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Coinbase To Pay Interest to Institutional Investors on Staked Cryptocurrencies. Tezos (XTZ) is The First Crypto, MKR Will be Next

Tezos Betanet

Coinbase is committed to becoming the best option to attract
institutional investors to the world of cryptocurrencies, presenting a broad
spectrum of possibilities ranging from trading to offering rewards to those
willing to learn about these technologies.

In a post published in the official blog of the famous american crypto exchange, the team explains that as of today they are starting a program to support staking of cryptocurrencies.

Tezos (XTZ) is The First Crypto Chosen By Coinbase for Its New Program

The first token to be accepted by this program is Tezos (XTZ). A PoS cryptocurrency that allows users to earn passive income by hodling their funds without spending them.

Tezos (XTZ)

Kathleen Breitman, co-founder of Tezos explained that this
strategic decision could play a very positive role in engaging more
institutional investors. According to her, the fact of being supported by
Coinbase makes not only Tezos but the eco-system, in general, an especially
attractive investment option for previously skeptical traders and
entrepreneurs:

“The launch of Tezos staking through Coinbase Custody serves an acute need that existed up until now: a way for institutional participants who rely on a secure, offline custodian to take an active role in the network, achieving our mission of creating a ‘digital commonwealth’ means facilitating participation for all, and that includes the institutional customers that Coinbase Custody brings to the space.

Coinbase offers its clients 100% offline segregated storage
via Coinbase Custody. Likewise, Coinbase’s relationship with insurance
companies provides clients with a sense of security in the face of a possible
(but highly unlikely) loss of funds due to an attack.

In fact, it is important to note that the exposure to attacks is similar to that of non DPoS cryptocurrencies such as Bitcoin. This implies such a strong level of difficulty that an abuse is not profitable for the perpetrators.

Coinbase Sets Its Eyes on Maker after Announcing XTZ Stake Support

Coinbase also hopes to add governance support for Maker (MKR) protocol soon. The information was confirmed by Rune Christensen, Founder and CEO of MakerDAO who was pleased and optimistic not only about the future of the exchange but also about the adoption of MKR thanks to decisions such as this one.

“Decentralized governance is fundamental to the success of the Maker project. Coinbase Custody will provide an essential service by providing a way for institutional holders to participate in the system and vote with their MKR.”

The post Coinbase To Pay Interest to Institutional Investors on Staked Cryptocurrencies. Tezos (XTZ) is The First Crypto, MKR Will be Next appeared first on Ethereum World News.

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Binance Adds Sub-Accounts Feature with Zero Downtime Experienced

Earlier November this year, we saw the cryptocurrency exchange of Binance open its doors to institutional investors. Part of the plan was to introduce a feature that allows individual institutional accounts to have up to 200 sub accounts. Less than a month later, the exchange has announced today that it has launched the anticipated feature which aims at bringing improved managerial control and asset audit tools to institutional account holders.

Each Sub Account Will Have Its Own APIs

The announcement by the exchange was made only minutes ago and described the new feature as follows.

This upgrade will serve entities looking to set up multiple trading accounts within one organization and control access on an account level.

The original/main account has sole control over the movement of assets within the accounts as well as the ability to set permissions and grant different access levels for up to 200 sub accounts.

API users will be pleased to know that each sub account will have its own set of API limits, enabling them to trade with more freedom and at a higher capacity.

Account Security

The new feature also offers adequate security for each sub account. Individual account login information has been properly subdivided.

Master Account and Sub Account Access

The master account will be able to do the following:

  • View all data and balances for all accounts
  • Transfer funds between accounts
  • Parental managerial control
  • Create, edit and delete all API keys
  • Place and cancel all orders

The sub-account will only have two abilities: to delete APIs linked to the sub account and to place/cancel orders linked to its account.

No Downtime Experienced 

One thing to note, is that the new feature was added onto the exchange without any scheduled downtime as is the case whenever any cryptocurrency exchange wants to upgrade its platform. The CEO of Binance – Changpeng Zhao – tweeted about this achievement as follows.

What are your thoughts on the new sub account feature geared towards attracting institutional investors? Please let us know in the comment section below. 

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

The post Binance Adds Sub-Accounts Feature with Zero Downtime Experienced appeared first on Ethereum World News.

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Swedish Bank Inks Deal to Offer Crypto Fund Trading

Stockholm IT Ventures AB (SITV), a blockchain startup based in Sweden, has signed a software license agreement with a local bank to deliver a crypto fund trading service.

