3iQ Research Group consolidates the top five cryptoasset stories of interest
to investment advisors and our investors.
Investors are Going to Buy Bitcoin, Whether Advisors Like it or Not
May 16, 2018 – Investors continue to be eager to enter the cryptocurrency market, despite hesitation from the investment advisor community. Many advisors are still receiving questions from clients about cryptocurrency investments, but unfortunately cannot provide advice due to lack of knowledge on this growing market. Some major financial firms, like Merrill Lynch, have completely banned bitcoin buying across the entire firm, while some firms are taking a more proactive approach, such as Goldman Sachs and their introduction of bitcoin trading desks this year.
Lex Sokolin, the Global Director of Fintech Strategy at Autonomous Research, thinks that advisors who turn a blind-eye to cryptocurrencies as investable opportunities may be making a big mistake. He believes advisors need to take the time to brush up on subjects within cryptocurrencies and the blockchain so they can address client questions properly. “Advisors really need to start to understand the basics of how blockchain works,” he said. “Start to understand why there are different cryptocurrencies.” He delves into the topic further by saying “all of these things are different, so advisors have to spend the time so they can actually help their clients make sense of this.”
Read the full article here.
3iQ is proud to work with Canadian advisors who have taken the time to be more knowledgeable in the blockchain and cryptoasset space, and those who are looking to improve their knowledge for the benefit of their clients. 3iQ offers “roundtable” education sessions to advisors to improve the understanding of blockchain basics and cryptoasset networks, as well as investment rationale for this asset class.
For more information, call or email us using our contact information here.
3iQ Research Group produces original cryptoasset research, from coin profiles to the latest developments in crypto technology:
How Canada Taxes Bitcoin and Other Cryptocurrencies
Recap – Chief taxation officer at Northwood Family Office, Lorn Kutner, addressed the Canadian tax implications for cryptocurrencies on BNN Bloomberg from several perspectives. He notes that the government has said that cryptocurrencies and bitcoin are not seen by them as “currencies”, and should be treated just like stocks on your tax returns. If an investor sold cryptocurrency, they would be obligated to report this on their tax return as a disposition of the bitcoin position in CAD at the time in comparison to their acquisition price in CAD. Whether it is a capital gain or loss, it will be treated as such, just like with stocks. Just like capital gains taxes, they can be carried back three years. However, cryptocurrency traders who buy and sell with regularity, would have to report any gains to an income account, and any losses would be fully deducted against all sources of income, unlike capital gains.
From a transactional standpoint, if a contractor would take bitcoin as a payment, that would be recognized as income for the contractor, and they would have to report and remit applicable taxes on it. If you pay a contractor in bitcoin, you would have to report what you bought it at versus what it was disposed of. For businesses who accept bitcoin, those business receipts are business income.
Watch the full video here.
Compiled News From Consensus 2018
May 16, 2018 – Now that the biggest cryptocurrency and blockchain event Consensus 2018 has wrapped up, Coinlive.io has provided a full timeline of what you may have missed from the event. The interactive timeline contains the developments that happened during the event, including press releases, articles, and the time of the release.
The emergence of cryptocurrencies and blockchain has brought forth a slew of new media outlets that cover this growing industry. Coinlive.io is a live feed that compiles news in the industry from a wide range of disseminators for investment advisors and investors alike.
View the full news feed here.
Twitter/Square CEO Jack Dorsey Re-Iterates Bullish Stance on Bitcoin
May 16, 2018 – Outspoken Twitter/Square CEO Jack Dorsey has continued to express optimism on bitcoin becoming the leading payment method across the internet. He believes that “the internet deserves a native currency” and bitcoin will be a legitimate means of global payment. His payment processing company, Square, has been on a tear this year, with the price of the stock near its all-time highs. Back in February, the company announced it will allow almost all of its users to buy and sell bitcoin through its Cash App.
Not everybody at Square believes the early move into cryptocurrencies was a good idea. Dorsey said that “this was a pretty contentious move in the company,” and there are still fights and debates over the topic, including resistance from some of the company’s directors. “The world ultimately will have a single currency; the Internet will have a single currency. I personally believe that it will be Bitcoin,” said Dorsey.
Read the full article here.
Goldman-backed Circle Raises $110 Million, Plans USD-Backed Coin
May 16, 2018 – Goldman-Sachs backed firm Circle announced it has raised $110 million USD in a series E funding round which was led by the Chinese firm, Bitmain Technologies. Circle is now one of the largest cryptocurrency firms in the world, joining Coinbase as leaders in the space. Circle’s funding round will in part be used to issue a US Dollar-backed cryptocurrency labeled “USD-C”.
The new “USD-C” cryptocurrency will be based on the existing Ethereum network, which is the most popular choice amongst new developers. The efforts to release a US Dollar-backed cryptocurrency arose from the need to create a cryptocurrency that is supported by a stable asset class. Circle recently acquired one of the largest cryptocurrency exchanges, Poloniex, earlier this year. The company plans to release several new services, such as Circle Invest, Circle Trade, and Circle Pay.
Read the full article here.
3iQ Global Cryptoasset Fund: Price as at May 18, 2018
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.