June 18 – 24, 2018 | Federal Reserve, Goldman Sachs & More Crypto News

North iQ Weekly Newsletter is curated to provide insights on digital asset industry developments, market announcements, and performance analysis.

Cryptocurrency Index Gets Launched by US Federal Reserve

June 22, 2018 – The Federal Reserve Bank of St. Louis has reportedly added cryptocurrencies to its data tracking system. The Federal Reserve Economic Data (FRED) database has added four of the top cryptocurrencies, including bitcoin, ether, litecoin, and bitcoin cash. The Federal Reserve is utilizing price data from the popular cryptocurrency exchange (and 3iQ custodian) Coinbase. The new Coinbase index on the FRED database is the first of its kind for the Federal agency; although, the inclusion and acceptance of cryptocurrencies remains unseen from the other 11 regional banks within the Federal Reserve system.

Efforts from the Federal Reserve Bank of St. Louis appear positive for the top cryptocurrencies. It is unclear whether Coinbase will introduce new cryptocurrencies to their exchanges, and whether the Federal Reserve will include the new cryptocurrencies to the index as they become available on Coinbase’s exchange. Coinbase has been reluctant to add additional cryptocurrencies to their exchange, previously emphasizing the importance of network size, liquidity, and decentralization as deciding factors for listing.

Read the full article here.

Do Cryptocurrencies Belong in a Client Portfolio?

June 17, 2018 – Keith Costello, President and CEO of the Canadian Institute of Financial Planning (CIPF) and the Canadian Institute of Financial Planners (CIFPs), has provided some of the most important steps for investment advisors to take before determining if cryptocurrencies should be in a client portfolio. As a first step, Costello notes that investment advisors need to understand what cryptocurrencies are. To simplify, he recognizes cryptocurrencies as electronic cash that require peer-to-peer exchanges, which are conducted mostly on decentralized blockchains. The next step for an advisor would be to highlight the advantages and disadvantages of certain cryptocurrencies. Some of the advantages could be their lack of settlement charges, transaction fees, and their ability to not be hacked.

The final step for an advisor would be to consider if cryptocurrencies should be used for strategic allocation purposes, such as protection against macroeconomic risks – similar to gold. Advisors need to understand that most cryptocurrencies have little correlation to traditional markets, insulating client portfolios under market volatility. Cryptocurrencies may also have long-term potential as being competitors to traditional fiat currencies. Diversification into cryptocurrencies that have no ties to any government or capital market, in theory, could be a valuable tool for advisors.

Read the full article here.

3iQ is proud to work with Canadian advisors who have taken the time to be more knowledgeable in the blockchain and cryptoasset space, and those who are looking to improve their knowledge for the benefit of their clients. 3iQ offers “roundtable” education sessions to advisors to improve the understanding of blockchain basics and cryptoasset networks, as well as investment rationale for this asset class.

For more information, call or email us using our contact information here.

Goldman Sachs is Looking Beyond Bitcoin Futures Trading

June 20, 2018 – David Solomon, Chief Operating Officer of major investment bank Goldman Sachs, notes that the firm is exploring other forms of cryptocurrency trading in addition to their publicly-traded derivatives they handle now. Solomon believes that the firm must “evolve its business and adapt to the environment”. Solomon, who is also the president of Goldman Sachs, is on track to be the successor of Lloyd Blankfein as the firm’s CEO. Goldman Sachs is one of the first major investment banks taking the plunge into cryptocurrencies, while many of the world’s biggest financial firms still are still struggling to decide if the current $284 billion dollar cryptocurrency market is a threat or opportunity to the existing global financial system. Goldman Sachs’ cryptocurrency trading desk is apparently gearing-up to be in business by the end of the month.

“We are clearing some futures around Bitcoin, talking about doing some other activities there, but it’s going very cautiously,” said Solomon. “We’re listening to our clients and trying to help our clients as they’re exploring those things too.”

Read the full article here.

Circle CEO: All Global Currencies Will Become Cryptocurrencies

June 19, 2018 – Jeremy Allaire, co-founder and CEO of Goldman-backed Circle, has envisioned that all global currencies may one day become cryptocurrencies. Allaire, who co-founded circle back in 2013, is looking to introduce a new cryptocurrency which is backed by the US dollar. Currently, the company offers an app powered by the blockchain, which allows users to send money for free, as well as invest in popular cryptocurrencies like bitcoin and ether. “Our focus with fiat stablecoins is we really think of it as a core building block for a crypto native global digital economy,” said Allaire. “Our interest is in how do we take all of the tasks involved in the financial industry and move those onto a crypto native infrastructure.”

