounded and broader, which is called Eve. The chart shared by GalaxyBTC shows that the bitcoin price is forming the same Adam-and-Eve price formation. It would be confirmed once the price closes above the peak between two valleys.

What if. $BTC
— Galaxy (@galaxybtc) February 8, 2019

Per GalaxyBTC, the Adam valley’s high lies somewhere near $4,390. If BTC confirms a breakout action above the said level, then the price could be aiming at a full-fledged recovery towards – to begin with – $6,000.
Could Bitcoin Reclaim $6,000?
Reclaiming a level that had held bears for far too long in 2018 would signal a robust long-term sentiment for Bitcoin. Adam-and-Even somewhat predicts something that every bitcoin enthusiast wants to be true. However, speaking realistically, the digital currency has enough barries to break before it even thinks about a “full-fledged recovery.”
According to Eric Theis, the current uptrend is a part of “deja-vu” descending channel formations over the recent months. In English, what he means is that bitcoin could fall even lower.

Rinse, Repeat. Rinse, Repeat.
Deja Vu
— Eric Thies (@KingThies) February 7, 2019

The chart above indicates that bitcoin is inside a falling wedge pattern. It means the asset would undergo a breakout action in the near-term, only to consolidate sideways after that. Then, it would fall again while repeating the earlier price actions.
Meanwhile, the bitcoin market appears more bullish when it comes to fundamentals. Not to mention that the latest rally developed right after Robert J. Jackson Jr., a commissioner at the Securities and Exchange Commission, said that they would approve a bitcoin exchange-traded fund in the future.
According to Gabor Gurbacs, the director of digital assets strategy at VanEck, a regulated Bitcoin ETF would attract at least a billion dollars to the digital currency space. At the same time, the launch of Bakkt, an ICE-backed bitcoin futures platform, could attract more institutional investors to space.
$6,000 looks like an easy target to achieve, therefore.
But then, who knows.
The post One Trader Thinks Recent 10% Rally of Bitcoin Could Lead to Something Much Greater: a Full-Fledged Recovery appeared first on NewsBTC.
Source: New

CEO Who Held $150M in Crypto Died in a Region Known for Having a Fake Death Mafia

Elizabeth Greenwood was traveling the Philippines back in 2013 while her rental car crashed into another vehicle in Manila. According to many spectators, the American traveler had suffered grave injuries. The doctors at the local hospital declared her dead. The local Manila authority issued her death certificate.
The story later served as a backbone to the book ‘Playing Dead: A Journey Through the World of Death Fraud,’ written by the same person who was pronounced dead, the Elizabeth Greenwood. In reality, the author was investigating the Philippines fake death mafia. In an interview to the Telegraph, she admitted that the idea arrived in her when she was fancying how it would be to circumvent her massive student debt.
Greenwood’s research found that people wanting to run away from debts or personal responsibilities have gone to the lengths of faking their deaths. There is a whole industry ready with their “death kits,” in which people can hire doctors, administrators, and witnesses for as little as $100. Philippines and India are among the most sought-after countries to get a ‘fake real death certificate’ easily.
So when the head of a crypto exchange decided to take a philanthropic trip to one of these countries and later died under mysterious circumstances with the keys of millions of dollars worth of crypto, people are finding it difficult to digest the story. QuadrigaCX, the exchange, is facing accusations of lying about their CEO Gerald Cotton’s death to orchestrate what people believe is an exit scam from Day One.
Fake Death Certificate Mafia in India
Investigative journalists in India uncovered many cases where people attempted to dupe families, loan sharks, and insurance companies. Times of India, one of the leading newspapers in the country, revealed a gang in Mumbai was issuing all kinds of fake certificates, be it death, marriage, birth – anything. In another incident that mocked the Indian authorities, some miscreants issued death certificates of politicians using a government website.

Indian authorities have taken an active stand to mitigate such issues. In some cases, municipals have outsourced the job of issuing death certificates online to local IT giants. However, the services haven’t reached to a majority of Indian municipals.
Jaipur, the city in which Cotton died, is a small town compared to metropolitans like New Delhi and Mumbai. One can receive a death certificate only by submitting an application form, challan receipt, and Aadhar Card. In the case of Cotton, his family must have submitted his passport documents instead of an Aadhaar Card.
Atop that, Indian medical industry is also facing allegations of corruption on various accounts. A forensic lab doctor in Goa, for instance, was running a private clinic that released fake birth and death documents.

