Investors Dollar-Cost Averaging Bitcoin Since 2017 Made a 61.8% Return

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Goldman’s Digital Assets Chief: Interest in Crypto Is Seeing a Resurgence

The crypto market is one of the best-performing markets in 2020. Year to date, the market capitalization of all digital assets is up by approximately 80%. Bitcoin alone is up 65%.

According to Goldman Sachs’ new head of digital assets, Mathew McDermott, the rally is materializing in a resurgence in institutional interest in crypto. He recently sat down with CNBC for an interview on the subject matter and about Goldman’s ambitions in the space.

Interest in Crypto Is Spiking: Goldman Sachs Digital Asset Head

Speaking to CNBC in a recent interview, McDermott, formerly the head of the investment bank’s internal funding operations, revealed his thoughts on the cryptocurrency space.

On use cases for blockchain and related technologies in the next decade, he commented:

“In the next five to 10 years, you could see a financial system where all assets and liabilities are native to a blockchain, with all transactions natively happening on chain… So what you’re doing today in the physical world, you just do digitally, creating huge efficiencies. And that can be debt issuances, securitization, loan origination; essentially you’ll have a digital financial markets ecosystem, the options are pretty vast.”

On what is going on right now in the cryptocurrency space, McDermott said that his information indicates a “resurgence of interest in cryptocurrencies” from “some of our institutional clients.”

Not the Only One That Thinks So

McDermott isn’t the only individual that has perceived this uptick in interest in Bitcoin amongst institutions.

Bloomberg’s Mike McGlone on August 5th released his latest crypto outlook report. The senior Bloomberg analyst noted that with Grayscale still accumulating en-masse and BTC futures gaining steam, it is clear that adoption by institutions is taking place:

“Consistent record highs in CME-traded Bitcoin futures open interest represent accelerating maturation, and a propensity to increase in price, in our view. Though long and short, futures are a key part of the first-born crypto entering the mainstream, and greater adoption.”

There’s been an uptick in retail interest as well.

When Bitcoin surged last week, the asset briefly trended on China’s social media platforms like Weibo, according to some reports shared on Twitter. At the same time, the search term “Bitcoin” (or the hashtag) began to trend on Twitter in at least four countries: the United States, Canada, the United Kingdom, and Australia.

This spike in interest is further materializing in Google Trends data.

As reported by NewsBTC previously, search interest in the term “crypto” on Google is starting to move higher. The interest in the term just surpassed 2019 highs and is heading to levels not seen since early 2018.

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Total Crypto Market Cap Versus Google Trends Search Queries For "Crypto" | Source: TradingView & Google Trends
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Goldman's Digital Assets Chief: Interest in Crypto Is Seeing a Resurgence

Europe’s New ‘Seed-to-Shelf’ Cannabidiol Blockchain Tracking Tool

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Podcast Host Lists Himself on Balancer: ‘EVAN’ Increases 500% in 2 Hours

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Grayscale Investments’ Ethereum Trust Filed With the SEC to Obtain Reporting Status

Grayscale Investments’ Ethereum Trust Filed With the SEC to Obtain Reporting Status

The digital currency asset manager Grayscale told investors on Thursday that the firm has publicly filed a Registration Statement on Form 10 with the Securities and Exchange Commission (SEC) for the company’s Ethereum Trust.

The recent filing is voluntary and if the SEC approves the registration, the Ethereum Trust will be the second crypto asset investment vehicle to obtain the status of a reporting company by the SEC.

Established in 2013 by Digital Currency Group, Grayscale Investments has been around for quite some time now. The firm manages a number of investment vehicles that allow investors to gain exposure to crypto assets like bitcoin, bitcoin cash, ether, horizen, XRP, zcash, ethereum classic, litecoin, and stellar.

In September 2013, Grayscale introduced the Bitcoin Investment Trust which originally was only available to accredited investors. Then the trust got the Financial Industry Regulatory Authority’s (FINRA) approval and Grayscale was allowed to offer shares publicly.

Then on January 21, 2020, the Bitcoin Trust had its shares registered with the SEC and it was the first crypto-based trust to obtain a reporting status from the SEC. On Thursday, Grayscale told investors that it was attempting to get the Ethereum Trust established with the Commission as well.

“If the Registration Statement becomes effective, it would designate Grayscale Ethereum Trust as the second digital currency investment vehicle to attain the status of a reporting company by the SEC, following Grayscale Bitcoin Trust as the first,” Grayscale noted in an investor’s email. Grayscale added:

Furthermore, if the Registration Statement becomes effective, accredited investors who purchased shares in Grayscale Ethereum Trust’s private placement would have an earlier liquidity opportunity, as the statutory holding period would be reduced from twelve months to six months under Rule 144 of the Securities Act of 1933.

