Wall Street Crypto Dreams Hit A Roadblock as Cryptos Stay Far Away from All- Time Highs

Wall Street Money is like a holy grail for crypto markets and everyone on the street is waiting for its arrival on the crypto-street. While the wait continues and markets still far away from its all-time highs, it looks like a lot of Wall Street Firms that had announced their crypto plans are either differing or shelving it.
Goldman Sachs, Morgan Stanley, Barclays move slow and steady towards cryptos   
According to a recent report published by Bloomberg, plummeting crypto markets and regulatory uncertainty has forced a lot of Wall Street firms and Banks to shelf their crypto plans. Even though a lot of them continue to develop a trading infrastructure, the pace of it is definitely gone down reason being collapse in the value of virtual coins.
Goldman Sachs which was among the prominent names to have announced its crypto plans seems to have slowed down its setup process to a pace where is progress is barely visible and noticeable according to people familiar with its crypto business. Many people in the industry are now found saying that it was idealistic to have expected last year’s frenzy to translate into a Wall Street crypto offering but nothing materialized once the market started plummeting.
Goldman remains the point of focus for expectations of an establishment embrace of crypto. The firm was among the first on Wall Street to clear Bitcoin futures and people familiar with the matter said last year it was preparing a trading desk—the bank even provided its bankers to the New York Times for an interview on its plans.  The bank has yet to offer to the trade of crypto and has gained little traction for its NDF product, having signed up just 20 clients, according to people familiar with the matter. Justin Schmidt, who was hired to head its digital-asset business, said at an industry conference last month that regulators are limiting what he can do. Still, Goldman plans to add a digital-assets specialist to its prime brokerage division, the person said.
Its not just Goldman, Morgan Stanley, the other wall street giant, which hired Andrew Peel as its head of digital assets earlier in the year, has been technically prepared to offer swaps tracking Bitcoin futures since at least September, but so far hasn’t traded a single contract, according a person familiar with the matter. A person with knowledge of the business said in September the contracts would be launched once there was enough evidence that there is significant institutional client demand.
Citigroup too is part of the Wall Street Wolf Pack. The bank too has not traded any of the products it designed for cryptocurrencies within existing regulatory structures, according to a separate person with knowledge of its business.
The story remains the same across Atlantic where Barclays Plc, which had spoken about client interest on a cryptocurrency trading desk, is almost back to square one. Earlier in the yea,r the British bank had hired two former oil traders—Chris Tyrer and Matthieu Jobbe Duval—to evaluate the crypto business but according to sources Barclays has laid them off. Tyrer, who led the digital-assets project, left in September, while Jobbe Duval followed two months later, according to people familiar with the matter. Barclays currently has no plans for a crypto trading desk, according to a spokesman.
There have been few quotes from the street that describe the situation
“The market had unrealistic expectations that Goldman or any of its peers could suddenly start a Bitcoin trading business,” said Daniel H. Gallancy, chief executive officer of New York-based SolidX Partners, which hopes to launch a Bitcoin ETF in the U.S. “That was top-of-the-market-hype thinking.”
Another one coming from Eugene Ng, a former Deutsche Bank AG trader in Singapore who has set up crypto hedge fund Circuit Capital.
“It appears as if progress is coming to a halt, yet nothing could be further from the truth, The bear market is going to allow many of these institutions to build the proper foundations without rushing to build-out infrastructure without adequate testing for fear of missing out on a gold rush.”
Will the market revival get these firms back in the game or its regulatory clarity that will do the job is something that one will have to wait and watch? But one thing is for sure it’s not going to be for Wall Street Money to find its way into cryptocurrencies
Will the Wall Street Money reach Crypto Street despite all roadblocks? Do let us know your views on the same
The post Wall Street Crypto Dreams Hit A Roadblock as Cryptos Stay Far Away from All- Time Highs appeared first on Coingape.
Source: CoinGape

After the Crypto Crash, Wall Street Bankers are Ready to Say Goodbye


After the Crypto Crash, Wall Street Bankers are Ready to Say Goodbye

Established Wall Street companies slowed their already halting efforts to make a business out of crypto mania this year. They didn’t really give up, but most of them flinched as the value of virtual coins collapsed.