Community Reaction over Quadriga CEO Death
The crypto community believes that the whole episode is turning into a fiasco. There is no news coverage about Cotten’s death in India despite the involvement of $190 million. Redditor TOYAKE wrote:
“Cotton is having financial troubles at his company, so he travels to India to work on an orphanage? While suffering from Crohn’s he decided to go to India? Gets married and sets up a will within a month of his “death.” Manages to set up a plan ($100k) for his two dogs so that they’re taken care of. Doesn’t think to make sure the nearly $200m his exchange watches is also taken care of.”
Jesse Powell, the CEO of Kraken exchange, also wrote:
“We have thousands of wallet addresses known to belong to QuadrigaCoinEx and are investigating the bizarre and, frankly, unbelievable story of the founder’s death and lost keys.”
QuadrigaCX meanwhile has reached court for bankruptcy protection. The Canadian exchange confirmed that it was working on resolving the liquidity issues against the mounting crypto withdrawal requests.
“For the past weeks, we have worked extensively to address our liquidity issues, which include attempting to locate and secure our very significant cryptocurrency reserves held in cold wallets,” read QuadrigaCX’s homepage.
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Source: New

One of the World’s Wealthiest Royals Invests in Liechtenstein-based Crypto Fund

Saeed Group, a Dubai firm led by a royal family member and Emirates Group Chairman Sheikh Ahmed bin Saeed Al Maktoum, is backing a Liechtenstein-based crypto fund.
Dubbed as Invao, the fund invests in blockchain and cryptocurrency startups. Saeed Group said in a press release that its parent company, The Private Office of Sheikh Saeed bin Ahmed Al Maktoum, would assist Invao to attract more investors in the UAE region. In return, Gulf investors would be able to explore opportunities in emerging blockchain and cryptocurrency markets through Invao.
“We have selected INVAO as our international partner for blockchain investments as we believe that it will increase the transformation drive for the digital asset landscape in the UAE while offering an enhanced standard and improved market access for investors in the region,” explained Hisham Al Gurg, CEO of SEED Group.
Driving Investments to Crypto Industry
Invao CEO Frank Wagner revealed that their joint venture was eyeing to play a key role in the Emirates Blockchain Strategy 2021. The UAE government-led initiative, which was launched in April 2018, aims to put half of the government transactions on a state-backed blockchain network. The government believes that it would save them at least $3 billion every year.
“INVAO and The Private Office of Sheikh Saeed bin Ahmed Al Maktoum share the common goal of seeing the UAE becoming a leader in the global blockchain ecosystem,” said Wagner. “We are excited to invest more in the region through the opening of our office in Dubai, and we are committed to bringing with us new investment options for institutional and retail investors alike.”
However, not all is going well inside the crypto market as it heads into a 13-month long bear cycle. Bitcoin and rest of the market combinedly lost at least one-third of its value in 2018. According to analysts, the market expects to continue trending inside a negative territory in the near-term scenario.

Clear dead cat.
— 𝓡𝓪𝓶𝓹𝓪𝓰𝓮 (@Thrillmex) February 4, 2019

The depressive market action did not deter Invao. Wager, in a statement to Bloomberg, said that Invao fund had invested over $1 million in blockchain startups amidst a bearish 2018. According to him, the fund was able to generate impressive profits despite an adverse trend scenario across the cryptocurrency space.
“Even in our worst month we still made 8 percent profit on our investments,” Wagner told Bloomberg.
First Valid Case of Institutional Investment in 2019
The joint venture between Saeed Group and Invao validates what bulls believe would be an institutionally-rich year for cryptocurrencies.

#Blockchain terminology can be confusing, but you can still invest in blockchain even if you don't have much experience! #INVAO is the perfect platform for people who lack the experience!#crypto #investment #Blockchainassetpool #AI #cryptotrading #cryptocurrency #trading
— INVAO (official) (@INVAO1) February 5, 2019

The partnership expects to attract investors that kept their distance from cryptocurrencies mainly due to the assets’ sheer complexity. With Dubai as a backer, Invao as a startup has jumped in status-quo and is likely to appear more trustworthy to potential Gulf investors, especially the unsophisticated ones.
That does not mean that the crypto fund would always be profitable, but it certainly has taken a step that could bring Bitcoin to the forefront of many mainstream financial markets.
The post One of the World’s Wealthiest Royals Invests in Liechtenstein-based Crypto Fund appeared first on NewsBTC.
Source: New

QuadrigaCX Reportedly Didn’t Lose Access to Bitcoin Funds – is it More Than a Mistake?

QuadrigaCX, a Canadian cryptocurrency exchange, is in serious trouble – its customers cannot access $150 million worth of crypto funds after the owner and CEO, Gerald Cotton, died of Crohn disease in Jaipur, India. He was the only individual who had access to the”cold wallet reserves.”
The exchange reached out to Nova Scotia Supreme Court while seeking creditors’ protection.
However, many analysts now believe that QuadrigaCX could be nothing but a well-orchestrated exit scam. The shift in opinion comes after independent investigators claimed that the exchange was deceptive about having bitcoin cold wallets at the first place.
Research: QuadrigaCX Pitted Traders against Each Other
Researchers at Zerononcense identified bitcoin wallets allegedly associated with QuadrigaCX after collecting pieces of evidence from the exchange’s former customers. Researchers were able to trail bitcoin trades – from verified customers’ accounts to those owned by QuadrigaCX. In the report, Zerononcense listed 31 of these bitcoin wallet addresses.

