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The first STO milestone is German: Bitbond issues the first BaFin approved security token bond

Courtesy of Bitbond GmbHLastly it happened: a German company has won the race to issue a fully regulated security token, at least in Europe. Despite others having claimed to have “tokenized” something in the past, this Bitbond issue is a radical shift in the STO narrative so far.Indeed Bitbond — a Berlin based crowdfunding company — has released a prospectus approved by German regulator BaFin to raise funds by issuing a security token bond on the Stellar blockchain, without a depositary bank, without certificates or coupons and intermediaries. Differently from what happens with traditional bonds, no commission/premium/agio will be charged to subscribers. Also the size of this STO is considerable, with an ambitious hard-cap of €100M.This is a big step forward, this is finally the game changer that I have been waiting for in the last 12 months.If anything, my bet would have been on a smaller and more flexible jurisdiction to be able to finalize this first (such as Switzerland for instance).The German move is therefore important for the industry. It sends a clear signal that Germany is now leading the STO race and is ready to take your business. At least among conservative German medium sized company owners — who in my experience are very much keen in “keeping base safe at home” — this basically means “hey guys, why take your business elsewhere? Take no risks and look no further, you can now conveniently raise funds through STOs at home”.And with the uncertainties of Brexit — which may penalize London’s financial hub in the short term — the Germans might even be able to attract potential STOs from other EU countries. In the end the financial infrastructure in Frankfurt is top notch, Berlin is a top tech and crypto hub with plenty of very experienced crypto consultants and legal advisors and the market for potential STO candidates among German SMEs is simply the biggest in Europe. So it´s all there for the German STO market to prosper and grow.Now, as promised here, I have thoroughly gone through Bitbond´s prospectus and I also exchanged e-mails with the company´s General Counsel — Henning Franken — to clarify some points. The following is my analysis of Bitbond´s STO bond issue.1. Bitbond´s Business backgroundBitbond´s platform brokers loans between investors and small business owners. Through its fully owned subsidiary Bitbond Finance GmbH, they aim to raise capital to directly finance small business owners through the Bitbond platform.2. Bitbond´s — Security Token Offering (STO)In order to raise capital Bitbond Finance will issue a security token bond with a hard cap of €100M. The currency of issue is the Euro, although investors can also pay the principal amount in crypto.The company will issue BB1 tokens having nominal value of €1 and representing a debt instrument (Bond) paying an annual interest of 4%, payable in quarterly instalments. In addition, it will pay a variable interest amount equivalent to 60% of the profits realized by Bitbond GmbH in its business activities (if any). The BB1 tokens will be issued on the Stellar blockchain. The duration of the bond is 10 years.For obvious practical reasons, the contractual assignment of token rights or their pledge — otherwise possible with standard securities under civil contract law — are negated in this case (art. 7.2.8 limited prohibition of assignment). This is because the transfer of rights to the token must be allowed only if done through the Stellar blockchain, which enables the sale and transfer of the full ownership of the token and not ancillary rights. Therefore the investor acknowledges with the prospectus to substantially refrain from pledging or otherwise assign the rights to the tokens outside of the Stellar blockchain. This is necessary to avoid a conflict between what would be legally possible under civil contract law and what is practically feasible with the blockchain.3. Comparing the token-Bond vs a traditional bond3.1 CostsFirst of all the issuance direct costs are a fraction of those with a comparable traditional bond. The biggest direct cost is for marketing and sales at around € 400.000, then € 120.000 for legal and prospectus and € 80.000 for software development. A mere 0,6% direct costs if the bond is fully subscribed, excluding all indirect costs such as commissions for tips, referrals and rewards for affiliates.3.2 No IntermediariesThen there are no financial intermediaries to deal with, and no commission/premium/agio will be paid by the subscribers. The issuance is direct to the investor and the BB1 tokens will be allocated via Smart Contract directly to the Stellar wallet of the investor.3.3 Potential for LiquidityThe liquidity is still an issue to be verified since there is no real market for trading such tokenized bonds. So it remains to be seen both how much of the €100M will be subscribed and then how liquid the BB1 tokens will be and which market will be chosen by the issuer for trading them.Anyway, the potential advantages are there and liquidity will gradually improve with the growth of the sector and the involvement of traditional financial players. I have no doubt that financial operators, while being “disintermediated” on the token-bond issuance phase, will carve themselves an active and profitable role in trading those tokens and thereby will bring liquidity to the markets (market-makers will come). Besides, traditional financial instruments such as commercial papers or small corporate bonds are also highly illiquid. Here we have at least the potential to create a global blockchain based market where those securities can be traded. It will all come, with time.3.4 ProgrammabilityAnother advantage is the programmability of the tokens via Smart Contracts. In this particular case a script is programmed that executes automatically all the steps relating to the payments of interests and redemptions, as well as the calculation of the exchange rate and of the amounts due and the allocations to the wallets. The script however is activated manually by the issuer, so in the end it is semi-automated.4. RisksThe risks are properly set out in the prospectus. I wish however to dig in more deeply and examine more attentively some of the risks. Leaving aside the clear risks which are common to any business and to any investment in financial instruments, I´d like to focus on those risks which are more opaque and intrinsic to the business of crypto lending.4.1 ERP Loans and exchange rate risksWhen Bitbond lends crypto to small businesses via its platform it enters into so called ERP Loans (Exchange Rate Pegged loans). Simply put, if the borrower borrows €1.000 this sum is transferred to him in crypto which the borrower then converts again into fiat. When it will have to pay it back it will pay back always € 1.000 at the crypto-fiat exchange rate of that moment. This clearly protects Bitbond from crypto volatility. On the other side the borrower is exposed to crypto-fiat exchange rate fluctuations for the time it takes to receive the crypto-loan and exchange it into fiat funds. According to the company´s General Counsel Henning Franken this takes usually only a few minutes. Since 