After the Crypto Crash, Wall Street Bankers are Ready to Say Goodbye

Continue reading at Coinspeaker
Source: CoinSpeaker

Goldman Sachs, Morgan Stanley Join CLS’s FX Settlement System Powered by IBM

With the hype of blockchain, the first global Forex market (FX) enterprise based on blockchain went live today. CLS Group or Continuous Linked Settlement is US financial enterprise that offers settlement services across FX market participants.  In July, CLS tied up with IBM for Proof of Concept via CLT platform to precede service on a shared network.
FX Market To Improve Efficiency With CLSNet
The announcement revealed that Goldman Sachs and Morgan Stanley with six other banks from North America, Europe, Asia and Bank of China (Hong Kong) have joined the live system of CLSNet, initiated by IBM and CLS. Additionally, the other market participants will soon join the board, CLS said.
Reports also disclosed its key aim behind launching CLSNet is to offer better bilateral netting service for FX market participants. This is to reduce settlement risk as well as to improve operational efficiency. With the launch, the firm agreed to work under regulatory stance by complying with FX Global Code of Conduct.
Alan Marquard, chief strategy and development officer at CLS said:
“A standardized and automated payment netting process will lead to improved intraday liquidity, reduced cost, improved operational efficiencies and ultimately support business growth.”
Also IBM Blockchain’s general manager, Marie Wieck described the initiative as
It is a testament to the ongoing maturity of blockchain technology and the value that it can deliver in practice,”
IMB Blockchain Emerged
Notably, CLSNet counts as the third blockchain system powered by IBM within 2018 – following IBM’s food tracking platform (IBM Food Trust) and trade finance software (We.trade). In specific, the new FX netting system will be based on IBM’s Hyperledger Fabric distributed ledger technology (DLT). Consequently, It has been revealed that the CLSNet will
“runs on the Linux Foundation’s Hyperledger Fabric blockchain framework”,
Viewing the current system running on FX market, CLS said that the manual processes are not completely standardized or scalable and will likely to have an intervention. Market participants by opting gross payment settlement instead of net payment are apt to encounter settlement risk which eventually leads to intraday liquidity demands. Hence the CLSNet is launched to mitigate these risks.
It said;
“The impact of limited payment netting is exacerbated by the high settlement costs associated with emerging market currencies, despite their increased relevance for FX market participants”,
Barry Lo, General Manager of Bank of China (Hong Kong) is confident of CLSNet service. He said;
“CLSNet [will]… enhance operational efficiency in trade matching and payment netting for non-CLS settled currencies such as CNH, and strengthen our risk management. This underscores our strong commitment to driving Fintech innovation and represents a major step forward in the application of new technology in our businesses.”
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Source: CoinGape

IBM and CLS Finally Go Live with Their Blockchain-based Payment Service CLSNet


IBM and CLS Finally Go Live with Their Blockchain-based Payment Service CLSNet

CLSNet will help to overcome the existing issues of trade settlement risks, intraday liquidity, and operational efficiency in the global forex market.

IBM and CLS Finally Go Live with Their Blockchain-based Payment Service CLSNet

Continue reading at Coinspeaker
Source: CoinSpeaker

Bitcoin Struggling at $5,500 while USD Tumbles & Morgan Stanley says Dollar’s Bull days Over

At $5,526 Bitcoin is still in the red but as Dollar weakens coupled with historical movement it might see some recovering. USD tumbled on the grounds of slowing economic growth whose bull days have come to an end as per Morgan Stanley.
Bitcoin Still Weak
After sliding over 10 percent in the past few days, Bitcoin has stopped at $5,526 with 24-hours losses of 1.15 percent. The market cap of the leading cryptocurrency has come down to $95 billion. In the past 4-days, BTC price has come down from $6,400 to $5,350.
Bitcoin 5-days price, Source: Coinmarketcap.com
Crypto analysts are calling out for even more pain ahead and if it stays below $6k level, the outlook will remain bearish. However, if history is any indication, November and December have always been the busier ones that see a hike in prices. Also, as dollar slides, Bitcoin might see a recovery.
Dollar Taking a Hit
After riding the bulls for quite some time, now Dollar’s bulls days seems to be over. The US dollar weakened and the Treasury yields pulled back after a top Federal Reserve official said US interest rates are neutral while cautioning about the slowing economic growth. Meanwhile, uncertainty over Brexit has already created instability among the currency and other markets.
Bloomberg quoted Chris Gaffney, president of World Markets at TIAA Bank in St. Louis as saying,
“Investors are starting to look at the vice chairman’s remarks this morning as perhaps a little dovish, and it is bringing up worries about global growth.”
Policy makers have already raised the rates three times this year. Markets have been pricing in the chances of another hike next month and dollar benefitted from these expectations for higher US rates, rising about 4 percent.
INTL FCStone analyst Edward Meir said,
“When you get people talking about the economy slowing down, they may not raise rates so quickly or as aggressively and that is bearish for the dollar.”
A weakening dollar led to stock market indexes, gold, and several currencies rising against USD. James Steel, chief metals analyst at HSBC Securities in New York said, “A weaker dollar and lower yields are pretty much tailor made to benefit gold.”

