Category: Financial Markets

According to a report by Bloomberg, SBI intends to launch a fund that will invest in Bitcoin, Ethereum, XRP, Bitcoin Cash and Litecoin.

The fund, according to Tomoya Asakura, President of SBI affiliate Morningstar Japan K.K., would be geared at investors who are familiar with crypto assets and their volatility. Investors may need to invest anywhere from $9,100 (1 million yen) to $27,200 (3 million yen).

 According to the report, SBI wants to launch the first crypto asset fund by the end of November, with a second crypto asset fund to follow depending on performance. Asakura also alluded to SBI creating a separate crypto fund for institutional investors if the interest was high enough.

SBI had intended to launch its crypto fund as an investment trust, which is a common way to invest in Japan. However, the Financial Services Agency (FSA), the country’s primary financial regulator, has prohibited corporations from selling crypto investments using this way. After that, the corporation modified its approach and will now offer its crypto fund to investors through an “anonymous collaboration.” Due to Japan’s strict laws, it took the company more than four years to get the fund up and running.

The SEC vs. Ripple case takes another turn, making investors bullish on XRP.

• The Securities and Exchange Commission announced on 22 Dec,2020 that it has filed an action against Ripple Labs Inc. and two of its executives, who are also significant security holders, alleging that they raised over $1.3 billion through an unregistered, ongoing digital asset securities offering.
• Ripple Holdings is still the largest public holder of XRP, and the payments giant is facing legal action. Since December 2020, this has had a persistent negative influence on the price of the native asset XRP.
• Recently, in the ongoing litigation, both Ripple and the SEC admit that Ripple owes no fiduciary duty to XRP holders. As a result, the XRP army is prepared to advocate for its own interests in the lawsuit.
• This indicates that the XRP community has stepped up to protect the altcoin from unfavourable price impact.
• Following a flash meltdown that saw the global crypto market value drop, the XRP price recovered primarily  due to a spike in on-chain activity. XRP price rose 10% following a slight reversal, according to data from Santiment, a behavioural analytics platform, as address activity intensified.
• Further, positive developments in Ripple fuel the bullish narrative of XRP.
• SBI Holdings (Strategic Business Innovator Group) is working on a cryptocurrency fund that will invest in Bitcoin, Ethereum, Bitcoin Cash, and XRP. The announcement of the fund by the Japanese financial behemoth is a positive move for Ripple and is expected to boost the utility of the native asset XRP.

 (Source:FXStreet, https://news.bitcoin.com)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

 nearly 15% less than the previous day and reflecting a loss of more than $410 billion. A selling spree among the investors drove the prices of nearly every single coin, erasing the gains of the retail traders amidst the news of El Salvador’s first day accepting bitcoin as legal tender. This move resulted from the $4 billion cascading liquidations from the over-leveraged Bitcoin and Ethereum futures.

In the middle of the flash crash, El Salvadoran President Nayib Bukele remarked that the country took advantage of crashing prices to purchase 150 bitcoins in addition, boosting its total to 550 coins, which amounts to about $25 million. The correction in the Bitcoin market highlighted the need to book profits consistently along the rally. 

The Bitcoin fear and greed index, which is considered as an indicator of the overall sentiment of traders in the market, recently indicated ‘fear’. Analysts expect a potentially volatile period ahead for Bitcoin, as nearly 336,000 traders positions were liquidated in the crash. However, post Tuesday’s downfall, BTC is now on its road to recovery. Spent output ratios that look at profitability and losses taken over a particular time frame shows that the long-term holders have largely maintained their positions indicating the larger wallet moves were on-balance active short-term traders. On the contrary, it is observed by the analysts that the whales have been significantly buying BTC, increasing their holdings. Historically, whenever large wallet investors have increased their holdings and accumulated BTC, a price rally has followed. The proponents have claimed that if new buyers constantly inject capital in Bitcoin, it could break key resistance and set an all-time new record, further in 2021. Analysts expect Bitcoin to continue upwards climb and target the $57,000 level next.

About Bitcoin:

Bitcoin is the world’s first decentralized cryptocurrency- a type of digital asset that uses public-key cryptography to record, sign and send transactions over the Bitcoin blockchain.

Launched in 2009, bitcoin is the world’s largest cryptocurrency by market capitalization. Unlike fiat currency, bitcoin is created, distributed, traded, and stored with the use of a decentralized ledger system, known as a blockchain. Bitcoin’s history as a store of value has been turbulent; it has gone through several cycles of boom and bust over its relatively short lifespan. As the earliest virtual currency to meet widespread popularity and success, bitcoin has inspired a host of other cryptocurrencies in its wake.

(Source: FXStreet, Investopedia, Forbes)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.