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Bitwise Crypto Index Fund Axes Its XRP Holdings

Bitwise Asset Management, a leading crypto fund manager since 2017, issues this release to announce that the Bitwise 10 Crypto Index Fund (OTCQX: BITW) (the “Fund”) has liquidated its position in XRP.

On Tuesday, December 22, the U.S. Securities and Exchange Commission (“SEC”) filed an action in the United States District Court for the Southern District of New York alleging, among other things, that XRP is a security subject to the registration requirements of the federal securities laws.

The Bitwise 10 Crypto Index Fund does not invest in assets that are reasonably likely to be deemed securities under federal or state securities laws. Bitwise’s decision to liquidate its position in XRP was based on consideration of new public information from the SEC’s complaint.

Prior to the sale of the asset on December 22, 2020, XRP was approximately 3.8% of the Fund. The Fund liquidated its position and reinvested the proceeds in other cryptocurrencies for its portfolio.

Bitwise is issuing this release in accordance with the disclosure obligations of OTCQX®. The Fund’s Annual Report, published to satisfy the Alternative Reporting Standard disclosure guidelines for OTCQX® and OTCQB, discloses the significant risks associated with an investment in the shares.

Investors are encouraged to read the Annual Report and carefully consider these and other risks, including the fact that if any of the assets held by the Fund are determined to be a “security” under federal or state securities laws by the Securities and Exchange Commission (“SEC”) or any other agency, or in a proceeding in a court of law or otherwise, it may have material adverse consequences for the Fund and the BITW shares.

Bitwise Asset Management is a leading provider of crypto index and beta funds. Based in San Francisco, Bitwise’s team combines expertise in technology with decades of experience in traditional asset management and indexing—coming from firms including Facebook, Google, Wealthfront, BlackRock, Fidelity, Deutsche Bank, IndexIQ, and Bitwise is backed by leading institutional investors and asset management executives, and is a frequent commentator on crypto in the press. It has been profiled in Institutional Investor, CNBC, Barron’s, Bloomberg, The Wall Street Journal, The New York Times, and many other leading publications. The firm is a trusted partner to financial advisors, RIAs, multifamily offices, hedge funds, and other professional investors as they navigate the crypto space.

Recently there has been an interesting development in the world of the futures and options markets; the creation of the new futures and options marketplace called the “Bitcoin Fund”. This is not your typical conventional futures broker dealer that you would deal with at your local brokerage firm. There are even a YouTube video showing the “how to get started” process that they have put together, as well as information on the dynamic nature of the market itself. As more businesses begin to explore the technology of virtual digital currency futures trading there will be those that venture into it’s very profitable business aspects.

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Institutional Investors Shun Ripple After SEC Lawsuit
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South Korea’s Hashed Launches Cryptocurrency Venture Fund

Blockchain-focused investment group Hashed, under the stewardship of its CEO Simon Kim, registered Hashed Ventures, Inc. in September and successfully raised $120 million in just three months.

Since 2017, Hashed cemented its position as the vanguard of the blockchain industry in South Korea. In addition to investing in seminal blockchain projects around the globe, Hashed evangelized and accelerated public blockchain projects for Asia’s biggest IT companies including Kalytn of Kakao and Link of Line. Recently, Hashed also announced its partnership with KB Kookmin Bank, the biggest bank in South Korea, to establish KODA, a holistic platform to manage digital assets for individual and corporate clients for the first time in the nation.

Through Hashed Venture Fund I, Hashed will be making investments in blockchain and other technology startups that can promote protocol economy. Originally conceptualized by Simon Kim, the term designates an open economy underpinned by independent and consensus-driven protocols that can reward participants more fairly and directly via digital assets. By strategically targeting problems faced by platform giants and investing in innovative solutions, Hashed aims to capture the potential growth of protocol economy’s future markets.

CEO Simon Kim shared, “By ushering in the era of protocol economy, the Korean domestic startup scene will witness the resurgence of the blockchain industry as well as its maturation market attracting both government and institutional support for the new paradigm.”

A recent article in the Financial Times listed several projects that are using the new distributed ledger technology to underpin their trading platforms: a London hedge fund that has already raised $125m, a Slovenia-based consortium led by Nisse Investor Group, and Singaporean exchange-traded fund called Bonaire Investment Management. The latter two projects represent the biggest participation so far in the open market, but cryptocurrency venture funds are only just starting to find their way into the mainstream of global finance. Cryptocurrency venture fund managers who are building companies on the bleeding edge of this new frontier realize that there are big opportunities ahead for those who can best utilize the technology in order to profit through it.