According to Morgan Stanley, the bull run of the dollar has ended. Hans Redeker, global head of FX strategy at Morgan Stanley said,
“We believe the USD has reached its peak at around current levels. The USD may weaken as credit spreads widen, equity prices fall, and sovereign bond yields also begin falling amid disinflationary pressure and falling oil prices.”
Another sign of more weakness coming for the dollar as per Morgan Stanley is the recent foreign flows into the US assets that have been short-term and are prone to a quick reversal as he says,
“Instead of strong inward foreign direct investment or other long-term flows, we see evidence that flows to the U.S. have been into money market funds and are carry trade motivated.”
The foreign-exchange team of Goldman has also said that greenback is approaching its peak. Credit Agricole sees a weaker dollar as well.
Dollar’s bearish momentum will be further driven by the falling oil prices, tighter liquidity in US markets, and slowing American economy. This is expected to benefit the emerging markets and countries that are reliant on USD-denominated funding.
The post Bitcoin Struggling at $5,500 while USD Tumbles & Morgan Stanley says Dollar’s Bull days Over appeared first on Coingape.
Source: CoinGape

A Low Interest from Institutional Investors Impedes Wall Street Crypto March


A Low Interest from Institutional Investors Impedes Wall Street Crypto March

Revolut founder Nikolay Storonsky presents some facts as to how BTC trading volumes have dropped sharply and why the recovery won’t arrive anytime soon.

A Low Interest from Institutional Investors Impedes Wall Street Crypto March

Continue reading at Coinspeaker
Source: CoinSpeaker

Multinational Bank Sees Positive Future For BTC

The multinational investment bank and financial services company, Morgan Stanley has published their latest report which was released on 31st October. The report contains an overview of the evolution of Bitcoin and how its investment purpose has changed throughout the years but the report has a bullish sentiment to it in comparison the outlook for 2017. Also in the report is a few drawbacks of the crypto including a lack of regulations and energy.
To start with, the banking giant has recently begun to offer trading derivatives that are tied to Bitcoin. The company started offering Bitcoin swap trading tied to future contracts. Earlier in the year, James Gorman (CEO) said that a trading desk specialising in derivatives tied to virtual assets could be a potential service offered to clients.
As said by Crypto Ticker, Morgan Stanley was reported comparing Bitcoin to Nasdaq to clients, even though it moves almost fifteen times quicker. The bank also predicted that in the future, financial markets would start to increase their adoption for crypto over the years saying:
“Over the coming years, we think that the market focus could turn increasingly toward cross trades between cryptocurrencies/tokens, which would transact via distributed ledgers only and not via the banking system.”
Trend of stablecoins
The stablecoin trend began in the late months of last year with multiple giants in the industry launching stablecoins of their own experiencing a burst during the summer. Stablecoins are digital currencies which the whole purpose is to minimise the minimise the volatility of price fluctuation and they are usually backed by either fiat currencies like, gold, commodities and the US dollar or other digital assets.
In the report, it also mentioned how the introduction of stablecoins in the crypto market resulted in Bitcoin trading volumes taking a proportional hit despite Bitcoin making up over 50 percent of total market valuation. Experts believe that this added the subsequent fall in prices that resulted in the current bear market.
The highlight
The highlight of the report is when it calls crypto’s “rapidly morphing thesis”. Tracing Bitcoin’s evolution from different roles of virtual cash, a new fundraising mechanism, a method for the store of value to its current form of a new institutional investment class
What are your thoughts? Where do you see Bitcoin going in the future? Let us know what you think down below in the comments!

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Institutional Investors Continue Foray Into Crypto, Yet Prices Remain Low

Amid 2017’s roaring bull run, which saw the crypto market’s value swell from $20 billion to $800 billion, institutional players, such as hedge funds and endowments, were evidently hesitant to step foot in this industry. But now, analysis done by Morgan Stanley indicates that institutions have begun to accumulate crypto en-masse, presumably due to the fact that cryptocurrencies are still situated in the bargain bin.
“The Virus Is Spreading”: Institutional Money Pours Into Crypto
The widespread arrival of institutional investors has long been seen as the “holy grail” for the crypto industry’s maturation. And surprisingly, despite bearish market conditions, a report from Morgan Stanley has outlined the fact that this holy grail could be rapidly approaching.
Discussing a recently-released Morgan Stanley report, which was titled “Update: Bitcoin, Cryptocurrencies and Blockchain,” Alex Kruger, a world-renowned Argentinian market specialist, claimed that there have “been considerable institutional inflows since January,” alluding to the sentiment that today’s crypto asset values are ripe for the proverbial institutional picking. However, citing data revealed through the 50-page document from the legendary financial institution, which gave a deep-dive of the current state of crypto, Kruger added that it isn’t cut and dried.
The industry savant, who made a graph (seen below) to convey his thought process, explained that institutional money in cryptocurrencies, which reportedly tallies to $7 billion dollars, only makes up 2.8% of July’s collective market capitalization of all cryptos. It is important to note that this figure has declined since January 2017’s 3.8%, indicating that retail investors quickly outpaced their institutional counterparts in the past 18 months.
Regardless, institutional market penetration, as Kruger dubbed the statistic, is still up drastically when compared to January 2018’s dismal 1%, further supporting the theory that institutions have continued to pick it up where retail has dropped the ball, so to speak.