SITV announced Wednesday that its automation subsidiary, Blocktrade Technology, had signed the agreement with Valens Bank, according to a news release. The agreement, which is also the second between the two companies, stipulates that Valens Bank use “the BTT Crypto Trading Toolbox exclusively for Crypto Fund Trading.”

The BTT Crypto Trading Toolbox allows professional traders to “actively manager their clients digital assets” through its AI trading tools, according to Blocktrade Technology’s website.

Torben Pedersen, the director at Valens Bank, said “we are confident that this software will offer great value to clients and give pro-traders the market edge all are looking for,” according to the release.

Fredrik Waijnstad, managing director at Blocktrade Technology, said in the release that the agreement is in line with his company’s goal to reach out to “institutional investors and banks.”

The two companies are currently working to integrate “the back-end mechanics” of the service, and plan to launch trading for Valen Bank’s clients by September.

Neither the bank nor the startup announced which cryptocurrencies would go into the fund.

Stockholm image via Shutterstock

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.

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Coinbase Index Fund Adds ETC, Minimizes Fee To Charm Investors

The market has tumbled by over 5%, but this has not stopped the development of cryptocurrency products from moving forward. As Ethereum World News reported previously, the Coinbase Index Fund was launched in mid-June, opening its doors for accredited investors willing to allocate a minimum of $250,000 to up to $20 million to this fund.

The fund works as follows — the assets supported by the fund are weighted by market capitalization and then added to the product as such. So an investor who invests $1 million in the fund today would get $720,000 of Bitcoin, $190,000 of Ethereum, $20,000 of Litecoin, $60,000 of Bitcoin Cash and $10,000 of Ethereum Classic.

However, upon the release of the institutional-focused products, some investors expressed worries about the fees and lack of support for a wide range of crypto assets. But as a Medium post from Coinbase Asset Management alludes to, these worries are being addressed with two new improvements that will be implemented into the firm’s in-house index fund.

Coinbase’s Bid To Attract Investors

Firstly, the premier cryptocurrency platform revealed that it would be reducing its management fee for the Coinbase Index Fund to 1% annually. This is a hefty 50% reduction in fees as Reuben Bramanathan, the Product Lead at Coinbase Asset Management, alluded to in the following comment:

“We’re pleased to announce that we are reducing the annual management fee for Coinbase Index Fund from 2% to 1% for all new and existing investors.”

The Coinbase executive went on to explain the reasoning behind this reduction, noting that this move was made to “attract investors who are familiar with lower-fee index funds in other asset classes.” Hopefully, this decrease to a bare minimum fee should entice institutional investors to invest into this flowering asset class, which may be needed in a today’s bearish market. This just might be a primary catalyst that may bring vast amounts of institutional interest into this market, driving adoption, innovation, and prices to new all-time highs.

Secondly, the Coinbase Index has been rebalanced to include Ethereum Classic (ETC) to account for last week’s listing of ETC on Coinbase’s array of products. This move was not unexpected, as a post from the cryptocurrency giant mentioned ETC support for the index fund. Along with announcing investor “exposure” to ETC, Bramanathan noted that the fund will continue to add assets moving forward, including the five cryptocurrencies (Cardano, Basic Attention Token, Stellar Lumens, ZCash, 0x) mentioned in a previous announcement.

This is just another move that brings validation to Ethereum Classic, which has been mentioned in headlines all across the industry as of late. Over the past weeks, ETC/USD support has been added to Coinbase as aforementioned, Robinhood and Bittrex, which will only increase the amount of fiat inflow this asset sees in the future.

Many are hopeful for the success of this product, as many believe that an influx of institutional interest can right the sinking ship that is the current cryptocurrency market.

Photo by Samson Duborg-Rankin on Unsplash

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We’ll Recover Just Like The Past, says veteran BTC Analyst Willy Woo

Willy Woo, a veteran digital currency analyst with a strong focus on Bitcoin (BTC), has correctly predicted BTC trends on two occasions as highlighted by Ethereum World News.

The first time he did so, was back in late May when he had doubts that BTC would hold its levels above $7,000. Mr. Woo would then predict a decline to levels of $5,500 – $5,700 before the end of June. Sure enough, we touched $5,800 on June 29th. His first prediction was as follows:

I think we are gonna go to $5500-5700 next, I can’t see $7000 holding. Most likely we’ll balance a bit, then we’ll slide through. Long time-frames here, looking into June for rough timing of this to play out at a best guess.

