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New Institutional Bitcoin Product on the Horizon as Bakkt Partners with Galaxy Digital

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Digital asset custody and derivatives solutions provider Bakkt has partnered with digital asset manager Galaxy Digital to develop a new institutional bitcoin product. The new partnership will see Bakkt ‘s custodial services offered alongside the Galaxy Digital Trading (GDT) engine match and trading platform.

As per Bloomberg ‘s interview with John Conneely, head of Bakkt ‘s custody, the new collaboration was inspired by the growing institutional demand for bitcoin exposure. Moreover, Galaxy Digital will seek liquidity from more than 30 market markers and will be able to trade on its GDT platform 24 hours a day.  According to the Head of Sales at Galaxy Digital Trading, Tim Plakas:

“Asset managers and hedge funds considering this service can be assured by the high standards we hold as a publicly-traded company with audited, public financial statements and an institutional-sized balance sheet.”

New institutional bitcoin product will ease the growing institutional demand for BTC

Bakkt has been offering regulated bitcoin futures to clients since October of last year. Bakkt also offers institutional-standard custodial solutions for the secure storage of bitcoins dubbed Bakkt Warehouse.

On the other hand, Galaxy Digital, which is owned by Bitcoin enthusiast Mike Novogratz, offers a wide range of cryptocurrency financial solutions. The partnership between the two firms will see the best-in-class services offered by the two institutions come together to ease the growing demand for bitcoin exposure by major institutions.

 

 

Bottom line

Furthermore, Bakkt combines both cold and warm storage services to preserve crypto assets. The majority of the funds are stored offline, which guarantees more security from hackers than online storage. Notably, the crypto assets stored in Bakkt Warehouse are protected by a massive $125 million insurance policy, with clients able to buy over $500 million in extra protection.

The derivatives platform is also working on other significant projects, such as the development of a retail-oriented cryptocurrency mobile app. Some recently disclosed details of the mobile app show it has incorporated some other third-party crypto wallets and features.

 

Blockchain.com Launches Venture Capital Firm, Seeking to Raise $50 Million

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As per the two anonymous sources cited by Yahoo, a London based Blockchain.com is seeking to raise nearly $50 million in venture funds to invest in blockchain startups.

Blockchain.com to Raise Millions in Venture Funds

The company which is famously backed by Google and Sir Richard Branson appeared to expand its business wings. Accordingly, Blockchain.com is launching its new VC firm, dubbed as “Blockchain.com Ventures” and is currently in talks with investors to raise $50 million to further invest in Blockchain and Crypto startups.

It is one of the leading Blockchain data providers and wallet which reportedly makes “a six figures advertising revenue every month” from its Blockchain Explorer tool. Besides advertisement, blockchain data, and wallet service, it aims to diversify Blockchain.com as a venture capital firm, much similar to Google Ventures, Salesforce Ventures, and Microsoft’s venture fund.

However, the Linkedin profile of Blockchain.com’s managing partner, Sam Harisson unveils that the fund already exists, as his position identifies him as “Co-founder of Blockchain.com Ventures.” Furthermore, his profile bio reads that they have already invested in a couple of startups – Origin Protocol Coindirect, Silver.tv, Nodle & others. One of the descriptions of his experiences on LinkedIn reads:

Co-founded Blockchain.com Ventures – A Venture Capital Fund anchored by Blockchain.com, the world’s largest non-custodial wallet platform & Lightspeed Venture Partners.

Harrison, whose Linkedin bio claims that “he co-founded Blockchain.com Ventures” had earlier worked at Naspers Ventures for more than four years.

Moreover, Blockchain.com itself has updated the “ventures” page on its website which reads “Powering the next wave of blockchain innovation.” It claims the new venture as its subsidiary, stating;

We created Blockchain Ventures to support and invest in distributed ledger technology (DLT) projects that advance the industry and provide a positive societal impact.

Beside Samuel Harrison, the website mentioned Peter Smith and Macros Santori as its founding team for Blockchian.com Ventures.

With almost 41 million users across 140 countries, Blockchain.com itself managed to rais 70 million USD from an array of investors including Google Ventures, the Venture Capital Investment arm of Alphabet Inc., and Lightspeed Venture Partner which is an American Venture Capital Firm. While investing in Blockchain.com in 2017, Sir Branson said; the company is at the cutting edge of a growing industry.

It’s worth reminding that the Blockchain.com has recently launched its crypto exchange The PIT, claiming to be the “fastest” trading platform.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

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Ripple executive answers why Forex traders lose money

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In most quarters, it is frequently said that the chances of being succeeding and reliably in the foreign exchange market are very minimal, as a larger percentage of forex traders are most likely to fail in the industry. Despite this probability, all forex traders who wish to be successful need to have a plan in mind for every forex trade they engage in to allow them to be accomplished and profitable more than the average trader.

There are many reasons why a trader might lose their money in the forex market. Most common is the lack of substantial experience, the misuse of trading signals, and poor money management. And David Schwartz, CTO at Ripple, has shared his view now on the topic, too. Mr. Schwartz claims that his answer is worth reading even if one is no interested in Forex trading. We will talk about his thoughts a bit later below. Let’s go through some Forex trading key information first.