As we have noted before, a major part of the appeal of the new distributed ledger system that lies in the fact that it can be accessed, audited, and used by a wide range of participants in a distributed network. This is in contrast to the legacy banking system, which relies upon controlled and restricted access by a small number of trusted parties. Many of the largest cryptocurrency investors in the world currently use hedge funds to create additional funding for their businesses. If those same large investors are able to make their investments more transparent by providing a more comprehensive view of how their business models work, then they can truly follow-on funding to provide a supportive climate for budding companies.

An even more appealing aspect of this new distributed ledger technology is that it is capable of supporting a wide range of initial businesses – even if those businesses lack the ability to produce a profit. Even if a new company doesn’t manage to become profitable during its lifetime, the money that was raised by the venture fund will still have been recovered by the profits of the main shareholder. In fact, most hedge funds are structured as one continuous investment, with no specific periods of time when money is recovered. This ensures that the company does not miss out on any possible profits due to unwise investments during earlier periods. This can create a self-sustaining stream of income for many years to come, a much more reliable source of capital than that obtained through traditional means.

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U.S. Treasury Releases Regulatory Statement On Stablecoins

The United States President’s Working Group on Financial Markets, operating as part of the U.S. Treasury Dept. issued a “Statement on Key Regulatory and Supervisory Issues Relevant to Certain Stablecoins.” The President’s Working Group on Financial Markets is responsible for enhancing the “integrity, efficiency, orderliness, and competitiveness” of US financial markets.

According to the working group, the new regulations specifically target stablecoins:

“These requirements address a range of policy objectives, including safety and soundness, countering illicit finance, end-user protection, and market integrity. In particular, stablecoin arrangements with greater potential scale, complexity, and interconnectedness should consider.”

Why is the Group Considering the Regulation?

The document states that the group views stablecoins as a potential regulatory risk. The document states:

“Depending on its design and other factors, a stablecoin may constitute a security, commodity, or derivative subject to the U.S. federal securities, commodity, and/or derivatives laws. If so, the federal securities laws,3 and/or the Commodity Exchange Act (“CEA”),4 would govern the stablecoin itself, transactions in, and/or participants involved in the stablecoin arrangement. Whether a stablecoin is a security, commodity, or derivative will depend on the relevant facts and circumstances.”

All stablecoins won’t be considered securities or derivatives, but they may be depending on their makeup.

This statement is significant given the members that make up the President’s Working Group of Financial Markets. They include the Secretary of the Treasury, the Chairperson of the Board of Governors of the Federal Reserve, the Chairperson of the Commodity Futures Trading Commission, and the Chairperson of the Securities Exchange Commission (SEC).

One notable member is SEC Chairperson Jay Clayton, who, as head of the watchdog, was involved in the recent charges brought against Ripple. On Wednesday, the SEC filed a suit against Ripple and two of its top executives for conducting an unregistered sale of securities.

The SEC states that they perceive XRP, the native currency of the Ripple network, to be a security and not a currency like bitcoin or ethereum.

This classification means that Ripple, it’s co-founder, and current CEO are responsible for the sale of unregistered securities and will be held accountable.

As the cryptocurrency market continues to mature, regulatory bodies will likely scrutinize cryptocurrencies with additional oversight.

What is a Stablecoin?

Summary: Stablecoins are a new class of digital currency. Although the concept of stablecoins was considered years ago, only recently has it received widespread attention. Stablecoins refer to a collection of currencies that derive their value solely from an external reference point. Stablecoins can best be classified on the basis of their underlying working mechanisms, namely, Fiat-collateralised, algorithmic, and cryptohash-based stablecoins. The Fiat-Collateralised variety are the most widely recognised stablecoins as they trade against financial instruments like credit and deposit bills. The algorithmic variety of stablecoins, on the other hand, trade against a basket of global currencies (the basket of which they are traded) and are not linked to any particular financial instrument.

One of the advantages associated with stablecoins is their use as an asset. By understanding which option provides the best fit for your circumstances, you will be able to effectively hedge against any potential financial setbacks. When looking at buying, selling, or trading a stablecoin, it is important to consider the factors surrounding the particular coin. Another factor that is crucial is to determine whether one wants to purchase, sell, or trade non-collateralized stablecoins – these are coins that are not backed by any collateral such as certificates of deposit or bank notes. Finally, it is important to consider whether one wants to invest in algorithmically-derived stablecoins (which trade on algorithms instead of actual commodities) or non-algorithmic stablecoins (which trade based on supply and demand fundamentals).