1/ Institutional money is coming they said. The virus is spreading they said … Data indicates there have been considerable institutional inflows since January, yet penetration is at pre-bubble levels. pic.twitter.com/YWT4ROmsxj
— Alex Krüger (@Crypto_Macro) November 4, 2018

Backing his analysis with figures, Kruger pointed out that while institutions’ crypto assets under management (AUM) only visibly increased by $1.25 billion between January and July 2018, prices fell through the floor during that time. Explaining the significance of this caveat, the researcher estimated that $5.9 billion actually entered this market via the pockets of Wall Street bigwigs, making it likely that institutions have thrown upwards of $10 billion at crypto assets in recent years.
To put the jaw-dropping sum into some much-needed perspective, Kruger explained that $5.9 billion is comparable to 237 days of block rewards issued by the “largest coins,” which report amounted to $24.8 million per day as of July 1st.
However, despite the influx of institutional capital, which would presumably catalyze a bull run, the market has stayed quiet, with bears and bulls remaining caught in a near-endless standoff. This could indicate that institutions are only buying enough crypto to keep this market afloat, as retail interest has all but dried up, save for the diehard “HODLers” and long-term players.
OTC Desks, Not Crypto Exchanges
More optimistically, however, the non-action of this market could indicate that institutions have been siphoning their capital into crypto through over-the-counter (OTC) desks, not via traditional order book-style platforms that can be decimated by multi-million-dollar trades.
As reported by NewsBTC, according to Bobby Cho, the global head of trading at Cumberland, DRW’s cryptocurrency trading division, hedge funds continue to issue a multitude of over-the-counter Bitcoin transactions, which are often over $100,000 per transaction. Cho explained what this fact meant, stating:
“What that’s showing you is the professionalization that’s happening across the board in this space. The Wild West days of crypto are really turning the corner.”
Although this is all well and good on its own, Cho wasn’t the only industry insider to be spectating such transactions. Boston-based Circle corroborated this claim, with CEO Jeremy Allaire telling Bloomberg that Circle Invest has seen “triple-digit growth” in the number of individuals enrolling into its OTC business.
So for now, it seems that bull-watchers will have to sit on their hands until retail buying pressure picks up.
Featured Image From Shutterstock
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Source: New feedNewsBTC.com

Crypto Experts Join Bitcoin Developer & fmr. Morgan Stanley MD to Appeal SEC for Regulatory Framework

