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New Platform Says It Enables Regular and Advanced Users to Create Their Own Crypto Fund

What if you could create and manage your own crypto fund with just a few clicks? Now, a company wants to bring that functionality to everyone.

Crypto funds act as a “basket” of different digital assets and can offer a variety of benefits over purchasing individual coins, such as ease of management and the relative safety that comes with diversification. Fortunately, creating and maintaining your own fund just became a lot easier, the platform notes. 

The team behind the Iconomi platform says it wants to offer a way for all users — regular and advanced — to easily get involved in cryptocurrency funds, without the complications that often come with traditional offerings like exchange-traded funds (ETFs), which can find customers navigating obscure terms and putting up with minimum buy-ins. 

The solution the company found has been to enable customers to create and manage their own personal index, with exposure to 70+ coins, the ability to use algorithms “to maximize returns,” and the option to rebalance the fund in “a few clicks.”

The reason that some users look to actively or passively managed funds, as opposed to just individual coins, is that diversity comes with a variety of benefits. For one, clients don’t have to pick and choose which projects they support one at a time, but instead can create a portfolio that intelligently channels their money into predefined currencies. Another boon is that diversity offers some protection against the volatility of the market, which is a well-known risk in crypto.

Iconomi has come in to offer users control over their own fund, whereas usually one would have to seek out such a product from an institution, often putting up with limitations such as lack of control over how the money is managed. With Iconomi’s system, anyone can retain all the power and set up not only their own basket of projects to support but also define their own strategies for rebalancing their index.

CHECK OUT ICONOMI’S PLATFORM HERE

Following experts

Some individuals may not want complete control over their own fund, and in that case, Iconomi has plenty of hands-off options. By offering an array of baskets that are actively managed by Iconomi experts, users can have the confidence of following someone who already has their own strategy and can rebalance the fund without any work on the part of the user.

In a recent interview with CriptoNoticias, Iconomi’s co-founder and CEO, Tim M. Zagar, discussed the benefits of working with the company’s experts and how they can aid beginners who aren’t sure what exposure they want. According to Zagar, “Iconomy experts choose the cryptocurrencies and manage the funds depending on market conditions, while investors can sit back and track their investments anytime and anywhere.”

If a user wants to manage everything themselves instead, Iconomi will enable him or her to set up a new fund, to choose which coins he or she wants to include, and to perform his or her first buy-in — all in a matter of minutes. If a customer is feeling particularly confident in their strategy, they are able to invite others to partake in their index, and even define their own management fee of up to 10%. 

A platform with regulatory backing

Something that may put many users’ minds at ease is knowing that Iconomi, based in the United Kingdom, recently had its governance prospectus approved by the Financial Market Authority (FMA) of Liechtenstein, meaning that the company now has a well-defined legal framework for operation. This has led to the creation of a parent company for all the offered services, Iconomi AG, as well as the issuance of a security offering, titled Profit Participation Securities.

Iconomi says it has been working hard to ensure that it is operating within clear and transparent guidelines so that its clients can trust the integrity and future of the platform. Furthermore, the team has made sure that any user can not only review its prospectus themselves online but also access the history of the company’s financial reports. 

For accessibility reasons, the current platform only offers deposits in the form of Bitcoin (BTC), Ether (ETH) and euros. This comes down to the fact that BTC and ETH are the cryptocurrencies with the highest liquidity and Europe is currently where the majority of the user base comes from. However, Zagar has maintained that, “In the future, we are looking to add other currencies as well.”

Learn more about Iconomi

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

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Crypto Exchange Revenue May Double In 2018, Despite Market Downtrend

To be frank, the cryptocurrency market hasn’t been in an optimal position since the start of the year, with prices crashing by upwards of 70% after the monumental run-up of 2017. However, according to analysts from Sanford C. Bernstein & Co, an American investment management and research house, crypto exchanges are still expected to post hefty revenues by the end of 2018.

In fact, collective revenues could double to upwards of $4 billion this year in comparison to last year’s figures, even if the market continues to head lower. According to Bernstein’s analyst team, the purchase and sale of cryptocurrencies on spot market exchanges generated an approximate $1.8 billion of fees last year (based off average transaction/trading fees).

To give this figure some perspective, the revenues generated by crypto exchanges are 8% of the fees incurred by investors on legacy market exchanges, an impressing statistic to say the least.

Although some were skeptical of the $4 billion projection, evidence posted by top crypto exchanges seems to tell a different story. As reported by Ethereum World News in early-July, Binance is expecting to rake in nearly $1 billion in profits in 2018 alone, despite the dismal performance of the market in the first 8 months of the year.

Many attributed this substantial figure to the relatively high fees Binance charges, along with the rumored listing fee that some speculate is upwards of $2 million per token. While the latter source of revenue is an ongoing source of controversy, the former has been accepted by the crypto community as fact. For most traders, Binance charges a 0.1% fee for the maker and taker of an order. While a 0.1% fee may sound near-negligible to many, incurred fees can rack up over time, often eclipsing how much a trader may be charged by a traditional markets brokerage, like TD Ameritrade or Charles Schwab.

For many premier exchanges, it is much of the same, with many other crypto-to-crypto platforms charging fees that are comparable to Binance, if not even more. Additionally, exchanges that support fiat-to-crypto even charge additional fees for the deposit and withdrawal of fiat.

Legacy Firms Want In On Crypto, Or Do They? 