The publishing site @Medium has removed @ProofofResearch's important work on Quadrigacx without explanation. It's now on his own blog, which is censorship-resistant. Please circulate. cc @davidgerard
— (((Frances Coppola))) (@Frances_Coppola) February 5, 2019

Furthermore, the researchers found that QuadrigaCX used highly deterministic wallets to manage client funds. These wallets would enable the exchange to generate millions of unique bitcoin wallet addresses from a single, original clustered wallet address. Zerononcense claimed that it had recognized one of such grouped addresses with the help of, a service which is supposedly good at “address clustering.”
The researchers further verified that each of the 31 addresses as mentioned above had deposited funds into the clustered address at some point in time. The overall customer deposit information revealed that “none of the withdrawal addresses provided by customers led to a wallet that could be considered anything comparable to a ‘reserve’ wallet.”
Zerononcense provided some sample withdrawal transaction ids that interlinked customers’ wallet addresses. The researchers found cluster wallets that were granting the customers’ withdrawal requests were waiting from deposits from other customers’ wallets. In some cases, the Quadriga cluster wallets had received funds from the portfolios of other crypto exchanges.
Therefore, it is likely that Quadriga was pitting traders’ positions against each other to fulfill deposit/withdrawal requests.
“QuadrigaCX did not have a designated hot or cold wallet to send the customer their funds,” wrote Zerononcense. “In specific, they were forced to aggregate funds from disparate, disorganized locations in order to ensure that the withdrawal was successful.”
Ethereum Cold Wallets Missing Too
Separate research shared by My Crypto CEO and Founder Taylor Monahan revealed a similar case for Ethereum. She shared QuadrigaCX’s three ether wallet addresses. Two of these wallets made huge withdrawals to addresses associated with other top exchanges such as BitFinex, ShapeShift, and Poloneix. Between 2015 and 2017, Quadriga had made withdrawal worth approx $22 million, adjusted according to ETH/USD rate change.

tl;dr: I'm seeing NO indication of Quadriga ever having cold / reserve wallets for ETH.
— Taylor Monahan (@tayvano_) February 5, 2019

“Oh, and just in case you weren’t shaking your head enough, don’t forget that Quadriga ran an exchange with KYC,” added Monahan. “They have a pile of user’s KYC data. They could turn around and open an exchange account with any of that KYC data to move money.”
Whether it is more than an unfortunate mistake of the exchange to grant the CEO full control over user funds or not can only be confirmed after an official investigation is confirmed.
Until then, no details of the investigation can be definitively proven.
The post QuadrigaCX Reportedly Didn’t Lose Access to Bitcoin Funds – is it More Than a Mistake? appeared first on NewsBTC.
Source: New

Kraken Completes Biggest Crypto Deal in 2019: Massive $100M Acquisition That May Boost Europe

Major crypto exchange Kraken has acquired digital assets derivative startup Crypto Facilities for at least $100 million – the cryptocurrency sector’s biggest deal in 2019.
The San Francisco company announced Monday that the “nine-figure” acquisition would enable its customers to trade crypto-related futures and spots. In retrospect, Kraken would now be able to offer futures trading involving Bitcoin, Bitcoin Cash, XRP, Litecoi, and Ether trading pairs – all by integrating Crypto Facilities’ features.
Chicago Mercantile Exchange Center is an office complex of two towers in Chicago, Illinois. “The Merc” is also known by its address, 30 South Wacker.
Founded in 2014, Crypto Facilities is the UK’s first crypto futures service that is registered with the Financial Conduct Authority. Atop that, the London startup also calculates the CME CF Bitcoin Reference Rate, a regulated index that powers the CME Group’s Bitcoin future. The startup confirmed that both it and Kraken had also received approval from the UK regulator to go ahead with the acquisition.
Kraken Eyes European Expansion
Kraken CEO Jesse Powell said in a press statement that their take over of the UK startup would boost their presence throughout Europe, a market now flooded with both unlicensed and licensed crypto services. Nevertheless, Powell stressed the need to bring “eligible clients” to the cryptocurrency industry through “industry-leading futures and index products.”
The announcement follows months of speculations about mainstream investors waiting to enter the crypto market for real. Though the focus has remained mainly on the US investors, the developing crypto regulatory framework in Europe has also attracted a great deal of interest from the local monies.

BREAKING: @krakenfx just announced the acquisition of London-based Crypto Facilities in a deal worth over $100 million.
— Pomp (@APompliano) February 4, 2019

Powell looked at these developments as an opportunity for investors to break-free from their traditional 9-to-5 weekday trading, stating “providing a highly efficient way to trade and hedge cryptocurrency in any market environment” would reduce gap risks that used to arise after market close at night and weekends.
“Over the coming months, our teams will continue to enhance and expand these offerings,” Powell said. “We’ve got great stuff in store for traders and institutional clients in 2019.”
No Management Shift
Kraken also hinted that it would provide Crypto Facilities would work as an independent entity as a part of a broader Kraken Group. It would mean that Crypto Facilities will be able to retain their team members, particularly its CEO and founder Timo Schlaefer, who will remain the CEO following the acquisition.

