SWISS BITCOIN ETP SEES RECORD VOLUME AS INSTITUTIONAL INVESTORS BUY THE DIP

The steep decline in Bitcoin price has coincided with record volume of the recently launched Bitcoin ETP on the SIX Swiss Stock Exchange, suggesting that institutional investors are may be buying the dip. 

BITCOIN ETP $HODL SEES RECORD VOLUME

Earlier in November, Bitcoinist reported that a Bitcoin exchange-traded product (ETP) with the HODL ticker offered by Amun Crypto was about to begin trading on Switzerland’s SIX Exchange.

The ETP represents a fully collateralized and non-interest-paying bearer debt security, which is issued as a security and traded and redeemed in the same structure. Bitcoin comprises the largest share of the HODL ETP at 48%, followed by XRP (30%), Ethereum (17.6%), and smaller shares of Bitcoin Cash and Litecoin.

There is a notable difference between an ETP and an ETF, however. The former is not subjected to the Collective Investment Schemes Act (Cisa) and is therefore not supervised by Finma.

The HODL ETP is underlined by an index comprised of four major cryptocurrencies, namely BTC, ETH, XRP, and LTC.

Interestingly enough, last Thursday and Friday, the ETP saw record trading volumes with 53,233 shares and 62,986 shares traded, respectively. This is a serious increase from the one-month average volume that saw around 20,000 shares traded per day and coincides with a steep decline in Bitcoin price at the end of last week.

According to Su Zhu, CEO at FX Hedge Fund, the “correlation between volume and price continues to be very strong at -68%.

INSTITUTIONS BUYING THE DIP

Zhu notes that there is a negative correlation between price and volumes observed with the HODL ETP. In other words, the ETP’s trading volume increases as BTC price dips and decreases as price rises, as observed in the chart below.

According to the expert, a very high percentage of the volume is also net inflow which suggests that users buying the ETP are holding rather than trading.

Bitcoinist recently reported that users in Argentina and Venezuela might also be buying the dip, based on new data from P2P Bitcoin trading platform LocalBitcoins.


Source
Author: GEORGI GEORGIEV
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Binance Adds True USD (TUSD) to its Combined Stablecoin Market (USDⓈ)

Less than a week ago, the team at Binance announced that it was launching a Combined Stablecoin Market (USDⓈ) that would add more stablecoins in addition to Tether (USDT). The move was considered by many, as catering for institutional clients who would prefer multiple stablecoins rather than just one.

Binance already has the following stablecoins.

  • Paxos Standard Token (PAX) – listed on the 21st of September
  • TrueUSD (TUSD) – listed on the 16th of May
  • USD Coin (USDC) – listed on the 15th of November

PAX First To be Added To the Stablecoin Market

Soon after the aforementioned announcement (and on the 29th of November, Paxos Standard Token (PAX)was added onto the stabelcoin market to be a base currency paired with BTC, BNB, ETH, XRP, EOS and XLM.

True USD (TUSD) Added Onto the Stablecoin Market

Earlier today, Binance announced that it was also adding True USD (TUSD) to the stablecoin market. TUSD will be paired as follows:

  • BNB/TUSD
  • BTC/TUSD
  • ETH/TUSD
  • XRP/TUSD
  • EOS/TUSD
  • XLM/TUSD

Technical Delay for BTC, ETH and BNB Pairs

The trading pairs for TUSD had been scheduled to go live tomorrow, December 7th at 10am UTC. However, the team have delayed the listings of BTC, ETH and BNB pairs due to technical reasons. They have since updated the crypto trading community as follows.

Due to technical reasons, we will delay the listing of BNB/TUSD, BTC/TUSD, ETH/TUSD trading pairs to a later date. As such, we will keep the TUSD/BNB, TUSD/BTC, TUSD/ETH trading pairs listed until this date.

This means that only TUSD pairs with XRP, EOS and XLM will be listed tomorrow.

The CEO of Binance, Changpeng Zhao, took to twitter to apologize about the delay. He explained there was a bug that needed to be fixed. His tweet can be found below.

USD Coin (USDC) Likely To Be Next

With two out of three of the stablecoins listed on the new market, it is only natural to assume that it is only a matter of time before USDC is added with similar pairs on Binance.


Source
Author:  John P. Njui
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