It has been only less than 48 hours since the news of a letter written by leading crypto experts to SEC asking for upgrading the regulations to fit in cryptocurrencies has surfaced, and it has already started receiving support from other analysts and industry veterans. The latest names who have come in support of it are Morgan Creek Digital’s founder and partner, Anthony Pompliano and blockchain expert and board member of 9Spokes, Thomas Power.
Industry backs upgradation of law
Crypto experts and analysts have added their opinion to the recent proceedings with the SEC delaying decision on the VanEck/SolidX Bitcoin ETF proposal by submitting their views of having an upgraded regulatory framework for accommodating cryptocurrencies. Of several recommendations made to the SEC, Bitcoin Core’s developer Bryan Bishop argued that the biggest change the SEC should bring about is to implement policies and regulations directly in partnership with cryptocurrency engineers. The letter quoted
“We recommend that the SEC engage with those who are experienced with technology, such as cryptographic engineers, software developers, Bitcoin exchanges, smart-contract designers, blockchain developers, and existing digital-asset managers to ensure best practices are implemented.”
In addition to being a co-author of the letter, Brian bishop had was also quoted by Forbes saying
“Bitcoin is fundamentally a technological system with many nooks and crannies, It’s the concept that rules can be enforced using software, math and cryptography rather than policy”
The comment and voice have found backing of other crypto experts as well. When asked by media about this suggestion put forward by Bryan Bishop Morgan Creek Digital’s founder and partner, Anthony Pompliano said ‘of course’ in agreement. He added that he did not know whether the SEC would have considered these suggestions and did not comment further on the proceedings taking place.
Echoing Anthony Pompliano sentiment, blockchain expert and board member of 9Spokes, Thomas Power also agreed with Bryan Bishop’s claims on the basis of ‘logic’ but refused to see the historical evidence behind such a move coming to exist.
Also, read: Current Regulatory Framework doesn’t Suit Enterprise Adoption of Cryptos: Veterans Tell SEC
Upgradation of regulation necessary said the letter to SEC  
The group of Industry experts and veterans comprising of Bitcoin core developer Bryan Bishop, former Morgan Stanley managing director Caitlin Long, e-commerce coding pioneer Chris Allen, founder of Ernst & Young’s blockchain team Angus Champion de Crespigny and fund manager attorney Gavin Fearey, in an letter to SEC had put forward their intent to assist the SEC by disclosing what they feel are critical considerations for handling cryptocurrency regulation that was not addressed in other comment letters previously made public by the SEC. The letter further stated that the digital assets are a unique asset class with unique strengths and abilities and if they are fitted into existing market infrastructure, there will be the introduction of risks to investors that would not otherwise exist. The group suggests that the SEC should try to possibility update the market infrastructure if it actually wants to take advantage of Bitcoin and other technology and further strengthen the financial system.
The letter had also argued to put restrictions on Bakkt, the ICE planned cryptocurrency exchange expected to launch in November. The authors stated that the process of storing all funds in a single place and lending out or otherwise investing the stored cryptocurrency could devalue Bitcoin by creating more liquidity than there are assets to back it. According to the report
“Digital assets are natively segregated, and maintaining this natural segregation at all times would best protect investors by conforming to the architecture of digital asset technology.”
It also stated
“ Commingling (of digital assets) creates a “honeypot” for hackers to attack, and the ability of financial institutions to manage this security risk is likely to vary widely”
The concerns raised by the veterans regarding current regulations and enterprises is something that can’t be overlooked and now with more industry experts and analyst backing it looks like SEC may have to break its precedents and consider an exception for this one
Will SEC up its game and upgrade the regulatory framework to accommodate cryptocurrencies? Do let us know your views on the same.
The post Crypto Experts Join Bitcoin Developer & fmr. Morgan Stanley MD to Appeal SEC for Regulatory Framework appeared first on Coingape.
Source: CoinGape

Analyst: Large Scale Investors Interested in Bitcoin Despite Current Prices

Although Bitcoin is sitting just above its year-to-date low at $6,300, analysts are confident that large scale investors are still interested despite the persisting bear market. Industry sentiment also appears to be near its yearly low, with most investors and analysts calling for pending drops closer to $4,800.
Despite there being little hope for another major rally in the foreseeable future, institutional and large-scale investors are still interested in the markets, according to Naeem Aslam, chief market analyst at Think Markets U.K., reports Market Watch.
“On the OTC (over-the-counter) front we are still seeing significant demand, many of it large orders, buying both bitcoin and ethereum at these levels. However, on the retail front, they are more in panic mode.”
Aslam’s analysis of the institutional demand for cryptocurrency is supported by the sheer number of institutions beginning to offer cryptocurrency products.
Recently, reports surfaced claiming that Citigroup was working on a cryptocurrency custodian investing solution that would operate similarly to American depository receipts, allowing institutions to invest in Bitcoin through a fully regulated product that is secure from risk of hacking. Morgan Stanley also announced plans to offer a similar product.
Alistair Milne, the chief information officer at Altana Digital Currency Fund, discussed the growing interest in cryptocurrencies by major financial institutions, noting that institutional demand is important for future cryptocurrency prices, saying:
“Goldman, Citibank, ICE. Now Morgan Stanley. All launching Bitcoin products and services because there’s no institutional demand. Institutional money took the hedge fund industry from $300 billion to $6 trillion.”
SEC Bitcoin ETF Decision the Most Immediate Catalyst for a Major Bitcoin Price Move
Bitcoin has been ranging between $6,200 and $6,600 for the past week, following a move down from its previous uptrend, where it rose from $6,300 to $7,300 before falling back to $6,200. Despite the current stability, investors are waiting for the upcoming U.S. Securities and Exchange Commission (SEC) announcement regarding the Bitcoin ETF before placing any major trades.
The SEC will be announcing their decision on the CBOE VanEck/SolidX ETF on September 30th, and investors are placing a significant amount of stock on the results of the ruling. Many familiar with the application and the SEC’s approval framework have claimed that the VanEck/SolidX ETF is the most likely of all the previous applications to be approved.
If the SEC does approve this Bitcoin ETF, market sentiment will surge on the hopes that institutional and retail investments will rise, leading to a surge in Bitcoin prices and the overall cryptocurrency markets.
If their decision is to deny or delay the application, however, the markets will respond negatively, with Bitcoin leading a temporary price crash that will pull the overall markets down.
Once institutional products begin being released by the aforementioned banks, they will likely impact the prices as well.
Featured image from Shutterstock.
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Bitcoin: 2020 Set for Next Financial Crisis, Everything will Come Crashing Down

