Category: Investing

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Bitcoin Crypto News Cryptocurrencies Investing Markets

Legendary Billionaire Investor Finally Buys BTC, Admitting It Has ‘Crossed the Chasm to Mainstream’

“It’s more than an inflation hedge” – this is how Soros Fund CEO Dawn Fitzpatrick recently referred to bitcoin, adding that the cryptocurrency market has “crossed the chasm to mainstream”.

In a recent interview with Bloomberg, Fitzpatrick – who’s also the chief investment officer of Soros Fund, a private US investment firm with over US$6 billion in assets under management – discussed the current state of the stock market, Chinese companies in the US, and bitcoin, stating that her company is exploring crypto beyond the inflation hedge narrative.

Bitcoin Has Surpassed the ‘Inflation Hedge’ Narrative

While other institutional investors and billionaires have satanised bitcoin and cryptocurrencies in general – among them Warren Buffet’s right hand man, Charlie Munger – Fitzpatrick points to how the crypto market now has over US$2.3 trillion in market cap and 220 million users globally. To reinforce her point, the number of active crypto addresses reached the 50 million mark two weeks ago.

A ‘Market Crash’ is Getting Closer

During the Bloomberg interview, Fitzpatrick was asked what her fund’s current market strategy was against hyperinflation. She said that a market crash was nearing, and that high inflation combined with low interest rates have pushed the fund to stockpile cash by borrowing against various securities.

I think we’ve all been surprised at how long [high inflation] feels like it’s going to last now.

Dawn Fitzpatrick, CEO and CIO, Soros Fund

Fitzpatrick’s statements echo the words of billionaire Marc Lasry when in June he lamented not buying enough bitcoin. “As more and more people start using bitcoin, it’s going to keep going up. It’s happened a lot quicker than I thought it would. I should have bought a lot more. That was my mistake,” Lasry said.

Other billionaire investors such as the outspoken Chamath Palihapitiya consider that bitcoin has “effectively replaced gold”, as he said earlier this month, and would continue to do so as the cryptocurrency market cap grows.

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Crypto Art Crypto News Investing NFTs

The Future of Music? Fans Can Now Invest in Music NFTs and Share in the Royalties

Financial services company Republic has announced the launch of “Republic Music”, an investment product that claims to offer “an entirely new way to create, produce and share royalties from music”.

Not to be confused with Republic Records, a New York-based label owned by Universal, Republic Music has partnered with crypto company Opulous to give fans the chance to “invest in the music they love for as little as US$100 and share in the rights to royalties”.

The idea is based on S-NFTs, or Security NFTs. The cryptosphere likes to argue that NFTs are not securities as such, as in the US they are subject to regulation by the Securities and Exchange Commission (SEC). But Republic views S-NFTs as a kind of security that can be invested in with the expectation of future profit.

The songs are going to be placed in an LLC, and you will be a member of the LLC. You will have a share of ownership in that song, and a right to the royalty on the back end.

Pialy Aditya, chief strategy officer, Republic

S-NFTs are overseen by the SEC and the Financial Industry Regulatory Authority (FINRA), the finance industry’s self-regulatory body. Thus US-based investors will have to comply with relevant know-your-customer (KYC) and anti-money laundering (AML) regulations to be able to get a piece of the action.

This hinges on Regulation Crowdfunding (Reg CF), which allows private companies to raise up to US$5 million from non-accredited investors.

Rapper Lil Pump Rides Republic’s First Wave

According to a Republic press release, “As part of the first wave of planned releases, [US rapper] Lil Pump is offering fans and investors the opportunity to be part of his forthcoming single Mona Lisa (feat. Soulja Boy), produced by Jimmy Duval.”

Rapper Lil Pump, first cat off the Republic rank. Source: vulture.com

Republic considers its music platform a “vertical” of its primary investment business, and is planning several other verticals geared toward fractional investments in different aspects of the creator economy.

In the new world order, early supporters are going to be rewarded, the artists are going to get paid and the community is going to grow stronger.

Pialy Aditya, chief strategy officer, Republic

More than six months ago, Crypto News Australia reported how some artists were considering directly offering their music in the form of tokenised products sold on DeFi marketplaces, rather than having it handled by traditional third parties such as record companies. It’s taken this long to start to become a reality.

Earlier this month, TikTok announced its series of NFT collectibles in collaboration with celebrity partners including US rapper Lil Nas X, Canadian musician/producer Grimes and NFT entrepreneur Gary ‘Vee’ Vaynerchuk.

