ArCoin from Arca: how the first tokenized US government bonds work
ArCoin from Arca: how the first tokenized US government bonds work On July 6, digital asset manager Arca registered his private crypto fund Arca U.S. Treasury Fund at the US Securities and Exchange Commission (SEC). The fund invests most of its funds in short-term US bonds, while the fund’s shares are represented in the form of ArCoin Ethereum tokens of the new ERC1404 format, which fully comply with securities legislation.
Why SEC registration is important for Arca U.S. Treasury Fund.
Arca U.S. Treasury Fund is a closed-end hedge fund owned by the American digital asset management company Arca. It aims to combine the regulatory, legal and operational standards of the traditional financial sector with the efficiency of the blockchain. The company believes that actively managed hedge funds are the best way to address the volatility, immaturity, and rapidly changing nature of cryptocurrencies as an investment asset. Registration with the SEC was not easy for the fund — Arca agreed on the form of its digital shares within 20 months. But now the fund’s securities comply with the 1940 Investment Companies Act, which regulates the work of investment funds, including those issuing their own securities. For investors, SEC approval is an opportunity to receive guarantees from the traditional financial market: broker control by the regulator, independent audit and regular reporting, as well as the right to return their money in the event of a broker’s bankruptcy. For an investment fund, registration with the SEC imposes obligations to provide information on the company’s financial position, investment policy and current operations, meet liquidity requirements, conduct an independent audit and transfer control over assets to an independent board of trustees. But this is what allowed Arca to release an institutional-grade product.
How Arca U.S. Treasury Fund works
Arca U.S. Treasury Fund invests 80% of its assets in short-term US Treasury bonds. The rest of the funds are invested in fixed income debt securities. As the fund plans to invest in low-risk assets, the ArCoin price is expected to be stable. The fund operates just like any other fund holding US debt securities, but with the addition of blockchain to manage stocks. Investors do not invest their money directly in securities, but purchase shares of the fund — ArCoin tokens (ARCT). They were created by a special division of the company — Arca Labs. TokenSoft, a crypto startup that helps companies launch and sell tokens, has become a technical service provider. ArCoin sets a new standard for Ethereum tokens — ERC1404. It is specifically designed to meet regulatory requirements. Unlike the universal ERC20 standard, ERC1404 is more strictly controlled: such a token can be frozen, and the addresses to which users can send it must also be predefined. This “whitelist” of permitted addresses allows the SEC to almost completely control and track their circulation and ensures that tokens are not transferred outside of regulatory oversight. Each ArCoin grants the right to one share in the fund. The price of the coin is $1 with a minimum investment of $1000. A total of 100 million ArCoins will be available. Accrued interest is paid directly to ArCoin holders every quarter. You can buy shares directly through the website after passing the KYC / AML check. At the same time, investors can trade tokens with each other — the blockchain allows you to do without a broker. The fund’s shares will not be available for trading on stock exchanges and for secondary trading on crypto exchanges. Notably, the prospectus filed with the SEC in April 2019 states that in the future, Arca coins “may be traded on a public decentralized or centralized electronic exchange platform that is registered with the SEC as an alternative trading system, although there is no guarantee that such systems or platforms will be available.” But, apparently, this situation did not suit the regulator, and in the latest version of the document it was changed. The standard investor commission for fund management is 3.22%, but during the first year it will be reduced to 0.75%. Investors can keep ArCoin in their own wallets, but if the private keys from them are lost or compromised, the fund will replace the lost tokens with new ones. The digital assets are held in tokenized asset-oriented investment bank DTAC LLC, launched by TokenSoft last December. ArCoin offers companies and investors several use cases and wide integration of the coin into the work of structures. Individuals can use ArCoin to hedge their cryptocurrency portfolio against volatility, and financial institutions and other companies can use ArCoin to clear, settle, pay and lend “more efficiently, less costly, faster and with the ability to directly track all transactions.” The ability to pay for goods and services with tokens on US Treasury bonds is a revolutionary step that narrows the space between payment and investment funds.
Fight for a new trillion dollar market
US Treasuries, to which ArCoin is tied, are issued by the US Treasury Department and serve as a government debt financing instrument. Traditionally, they have a credit rating equal to or close to the maximum AAA, and are considered one of the safest and most reliable assets in the world. This makes US Treasuries highly sought after by central banks, financial companies, and private investors around the world, as they act as a safe haven from volatility in stock and corporate bond markets in times of geopolitical or economic turmoil. The SEC cleared ArCoin linkage to US Treasuries makes the asset the safest and most regulated token on the market. This is a great choice in turbulent financial times. The launch of Arca U.S. Treasury Fund is targeting one of Wall Street’s oldest outposts — investing in the US Treasury bond market.According to Brookings, its value is about $18 trillion. ArCoin is a modern alternative to existing methods of investing in Treasury securities (buying bonds from a broker or purchasing shares from an investment fund). Arca is clearly looking forward to the emergence and growth of a new market for fully regulated and SEC-approved digital shares in traditional assets. Moreover, their competitors are not other crypto funds, but traditional exchange-traded funds and ETFs. The Arca team is made up of Wall Street veterans and knows what a product needs to be that will be successful. Blockchain aims to show investors that it simplifies, cheaper and speeds up the process compared to the traditional market. On the site, the Arca team describes ArCoin as a “blockchain-traded fund”, or BTF. In comments to CoinDesk in February this year, CEO Ryan Steinberg said that Arca hopes to see large institutional investors as early buyers. It was for them that the company fought so long and hard to get registered with the SEC — it had to increase confidence in the products. “The answer to the question of why there are so few institutions in the crypto industry is simple: there are no institutional-grade products on the market,” Steinberg said, noting that ArCoin is just right for the needs of large investors. “This is a huge leap forward in legitimizing securities on the blockchain. Huge round of applause for the Arca team, great talent and domain expertise paired with great execution.” — TokenSoft CEO Mason Borda praised the Arca team. However, the Arca team understands that success is not guaranteed. Treasury digital assets are a new and untested market. In its filing with the SEC, Arca recognizes the potential risks for investors. For example, digital asset markets may not have the liquidity that US Treasury investors currently enjoy in traditional markets. “The use of blockchain is relatively new and untested. Therefore, investors should initially expect greater price volatility in the secondary market than would be the case if the shares had greater liquidity, ”the application says. Other risks include congestion on the Ethereum network and “the possibility of breakdowns and trading stops as a result of undiscovered technological deficiencies.”