Efforts to create “stablecoins” have mostly remained controversial, especially “tether” – which has come under investigation for its claimed US dollar backed-cryptocurrency. While bitcoin prices remain more volatile than currencies like the US dollar, most of the current $284 billion dollar cryptocurrency market uses bitcoin as a way to value other cryptocurrencies. Due to most exchanges only offering (/BTC) pairings, bitcoin may have already taken the place of the US dollar of the cryptocurrency market. “Stablecoins” may only be an alternate way of valuing cryptocurrencies, as they are not commonly traded on major cryptocurrency exchanges.

Read the full article here.

Everything You Need to Know About Cryptocurrency Exchanges

June 19, 2018 – Bloomberg has provided a number of questions and answers of interest to investors about cryptocurrency exchanges. Additionally, the article compares traditional stock exchanges to cryptocurrency exchanges seen today. Emphasis has been put on the importance of exchange hackability, referencing the risk of overseas exchanges such as Coincheck and their recent hack. Underlying blockchains and cryptoassets such as Bitcoin and Ethereum have never been hacked, but bitcoin and ether have been stolen from cryptocurrency exchanges. The article notes that investors can protect themselves by using “cold storage”, which is essentially cryptocurrencies stored offline in digital drives which have no access to the internet.

Ongoing regulations are also notably mentioned in the report, citing a number of federal efforts from countries such as Japan, China, and England and comparing their differences. Many countries and regulators have issued warnings to investors on volatility, scams, and other risks associated with cryptocurrency exchanges. Although not noted in the article, last week, the Department of Finance Canada released a Regulatory Impact Analysis Statement that proposes amendments to Canada’s current AML and ATF policies. The department is expecting to recognize Canadian crypto exchanges as money service businesses (MSBs), meaning they will have to report all trades over $10,000 CAD.

Read the full article here.

3iQ Global Cryptoasset Fund: Price as at June 22, 2018

3iQ is the first regulator approved multi-cryptoasset portfolio manager in Canada, providing accredited investors with exposure to bitcoin, ether, and litecoin through its 3iQ Global Cryptoasset Fund.

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This Weekly Cryptoasset Newsletter is for informational purposes only and does not constitute, either explicitly or implicitly, any provision of services or products by 3iQ Corp (“3iQ”). Investors should determine for themselves whether a particular service or product is suitable for their investment needs or should seek such professional advice for their particular situation.3iQ Corp. makes no representation or warranty to any investor regarding the legality of any investment, the income or tax consequences, or the suitability of an investment for such investor. All content is original and has been researched and produced by 3iQ unless otherwise stated therein. No part of the content may be reproduced in any form, or referred to in any other publication, without the express written permission of 3iQ. All statements made regarding companies, securities or other financial information contained in the content or articles relating to 3iQ are strictly beliefs and points of view held by 3iQ and are not endorsements of any company or security or recommendations to buy or sell any security. No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. By visiting and/or otherwise using the 3iQ website in any way, you indicate that you understand and accept the terms of use as set forth on the website and agree to be bound by them. If you do not agree to the terms of use of the website, please do no access the website or any pages thereof. Any descriptions of, references to, or links to other products, publications or services does not constitute an endorsement, authorization, sponsorship by or affiliation with 3iQ with respect to any linked site or its sponsor, unless expressly stated by 3iQ. Any such information, products or sites have not necessarily been reviewed by 3iQ and are provided or maintained by third parties over whom 3iQ exercises no control. 3iQ expressly disclaims any responsibility for the content, the accuracy of the information, and/or quality of products or services provided by or advertised on these third-party sites. The information contained herein, while obtained from sources believed to be reliable, is not guaranteed as to its accuracy or completeness and confers no right on purchasers. Past performance of cryptoassets is not indicative of future performance and should not be used to forecast any return that an investor may realize.

Fred Pye

Frederick T. Pye


Frederick T. Pye is the Chairman, Chief Executive Officer and Director of 3iQ Corp. He is also the Chairman and Director of 3iQ Digital Holdings Inc. Mr. Pye is recognized for creating and promoting creative and unique investment products for the investment industry.

Mr. Pye has managed private client portfolios with Landry Investment Management and various other investment dealers. Prior to this Mr. Pye was Founder, President & Chief Executive Officer of Argentum Management and Research Corporation, a company dedicated to managing and distributing quantitative investment portfolios including the first long-short mutual fund in Canada.

He was also Senior Vice-President and National Sales Manager of Fidelity Investments Canada and an integral part of the team that saw assets rise from $80 million to over $7.5 billion in assets under management during his tenure. He also held various positions with Guardian Trust Company, which listed the first Gold, Silver and Platinum Certificates on the Montreal Exchange.

Mr. Pye obtained a Masters in Business Administration from Concordia University.