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Crypto Art Crypto News DeFi Investing NFTs

Think the NFT Market is Overheated? Now You Can Short It

Singapore-based decentralised derivatives exchange SynFutures is launching NFTures, a product that will allow users to short, or bet against, the future prices of non-fungible tokens (NFTs) such as CryptoPunks.

Holding NFTs and hoping their value increases so you can resell them for a profit is currently the only way you can make anything out of them. Many are questioning the value of NFTs, with the tokens serving no purpose besides being able to be bought or sold.

SynFutures is looking to change the way we derive profit from NFTs.

The Mania Continues

NFTs have realised immense growth in recent months, generating US$10.7 billion in trading volume during Q3, a staggering increase of 704 percent on the previous quarter. Projects like EtherRock, CryptoPunks, and Bored Ape Yacht Club have generated sales worth millions of dollars. Earlier this month, internet personality and investor Gary “Gary Vee” Vaynerchuk sold a handful of NFT doodles worth more than pieces from famous artists such as Andy Warhol and Jackson Pollock.

SynFutures is getting on the NFT train with NFTures, a product targeted toward retail investors. It uses a similar user interface to dating app Tinder in an effort to streamline the trading process, while at the same time bringing game-like elements and leverage to NFT markets.

NFTures is a decentralised protocol based on SynFutures’ existing synthetic automatic market maker (sAMM) model to match its competitors.

NFTures user interface. Source: SynFutures

Allowing Users to Maximise Profits

Rachel Lin, CEO and co-founder of SynFutures, said of the new venture:

Every healthy financial market needs a way for participants to take both sides of the market, and NFTs are no exception … By providing a way for users to take long or short positions in NFTs, we’re enabling more robust trading strategies that allow users to maximise profit opportunities while hedging risk and exposure.

Rachel Lin, CEO and co-founder, SynFutures

The company explained further in a statement that: “Those who wanted to speculate on downward trends had to bet against entire markets, shorting the native tokens of NFT-centric products like Axie Infinity ($AXS) and SupeRare ($RARE).

“With NFTures, SynFutures has created an intuitive platform for traders to long or short specific NFTs at any time and take advantage of better price discovery.”

The Risk Remains as NFT Market Continues to Grow

NFTures’ contracts are based on spot price oracles from decentralised exchanges such as SushiSwap and Uniswap, along with NFT fractionalisation protocols including Fractional and Unic.ly.

As with traditional futures markets, the spot and futures prices converge on a set periodic schedule.

Risks of oracle price manipulation remain a concern for many as the budding NFT market continues to grow in size and liquidity. Product designer and Coinbase investor Bobby Goodlatte took to Twitter to provide his take on the future of NFTs:

Albeit with some concerns, NFTures highlights the renewed interest in NFT-related DeFi projects, including the tokenisation of physical assets and NFT-backed collateralised lending. As the popularity of DeFi increases, investors are looking to seize niche markets within the industry.

Earlier this year, SynFutures raised US$14 million in a Series A funding round led by Polychain Capital. Investors included Pantera Capital, Bybit, Framework Ventures, Kronos, and IOSG Ventures. SynFutures indicated that it aims to focus its entire platform on derivatives and wants to eliminate the barriers to entry to the derivatives market.

Lin has stated that SynFutures’ overall goal is to “democratise the futures market”, and added:

We’re aiming to level the playing field for the average investor by cultivating a free and open market for derivatives trading.

Lauren Stephanian of Pantera Capital also said:

NFT-specific derivatives products will add more depth to the nascent NFT market, just as options and futures contracts play an important role in established financial markets.

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Australia Blockchain Crypto News Investing

Senator Bragg Tells Blockchain Body: ‘Australia’s Digital Asset Plan is Coming’

Speaking at this year’s NFT Fest, NSW Senator Andrew Bragg said that Australia’s digital asset plan could be enacted in 2022, bringing crypto-related legislation to benefit the local industry and put Australia at “the front end of the digital asset society”.

The NFT Fest gathered dozens of speakers from the crypto and blockchain space last week to speak about some of the industry’s trending topics. Senator Bragg was among the participants, and he talked about the current national regulatory climate for crypto companies.

According to Bragg, the Senate Select Committee will publish its report to include regulatory recommendations, mainly about consumer protection and driving investment into Australia, by the end of this month.

Bragg is one of the few crypto-friendly politicians in Australia, and a firm believer that proper crypto regulation could boost investment and jobs in the country. As the market and technology develop in parallel at a faster rate, he says it’s time for Australia to do proper research and implement a robust regulatory framework for market participants.

It is clear from our investigations that we need a robust policy framework for digital assets, guided by three objectives: consumer protection, investor promotion, and market competition.

Senator Andrew Bragg

Net Zero Emissions and TradFi

Bragg pointed out the fact that digital assets have a bad reputation in Canberra partly because traditional financial institutions are undermining crypto.

