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38 minutes | 4 days ago
Bloomberg's ETF whisperer says the SEC could approve a BTC ETF
Regulators in Canada approved two bitcoin exchange-traded funds (ETFs) in recent days, marking the first approvals of their kind for North America.Since launch, the products have seen considerable inflows. With the demand for a bitcoin ETF now proven, many wonder what a Canadian approval could mean for a U.S. offering. The Scoop spoke with Eric Balchunas, a senior ETF analyst at Bloomberg, about what an approved bitcoin ETF means for the landscape. During this week's episode Balchunas broke down the winding road to approval and why Canada was always likely to be a first.Now that Canada has its BTC ETFs, he argued that an approval from the U.S. Securities and Exchange Commission (SEC) is just around the corner."I think it's just a matter of the SEC coming around, and then once they come around mentally, I imagine it will happen pretty quickly," he said. "But again, I'm not in that bubble. I'm not a regulatory analyst. That's just my sense from talking to people." How Canada has historically been a proving ground for novel financial products. The differences and similarities in the Canadian and U.S. approval processes. Why Balchunas thinks 2021 will be the year of a U.S. BTC ETF approval. Why it's only a matter of time before a meme ETF launches. This episode is brought to you by KrakenWhether you’re an experienced crypto trader or just starting out, Kraken has the tools to help you achieve financial freedom. With 50+ cryptocurrencies to choose from, industry-leading security and a wide variety of features to suit any investing strategy, Kraken puts the power in your hands to buy, sell and trade digital assets. Visit Kraken.com to get started today.
29 minutes | 5 days ago
Breaking down Coinbase's S-1 filing and what it means for the bitcoin market
Thursday morning, Coinbase's S-1 filing went public, revealing for the first time details about its financials, cap table, and its pitch to the investment world ahead of a planned direct listing on Nasdaq.In this episode of The Scoop, The Block's director of news Frank Chaparro and director of research Larry Cermak unpack the S-1 filing's headline-grabbing sections and the broader implications of Coinbase's plan on the broader bitcoin market. Coinbase has been preparing to go public for several months. For the past several weeks, the firm's shares have been changing hands on Nasdaq Private Market, with the most recent secondary shares clearing at an average of $373 — implying a valuation of $100 billion. In this episode of The Scoop, Chaparro and Cermak explore Coinbase's revenues, how the firm's institutional business has surged in lockstep with bitcoin's price run-up, and how Coinbase's position as a public company will impact the firm and wider market.
41 minutes | 14 days ago
Grayscale's CEO details hiring plans, the long-term goal of a bitcoin ETF
Michael Sonnenshein took the reigns of cryptocurrency asset manager Grayscale Investments earlier this year. At the helm of the more than $30 billion investment firm, Sonnenshein is charting a course for a broad expansion of the business, which is best known for its Grayscale Bitcoin Trust."We brought in $5.7 billion last year," Sonnenshein said. "We are launching new products, we are investing in technology, we're building out the various teams, it's really about continuing to stay ahead of the growth we are experiencing at really an unprecedented rate."New inflows into the firm helped push Grayscale's assets under management (AUM) to new highs, while also lining its pockets with fee-based revenue. Estimates by The Block Research suggest Grayscale has brought in more than $109 million year-to-date. In addition to new hires, the firm has a plan for upgrading its GBTC product to an exchange-traded fund should the regulators ultimately approve such a product. "We spent the better part of 2017 in SEC registration for Grayscale Bitcoin Trust," Sonnenshein told The Block. "And we made a lot of progress with the commission and ultimately realized the regulatory environment wasn't ready for a bitcoin ETF and we pulled out of that process."He added:"But we hope in the future, like we were planning to in 2017, to register and uplift GBTC onto a national securities exchange as a bonafide ETF."Still, competition is mounting, with BlockFi and Osprey recently rolling out new funds. There's also Bitwise, which has seen its assets under management climb towards $1 billion in recent months. In this episode of The Scoop, Sonnenshein breaks down its hiring goals for 2021 as well as the following: What a bitcoin ETF approval means for Grayscale's GBTC Why mounting competition will result in fees "absolutely" coming down Why he wants to convince a nation-state to buy GBTC The firm's #DropGold campaign and plans for future marketing campaigns The technology investments Grayscale is making in its platform to make the investing process more seamless This episode of The Scoop is brought to you by KrakenWhether you’re an experienced crypto trader or just starting out, Kraken has the tools to help you achieve financial freedom. With 50+ cryptocurrencies to choose from, industry-leading security and a wide variety of features to suit any investing strategy, Kraken puts the power in your hands to buy, sell and trade digital assets. Visit Kraken.com to get started today.