Awesome team, awesome product. Super stoked to have @CryptoFLtd join the @krakenfx family.
— Jesse Powell (@jespow) February 4, 2019

“It has been our mission to build the most sophisticated, powerful and user-friendly cryptocurrency trading platform,” Schlaefer said in his press statement. “Teaming up with Kraken allows us to innovate the next generation of products and tremendously boosts the value we are able to provide to our clients.”
Before Crypto Facilities, Kraken had acquired major Bitcoin exchanges such as Coinsetter, Cavirtex, and CleverCoin. The company also has taken over Glidera, an award-winning wallet funding service; and the popular charting, trading, and portfolio tracking platform Cryptowatch.
The post Kraken Completes Biggest Crypto Deal in 2019: Massive $100M Acquisition That May Boost Europe appeared first on NewsBTC.
Source: New

Banks are Better than Bitcoin (When It Comes to Money Laundering)

On September 28, 2018, the Wall Street Journal published a report which claimed that criminals laundered nearly $90 million of proceeds via cryptocurrency exchanges over two years. The piece mainly targeted ShapeShift, a US-based crypto-to-crypto exchange, for facilitating trades without identifying the traders.
In his response, ShapeShift CEO Erik Voorhees provided convincing examples of how the Journal misconceived everyday transactions as dubious. He also accused the US publication of “omitting relevant information” and of cooperating with ShapeShift team “under pretenses.”
While Voorhees understandably defended his firm with facts, no one can deny that criminals use cryptocurrencies like Bitcoin to launder money. For instance, darknet Silk Road was Bitcoin’s first credible use case. In another example, a youth illegally traded $750,000 via his bitcoin exchange service. In another one, a drug trafficking ring in Europe laundered $9.1 million through a Finland-based crypto trading company.
However, banks proved that bitcoin-based criminal activities were peanuts in front of their massively scaled and inhumane financial crimes.
Contrasting Financial Crimes
On September 19, 2018, Denmark’s largest bank, Danske Bank, confirmed that its Estonian branch had illegally funneled $230 billion from Russia to Europe. That was 25,000 times more than what ShapeShift allegedly laundered. In fact, that was more significant than the combined market capitalization of cryptocurrencies at that time.
Furthermore, there was a shocking revelation connecting a Danske’s financial crime with the death of a Russian lawyer named Sergei Magnitsky. As highlighted by Forbes journalist Frances Coppola, Danske was instrumental in hiding money embezzled by the Putin-led Russian government. That money also included $230 million tax revenue collected from Hermitage Capital Management.
But pot called the kettle back as the Russian government accused Hermitage of tax evasion. CEO Bill Browder attempted to fight the charges with the help of Magnitsky. After coming closer to winning the court case, Magnitsky was thrown into the jail by Putin over some cooked-up charges. According to unconfirmed reports, the lawyer died inside the prison under shady circumstances.
Meanwhile, Danske Bank had reportedly earned an attractive commission by helping the Russian government, found Forbes.
“Hopefully, those investigating Danske Bank’s involvement in international money laundering will see through this attempt at a whitewash,” Coppola wrote. “The memory of Sergei Magnitsky demands that all those responsible for the fraud that cost him his life are brought to justice. Including those who willfully turned a blind eye.”
In comparison, ShapeShift was allegedly facilitating crypto transfers for ICO fund scammers and North Korean hackers.
Banks Launder up to $2 Trillion a Year
Bloomberg recently created an interactive infographic highlighting the most substantial financial scams in the past decade. Atop Danske Bank, the list mentioned JP Morgan Chase, City Group, ING, HSBC, Commerzbank, Deutsche Bank, Danske Bank, Standard Chartered, Commonwealth Bank of Australia, 1MDB and others. The list had nothing related to cryptocurrencies.

Money laundering transactions are still as high as $2 trillion a year
— Bloomberg (@business) February 3, 2019

Bloomberg added that banks were laundering up to $2 trillion every year. The statement came as a reminder to United Nations’ estimates that dirty money transfers via conventional banking were between $800 billion to $2 trillion. Another report from Europol (download link here) had found that most money laundering was taking place via cash not cryptocurrencies like Bitcoin.
According to the EU agency, money does not leave a trail behind like bitcoin. It makes the digital currency less attractive to money launderers even though they keep experimenting with privacy-centric alternatives like Monero.
Law enforcement agencies over the years have effectively caught bitcoin criminals. In June 2018, the Spanish Guardia Civil and the Austrian Federal Police recovered $5 million worth of Bitcoins, IOTA and Lumens tokens from online drug peddlers. Blockchain forensic company like Blockchain Intelligence Group and Chainalysis aided agencies in cracking down crypto tax defaulters and money launderers. Moreover, Chainaylsis claimed that it had crucial information about 50% of the total Bitcoin transactions.
In contrast, agencies were less successful in cracking down significant monies, with UN saying that only 1% of criminal wealth was seized/frozen by 2011.
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What’s Holding Institutions From Investing in Bitcoin? Nasdaq Answers