2018 however the company claims to have improved its business model and now, instead of using cryptocurrencies, it uses a stable-coin — the EUR Token — to transfer funds to borrowers as explained in para 4.2 below.4.2 EURT riskTo do so Bitbond has partnered with platforms (such as Tempo) to covert fiat into a digital stable-coin backed up with Euros 1:1 which is called EURT (Euro Token).According to Henning Franken — Bitbond´s General Counsel — “Tempo emits so called “Euro-Tokens” on the Stellar blockchain. So they do not use Stellar-Lumens (XLM) but only make use of the underlying ledger provided by Stellar.Compared to the model described above (4.1) the exposure is even further reduced since every fiat Euro transferred to Tempo gets exchanged to one Euro-Token which keeps its value of 1 Euro at any time of the transaction. This way there is even between transfer to the borrower and exchange no exposure to fluctuation anymore. Furthermore the transactions are faster, less cost intensive and more secure.Bitbond has introduced the latter model to all German and most of its European customers and will continue to do so in 2019 and further.Bitbond Finance GmbH (the emitter of BB1) will probably invest the BB1 funds mostly in German and EEA-loans because the majority of our existing customer base is located there”.By the way — on that same issue — it is worth noting that JP Morgan has recently announced that it will start issuing its own stable JP Coin pegged to the US$. It will be used initially for internal operations but the way forward here is clear. When large financial institutions get involved, then any third party risk related to the issuer of the pegged-coin (such as this third party solvency) can be at least mitigated and properly rated, even more so if the counterparty of your fiat-pegged-coin is JP Morgan or Goldman Sachs instead of any small start-up. This is certainly important to allow the investment of institutional moneys.4.3. Repayment of principal (Redemption at maturity) and interest paymentsAll the interest payments, as well as the redemption of the BB1 tokens at maturity, will be made exclusively in XLM. This means that the euro sum due will be converted at the moment of payment into the corresponding quantity of XLM which will be transferred to the wallet of the investor. The investor therefore bears the same exchange rate risk described under 4.1 above until XLM are again converted into fiat.An alternative mechanism to the repayment in XLM of principal and interest is not indicated by Bitbond. Also it is not clear why EURT will not be used in this case to repay interest and principal. My point is that XLM is not exactly the US$. What if in a few years it does not exist anymore? At least a general purpose clause to establish an alternative payment mechanism in fiat currencies or a fiat-pegged-coin could have been inserted.There is another risk to consider though which is not so apparent. XLM market capitalization at the date of writing is a mere 1,6bn US$ equivalent, not exactly in the league with BTC (67bn US$). Therefore price manipulations cannot be excluded. If the XLM price is artificially inflated ahead of key payment or redemption dates, less XLM will be paid out to the investor who bears the exchange rate risk until XLM are converted into fiat.In addition, the investor cannot be guaranteed adequate XLM liquidity and its convertibility into BTC/ETH or fiat. In other words the investor carries an “exit” risk with such cryptocurrency. This is important.4.4 Coding errors and lack of dispute resolution mechanismAnother issue is the lack of a dispute resolution mechanism. Due to the still experimental nature of tokenizations and the technical risks that comes with it — think about a bug in the code or a mistaken token or payment transfer which is irreversible on the blockchain — I would have appreciated a non binding arbitration procedure to allow investors to quickly settle those issues.Fair to say that Bitbond duly acknowledges those risks in art. 2.2.14 and thoroughly explains the way the semi-automated payments are executed, but it fails to indicate the solution in case of failure. German law regulates the BB1 issue with the non-exclusive jurisdiction of the Berlin Court.5. ReactionsStrangely enough, what is the biggest achievement for the securities token industry so far, has gone almost unnoticed by the largest international crypto media. Some have reported the news but no real comments. Though the news have clearly made the headlines among the specialized German media, this is by no means a local achievement. It is a global success for the industry.Therefore I have asked a prominent German crypto expert, to share with me his views.Oliver Krause — my colleague at Untitled-INC — comments: “it is clearly a milestone that has been achieved here, although I see substantial potential for improvement of STOs from the investors perspective. I expect more maturity coming to the space as soon as STOs will gain traction. We look forward to contribute with a number of projects we are currently working on. Andrea Bianconi´s analysis [i.e. this article] also shows that there is a clear need for investment advisory expertise as most retail investors will not be able to correctly assess the complex risk reward profile of these investments. Overall I have no doubt that STOs will gain traction as an alternative asset class over time”ConclusionsNotwithstanding Bitbond´s milestone achievement, it remains to be seen how this digital bond will be subscribed. My feeling is that the BB1 token bond will be very likely successful among crypto investors who may want to switch and hedge risky crypto positions and convert BTC/ETH or other cryptos into this bond. Crypto whales, miners and those who have accumulated fortunes in 2017 can easily oversubscribe this Bitbond.Because this is really the first time that such a digital bond will be open to fiat investors it is difficult to predict how it will go. Objectively though — in a world of zero or negative rates, where even real estate yields less than 2% (in Germany at least), a 4% fixed yield plus a variable amount — is undoubtedly a valuable proposition for any investor.Finally, regarding the involvement of institutional investors, I feel that until a market for hedging fiat-crypto exchange-rate risks is not developed — with liquid enough options and futures contracts — and a stable-coin backed up by a major financial institution is created (see the JPM Coin), it will be hard to see institutional money flowing in.But Rome was not built in a day and we are getting there much faster than it seems.*****************************************************************Legal Disclaimer: This paper is for general guidance only and it does not constitute legal advice. As such, it should not be used as a substitute for consultation with lawyers on specific issues. All information in this paper is provided “as is”, with no guarantee of completeness, accuracy, timeliness or warranty of any kind, express or implied.#tokens #bianconiandrea #blockchain #crypto #thinkblocktank #tokenization #sto #stable-coinThe first STO milestone is German: Bitbond issues the first BaFin approved security token bond was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.
Hackernoon

