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Investors believe in Bitcoin as a reliable financial instrument, SIX offers the Swiss Central Bank to adopt crypto franc. SEC made proposals on ETF funds.
The launch of blockchains of a new generation has led to a sharp increase in Bitcoin price. That is the opinion expressed by Jeremy Allaire, the Head of the company. In an interview with CNBC, the expert noted that investors had accumulated cryptocurrency assets over the past year. Now Libra project launch has provoked a sharp demand for Bitcoin.
The words of the Head of Circle are confirmed by analysts from Genesis Capital. Those have found that institutional investors’ activity grew by 300% in the past 12 months. Moreover, they think that Libra White Book publication is not the only reason for growth. Experts believe that the major market players hedge risks through cryptocurrency assets purchase. Although they aim relatively small amounts to protect capital, it is a very significant support for digital financial assets.
Over the past week, the BTC/USD pair showed an increase to $ 13,810. The last time it reached this mark in January 2018. The historical maximum was recorded in December 2017 at a level of $ 19,100.
Words about Bitcoin reliability as a financial instrument confirm the analysts’ research of Xinhua, the state news agency of China. They are sure that, against the background of increasing geopolitical tensions, it was cryptocurrency that became the safest asset for investment. Interestingly, Deutsche Bank experts blamed the central banks of the world for this situation. Aggressive manipulation of interest rates leads to a decrease in investment activity and to the search for new tools.
Naeem Aslam, cryptocurrency expert, is sure that the BTC/USD pair will be able to reach $ 100,000 in the coming months. Jesse Powell, the Head of Kraken cryptocurrency exchange, says that the price may rise to a million. However, a correction has now come to the markets; Bitcoin has dropped to $ 11,200. Someone takes profits; at the same time, this is a great opportunity for others to build long positions.
At the Crypto Valley Association conference, the largest Swiss stock exchange turned to the Central Bank of the country with a request to issue a national cryptocurrency. A year ago, the exchange began to develop Digital Exchange (SDX) blockchain platform, which could become a place to use a new financial instrument.
On its platform, SIX will be able to perform settlement operations with government tokens, which will have 1:1 rate with the Swiss franc. Exchange representatives explained that the Central Bank cryptocurrency will significantly simplify exchange operations. Just two weeks ago, Avenir Suisse analytical center launched an appeal to the Central Bank to release the state stablecoin.
In autumn of 2018, Switzerland launched Bitcoin ETP, a complete analog of Bitcoin ETF, which is not yet allowed in the US. Now the launch of ETP Bitwise 10 Select Large Cap Crypto, the fifth cryptocurrency product, has been announced on the SIX exchange. It is an index of ten most liquid cryptocurrencies.
Swiss authorities are loyal to digital financial assets, which allows the country to make significant progress. Some experts believe that Libra Association by Facebook was registered precisely in Geneva particularly due to the authorities’ liberal attitude.
The city and the country authorities have already stated that they welcome this decision. It is still too early to say that the Central Bank of the country will listen to Avenir Suisse and SIX recommendations. However, it is already known that the stock exchange will launch its own stablebcoin in the near future. Perhaps this will be the next step towards the state cryptocurrency emergence. Such plans have already been announced by the authorities of several countries. However, so far no one has reached the stage of the project practical implementation.
The US Securities Commission issued a document offering options for changing the rules for cryptocurrency ETF funds trading. The conditions under which Wilshire Phoenix Funds will be able to place ETF shares on New York Stock Exchange are explained in detail on 43 pages.
A month ago, NYSE Arca together with Wilshire Phoenix published an application for creating a new financial instrument. The created fund will trade exclusively in Bitcoin and treasury bonds. Coinbase will provide cryptocurrency storage; at that insurance companies will cover losses of up to $ 200 million in case of funds theft from cold or hot wallets.
Now SEC is considering several applications for Bitcoin ETF funds opening. In addition to NYSE Arca and Wilshire Phoenix, they were published by VanEck, SolidX, and Bitwise Asset Management. Almost a year has passed since the first appeal to SEC with a request to approve cryptocurrency funds, but so far none of them have been satisfied.
At the same time, the Commodity Futures Trading Commission agreed on the emergence of another financial instrument. LedgerX LLC received Designated Contract Market (DCM) license. This will allow it to offer customers deliverable Bitcoin futures in June.
The asset will be available on the Omni platform, and it will work directly with retail customers through liquidity providers. Its closest competitor, Bakkt platform, will start testing its work on ICE Futures U.S market only at the end of July. In both cases, CFTC quite quickly agreed to launch new contracts. Moreover, companies also had to solve the issue of creating custodial services and obtaining objective quotes.