To the conclusion
SEC-registered crypto investment products are nothing new. Cryptocurrency investment fund Grayscale Investments, for example, is one of the largest bitcoin funds that is regularly audited by the SEC. But the point is, Arca offers its own cryptocurrency, not Bitcoin. ArCoin is set to become just the first asset in the portfolio of SEC-approved financial products to be released by Arca. The increase in the number of such initiatives can convince the SEC that their launch does not carry enormous risks. For several years now, this regulator has refused to launch bitcoin ETFs, arguing this by the lack of a legal environment in the market, manipulation of asset prices, difficulties with liquidity, storage and arbitration, and non-compliance with the regulator’s rules. Now, amid the emergence of products such as ArCoin, the SEC may reconsider its opinion on Bitcoin ETFs. The SEC approval for Arca has potentially opened the door to new and innovative blockchain-based financial products. Regulatory registration can be a challenge for many companies, but Arca has shown how to achieve it. The project has taken a pioneering and revolutionary step towards combining traditional finance with digital investments. Subscribe to our Telegram channel
I see a lot of comments here about "yield curves" and looming recession and whatnot. I just want to say a couple of things about that. Think of me as that old grandpa who has been investing since Elvis was still cool. So here it goes. 1) Acorns is investing. It is not trading. Movies like Margin Call or Boiler Room are about trading. If you watch those movies, the stock market seems like a casino with absolute fortunes made and lost in seconds. That is true for the guys on Wall Street and day traders and bitcoin type trading. Lots of times they use leveraging and other very risky strategies that means they either win big or lose big, much faster and much more than the day to day change of prices of the underlying securities. Investing is a different animal. It is about buying and holding assets. 2) Stop thinking so statically. When you invest in an ETF like what Acorns buys, you are purchasing pieces of companies. Companies in the real world that are run by real people and selling real products. They are always trying new things, adjusting, changing their approach. Look at Coca-Cola. When I was a kid, all they made was sugary soda in glass bottles. In the 1970's when the health food movement started, everyone predicted doom and gloom for them because of changing consumer habits and reduced consumption of their core product. Dump Coke stock now! all my newsletters said. Did Coke disappear? No, they are bigger than ever! Today, they make everything from orange juice to bottled water to alcoholic beverages (in Japan). PepsiCo is barely a drinks company anymore. They make all the snacks we eat too, like Doritos and health brands like Naked. Proctor & Gamble went from a shampoo company to owning everything from Gillette to Charmin and Pampers. What I am saying is, companies are in business to make money, and they adjust to changing conditions - and keep growing. These are the kinds of S&P 500 companies your money is buying into. Every time they grow, launch a new product, buy another company, or enter another country, you grow with them. If you wait for the "perfect" time to invest, you will miss the next Powerade or iPhone. 3.) The ETF's that you are buying are run by real people too. Each one is a legal entity with a board of directors and manager or managers. You can download the prospectus for each one and get the names and contact info for the managers. They are paid to keep an eye on each stock in the portfolio and adjust as necessary to keep growing. If they see that a once-profitable company like, say, Sears/Kmart is starting to look wobbly, they move the money around. And since you're invested in 6,999 other stocks, that one loser doesn't have time to drag you down before they get out. Their pay and bonuses is tied to the performance of the ETF, so they have a vested interest in making sure it keeps growing. So for example, the VOO ETF has Donald M. Butler and Michelle Louie listed as the people responsible for it. 4.) The market always goes up. The oldest stock market in the world, the Amsterdam Exchange, has been around since 1602. How many plague epidemics and rising and falling emperors and Nazi invasions and Cold Wars have happened to Holland in that time? And it keeps going up. The S&P 500 went up during the Great Depression, not down. Stop worrying so much about the day to day. If someone offered to sell you a $100 bill for $5 today, would you take that deal? That's what investing is. There is no guarantee of course, but chances are pretty darn good, based on past history, that the $5 you chuck into Acorns today will grow to more than $100 in value in today's purchasing power, adjusted for inflation by the time you retire. 