German Financial Regulator Bafin Intervenes in RISE Trading ICO for the First Time

For the first time, German financial markets regulator Bafin has intervened in a ICO project. The German media channel, Handelsblatt reported that late last year, the regulator stopped a planned initial coin offering (ICO) calling it a “paradigm shift,” as for a long time, the authority has been only watching the crypt space from afar. […]
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BitBond Gains Approval of BaFin to Host Security Token Offering

BitBond STO BitBond has recently announced that they have been granted approval by the German regulator, BaFin, to host the first STO under their watch. This announcement has been in the works for a long time, ever since receiving their licence through BaFin in 2016. This fund raising event is being undertaken in an attempt to continue developing at pace allowing for BitBond to remain leaders in their sector. The Finer Details The Token sale will see the company attempt to raise up to €100 million – with a minimum of €3 million. The digital securities to be distributed through the sale will be known as the BitBond Token, or ‘BB1’. For those interested in investment, token holders are entitled to various benefits. These include quarterly interest based dividends, totaling 4% per year. The investment is intended to be a ten year venture, with tokens being bought back at €1 each upon maturity. The token itself is based off of the Stellar blockchain. The BitBond team indicated that after tokens are distributed, secondary market trading will commence on decentralized exchanges. The ability to do so will afford token holders with liquidity typically seen when dealing with securities. Commentary When speaking with CryptoNinja recently, CEO, Radoslav Albrecht, commented on the development discussed here today. The following is what he had to say on the matter. “We are the first regulated blockchain company to set new standards. It is important for us to show investors who trust our platform that we act according to transparent rules.” BitBond The overall mission of BitBond is to utilize blockchain technology, to create an efficient, and frictionless financial platform. To date, this has taken shape primarily as a platform facilitating business loans for small and medium enterprises (SMEs). Company operations are spearheaded by CEO, Radoslav Albrecht. Drawing upon experience gained as a professional trader, and advisor, Albrecht and his colleagues have seen their company grow to the point of issuing over $1 million in loans per month. BaFin BaFin is a European based financial supervisory authority. They service various sectors, ranging from insurance, to banking, and of course, securities. In doing so, the company employees north of 2,600 employees – making it one of the largest regulatory bodies of its type. In Other News This STO marks just one in a growing list of ‘firsts’. Only recently, we spoke about Wakelet, as they become the first STO to be hosted in the UK. As more regions clear this hurdle, and begin welcoming such events, the rate of adoption will only continue to grow. Check out the article below to learn more about the Wakelet STO. Wakelet Announces STO with AmerX The post BitBond Gains Approval of BaFin to Host Security Token Offering appeared first on Securities.io.
Securities.io