In an announcement post on Medium, Grayscale said that Q2 2020 statistics show that investment into the Grayscale Ethereum Trust hit $10.4 million. “In fact, demand for Grayscale Ethereum Trust accounted for almost 15% of total inflows into Grayscale products during our biggest quarter yet,” the company said. Grayscale’s filing announcement continued:

Today, it’s clearer than ever that there is strong demand for an Ethereum access product.

Both the Medium blog post announcement and the email to investors says that the firm must stress that the filing is completely voluntary.

However, Grayscale does not want the recent Ethereum Trust filing to be confused as an “effort to classify the Trust as an exchange-traded fund (ETF).”

Grayscale’s Registration Statement attempt follows the recent approval by FINRA for the company’s investment vehicles, the Litecoin Trust and the Bitcoin Cash Trust. After the Ethereum Trust registration announcement, Digital Currency Group founder Barry Silbert tweeted that the attempt is a “milestone.”

What do you think about Grayscale’s Ethereum Trust registering with the SEC? Let us know what you think about this subject in the comments section below.

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Rival Bitcoin Cash Camps Look Set to Compromise

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‘The Enron of Europe’ — What We Know So Far About the Wirecard Scandal

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Small Investors are Flooding into Bitcoin as Whales Start Losing Market Dominance

The composition of Bitcoin’s investor base is rapidly shifting, with smaller investors garnering greater dominance over the total circulating BTC supply.

This comes as the dominance of so-called crypto whales sees a sharp decline, signaling that the market is currently seeing inflows of smaller retail investors.

This shift comes as more investors start turning to the benchmark cryptocurrency due to its status as a “hard asset” – which many be sparking a trend of accumulation amongst investors.

One group, in particular, that might be behind this trend is young investors. A recent analysis from banking giant JPMorgan shows that this group is widely accepting Bitcoin as both a store of value and as an alternative to the U.S. Dollar.

Bitcoin Whales Cede Dominance Over the Market as Retail Investors Accumulate

Data shows that small investors – defined as those holding less than ten Bitcoin – are rapidly gaining control over the benchmark crypto’s circulating supply.

This trend was highlighted in a recent post from analytics firm Glassnode, in which they explain that over the past five years, the percentage of the BTC supply owned by entities with less than ten BTC has grown by nearly 9%.

They also note that the percentage of the supply owned by entities holding between 100 and 100,000 BTC has declined from roughly 63% to 49.9% currently.

“Control of Bitcoin’s supply has been steadily shifting towards smaller entities. The % of supply owned by entities holding ≤ 10 BTC grew from 5.1% to 13.8% in 5 years, while the percent held by entities with 100-100k BTC declined from 62.9% to 49.8%.”

Bitcoin

Image Courtesy of Glassnode.

What Might Be Causing This Trend to Take Place? 

One group potentially responsible for this trend is young investors, who appear to be accumulating Bitcoin at a rapid pace.

NewsBTC reported yesterday that a recent analysis put forth by JPMorgan revealed that the younger generations have a high inclination to invest in Bitcoin.

“The two cohorts show divergence in their preference for ‘alternative’ currencies… The older cohorts prefer gold while the younger cohorts prefer bitcoin,” the bank’s analysts wrote.

Because Bitcoin is currently performing incredibly well against a backdrop of immense money printing and economic turbulence, there’s a high chance that this trend will only pick up steam as demand for “hard assets” continues growing.

It may also perpetuate the sliding dominance that large entities wield over Bitcoin’s circulating supply – which further decentralizes its distribution.

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This Bitcoin Metric Just Dropped 4%—And It’s Bullish For The Market

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Bitcoin Price

This Bitcoin Metric Just Dropped 4%—And It’s Bullish For The Market


  • Bitcoin has rallied by approximately 25% over the past two weeks as Ethereum has wrested the market higher.
  • The asset currently trades at $11,750 as of this article’s writing, with the uptrend still intact.
  • A crucial on-chain metrics, the number of BTC held by exchanges, has been dropping over recent days.
  • Analysts say that this trend is bullish for the cryptocurrency market as it effectively reduces Bitcoin’s selling pressure.
  • As this has transpired, analysts are seeing multiple factors that suggest demand for BTC should increase.
  • The simultaneous confluence of a decreasing supply of and an increasing demand for BTC should cause the cryptocurrency to increase in value.

Bitcoin Held By Exchanges Drops by 4% Within Hours—and Analysts Think It’s Bullish

The beautiful thing about Bitcoin is that if you have enough information, everything is transparent. You can peer into the wallets of billionaires, companies, and individuals to verify their claims, to figure out where funds have gone, and otherwise. Whole companies have been created due to this very premise as price signals can be derived from these trends.