2020 has been set as the date for the next financial crisis by the economist and experts alike that will break down everything as JPMorgan chase details the crashing we will be seeing. What role Bitcoin and cryptocurrencies will play here?
The world is sleepwalking into a future crisis
Everyone is talking about the impending financial Crisis. Now, economists and experts are putting down the year it is going to strike the world down.
Recently, Nouriel Roubini stated:
“…by 2020, the conditions will be ripe for a financial crisis, followed by a global recession.”
Talking about the reasons for the same, he points out unsustainable policies, inflation, trade disputes, frothy global equity markets, and slower growth among other factors signing the death warrant of the global market.
Not long ago, former UK Prime Minister, Gordon Brown stated, “We are in danger of sleepwalking into a future crisis.”
He also shared,
“The cooperation that was seen in 2008 would not be possible in a post-2018 crisis both in terms of central banks and governments working together. We would have a blame-sharing exercise rather than solving the problem.”
Everything will come crashing down: 2020 is gonna be worse than 2008 crisis
Now, JPMorgan Chase & Co. has stated 2020 the year of the recession which will see the slide of 20% in US Stock. The report further notes U.S. corporate-bond yield premiums will jump 1.15% points, 48% slide in emerging-market stocks, 2.79% point widening in spreads on emerging-nation government debt and much more. Also, emerging currencies will see a drop of 14.4 percent.
They further note the potential for a “Great Liquidity Crisis” future while stating,
“The shift from active to passive asset management, and specifically the decline of active value investors, reduces the ability of the market to prevent and recover from large drawdowns.”
Apparently, the longer a recession lasts the bigger the hit to the markets as the report states:
“The recession’s duration is a powerful drag on returns, which should dovetail with some readers’ concerns that policymakers lack the necessary monetary and fiscal space to extract economies from the next recession.”
Also, read: Bitcoin Adoption in Argentina & Venezuela Hitting Highs in Tandem with Inflation
Where does Bitcoin stand?
A few days back, IMF had a poll on Twitter asking if the world is better prepared after the 2008 crisis, concluding to a No.

It’s been 10 years since the start of the global financial crisis. With the lessons learned since then, do you think the world is better prepared now?
— IMF (@IMFNews) September 13, 2018

Bitcoin got its first mention just about two months after US investment bank Lehman Brothers filed for its bankruptcy. Now, after 10 years through various ups and downs, Bitcoin is still here, expanding its reach and adoption.
Though at one side the liquidity crisis can force people to cash out their investments which can be expected to happen in case of Bitcoin as well, experts and crypto enthusiasts are positive and hopeful of Bitcoin to be the saviour during this crash.
During the crashes, silver and gold become the preferred hedge against the crisis. But this time people have another option i.e. digital assets. Bitcoin is increasingly seen as the lucrative alternate option, especially to the millennials.
Moreover, as people lose faith in one currency, they tend to leave the sinking ship and jump onto the other one that just might be the case for Bitcoin as well.
Institutions are already fast diving
In the past few months, institutions have come out in the open and made their crypto-related plans known. From Morgan Stanley, Merrill Lynch, Goldman Sachs to JP Morgan, Fidelity Investments, Blackrock and so many more, institutions are making headway into the crypto market.
As Tweeted by Kim Dotcom, who previously also shared how gold and cryptos make the sense in the coming crash, again insisted:

Just last month he shared,

Also, Crypto experts and founder and partner at Morgan Creek Digital, Anthony Pompliano Tweeted:

Unpopular opinion: Institutions will come under pressure in next 5 years if they have 0% exposure to Bitcoin & digital assets. As fiduciaries, they need to invest capital in the best risk-adjusted opportunities.
Digital assets historically provide best returns per unit of risk.
— Pomp 🌪 (@APompliano) September 16, 2018

Bitcoin and cryptocurrencies have surely got a chance against the financial crisis. Now, only the time will tell how hard we will be hit and what role Bitcoin will play in this.
Do you think Bitcoin and other cryptos will be seen as an alternative option during the coming financial crisis or will it crash along with other markets?
The post Bitcoin: 2020 Set for Next Financial Crisis, Everything will Come Crashing Down appeared first on Coingape.
Source: CoinGape

Citigroup, Morgan Stanley’s Roadmap Shows Institutional Demand For Bitcoin is Surging

