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Two BlackRock Associated Funds Will Invest in Bitcoin

The world’s largest asset manager, BlackRock, has allowed two of its biggest funds to engage in Bitcoin derivatives. The firm has over $8 trillion in […]

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The world’s largest asset manager, BlackRock, has allowed two of its biggest funds to engage in Bitcoin derivatives. The firm has over $8 trillion in assets under management.

SEC filing reveals details

The firm recently filed with the Securities and Exchange Commission (SEC). The prospectus documents show that BlackRock has added Bitcoin futures to derivatives products that two of its largest funds can invest in. Now, BlackRock Funds V and BlackRock Global Allocation Fund Inc. can invest in indices, interest rates, credit events, commodities, and currencies.

Two BlackRock Associated Funds Will Invest in Bitcoin

The asset manager wrote,

“The only bitcoin futures in which the Funds may invest are cash-settled bitcoin futures traded on commodity exchanges registered with the CFTC.”

The company also cited some risks related to the involvement in the crypto sector, like regulatory changes, illiquidity, and valuation issues. It also said that Bitcoin futures are not as liquid as other futures markets and are relatively new.

Taking slow and cautious steps

BlackRock also acknowledged that several Bitcoin exchanges have experienced operational and technical issues repeatedly which makes the prices of the assets reach unbelievable numbers. It also said that Bitcoin has been a target of manipulation and fraud as well which could have an adverse impact on the performance of its funds.

The Chicago Mercantile Exchange (CME) is the only regulated market offering cash-settled Bitcoin futures contracts.  Cboe also offered a similar derivative offering between 2017 and 2019 but has since discontinued the market. Bakkt, which is owned by Intercontinental Exchange also provides Bitcoin futures trading but its offering is physically-settled.

Larry Fink, the CEO of BlackRock, expressed bullish sentiments on Bitcoin about a month ago. He said that Bitcoin could replace gold but also said that the rising popularity of the cryptocurrency has an impact on the US Dollar. Note that Bitcoin prices have tripled in the past three months, reaching double their all-time highs of $20,000.

Source: https://insidebitcoins.com/news/two-blackrock-associated-funds-will-invest-in-bitcoin

Blockchain

Bitcoin’s S&P 500 Correlation Is At 5-Month High, Is This Bearish For BTC?

Bitcoin’s S&P 500 correlation hits a 5-month high and some analysts consider this to be a bearish factor for the cryptocurrency but let’s see why in our today’s Bitcoin news. Bitcoin and the traditional financial markets were correlated highly n the past few months which was clearly seen over the past couple of weeks where […]

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Bitcoin’s S&P 500 correlation hits a 5-month high and some analysts consider this to be a bearish factor for the cryptocurrency but let’s see why in our today’s Bitcoin news.

Bitcoin and the traditional financial markets were correlated highly n the past few months which was clearly seen over the past couple of weeks where the cryptocurrency followed stocks step by step. The data from crypto analytics resource skew showed that the realized correlation between Bitcoin’s S&P 500 correlation surged to a 5-month high which has happened back in November 2020. There are plenty of reasons why this could be the case but maybe the most obvious one is the involvement of institutional investors in the crypto space.

As reported plenty of times, the institutional interest in the asset class surge when companies started flooding the market. Grayscale for example saw its assets under management skyrocket over the past few months. The company’s CEO Michael Sonnenschein said that the institutional interest in BTC increased in 2021. In any case, there are many implications of the soaring correlation. The correlation to stocks shows a few things but the most important one was the fact that BTC fails as a hedge against the traditional finance systems so if BTC Is moving along with stocks, then it doesn’t serve as a hedge.

bitcoin S&P
Bitcoin – S&P 500 Realized Correlation. Source Skew

This has implications on its own and for example, we saw one reason for the 25% correction for BTC that was actually due to Wall Street crashing as well. Back then, NASDAQ had a slump and the catalyst was that the government bond yields gave some boost and investors favored companies that benefit the broader economic recovery, as Peter Tuz who was the president of Chase Investment Counsel, said:

 “Rates matter. At 1.5%, the yield is comparable to S&P 500 dividend yield. […] And there’s no capital risk with a 10-year, you’ll get your principal back. All of a sudden it’s competitive with stocks.”

