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Report: “The Case for Crypto in an Institutional Portfolio”May 5, 2018 – Bitwise Asset Management has released a report this month which highlights the benefits of adding cryptocurrencies to institutional portfolios. “The Case for Crypto in an Institutional Portfolio” is a 17-page report that compares the performance of a 60% equity/40% bond portfolio with and without bitcoin exposure. To make up for bitcoin’s tremendous outperformance over the last few years, the model portfolio study begins at January 1, 2014 which includes “two of the worst bear markets in Bitcoin history”. The final results of the study are optimistic for the inclusion of bitcoin in an institutional portfolio. The study concludes that allocating a portion of the portfolio to bitcoin not only increases the risk-adjusted return, but also provides high returns whilst maintaining low correlation to traditional assets. Read the full article here. |
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Comparing Bitcoin to Traditional Asset ClassesMay 2, 2018 – Cryptocurrencies are certainly becoming hard to ignore, especially after the wicked pop seen last year in the leading cryptocurrency, bitcoin. So, are cryptocurrencies considered financial assets, commodities, money, or something completely different? These questions are still yet to be answered by even some of the biggest names in financial markets. Bloomberg has provided an in-depth comparison of bitcoin against a wide range of asset classes. Some key takeaways from their findings are that cryptocurrencies still have very weak correlations against other asset classes, and that cryptocurrencies also tend to move with one another. Non-correlation to traditional markets make cryptocurrencies attractive investments to portfolio managers who seek to diversify client portfolios. Read the full article here. |
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Bitcoin Volatility Down DramaticallyMay 2, 2018 – As volatility in public equity markets appears to be dwindling, volatility in bitcoin has dramatically fallen over the last 5 months. In December 2017, bitcoin’s record intra-day swing was about $4,700 USD. Since then, bitcoin volatility has shrunk to its lowest levels since August 2017. Bitcoin’s new daily trading ranges are now averaging back towards $100 USD. The decrease in bitcoin volatility may be an attractive indicator for some investors anxious about the price swings of cryptocurrencies. The Introduction of futures contracts and the increase in institutional support from large investment banks such as Goldman Sachs may be a few reasons why bitcoin continues to stabilize and slowly grind higher. Read the full article here. |
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Canada is Emerging as a Leading Crypto NationApril 29, 2018 – Canada makes for an attractive crypto nation primarily due to its lower energy costs, fast internet speeds, consistent innovation, and favourable regulatory backing. Currently, Canada is ranked third globally for embracing the blockchain. Even the founder of the Ethereum Blockchain, Vitalik Buterin, hails from Toronto, Ontario. His Ethereum technology continues to be a leading protocol for smart contracts and other decentralized functionalities. Cryptocurrency mining continues to be one of Canada’s largest opportunities. According to Hydro Quebec, the province produces a surplus of energy equivalent to 100 terawatt hours over 10 years, which in turn offers some of the most attractive electricity rates in all of North America. Cryptocurrency mining companies from around the world continue to come in droves to the attractive mining province. Read the full article here. In regards to crypto regulations, provincial regulators such as the OSC continue to show support for Canadian crypto efforts, approving a number of blockchain and crypto related funds, including terms and conditions for 3iQ to manage the Global Cryptoasset Fund over the last few months. Read the full article here. |
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Leading Crypto Exchange Coinbase Prepares for Huge TradingMay 4, 2018 – One of the leading cryptocurrency exchanges, Coinbase, has been up to some big things over the last few years. The company has reportedly doubled the size of its engineering staff, and has revamped much of its platform’s code. When factoring in contractors, the company now has about 1,000 people on board, with about 20% of those working in compliance. Coinbase has also reported that it has traded around $150 billion USD in assets, and has received over $225 million USD in funding. The company has also reported that it is preparing for more institutional interest in cryptocurrencies. During its acquisition of Earn.com, the company estimated internally that they are worth about $8 billion USD. “More people are starting to realize that this is foundational and you have the best and brightest in crypto running to build applications,” COO Asiff Hirji said. “If you believe that, It’s not surprising to see ever increasing volumes and record transactions.” Read the full article here. |