Germany’s Bitbond Blockchain Token (BB1) To Release Security Token Offering With BaFin-Approved Prospectus

Bitbond Has Gone Ahead To Announce The STO With The Security Prospectus The Bitbond, a blockchain technology company has just gone ahead to announce their very first Security Token Offering; this is the STO, this is with the securities prospectus that has been approved by the BaFin. Bitbond has been considered to be the first within Germany that has been able to issue the security token that is comprehensively regulated. The Bitbond has so far been approved as being an asset broker, this is under the German Banking Act, this is for their lending business that is blockchain based, and it has also been the very first financial service institution of this type that has been served by the BaFin. According to the CEO of Bitbond, Radoslav Albrecht they excited with the current move that they have gotten into as the trend that is taking place within the market is moving towards structured security. “We are the first regulated blockchain company to set new standards. It is important for us to show the investors who trust our platform that we act according to transparent rules.” Unlike the utility tokens that we have been accustomed to that tend to not give any rise to legal payment claims for the investor, the security tokens tend to be structured as securities; thus, this is able to regulate the investor's rights. When we look at the case of the Bitbond, the investors will be able to participate in the eventual success of the company; this will be made possible through the interest claim. As a result, the company hopes with this in place the security tokens will be able to spread quickly. It will be able to enable both the professional and the private investors to be able to easily invest in the early stage companies, therefore, be able to provide the startup companies with easy access to the capital markets. The Bitbond Token, which has been referred to as the BB1, has a nominal value which is of one euro; thus the interested investor within the market can purchase the token. With the tokens, it will enable the investors to go ahead and participate in the success of the company together with the loans that will have been brokered by the Bitbond. The tokens have also been made to be tradeable and can quickly be sold and bought on the available crypto exchanges when the regulatory requirement is finally fulfilled. The proceeds that will be gotten from the STO will be able to serve two purposes 1. Bitbond will be able to use it for their core business which is lending the small businesses that are within the market. 2. The second Bitbond will be to develop further its global lending platform, which includes the innovations and advancements within the payments together with the credit scoring area. Bitcoin (BTC), Ethereum (ETH), XRP (Ripple), and EOS Price Analysis Watch (Feb 19th)  
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BitcoinTradeRobot Flagged By BaFin For Lack Of Compliance With Germany’s Crypto Regulations

BaFin, the regulatory authority in Germany, recently issued a warning to consumers to watch out for a particular company. The company in question, BitcoinTradeRobot, is operating within Germany, and is even going as far as to offer trading signals that are focused entirely on cryptocurrency. However, despite functioning as a crypto platform, they have neglected to follow the financial legislation in place within the country. When BaFin described the activities, they said that there is an opportunity from BitcoinTradeRobot that is exclusively made to German customers. This would allow them to engage in “the alleged automated trading of Bitcoin against legal currencies.” According to the company, consumers are able to purchase bitcoin market trading software, which it operates. This software trades automatically for the user and even is capable of generating real signals. At this point, there is no regulatory status for the company in any jurisdiction globally. Even though the website features address details online, it leads to nowhere, because the address itself does not exist. BaFin takes this lack of correct information as another sign that the company is seeking out illegal crypto brokers, putting any user at risk for serious legal action. As BaFin supervises the local market as a whole, they’ve issued multiple advisories over the years, including the recent retail forex and CFDs trading stance. At the time, the company was trying to protect users from the unlimited losses that can happen when a broker does not offer negative balance protection The cryptocurrency industry has been a point of concern for BaFin, especially as it has flourished in the past. They have consistently warned investors, keeping them informed about the major risks that they put themselves in the way of when they choose to invest in Bitcoin and other cryptocurrencies. They have also addressed the dangers of ICOs, discussing the major risks of investing in projects with unrealistic claims and even without an actual product at all. Germany has been an aggressive leader in regulating cryptocurrency since it started growing. The officials want to ensure that their citizens are safe from the fraudulent activity that can arise from dangerous players. In a recent development, Germany chose to collaborate with France to encourage them to regulate Bitcoin. This topic of discussion arose at the G20 summit, which was held in Argentina.
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Germany’s BaFin Shuts Down Crypto-Capitals’ Cross Border Crypto Trading Operations