4.) Inflation is real. When I graduated high school, I could buy a nice three bedroom house for about $5K. I could buy a brand new Chevy for about $750 or $1500 fully loaded. If I had stuck that money under a mattress, it would buy a fraction of what it could then. When I bought a share of Coca-Cola in 1964, it was worth 8.4 cents (about $6.40 in today's money). Now it's worth $52.53 per share. See? It ran ahead of inflation. Plus, every single quarter since then, it has paid a dividend. After a couple years of dividends, those dividends earned a new stock, on and on snowballing faster and faster. And you have it even better than I did then, because now with Acorns and fractional shares, you don't have to buy whole shares. You can buy a bit of this stock and a bit of that stock and the tiny dividends from those tiny pieces can get to work right away! Blows my mind. I had to wait till the dividends built up to the value of the stock before the bucket would tip. And then wait some more. This fractional stuff is like a cheat code for compounding. Anyway, a stock is an asset. It has real value. Remember that. Whether the price goes up today or down tomorrow, you own a tiny piece of a company. 5.) The path to wealth is to own assets. You do not own your job. Your job is a liability unless you own the company. Concentrate on building real world assets and stop worrying so much about the daily news cycle. You can still buy Coca-Cola in glass bottles as you could back when. But you can also buy Simply Orange juice and Dasani Water and Minute Maid Lemonade and Powerade and hundreds of other Coca-Cola products that were not around when I bought my first Coca-Cola stock. And yes, the day to day value of that stock went up and down (New Coke was a particularly painful period) but after each dip, the company learned something and came back stronger than before. 6.) Be patient. This is a game of time. At first, you will not see much growth. But with time, as the companies you own move and adjust and things grow exponentially, at some point you will take off. Eventually you will be printing embarrassing amounts of money. But if you jump in and out, it will not happen and you will get slammed with taxes. Buy in, hold, wait, and stop watching the pot boil. As Warren Buffett says, "The stock market is a tool for transferring money from the impatient to the patient."
Daily analysis of cryptocurrencies 20191003(Market index 37 — Fear state)
https://preview.redd.it/f78u3mav3cq31.png?width=405&format=png&auto=webp&s=ec016c63f4800422148c967cbd04fa738b6041ab Asset Manager Stone Ridge Files SEC Prospectus For Bitcoin Futures Fund Another Bitcoin futures product is booting up, according to a Stone Ridge Asset Management filing with the U.S. Securities and Exchange Commission. The company filed a prospectus for a cash-settled Bitcoin futures fund — dubbed the NYDIG Bitcoin Strategy Fund — with the regulator on Wednesday, Oct 2. Based in New York City, Stone Ridge has some $15 billion in assets under management, serving clientele in both the United States and China. Founded in 2012, the firm offers portfolio management and advisory services. Bithumb Looking To Build A Regulated Bitcoin Exchange In India Bithumb Global is looking to build a regulated Bitcoin exchange in India, the South Korea-based cryptocurrency exchange said. Bithumb Global will engage with Indian regulators to build the exchange, it said, even as the Supreme Court is hearing a case where Bitcoin operators have questioned a move by the Reserve Bank of India to restrict banking channels for virtual currency transactions. A government panel has also recommended a ban on cryptocurrency trade in the country. The company is looking to expand in India by partnering with local cryptocurrency exchanges, fund Indian cryptocurrency startups, and introduce new initiatives for Indian traders, said co-founder and managing director Javier Sim. US State Of Ohio Suspends Service For Paying Taxes With Bitcoin Ohio Treasurer Robert Sprague announced the immediate suspension of the OhioCrypto.com website that allows businesses to pay taxes with Bitcoin (BTC). In an Oct. 2 press release, Sprague announced that according to an internal review, approval by the Board of Deposit was required before Ohio launched the website that allowed businesses to pay taxes with digital currencies. Furthermore, the State Board of Deposit has asked Attorney General Dave Yost to further research the legalities of how the crypto portal was set up and whether BitPay, the third-party processor that powered the service, constituted a “financial transaction device.” Libra Association Publishes Roadmap; Expects 100 Partners To Run Libra Nodes The Libra Association has published its first roadmap detailing the milestones the Calibra team plans to meet prior to the mainnet launch of Libra network. For the first milestone, the Libra Association expects to bring on five partners deploying full nodes on the network. By the launch of the Libra mainnet at milestone four,, the Libra Association expects 100 partners to run Libra nodes. According to the Libra Association, “one method we use for tracking the project’s success is how many of the deployed nodes are managed by different partners.” The Libra Association notes that each Libra node will “run on a mixture of on-premises and cloud hosted infrastructure” adding that “wider diversity of infrastructure will provide more resiliency to the Libra network.”
Encrypted project calendar（October 03, 2019）
ETC/Ethereum Classic:The 2019 Ether Classic (ETC) Summit will be held in Vancouver on October 3–4ANT/Aragon:Aragon (ANT) is the AGP for the new mandatory community review period, with a deadline of October 3.
Encrypted project calendar（October 04, 2019）
KNC/Kyber Network:Kyber Network (KNC) will update the maxGasPrice parameter in the Kyber Network contract from 100 gwei to 50 gwei within 2 weeks after October 4.
