Tag: cryptocurrency

Crypto inflows slump after December record -report, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


Investment flows into cryptocurrency funds and products were just $29 million in the first week of January, down sharply from a record $1.09 billion in the week before Christmas, according to the latest data on Monday from asset manager CoinShares.

In addition, the data showed pointed profit-taking from record prices, with some investment products seeing outflows.

Nevertheless, total assets under management (AUM) in the industry stood at an all-time peak of $34.4 billion as of Jan. 8. At the end of 2019, the total was just $2 billion.

Bitcoin plunged more than 19% on Monday, putting it on track for its biggest one-day drop since March as its surge to a record $42,000 last week lost steam.

“Bear market plunges and excessive volatility are powerful agents that scare away the uninitiated,” said Edward Moya, senior market analyst, at OANDA in New York.

“But we are initiated and would like to point out that this was to be expected and that we already saw a near-20% decline earlier last week.”

Inflows into bitcoin investment products totaled $24.3 million in the first week of the year. Ethereum, the second largest cryptocurrency in terms of market capitalization, accounted for $5.3 million, according to the latest available data.

The data showed that investors pumped $15.6 billion into bitcoin products and funds in 2020, while ethereum inflows reached nearly $2.5 billion.

“Bitcoin is still up on the year and the current 22% crash won’t intimidate any of the new institutional money that just hopped onto the crypto bandwagon,” OANDA’s Moya said.

Assets under management in Grayscale, the world’s largest crypto fund, rose to a record $28.2 billion as of last week.

CoinShares, the world’s second largest crypto fund, showed assets under supervision of $3.4 billion. Its XBT Provider line of exchange-traded products hit record trading volumes on Jan. 4 of about $202 million. XBT Provider is a Swedish-based issuer of exchange-traded products listed on Nasdaq Stockholm AB, which is part of Nasdaq Inc and wholly owned by the CoinShares Group.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Bitcoin falls after a spectacular rally; what led to this?, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Bitcoin took a downfall around 17% after a long rally which began in March 2020 with touching new highs around $34,800 a whopping 800% increase.

However, the world’s most popular cryptocurrency sank 17% wiping out the gains which were made over the start of 2021.

Sumit Gupta, Co-Founder & CEO at CoinDCX, India’s largest crypto-exchange said, “Bitcoin’s growth is largely attributed to how it is designed and in May 2020, we witnessed third halving , a supply shock event, where the number of daily mined Bitcoin gets cut in half. In the previous 2 halvings, Bitcoin and overall crypto market cap has risen exponentially, and a similar trend is expected this time around.”

The adoption came largely from institutional investors and institutions across the globe.

Sumit explained how Microstrategy included Bitcoin in their company’s treasuries and payment rails like PayPal, Square are integrating cryptocurrencies due to rising demand from retail investors. He added, “In 2021, if the increase in Bitcoin’s demand continues we can expect even greater demand from institutional investors, hedge funds, family offices, and from retail investors as well.”

Arjun Vijay, Co-Founder & COO at Giottus Cryptocurrency Exchange has noticed more and more BTC leaving exchanges across the world, 19% more transfer than the 2017 price increase, which is a signal that investors are holding BTC as long-term investments. UK-based Ruffer investment, a recent example of investors looking to hedge their investment, had invested 2.7% of its AUM in Bitcoin in November 2020. Even Insurance companies like MassMutual, the Massachusetts insurance firm with $235 Billion in AUM, dipped its toes into Bitcoin with a $100 million purchase.

Vijay believes that with more players joining the bandwagon we will be noticing more price increases in the days to come. Also, a lot of new investors are waiting for a correction to enter this rally but Bitcoin price growth has been relentless all this while.

On the crash of 2018, Sumit noted, “This is the first time we are witnessing such a huge demand from such large players at such a scale. This is significantly different from 2017, where the huge demand was primarily from retail investors, followed by a crash in 2018.”

If the global demand from institutions and investors continues, we might see higher price action in coming months and years.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Bitcoin falls most since March as volatility grips trading, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


Bitcoin fizzled in Monday trading as the famously volatile cryptocurrency pulled back after a spectacular rally.

Prices sank as much as 17% in the biggest intraday retreat since March, wiping out gains made over the weekend. After a parabolic 2020, the digital currency had started the new year with a bang, surging as high as $34,000 and hitting all-time highs.

As ever in the world of crypto, it’s hard to pinpoint the proximate cause for the latest bout of volatility. Still, Bitcoin is up more than 300% over the past year, driven by a speculative fever from retail and institutional investors on the belief that cryptocurrencies are emerging as a mainstream asset class and can act as a store of value.

Believers in Bitcoin have pointed to the market’s supply constraints and supposedly rampant money printing by central banks as key drivers of bullish narrative. Others say that cryptocurrencies are a bubble in the making and another sign that crazy risk taking has taken over global markets.

Follow and connect with us on , Facebook, Linkedin



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Bitcoin trades near Sunday record of $34,800 following 800% surge, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


By Kevin Buckland

TOKYO: Bitcoin traded at $33,365 in Asia on Monday, after soaring to a record high of $34,800 on Sunday as investors continue to bet the digital currency is on its way to becoming a mainstream asset.

The latest milestone for the world’s most popular cryptocurrency came less than three weeks after it crossed $20,000 for the first time, on Dec. 16, and bitcoin has now surged some 800 per cent since mid-March.