According to blockchain data from CryptoQuant shared by analyst Cole Garner, the amount of BTC held by exchanges has “dropped off a cliff.”

On August 3rd, the “all exchanges reserve” metric on CryptoQuant printed a decline of approximately 4% from 2.49 million to 2.39 million coins.

Garner sees this as a positive sign for Bitcoin, arguing that the metric suggests “whales bought the sell off”

“The amount of #Bitcoin held on exchanges just dropped off a cliff. It happened two days ago – whales bought up the selloff. $BTC flowing out of exchanges is *bullish*”

Image

Chart of BTC's price action and CryptoQuant's all exchanges reserve metric shared by Cole Garner (@ColeGarnerBTC).

CryptoQuant provided a slightly different explanation, writing to Garner on his Twitter:

“68101 BTC transferred from Binance to a newly created wallet, and not clear whether it’s their new cold wallet or the 3rd party custody. Even if it’s Binance’s, it could be a bull signal since Binance decided to reduce the portion of hot wallets in charge of user withdrawals.”

Demand Set to Increase

Underscoring this decrease in the market supply of Bitcoin are the creation and propagation of many demand catalysts.

Fidelity Digital Assets, the crypto branch of Fidelity Investments, released a report last week showing why Bitcoin demand will increase over time. Some reasons why mentioned are as follows:

  • There has been record monetary stimulus.
  • Deglobalization could spur inflation.
  • Paul Tudor Jones and others are acknowledging Bitcoin.
  • The world is experiencing a “great wealth transfer” from baby boomers to those of younger generations.

The simultaneous confluence of a decreasing supply of and an increasing demand for BTC should cause the cryptocurrency to increase in value.

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This Bitcoin Metric Just Dropped 4%—And It's Bullish For The Market

Ethereum Beats Bitcoin, Gold, and Stocks In Stimulus Check Investment

Stimulus money pouring into assets like stocks, gold, and cryptocurrencies are having a dramatic impact on valuations. But as well as Bitcoin and precious metals are performing, it is Ethereum that has brought the largest return on investment since stimulus checks were issued.

Exactly how much would $1,200 invested in Ethereum have earned savvy investors, and how does this stack up to the rest of the market?

Ethereum Beats Bitcoin, Gold, and the S&P 500 In Stimulus Check Investment Returns

Since 2020 first began, the Federal Reserve’s balance sheet has grown by over $3 trillion and counting. A significant portion of that money has been distributed to individual US taxpayers in the amount of $1,200 per adult over 18.

The money is meant to stimulate economic activity, consumer spending, and provide relief to those hit hard by the pandemic.

Jobless rates have skyrocketed this year nearly as fast as the money supply. Stimulus money is being used for a variety of things, from everyday necessities like paying bills and groceries, to home improvement projects, to savings and investments.

Related Reading | Are Altcoins Silver To Bitcoin As Gold? Unusual Correlation Discovered

The money flowing into the market has helped keep the stock market afloat. Meanwhile, hard assets with limited supplies are benefiting extraordinarily from inflation.

Gold recently set a new all-time high, and Bitcoin recently broke through $10,000. Silver, and its crypto counterpart altcoins, are also performing extremely well in this environment.

Out of all of the major assets seeing a boost from stimulus checks, it is Ethereum that has benefited the most.

How Much Did a $1,200 Investment Earn Since April? Top Financial And Crypto Asset ROI Compared

According to CoinMetrics data shared by crypto investors and NuggetsNewsAU CEO and founder Alex Saunders, the Fed’s stimulus is effectively monetizing crypto assets.

In a side-by-side comparison, the impact on the stock market and gold can be seen. But significantly above those two assets in terms of ROI, lies Bitcoin and Ethereum.

After initial checks went out in early April, those who put their money into Ethereum now have $3,000 to show for it. The same investment in Bitcoin is worth just over $2,000. An investment in the S&P 500 or gold, despite strong rallies, would have barely resulted in roughly around $250 profit.

Related Reading | Here’s Why a Bouncing U.S. Dollar Is Bad News For Bitcoin

Ethereum’s performance still pales in comparison next to some other crypto assets. For example, Chainlink which recently set a new all-time high has turned that $1,200 check into $3,600, tripling the investment.

The best performer out of the entire crypto market top ten, however, wasn’t even Chainlink – it was Cardano. Cardano’s powerful rally has resulted in a 335% ROI. This would have turned any $1,200 investment made on April 11 when checks started to go out, into over $5,000.

Is this a result of inflation, hard assets performing well, or are crypto assets simply breaking out into a new bull run? Whatever the case may be, the investment world will be quick to catch on when they see that stocks, gold, and the rest of the market can’t keep pace with the crypto space.