Encrypted project calendar（October 05, 2019）
Ontology (ONT):Ony Ji will attend the blockchain event in Japan on October 5th and explain the practical application based on the ontology network.BNB/Binance Coin:The Binance Coin (BNB) Oasis Game Hackathon will be held on October 5th in Bangalore, India, and will be hosted by Binance Labs, Matic Network, Cocos-BCX, Celer Network, Marlin Protocol.
Encrypted project calendar（October 06, 2019）
SPND/ Spendcoin:Spendcoin (SPND) will be online on October 6th
Encrypted project calendar（October 07, 2019）
GNO/Gnosis:Gnosis (GNO) will discuss the topic “Decentralized Trading Agreement Based on Ethereum” will be held in Osaka, Japan on October 7th. Kyber and Uniswap, Gnosis and Loopring will attend and give speeches.
Encrypted project calendar（October 08, 2019）
BTC/Bitcoin:The 2nd Global Digital Mining Summit will be held in Frankfurt, Germany from October 8th to 10th.
Encrypted project calendar（October 09, 2019）
CENNZ/Centrality:Centrality (CENNZ) will meet in InsurTechNZ Connect — Insurance and Blockchain on October 9th in Auckland.
Encrypted project calendar（October 10, 2019）
INB/Insight Chain:The Insight Chain (INB) INB public blockchain main network will be launched on October 10.VET/Vechain:VeChain (VET) will attend the BLOCKWALKS Blockchain Europe Conference on October 10.CAPP/Cappasity:Cappasity (CAPP) Cappasity will be present at the Osaka Global Innovation Forum in Osaka (October 10–11).
Encrypted project calendar（October 11, 2019）
OKB/OKB:OKB (OKB) OKEx series of talks will be held in Istanbul on October 11th to discuss “the rise of the Turkish blockchain.”
Encrypted project calendar（October 12, 2019）
BTC/Bitcoin:The 2019 Global Mining Leaders Summit will be held in Chengdu, China from October 12th to 14th.
Encrypted project calendar（October 14, 2019）
BCH/Bitcoin Cash:The ChainPoint 19 conference will be held in Armenia from October 14th to 15th.
Encrypted project calendar（October 15, 2019）
RUFF/RUFF Token:Ruff will end the three-month early bird program on October 15thKAT/Kambria:Kambria (KAT) exchanges ERC20 KAT for a 10% bonus on BEP2 KAT-7BB, and the token exchange reward will end on October 15.BTC/Bitcoin:The Blockchain Technology Investment Summit (CIS) will be held in Los Angeles from October 15th to 16th.
Encrypted project calendar（October 16, 2019）
BTC/Bitcoin:The 2019 Blockchain Life Summit will be held in Moscow, Russia from October 16th to 17th.MIOTA/IOTA:IOTA (MIOTA) IOTA will host a community event on the theme of “Technology Problem Solving and Testing IoT Devices” at the University of Southern California in Los Angeles on October 16.ETH/Ethereum:Ethereum launches Istanbul (Istanbul) main network upgrade, this main network upgrade involves 6 code upgrades.QTUM/Qtum:Qtum (QTUM) Qtum main network hard fork is scheduled for October 16.
Encrypted project calendar（October 18, 2019）
BTC/Bitcoin:The SEC will give a pass on the VanEck/SolidX ETF on October 18th and make a final decisionHB/HeartBout:HeartBout (HB) will officially release the Android version of the HeartBout app on October 18.
Encrypted project calendar（October 19, 2019）
PI/PCHAIN Network:The PCHAIN (PI) backbone (Phase 5, 82 nodes, 164, 023, 802 $ PI, 7 candidates) will begin on October 19.LINK/ChainLink:Diffusion 2019 will be held in Berlin, Germany from October 19th to 20th
Encrypted project calendar（October 21, 2019）
KNC/Kyber Network:The official online hackathon of the Kyber Network (KNC) project will end on October 21st, with more than $42,000 in prize money.