Over the past week, Citigroup and Morgan Stanley have doubled down on their plans to offer tradable instruments and products around Bitcoin.
Alistair Milne, the chief information officer at Altana Digital Currency Fund, stated that the increasing interest towards cryptocurrencies as an asset class by banks and regulated financial institutions is crucial, as it demonstrates the rapidly growing demand for Bitcoin from institutional investors.
“Goldman, Citibank, ICE. Now Morgan Stanley. All launching Bitcoin products and services because there’s no institutional demand. Institutional money took the hedge fund industry from $300 billion to $6 trillion,” Milne said sarcastically, implying that banks are seeing solid demand from institutions.
Led by Goldman Sachs, Now All Banks are Coming to Crypto
The wave of banks and regulated financial institutions entering the cryptocurrency sector by offering Bitcoin products was initiated by Goldman Sachs in mid-2018.
In June, Goldman Sachs CEO David Solomon publicly said that the bank has been clearing futures around Bitcoin on behalf of its clients.
“We are clearing some futures around Bitcoin, talking about doing some other activities there, but it’s going very cautiously. We’re listening to our clients and trying to help our clients as they’re exploring those things too. Goldman Sachs must evolve its business and adapt to the environment.”
The positive attitude towards crypto by Goldman Sachs dated back to late November, when former chairman and CEO Lloyd Blankfein stated that it is arrogant to dismiss Bitcoin due to the lack of central authorities governing the asset because there exists a chance that the consensus currency could gain mass adoption.
“A five dollar gold coin was worth five dollars because it had five dollars worth of gold in it. Then they issue paper money that is backed by gold in the treasury. Then one day, they issue paper money that does not have the backing of gold. There was no pledge that if you turn it in, I’ll give you five dollars of gold. It is fiat money. I say this piece of paper is worth five dollars and so therefore it is five dollars and a lot of people did not take that for a long time. But, now they do without question. You move a little bit further and you get bitcoin that is not a fiat currency so I don’t trust, it and I don’t like it. On the other hand, if it works, I say maybe it was a natural progression from hard money to digital money, said Blankfein.
The open-mindedness of Blankfein and his acknowledgement of Bitcoin as a consensus currency with the potential to lead the pathway from cash to digital money has ultimately led the entire banking sector, at least in the US, to become more friendly towards the emerging asset class.
Not All Due to Goldman
Banks generally are pressured to follow the trend and to dismiss services that are of no demand by replacing them with highly profitable ventures. Hence, even if Goldman Sachs had focused the majority of its resources in institutionalization Bitcoin, if institutions had not showed much interest in it, other banks would not consider entering the market.
As Milne suggested, the sudden pivot in the stance of banks towards cryptocurrencies demonstrate the rapid increase in the demand for the asset class from institutions, which possibly could have been triggered by the low price range of most cryptocurrencies.
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Source: New feedNewsBTC.com

Bitcoin Trading Options Given To Morgan Stanley Customers

The global investment bank based in the United States, Morgan Stanley is looking to offer Bitcoin swap trading for its clients according to sources.
According to Alistair Marsh, a reporter from Bloomberg, people who are familiar to the matter have said that the giant company “plans to offer trading in complex derivatives” linked to Bitcoin.
According Alistair’s sources, the global investment bank “will deal in contracts that give investors synthetic exposure to the performance of Bitcoin,” and essentially copying plans from Wall Street’s Goldman Sachs and Intercontinental Exchange with others.
Continue reading Bitcoin Trading Options Given To Morgan Stanley Customers at Crypto Daily™.
Source: Crypto Daily