In September 2017, Bank of America Merrill Lynch had asked 200 institutional investors what they believed was the most popular investment. A majority of them responded with “Long Bitcoin.” That does not mean that participants were actively investing in the digital currency. But it allowed a nascent market to realize its potential in Wall Street.
A price boom and its subsequent crash later, the Bitcoin market is still waiting for the same thing: institutional investment. As it does, it has also experienced a glimmer of hope in various instances.
Established financial institutions have started laying down the first foundation of mainstream bitcoin market. There is Fidelity, one of the world’s largest asset manager, that will launch its cryptocurrency custody and trading services in Q1 2019. There is Intercontinental Exchange which is close to starting the first physical bitcoin futures exchange dubbed as Bakkt. Meanwhile, the endowments of prestigious American universities (Harvard, MIT) feature crypto funds. The accomplishments go on.
But Where is that Bitcoin Price Surge?
Despite the strong fundamentals, the bitcoin market reflects tiny bullish sentiment these days. Following a crash action during November 2018, the Bitcoin-Dollar exchange rate had broken below $6,000-support, which many believe was the entry level for institutional investors. However, the BTC/USD rate is now struggling to float above $3,000. No institutional investor is anchoring market whales. In short, the bitcoin hype is cracking.
One of the most significant issues preventing bitcoin’s penetration into the mainstream is the lack of sophisticated infrastructure. According to P.A.ID Strategies, 68% of bitcoin exchanges across the US, and Europe is not KYC compliant. Many of these exchanges cannot process larger transactions due to liquidity issues. For an institutional investor, the retail platforms are not enough.
“Cryptocurrency wallets and exchanges want to enjoy the same trust as the wider traditional financial services, but for this to happen they need to rise above the sometimes-dubious reputation of cryptocurrencies’ past and be seen as ‘model citizens’ of the economy,” said John Devlin, chief analyst at P.A.ID.
That leaves cryptocurrency exchanges to do the hard work to avoid their inherent ills of poor custodianship and market manipulation.
Time to Get “SMART”
Tony Sio, head of regulatory surveillance and marketplace at Nasdaq, revealed that bitcoin exchanges were showing more initiatives to improve their services.
Sio told Business Insider that a lot of them reached Nasdaq for its SMARTS Trade Surveillance platform. Exchanges in traditional markets, as well as broker-dealers and regulators, use the platform to supervise trading and flag possible acts of manipulation.
However, Nasdaq also puts potential SMARTS customers through a screening process. Sio revealed that many a time they found crypto startups with weaker KYC/AML procedures.
“If you are a startup, it is quite hard to set up because it requires a fair bit of work to set it up fully in place,” said Sio. “That is probably one of the sticking points.”
Meanwhile, some of its crypto clients gained approval to install some Nasdaq technology, whether it be surveillance, clearing or trade matching engines. It proves that exchanges are putting efforts to match up to the sophisticated standards of traditional trading platforms. As soon as they can offer that, institutional investors could find these crypto platforms more trustworthy and attractive.
The odds appear to be in favor of Bitcoin in the long-term. After all, a majority of institutional investors did choose “Long Bitcoin” as their favorite option. All they need is a more secure gateway.
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Fed Chair Concerned About $22 Trillion US Debt, is Bitcoin a Viable Alternative?

The US national debt now stands at $21.974 trillion, a 10% increase since President Donald Trump took over the oval office. And Bitcoin may be the needle people need to pop the debt bubble.

Fed Chair Jerome Powell, talking about the $22 trillion US debt:
"I'm very worried about it, but from the Fed's standpoint . . . the long-run fiscal non-sustainability of the US federal government isn't really something that plays into . . . our policy decisions."
Buy bitcoin.
— Jake Chervinsky (@jchervinsky) February 1, 2019