50 minutes | 21 days ago
Inside CME Group's journey to launch an ETH futures product
"It's been number one on the ask list for a long time."That's Tim McCourt, global head of equity products for CME Group. Speaking about the reception of the more than hundred-and-seventy-year-old exchange's latest product -- futures based on ETH, the native cryptocurrency of the Ethereum network -- McCourt characterized the response as "overwhelming.""People have been really excited ... I think for a long time customers have really been demanding ether futures. They're really excited about the bitcoin futures and the success they've had," he said on the most recent episode of The Scoop.CME Group saw 388 contracts traded on the first full day of trading for the product, which was announced at the end of last year.That's about 19,000 ETH, or $33 million. The launch of ether futures followed the launch of bitcoin options at the end of 2019 and its bitcoin futures product in 2017. At last check, open interest in CME's bitcoin futures product stood above $2 billion. McCourt said that unlike products trading on other venues, CME's crypto products trade on a venue to which professional market participants are already connected.The firm's crypto products "widgets through the machine” in the same way as its thousands of other contracts, he said. "Your brokers are familiar. Your clearing members are familiar. So you don't have some of those barriers to enter that you have on the spot side."In this episode of The Scoop, McCourt unpacks the growth of CME's crypto products, the development of the overall crypto trading ecosystem, and what might come next for his company's crypto offerings.Episode 7 of Season 3 of The Scoop was recorded remotely with The Block’s Frank Chaparro and Tim McCourt of CME Group.Listen below, and subscribe to The Scoop on Apple, Spotify, Google Play, Stitcher or wherever you listen to podcasts. Email feedback and revision requests to firstname.lastname@example.org.This episode of The Scoop is brought to you by our sponsors Blockset and Kraken. BlocksetWith Blockset, companies gain access to tools such as:1. A highly scalable API that supports Bitcoin, Ethereum, Ripple, and other top chains2. AML/KYC data expediting time to market by complying with legal requirements3. Leading custody solutions using modern multi-party compute (MPC) technology KrakenWhether you're an experienced crypto trader or just starting out, Kraken has the tools to help you achieve financial freedom. With 50+ cryptocurrencies to choose from, industry-leading security and a wide variety of features to suit any investing strategy, Kraken puts the power in your hands to buy, sell and trade digital assets. Visit Kraken.com to get started today.
47 minutes | 25 days ago
Former Citadel Securities director explains what happened with Robinhood and GameStop last week
Stock markets have seen unprecedented levels of trading in recent days, fueled by retail trading activity tied to Wall Street Bets. Robinhood — which became the key figure in this drama as the venue through which much of the publicly visible trading occurred — has been a focal point of this market backdrop after buckling under the pressure of heightened activity and temporarily limiting purchases of certain stocks, like GameStop and AMC. In response, Robinhood came forward and tied its response to the underlying settlement infrastructure. Robinhood said in a blog post that the limits on trading were connected to soaring clearinghouse deposit requirements. The firm later said that a move to real-time trade settlement would remedy f the issues that faced not only Robinhood but other brokers. Here's from the blog:"The clearinghouse deposit requirements are designed to mitigate risk, but last week’s wild market activity showed that these requirements, coupled with an unnecessarily long settlement cycle, can have unintended consequences that introduce new risks."Shane Swanson of Greenwich Associates — a market structure wonk and former director at Citadel Securities — breaks down exactly what happened to the markets last week and why things stopped trading on a new episode of The Scoop podcast.Here's Swanson:"I like to use examples because I am a simple guy and examples seem to help. If I am a broker and I have $10,000 worth of capital and these aren't the accurate numbers, but say that allows me to trade $100,000 worth in the market because I have some leverage capabilities. And I am going to let somebody trade with me and I am to give them margin which means I'm going to lend them money and they're going to trade, and I am exposed to that lending risk. And they trade all the way up and they use all my $100,000 that I am allowed to expose myself to, once I hit that $100,000 I can't trade anymore. I can't expose myself to any more risk. I have used up the bucket of capital of which I am allowed to trade now."As for what happens next, Swanson told The Scoop that "it's always hard to go backwards on cost," referring to the ramifications of moving from T+2 to a more instant settlement process."It all depends. If the costs are egregious enough that the industry has to absorb commissions could come back. Movement from T-plus 2 to T-plus 1 settlement would be over a long enough time horizon I believe that would not be something that ends up impacting the retail investors in terms of cost," Swanson explained.
