3iQ’s Top 5 Digital Asset Stories of the Week
May 7 – May 13, 2020
JPMorgan Provides Banking Services for Gemini and Coinbase
Bloomberg | May 12, 2020
This Tuesday, JPMorgan signed-on its first ever cryptocurrency exchange customers, Gemini and Coinbase. According to sources familiar with the matter, the decision to approve banking accounts for the two firms at JPMorgan largely stemmed from the fact that both exchanges are regulated in the United States. Until now, most cryptocurrency exchanges relied on smaller, more crypto-friendly banking partners such as Silvergate Bank.
Le premier fonds de bitcoins en Bourse est l’affaire d’un Montréalais
La Presse | May 12, 2020
Un gestionnaire de portefeuille montréalais vient de lancer le premier fonds consacré au bitcoin inscrit dans une grande Bourse. Une première mondiale, lance Frederick Pye. Connu dans le secteur financier pour sa créativité et son audace, ce résidant de Pointe-Claire a cru au projet pour plusieurs raisons.
Paul Tudor Jones Holds Almost 2% of Net Assets in Bitcoin
CNBC | May 11, 2020
Last week, the legendary hedge fund manager Paul Tudor Jones revealed that he holds bitcoin as a part of his portfolio. According to Jones, Wall Street could be witnessing the historic “birthing of a store of value” in bitcoin. In a recent update, Jones admitted that he holds almost 2% of his total assets in bitcoin. “Every day that goes by that bitcoin survives, the trust in it will go up,” said Jones. “When I think of bitcoin, look at it as one tiny part of a portfolio. It may end up being the best performer of all of them, I kind of think it might be.” Jones later defended this allocation decision. “But I’m very conservative. I’m going to keep a tiny percent of my assets in it and that’s it. It has not stood the test of time, for instance, the way gold has.”
PwC Report: Total AUM of Crypto Hedge Funds Doubles to Over $2 Billion USD in 2019
The Block | May 11, 2020
According to a new report by PwC and Elwood Asset Management, the total assets under management (AUM) of crypto-related hedge funds doubled in 2019 to over $2 billion USD. Unsurprisingly, bitcoin was the most traded cryptoasset among the surveyed hedge funds. Family offices were the most common type of institution to invest in crypto-related hedge funds at 48%. “The changes the crypto hedge fund industry has seen in the past 12 months, from additional regulatory clarity to the accelerated implementation of best practices, are great examples of how fast the industry is becoming increasingly institutionalized,” said Henri Arslanian, the global crypto leader at PwC.
Total Stablecoin Value Surpasses $10 Billion USD as Traders Demand Dollars
Coindesk | May 12, 2020
The total value of all stablecoins in circulation just surpassed $10 billion USD as demand for dollar-pegged cryptoassets continues to rise. Over the last two months, the total value of stablecoins outstanding increased approximately 70%. Reportedly, most of the stablecoin growth has come from Tether, which accounts for 90% of the total value of stablecoins in circulation. “Stablecoins have always had an edge over bitcoin as a base trading pair because of its inherent price stability,” said Aditya Das, a cryptocurrency markets analyst at Brave New Coin. “Stability means traders feel safer holding a stock of it and using it as a liquidity tool for trading.”