June 25 – July 1, 2018 | OSC, Bitcoin ETFs & More Crypto News

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


Ontario Securities Commission Releases Cryptoasset Research Report

June 28, 2018 – The Ontario Securities Commission (OSC) has released a detailed report which analyzes data on the current financial consumer understanding of the cryptoasset market. Additionally, the report delves into the attitudes and behaviors seen from cryptoasset owners and provides overviews to the entire cryptoasset market from Canadian regulatory standpoints. The data was gathered through a survey that was conducted on over 2,500 Ontario residents back in March 2018 by Innovative Research Group Inc.

3iQ sees this research report as a useful tool for Canadian investment advisors who, whether new or experienced in thecryptoasset market, are looking for a better understanding on current regulations surrounding cryptoassets in Canada, as it cites recent efforts and decisions from the Canadian Securities Administrators (CSA).

Read the full research report here.


Bitcoin and Ether Surge Over 10% on Friday

June 30, 2018 – Major cryptocurrencies bitcoin and ether traded sharply higher on Friday night, adding fuel to the approximate $26 billion USD increase in market capitalization added to the crypto market. Both bitcoin and ether saw over 10% increases in the late Friday session on increasing volume from the previous trading day. Past daily trading volume had been around $3 billion USD for bitcoin, and ether at $1.2 billion; however, the Friday session saw an increase to $4.7 billion USD and $1.6 billion USD respectively. Arthur Hayes, the CEO of major cryptocurrency exchange BitMex, said last week that he still sees bitcoin hitting $50,000 USD this year.

Hayes emphasizes that this correction in bitcoin and the overall crypto market could differ from the correction in 2014, largelyin-part from the significant increase in the number of market players. “In 2013 to 2015, we went from $1,200 to $200. In 2015 to 2017, we went from $200 To $20,000. So, we’ve done these sort of moves before. I think the time span is going to shorten because you have many more people involved in the market, who have invested capital and resources to trade this asset class,” said Hayes.

Read the full article here.


Goldman Sachs-backed Circle Sees Booming Institutional Demand

June 25, 2018 – Despite the negative price performance of bitcoin back in May, the Goldman Sachs-backed crypto firm Circle reportedly saw a 30% increase in new institutional clients month over month. The company also noted that its institutional trading platform “Circle Trade” had 15 times the amount of transaction volume since last year. To meet this increasing demand, Circle is looking to utilize more automation on its trading platform in an effort to minimize human interaction when placing orders. The pivot is set to cater to clients who want access to high-frequency trades and block orders.

Jeremy Allaire, the CEO of Circle, says that recent feedback from family offices and venture capital firms suggests that the trading platform needs to be better equipped to handle large orders that their clients are used to in the equity market. “In May, which was a challenging month, we saw a sharp increase of unique new counter-parties,” said Allaire. “A lot of folks on the institutional side are on-boarding, and getting their ducks in the row.”

Read the full article here.


Introduction of Bitcoin ETFs Could Take Bitcoin Higher

June 25, 2018 – Michael Strutton, the CEO of IronWood, notes in a recent report that the introduction of ETFs to the cryptocurrency market could propel the price of bitcoin to $35,000 USD. Strutton believes that the approval of pending Bitcoin ETFs with the US Securities and Exchange Commission (SEC) could bring many new investors to the bitcoin market. Upon approval, millions of potential investors who use traditional brokerage accounts will have access to Bitcoin investments, potentially creating a surge in demand for the cryptocurrency. In addition, the approval of Bitcoin ETFs from regulatory bodies such as the SEC could spark more institutional interest in the industry.

Read the full article here.

Strutton analyzes the market by highlighting current bitcoin wallet users and their current investment holdings. By using publicly accessible bitcoin wallet information, Strutton can compare current bitcoin holders to the current size of broker-dealers and their total money managed. Interestingly, out of the 22 million current bitcoin wallets, only about half of them hold more than $6.50 USD worth of bitcoin. Assuming that the release of Bitcoin ETFs attracts just 20% of the available equities trading market of 122 million, there would be 24 million new bitcoin investors. “If ETFs add 24 million US investors and the upward momentum adds 14 million from the rest of the world, then that adds $84 billion and $336 billion, respectively, to the market cap. Over the past six months, Bitcoin’s market cap has swung from $326 to $110 billion. Adding $420 billion to the market cap could put the Bitcoin price range from $26,000 to $44,000,” said Strutton.

Read the analysis here.


Facebook Reverses Ban on Cryptocurrency Ads

June 26, 2018 – Facebook has reportedly reversed its ban on cryptocurrency-related advertisements. The company now offers a preapproval request form specifically designed for companies looking to advertise cryptocurrencies. The form requires advertisers to select their type of cryptocurrency advertisement: “Cryptocurrency products and services”, “Education on cryptocurrency”, “Cryptocurrency industry news”, and “Other content related to cryptocurrency products and services”. Notably following the “Cryptocurrency products and services” option, the company reminds advertisers that they still cannot promote ICOs. Facebook had previously banned all crypto-related ads back in January.

Advertising remains a primary revenue generator for Facebook, and it’s no surprise that the allure of cryptocurrencies to its users can bring in more advertisers. By preventing the promotion of ICOs, the company can protect its users from potentially getting scammed – all whilst generating revenue from legitimate cryptocurrency businesses like news agencies or exchanges.

Read the full article here.


3iQ Global Cryptoasset Fund: Price as at June 29, 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.


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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.

2018-07-01T17:48:50-04:00 July 1st, 2018|