Over the last two years a tremendous amount of news and information about the crypto ecosystem have been generated and captured in newsletters, podcasts and more. The crypto ecosystem now has burgeoning news and research operations with companies like The Block, Messari, Coindesk and more. With more operations in place there are a significant amount of headlines and more to “weed” out.
Institutional investors have long relied on financial infrastructure to manage the tens of trillions of global assets under management — the top 4 custodians alone have a market cap > $550bn. Yet much of the existing infrastructure will not immediately port to crypto given cyber and physical security risks, lack of insurance, regulatory uncertainty, new tech stacks, and complexities introduced by protocol nuances such as staking.Meanwhile, crypto has captured institutional investors’ attention, with low correlation to other assets and tremendous return potential. While that uptake has been slow, digital assets appear to be a logical additive component when constructing a diversified modern portfolio. As such, we see potential in the full stack of financial infrastructure necessary to meet institutional needs — custody, prime brokerage, liquidity, derivatives, research, margin / lending, and so on. We see Anchorage, Skew, Compound and others as the first wave of many businesses in this space.
3. A new article from Brave New Coin titled: “Blockchain money transfer speeds put legacy systems to shame” in which they share details of a study BlockData did:
A new report by BlockData says blockchain money transfers are 388x faster and 127x cheaper than legacy financial systems — shedding new light on how blockchain-based financial solutions are poised to disrupt the remittance system status quo.
The report names Philippines-focused GCash, Nigeria-based SureRemit, and Singapore-based Instarem as notable blockchain-based remittance firms.
1. Tom Lee predicting, again: “Bitcoin to hit DMA200 by August — Tom Lee”
2. ETH is “NOT” a Security?: US SEC Chairman Jay Clayton Confirms ETH Is Not a Security. Now this headline got a lot of attention and it was later discussed this might not exactly be the case by Marco Santori:
Keyword: binding…we aren’t there yet.
Coin Center also published the letter and highlighted the key component which lead to the headline:
Your letter also asks whether I agree with certain statements concerning digital tokens in Director Hinman’s June 2018 speech. I agree that the analysis of whether a digital asset is offered or sold as a security is not static and does not strictly inhere to the instrument. A digital asset may be offered and sold initially as a security because it meets the definition of an investment contract, but that designation may change over time if the digital asset later is offered and sold in such a way that it will no longer meet that definition. I agree with Director Hinman’s explanation of how a digital asset transaction may no longer represent an investment contract if, for example, purchasers would no longer reasonably expect a person or group to carry out the essential managerial or entrepreneurial efforts. Under those circumstances, the digital asset may not represent an investment contract under the Howey framework.
Disclaimer: This commentary is provided as general information only and is in no way intended as investment advice, investment research, legal advice, tax advice, a research report, or a recommendation. Any decision to invest or take any other action with respect to any investments discussed in this commentary may involve risks not discussed, and therefore, such decisions should not be based solely on the information contained in this document. Please consult your own financial/legal/tax professional.
Statements in this communication may include forward-looking information and/or may be based on various assumptions. The forward-looking statements and other views or opinions expressed are those of the author, and are made as of the date of this publication. Actual future results or occurrences may differ significantly from those anticipated and there is no guarantee that any particular outcome will come to pass. The statements made herein are subject to change at any time. Arca disclaims any obligation to update or revise any statements or views expressed herein. Past performance is not a guarantee of future results and there can be no assurance that any future results will be realized. Some or all of the information provided herein may be or be based on statements of opinion. In addition, certain information provided herein may be based on third-party sources, which is believed to be accurate, but has not been independently verified. Arca and/or certain of its affiliates and/or clients may now, or in the future, hold a financial interest in investments that are the same as or substantially similar to the investments discussed in this commentary. No claims are made as to the profitability of such financial interests, now, in the past or in the future and Arca and/or its clients may sell such financial interests at any time. The information provided herein is not intended to be, nor should it be construed as an offer to sell or a solicitation of any offer to buy any securities, or a solicitation to provide investment advisory services.