December 10 – 16, 2018 | Börse Stuttgart, Atomic Swaps & More Crypto News

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

First Cryptocurrency ETP Trades in Switzerland, Shows Notable Volume Despite Low Prices

December 12 – The cryptocurrency exchange traded product (ETP) on Switzerland’s Zurich-based SIX Exchange that began trading last month, the Amun Crypto Basket Index (SIX:HODL), hasn’t gone unnoticed by traders. Despite the dip in cryptocurrency prices this month, notable volume has been present on the exchange. The Amun Crypto Basket Index (SIX:HODL) offers exposure to the four cryptocurrencies, which include bitcoin, ether, ripple, and litecoin. Alex Mashinsky, the CEO of the blockchain-based payment network Celsius, believes that institutions world-wide and family business offices that are looking to add digital currencies to their portfolios could benefit from exchange traded products on regulated exchanges.

“Many do not know how to buy and hold such assets or don’t want to touch the underlying asset. Because of this, many ETF, ETN and ETP products have been launched over the past three years. Each jurisdiction has its own rules and regulations. As well, many new funds have not yet been approved and are pending before regulators. As such, there is more demand than supply for such products. There is also a shortage of regulated custodians these institutions can use to buy and hold such assets, which creates even more demand for such derivatives”.

Read the full article here.

Canada Could be Well-Positioned for the World’s Digital Asset Transformation

December 12 – Canada is known for a strong history of innovation, and over the next few decades, digital assets could transform the global economy. Large multinational companies have begun developing blockchain and digital assets, and Canada could run the risk of falling behind. Financial institutions such as Fidelity and VanEck are starting to invest more in cryptocurrency projects. On top of financial institutions, large enterprises such as Delta Airlines and FedEx are developing blockchain to improve many aspects of their operations. Even social media companies such as Facebook now have several blockchain job openings.

The fundamentals for blockchain and digital assets are compelling for investors and developers. In addition to investable projects, people from countries such as Canada could be well-positioned to take part in the blockchain development industry. Ethereum, a Canadian-made project co-founded by Vitalik Buterin, a Toronto-native, has approximately 200,000 developers building on its native computing language. Just two years ago, the total cryptoasset market had just a combined value of around $13 billion USD. In Q3 2018, Ethereum had a market capitalization around $24 billion USD.

Read the full article here.

World-first ERC-20 to Bitcoin “Atomic Swap” Takes Place on Lightning Network

December 12 – On December 7 at the TenX Summit, a team of developers announced that they had successfully conducted an industry-first atomic swap over the Lightning Network with a non-native asset, which was TenX’s PAY token and the native asset which was the cryptocurrency bitcoin. Non-native refers to a digital asset that is not the “base” currency; for example, Ethereum’s native asset is ether. CoBloX, which is TenX’s research and development lab, was the team behind the atomic swap. The team demonstrated their work to audience members at the summit by using the Lightning Network and their own software, COMIT, to atomic swap 10 PAY for 71,240 satoshis.

This swap was not as simple as the world-first ether to bitcoin atomic swap using the Lightning Network which the team had successfully conducted earlier this year. This time, the hashed time lock contract (HTLC) only required a “single use” smart contract, but the PAY to bitcoin swap took an extra step. “Unfortunately, we couldn’t figure out how to combine these two steps. The ERC20 transfer function uses msg.sender for authentication. However, calling transfer from a contract deployment sets msg.sender to the address of the yet-to-be-deployed contract which obviously has no tokens”.

Read the full article here.

SEC Official Notes Some Flexibility on ICOs

December 14 – Some ICO projects may be allowed to bypass U.S. securities registration requirements by obtaining “no-action letters” directly from the Securities and Exchange Commission (SEC), according to the SEC Official Valerie A. Szczepanik. On December 13, at a gathering in New York hosted by the Wall Street Blockchain Alliance (WSBA), the SEC official Valerie A. Szczepanik noted letters such as these, while uncommon, still are granted in certain circumstances.

Usually, token issuers have just three options if they wish to conduct an initial coin offering. According to Szczepanik, they can register it as a securities offering, apply for an exemption from the SEC, or “make sure they’re not a security”. “I think that’s a way forward for a lot of people who want to implement some of these things that may not exactly fit in the format of the rules that we want,” said Szczepanik.

Read the full article here.

Germany’s Second-Largest Exchange Operator to Launch Cryptocurrency Exchange

December 12 – Germany’s second-largest stock exchange operator, the Boerse Stuttgart Group, plans to launch a cryptocurrency exchange sometime in early 2019. On December 12, the exchange operator announced that it has partnered with the German fintech company solarisBank to build the infrastructure to allow digital assets trading. solarisBank operates with a banking license in Germany and be providing Boerse with banking services for the venture.

At launch, only bitcoin and ether trading will be possible, and new token listings may arrive sometime in the future. All market participants will be able to trade on Boerse Stuttgart’s cryptocurrency exchange platform during the launch. Benefits of this exchange could be the presence of deep and open order books and security through proper compliance and adherence to regional laws. “With its combination of technology and banking expertise, solarisBank is a great partner for us to offer central services along the value chain for digital assets,” said Alexander Hoptner, the CEO of Boerse Stuttgart.

Read the full article here.

3iQ Global Cryptoasset Fund: Price as at December 14, 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.