43 minutes | a month ago
The path to a bitcoin ETF, according to a data exec from one of the world's biggest stock exchanges
Cboe is a Wall Street powerhouse. On a typical trading day, the exchange operator handles about a third of U.S. equity volumes. In derivatives, major Wall Street products such as the VIX and S&P 500 options trade hands every day through its venue. Cboe is now trying its hand at the crypto market — again, that is. More than a year after it shuttered its bitcoin futures product, the exchange said that it would re-enter the market through a partnership with crypto data services provider CoinRoutes. On today's episode of The Scoop, Cboe global head of information solutions Catherine Clay lays out the firm's ambitions to build out a business in crypto market data. Clay also touches on how Cboe's plans set the stage for a wide range of tradable products, including a bitcoin VIX-like product to an exchange-traded fund. "You can even think about creative indices that reflect portfolio allocations with digital assets as a component," Clay said. "Bringing this real price data in for the creation and calculation of indexes falls very much in line with how we think about educating the investment sphere and giving people some idea about how to construct portfolios for crypto."For Clay, the relatively undeveloped state of the crypto data ecosystem harkens back to her time trading internet stock derivatives in the 1990s. "It really reminds me of when I was a derivatives trader back in the late 90s trading the internet stock back then that were really volatility," she said. "I remember standing in the pit where I was the lead market maker for Netscape and Double Click and you could imagine back then there was very little data available to understand where the derivatives—the options— listed on those underlying should be priced and traded."In this episode of The Scoop, Clay also discusses Her background as a derivatives market maker and how that history informs her view on the crypto world The use case of the real price data it is now distributing through CoinRoutes The importance of data and analytics for a robust crypto market The pent-up demand from issuers looking to create crypto products What Cboe's next steps might be if the SEC approves a bitcoin ETF
50 minutes | a month ago
Pantera Capital CEO says institutional bitcoin adoption is changing the crypto narrative
Pantera Capital's CEO Dan Morehead says initial coin offerings (ICO) aren't dead, but the narrative is gearing towards a bitcoin and ethereum ruled world for investors."Crypto as a market is so volatile that the narrative changes," said Morehead on this week's episode of The Scoop. That narrative lately has been all about bitcoin's growing adoption. From Microstrategy to Stone Ridge Holdings — and maybe soon the city of Miami — big players are allocating millions into the cryptocurrency.But as the money flows towards bitcoin adoption, ICO's aren't over, according to Morehead. Pantera is still pitched one every two to four months, and the firm's initial coin offering (ICO) fund ended 2020 up more than 500%. Still, that's a sharp decline from the 50 pitches a week Pantera sifted through in 2017, and its bitcoin fund closed 2020 up nearly 300%. The crypto narrative for investors is trending towards bitcoin amid institutional adoption, Morehead told The Scoop."We’re really seeing an inflection point with more coming into the market over the last couple of months....I think the reality is they’re looking for managers that manage multi asset funds sometimes both tokens and venture and they ultimately want that all to be within a handful of managers," he said.Lately, he's getting calls from many endowments, putting the industry at an inflection point with so many entering the space. Driving the interest in bitcoin is the current macro backdrop as well as bitcoin's spring halving last year—which the firm said could play a role in bringing its price to $115,000. He broke down what that means for the coming year on this week's episode, along with: Why the market is so focused on BTC and ETH this time around compared to the focus on initial coin offerings in 2017. What institutional investors want out of a bitcoin or crypto fund manager Why Coinbase's initial public offering will kick off a wave of crypto companies going public. How the industry is going to consolidate in the coming years, and why many exchanges are in a prime position to get rolled up. Why Pantera is "much more bullish on Ethereum" than other parts of the space.