The second time was when he predicted on the 1st of August that Bitcoin would flash dump then moon. His full prediction was as follows:

Interesting to see most think BTC will moon. I think BTC will flash dump, then moon afterwards, just like with Gold in WFC 2008. Flight to safety: everything else sells off to USD, then used to unwind leveraged positions, then afterwards havens like Gold and BTC have a bull run.

‘Flash Dump and Moon’ was taken out of context

Willy Woo has since stated that his predictions of a ‘flash dump then moon’ were taken out of context, but the accuracy of his words were stunning. In a tweet explaining how it was never intended to be a prediction, Mr. Woo stated that:

I never predicted a flash dump. It was a discussion on price movements in the context of a hypothetical banking crisis similar to WFC 2008.

We’ll recover, just like the past

As part of his response to the ‘Flash Dump then moon’ discussion, Willy Woo also stated that the current bear market might not be as huge or historic as everybody thinks. He went on to elaborate it in the following way:

Nah. This bear market has strong fundamentals. We’ll recover just like the past. It’s never been stronger on the long view. The fact that the media and big institutional players are talking it down is amazing. BTC used to be laughed at.

It is 2014 all over again for BTC

Bitcoin (BTC) experienced a similar decline back in early 2014. The decline was due to the Mt.Gox saga that transpired from late December 2013, to around March 2014. Back then, BTC fell 82.3% in a period of 21 months up until August 2015. Returning to current events, BTC has fallen 71% since its peak in December 2017.

When the bottom of the decline was reached back in August 2015, BTC would then continue to gain in value, from $203, for 28 months till its recent peak of $20,000 witnessed in December last year. This was a magnificent run that was 9,800% in gains in that time period.

In conclusion, the current BTC and total crypto market decline is normal for it has been witnessed before in the past. What remains to be seen, if we have reached the bottom of the decline in preparation of an upward trend for the next several months.

Disclaimer: This article is not meant to give financial advice. Any opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

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3 Reasons Why the Bitcoin (BTC) Rally is Here to Stay According to Brian Kelly of CNBC’s Fast Money

The total crypto market capitalization has surpassed the $300 Billion mark and is currently valued at $301.5 Billion. With the increase in volume of the crypto markets, Bitcoin (BTC) has broken past two recently stated resistance levels of $7,600 and $8,000 in quick succession and in a period of less than a week. The King of Crypto is currently trading at $8,310 and looks set to get to $10,000 by the time August rolls by.

With the increase in value of BTC comes the question of whether the current Bitcoin rally will continue into the rest of the year. Many crypto-traders have been treading cautiously as they too are not sure if this is an official bull run or the feared bull trap.

Brian Kelly, a regular contributor on CNBC’s Fast Money offered his insights as to why the Bitocin rally is here to stay. To begin with, Kelly stated that the current Bitcoin ETF frenzy is one of the driving forces of the current market excitement. Many traders believe that the SEC decision will be made around the 16th of August but Kelly believes that the chances of the Bitcoin ETFs being approved in 2018 are very slim. He stated that:

The chances of an ETF in 2018 are relatively low…but that does not stop the speculation on that. And that is one reason why we have seen this bottoming process to $5,800 all the way up here

A second reason the Bitcoin rally is here to stay according to Brian Kelly, is the interest of the crypto markets by institutional investors. He added that:

Institutions are starting to get serious. I can tell you from the calls I am getting. People who looked at [BTC] in December did not like the price. They are coming back now and saying, ‘Alright this thing is not going away. We need to understand what it is.’

The third reason why the current Bull run will continue, is that the said Institutions have acknowledged what is known as ‘Web 3.0’. Kelly described Web 3.0 as follows:

Web 3.0 is the new Internet, an improved Internet, with data that can be monetized. How do you send something of value across an open network like the Internet? With a cryptocurrency, and that is exactly why institutions are starting to get into this [bitcoin]. They’re seeing how this fits into a portfolio of Web 3.0 stocks.

In conclusion, even thought leaders such as Brain Kelly believe that the current Bitcoin rally is here to stay.

Disclaimer: This article is not meant to give financial advice. It is an opinion piece. The opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

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Institutional Investors are Swapping Bitcoin Futures for Physical BTC in Wall Street

It seems like the institutional investors at Wallstreet have also succumbed to FOMO that is related to the current Bitcoin (BTC) rally. The King of Crypto has been increasing steadily from Friday, July 13th, when it was valued at $6,200,. BTC has since gained by 34.4% to current levels of $8,335.

