Tag: Cryptocurrency

Cryptocurrency

Back to the Futures: Giving Institutions a Reliable Way to Capitalise on Cryptocurrency

By Obi Nwosu, the CEO and co-founder of the cryptocurrency exchange, Coinfloor, 

It has been a challenging financial environment for investors since the financial crisis, and difficult to achieve returns on deposits and short term investments. In response to this, many have been seeking alternative investment vehicles to diversify their portfolios. Bitcoin is never far from the media headlines – but what will it take to convert this volatile retail bet into a viable investment option?

The key lies in stablising its price. Cryptocurrency is, of course, decentralised, which means there is no central authority putting measures in place to govern its price or manage volatility. This instability is currently preventing cryptocurrency from acting as a store of value, and subsequently achieving its originally intended purpose as the future of money.

Exclusive: OTCXN Acquires Ogg Trading

OTC Exchange Network (OTCXN), which uses proprietary blockchain technology in a bid to eliminate trading counterparty and settlement risk on their trading network, has acquired Ogg Trading, a provider of FX trading technology.

Through this deal, which closed on June 18, 2018, OTCXN will acquire all Ogg Trading’s technology including the dark pool that it previously ran in partnership with Bloomberg. The dark pool is a complete matching engine technology stack. The plan is to add market data publishing to this platform in order to create a regular central limit order book (CLOB) with a lit pool of liquidity. Ogg Trading also has a liquidity aggregator and smart order router (SOR) system that can be deployed to run a quote driven market place.

Thomson Reuters Expands Cryptocurrency Sentiment Data Tracking

Thomson Reuters (TR) announces the expansion of its sentiment data offerings to track the top 100 cryptocurrencies through its partnership with MarketPsych Data, a firm that focuses on quantitative behavioral science.

The new MarketPsych Indices (TRMI) package uses machine learning and natural language processing to measure a breadth of emotional and topical items across news and social media sites that may drive market participant behaviour in cryptocurrency markets. The firm claims the addition is notable because online communications and information flow are more significant drivers of cryptocurrency value than they are for traditional financial assets.

Bitcoin Tumbles After South Korean Exchange Hack

The value of bitcoin dropped from from $7,256 to a low of $6,651 on Sunday night, following the news that the South Korean cryptocurrency exchange, Coinrail, was hacked over the weekend.

In a statement on its website on Monday, Coinrail confirmed that there was a “hacking attempt” on June 10.

The statement continues: “At present, 70% of your Coinrail total coin/token reserves have been confirmed to be safely stored and moved to a cold wallet and are in storage. Two-thirds of the coins confirmed to have been leaked are covered by freezing/recalling through consultation with each coach and related exchanges. The remaining one-third of coins are being investigated with investigators, relevant exchanges and coin developers.”

Coinrail says that the exact extent of the hacking is still be determined.

What’s Keeping Institutional Money Away from Cryptos?

Uncertainty about regulations, a lack of trusted custodians and concerns about security are key factors that continue to deter many large financial institutions from trading cryptoassets, says Kevin Beardsley, a managing partner at B2C2.

Amongst these three factors, Beardsley cited the lack of regulatory clarity around cryptoassets as the biggest issue for these firms right now, pointing out that no major bank wants to clash with their regulators for trading in what is, relatively speaking, still a small marketplace.

“The large institutions are all waiting for the regulations to become clear, which is a very rational approach,” he says.

Survey: Derivatives Trading to Grow Despite Rising Costs

In a new survey conducted by the International Swaps and Derivatives Association (ISDA), a majority of respondents said that they expect derivatives volumes to stay flat or increase in the future, despite also predicting that the cost of trading these products will increase.

Asked about their expectations for overall derivatives activity, 83% of those surveyed said that they thought volumes will increase or remain the same over the next three to five years.

The same proportion felt end-user activity will rise or remain unchanged over the same period. When asked to rate their optimism about the future of derivatives on a scale of one to 10, with 10 being the most optimistic, 65% opted for between seven and 10.

P&L Talk Series with CoVenture’s Ali Hamed & Nikhil Kalghatgi

CoVenture operates a venture capital firm, a direct lending business, and CoVenture Crypto, a cryptocurrency asset management firm run by co-founders Ali Hamed and Nikhil Kalghatgi. CoVenture Crypto operates multiple strategies and is backed by a large, publicly traded financial institution. Ali Hamed: During my freshman year at Cornell, I launched a software startup, and after that I started doing Angel investing. I didn’t have the capacity to write anything larger than a $25,000 check at a time and would find that when I tried to invest in people, they’d say the money was great, but what they really needed was help building the product. That made us think about how ridiculous the venture capital business model is – where you put $50 million into a fund and give out $1 million at a time to kids who can code and hope they can start a company – it just made no sense to us.

Coinfloor Launches Cryptocurrency Futures Exchange

Coinfloor, a group of cryptocurrency exchanges targeting institutional and sophisticated retail traders, has launched CoinfloorEX – a cryptocurrency futures exchange.

CoinfloorEX will offer for the first time ever physically delivered cryptocurrency futures contracts, which the firm says will protect investors and traders against price slippage on positions at time of settlement, as well as allay concerns of market manipulation.

“The cash settled futures have been around since 2011 and so far they haven’t succeeded very much. When you talk to the institutional players they all want physically delivered futures,” says Mark Lamb, co-founder of Coinfloor.

Trading Firm Launches Cryptocurrency Index Fund

Hehmeyer Trading + Investments, a proprietary trading firm based in Chicago, has launched a new fund aimed at providing certain qualified investors access to the cryptocurrency market.

The fund aims to track the performance of the proprietary Hehmeyer Cryptocurrency Index (HCI).

Launching as a commodity pool for qualified eligible persons and accredited investors, the fund will be managed by Hehmeyer Capital Management, LLC, a commodity pool operator registered with the Commodity Futures Trading Commission (CFTC) and a member of the National Futures Association (NFA).

Thomson Reuters Launches Bitcoin Sentiment Data Feed

Thomson Reuters, through its partnership with MarketPsych Data, has launched a new version (v3.0) of its MarketPsych Indices (TRMI), which includes its first sentiment data feed for Bitcoin.

It also includes and/or enhanced market sentiment data for several asset classes, new user capabilities, and additional coverage.

Over 400 news and social media sites, many specific to cryptocurrencies, were added to the feed. Each site is scanned and scored in real-time, aiming to capture market-moving sentiments and themes. TRMI v3.0 also includes expanded sentiment coverage of national fixed income securities and stock market indexes for the top 61 global economies and the Eurozone.  Coverage was also further expanded in the currencies, countries, and agricultural commodities asset classes.