31 minutes | a month ago
A deep dive into Coinbase's acquisition of Bison Trails
Count this as one of the first major acquisitions deals of 2021: Coinbase said on Wednesday that it is set to acquire crypto infrastructure services provider Bison Trails for an undisclosed sum. On this episode of The Scoop, Coinbase chief product officer Surojit Chatterjee and Bison Trails CEO Joe Lallouz unpack the deal with The Block's Frank Chaparro and Ryan Todd. "Bison trails is going to serve as a foundational product within our product portfolio: what we call our ecosystem products," Chatterjee, a former executive at Google, said. "So staking infra services is a start point, but we are going to look at other potential services that we can externalize, that we can create as a service."The deal represents a bigger push by Coinbase to offer its internal solutions to new client segments, Chatterjee said."Over time you will see we will extend additional infrastructure and API services, many of which have actually been developed to power our internal Coinbase product," he added. "We want to externalize them make them services for the entire crypto ecosystem."In this episode of The Scoop, we explore various aspects of the deal, including: What it could mean for Coinbase's existing staking offering How it improves Coinbase's standing as an infrastructure as a service provider in the crypto market How the Bison Trail's team could lead to new external API services for big ticket clients and help improve existing services Chatterjee's product philosophy for Coinbase Recent moves by rivals to snag banking licenses from the OCC
46 minutes | a month ago
Meet the CEO trying to convince every multi-billion dollar insurance fund to buy bitcoin
Bitcoin investment firm NYDIG raised $50 million in October, quadrupled its clients and life insurance company MassMutual purchased a minority stake in the firm.This came about because bitcoin is transitioning to a predominantly institution-owned asset, according to NYDIG CEO Robert Gutmann. MassMutual made a $5 million equity investment in NYDIG last December, as well as a $100 million bitcoin investment for its general investment account through NYDIG. On today's episode of The Scoop, Gutmann said this event could open the floodgates for insurance giants to get in on bitcoin.“You are going to see a lot of dominoes fall after this," he said.Based on the set of macro circumstances 2020 presented, insurance companies are starting to question whether they can go forward only buying corporate credit to make good on policies, according to Gutmann. "Over some number of years, it's hard for me to imagine it is not all of them [investing in bitcoin]," he said. "If MassMutual can get there from a diligence perspective so can the next one...It's definitely coming."He also sees publicly-traded companies following in the footsteps of Square and MicroStrategy. Both firms allocated a portion of their balance sheets to bitcoin. In Gutmann's view, these companies have a "fiduciary duty to consider whether holding 100% of your assets in dollars is in the best interest of your shareholders.""Reasonable people can have different opinions about that, but I personally don’t think only Jack and only Michael and no one else is going to do a cold analysis of that and not come to that conclusion," he said.On today's episode of the Scoop, Gutmann also touched on: Why he expects more insurance companies will enter the crypto space over time How the MassMutual deal came to be Why public companies are interested in bitcoin and how the adoption narrative for public companies is similar to that of insurance firms Why his institutional clients are only interested in bitcoin NYDIG's M&A strategy. Listen to today's episode on Apple, Spotify, Google Play, Stitcher or wherever you listen to podcasts.
