April 22 – 28, 2019 | Crypto Hedge Funds, OSC Hearing Update & More Crypto News

3iQ Research Group consolidates the top five cryptoasset stories of interest
to investment advisors and our investors.


Report: Crypto-related Hedge Fund Holdings Grew 40% Q/Q

April 26 – According to a new research report released by Circle, the Goldman Sachs backed crypto startup, crypto-related hedge funds, private equity firms, and other venture capitalists had increased their holdings by almost 40% quarter-over-quarter. According to the research, most of the increases occurred before the most recent bull run, which could indicate that the next quarter may see an even larger increase. The research report also indicated that almost 20% of ether in circulation has been locked in various smart contracts, such as the popular MakerDAO, or the prediction markets found on the Augur network.

Read the full article here.

Read the full report here.


Next Hearing Date Set for 3iQ Corp. and “The Bitcoin Fund” at OSC Offices

April 283iQ Corp. has advanced to the next public hearing stage with the Ontario Securities Commission (OSC). The next hearing is scheduled to be on the week of June 3rd, 2019 at the OSC offices in Toronto. 3iQ had publicly filed a non-offering preliminary prospectus for The Bitcoin Fund on October 31, 2018. The decision of Raymond Chan, Acting Director of the Investment Funds & Structured Products Branch of the Ontario Securities Commission (OSC) to refuse to issue a receipt for the prospectus of 3iQ’s The Bitcoin Fund was published on February 15, 2019. According to the OSC’s own regulatory process, 3iQ needed a formal rejection of the prospectus from the Director in order to later appeal at a public hearing in front of a panel of OSC Commissioners.


Genesis Global Trading Lends $425 Million USD of Crypto in Q1 2019

April 25 – The major crypto trading firm Genesis Global Trading has reportedly wrote $425 million USD worth of cryptocurrency loans through Q1 2019. The loan book indicated that bitcoin-denominated loans reportedly made up 68%, ripple-denominated made 6.7%, and ether and litecoin-denominated loans both made 3.6%. Genesis Global Trading is known for being one of the few firms who offer clients the ability to short real cryptocurrencies, rather than derivatives and other synthetics that track cryptocurrency prices. Not all of the $425 million USD of loans were made for short-sellers. Notably, short sellers only accounted for 3-5% of bitcoin loans, which was down half from early 2018. “This speculative bet on the downside of bitcoin started to disappear towards the end of 2018 and now it doesn’t exist,” said Michael Moro, the CEO of Genesis Trading. Read the full article here.

Read the full article here.


Crypto Custodian Completes a SOC 2 Type 2 Examination

April 23 – The crypto custodian BitGo has passed a SOC 2 Type 2 examination, which would make it the first crypto company in the world to receive this type of certification. The main difference between the two examinations is that in the Type 1 examination, an auditor ensures that a company has implemented a set of internal controls to maintain its security, while the Type 2 examination checks to ensure that the firm is following the rules it set for itself. “As part of the examination, a service auditor needs to obtain written representations from the company’s management with the description of the company’s system,” said Olga Usvyatsky of Audit Analytics. “In a type 2 report, the auditor will also provide a statement whether these controls were operating effectively at a point in time.”

Read the full article here.


E*Trade is Close to Launching Cryptocurrency Trading

April 26 – E*Trade, a leading online retail brokerage, is coming close to allowing its users to buy and sell cryptocurrencies. The company will initially allow the trading of bitcoin and ether, and will plan to introduce additional cryptocurrencies in the future. E*Trade will be one of the largest securities brokers that will give its users the ability to trade cryptocurrencies. The cryptocurrency exchange market is a highly-competitive industry with heavyweights such as Coinbase and Gemini, and others such as Square and Robinhood. Last year, Coinbase had reached an evaluation of $8 billion USD and had projected sales of around $1.3 billion USD. The retail brokerage Robinhood was also recently valuated at $5.6 billion USD. While the industry is already packed with leading initiatives, the entrance of E*Trade into the cryptocurrency trading space should help further legitimize cryptocurrencies as an investable asset class.

Read the full article here.


3iQ Global Cryptoasset Fund: Price as at April 26, 2019

3iQ is the first regulator approved multi-cryptoasset portfolio manager in Canada, providing accredited investors with exposure to bitcoin, ether, and litecoin through its 3iQ Global Cryptoasset Fund.


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Disclosure
This Weekly Cryptoasset Newsletter is for informational purposes only and does not constitute, either explicitly or implicitly, any provision of services or products by 3iQ Corp (“3iQ”). Investors should determine for themselves whether a particular service or product is suitable for their investment needs or should seek such professional advice for their particular situation.3iQ Corp. makes no representation or warranty to any investor regarding the legality of any investment, the income or tax consequences, or the suitability of an investment for such investor. All content is original and has been researched and produced by 3iQ unless otherwise stated therein. No part of the content may be reproduced in any form, or referred to in any other publication, without the express written permission of 3iQ. All statements made regarding companies, securities or other financial information contained in the content or articles relating to 3iQ are strictly beliefs and points of view held by 3iQ and are not endorsements of any company or security or recommendations to buy or sell any security. No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. By visiting and/or otherwise using the 3iQ website in any way, you indicate that you understand and accept the terms of use as set forth on the website and agree to be bound by them. If you do not agree to the terms of use of the website, please do no access the website or any pages thereof. Any descriptions of, references to, or links to other products, publications or services does not constitute an endorsement, authorization, sponsorship by or affiliation with 3iQ with respect to any linked site or its sponsor, unless expressly stated by 3iQ. Any such information, products or sites have not necessarily been reviewed by 3iQ and are provided or maintained by third parties over whom 3iQ exercises no control. 3iQ expressly disclaims any responsibility for the content, the accuracy of the information, and/or quality of products or services provided by or advertised on these third-party sites. The information contained herein, while obtained from sources believed to be reliable, is not guaranteed as to its accuracy or completeness and confers no right on purchasers. Past performance of cryptoassets is not indicative of future performance and should not be used to forecast any return that an investor may realize.

2019-05-05T01:23:15-04:00 April 28th, 2019|