Taking the aforementioned statistics and forms of revenue into account, it quickly becomes apparent that this flowering industry remains lucrative. The potential for staggering revenue figures and high-profit margins has led Wall Street veteran firms, like Goldman Sachs and JPMorgan Chase, to metaphorically dip their toes in this budding space. Adding more credence to this thought process, the aforementioned analyst team wrote:

“As the crypto-asset class seasons and institutional demand builds, there are a plethora of opportunities for traditional firms.”

These individuals later noted that traditional firms could make a foray into this industry by providing custodian, asset management, and market-making services to an array of investors.

However, some fear that due to rampant regulatory concerns and rapidly-fluctuating prices that Wall Street firms will be hesitant to make a meaningful move on the market. As such, Coinbase, which accounts for a speculated 50% of the transaction revenue pool, may end up in an “unassailable competitive position” in the future.

While crypto space will undoubtedly continue to develop, it may be a few more years before traditional institutions offer spot market support for the masses.

Image Courtesy of Charles Forerunner

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Goldman Sachs Could Support Crypto Custody In The Near Future

Cryptocurrency custody services are seen by many as the next step for institutional adoption. As per a Bloomberg report released on Monday morning, Goldman Sachs, one of the most respected financial institutions in the world, is considering the creation of an in-house custody service.

This news comes only a few months after Goldman Sachs began to trade Bitcoin futures for its clients, with this being the first substantial move that the firm took to back the crypto industry.

Citing people familiar with the matter, Bloomberg journalists pointed out that this service, if created, would be aimed at clients (likely institutional investors/firms) looking to safeguard their valuable crypto-asset investments from cyberattacking attempts. The unnamed insiders clarified that no solid plan is set in place yet, adding that there also isn’t a definitive timeline for the development and potential release of this service.

While custody doesn’t sound like much on the surface, it is likely that the release of a fully fledged Goldman-backed crypto service would hail in the next round of institutional involvement, likely pushing innovation and prices in this nascent industry to new all-time highs.

However, a custody service may not be the be all and end all of the firm’s crypto-related aspirations. The insiders went on to note that a successful custody offering could lead the New York-based financial giant to launch other crypto-focused ventures, such as a prime brokerage in upcoming years.

While neither confirming or denying the existence of a move towards custody, a representative of Goldman Sachs stated:

“In response to client interest in various digital products we are exploring how best to serve them in this space. At this point we have not reached a conclusion on the scope of our digital asset offering.”

Oddly enough, this news comes only a few days after the firm’s investment strategy group (ISG) revealed that they hold an aversion to cryptocurrencies. In a report from Goldman’s ISG, investment officers at the firm noted that they expect cryptocurrency values to decline moving into the future, adding that cryptos do not hold the prerequisites required to be classified as bona-fide currencies.

While this was an overall set of bearish sentiment, Nathaniel Popper, the author of Digital Gold and a well-known journalist at the New York Times, pointed out that this is only the sentiment held by one portion of the firm’s expansive employee base.

Goldman Isn’t The Only Wall Street Firm To Step Into The Crypto Boxing Ring

It is important to note that Goldman is not the only legacy market-centric firm to make a foray into cryptocurrency-related products, or custody to be more specific.

As reported by Ethereum World News in early-June, Fidelity Investments, an American finanical services firm with $2.5 trillion under management, has begun work on a “first-in-class custodian service for Bitcoin and other digital currencies.”

Pete Chercewich, the President of Northern Trust’s corporate and institutional services subsidiary,  told Bloomberg that his firm has also begun to develop a method of reliably securing crypto assets. The executive of the financial giant also noted that the plan is to offer custody support at industry-low fees, beating out the relatively high cost of alternative institutional-focused security solutions.

While taking into account the moves made by a multitude of Wall Street firms, it becomes apparent that Goldman may have some competition to deal with when it comes to offering the most reliable crypto services, for the most affordable prices.

Image Courtesy of Jason Baker/Flickr

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Major Academic Institution to Start Courses on Cryptocurrencies

Stern School of Business – well known New York University, has just declared that it is going through the making of an undergraduate course on cryptocurrencies.

These kind of movements from NYU were made even before back in 2014 entering the ecosystem while being the first to have ever provided a graduate course on virtual currencies

David Yermack – Department professor and leader of the [for the moment] going-on graduate level course will be also head of the new class.

In his remarks on the announcement, Yermack asserted the blockchain revolution is “probably as important as the introduction of double-entry bookkeeping,” also going on to say that there’s “enormous student interest [in the course], for the jobs it offers. ”

Indeed, the new class is poised to be a smashing success, as Yermack is moving his older grad course on cryptocurrencies into “our largest auditorium, with capacity for 350 students.” The undergrad class should be just as popular.

And no matter the speedy progresses that the crypto-world is going through and will be – the professor did announce he is more than prepared to keep right pace with the revolution:

“Year over year we’ll change well over half the course material. It keeps you young to be reading half the night just to keep up with the latest innovations.”

Very well fitting with the latest NYU development, various other prominent figure did state their view towards the crypto-space recently.

For example, Aswath Damodaran — the so-called “dean of valuation” for Wall Street — is a professor who runs a course on valuation at NYU’s Stern School of Business. Damodaran remarked in October that Bitcoin is a currency that “can only be priced against another currency,” with the professor going on to say that “bitcoin is not an asset, but a currency, and as such, you cannot value it or invest in it. You can only price it and trade it.”

The best way towards process development is developing oneself – and it seems like the blocktech has found it home for education and rigorous academic examination.