44 minutes | 2 months ago
'This is not November 2017' says Mike Novogratz on bitcoin's price gyrations
After bitcoin's price fell from its highs above $40,000 this past weekend, investors were left arguing about whether that drop to almost $30,000 was an inevitable market correction or a sign of something more sinister.Indeed, liquidations across futures venues soared to more than $3 billion as crypto exchange Coinbase reported persistent technical issues. But Galaxy Digital's Mike Novogratz isn't particularly worried. "I am positive this is not November 2017," he said on this week's episode of The Scoop. "Listen, the market got way, way overbought. It was overbought by every statistic, every metric you can look."In spite of a fallen price, Novogratz said the real thesis of the past few months was adoption. More people have heard the bitcoin story, according to Novogratz, and a price correction won't meaningfully undercut that progress. There are still institutions waiting to buy, he said."The bitcoin-as-a-hard-asset story remains intact," Novogratz added. "This is a wash-out, a position wash-out. I don't think it will be long-term damaging. $30,000 should hold." He went on to highlight institutional firms that "haven't filled their coffers yet that continue to want to buy.""Insurance companies, asset managers, big institutions haven't bought bitcoin yet and they want to," said Novogratz.During this week's episode, Novogratz explains how he and Galaxy Digital are navigating the market correction, as well as: Why this price drop won't scare off institutional investors The impact of the macro background and fiscal spending under a Joe Biden-led administration The businesses he's most excited about, particularly in the decentralized finance space How he's viewing Bakkt and Coinbase's plans to go public His advice for new market entrants. This episode of The Scoop is brought to you by Blockset. With Blockset, companies gain access to tools such as:1. A highly scalable API that supports Bitcoin, Ethereum, Ripple, and other top chains2. AML/KYC data expediting time to market by complying with legal requirements3. Leading custody solutions using modern multi-party compute (MPC) technology Learn more and start building today.
34 minutes | 2 months ago
The inside story of NBA star Spencer Dinwiddie's crypto journey
On this episode of The Scoop, The Block's research team speak with Dinwiddie about his crypto journey, what originally got him excited about the space, what made him buy bitcoin, the investments that have made him excited about DeFi, Calaxy, and the NBA.
32 minutes | 3 months ago
NYSE vice chairman: Talks are 'accelerating' with crypto firms that want to go public
Despite the uncertainty of the global economy in 2020, the New York Stock Exchange has had a strong year, helping companies raise more than $66 billion. In many respects, it has been the year of Special Purpose Acquisition Companies (SPACs), according to vice chairman John Tuttle. This year, firms have raised billions through the acquisition-style mechanism.During this episode of The Scoop, Tuttle — who previously led NYSE's global listings business — explained why the fundraising method has taken the markets by storm and how they've evolved from a lackluster funding mechanism to a red-hot fad on Wall Street. "Let's look back ten years or so, SPACs were a four letter word, they didn't have the best reputation, the sponsors didn't necessarily have the best interest in mind of investors in the market place," Tuttle said.He went on to explain:"And they largely fell out of favor. Several years ago you started seeing some rule changes around SPACs to address some of those challenges that SPACs had a decade or so ago and you started seeing higher qualities sponsors come into market.What do I mean by that? Folks that—whether it be the Goldman Sachs or the Gores Groups of the world. Folks that had very well-respected reputations in the marketplace both as financial partners but business partners as well too. You started seeing deals be larger in size. You started see well respected names launch SPACs and partner with SPACs and partner with SPACs, and that's what gave credibility to the product."Indeed, some crypto firms have been considering SPAC-centric strategies, including BlockFi and Ripple. There's also firms like Coinbase, which is said to be in the process of going public in the near-term, as previously reported by Reuters. Tuttle says that the exchange group is talking with crypto firms about tapping into public markets. "It has been a space that's been of interest for quite some time," he said. "We've had discussion with companies that have been thinking about accessing the public market, from that space, crypto blockchain digital assets.""Those conversations continue, they're accelerating," he added. "And I also think that digital assets, crypto are going to play somehow somewhere some way an important role in the market of the future."_________________________________This episode was brought to you by Polkadot Decoded, the Polkadot community conference on December the 3rd. Don’t miss this opportunity to tap into the latest developments and discover what lies ahead in the Polkadot ecosystem, including Gavin Wood in conversation with Laura Shin and a panel moderated by The Defiant founder Camila Russo. . Save your spot today!