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ETH2 Staking Reaches 4th Largest

Ethereum 2.0 has already emerged as the fourth-largest proof-of-stake network by total value locked in staking within roughly six weeks of the Eth2 deposit contract going live.

Despite withdrawal functionality not yet enabled and no precise estimation for its full launch date, nearly $1 billion worth of Ether (ETH) has already been designated for staking. According to crypto data aggregator Staking Rewards, more than 1.5 million Ether or 1.35% of Ethereum’s supply has been deposited for staking.

Ether staking rewards are currently estimated at approximately 13.20%, meaning that a single stake of 32 ETH would earn $2,530 over one year at the current price of around $600.

Polkadot, the brain-child of Ethereum co-founder Gavin Wood, is currently the largest staking network by total value locked. Since Polkadot’s mainnet launch in May, the network has seen 67.51% of its supply designated for staking, valued at nearly $3.4 billion. Cardano, a rival network from fellow Ethereum co-founder Charles Hoskinson, ranks as a close second, with 65.53% of its supply locked since July for a staking TVL of $3.37 billion. 

Tezos launched staking in 2018, and has the highest rate of network participation among staking networks ranking among the top 50 crypto assets by capitalization with 79.43%. Tezos has a current staking cap of $1.38 billion. Since its mainnet launch last year, Cosmos has also emerged as a top proof-of-stake network, with 71.77% of its supply locked up for a staking TVL of $915,593,114.

While Ethereum 2.0’s developers are yet to provide a precise date for when users will be able to withdraw their staked Ether, staking service provider Rocket Pool recently estimated the function may go live during the first quarter of 2021.

If you have been pondering about getting into the world of smart contract technology or maybe you are just thinking of getting into the best cryptocurrency opportunity for the first time, one of the things that you might be wondering is whether or not it would be beneficial to start a crypto staking plan. Taking into account the info above, the answer is that it certainly can be.

Cryptocurrency News Ripple News

XRP Bulls Run For The Exits As Price Crashes 40% In One Day

Digital currency markets have seen some volatile action this week and during the last 24 hours following the SEC lawsuit against XRP , a number of coins shed a great deal of value. XRP itself has dropped a mind-altering 40% just in the past 24 hours. Coins like golem (GNT -19%), time new bank (TNB -17%), mossland (MOC -17%), and iot chain (ITC -16%) saw decent percentage losses as well.

At the time of publication, the entire crypto-economy is valued at $629 billion and because XRP lost so much value, bitcoin’s dominance index has risen above the 68% mark.

Just recently, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs Inc. and two of its executives. According to the U.S. regulator’s complaint, Ripple Labs “raised over $1.3 billion through an unregistered, ongoing digital asset securities offering.” Since then, the price of XRP fell like a rock, losing nearly 40% during the last 24 hours of trading sessions since the SEC announcement. The XRP plunge has also tugged a number of other crypto-assets down as well during the trading sessions on December 23.

Is this the bottom of Ripple’s price crash?

The truth is that traders need to wait to see what happens. Even if the market is in its third day of declines, it may not have reached bottom yet. In the meantime, this can be used to the XRP bulls’ advantage by capitalizing on the opportunity before others do, and dollar-cost-averaging down to the final bottom. As the old saying goes, “Buy when there is blood in the streets.”

XRP has certainly been bloodied in the last 48 hours!

In the weeks leading up to the XRP price crash, many publications were predicting a fundamental change in the way that money is moved.  While some of these currencies did experience significant drops in value, most experienced increases in their value from buyers eager to get a position in these currencies. Even after this panic selloff in Ripple, the trend lines for all of the other top cryptocurrencies remained highly bullish, indicating that this is a dynamic market with significant potential to move higher in the near term.

There are a number of factors that have combined to create a very volatile history for the leading currencies, and if you’re an investor looking to get in on the action, it’s important to understand how the XRP crash happened and what you can do today to maximize your profits. Among the top four currencies, ether and bitcoin are hanging on to their recent gains.

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A Cryptocurrency Airdrop Provides Free Coins

A Cryptocurrency airdrop comes in two forms – Manual and automatic. The former is meant for the general users to have a look over the way the distribution will be carried out and monitor the distribution process itself; the latter is meant for the use of experts in the field, those who know how to manipulate the distribution in order to manipulate the price change. Automated Cryptocurrency airdrops are sent to all the wallets with the help of email notifications. The first kind of distribution is called the Delayed Distribution and as the name suggests, will be sent after a short period of time. The second kind, the Post-dated Distribution will be sent to the addresses registered after the expiry day specified in the contract.