He also backed his plans to run the crypto space on renewable energy as part of the government’s repositioned goal of achieving net zero carbon emissions.

Senator Bragg closed his speech by pointing out the dangers posed by the tech giants, prompting the implementation of a regulatory framework to counter their power over society in what he calls “a battle for the ages”.

Big tech has way too much power over our society. They’re not Australian companies. We don’t want them to run the world … Let’s implement a new regulatory framework over the next 12-18 months… Our battle against big tech is a battle of the ages.

Senator Andrew Bragg
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Australia Bitcoin Crypto Exchange Crypto News Investing Tokens

Important Crypto ETF Decision Dates Coming Up in Late 2021

As worldwide interest grows in crypto, the need for exchange-traded funds (ETFs) is growing along with it. Some countries and institutions have got on board, filed, and have been approved, while the decision for others still looms.

What Is a Cryptocurrency ETF?

A crypto ETF is a fund consisting of cryptocurrencies. While most ETFs track an index or basket of assets, a crypto ETF tracks the price of one or more digital tokens. The price fluctuates daily based on investor sales and purchases, and provides many benefits to investors. These include significantly lower crypto ownership costs and outsourcing of the steep learning curve associated with trading cryptos. 

For the crypto enthusiast, ETFs are the holy grail that will boost liquidity and the adoption of cryptocurrencies for the purpose of investment.

Crypto ETFs are trading in a number of countries, but thus far US regulation has denied attempts to offer ETFs on exchanges. Many companies who have applied to the Securities and Exchange Commission are expecting to hear the outcome later this year.

ETF Timeline – Important Dates Source: Arcane Research
ETF Timeline Source: Arcane Research

Interest in ETFs is Growing

Entering the crypto market can be challenging, with concerns including price volatility, market manipulation, and lack of fundamentals to properly gauge value. ETFs offer an easier way to access the cryptosphere. Instead of trading cryptos on an exchange, ETFs trade on market exchanges such as the NASDAQ or NYSE, thereby circumventing the often daunting process of purchasing cryptos.

Crypto News Australia recently reported on a survey conducted regarding institutional interest in digital assets and crypto-based products such as ETFs across the US, Europe and Asia. It was found that over half were already invested in cryptos, while nine in 10 found crypto appealing and saw the potential upside.

Bitcoin-ETFs Rising Globally

Canada, the first country in the world to offer ETFs, launched a third Bitcoin-ETF earlier this year with the world’s lowest management fee, at only 0.4 percent per annum. Dubai has become the first city-state in the Middle East to offer ETFs and has launched a Bitcoin-ETF which is listed on the Nasdaq Dubai Exchange.

It is expected that Australia will see its first crypto ETF soon, as there is growing sentiment among millennials to retire at the age of 50 via investment in ETFs.

Earlier this year it was reported that the Australian crypto ETF could launch on the ASX in 2021. The Aussie ETF is currently delayed due to uncertainty in deciding how the arrangement with custodians will work. The Australian Securities and Investments Commission is, however, in the final stages of consultation to decide if a crypto ETF will be allowed to trade locally.

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Bitcoin Crypto News Investing

JPMorgan CEO Still Doesn’t Like Bitcoin But Admits it May 10x Within 5 Years

Jamie Dimon, JPMorgan’s headstrong CEO, is well known to be a Bitcoin sceptic. His latest pronouncement, however, may be his most positive yet. According to a recent interview, he now believes that the blue chip digital asset could grow by up to 10 times within the next five years.

A Trip Down Memory Lane

With a market cap of around US$465 billion, JPMorgan is the world’s largest investment bank. When the chief executive speaks, financial markets listen. So what has he historically had to say about Bitcoin?

In 2017, Dimon did not mince his words when asked about what he would do if JPMorgan traders started trading bitcoin:

I’d fire them in a second. For two reasons: It’s against our rules, and they’re stupid. And both are dangerous.

Jamie Dimon, CEO, JPMorgan

He went further to say that it “won’t end well” and famously declared: “It’s a fraud … and worse than tulip bulbs.”

I couldn’t care less what bitcoin trades for, how it trades, why it trades, who trades it, if you’re stupid enough to buy you’ll pay the price for it one day. I’ve also told people it could trade at $100,000 before it trades to zero. Tulip bulbs traded for $75,000 or something like that … the only value in bitcoin is what the other guy will pay for it.

Jamie Dimon, CEO, JPMorgan
Bitcoin vs other bubbles. Source: Coindesk

The following year, Dimon expressed regret about calling it a fraud but remained sceptical that it could exist without state oversight. He claimed that he saw value in blockchain but that bitcoin had extremely limited use, save for rogue nations or criminals.

