September 3 – 9, 2018 | Goldman Sachs, Crypto Growth & More Crypto News

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

Goldman Sachs CFO: No Crypto Trading Desk is “Fake News”, Plans a New Bitcoin Derivative

September 6 – Martin Chavez, the chief financial officer at Goldman Sachs, has announced at a conference that there has been “fake news” spreading about the company’s cryptocurrency ambitions.  A Business Insider article earlier last week reported that Goldman Sachs had cut its plans to open a cryptocurrency trading desk, helping fuel a weekly decline in most major cryptocurrency prices. Chavez reiterated the major investment bank’s current cryptocurrency endeavors, which includes a new type of derivative that has arisen due to client interest. Goldman Sachs is reportedly working on “non-deliverable forwards” for bitcoin, which are over-the counter-derivatives settled in US dollars, referencing BTC/USD prices across a set of exchanges.

I never thought I would hear myself use this term but I really have to describe that news as fake news,” said Chavez. “Maybe someone who was thinking about our activities here got very excited that we would be making markets as principal and physical bitcoin, and as they got into it they realized part of the evolution but its not here yet.” Chavez also re-affirmed that Goldman Sachs is still moving forward on a cryptocurrency custody service, but working with physical bitcoins still proves to be a challenge for the firm. “Physical bitcoin is something tremendously interesting, and tremendously challenging,” said Chavez. “From the perspective of custody, we don’t yet see an institutional-grade custodial solution for bitcoin, we’re interested in having that exist and it’s a long road.”

Read the full article here.

Ethereum Co-Founder: Crypto Growth at a “Ceiling” as Growth Turns to Adoption

September 8 – Vitalik Buterin, the co-founder of Ethereum, has expressed doubts about the potential for another “1,000-times” growth run in the cryptocurrency market. The Toronto-native was at an Ethereum and blockchain conference in Hong Kong when he discussed that cryptocurrencies are at a new level of growth: one that is based on the adoption of real applications used by real people, rather than one that is based on speculation of cryptocurrencies for their returns. Buterin believes that it is up to the blockchain community to start getting involved with adopting and utilizing cryptocurrencies in real world scenarios, such as paying for items with cryptocurrencies. This past week, ether breached $200 USD to the downside across numerous exchanges. Acting as the “fuel” of the Ethereum blockchain, many ICOs and other projects that use the Ethereum blockchain need to own ether in order to operate.

“The blockchain space is getting to the point where there’s a ceiling in sight. If you talk to the average educated person at this point, they probably have heard of blockchain at least once. There isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore”, said Buterin. However, Buterin noted that Ethereum may turn around if new developers ‘en masse’ select the Ethereum blockchain for future projects.

Read the full article here.

Small Canadian Ghost Town Gets Boosted by Bitcoin Mining

September 4 – Ocean Falls, a small town on the coast of central British Columbia, has gotten a boost from Bitcoin mining. Ocean Falls, dubbed as a “ghost town”, has an average population per year of under 100 residents. The town is situated near a large dam that powers two other small towns, Bella Bella and Shearwater. Even during the coldest winter months, the towns combined only use less than a third of the energy output of the dam, opening opportunities for new power-hungry businesses. Additionally, the dam is not connected to any gird, essentially making the excess power useless. Unlike many dams in British Columbia, the one situated near Ocean Falls is owned by a private company called Boralex, not BC Hydro.

Over the last few years, employees at Boralex, the private company that owns the dam, started receiving many phone calls from prospective Bitcoin miners. Brent Case, the operations manager at Boralex, noted that a Vancouver-based businessman named Kevin Day took up the opportunity, and completely transformed the town’s deserted paper mill into a bitcoin mining operation. A local resident labeled the cryptocurrency mining operation a “victory” for the town. “The day we fired up, the miners started going, there was the humming, and I said to Kevin, ‘It’s a good feeling seeing that extra power being used’.”

Read the full article here.

Coinbase in Talks With BlackRock for a Bitcoin ETF

September 8 – Major cryptocurrency exchange and service provider Coinbase has reportedly asked for help from BlackRock’s blockchain working group on creating a Bitcoin ETF. Despite the US Security and Exchange Commission (SEC) denying or delaying approvals of several Bitcoin ETFs to date, Coinbase will now join the likes of VanEck, Bitwise Asset Management, and Gemini in getting the first cryptocurrency ETF to the market. BlackRock, which manages approximately 7 trillion USD in assets, previously reported that the company was not exploring crypto products due to lack of client interest. The efforts from Coinbase to seek help on releasing a Bitcoin ETF from BlackRock may indicate that BlackRock is finally starting to open up to cryptocurrency-related products.

Sources who were familiar with the matter said that it remains unclear whether the talks were just a one-time occurrence, or if it was part of an ongoing conversation between Coinbase and BlackRock. According to BlackRock’s blockchain group representatives, they didn’t give any solid recommendations to Coinbase. Regardless of the outcome, it is becoming more clear that traditional market players are eyeing the opportunities still present in cryptocurrencies.

Read the full article here.

Bitfury is Utilizing “Magic Baths” to Keep Miners Cooler, Smaller

September 5 – Bitfury, one of the leading infrastructure companies in the Bitcoin mining industry, has created a fix to the everlasting issue of hardware cooling. The company’s 40 megawatt plant in Tbilisi, Georgia is designed to host their mining hardware submerged in non-conductive liquid called Novec. Since this alternative cooling option does not need ventilation or water-cooling pipes, it significantly reduces the total size of the mining operation. With the use of Novec, the cost of cooling is also significantly diminished by upwards of 95%.

“We realized early on that high-powered data centers would be used for everything from internet searches to securing the Bitcoin blockchain,” said Bitfury’s Chief Executive Officer, Valery Vavilov. Kar-Wing Lau, the founder of Allied Control, who’s immersion-cooling systems got acquired by Bitfury, said that the technology reduces the space required to house a mining operation by one-third.

Read the full article here.

3iQ Global Cryptoasset Fund: Price as at September 7, 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.

Share This Story!

Subscribe to the North iQ Weekly Newsletter and What Happened in Bitcoin & Ether? reports and stay updated on 3iQ’s news, announcements and developments in 2022.

Subscribe to the Monthly Fund Updates for all of 3iQ’s fund performance profiles.

Subscribe to Research papers and Blogs for recaps and insights on digital asset industry developments, and bitcoin & ether performance analysis.

Related Posts

March 15, 2022 | North iQ Newsletter

El Salvador may reportedly be the first country to ever issue debt backed by bitcoin (BTC) this week. The issuance could mark a major milestone

February 25, 2022 | North iQ Newsletter

The Role of Digital Assets in RRSP Season Investors are increasingly relying on ETF products to gain exposure to certain asset classes, such as digital

February 18, 2022 | North iQ Newsletter

Incremental Allocation to bitcoin (BTC) Over the last five years, traditional 60/40 equity and bond portfolios which had allocated to bitcoin (BTC) performed well compared to


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.