The Recent Ripple Airdrop

Essentially, Ripple is adding Flare Network, a new protocol, to the XRP ecosystem. Flare Network will bring more support to owners of XRP tokens, specifically adding decentralized finance or DeFi functionality to the XRP ledger. As part of this, Flare Network has a native token, Spark (FLR). Over the weekend, any holders of XRP tokens received free Spark tokens. And after driving XRP prices up, it appears that the SEC Ripple lawsuit is now weighing on the crypto.

Still not sure exactly what this airdrop news is all about? DeFi functionality represents cutting out the middlemen from direct purchases, loans, betting, insurance and various other types of transactions. Decentralized finance is one of the biggest appeals of the crypto space — and up until now, most DeFi applications have run on the Ethereum (CCC:ETC) platform.

Now that XRP wants to differentiate itself, many bulls will likely appreciate that through Flare Network, XRP will be able to sustain smart contracts and bridge itself to existing Ethereum applications. For Ripple then, the Spark (FLR) airdrop is a way of kick-starting an important milestone.

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SEC Lawsuit Filed Against The XRP Firm

The Securities and Exchange Commission (SEC) has charged Ripple — the company closely associated with XRP — along with its executives Brad Garlinghouse and Christian Larsen for selling as well as the ongoing sale of over $1.3 billion worth of XRP to the public.

In the filing, the SEC charged since 2013 up to the present time, the defendants have sold over 14.6 billion XRP in return for cash or other consideration to fund Ripple’s operations. 

The SEC said Ripple never filed a registration document, and, therefore, it never provided investors with information all companies that sought investment from the public regularly supplied.

The SEC lawsuit alleges that Ripple broke securities laws by selling XRP directly to consumers across exchanges. According to the complaint filed by The Alliance for Financial Innovation (AFI), Ripple acted in bad faith by not requiring users to sign a disclaimer when offering the discounted currency. Additionally, according to the complaint, Ripple instructed investors to disregard the “Ripple Statement” which is issued by the SEC when promoting the discounted currency. In addition, the complaint claims that Ripple promoted the statement on its website and in emails to customers without disclosing that the advertising was deceptive and in violation of Securities and Exchange Commission (SEC) guidelines. As a result, for lack of any express requirement that customers sign a disclaimer or other agreement, investors have reportedly been sending money to the XRP office for their own private investments. As a result, due to the lack of a disclaimer, the SEC found that Ripple broke securities laws by advertising the discounted currency and not requiring users to purchase a product as a security in advance of making a purchase.

The SEC on Wednesday formally sued Ripple, alleging that its co-founder Christian Larsen and CEO Bradley Garlinghouse “created an information vacuum” that allowed them to sell XRP into a market that only had information they chose to share.

According to the SEC’s lawsuit, the duo ignored legal advice that the cryptocurrency could be considered an investment contract and therefore was a security.

“From a financial perspective, the strategy worked,” raising at least $1.38 billion “over a years-long unregistered offering of securities,” the SEC said. “Ripple used this money to fund its operations without disclosing how it was doing so, or the full extent of its payments to others to assist in its efforts to develop a ‘use’ for XRP and maintain XRP secondary trading markets.”

Larsen and Garlinghouse both fervently have denied the SEC’s allegations, publicly arguing that XRP is a currency and should not have to be registered with the SEC as an investment contract. The company has also questioned the lawsuit’s timing – SEC Chairman Jay Clayton is soon to step down – and said the U.S. government and other regulators had previously given XRP currency status.

CEO of Ripple
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The Ledger Wallet Database Hack

In the world of Cryptocurrency, the Ledger Wallet Database Hack is currently the most talked about. The news hit the web with a lot of headlines and images that scared many people into believing this was the next major financial scandal in America. But the truth is something totally different, this type of hack doesn’t involve Cryptocurrency itself. It’s all about password protection and keeping your information safe from unscrupulous people who want to use this for their own gain.

When the Ledger Wallet Database Hack first broke, many people were confused as to what exactly had happened and how it happened. But the real truth is that a group of hackers wanted to gain access to the database of some very important companies in order to find out information on where people were putting their money and what they were planning to do with it. They knew that some people wouldn’t be able to resist their dirty little tricks, so they made it even more difficult for them by hacking into people’s computer systems, taking personal information like passwords, usernames, and account numbers.

Thankfully, there were companies who took these hackers seriously enough to implement an effective system that protect against these types of attacks. These companies work by continuously monitoring the Ledger Wallet database to make sure that people are putting their information into the right places, and that no thieves are getting any information that they can steal. They also update the database on a regular basis to make sure that it stays secure and that people are still able to put their information into the program safely.