With bitcoin’s supply capped at 21 million, some see it as a hedge against the risk of inflation as governments and central banks turn on the stimulus taps in response to the Covid-19 pandemic. Some also view it as a safe-haven play during the Covid-19 pandemic, akin to gold.

“Some of it is reflecting the fear of a weaker dollar,” Bank of Singapore currency analyst Moh Siong Sim said of the most recent rally.

“It seems like people are preferring bitcoin as an expression of concern over currency debasement, relative to gold.”

Bitcoin’s advance also reflects increasing expectations it will become a mainstream payment method, with PayPal opening its network to cryptocurrencies.

The potential for quick gains has also attracted demand from larger US investors, as well as from traders who normally stick to equities.

“The rally gained even more momentum as insatiable investors continued trading from home” during the New Year holidays, said Dave Chapman, Executive Director at Hong Kong based digital asset company BC Group.

Institutional investors see the potential for greater risk-adjusted returns compared to traditional investments, he said.

Bitcoin trades on numerous exchanges, one of the largest of which is Coinbase, itself preparing to go public to become the first major US cryptocurrency exchange to list on Wall Street.

Multiple competitor cryptocurrencies use similar blockchain, or electronic ledger, technology. Ethereum, the second biggest, shot to a record $1,014 on Sunday.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

XRP cryptocurrency tumbles as Coinbase exchange moves to suspend trading, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


Cryptocurrency XRP slumped 19% on Tuesday after Coinbase, a major U.S. virtual coin exchange, said it would suspend trading in the digital currency.

California-based Coinbase said on Monday it would suspend trading in XRP after the U.S. Securities and Exchange Commission (SEC) last week charged an associated blockchain firm, Ripple, with conducting a $1.3 billion unregistered securities offering.

Ripple has rejected the charges, saying XRP is a currency and does not need to be registered as an investment contract.

XRP, the third-biggest cryptocurrency, was last down 18.7% at an intra-day low of $0.20, its lowest since July. It has slumped by over half since the SEC move.

The move by Coinbase comes as it prepares for a stock market listing, with a confidential application to the SEC to go public. It would be the first major U.S. crypto exchange to list on the stock market.

Coinbase, one of the most well-known cryptocurrency platforms, said trading in XRP moved into limit only from Monday, and would be fully suspended on Jan. 19.

Financial regulators around the globe are still grappling with how to regulate bitcoin, XRP and rival cryptocurrencies. Investors are watching for regulatory developments that could determine whether cryptocurrencies leap from a niche to a mainstream asset.

XRP, which often moves in tandem with Bitcoin, had rocketed in November to hit its highest level since 2018 as a rally in cryptocurrencies gathered pace.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

Cashaa to launch crypto bank

Banking & Finance

[ad_1]

Read More/Less


Cashaa, a blockchain-based fintech, has joined hands with United Multistate Cooperative Society, a credit cooperative society, to launch crypto bank joint venture UNICAS that allows users to transact in cryptocurrency and fiat from one account.

While the online services of UNICAS has already gone live, as many as 14 physical branches will be rolled out by January 2021 across the NCR, Rajasthan and Gujarat.

UNICAS plans to rapidly expand to 100 branches by the end of 2022. “This will allow us to build, scale and offer customised financial and crypto products for the Indian market,” said Dinesh Kukreja, CEO of UNICAS, in a statement.

The JV will enable Cashaa to access United’s regulatory licences, its physical branches and overall banking infrastructure. United Multistate Cooperative is registered in Delhi under the Multi-state Cooperative Society Act 2002 and is serving in Gujarat, Rajasthan and Delhi with a network of 43 branches.

Being a multi-State credit cooperative society working under Registrar of Societies and providing services only to members, United Multistate Cooperative Society does not need the RBI permission, Kukreja said.

Users will be able to deposit and withdraw through a savings account, the way they operate with traditional banks in India. This is the first time in the world a financial institution has enabled cryptocurrency trade through physical branches.

“If we are planning to move ahead with the aim of digital India, then we cannot hesitate in adopting new technologies and finding innovative ways to bring it to Tier 1 and Tier 2 cities in India. In addition to banking, UNICASwill also provide information and guidance on the level of convenience and security that blockchain technology offers.” said Kumar Gaurav, CEO and Founder of Cashaa.

In India, currently cryptocurrency is not regulated. It may be recalled that in March this year, a three-judge bench of the Supreme Court revoked a Reserve Bank of India (RBI) ruling that banned any entity from dealing in or getting involved with cryptocurrency transactions.

UNICAS will be providing banking services for both fiat and crypto assets. Services include savings accounts, crypto exchange, crypto loan and debit cards to spend crypto. Users may receive an instant loan digitally by depositing crypto assets in the UNICAS wallet and requesting the equivalent value of rupee on their card or bank account.

The joint venture is merging United’s decade of experience in Indian traditional finance with Cashaa’s international banking and cryptocurrency experience to transform both the Indian fintech space and the crypto industry.

With the rollout of the initial 14 branches, UNICAS aims to onboard 25,000 customers within the first quarter of 2021. Cashaa, launched in October 2018, has already been providing its services to more than 200 crypto exchanges, wallets and start-ups dealing in crypto.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , ,
1 … 14 15 16