October 22 – 28, 2018 | Bank of Canada, Bitcoin Volatility & More Crypto News

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


3iQ Rings TSX Opening Bell, Lists Cryptoasset Fund on NAVex

October 24 – 3iQ Corp joined Jeff Foster, the Head of Global Business Development of Equities Trading at TMX Group, to open the market to celebrate the posting of the first cryptoasset mutual fund on the TSX NAVex™ platform: the 3iQ Global Cryptoasset Fund (TiQGC).

TSX NAVex™ is a mutual fund platform accessed through Toronto Stock Exchange that streamlines the distribution and bulk trading of a wide range of fund products. NAVex will allow Accredited Canadian Investors and Portfolio Managers to efficiently access uncorrelated assets of cryptocurrencies being managed by 3iQ Corp., a regulated Investment Fund Manager in Canada. The RRSP and TFSA eligible fund provides investors security, consultancy and trading expertise and access to daily liquidity of cryptocurrencies. NAVex gives Portfolio Managers the ability to make multiple purchases at the same time, on the same ticket, considerably simplifying the existing process.

“We are proud to launch our Global Cryptoasset Fund on TSX NAVex, which will give investors and their advisors daily liquidity and considerably easier access to the first fund in Canada to invest directly in multiple cryptocurrencies,” said 3iQ Corp. President and CEO Fred Pye. “We are witnessing digital assets becoming more mainstream. The diversification characteristics of cryptoassets, along with strict regulatory compliance, offer this new asset class a place in most investment portfolios. We look forward to working with TSX NAVex to continue providing the most secure regulated platform available for Canadian investors to gain cryptoasset exposure.”

Read the full article here.


Bank of Canada and TMX Group Prove That Blockchain and DLT
Could Clear and Settle Stocks

October 22 – The Bank of Canada and stock exchange operator TMX Group Ltd. have proven that blockchain and distributed ledger technology (DLT) can be used to clear and settle stocks. The two joined forces for a research initiative, “Project Jasper”. The project involved building and testing a system that could be integrated directly into the existing market infrastructure. Both cash and securities were put on the distributed ledger through the issuance of digital depository receipts provided by the Canadian Depository for Securities (CDS) and the Bank of Canada. This allowed participants to settle simulated securities against the simulated central bank cash on the distributed ledger. The test was successful and proved that it is possible to deliver payments by swapping cash from buyers to sellers on the distributed ledger.

Canada now joins a number of other countries around the world that have been experimenting with DLT and market infrastructures.  Last December, Australia’s main stock exchange ASX Ltd. said that it planned to move to blockchain to process equity transactions. “DLT is a promising technology that has the potential to reduce costs for participants and open new opportunities,” said Scott Hendry, the senior special director of financial technology  at the Bank of Canada. “Work remains to be done to determine how it can be set up to maximize the benefits for the whole financial system.”

Read the full article here.


Bitcoin is “Quiet” and Could be Signalling a Bottom

October 24 – The price action of bitcoin has been quiet this past month, and that has some analysts wondering if it may be indicating a bottom. So far this month, the price of bitcoin only had one daily move that exceeded 5% or more – a sharp contrast to the months of January and February, which both recorded 9 days. This decline in volatility may be “a sign of speculation leaving the market and eventually a bottoming process,” said Mike McGlone, a Bloomberg Intelligence analyst. “High volatility is a major factor lessening most cryptocurrency use cases for anything other than speculation.”

“It simply means the market is calm and in balance. That implies that speculative interest is low,” said Charlie Morris, the head of multi-assets at Atlantic House Fund Management. “Given this bear market is now 10 months old and is getting tired, I’d be inclined to be bullish for the next major move.” Another participant in the blockchain industry noted that the decline in volatility has weeded-out emotional traders. “The current Bitcoin market is relatively stable,” said Danial Daychopan, the CEO of Plutus. “The cost of the emotional traders has been washed away  by the recent crash, and with it a lot of the volatility.”

Read the full article here.


Major Crypto Firms Coinbase and Circle Form Joint Venture to Boost Stablecoin Adoption

October 23 – Two of the largest companies in crypto, Coinbase and Circle, are teaming up through a new joint-venture known as the “CENTRE Consortium”. The companies say that the new joint-venture will help speed up the adoption of cryptocurrencies that are backed by government currencies, such as the US dollar. “Coinbase and Circle share a common vision of an open global financial system built on crypto rails and blockchain infrastructure, and realizing this vision requires industry leaders to collaborate to build interoperable protocols and standards,” said the co-founders of Circle, Jeremy Allaire and Sean Neville.

Back in May, Circle launched its own US dollar-backed “stablecoin”. The coin, dubbed the “USD Coin”, will now trade on Coinbase’s cryptocurrency exchange. The introduction of a stablecoin to Coinbase’s exchange will allow users to sell their cryptocurrencies for a less-volatile alternative. This is the first time that Coinbase has introduced a stablecoin to their exchange. “We see USDC as a major step towards a more open financial system. The advantage of a blockchain-based digital dollar – like USDC – is that it is easier to program, send, use in apps, and store locally than traditional US dollars,” said Coinbase in a blog post.

Read the full article here.


Tech Stocks are the “New Bitcoin” With This Volatility

October 26 – The past few weeks have been volatile for global equities markets. Despite the notion that bitcoin remains a volatility leader, many major technology stocks are gaining ground. According to Bloomberg data, the spread between the 10-day volatility of the NYSE FANG+ Index and bitcoin has set a new record high of 46 percentage points. The NYSE FANG+ Index includes many leading technology companies such as Facebook, Amazon, and Alibaba.

“Volatility is coming into the traditional markets and when things correct, it’s going to be the outperformers like tech which are the most volatile,” said Timothy Tam, the co-founder and CEO of the cryptocurrency research firm CoinFi. In comparison, the price of bitcoin has been rangebound and stable around the $6400 USD mark for a number of weeks. The 10-day volatility of bitcoin has not been this low since October 2016, when it was trading under $1000 USD.

Read the full article here.


3iQ Global Cryptoasset Fund: Price as at October 26, 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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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.

2019-08-06T19:51:38-04:00 October 29th, 2018|