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Wealth Manager Canaccord: Bitcoin ETF Approval More Likely in 2019

The latest crypto-market report from wealth managing firm Canaccord Genuity posits that a long-awaited approval on a bitcoin exchange-traded fund (ETF) likely won’t come until 2019.

In their quarterly update on cryptocurrencies, Canaccord Genuity, Canada’s largest independent investment dealer in Canada, dives into a range of topics, including the topic of security tokens and recent developments in cryptocurrency spot prices.

Yet it also hones in on the popular topic of the bitcoin ETF, which the crypto-community has viewed with renewed fervor following a proposed rule change by CBOE, which is seeking to list such a product in conjunction with money manager VanEck and crypto startup SolidX.

And while acknowledging the interest – and hopes – of those supporting the ETF, Canaccord puts forward the view that the SEC will extend its decision timeline as far as it can – until next March. By contrast, the SEC could, in theory, make a decision as soon as this Friday, August 10.

“And although the VanEck SolidX Bitcoin Trust, seen by many as the most formidable candidate for a potential approval, is due for a potential decision as early as this month, it is largely believed that the SEC will extend its deadline, in which case a decision may not be made until March 2019,” the firm wrote.

And as Canaccord sought to highlight, other investor-oriented products of a similar nature are already available on the market – outside of the U.S., that is.

“Meanwhile, we note that other bitcoin-based securities (e.g., Bitcoin Tracker One) have been available for trading on regulated exchanges as early as May 2015 in Sweden, while north of the border, Canada is working towards its own bitcoin ETF product, the Evolve Bitcoin ETF,” the firm wrote.

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Report: Blockchain Spending to Hit Nearly $12 Billion By 2022

A new report published by the International Data Corporation expects spending on blockchain solutions to increase annually at a growth rate of nearly 75 percent through 2022.

Dubbed the “Worldwide Semiannual Blockchain Spending Guide,” analysts at the firm expect total spending on projects in the blockchain industry to hit $11.7 billion in 2022 alone, compared to the $1.5 billion expected to be spent in 2018. The report further added that “blockchain platform software will be the largest category of spending outside of the services category and one of the fastest growing categories overall, along with security software.”

This spending trajectory is largely expected to be led by the financial sector, with banks being early adopters of the technology. The report explains that data shows a total of $552 million was spent on blockchain by the financial sector alone in 2018. The distribution and services sector is not too far behind, having invested a reported $334 million.

Further, the report covers developments in the blockchain industry for eight different regions across the globe with the potential addition of China as a ninth in forthcoming reports.

As the scope of the analysis currently stands, the United States delivers more than 36 percent of worldwide spending on blockchain technology with cross-border payments and settlements being the most popular use case for the technology. A total of $193 million has reportedly been spent on this field.

Looking ahead, Jessica Goepfert, program vice president for the International Data Corporation, said certain use cases for blockchain technology are not going away anytime soon, saying:

“We continue to see the greatest spending and growth for blockchain around lot lineage and asset and goods management … Manufacturers want to ensure products arrive where they are supposed to arrive. Retailers and wholesalers seek assurance around the validity and quality of the products they are selling. And consumers are demanding greater transparency from providers.”

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Beyond Bitcoin: Thompson Reuters Expands Data Service to Top 100 Cryptos

Mass media and data giant Thomson Reuters is expanding its cryptocurrency sentiment data toolkit to cover 100 different coins, the company announced Wednesday.

Initially launched back in March, the bitcoin data feed was created in partnership with MarketPsych Data LLC. The Thomson Reuters MarketPsych Indices Cryptocurrency Sentiment (TRMI 3.1) package monitors more than 2,000 global news and 800 social media sites in real-time.

It gauges sentiments such as “excitement” or “hope” to provide insight on investment and reveal market patterns using natural language processing combined with machine learning.

“Adding a cryptocurrency-focused sentiment feed to our suite of cross-asset solutions has…enabled us to provide our customers with invaluable insights that may help them make strategic investment decisions,” said Pradeep Menon, Thomas Reuters’ global head of investing and advisory.

Supplemented by quantitative analysis, TRMI 3.1 uses a host of additional tools developed by the behavioral economists at MarketPsych to “identify influential themes and more rapidly develop actionable strategies”, according to the firm.

This expansion in the capabilities of TRMI is part of a growing use case for artificial intelligence technology among investment insights products.

CEO of MarketPsyche, Richard Peterson, explained in a past interview that trends in digital conversation can be identified as leading or lagging investment indicators.

With a class of assets like cryptocurrencies that are by nature digital – and the information flow around them highly sourced from online forums – sentiment data may prove to be a particularly poignant indicator of where the crypto markets are heading.

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The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.