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Ether Futures Contracts Coming In February

The CME Group, a leading global commodities exchange company has announced the introduction of an ether futures contracts on February 8th, 2020 at 16:00 (BST). Each ether futures contract will have 50 units of each and each contract will trade between 5:00 a.m. and 5:30 p.m. CMT from Sunday to Friday. The contracts will utilize the CME CF trading index from CF Benchmarks, an eco indices service approved by the Commodity futures Trading Commission (CFTC). The CME’s ether futures contracts are accessible to CFD trading clients who have an account with the company or through its Web portal.

The CME is the platform for the execution of CFD trading, which is facilitated by CFD Trading Commission, which is controlled by New York Stock Exchange. According to ether future contracts’ overview, the CME’s ambition is to provide institutional investors with reliable, transparent and fast-priced markets which can be accessed 24 hours a day. Since CFD trading is an unregulated market, institutional investors will play a vital role in shaping and molding the future of this trading market. In order to take advantage of the opportunities offered by ether futures contracts, institutional investors have decided to purchase these contracts using margined trading platforms.

In their opinion, the high trading volumes to be synonymous with institutional trading. They also believe that future trends are predicted with a high degree of accuracy. Moreover, they feel that the transparency and credibility of the CME’s pricing data will provide investors with significant insight into the ongoing crypto trends. To conclude, they consider that the prices of ether will likely follow the trends that the CME is following and are predicting.

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Bitcoin Fund Update

One of the latest attempts to raise money for a start up venture in the digital currency space is the creation of the Bitcoin Fund, which will allow start up companies in the space to raise money without having to rely on venture capitalists. According to the documentation, the proposed fund would be classified as a private equity fund. However, Skybridge declined to reveal the total number of planned investments, but the required minimum from an individual investor would be $50,000. The offering would be under the SEC’s Reg D exclusion, which means that only those wishing to invest directly with the SEC can participate. Although participation in a venture capital fund has become increasingly difficult for new businesses, it is still possible to raise funds using the Reg D exception.

The proposal states that investors will receive the proceeds from the sale of a discounted percentage of the market price of one of many potential assets that are included in the proposed fund. While there is no guarantee that the selected sector will be a profitable one, it is expected that the management fee will be proportional to the profitability of the chosen investment. It is also not clear from the proposal how the investor would be compensated for the market to gain from the selling of the portion of the company’s stock included in the fund. This information should be clearly defined in the documentation accompanying the proposal, and if not, should be clarified in the shareholders’ agreement or operating agreement of the company.

The creation of the bitcoin fund is part of the wider effort by several large financial institutions to diversify their investment portfolio. In the past, hedge funds have generally focused on exchanging floating exchange rates between currencies, or on particular economic areas. The creation of the fund will allow more investors to participate in the exchange trading while maintaining their traditional hedge fund roles. This may open up new investment opportunities for investors in cryptocurrencies.

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Future of Cryptocurrency

The future of Cryptocurrency is very bright indeed, and it looks as though we are about to witness a major explosion in this field. With more than half a trillion dollars worth of currencies being traded on Cryptocurrency exchanges every day, we are seeing an unprecedented growth in the market. One day soon, all of this will be possible thanks to the rise of Internet based businesses that will enable people to trade currencies digitally and track their gains and losses in real time thanks to advanced software designed for this purpose. All of this seems very likely, and the future of Cryptocurrency looks as though it may provide us with many opportunities that have never been seen before, some of which may be very profitable indeed.

If you look at the history of Cryptocurrency, you will see that there have been several major bull runs in the past, many of which occurred during the so called ‘computer gold’ times. In such cases, there were multiple parties involved in the trade, and they each drove the prices up to unrealistic heights, only to be driven down again as the market corrected itself. But in the case of Cryptocurrencies, no single party is trading or investing in the digital currency space, and this has the effect of stabilizing the market as a whole, and making it more trustworthy and secure as well. This is the kind of thing that makes investing in Cryptocurrency in the future of Cryptocurrency look very interesting indeed.

It is clear that there are some huge opportunities in the future of Cryptocurrency, and many people now see the potential for incredible profits if they simply get in now. In fact, if you look at the history of the evolution of decentralized organizations, then you will find that there have been many great success stories over the years thanks to the power of distributed ledger technology like that which is found in the bitcoin network. With such a system in place, large organizations that would normally have been too large to even conceive of could exist, and smaller, more personal operations can take place as well, benefiting from this model as well. This is the type of future of Cryptocurrency that people today should be very excited about – and when it comes right down to it, the only way to get in is to get in now, before it is too late.