After bitcoin failed near the $8,500 resistance, there was a downside correction against the US Dollar. The BTC/USD traded below the $8,400 and $8,300 levels. Moreover, there was a break below the $8,200 level. However, the 100 hourly simple moving average acted as a support and a low was formed near $8,175. Recently, the price started a fresh increase and traded above the $8,300 level. There was a break above the 50% Fib retracement level of the last decline from the $8,536 high to $8,175 low. The price climbed above the $8,350 level and tested the $8,400 resistance. It seems like the 61.8% Fib retracement level of the last decline from the $8,536 high to $8,175 low is currently acting as a resistance. If there is an upside break above $8,400, the price is likely to retest $8,500. If the bulls manage to surpass the $8,500 barrier, there are chances of more upsides. The next stop for them could be near the $8,800 level. The next key resistance area is near the $9,000 level. On the downside, there is a decent support forming near the $8,250 and $8,200 levels. Moreover, there is a new connecting bullish trend line forming with support near $8,300 on the hourly chart of the BTC/USD pair. Review previous articles:https://firstname.lastname@example.org Telegram： https://t.me/Lay126 Twitter：https://twitter.com/mianhuai8 Facebook：https://www.facebook.com/profile.php?id=100022246432745 Reddi：https://www.reddit.com/useliuidaxmn LinkedIn：https://www.linkedin.com/in/liu-wei-294a12176/
Paywall / Subscribers The Globe and Mail Rob Carrick Published January 26, 2018 For Subscribers Surging investor confidence in early 2018 is starting to look like reckless enthusiasm. Investors have lately shown a willingness to take on risk in search of home-run returns, and the investment industry is serving up products to capitalize. The stock markets are not the problem, particularly the Canadian market. Annualized returns over all periods – from the past 12 months to the past 20 years – are far from excessive and could even be called modest. The U.S. market has been a lot stronger in the past decade, but it's now supported by a growing economy. Remember, it's recessions that usually cause a bear market. Strong market fundamentals support aggressive investing, but there's a limit. Here are four examples of how these limits are being tested right now. Adviser shame Financial planner Rona Birenbaum has noticed a trend lately of people disparaging advisers on the basis of it being so easy to invest for yourself that paying someone to do it for you is pointless and a waste. "I'm starting to hear client comments like 'my brother thinks I'm an idiot for using an adviser,'" she said. "You're almost afraid to say you pay for financial advice." You can see this same thinking in a recent exchange on The Globe and Mail's Gen Y Money Facebook page. After someone asked for referrals to a financial adviser, other members of the community tried to convince him to invest on his own. Dismissing advisers sends a message that investing is easy, which is an attitude that develops when a bull market is in full swing. There are simple ways to invest on your own – the exchange-traded fund portfolio with just four funds I wrote about recently is one example. But the overall investing process involves a lot more than just buying four ETFs. You have to rebalance a portfolio when the mix of stocks and bonds gets out of sync, resist the temptation to sell at market lows and tamp down your greed in market highs. And then there's the question of whether the results you're getting are sufficient to achieve your financial goals. DIY investing is a righteous choice, but it's harder than it looks in today's investing climate. There's no shame in paying a reasonable price for help. The rise in margin debt Buying on margin means putting down some of your own money to buy stocks and covering the rest of the cost by borrowing from your broker. If the shares go up in price, you make more of a profit than if you just used your own money. Falling share prices would likewise magnify your losses. The total amount of debt in investment accounts set up for clients to buy on margin was up 8 per cent between the end of 2016 and Nov. 30, 2017. But this number undersells the extent to which investors are embracing margin. The Investment Industry Regulatory Organization of Canada reports that margin debt soared to $25.6-billion at Nov. 30 from $15.9-billion in June, 2008, which is just before the last bear market began. Low interest rates explain a lot of this increase, just as they do the rise in mortgage debt and house prices. But rising margin borrowing also signals a growing acceptance of risk. In the Maclean's list of the 91 most important economic charts to watch this year, analyst Alexander MacDonald of Cowan Asset Management noted that margin debt no longer closely tracks the ups and downs of the S&P/TSX composite index. Since 2013, margin debt has grown steadily despite an up-and-down market. It's worth noting that in the latter half of 2008, the total amount of margin debt plunged 44 per cent. Margin debt is toxic in fast-falling markets. ETFs tied to current trends Marijuana stocks are driving the unprecedented trading volumes that have jammed up websites and phone lines at some online brokerage firms in early 2018. A few exchange-traded fund companies are capitalizing on this and other hot investing trends. The Horizons Marijuana Life Sciences Index ETF (HMMJ-TSX) has been a big hit for a fund not even a year old, with a one-month gain to midweek of 47 per cent and high trading volumes that one day this month reached a stunning 5.6 million shares. Horizons now plans an encore – the Horizons Junior Marijuana Growers Index ETF, which must still be approved by regulators. One other ETF provider has filed a preliminary prospectus for a marijuana ETF, while still other firms are readying niche products in cryptocurrencies such as bitcoin and the blockchain technology on which these currencies are based. Preliminary prospectuses have been submitted for such miscellany as the Harvest Blockchain Technologies ETF, Purpose Investments' Bitcoin Trust and the Evolve Bitcoin ETF. National Bank Financial reports that 72 per cent of ETF flows in 2017 went into traditional index-tracking products, which is a positive trend because these funds tend to be cheapest to own. But the success of HMMJ highlights the strong potential for lucrative niche ETFs as well. The management expense ratio for this ETF is 0.89 per cent, compared with 0.06 per cent for a cheap Canadian equity ETF. The "must buy stocks" mindset The growing thirst for stocks can most clearly be seen in the unprecedented levels of trading done by individuals through online brokerage