Updated Jan. 13, 2021 5:51 am ET
The gyrating price of bitcoin has made headlines again this year, as has growing interest from institutional investors. But most vanilla financiers have more to lose than win by diving into digital assets.
Open interest in CMEâs bitcoin futures has surged by more than 250% since the beginning of October. Large trade sizes and the fact that bitcoin doesnât have to be held directly mean CMEâs system is considered a benchmark of activity by institutional investors.
Crypto-focused hedge funds and individual buyers are free to invest as they like, of course. Buying a volatile asset without cash flow in a euphoric market is a risk they are willing to take. It has certainly paid off for those with iron stomachs.
Jan. 12, 2021 5:31 am ET
In the third quarter of 2020, the dollarâs share of global foreign-exchange reserves slipped to its lowest level in almost a quarter of a century. But donât let the figures fool you: The greenback is as central to the global financial system as it has ever been.
International Monetary Fund data shows the dollarâs share of reported reserves fell to 60.5% in September. The drop has been magnified in nominal terms due to the currencyâs depreciation over the past year. But even accounting for that, the real dollar exposure of. Advertisement
In the third quarter of 2020, the dollarâs share of global foreign-exchange reserves slipped to its lowest level in almost a quarter of a century. But donât let the figures fool you: The greenback is as central to the global financial system as it has ever been.
Mark Wilson/Getty Images
The dollar has been rising in recent days, partly reversing a trend of weakness and highlighting more optimism about the economy that could enable stocks here to outperform their counterparts overseas for the near term.
Monday, the
U.S. Dollar Index (ticker: DXY) rose 0.55% to 90.60 as investors moved money into so-called haven assets. Yields on 10-year Treasury debt and German 10-year bonds fell, though they later recovered. Gold rose 0.6%.
The dollar has fallen by double-digit percentages since March because economic growth is expected to rebound faster globally than in the U.S. this year, while the Federal Reserve has slashed short-term interest rates to near zero. That has reduced the appeal of dollar-denominated debt, limiting overseas investors’ need to buy greenbacks.
Intercontinental Exchangeâs Cryptocurrency Venture to Go Public Through a SPAC
ICEâs Bakkt crypto venture plans to roll out an app for trading and making payments with digital assets The price of bitcoin is skyrocketing, driving a rally of momentum trading that s pushed its value higher than it s ever been before. WSJ explains how bitcoin trading works, and why the volatile digital currency is reaching all-time highs. Illustration: Jacob Reynolds/WSJ By Jan. 11, 2021 8:00 am ET Intercontinental Exchange Inc., or ICE, will take its cryptocurrency venture public by merging it with a special-purpose acquisition company, a deal that will further its goal of launching a consumer app for trading and making payments with digital assets.
Updated Jan. 11, 2021 5:37 pm ET
A popular online brokerage abruptly curbed trading in cryptocurrencies just as bitcoin hit a record high, catching investors in one of the hottest corners of the market off guard.
EToro, an Israel-based digital trading platform with global operations, told customers in Europe late Friday they had to close all margin trading in cryptocurrencies in a matter of hours, according to the company. Margin trades use borrowed money to amplify investments.
The order came as bitcoin approached an all-time high of $41,962 on Friday, after more than tripling in 2020. Over the weekend, the world’s leading cryptocurrency went in reverse, shedding around a quarter of its value and traded at $34,184 on Monday, according to data from CoinDesk.