by Florin Oprea
Kevin Dugan – The New York Post
Morgan Stanley went shopping at Overstock.com — and it had nothing to do with the discounted leather sofas. The Wall Street bank has purchased an 11.4% stake in the Web retailer just days before the Salt Lake City company’s cryptocurrency trading goes
DNT: Uh, oh…Something is shaping up
FAO: I recall we had Morgan Stanley in June saying that Blockchain was still in a “proof of concept” phase. They anticipated it would take several years before being used for financial settlements. Wow, how time flies…Anyway, this Overstock move is not surprising however, since Morgan Stanley’s CEO, James Gorman, had quite a positive attitude towards bitcoin in October – check it here, Fans’ Section.
Chris Morris – Fortune
As Bitcoin continues to soar in valuation, new investors are joining the craze, even if they don’t initially have the money to pay for the cryptocurrency. Securities regulator Joseph Borg says he has seen people doing everything from running up credit card debt to mortgaging their homes to pour money into the cryptocurrency.
DNT: Hmmm, seems we have a real cryptomania here. This phenomenon reached dangerous levels. It would still be good a little caution, though.
FAO: Yip, I have also heard of people that took loans to invest in cryptos…THAT’S ABSOLUTELY MIND BLOWING. MY ADVICE IS: STOP DOING THAT! IMMEDIATELY!
John McCrank – Reuters
Henry Fernandez – Fox Business
Cboe’s CEO Ed Tilly said he thinks confidence in bitcoin — and concerns over fraud — will change over time.
Tilly: “We’re in the business of being able to express that opinion, and I want to polish this point in a transparent regulated marketplace, and I think a lot of that fraud can fall away when you know your end user.”
DNT: Totally agreed. And the fact that BTC futures began trading on CBOE will be decisive. We witness the beginning of a new era for altcoins because Tilly also said that “Cboe is not only endorsing bitcoin but the concept of digital currency as well”.
FAO: Did you hear that, Jamie Dimon?
BitGo announced the close of its $42.5 million Series B financing, led by Valor Equity Partners with participation from David Sacks, Bill Lee, and DRW.
FAO: Total funding raised by the company since it was founded in 2013 hits $54.5m.
Eric Lam, Denise Wee – Bloomberg (subscription)
With bitcoin prices up 17-fold this year and sitting above the $16,000 mark, valuations for the cryptocurrency are in “extreme” territory, according to BlackRock Inc.
“We are seeing sort of bubble-like valuations,” Belinda Boa, the money manager’s head of active investments for Asia-Pacific, said. “BlackRock’s view is that this isn’t a financial asset like we would trade in terms of equities and fixed-income instruments.”
Philipp Sandner, Frankfurt School Blockchain Center: Blackrock of course is the best expert in the crypto universe. So many experts in the field, suddenly. But still, probably they are right. Maybe Blackrock has purchased crypto therefore the price rose? Or would like to get it down again?
FAO: Well, I think this is a start after all. Anyway, talking about a “valuation” differs a lot from the nature of prior opinions. Some time ago, BlackRock’s CEO, Larry Fink, said bitcoin thrives because of its anonymous nature (check here), and before that, in October, he said bitcoin is an index of money laundering…
Victor Golovtchenko – Finance Magnates
Both Chicago-based major derivatives exchanges are rumored to be preparing to launch Ethereum and Litecoin futures. The plan could have been developed well in advance, sources say. With the launch of Bitcoin futures being a test bed for the deployment of more cryptocurrency derivatives, the expansion of the asset class to the futures markets may be only just beginning.
DNT: Whooa, It’s quite a shivering (in a good way) rumor. As I said a few lines above, a new era for cryptocurrencies is shaping up. Let’s name it: Altcoin 2.0, what do you say Florin?
FAO: Clearly this is a test. CME is moving in on Monday. I am sure this was planned in every little detail for quite a while. All US exchanges offering derivatives will act towards crypto-derivatives. Here is a BDN edition last week discussing some of the future (s) plans. And, yes, ICE will act too, eventually – more about Jeff Sprecher’s way of doing things – here. Bitcoin futures is just the beginning…Question is, ARE YOU READY FOR THIS?
Gregor Stuart Hunter – The Wall Street Journal
Michelle Jones – ValueWalk
Frank Chaparro – Business Insider
Reuters Staff – Reuters
Digital currency exchange operators Coinbase & Bitfinex reported problems with service through their websites on Tuesday, frustrating traders seeking to cash in on the latest surge in the value of bitcoin and other cryptocurrencies.
FAO: Yip, and these are only two examples of crypto exchanges encountering tech difficulties when facing large volumes. Kraken is also experiencing tech issues, on a daily basis, as many traders tell me.
Samantha Bomkamp – Chicago Tribune
In January, Mike Haynes’ salary was cut in half as the tech startup he worked for restructured. By spring, he had burned through most of his savings. Now he’s one of the many speculators chasing their fortunes through bitcoin investing.
Steve Hendershot – Chicago Business
Chicago entrepreneur Jimmy Odom, who co-founded local-delivery startup WeDeliver in 2012, is announcing his next startup this week: BitCap, short for Bit Capital Group, which aims to expand access to a cryptocurrency practice called mining. Former Chicago Bear Israel Idonije is a partner and investor.
Via PRNewswire – Iconiq Lab Adds Crypto Titan David Drake (Ed. note: David Drake is LDJ Capital Chairman) to Its Advisory Board.
David Ricketts – Financial News
Vanguard has completed a blockchain technology project to provide a range of its index funds with up-to-date market data. As part of a pilot project lasting several months, Vanguard used the distributed ledger technology, which underpins cryptocurrency bitcoin, to feed funds with market information and eliminate the need for manual updates.
Pete Schroeder, Michelle Price – Reuters
The chairman of the U.S. Securities and Exchange Commission warned investors of the dangers of putting their money into cryptocurrencies, saying trading and public offerings in the emerging asset class may be in violation of federal securities law.
DNT: Check the statement of SEC Chairman Jay Clayton HERE and CFTC Chairman J. Christopher Giancarlo statement HERE. Now, this question arises: Is USA still neutral in our Crypto-Teams BDN Global Outlook?
FAO: US stays Neutral, for now. EU too. BUT we are pretty sure at least more regulation will soon emerge.
Aaron Back – The Wall Street Journal (subscription)
Bitcoin is taking over the world. Its rapidly rising value is making it bigger than some major financial companies, some big currencies and many of the world’s countries. Or so the bitcoin cheerleaders say.
Naeem Aslam – Forbes
In recent history, there hasn’t been any derivative which has gained more attention on the global platform as Bitcoin
Tyler Cowen – Bloomberg (subscription)
There is a joke circulating on Twitter: “A boy asked his bitcoin-investing dad for 1 bitcoin for his birthday. Dad: What? $15,554??? $14,354 is a lot of money! What do you need $16,782 for anyway?”
DNT: A good one! 🙂
FAO: Florin Adrian Oprea, Editor-in-chief Blockchain Daily News
DNT: Decebal Nicolaie Todarita, Editor Blockchain Daily News