firms. Basically, investors have broken their brokers' websites by logging on in swarms to trade stocks and see how their accounts are performing. Brokers were unprepared for this onslaught, which is a fail on their part. But let's understand that the level of trading people are doing today is not normal. It's a speculative surge triggered by a few hot sectors. A quieter but no less noteworthy move into stocks is being made by mutual fund investors. The Investment Funds Institute of Canada reports net sales of $7-billion in equity funds last year, compared with $6-billion in net redemptions in 2016. More speculative specialty funds generated net sales of close to $2.6-billion, compared with $36.7-million in redemption in 2016. Mutual funds are typically sold by advisers, a point that raises questions about the advice industry's claim to deliver value by tempering client urges to get aggressive after stock markets rise and to lose heart after declines. This isn't any kind of stock market forecast, but it does seem late in the game for investors – DIY or advised – to recast themselves as aggressive stock jocks. Follow Rob Carrick on Twitter @rcarrick https://www.theglobeandmail.com/globe-investoinside-the-market/know-your-limit-invest-within-it/article37751748/
How-to & FAQ for holding Bitcoin and Ethereum in an RRSP/TFSA
A few months ago I came across a way to hold crypto in my RRSP/TFSA and have been answering questions about how to do that in comments, DM's, and Skype consults. I figured it would be helpful to put together one big comprehensive FAQ. Cryptocurrency is treated as a commodity by the CRA and you must pay capital gains taxes on any profits if held outside a TFSA. If bitcoin goes to $1m as some are predicting, the Canadian government is going to be taxing a huge windfall in capital gains taxes. BACKGROUND Bitcoin & other crypto cannot be held directly in a RRSP/TFSA, and there are no eligible ETF's in North America yet. However, the ETN COINXBT which trades on the Stockholm Stock Exchange in Sweden (Nasdaq Stockholm) is eligible. ABOUT COINXBT COINXBT holds bitcoin directly and its price per share is based on a 0.005 multiple of the current bitcoin price. For example, if the current price of bitcoin is $10000USD, a share of COINXBT will be worth $50USD (ie: $493 Swedish Kroner) Company's website and full prospectus at: https://xbtprovider.com/ Price quote / chart: https://www.bloomberg.com/quote/COINXBT:SS HOW-TO TRADE Only some Canadian brokerages allow you to trade on eligible international exchanges in your TFSA. Some do not. Typically placing trades on international exchanges online is not an option and must be made over the phone broker-assisted at a much higher cost than typical North American securities. CANADIAN BROKERS I've called pretty much every brokerage to inquire if international securities can be held in a TFSA and what the fee is to transact. You may want to call yourself to see if policies have changed, but here's a summary:
National Bank: $75 per trade + $0.06 per share (confirmed works)
TD: Fee dependent on amount traded. Up to $5K is $187, $80K would be $520 per trade (confirmed works)
CIBC: $250 minimum, based on trade amount. $50K would be about $350 to buy and $350 to sell (confirmed works)
Scotia iTrade: $250 CAD per trade CAD, unlimited shares & order size (should work)
BMO Investorline: Fee-based on total trade amount. $50K would be $325 to buy $225 to sell, $50-$60K would be $350 to buy $240 to sell (should work)
Not available, or not available in RRSP/TFSA:
Interactive Brokers, can trade it, but not in RRSP/TFSA
HSBC (has access to almost every exchange other than Stockholm)
FAQ's Are you sure it's legal? I'm quite sure it's illegal.
I used National Bank Direct Brokerage. The fee's came out to $75 per trade + $0.06 per share. For example, the commission for a trade I did for 885 shares of COINXBT was $75 + $53.10 for a total of $128.10. Canadian funds were used to make the purchase and there were no forex fees for converting to Swedish Kroner (SEK)
How do I make a trade once I'm ready?
Call your brokerage and say you want to place a trade on the Stockholm stock exchange. You may be forwarded to a person that specializes in that, and eventually to a broker that deals with placing order on international exchanges. Tell them the symbol to trade is COINXBT and the name of the ETN is "Bitcoin Tracker One".
How do I calculate the number of shares to trade to max out my TFSA?
The price of COINXBT is in SEK. In my case using NB I took my balance minus anticipated fees divided by the current price to see how many shares I could buy. For example: For a $10,000 TFSA, current COINXBT price = $554.77SEK (84.27CAD), would be 117 shares at a cost of $9859.59 + $82.02 commission for a total of $9941.61CAD
Market or Limit order?
The first time I placed an order for COINXBT I tried to place a limit order a little below the market price. Over the next week the price of bitcoin ran up a lot and didn't come down. I ended up buying a lot higher. Since then I've been placing limit orders slightly above the current price or just market orders so that they go through right away. I've had no issues doing it either way.
When can I trade? Is it only possible to make the trade while the Swedish market is open and the TSX are open at the same time? Or can you place the order at any time of day?
XBT Provider has said they will monitor forks for 3-months and then decide what action to take. In the case of Bitcoin Cash, they sold the forked coins and distributed it as a dividend to anyone that held ETN shares on the fork date.
What about other cryptocurrencies?
An ethereum ETN was recently launched: COINETH that also trades on the Stockholm exchange. https://www.bloomberg.com/quote/COINETH:SS Other than that, I am not aware of any other eligible crypto securities that can be held in a RRSP/TFSA
How is the price of COINXBT determined?
It's based on the average price of the top 3 exchanges
Why not just buy GBTC?
GBTC is traded on the OTC exchange in the US and is not RRSP/TFSA eligible
Why can't I place a trade online myself?
For now, there are no crypto ETF's on North American exchanges. They have been in the works for years in the US, but no approvals yet. Evolve funds recently said they plan to launch a Canadian Bitcoin ETF. Trading COINXBT is a bit of a hassle, but you're getting in ahead of everyone else that are not willing to put in the time/effort. Once the Canadian/US ETF launches, it will probably be worth it to sell COINXBT and switch to the North American one which should be easy to trade online just like other ETF's.
Feedback If you've managed to get crypto into your RRSP/TFSA in any other ways than listed above please do leave a comment and I'll update the post. Thanks!