As much as it is bearish, in the case of higher correlation the broader macroeconomic events need to be factored in the price formation of the cryptocurrency. The US House of Representatives passed another $1.9 trillion stimulus bill which will be another major injection in the economy if passed so we can only imagine what it will do to the stock markets.

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Source: https://www.dcforecasts.com/bitcoin-news/bitcoins-sp-500-correlation-is-at-5-month-high-is-this-bearish-for-btc/

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Binance Coin, Neo, Enjin Price Analysis: 05 March

Binance Coin was heading towards $205 after Bitcoin fell below $49k on the price charts. Neo also moved below a strong level of support, with bearish momentum likely to push the price to as low as $32

The post Binance Coin, Neo, Enjin Price Analysis: 05 March appeared first on AMBCrypto.

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Binance Coin was heading towards $205 after Bitcoin fell below $49k on the price charts. Neo also moved below a strong level of support, with bearish momentum likely to push the price to as low as $32

The post Binance Coin, Neo, Enjin Price Analysis: 05 March appeared first on AMBCrypto.

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Source: https://ambcrypto.com/binance-coin-neo-enjin-price-analysis-05-march

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Bybit to Cease UK Operations in Compliance with FCA Ban

Bybit has shuttered its operations in the United Kingdom. According to its latest announcement, it will cease rendering futures trading services to customers in the country from March 31. It has asked customers to close positions and withdraw balances before this date.   This action from Bybit complies with a ban on futures trading issued … Continued

The post Bybit to Cease UK Operations in Compliance with FCA Ban appeared first on BeInCrypto.

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Singapore-based cryptocurrency derivatives trading platform Bybit has announced that it will suspend operations in the United Kingdom following a ban on retail derivatives trading by the Financial Conduct Authority (FCA).

Bybit has shuttered its operations in the United Kingdom. According to its latest announcement, it will cease rendering futures trading services to customers in the country from March 31. It has asked customers to close positions and withdraw balances before this date.  

This action from Bybit complies with a ban on futures trading issued by the Financial Conduct Authority (FCA). According to the FCA, the ban was to take effect from Jan. 6, 2021.

It has also moved to restrict new signups from UK phone numbers and IP addresses.

While ensuring full compliance, Bybit said it will make efforts to engage in a dialogue with regulatory bodies and explore options.

The Prelude

A cryptocurrency derivatives ban has been in the picture since 2019. The FCA started considering this after it was reported that UK investors lost a total of $492 million on cryptocurrency derivatives between mid-2017 and 2018.

It further claims that a derivate ban will save its citizens about $289 million in potential losses.

Cryptography ID Identity UK

FCA Finally Issues Ban

The UK independent financial regulatory body issued the ban on cryptocurrency derivatives, stating that they are “ill-suited for retail consumers due to the harm they pose.”

The UK financial watchdog outlined several other reasons for the ban, saying that cryptocurrency derivatives have no basis for valuation.

Another concern raised by the FCA is that most retail traders lack proper education on cryptocurrency derivatives. Speaking further on the ban, the regulatory body’s interim Executive Director of Strategy, Sheldon Mills said;

“This ban reflects how seriously we view the potential harm to retail consumers in these products. Consumer protection is paramount here.”

It also warned citizens to look out for and report scam cryptocurrency derivative platforms.

The post Bybit to Cease UK Operations in Compliance with FCA Ban appeared first on BeInCrypto.

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Source: https://beincrypto.com/bybit-to-cease-uk-operations-compliance-fca-ban/

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Bitfarms hints at massive expansion as it purchased 48,000 new ASIC miners from MicroBT

Canadian block reward mining operators Bitfarms Ltd. has confirmed its latest purchase of 48,000 new ASIC miners from MicroBT. Once operational, they expect the new miners to increase their hashing capacity by approximately 5.0 EH. According to the press release, the purchase is a continuation of the growing relationship between the hardware manufacture and Bitfarms. […]

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Canadian block reward mining operators Bitfarms Ltd. has confirmed its latest purchase of 48,000 new ASIC miners from MicroBT. Once operational, they expect the new miners to increase their hashing capacity by approximately 5.0 EH. According to the press release, the purchase is a continuation of the growing relationship between the hardware manufacture and Bitfarms. […] Checkout PrimeXBT
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Source: https://coinnounce.com/bitfarm-hints-at-massive-expansion-as-it-purchased-48000-new-asic-miners/

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