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.


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Author: GEORGI GEORGIEV
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Beyond Crypto Friendly: Swiss Bank Helps Clients Participate in ICOs

Here’s something we don’t hear every day: a Swiss bank has opted to enable its clients to participate in initial coin offerings easily.

The bank, Swissquote, has previously allowed customers to trade in cryptos. This is, to say the least, an unusual service for a fiat banking institution. Additionally, Swissquote offers traditional FOREX trading and the range of services that traditional banks offer.

LakeDiamond ICO

The first ICO to be offered as an investment option on the banking platform is LakeDiamond, a lab-grown diamond company which is raising funds to purchase new equipment. They will offer more ICOs in the future.

The pre-sale of this ICO is ongoing and offers a 10 percent bonus up to 4 million CHF (just under $4 million).The regular public sale will not open until January. Presumably, buyers will not have the opportunity to realize any gains or exchange their tokens for other cryptocurrencies before the spring.

The token itself is pegged to the cost of diamond production. Each token is meant to be equivalent in value to “1 (one) minute of growth reactor operating time, which produces lab-grown diamonds. One minute is the smallest possible unit, so the tokens are non-divisible past this point. If a diamond plate takes 180.5 minutes to grow, it will consume 181 LKD.”

While this is not an ICO Review, LKD tokens are priced around 50 cents each. There will be a maximum supply of close to 6.8 million. The funds raised will be used to improve and expand the firm’s operations. Within the system, the tokens will have utility.

Lab-grown diamonds are a growing industry which markets themselves as more ethical. The movie Blood Diamond speaks to the reason that the ethics of traditional diamonds can be seen as questionable. Like all industries which require entry into disadvantaged countries and massive labor forces, the diamond industry has its share of detractors. Nevertheless, not everyone feels they are more ethical. There is the fact that they require less labor and if they became the norm, many thousands of people would find themselves without a livelihood.

You Don’t Need a Bank to Invest in ICOs

Yet, there’s certainly nothing unethical about investing in a firm to help it grow. LakeDiamond is meeting a demand and wants the public’s help to get there. SwissQuote feels it is a good investment opportunity for its account holders, and so they have partnered.

All the same, cryptonaughts have invested in ICOs since before banks even took notice of bitcoin or any other cryptocurrency. While it is certainly positive to see a bank be so forward-thinking, ultimately banks are not necessary for investment into ICOs and are furthermore decreasingly necessary for anything at all as the blockchain revolution moves on.


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Author: P. H. Madore
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Swiss Banks to Welcome Cryptocurrency and break Singapore’s crypto dominance

Switzerland businesses are urging their government to allow banks in the country to add cryptocurrency transaction system, says the Financial Times.



In an exclusive interview to the economic publication, Crypto Valley’s Heinz Tannler says,

“We hope to clarify relationships by the end of the year at the latest. Time is pressing – other jurisdictions such as Malta and Singapore are very active and making a lot of effort to attract these companies. The lack of access to bank services is a significant competitive disadvantage.”

The environment in Switzerland is primed for virtual currency transactions, and it is only the government and regulatory restrictions which are preventing the booming of cryptocurrency businesses in the country.

Waiting for “Competitive Advantage”

The alpine country is already an established destination for traditional banking, with a large number of global and local institutions having set up their operations here. There already exists a mature banking ecosystem, infrastructure and necessary talent pool for optimized banking services in the region.

Besides, their reputation precedes them as an exclusive banking system, which fiercely protects the identity of their account owners. Hence, cryptocurrency‘s philosophy is already a part of the banking culture in Switzerland. Thus, all that the country’s administrators will have to do is to allow banks to accept the digital currency processes.

Thus far, however, the country has resisted such a move, despite 2017 being the year where Switzerland saw the second largest volume of ICO funds in the world.

Money Laundering Fears

If Swiss banks begin to accept crypto’s, then they will be on par with the pro-crypto environment in places like Singapore and Malta. These nations have built the ecosystem for such transactions and are attracting businesses in large volumes.

The laws here are custom-made for the easy use and adaptation of cryptocurrencies in their economies. On the other hand, the current banking laws in Switzerland are limiting such adaption as they follow traditional transaction system and thus fail to match the expectations of crypto industry.

However, the biggest road-block for Switzerland to permit use of cryptocurrencies is the fear of money laundering. Tannler says,

“I can understand that banks are careful with respect to ‘know your client‘ and anti-money laundering. But experts reckon the danger of money laundering is lower than in other sectors of the finance industry.”

Things are beginning to change at this level as well, says Tannler, “We have to push certain national institutions to resolve this problem quickly and effectively, but that now seems to be going well,” Tannler shared in the interview.

The first of these changes towards mainstream cryptocurrency use was evident on June 19, 2018. The FINMA has for the first time allowed a company, Crypto Fund AG, the “license to distribute investment funds.” The last previous such helpful laws for cryptocurrency use in the country was in early 2018, when FINMA set up ‘regulatory guidelines’ for ICOs.

Zug, is the capital of cryptocurrency movement in the country and has adopted various technologies to take this forward. It has even explored of the blockchain technology in its voting systems.

By introducing changes, Switzerland has the opportunity to increase its presence in the crypto industry and improve access in the banking services for businesses which are based on cryptocurrency and blockchain.


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Author: Pushpa Naresh
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