Cryptocurrency firms are attracting a lot of attention. That is not always a good thing, depending on the company’s business model Crypto-Capitals, a firm specializing in trading products, has been flagged by Germany’s BaFin. The company is selling these trading products without complying with regulatory measures. Crypto-Capitals Runs Afoul in Germany Similar to other European countries, Germany has no active cryptocurrency regulation. That does not mean companies can offer services related to Bitcoin without being regulatory compliant. For Crypto-Capitals, things have gone from bad to worse. The German firm has been ordered to shut down operations by BaFin over regulatory concerns. As part of its service, Crypto-Capitals provides cryptocurrency-oriented trading products. That includes CFDs, a strictly regulated investment vehicle in Germany. However, the crypto firm is not following existing guidelines associated with offering such services. BaFin has now ordered the firm to cease operations until this matter can be resolved. This explosion of crypto activity has caught the attention of Germany’s financial watchdog. BaFin has advised consumers on crypto investments over the past few years. They are also in the process of cracking down hard on any company not following the rules. While Crypto-Capitals is not offering an illegal service, their regulatory compliance leaves much to be desired. Compliance is Critical for all Firms This is another clear warning signs for all cryptocurrency companies. Offering products catering to traditional investors should not be taken lightly. If firms do not comply with local regulations, they will be shut down sooner or later. Crypto-Capitals is just one example of how quickly things can deteriorate for firms skirting the law. Germany does not have the most open-minded approach to Bitcoin. It is one of the few countries around the world where LocalBitcoins is not available. The platform was forced to cease operations several years ago due to regulatory pressure. Despite the setback, other trading platforms still exist in the country to this very day. Warnings issued by BaFin are a positive sign for the industry. If cryptocurrency is set to go mainstream, compliance needs to be the number one priority at all times. There is no reason for service providers to take shortcuts. Avoiding unnecessary scrutiny is always the favorable option. Germany is actively monitoring the cryptocurrency industry for flaws. They also want to have the G20 regulate this industry over the coming years. How important is a clear regulatory framework (and the enforcing of that framework) to the long-term success of cryptocurrencies? Let us know in the comments below. Images courtesy of Shutterstock The post Germany’s BaFin Shuts Down Crypto-Capitals’ Cross Border Crypto Trading Operations appeared first on Live Bitcoin News.
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Ravencoin Grows 20% And Continues to See RVN Token Surge in the Crypto Market

There are several altcoins that are registering interesting growth rates in the last weeks. This time, Ravencoin (RVN) was able to pump once again over 20% in just 24 hours. Although Bitcoin keeps being traded sideways, there are some altcoins that are behaving very positively. Ravencoin Spikes 20% Ravencoin was able to grow 20% and […]
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Bitcoin [BTC] Futures in good stead against its Spot equivalent: Bitwise Report