At present, a large number of Forex traders incorrectly believe their success in the market is pegged on the signals and graphs. According to market observers, 90 – 95 percent of Forex traders record losses due to poor execution. In the world of Forex trading, execution plays an important role more than people think, resulting in people overestimating the signals and underestimating the other hard work they need to do.

An implementation plan needs to be present in every trader’s overall strategy even after getting favorable signals. Should a trader use a limit order, a market order, what duration should they store specific currency pairs before selling is some but just a few of the question they need to ask themselves.

Despite many risks involved, Forex trading is a beautiful venture that promises considerable returns to smart traders who tread carefully in the market. Several reasons contribute to forex trading being an attractive venture with the most significant reason being leverage. Traders and investors are attracted to the idea of their ability to borrow capital to increase their earnings, at levels that are not accessible in other capital markets.

Although being commonly used, not many investors know the definition of the word and how it is connected with their profit and losses. Again, stay with us, before we get to Ripple’s executive’s remarks on this, let’s keep covering some basics.

So, continuing, in the Forex Trading market, leverage plays a double-edged sword role that can assist an investor in generating profits on one side while being able to accelerate losses on the other side. If you are an investor and you are planning to use leverage while trading in the forex market, it will be wise to understand the benefits of investing using borrowed capital completely.

Leverage

Most of us have used leverage without our knowledge. When buying a house, it is common to take out a mortgage loan that collateralizes the house. The house acts as collateral for the lender to take if the borrower fails to pay off the loan. By using this borrowed capital, an individual can buy a house for an amount they could most likely not be able to raise if they did not lend from the bank.

In the Forex market, investors are given the option of borrowing capital to place a trade. An investor’s broker would lend them capital to trade, and the value of the currency pair would act as collateral. For instance, an investor’s broker would require them to post 10 percent on a EUR/USD trade that has a total notional value of 20,000 USD.

Why do traders lose money in the Forex market according to Ripple CTO, David Schwarts?

According to the accomplished forex trader and investor (and now an executive at Ripple) David Schwarts, there are a lot of reasons why traders might lose their investments. But the most common cause that might lead them to lose money is adjusting their plan to have a low probability of incurring a loss in the short term as possible. What this does is involuntarily maximize their chances of making losses.

According to the Chief Technology Officer of Ripple, if traders do not carefully understand the risks of ruins for the plan they are using, the expected amounts, and the loss probability, they should not be in Forex trading. As per David Schwartz, understanding these principles is a must.

Disclaimer: Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

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Most high net-worth investors will have crypto by 2022, deVer survey

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One of the most popular ideas floating around in the crypto verse, especially since the protracted 2018 crypto winter, is that institutional money will come into the cryptocurrency market sooner rather than later. That hypothetical cash injection would boost demand for digital assets thus increasing trading volumes, token prices. It would usher in the next crypto summer, in short. By “institutional investors” you could understand several things.

Some of those could be high net-worth individuals, family businesses, commingled funds, hedge funds, pension funds, and banks. The common denominator in all those diverse potential actors is that they all have billions of dollars in assets to move around. And most of them (68%) mean to own digital assets in some way by 2022.

The deVer survey

Several surveys support the idea. One of them comes from Dubai’s deVer Group, which is an independent economic think-tank. The company questioned 700 hundreds of its customers who are big players from all over the globe (Australia, UK, Qatar, Germany, Spain, Switzerland, and other countries). The sample chosen included only entities worth more than a million GBP (equivalent to 1.3 million USD) in investable assets.

Irish Tech news reported that “68 percent of the survey’s respondents revealed they have invested or will invest in cryptocurrencies like bitcoin, Ether, or XRP before the end of 2022.” So, that’s a couple of years ahead. Only last June, a comparable survey carried out by the same company had this number at 35%. So in fewer than twelve months, the portion of high-flyers in the world’s financial system willing to enter the crypto verse is almost twice as significant.

The company’s CEO and founder, Nigel Green commented this:

“Wealthy individuals are increasingly seeking exposure to cryptocurrencies. Cryptocurrencies are the future of money. Crypto is to money what Amazon was to retail. High-net-worth individuals aren’t prepared to miss out on this and are rebalancing their investment portfolios towards digital assets. Those surveyed clearly will not want to be the last one on the boat.”

Mr. Green and his firm are not alone in their conclusions. Two similar surveys, one of them done by the eToro group concluded that,

“71% of millennials would invest in crypto if it was offered by traditional financial institutions.”

“High net-worth individuals do follow the trends of the young. In a more circulated study, Greenwich Associated, on behalf of Fidelity Investments, surveyed their high net-worth base of customers.”

Similar polls with similar conclusions

Fidelity conducted a similar study of its own:

“Almost half of the institutional investors surveyed (47%) view digital assets as having a place in their investment portfolios, but opinions vary on how these investors would prefer to hold digital assets in the future. 76% of respondents deemed security as their top priority when considering custodial solutions.”

It bears mentioning that some institutional investors are already putting money in the cryptocurrency market. Some research into the activity within the blockchain world shows that institutional players already own 7 percent of the value in the cryptosphere. Such portion is rather meager when compared with the participation that those investors have in Forex, equity, securities, and other traditional financial markets.

Investors at that level are very risk-averse which is why they’ve kept away from crypto for the best part of a decade. Many among them are already accepting the idea of including digital assets in their portfolios, and when they do come into the market, they will inevitably open the floodgates.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.