JPMorgan Embraces Bitcoin

Fast-forward to 2021 and the banking giant appears to have made some significant internal policy changes.

In January, one of the bank’s analysts appeared to embrace the “digital gold thesis”, saying that bitcoin could in the long run be valued at US$146,000. Later, the bank noted that retail traders outbid institutions in Q1 of 2021.

In July, it was announced that JPMorgan would be granting its wealth management clients access to cryptocurrency funds, becoming the first major US bank to do so. And just last month, it was revealed that it had launched an in-house Bitcoin fund for private bank clients in partnership with NYDIG.

Much of these changes no doubt are driven by demand from clients who could just as easily shift their allegiance to a more bitcoin-friendly bank. In the end, despite any personal misgivings, Dimon appears to have conceded that bitcoin is here to stay, for better or worse, and his company may as well make hay while the sun shines.

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Bitcoin Crypto News Investing Tokens Trading

Office Hamster Beats the S&P 500 by Trading Crypto Tokens

Crypto trading hamster Mr Goxx has been outperforming the S&P 500 since June, using a device called the “Goxx Box” to give signals and make purchases during a live stream on Twitch to an audience that follows him.

Mr Goxx, based in Germany, has been independently trading a portfolio of cryptos that has so far seen the rodent outperform Warren Buffett’s Berkshire Hathaway, the Nasdaq 100, Bitcoin, and the S&P 500.

The S&P Dow Jones recently launched a range of new crypto-focused indices, strengthening its position in the crypto world.

Mr Goxx trades according to a system built on an infrastructure called the “Goxx Box”, which allows him to choose a cryptocurrency and send signals to traders.

How the Goxx Box Works

Mr Goxx’s human caretaker designed a system that uses a hamster “intentional” wheel to choose one of about 30 cryptos to trade, and two tubes – or “decision tunnels” – the critter crawls through to indicate whether the selected crypto should be bought or sold.

The “Goxx Box”. Source: Twitter/@Mrgoxx

Mr Goxx vs The Market

The current top cryptos held by the hamster include Tron, Ripple’s XRP, Cardano’s ADA, and Ether. Since Mr Goxx started trading in June, he has grown his portfolio nearly 24 percent. His portfolio was funded with the euro equivalent of US$390 and his anonymous caretaker and business partner has explained that the trades Mr Goxx makes are automatically set to 20 euro increments.

Since September 24, Mr Goxx has generated profits of 77 euros, and his portfolio hit a high of about US$580 in mid-September.

There are plans to give Mr Goxx more control and let him intentionally pick his ‘buy’ amount if the interest in his channel keeps growing.

Mr Goxx’s anonymous human caretaker

To get a better sense of how Mr Goxx operates, this performance review posted to YouTube should be of assistance:

It’s an Impressive Start But Be Wary

Given that Mr Goxx has only been trading since June, his performance is certainly impressive, although human traders should proceed with caution when taking investment advice and be aware that growing a crypto portfolio takes time.

In May this year, Crypto News Australia reported on one trader who has been at it for 10 years and shares the lessons he has learned along the way.

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Crypto News DeFi eToro Investing

eToro Launches Top DeFi Index to Help Customers ‘Spread the Risk’

Copy trading service eToro now offers investors an easy way to diversify their cryptocurrency holdings without having to spend hours on research by offering an out-of-the-box style top-performing DeFi portfolio.

The DeFi portfolio eToro has created includes 11 DeFi crypto assets including Ethereum (ETH), Uniswap (UNI), Chainlink (LINK), Aave (AAVE), Compound (COMP), Yearn.finance (YFI), Decentraland (MANA), Polygon (MATIC), Algorand (ALGO), Basic Attention Token (BAT), and Maker (MKR).

DeFi is one of the most talked-about innovations in finance, with thousands of new crypto assets emerging in recent months. But for people who don’t have the time to research every asset’s whitepaper, the market may seem like a minefield. By packaging up a selection of crypto assets in a DeFi CopyPortfolio, we’re doing the heavy lifting and enabling our customers to gain exposure and spread the risk across a variety of cryptos.

Dani Brinker, head of portfolio investments, eToro.com

eToro’s @DeFiPortfolio CopyPortfolio is available now for a minimum investment of US$1,000. Users can follow developments in the DeFi sector through eToro’s social network and also track their portfolio’s performance and keep up-to-date with access to charts and other tools.