“From the Fed’s standpoint, we’re looking at a business cycle length: that’s our frame of reference,” Powell said. “The long-run fiscal, non-sustainability of the U.S. federal government isn’t [really] something that plays into the medium term that is relevant for our policy decisions.”
Understanding the Debt Bubble
In retrospective, the national debt is a way of measuring what the US government owes to its creditors. Since the government always spends more than what it takes, the said debt continues to rise. For instance, under the Obama administration, the national debt had increased from $10 to $20 trillion – a spotless 100 percent.
In the past 60 years, the US government has struggled to balance the budget – by spending and earning at an equal level. Every passing administration left a higher debt burden for the next, starting with President Ronald Reagan via President Clinton to President Obama. The US never came out of the so-called debt bubble.
But it doesn’t necessarily mean that they cannot. After all, the US is sitting atop a dollar printing press.
Ideally, Uncle Sam can print its own money, unlike other nations. The size of their debts – arguably – does not matter because the government can pay its debt any day it wants. They would not have to impact the standard of living. According to the Bretton-Woods agreement, the World Bank and the IMF made US Dollar as the world’s only global reserve currency. That led governments across the globe to stash the greenback in their central banks. It created demand, and the US Federal Reserve limited supply.
As of now, there are approximately 1.2 trillion US Dollars in circulation. That is not enough to settle day-to-day global trades: to purchase oil, gas, coffee, corns, and even iPhones. Countries, on the other hand, are sitting atop larger dollar reserves. China, for instance, has $4 trillion; Japan has over $1 trillion – and so on.
Why Bitcoin?
The only thing that changed between then and now is the internet. The millennials now have information about the debt bubble. They understand how every dollar in their pocket is indebted. They also realize that their own national currency is indebted to an-already indebted US Dollar.
Bitcoin enthusiasts project the digital currency as a solution to beat down the dollar hegemony. It expects millennials to exchange their national fiats for a technology that is independent of the US debts, government policies, Federal rate hikes, and whatnot.
Vinny Lingham, the founder of Civic, said that bitcoin’s intrinsic attractiveness against the debt bubble would attract more wealth.
“More wealth will be created in crypto over the next 10 years, than over the prior 10 years,” said Lingham. But remember, like any success story, it’s not going to be a straight line up. Keep believing and just be patient.”
Erik Voorhees, the founder of Shapeshift, hoped that the world would hedge their savings into bitcoin once the next financial crisis hits.

When the next global financial crisis occurs, and the world realizes organizations with $20 trillion in debt can't possibly ever pay it back, and thus must print it instead, and thus fiat is doomed… watch what happens to crypto.
— Erik Voorhees (@ErikVoorhees) November 8, 2018

“They,” Voorhees said while referring to cryptocurrencies like Bitcoin, “may drop during the early phase liquidity crunch, but ultimately the world will move away from fiat money (printed without end, trending toward zero) toward crypto money (known, transparent, fixed supply, not subject to politicians’ opportunism).”
At the same time, economists have a different opinion. Nouriel Roubini, a New York-based financial expert, said that bitcoin was a mother of all scams. He added that cryptocurrencies were a wet dream of individuals with zero financial literacy. Warren Buffet, a Wall Street investment giant, refused to consider Bitcoin as an investment.
“If you buy something like bitcoin or some cryptocurrency, you don’t have anything that is producing anything,” Buffett said in an interview with Yahoo Finance. “You’re just hoping the next guy pays more. And you only feel you’ll find the next guy to pay more if he thinks he’s going to find someone that’s going to pay more.”
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Financial Advisor: Major Banks are 3,233% More Expensive Than Bitcoin

A financial professional paid $10 to his bank for making more than six saving withdrawals. Later, he admitted that using Bitcoin could have been cheaper.
Short the Bankers
Pat Chirchirillo, a financial advisor at Philadelphia-based McAdam Financial, found a 3,233% different between the cost of withdrawals in banks and Bitcoin. From the look of it, he overreached his withdrawal limits, per a Federal rule called Regulation D which limits per saving account withdrawals by month. As a result, his bank – Bank of America – charged him a $10 fee as an act to ensure that Chirchirillo uses his savings account for just saving.
However, he took the opportunity to compare the banking system with cryptocurrencies like Bitcoin.
“Bank of America just charged 10 dollars because I made more than [six] transfers between savings and checking this month,” tweeted Chirchirillo. “[Six] transfers with crypto would cost about 30 cents. That’s 3,233% more expensive.”

Bank of America just charged 10 dollars because I made more than 6 transfers between savings and checking this month. 6 transfers with crypto would cost about 30 cents. That's 3,233% more expensive
Long Bitcoin, short the Bankers @APompliano #disruption #RentSeekingMiddlemen
— Pat Chirchirillo (@PatChirchirillo) January 30, 2019

“Long Bitcoin, short the Bankers,” he added.

Comparing Regulation D with Cryptocurrency Protocols
Regulation D is a way of the Fed to ensure that people practice savings more than spendings. The protocol also warrants that banks have a proper amount of currency reserves. This law applies only to people with savings accounts and excuses checking account holders. Like always, breaking it lands a penalty/fee on the concerned savings account holder.
On the other hand, a common cryptocurrency protocol such as that of bitcoin does not cater to the Federal securities laws. Its entire purpose is to settle and record payments over a decentralized network, using a native token which can be Bitcoin, Ether, XRP, or even a stablecoin. In it, the transactions are entirely peer-to-peer. For every settlement that occurs in a cryptocurrency network, users voluntarily add a fee for miners to speed-up their transaction confirmation time.
Also, in cryptocurrency networks, each transaction consists of inputs which determine how much resources it would require to get verified. For instance, sending 1 Bitcoin which has four inputs would require fee than sending 1 Bitcoin which has one input.
75 Bitcoin Transactions in $10
In retrospective, cryptocurrencies are much more accessible than banks. Using a bitcoin network, it would take Chirchirillo as low as 75 transactions to pay a $10 fee. In the case of banks, as mentioned above, it just took six.
Banks are still considered too expensive. It is never a piece of good news when 1.7 billion people still do not have access to essential financial services. The Financial Clinic, a business coaching nonprofit, recommended its customers to rely on alternative payment mechanism than banks. The clinic’s executive director Mae Watson Grote had told New York Times in 2014:
“When I sat down and looked at my clients’ bank statements and saw that they had paid $110 in fees, I often ended up sending them to the check casher instead.”
Only now, in 2019, a financial advisor sent people to cryptocurrencies instead.
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Tether Replaces EOS to Become 4th Largest Crypto, Shows Market is Very Weak