Based off the hype around the ETF I have decided to post some of my analysis and comments here. Enjoy the walls of text My comment: I will be very very suprised if we get approval. These statements from the most recent amendments to the prospectus alone lead me to believe that it will not be approved and if it is, that no real market makers (people that could influence the price of btc) will actually buy in. These few quotes are pulled directly from the SEC filing. Not to sound like a prick, but as far as I can tell 99% of crypto traders have no fucking idea as to how the real market works. The follow quotes from the prospectus are literally just the tip of the iceberg of reasons for people NOT to invest in the ETF IF it gets approved. Here's the source link as well in case anyone wants to read through the 127 page filing a few times like I did. Link: https://www.sec.gov/Archives/edgadata/1579346/000119312517034708/d296375ds1a.htm "Although currently bitcoin is not regulated or is lightly regulated in most countries, including the United States, one or more countries such as China, Icelandic, Vietnamese and Russia may take regulatory actions in the future that severely restricts the right to acquire, own, hold, sell or use bitcoin or to exchange bitcoin for fiat currency. Such an action may also result in the restriction of ownership, holding or trading in the Shares. Such a restriction could result in the termination and liquidation of the Trust at a time that is disadvantageous to Shareholders, or may adversely affect an investment in the Shares." "If regulatory changes or interpretations require the regulation of bitcoin under the CEA by the CFTC and/or under the Securities Act and Investment Company Act by the SEC, the Trust and the Sponsor may be required to register and comply with such regulations. To the extent that the Sponsor decides to continue the Trust, the required registrations and regulatory compliance steps may result in extraordinary, non-recurring expenses to the Trust. The Sponsor may also decide to terminate the Trust. Any termination of the Trust in response to the changed regulatory circumstances may be at a time that is disadvantageous to investors." "Potential conflicts of interest may arise among the Sponsor or its affiliates and the Trust. The Sponsor and its affiliates have no fiduciary duties to the Trust and its Shareholders, which may permit them to favor their own interests to the detriment of the Trust and its Shareholders." "The Sponsor has no fiduciary duties to, and is allowed to take into account the interests of parties other than, the Trust and its Shareholders in resolving conflicts of interest;" The Sponsor’s relationship with the Gemini Exchange creates an incentive for the Sponsor to sell the bitcoin it collects as its Sponsor’s Fee for U.S. dollars on the Gemini Exchange, which benefits the Sponsor’s affiliates through increased volume on the Gemini Exchange and which may negatively impact the value of the Trust’s remaining bitcoin;" I have plenty more points brought up in this filing that point towards rejection of the ETF or at least very minimal investment upon approval. All the people banking on a huge increase in the btc price upon approval have no idea how the actual market works. Having studied and worked (currently working) in market/financial analyst and analyst related postions for years I can tell you with a great degree of certainty that this ETF is not going to have a happy ending for anyone that invests in it. And FYI, anyone who thinks they can redeem their BTC for ETF shares and visversa, take a look at this quote relating to parties that are allowed to transfer btc to ETF shares and also shares into bitcoin (once again this is straight from the prospectus) "An Authorized Participant is authorized to serve as such under the Trust Agreement and pursuant to the terms and provisions of an Authorized Participant Agreement which it must enter into with the Sponsor, subject to acceptance by the Transfer Agent. Each Authorized Participant must be (i) a registered broker-dealer or other securities market participant such as a bank or other financial institution which is not required to register as a broker-dealer to engage in securities transactions and (ii) a participant in the DTC in order to enter into an Authorized Participant Agreement with the Sponsor on behalf of the Trust, subject to the acceptance by the Transfer Agent. In my opinion this ETF is a complete fucking joke based off of the filings. I'm not saying there won't be a rally in anticipation of the ETF nor am I saying there won't be a post approval rally (if it gets accepted), but in the end this ETF structure and make up will almost certainly be rejected, or if approved, will end in a very massive "sell after the hype" event.
How many of you have actually read the COIN ETF prospectus cover to cover
I have read it over twice already and am currently reading their most recent amended no.9 (request for listing approval and prospectus). I've read most people's responses and takes on how they think the ETF will effect the price, but how many of you (and people in ethtrader) actually have real stock market experience and truly understand how the etf will function? I am will to post some of my analysis if people are interested. However, I am overall mixed on the approval decisions immediate effects, but long term I suspect that (given the way the trust and ETF are structured) this will almost definitely end in a sell the news/dump after the hype event. Most crypto traders seem to think that bitcoin will go up because people will be able to buy it like crazy using the etf, but that's not how it works at all lol. Not to mention there is no way to exchange your etf shares for actual BTC unless you are an approved party (which currently is limited to only a few major financial institutions and will almost certainly remain this way.) I do think a speculative run up is a guarantee, but having read through the prospectus and (I have financial analyst and market analyst background) truly understanding it's structure I find it unlikely it will be approved and also extremely unlikely that many major investors will pour money into it like people think they will. Again if anyone wants me to pull together my detailed analysis of the information contained in the prospectus I will.
Don't give the Winklevii your money, just go buy Bitcoins!!!