Cryptocurrencies Available on eToro

Crypto News Australia recently reported the 29 new cryptos now available for trading on eToro Australia. They are: BTC, ETH, BCH, XRP, DASH, LTC, ETC, ADA, MIOTA, XML, EOS, NEO, TRX, ZEC, BNB, XTZ, MKR, COMP, LINK, UNI, YFI, DOGE, AAVE, ALGO, MANA, ENJ, BAT, MATIC, FLR and SHIB.

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Crypto News DeFi Investing Tokens

AVAX Skyrockets Amid $230 Million Investment

Avalanche (AVAX) has completed a US$230 million investment round from several crypto funds and angel investors, catapulting its native token, AVAX, to a fresh all-time high of US$64. 

AVAX Token Surges 23% Amid Tokens Private Sale

The investment round was led by crypto funds Polychain and Three Arrows Capital. R/Crypto Fund, Dragonfly CMS, Collab + Currency and Lvna Capital are among the top investors that participated in the private sale, according to an announcement by the Avalanche Foundation. As per its blog post, Avalanche will use the funds to expand its operation in the DeFi space and support DeFi projects by providing grants, liquidity and token purchases.

Avalanche has quickly turned promise and potential into real-world impact and value creation for DeFi users and developers. The community of builders rallying around the network is a testament to its competitive edge, and there is still so much potential yet to be tapped at the intersection of institutional and decentralised finance on Avalanche.

Emin Gün Sirer, director, Avalanche Foundation

Avalanche completed the investment round in June but disclosed this latest news on September 16. The announcement quickly boosted the AVAX token by 23 percent, now trading at US$64.11 with a 24-hour trading volume of US$2,156,526,602, according to data from CoinGecko.

Further data shows AVAX outperformed its top 20 competitors with a 65 percent gain last week, and is now sitting at 14th place in the crypto market.

Source: Coinmarketcap

AVAX Shows its Competitive Edge

Avalanche is a high-performance blockchain with an estimated rate of 4,500 TPS (Transactions per Second). It currently competes with other high-performance platforms like Solana to become the alternative solution for DeFi protocol developers.

Users can build fast, low-cost and solidity-compatible dApps, besides launching customised private and public blockchains.

Both platforms are challenging Ethereum as leader of the DeFi ecosystem. Several content creators are considering switching to Solana to showcase their NFTs as Ethereum gas fees increasingly present a hurdle for them.

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Institutions Investing Surveys

Report: 84% of Institutional Investors Interested in Crypto, ETF Needed

A survey of more than 1,000 institutional investors from across the US, Europe and Asia found that most believe digital assets have a place in a portfolio and were interested in crypto-based products such as ETFs. 

Respondents to the survey, conducted by Fidelity Digital Assets in early 2021, included financial advisers, high-net-worth investors, family offices, and professionals working for hedge funds, pension funds and venture capital firms.

Over half (52 percent) were already invested in digital assets (predominantly Bitcoin and Ethereum) and nearly nine in 10 said they found crypto appealing, especially in terms of its high potential upside. 

Key barriers to investment in crypto cited by investors include price volatility (54 percent), lack of fundamentals to gauge appropriate value (44 percent), and market manipulation (43 percent).

Key Findings of Institutional Investor Research

  • 70% of all investors surveyed had a neutral-to-positive perception of digital assets;
  • 84% of US and European investors, and 90% of Asian investors, said they’d be interested in institutional investment products that hold digital assets;
  • 62% of US investors expressed a neutral-to-positive view about a potential bitcoin ETF;
  • Nearly eight in 10 investors surveyed felt digital assets have a place in a portfolio; and
  • 43% of investors surveyed identified digital assets as part of the alternative asset class.

Regional Differences in Crypto Investment

The research provides insights into how digital asset adoption varies by region: 

For the second year in a row, the survey found that European investors have a more progressive view towards digital assets than Americans when comparing the responses across all categories. Even so, Asian investors, who we surveyed for the first time this past year, are by far the most accepting of digital assets, with more than 70 percent of investors surveyed currently invested in digital assets.

Jack Neureuter, Fidelity Digital Assets

Compared to previous surveys, more US investors said they’d bought digital assets through an investment product in 2021 while 30 percent of US respondents said they’d prefer to buy an investment product in future – which the report speculates could signal investors’ hopes that a crypto ETF will be approved by regulators.

While investment products were popular among European and Asian investors, they were more likely to buy digital assets directly. 

Fidelity Digital Assets’ survey results reinforce the views of finance professionals surveyed by Deloitte earlier this year – 76 percent of those respondents said they believed crypto would be a strong alternative to, or outright replace, fiat money within the next decade. 

Another report released this month found that six in 10 multinationals are already using crypto and blockchain technology, although typically for transactional purposes rather than as investment assets.