Stablecoin Tether (Ticker: USDT) has replaced EOS to become the fourth largest cryptocurrency by market capitalization, showing weakness in crypto markets.
The inclination follows the cryptocurrency market’s depressive performance this Monday. Over the last 24 hours, the price of all the top coins, including Bitcoin, Ripple, Ethereum, and others, trended in a negative region. Similarly, the value of EOS, Bitcoin Cash and Litecoin also slipped heavily on a 24-hour basis.
Tether Chart on
In contrast, Tether’s USDT traded at around $1.01 and the stablecoin saw appreciation in its market capitalization. At 1700 GMT, it was $2.04 billion, up 20% from its Monday low at $1.69 billion.
In a similar time frame, the market cap of EOS had posted losses of 6.97%, while Litecoin and Bitcoin Cash’s market cap fell by 7% and 12%, respectively. That explains how Tether, which during the Asian trading session was on the seventh spot, exchanged positions with Litecoin, Bitcoin Cash, EOS – one after another.
Short-Term Trend of Crypto
The demand for stablecoins goes up whenever the crypto market undergoes a strong bearish trend.
The explanation is simple. Traders look to liquidate their crypto holdings for stabilized assets. As converting to fiat assets is not an option for most of the retail investors, they move their funds to stablecoins like Tether. It explains why today the market capitalization of USDT is in green while the rest of the crypto market remains in the red.

That said, Tether’s market cap, which is only $32.8 million ahead of EOS, and $104 million ahead of Bitcoin Cash, could reclaim its lower ranking on the next market correction. In November 2018, top altcoins had received a single day boost of $2.5 billion as Tether’s demand waned.
Bitcoin Should Recover
The recovery of Bitcoin Cash, EOS and Litecoin to reclaim their ranks rests on the performance on Bitcoin. The leading cryptocurrency, whose price action influences the overall market’s trend, has visibly overstayed near $3,600 for weeks. The stability, especially after a year-long bearish trend, indicates that there are fewer buyers in the market. So, a lower demand could excite bears and have Bitcoin test its 2018 bottom near $3,100.
Mark Dow, a hedge fund manager known for shorting his Bitcoin holdings near 2017 peak, feared more downside action for the digital currency.
“Bitcoin has been dead quiet for several weeks around about 3,600,” he wrote. “Last time bitcoin was quite like this was when it was up at 6,500, it ended disastrously. Based on the pattern. odds are we get a similarly sharp drop again soon–may even have started tonight.”
Bloomberg Analysts in their earlier predictions had forecasted that Bitcoin would fall to $1,500 in 2019. However, crypto enthusiasts were hopeful that the digital currency would sustain above $3,000.
As of now, the price is in the midst of both of the prediction – going nowhere.
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Source: New

Crypto Exchanges Begin to Shutdown: Bear Market in Full Force

After miners, it is crypto exchanges that stand before the wrath of a bearish cryptocurrency market.
Liqui, a small but a long-running crypto trading company, announced today that it would close down its operations. In a straightforward goodbye note, the Ukrainian exchange said that it was unable to provide liquidity to its customers. Therefore, it had no economic reason to continue its services.
“We also do not see any economic point in providing you with our services,” the note read. “However, we do not want to return to where we were a month ago. Hence, we decided to close all accounts and stop providing our services. It broke our hearts to do that.”
Liqui admitted that the overlong bearish cryptocurrency market was their reason for quitting. The exchange noted that the market had changed significantly since 2017, and their return would solely depend on whether or not it would correct. On December 31, 2018, the combined cryptocurrency market cap had erased 80% of its value since hitting its peak near $813.8 billion.
Crypto Exchange Purge
The comments led the crypto community towards speculating the beginning of the death of crypto exchanges. Ran Neuner of CNBC predicted the closing down of more trading companies in 2019.
“I’m expecting more exchanges to shut down in this bear market,” he said on Twitter. “Last year everyone rushed to start an exchange. Exchanges require infrastructure that is expensive to maintain and most won’t survive this.”
The predictions drew inspirations from the current health of crypto mining industry. Miners admitted that minting cheap cryptocurrencies had turned uneconomical for them, especially in the face of expensive power bills and growing taxes. Bitmain, the leading crypto mining company, had to layoff 80% of its workforce to compensate for its quarterly financial losses. At the same time, many small miners had already succumbed to the growing bearish sentiment.
The same analogy fits the crypto exchange industry. Liqui, which is 180 ranks behind its competition by daily volume, could not sustain any more losses. And it is likely that other small exchanges would run out of business as well.

