3iQ Research Group consolidates the top five cryptoasset stories of interest
to investment advisors and our investors.
The First Public Hearing Between 3iQ Corp and the OSC Scheduled for Monday, June 3 at 10:00 EST
June 2 (3iQ Corp) – The first opening statements will be made by 3iQ Corp. and the Ontario Securities Commission (OSC) on Monday, June 3rd at 10:00AM EST. The public hearing will be held in the OSC offices in Toronto at 20 Queen Street West, 22nd Floor. Come support 3iQ Corp. at its public hearing and learn why a regulated bitcoin fund is in the public interest.
Bitcoin Propels to $9,000 USD in Best-Performing Month
May 26 – Despite pullbacks in US equity indexes this past month, the price of bitcoin propelled itself to the $9000 USD level to post its best performing month since 2017. Strong headlines relating to new entrances by mainstream firms engaging with cryptoassets and blockchain could be reasons why the bitcoin price continues to edge higher. Additionally, the entrance of new institutional investors who are building their own cryptocurrencies or backing crypto-related projects could help spur adoption of digital assets such as bitcoin. “It takes two to tango. The more merchants that accept crypto encourages more people to adopt it and use it,” said David Tawil, the president of ProChain Capital, a crypto hedge fund. “That’s major.”
Read the full article from Bloomberg here.
“Firm Size” Wallets Have Been Accumulating Bitcoin
May 28 – New research from the crypto market analysis firm, Diar, has indicated that “firm size” wallet addresses have been accumulating bitcoin. Diar classifies firm size wallet addresses as those that hold between 1,000 and 10,000 bitcoins. Over the last 9 months, firm size wallet addresses have seen net increases of 450,000 bitcoins. Retail size wallets, which Diar classifies as those that hold between 0 and 100 bitcoins, have also seen steady increases over the same time period, netting a 126,000 increase in bitcoins held. Retail size wallets now hold 38% of the circulating supply of bitcoin. Only “exchange/large” size wallets saw decreases over the last 9 months. Exchange/large wallets used to hold around 20% of the circulating supply of bitcoin, whereas today it is just 16%. “With trading volumes hitting new highs this year, recent surges in prices could have added to the effect in part been due to the now restrained supply on exchanges as far as on-chain data can tell,” said the report.
Read the full report from Diar here.
Fake Trading Volumes by Exchanges Don’t Affect Bitcoin Prices
May 24 – Bitwise Asset Management has released a new paper which claims that the fake trading volumes reported by many unregulated crypto exchanges do not impact the price of bitcoin. Back in March, Bitwise Asset Management submitted a comprehensive research report to the U.S. Securities and Exchange Commission (SEC) on the bitcoin market and the cryptoasset’s potential to support an exchange traded fund. The report was widely disseminated through both the digital asset and financial communities as it discovered that around 95% of spot bitcoin trading volumes reported by exchanges were fake. This new report delves further into the matter of fake spot trading volumes and how they have little impact on the price discovery of bitcoin. The report notes that effective arbitrage systems, which are currently in place on regulated crypto exchanges today, help keep accurate crypto prices across exchanges by eliminating pricing discrepancies within “seconds”.
Read the full report from Bitwise Asset Management here.
Digital Racecar Sells for Over $100,000 USD Worth of Ether
May 28 – A user named “09E282” has reportedly paid $113,000 USD worth of ether for a virtual race car. Data from Etherscan notes that the winning bid occurred on May 27, 2019 against 15 other bidders and 40 total competing bids. What is interesting about this transaction is that the blockchain-based game, F1 Delta Time, has yet to be released. F1 Delta Time has the official seal of approval from the company that controls the real-world Formula 1 races. Other digital items, such as in-game “skins” for games such as Counter Strike: Global Offensive and DOTA2 can go for thousands of dollars, depending on their rarity. The willingness for some buyers to pay thousands of dollars for digital items could help shed light on the strength of the retail buy-side for more fungible and usable digital assets such as bitcoin or ether.
Read the full article from Coindesk here.
3iQ Global Cryptoasset Fund: Price as at May 31, 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.