Despite the volatility that has been seen in Bitcoin (BTC) over the last two days trading seems robust in the apex cryptocurrency.
What Happened: Bitcoin trading volumes on the eight major exchanges tracked on the CoinDesk 20 index have exceeded $11 billion a new all-time high from the previous record set during the 2017 bull market, CoinDesk reported on Monday.
“Some of this volume is definitely from new and unexperienced (sic) investors entering the market for the first time and panicking when the price starts falling,” Bendik Norheim Schei, head of research at Arcane Research, told CoinDesk.
“These corrections are necessary and healthy, even in a bull market,” said Schei.
The Globe and Mail Jameson Berkow Includes correction
DADO RUVIC/Reuters
For Canadian investors tempted by the latest bitcoin craze, money manager Fred Pye offers what many will see as one of their only pure-play options.
The chief executive of 3iQ Digital Asset Management runs The Bitcoin Fund (QBTC-T), which started trading last spring. It’s a unique offering in Canada and believed to be one of two pure-play bitcoin funds worldwide. (The other, the BTCetc Bitcoin Exchange Traded Crypto Fund (BTCE-FF), debuted on the Frankfurt Stock Exchange in August).
There are plenty of options available to buy into the bitcoin boom, but Mr. Pye argues the vast majority of them – from virtual bitcoin exchanges to ETF-like products called exchange-traded notes (ETNs) – are too risky for the average investor.
Crypto Fund Manager Grayscale Reopens Deposits for New Clients
Last Updated: 12 January 2021
Grayscale Investments, the crypto industry’s largest institutional investment company, caused a bit of a stir after it closed investments into its top crypto trusts last month. Things seem to have changed, as the company now gears up for a major 2021 by opening deposits.
Ready for Investments
The New York-based investment firm is now opening deposits for most of its investment trusts, per information on its website.
The company confirmed that it has started accepting investments into its Grayscale Bitcoin Trust and the Grayscale Digital Large Cap Fund Trust. The Grayscale Ether Fund remains inactive. There is a strong possibility that could open that soon as well.
Grayscale Announces Private Placement Opportunities for Investors, Removes XRP from Digital Large Cap Fund
January 12, 2021 @ 11:22 am By JD Alois
Grayscale, a digital asset firm that has created a squadron of publicly-traded crypto funds, has announced that private placements for certain funds are now available for accredited investors.
An accredited investor is an individual that earns over $200,000 per year ($300,000 if married) or has a net worth of $1 million (not counting a primary residence.
Grayscale says these offerings occur on a periodic basis throughout the year.
Recently, Grayscale filed a series of Reg D documents with the Securities and Exchange Commission. These documents provide additional information such as the current amount invested and number of existing investors. For example, the Grayscale Bitcoin Trust reports over $5.5 billion in sales from 837 investors. A minimum of $50,000 is required to participate in the offering. Other funds require less.
The MPI hit 4.52 on Jan. 7, as Bitcoin approached $40,000 levels, as per CryptoQuant data.
Why It Matters: The BTC sale by miners is diametrically opposite to institutional investors who made record Bitcoin purchases as the apex cryptocurrency crossed $30,000 levels, also noted by Ki last week.
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Willy Woo, an on-chain analyst, said in May that there are two factors that add selling pressure in the market after the block reward halving Miners who dilute supply and sell on to the market and exchanges who tax traders and sell onto the market, Cointelegraph reported.
Miners have been beneficiaries of the 300% spike in Bitcoin prices in 2020 as they mopped up $692 million in revenue in December alone, a 33% jump over the preceding month, noted CoinDesk.