The exchange purge has started. @Liqui_Exchange is closing.
I believe many more, especially smaller exchanges will follow. The bull market forced them to make large investments in their IT infrastructure, and the bear market dried out the trading volume.
— Jimmy McShill (@JimmyMcShill) January 28, 2019

Large Exchanges Acquiring?
One other reason that explains why small crypto exchanges would die is the growth of larger players. For instance, the likes of Binance and Coinbase, which are reporting higher trading volume and revenue growth, will likely take over the customer base of smaller exchanges.
Regulation is another key factor that should be considered. Increased scrutiny led to the failure of many ICO projects that were bread-and-butter of the small crypto exchanges. Therefore, their revenue could have dropped drastically for they didn’t have liquidity of serious protocol tokens such as Bitcoin, EOS, Ether, and similar coins.
Liqui will support withdrawals for the next 30 days – until February 28, 2019.
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Why VanEck’s Bitcoin ETF Withdrawal Was Actually Good for Crypto Industry

Bitcoin fell by more than 80% in the past twelve months. The overly impressive bull run of 2017, which led the digital currency value to the peak of $20,000, followed a whole bearish year whereby the price crashed to lows near $3,000. Lack of institutional investors and strict regulations, analysts believed, was one of the primary reasons behind the bitcoin crash.
No ETF in Q1 2019
Bulls hoped 2019 to be a year of bitcoin correction when some of the biggest financial companies announced products for its market. Fidelity, a $2.5 trillion worth asset management firm, for instance, launched bitcoin custodian and trading services. Goldman Sachs, a banking giant, also confirmed that it would begin bitcoin futures trading.
But exchange-traded funds remained to be the most exciting bitcoin product for bulls. Analysts believed that the launch of a regulated Bitcoin ETF would attract billions of dollars in investments. Traders expected that the Securities and Exchange Commission (SEC), the US securities regulator, would approve the world’s first Bitcoin ETF by February 28. The sentiment allowed Bitcoin price to float above its newfound bottom above $3,000.
But, in a surprising turn of events, VanEck, the firm that had sought SEC’s approval to trade Bitcoin ETF on the CBOE exchange, withdrew its application on Wednesday.
US Govt Shutdown Or?
According to VanEck, it is the ongoing partial government shutdown in the US that led them to withdraw their Bitcoin ETF filing. SEC had already delayed its decision on the VanEck’s filing twice in 2018. Before that, the commission had rejected nine ETF applications citing concerns related to Bitcoin market manipulation. But now, with 90% of its staff furloughed, the commission had more reasons to either delay or reject the VanEck’s ETF filing.
“The SEC is affected by the shutdown… we were engaged in discussions with the SEC about the bitcoin-related issues, custody, market manipulation, prices, and that had to stop. And so, instead of trying to slip through or something, we just had the application pulled and we will re-file and re-engage in the discussions when the SEC gets going again,” Jan van Eck, the chief executive of VanEck, told CNBC.
Jake Chervinsky, a crypto believer and a securities laws expert in the US government, believed that VanEck had more reasons to withdraw their Bitcoin ETF application. He said that the US firm expected that SEC would reject their filing. And, it didn’t want any more bad publicity regarding their crypto product.

CBOE has withdrawn the VanEck/SolidX bitcoin ETF proposal (
They haven't given a reason yet, but withdrawal implies that they expected denial & didn't want another SEC order setting bad precedent for the future.
There will be no bitcoin ETF in Q1 2019.
— Jake Chervinsky (@jchervinsky) January 23, 2019

Delay is Better than Rejection
Chervinsky’s statements draw inspirations from the SEC’s earlier concerns about the bitcoin spot market. The regulator had clarified that it would not approve a Bitcoin ETF unless the applicant ensures zero price manipulation in bitcoin’s underlying retail markets.
“This proposal had a very slim chance of success,” said Mati Greenspan, senior market analyst at eToro. “SEC Chairman Jay Clayton has been stressing that the bitcoin market is not yet mature enough for an ETF.”
While the government shutdown put more pressure on the Bitcoin ETF process, VanEck took the correct decision by deciding to refile its application in the future. The firm must have realized how it couldn’t convince the regulator before the deadline. The shutdown, as it seems, gave VanEck a perfect excuse to voluntarily delay its ETF launch.
Source: CMC
At least it convinced retail traders, which didn’t react to the ETF withdrawal news, despite its vital significance to the Bitcoin trade market. The BTC/USD price action, after the time of the announcement, continued to trend between $3,500 near $3,600.
It proved that the investors remained hopeful for a Bitcoin ETF product this year, if not in Q1 2019. Had it been an outright rejection, the market could have suffered.
Now, VanEck expects to come back with a more prepared application. While the firm takes its time, Bitcoin market has proven that it is not dependent on centralized authorities to pursue its trends.
“The market’s lackadaisical response to this news is a clear sign that investors are starting to understand: the crypto market is not dependent on any government or financial institution and no single product or service has the power to make or break bitcoin,” Greenspan said in an email.
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