51 minutes | 4 months ago
Brad Garlinghouse explains how regulatory uncertainty around XRP has affected Ripple
CEO Brad Garlinghouse says in what was poised to be a challenging year, Ripple exceeded his expectations for 2020. "We aren’t going to grow as fast this year as we thought. However, we’re still getting two production financial contracts a week," he said.Indeed, the digital asset and payment system has seen some days this year in which XRP liquidity on Bitso exceeded BTC. But still, an opaque regulatory atmosphere has kept Ripple from reaching its potential, Garlinghouse argued in an interview with The Scoop's Frank Chaparro.According to Garlinghouse, there isn't a "level playing field" for all digital assets in this regulatory climate."Bitcoin was the only one with the hall pass," he said.This creates an atmosphere in which assets without clarity underperform, according to Garlinghouse.On this week's episode, Garlinghouse discussed how Ripple is "fighting with one hand tied behind our back," as well as: Why big banks aren't partnering with Ripple, but smaller banks are interested The ways regulatory clarity has benefited bitcoin but not other digital assets, and why the lack of clarity impedes Ripple's growth Why Ripple is currently not planning a blockchain initial public offering (IPO) How central banks are looking into XRP-based ledgers.
43 minutes | 4 months ago
As Polymarket's profile rises with the U.S. election cycle, founder Shayne Coplan says it's just the beginning for prediction markets
Shayne Coplan thinks information markets are the future, and with the recent influx in volume to his platform Polymarket, it seems they are rapidly becoming the present. In recent weeks, the prediction market platform has done millions in volume with its various election markets, which span from the U.S. presidential election to state calls. The platform's "Will Trump win market" has surpassed $8 million in volume.As the U.S. presidential election grew ever-tighter on November 3 and 4, many crypto minds noted that Polymarket's odds more accurately reflected the outcomes compared to traditional models like Nate Silver's FiveThirtyEight.Coplan says he has no doubt in the growing future of prediction markets, and on this week's episode of The Scoop, he laid out why he believes markets are the most reliable source of sentiment data. He also touched on: How he went from early ethereum adopter to founder of a company Why he believes markets are superior to polls, and how prediction platforms can change the way information is interpreted Where Polymarket sits on the sliding scale of decentralization and what that means for compliance How Polymarket's second version is lowering the barrier to entry and what tools are making adoption easier What's next for Polymarket after the U.S. presidential election resolves.
45 minutes | 4 months ago
LMAX's CEO breaks down the real impact of the U.K. crypto derivatives ban
The ban will take effect in January of next year, affecting crypto brokers, investment platforms, financial advisers and, of course, derivatives exchanges. But, David Mercer, CEO of LMAX Group, said what the ban really does is effectively halve the leverage. The FCA had already limited leverage to retail customers to two to one, now it's one to one. "You've banned derivatives, but actually you've just halved leverage. It's one to one rather than two to one. That's all that's really happened," said Mercer. "What they're saying to everyone, you can own crypto assets you just can't own it on leverage. "Still, Mercer said there is a duty in capital markets to protect retail investors and firms have a duty of care. LMAX Group is a regulated broker in the U.K. trading mostly spot, but clients still pass suitability tests indicating their understanding of the product. Working with regulators, even when you disagree with them — and Mercer said he does disagree with the ban — is key.Mercer laid out why he thinks the FCA took such an aggressive approach on this issue as well as its implications on this episode of The Scoop. He also touched on: Why normal corporate firms are beginning to set aside part of their balance sheets to bitcoin, and why Mercer says it's inevitable that bigger traditional funds begin allocating portions of their portfolio to bitcoin How the market responded to regulator cases against Bitmex The implications of the FCA ban and how the regulator's influence might change by ignoring crypto stakeholders Why he thinks a significant bank will move into the marketplace in 2021 and what that will do for crypto.
52 minutes | 4 months ago
DC veterans say money is key for crypto issues to be heard. So, they formed a PAC
HODLpac is seeking to put the benefits of crypto protocols on display, borrowing from the industry in its governance and voting structure to apportion collected funds to candidates. Though it doesn't accept donations in crypto yet, it does follow a token-based voting structure to determine who the PAC will support and how much a candidate might receive.Its first Community Ballot will occur tomorrow, meaning those who are interested in donating and voting on candidates still can. For more information, Whirty and Smith broke down the structure and purpose of the project on this week's episode on The Scoop.Whirty and Smith also discussed the opportunities of a blockchain-based PAC and where they see the project going, as well as: How a crypto-focused hybrid PAC operates and why it's needed in Washington The PAC's quadratic voting structure and how quadratic voting can lessen the disparity between hyper-wealthy and average donators The road to more decentralized governance and a grassroots base An inside look at the way money talks in Washington — and why a PAC or donation-based opportunity may be a faster way to get an issue on the floor What the different 2020 election outcomes might mean for crypto.
