New York-based crypto asset manager Grayscale reported a 42% growth in its product inflows in Q1 2019 over the previous quarter.
Americandigital asset manager Grayscale Investments reported a 42% growth in its product inflows in Q1 2019 over the previous quarter, the firm announced in a new financial report on May 13.
Grayscale was specifically bullish on major cryptocurrency bitcoin (BTC), reporting that the vast majority of investments in Q1 2019 were in its Bitcoin Investment Trust (BIT).
According to the report, Grayscale Bitcoin Trust secured $3.2 million in average weekly investment out of total average weekly investment of $3.3 million. As such, non-bitcoin investment products amounted to less than $0.1 million, the firm wrote.
Non-bitcoin investments include such products as the Grayscale Ethereum Trust, Grayscale XRP Trust, Bitcoin Cash Trust, and others, the firm explained.
Total investment into Grayscale Products increased from $30.1 million in Q4 2018 to $42.7 million in Q1 2019, with 73% of investors represented by institutional investors. The company also wrote that hedge funds increased their investments significantly from less than $1 million in Q4 2018 to around $24 million in Q1 2019.
Founded in 2013 by major crypto venture capital firm Digital Currency Group, Grayscale’s investment products include the publicly quoted Grayscale Bitcoin Trust (OTCQX: GBTC), Grayscale Ethereum Classic Trust (OTCQX: ETCG), and a diversified product called the Grayscale Digital Large Cap Fund.
On May 1, Grayscale debuted its provocative bitcoin commercial “Drop Gold,” urging investors to invest in Grayscale’s BIT instead of holding to gold, which the firm characterized as an old-fashioned asset that weighs down investors’ portfolio.
First announced in August 2018, ICE’s Bakkt is planning to test bitcoin futures trading and custody in July 2019.
Bakkt plans to roll out testing for bitcoin futures trading in early July 2019, Bakkt CEO Kelly Loeffler announced in a Medium post on May 13.
First announced in August 2018, institutional crypto exchange Bakkt now announced that it will soon introduce bitcoin futures trading testing on a federally regulated futures exchange in collaboration with its parent company Intercontinental Exchange (ICE).
Specifically, Bakkt is working with both ICE Futures U.S. exchange and ICE Clear U.S. clearinghouse to prepare the first testing of bitcoin futures trading and custody. Loeffler wrote:
“In conjunction with our exchange and clearing partners at ICE, we’ll be working with our customers over the next several weeks to prepare for user acceptance testing (UAT) for futures and custody, which we expect to start in July.”
Along with the announcement, the company also reported that it was working closely with the United States Commodity Futures Trading Commission in order to be compliant with federal regulations, as well as to meet major requirements in terms of investors protection.
In late April, Bakkt acquired crypto custodian service Digital Asset Custody Company (DACC), also announcing that the firm filed with the New York Department of Financial Services to operate as a trust company to serve as a Qualified Custodian for digital assets.
Most recently, Reuters published an article alleging that the ICE took advantage of the “crypto winter” of 2018 purchase crypto assets at a discount for its Bakkt platform.
An upcoming crypto exchange says its platform is built upon an institutional-grade trading engine capable of processing 2 million orders per second.
A new blockchain trading platform says its secure, reliable infrastructure enables users “to stay ahead of market movements and manage risk and loss like never before.”
As well as supporting a wide range of mainstream cryptocurrencies such as bitcoin, ether and litecoin, Bcnex says it is constantly expanding its offering to other quality tokens.
In its white paper, the startup says that it wants to offer an antidote to the problems that currently blight crypto exchanges: weak technical architecture, a lack of liquidity, poor customer service and inadequate security.
Bcnex says its platform is built upon an institutional-grade trading engine that is capable of processing up to 2 million orders per second. This infrastructure is complemented by a “rich and abundant source of liquidity” that ensures transactions are executed promptly and without being passed through intermediaries. As well as offering a user-friendly experience through its desktop and mobile apps, the company says its team is available around the clock to resolve technical and business issues with speed.
The white paper adds: “Bcnex is backed by the experience of its individual members who have developed and managed world-class financial systems in the Forex market as well as real-time data application systems. We have in-depth understanding and experience in building such systems.”
A robust architecture
According to Bcnex, its exchange features a robust microservices architecture in which thousands of bots are continually placing hundreds of orders per second — and as a result, it claims to be faster than 99% of live exchanges.
To eliminate overloaded systems and backed-up transactions, an order matching system sees buy and sell orders stored in high-performance queues. Physical servers can be added quickly to ensure scalability at times of high demand, and Bcnex says this is achieved without compromising on stability or access speeds.
From a security perspective, the exchange says that it has been engineered from the ground up in its ambition to achieve “banking industry level auditing and security compliance.” Robust firewalls and anti-denial of service tools are complemented with user alerts whenever abnormal activity is detected on an account. Meanwhile, 98% of Bcnex’s digital assets are stored in various cold wallets detached from the internet, meaning they are immune to malicious attacks.
Spot transactions, margin trading, future contracts and a 100% anonymous automatic order matching mechanism are some of the first features that are on Bcnex’s agenda. Transaction pairs with bitcoin, ether, USDT and Bcnex’s native BCNX token are going to be available at first. The exchange says BCNX can be used to buy and sell cryptocurrencies, as well as cover transaction fees. A “careful review process” is going to be used to ensure that only reliable tokens with strong liquidity and a large user base join its platform.
Consumers are going to be able to access Bcnex on the web, on Windows PCs and through specially created apps for Android and iOS, if they prefer. The exchange is going to launch in English and Vietnamese, with support for Chinese, Korean and Japanese set to follow as the exchange strives to become multilingual.
Bcnex’s initial coin offering began on May 3, and it is scheduled to conclude on June 27. The following month, the exchange plans to launch its platform — paving the way for transactions to be accepted.
Later this year, the platform is going to explore the prospect of creating an ecosystem to support blockchain-based startups. Then, in the first quarter of 2020, the Bcnex team is planning to introduce margin trading after undergoing a testing phase.
Determined to democratize cryptocurrency trading, the team added: “To date, the crypto market is still limited and difficult to enter. We strongly believe that more people should be able to participate in this exciting and promising digital economy.”
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