Peter Schiff made a great point on his show this morning that this ETF idea is a silly one, and after reading the prospectus I agree. This feels like an exit attempt by them in which they pawn their bitcoin exposure/risk onto unsuspecting investors. Those who want to hold bitcoins would be advised to do the research/DD needed in order purchase one's own directly. It involves the exact same technological and regulatory risk, however you can avoid the management fees and centralization risks associated with this kind of financial vehicle. If this ever gets approval, which I doubt, please tread lightly. JUST GO BUY BTC!!!!
This is an automatic summary, original reduced by 85%.
ANSWER: D. Tyler and Cameron Winklevoss won a large settlement from Facebook in 2010 and sunk a large amount of their winnings into bitcoin and bitcoin projects. The twin brothers filed for SEC approval of their fund in 2014 and submitted multiple drafts of a prospectus that promised to open up investment in bitcoin to the masses-since an ETF would allow bitcoin investment by mutual funds, pension funds and hedge funds. ANSWER: B. A funny thing happened on the way to the SEC's rejection of a bitcoin ETF: The longstanding Bitcoin Investment Trust started acting more like the de facto ETF that some people had predicted it would be all along. ANSWER: B. Michael Moro, chief executive of bitcoin market maker Genesis Trading, says that everyone in the bitcoin network would like to tweak the underlying software to speed up transactions, which were once instant but have slowed because of high demand. Miners-the independent programmers who solve the mathematical riddles embedded in bitcoin transactions and so verify them-want to update the bitcoin software unilaterally so they can process more transactions simultaneously. To prevent the bitcoin miners from eroding the value of the currency, the reward for "Solving a block" of bitcoin would be halved every four years or so.
What is the price of each bitcoin being offered by the Nasdaq:COIN application?
Here is an article that claims the Nasdaq:COIN request set up by the Winklevoss Brothers will initially offer Bitoin at approximately $100 a piece by my calculation. Why is it so low? http://etfdailynews.com/2015/01/02/winklevoss-bitcoin-etf-files-to-sell-1-million-shares-coin/ "Securities and Exchange Commission (SEC) prospectus to list 1 million shares at $20.09 per share." "Officially known as the Winklevoss Bitcoin Trust, it’s set up as an ETF (exchange-traded fund)." "The goal is to make it easy to invest in Bitcoin without buying the digital currency directly." "The offer price is surprisingly low considering that each Winklevoss Bitcoin Share is designed – according to the SEC filing – to represent one-fifth of a Bitcoin." "One-fifth of the current Bitcoin price of about $315 is $63." So this was announced when Bitcoin was at $315 and $20.09 share would get you 1/5 of a bitcoin for $63.
Anyone ever see a prospectus on bitcoin. How could institutional buying not being considered? Especially China and the US. The way I see it is yet another investment vehicle for the banks to make money. If intuitional investing bought now, they could artificially manipulate to the upside.. then make money off of etf, option, and other fees. Just kind of looking for options here.
Since late 2016, 3iQ has been developing The Bitcoin Fund (the Fund), a proposed non-redeemable investment fund that would invest substantially all of its assets in bitcoin. Over approximately two years, 3iQ met with Staff of the OSC’s Investment Funds and Structured Products (IFSP) Branch and submitted various drafts of a preliminary prospectus for the Fund. Ultimately, IFSP Staff advised ... You Can Bet On Whether the SEC Approves the First Bitcoin ETF SEC to decide fate of Winklevoss Bitcoin Trust on March 11 Bitcoin has rallied over 1,000% since prospectus first filed Its a bit metaphysical -- even for a virtual currency. Speculators can bet on whether the Winklevoss BitcoinTrust (COIN), developed by the venture capitalist twins who were involved in a long-running legal battle ... WisdomTree is an ETF sponsor and index developer that uses a rules-based methodology to select and weight companies. Learn more about specialized ETFs here. Bitwise Bitcoin Etf Trust Form S-1/A. Companies; Documents; Forms; Alerts; Stock Ticker Lookup. Search / Go. Form S-1/A Bitwise Bitcoin Etf Trust [Amend] General form for registration of securities under the Securities Act of 1933. SEC.report. BITWISE BITCOIN ETF TRUST. Form S-1/A (Filer) Published: 2019-09-10 21:30:28 Submitted: 2019-09-11 Filing Agent: M2 Compliance. About Form S-1/A. forms ... Grayscale Bitcoin Trust™, symbol GBTC, enables investors to gain exposure to the price movement of bitcoin through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping bitcoins.
JUNG/JDST & UCO/SCO Gold and Crude Oil ETFs ( Analysis)
Let's talk about the new volatility ETF called MSVX, it's bias, performance, and what type of investor this thing may be suitable for. MSVX Prospectus: https://prospectus-express.broadridge ... This video is about an update on JUNG/JDST & overall future of the Crude oil market including SCO/UCO. And also, why I started trading Gold etf's such as JUNG for now. Feel free to comment, like ... This video is unavailable. Watch Queue Queue Bitcoin remained under $4,000 over the weekend, so let’s take a closer look at its performance. At the beginning of last week bitcoin recovered its losses after it experienced a terrible weekend ... Learn more about the WisdomTree Cloud Computing Fund, ticker WCLD: https://www.wisdomtree.com/etfs/thematic/wcld For a prospectus: https://www.wisdomtree.com...