After Citi, Morgan Stanley Introduces a Crypto Product for its Customers

Everyone was waiting for an ETF to get institutional money into cryptocurrencies, but as the wait gets longer and cryptocurrencies entering a sweet spot to buy after facing a good correction, the investment managers to the institutional monies are not being able to keep their hand off cryptos. In a latest attempt to infuse institutional monies into cryptos Morgan Stanley is planning to offer trading in complex derivatives, the Bitcoin Swaps
Giving investors synthetic exposure to the performance of Bitcoin
Morgan Stanley soon would be seen exposing its clients to the cryptocurrencies as according to a source familiar to the matter, has reported to Bloomberg that the US. based bank is planning to offer to trade in complex derivatives based on bitcoin. Morgan Stanley will deal in contracts that give investors synthetic exposure to the performance of Bitcoin, and the investors will be able to go long or short using the so-called price return swaps, and Morgan Stanley will charge a spread for each transaction.
By definition, A swap is a derivative contract through which two parties exchange financial instruments. These instruments can be almost anything, but most swaps involve cash flows based on a notional principal amount that both parties agree to. Usually, the principal does not change hands. What Morgan Stanley is trying to build is a swap based on the performance of Bitcoin.
If the source is to be believed the bank is already technically prepared to offer the Bitcoin swap trading and will launch once there is proven institutional client demand and after the completion of an internal approval process.
Also, read: Bitcoin Hits $6,500 while Altcoins “Exploding” with Gains as Experts Say Cryptos to Rally
Crypto bells are ringing on the wall street
A couple of days back Citi, the New York-based bank had announced that it has come up with perhaps the most direct way to invest in cryptocurrencies without actually owning them. The bank has developed an instrument it’s calling a Digital Asset Receipt or DAR. It works much like an American Depository Receipt or ADR, which has been around for decades to give US investors a way to own foreign stocks that don’t otherwise trade on US exchanges. The foreign stock is held by a bank, which then issues the depository receipt.
In this case, the cryptocurrency is held by a custodian and the DAR is issued by Citigroup, the people said. The bank will watchfully inform the Depository Trust & Clearing Corp, a Wall Street middleman that provides clearing and settlement services, once it’s issued the receipt, one of the people said. That lends an important layer of legitimacy and gives investors a way to track the investment within a system that they’re already familiar with, the person added.
The institutional monies are waiting to enter the crypto markets but are still not coming in as they still wait for regulatory, security and liquidity measures to come in before this large chunk of money can enter. But now with these steps taken by wall street giants, one can be sure that cryptos will soon be flourished with institutional money.
Let’s see how do institutions respond to these crypto products. A few months should give us an idea of how do these things change the course of money into cryptos
Will these products be a larger money puller than the ETF? Do let us know your views on the same.
The post After Citi, Morgan Stanley Introduces a Crypto Product for its Customers appeared first on Coingape.
Source: CoinGape

Morgan Stanley to Offer Bitcoin Trading, Following Citigroup and Goldman

$83 billion investment bank Morgan Stanley is following the footsteps of Citigroup and Goldman Sachs, and will soon offer Bitcoin swap trading to its clients.
As reported by Alastair Marsh at Bloomberg, the US banking giant has already developed the infrastructure required to offer complex derivatives tied to Bitcoin and will launch Bitcoin swap trading as soon as the bank sees sufficient demand from institutions.
Currently, the bank is said to be undergoing an internal approval process. Depending on the outcome of the internal meeting and the short-term trend of the institutional market of cryptocurrencies, the launch date of Morgan Stanley’s Bitcoin swap trading platform could be delayed or shortened.
Goldman Sachs is Already Clearing Futures
In June, former Goldman Sachs COO David Solomon, who was recently promoted to the CEO of the US-based bank, acknowledged for the first time that the bank has been clearing futures around bitcoin.
At the time, Solomon stated that the bank has been considering the launch of other services in the cryptocurrency market to facilitate growing demands to the emerging asset class, but is approaching the market with caution by evaluating regulatory frameworks and policies around it.
During an interview with Bloomberg TV China, Solomon said:
“We are clearing some futures around Bitcoin, talking about doing some other activities there, but it’s going very cautiously. We’re listening to our clients and trying to help our clients as they’re exploring those things too. Goldman Sachs must evolve its business and adapt to the environment.”
Morgan Stanley is yet to start offering Bitcoin futures and derivatives. But, it is positive that the bank has created a system to clear futures around cryptocurrencies first, prior to publicly releasing its plans to commit to the cryptocurrency market.
Experts believe that the introduction of cryptocurrency-based trading instruments and institutional products will further stabilize the market and allow cryptocurrencies to become more favorable towards large-scale investors.
Previously, Bitcoin Foundation and VISA Executive Jon Matonis stated that the emergence of Bitcoin-related products such as futures offered by strictly regulated financial institutions in the US market will lead to the institutionalization of the market.
With Morgan Stanley, Citigroup, and Goldman Sachs having solidified plans to enter the market, analysts expect the institutionalization of the crypto market to occur relatively soon.
“I think it’s fabulous that they’re getting into it because it brings in new liquidity. They’re going to develop futures markets, options markets, I even think you’re going to start to see interest rate markets around bitcoin. We’re used to hearing things about Libor, the index for bitcoin interest rates is Bibor,” said Matonis.
Massive Progress in 2018
This year, Goldman Sachs have started the trend of offering products around the cryptocurrency market. JPMorgan, Morgan Stanley, Citigroup, and other major banks soon followed, expressing their intent towards facilitating the demand for cryptocurrencies.
For many years, the cryptocurrency market has expected institutional investors to commit to digital assets as an alternative store of value against traditional assets. But, the infrastructure was not ready to handle such demand.
In the upcoming months, as an increasing number of major banks continue to pursue the integration of cryptocurrencies into their existing infrastructures, more capital will be injected to the market, leading the recovery.
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Source: New feedNewsBTC.com