45 minutes | 5 months ago
ARK Invest's crypto analyst says bitcoin market cap could hit $3 trillion by 2025
Yassine Elmandjra, crypto asset analyst at ARK Invest, published a white paper recently that argues Bitcoin could reach three trillion dollars in market cap by 2025. On this week's episode of The Scoop, he broke down how he arrived at that conclusion.ARK began looking into digital assets in 2015, when BTC was trading around $250. At that time, the firm published a white paper arguing BTC was unique and didn't fall into a traditional asset class. Now, it's published a part two to that early paper aimed at institutions. "In addition to sizing that opportunity for institutions, we really tried to look at what the liquidity and volume profile of Bitcoin are relative to other asset classes and whether or not we're at we're at a place where Bitcoin can support the institutional flow that we so desire," he said. "With that...indeed, we think that over the next five years, Bitcoin presents a multi trillion dollar opportunity."Elmandjra detailed the path to the moon on this week's episode, as well as: The relationship between Bitcoin, the S&P and gold and what that means for strategic allocation What increasing volumes means for Bitcoin's maturity as an institutional asset What the main pain points are for institutional adoption of Bitcoin, like the lack of primer brokerage firms and large custodians What it would take for Ark to gain spot exposure of bitcoin in the future
36 minutes | 5 months ago
Stephen Palley gives an in depth look at the BitMEX charges — and what it could mean for DeFi regulation
Last Thursday, BitMEX found itself embroiled in both a civil and criminal case with the Commodities Futures Trading Commission (CFTC) and the Department of Justice (DOJ), respectively. BitMEX was hit by twin lawsuits. The CFTC accused the derivative exchange and its operators, including CEO Arthur Hayes and co-founders Ben Delo and Samuel Reed, of running an unregistered trading platform and violating anti-money laundering and know-your-customer regulations.The DOJ filed a criminal indictment against Hayes, Delo, Reed and head of business development Greg Dwyer for allegedly violating the Bank Secrecy Act. Reed himself was arrested. Responding to the breaking news developments, Stephen Palley, partner at Anderson Kill, featured on this week's episode of The Scoop to break down the nuances of the two cases. He touched on: The process for litigating Bank Secrecy Act violations, and why it's likely the BitMEX operators are likely on the hook for possible prison time What this case means for the growing decentralized finance space Key facts in each filing that will be impactful going forward Why it's surprising that the BitMeX domain has not been seized by law enforcement
62 minutes | 5 months ago
'It doesn't need me:' yearn.finance's Andre Cronje on the protocol's path to decentralization
In the fast-paced world of decentralized finance, the people behind the protocols are sometimes just as captivating as the protocols themselves. That's certainly the case for yearn.finance's Andre Cronje, the former banking developer who seemingly built out both a cult following and billion dollar protocol over night. Indeed, the governance token tied to the protocol, YFI, has surged beyond $30,000 since its inception at the beginning of the summer. If it was up to Andre, however, he wouldn't be affiliated with the protocol as much as he is. Cronje is currently trying to expand the number of folks responsible for shepherding the protocol.In the most recent episode of The Scoop, he explained why a proper decentralized protocol doesn't need a decision-maker or figurehead, and discussed yearn's planned transition to a more decentralized model in which multi-sig holders would approve strategies. "We haven't fully transitioned yet," he said. Still, he said: "I disagree with this idea that people have that I am yearn because it doesn't need me. If I were to have a heart attack on this call now, it's going to continue without me."We also discuss: Challenges of decentralized governance and how the yEarn community has fared Why it's difficult for other projects to replicate YFI's success with their token launches How the experimentation happening in the DeFi world matters to the traditional world of finance What lowering the barrier of cost in DeFi means for innovation What's behind the kind of toxicity in the space that almost drove him out Some of the new project ideas yearn is working on, such as Stablecredit
37 minutes | 5 months ago
Kraken gets green-light to launch crypto bank
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