This impressive rally in almost 2 weeks, is the reason two Wallstreet institutional investors have completed the first-ever exchange of their positions in the CME’s Bitcoin futures market, for an equivalent amount of the ‘physical’ Bitcoin asset in an EFP transaction. According to CCN.com, the CME EFP Bitcoin transaction was facilitated by  E.D & F Man Capital Markets, which is a registered futures commission merchant, and itBit, an institutional-grade cryptocurrency exchange.

According to the CME Group website, EFPs are defined as follows:

An Exchange for Physical (EFP) is a particular type of Exchange for Related Position (EFRP) transaction and may be executed in any CME equity index future in accordance with Rule 538 and any associated advisories.

The EFPs are then used by traders as follows:

EFP transactions allow investors to convert between futures and either ETFs or baskets of the underlying index constituent stocks, without exposure to intraday market execution. This not only allows investors to optimize their holdings to meet their leverage, capital, tax and liquidity needs but to also differentiate between the tool they use for trading and how they want to hold their exposure.

In an EFP transaction, two parties exchange equivalent but offsetting positions in an equity index futures contract and an underlying physical equity (either a related ETF or basket of shares). One party is the buyer of futures and the seller of the physical shares, and the other party takes the opposite position. The EFP is a privately-negotiated transaction between the two parties to the trade, where the consummated transaction must be reported to the Exchange.

These transactions are common in traditional trading, but this is the first time an EFP has been used with a digital currency as the underlying asset. The current expiration date of the CME Bitcoin futures is this Friday, the 27th of July. The EFP transaction might have been as a result of the investors seeing that BTC is on a rally rather than on a decline as earlier expected.

Brooks Dudley, from E.D & F Man Capital Markets Inc., had this to say about the trade:

Every day we facilitate EFPs for our clients in physical assets such as soybeans, wheat and treasuries. EFPs on CME Bitcoin futures mark an important step forward in the maturity of the regulated derivatives market for digital currencies.

As the cryptocurrency markets continue to evolve, EFP trades might become common. Owing to the fact that the U.S. Commodity Futures Trading Commission (CFTC) has only approved Bitcoin futures products that are settled using cash, the EFPs will provide more flexibility as to how Wallstreet interacts with digital assets.

Disclaimer: This article is not meant to give financial advice. It is an opinion piece. The opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

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Can the Price of Bitcoin (BTC) Withstand the Historical Low Weekend Volumes?

Any keen observer of the behavior of the crypto-markets can attest to the fact that weekends are usually the trickiest for crypto-traders. The volumes of Bitcoin (BTC) and the crypto-markets in general, have a high chance of declining by a considerable percentage during the weekends. An exact explanation of this phenomenon has not been put forward in the crypto-verse, but we can assume the day traders are enjoying their profits of the week during the weekends and away from their computer screens and mobile trading apps. The same day traders then make a reentry into the crypto-markets some time on Monday.

Jokes aside, will Bitcoin (BTC) survive the traditionally low trade volumes during the weekend and sustain its current levels above $7,200?

The mood and feel in the crypto-markets, is that $7,200 is the new support level for Bitcoin (BTC) and this price could withstand the weekend. If this value is maintained, the King of Crypto – BTC – might be able to break the current resistance levels of $7,500 to $7,600 and get the the $8,000 level during the coming week.

The other side of the coin, is that BTC fails to hold the $7,200 support levels and eases back to levels around $6,800.

But the most likely scenario is for BTC to keep pushing up towards the $10,000.

Ethereum World News has highlighted the following reasons to be bullish about Bitcoin:

  1. Coinbase Custody service attracting a hedge fund worth $20 Billion
  2. Several market leaders calling for Bitcoin to move higher, including longtime BTC bear at BK Asset Management, Boris Schlossberg
  3. BTC having hit the bottom of the year
  4. Thomas Lee assuring that the time to buy Bitcoin is now
  5. Continual technical analysis
  6. The Bitcoin ETF frenzy
  7. BlackRock investment firm declaring it is exploring blockchain and cryptocurrencies
  8. Other institutional investors
  9. The general mood and feel of crypto enthusiasts who believe the time for a bull run is now

In conclusion, the weekends are historically known for having low trade volumes in the crypto markets. The exact reason for this has not been explained but the maintenance of the current price of BTC hinges on this. All the King of Crypto has to do, is to maintain levels above $7,200 through the weekend and into the new week. If this is achieved, the coming week might be as good as, or better than, the last one we had in the crypto markets.

Disclaimer: This article is not meant to give financial advice. It is an opinion piece. The opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

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