Bitcoin [BTC] Futures were thought to be a snippet of the overarching cryptocurrency market, though meager in comparison to the larger spot market. A recent report from Bitwise Asset Management, the crypto-centric investment firm has stated otherwise. In a March 20 report presented to the United States’ Securities and Exchange Commission [SEC], Bitwise analyzed the Chicago Mercantile Exchange [CME], and the Chicago Board Options Exchange, with ten prominent cryptocurrency exchanges’ in terms of their trade volume. Prior to shedding light on their Futures versus Spot findings, it must be noted that the report revealed that 95 percent of the trading volume of unregulated exchanges were seemingly “fake and/or non-economic wash trading”. Taking into account this disparity, the percentage of futures volume to their spot equivalent increases from 1.51 percent to 33.33 percent. Reported Spot volume totaled $6 billion, but after removing the “suspicious exchanges”, the actual volume recorded dropped to $273 million, in comparison to the futures market volume of $91 million. Furthermore, the increase in futures’ volume as a percentage of the spot market has been steadily increasing. From November 2018 to January 2019, the futures market was just over 15 percent, and almost doubled in February 2019 to 33 percent. Since the Futures contracts were approved in December 2017, only on two occasions did the Futures volume, in comparison to the Spot market, shoot above 20 percent; this was in May and August 2018. Futures Volume expressed as a percentage of their Spot Equivalent In terms of their stand-alone trade volume, the CME and the CBOE are in good stead against the world’s top cryptocurrency exchanges. The daily volume the CME, which brings in $84.82 million, ranks second behind Binance’s $110.5 million and ahead of Bitfinex, which records $38.06 million in daily trade volume. The CBOE also fairs well, taking the ninth spot on the ladder, ringing in $6.12 million in daily trade volume. Gemini takes the eight spot with $8.11 million and itBit caps off the top-10 with $5.58 million in daily volume. Notable, among the top-12, eight exchanges are registered within the United States. Despite the CBOE’s comparative success against the spot exchanges’, it has not been performing well against its cross-town rival, the CME. This slump forced the CBOE to delist their Bitcoin Futures [XBT] for March 2019. However, the XBT futures that are yet to expire later in the year will not be off-loaded prematurely. Bitwise also points out that the CME Futures Price tracks the Global Spot Price based on an arbitrage model. Given below is a chart attesting the same: Arbitrage between the CME Futures price and the global Spot price The post Bitcoin [BTC] Futures in good stead against its Spot equivalent: Bitwise Report appeared first on AMBCrypto.
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How Cryptocurrency Trading Volume Fiasco Can Lead to Bitcoin ETF Approval

The SEC has held the ETF approval for Bitcoin and Cryptocurrency for a couple of reasons. The most significant reason for the same has been the unregulated marketplace. While decentralization in Bitcoin is an attribute that makes it an ideal asset class, the market places or Exchanges that provide for conversion of FIAT to Cryptocurrency is still controlled by independent entities. A recent report by Bitwise Asset Management published by the SEC inferred that more than 95% of the cryptocurrency volume is being faked. Hence, according to that, the ‘actual spot volume’ on cryptocurrency exchanges is a little above $270 million. Moreover, the reported volume of CME and Cboe Bitcoin Futures is more than one-third of the ‘actual spot volume’ estimated by Bitwise. According to Bitwise Asset Management, This is good news because it means CME— a regulated, surveilled market— is of material size, which important for an ETF. The case of a Bitcoin ETF Approval Now CME Bitcoin Futures reported a spot trading volume of $85 million. Moreover, according to Bitwise Asset Management, the actual trading volume of the Crypto-to-FIAT Exchanges is around $273 million. Hence, according to this statistic the Futures Trading Volume of CME alone accounted for 31.1% of the ‘Actual Exchange Volume.’ Moreover, there are other Bitcoin Futures market active in Europe and Japan as well. Hence, going by the above statistic, it can be said that the institutional investment might be in parity with the unregulated investment in Bitcoin. However, the Exchanges have reported total spot volumes total to the tune of $6 billion. This can necessarily raise doubts on its demand being higher than $100 billion. However, it does not directly affect the total market capitalization of a cryptocurrency.   Parity Between Spot Trading of Bitcoin and Gold The spot trading volume of Gold is 0.55% of its total market capitalization, while according to Bitwise statistics spot ‘actual spot trading on Bitcoin is 0.39%. If the CME Futures volume is included in this data, the percentage will increase to 0.51%. The OTC trading volume on most exchanges is also not added in the Exchange Data. All this suggest that the institutional investment in Bitcoin is considerably more significant than one expects. It is not only healthy in volume but also agrees statistically with the closest relatable asset class, i.e., Gold. Hence, a new form of informational mechanics for the trading of Bitcoin and Cryptocurrency in regulated Exchanges could alleviate the doubts around the Bitcoin ETF approval.   The post How Cryptocurrency Trading Volume Fiasco Can Lead to Bitcoin ETF Approval appeared first on Coingape.
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Top 5 Crypto Performers Overview: ONT, ADA, ETC, BCH, IOTA

Top 5 Crypto Performers Overview: ONT, ADA, ETC, BCH, IOTA The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision. The market data is provided by the HitBTC exchange. […] Cet article Top 5 Crypto Performers Overview: ONT, ADA, ETC, BCH, IOTA est apparu en premier sur Bitcoin Central.
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