Galaxy Digital reports $112M Q1 loss, citing crypto price volatility

May 9, 2022 Coin Telegraph

Galaxy Digital reports 2M Q1 loss, citing crypto price volatility

Bitcoin and altcoins declined sharply in the first quarter in a selloff that was partly triggered by a shift in central bank policy.

Cryptocurrency investment manager Galaxy Digital Holdings reported a sharp loss in the first quarter due to unrealized losses in its digital asset portfolio, underscoring heightened volatility in the digital asset sector in 2022.

Galaxy Digital reported a net comprehensive loss of $111.7 million in the quarter ending March 31, compared to a gain of $858.2 million in the same quarter of 2021, the company announced Monday. In addition to unrealized losses in its digital asset portfolio, Galaxy’s overall losses were also attributed to investments in its trading and investment businesses.

The firm did report aggregate profitability for its asset management, investment banking and mining operations. Investment banking and mining posted record revenue and net comprehensive income during the quarter.

Assets under management held by Galaxy Digital Asset Management declined 5% during the quarter to $2.7 billion.

Galaxy’s declining profitability in the first quarter reflected extreme volatility in the digital asset market as Bitcoin (BTC) and altcoins experienced multiple large drawdowns. The market appears to be entering a capitulation phase in May due to Bitcoin’s strong correlation with other risk-on assets.

Risk assets, including crypto, have nosedived ever since the United States Federal Reserve and other central banks decided to aggressively pursue rate hikes to combat soaring inflation. Last week, the Fed hiked interest rates by 50 basis points, marking the largest upward adjustment in over two decades.

Galaxy Digital, a crypto investment manager, founded by Mike Novogratz, is set to acquire institutional custodian service and wallet operator BitGo for $1.2 billion. https://t.co/QinaTE3PRE
— Cointelegraph (@Cointelegraph) May 5, 2021

Despite market volatility, crypto fund managers and venture capitalists continue to make large, strategic investments in the space. Galaxy plans to finalize its aquisition of BitGo later this year after first announcing its intent to buy the digital asset custodian in May 2021. Meanwhile, venture capital funding in crypto and blockchain projects reached a record high in the first quarter.

Sushi and Synthetix get the boot in Grayscale DeFi fund rebalancing

April 7, 2022 Coin Telegraph

Asset Management

Crypto asset management firm Grayscale has added three new crypto assets to its funds and has kicked SushiSwap and Synthetix from its DeFi Fund following its first quarterly rebalance.

Digital asset management firm Grayscale, has added three new cryptocurrency assets across three main investment funds, while removing two other assets from its Decentralized Finance Fund as part of this year’s first quarterly rebalance.

Grayscale removed tokens from crypto-derivatives decentralized exchange Synthetix (SNX), and decentralized exchange SushiSwap (SUSHI), from its DeFi fund after the two crypto assets failed to meet the required minimum market capitalization. No other cryptocurrencies were removed during the rebalancing.

Grayscale’s DeFi fund, which was launched in July last year, currently holds approximately $8 million in assets. The digital assets remaining in the DeFi fund after the quarterly rebalance include Uniswap (UNI), Aave (AAVE), Curve (CRV), MakerDAO (MKR), Amp (AMP), Yearn Finance (YFI) and Compound (COMP).

The crypto asset manager added Avalanche (AVAX) and Polkadot (DOT) to its Digital Large Cap Fund, alongside adding Cosmos (ATOM) to its Smart Contract Platform Ex-Ethereum Fund (GSCPxE Fund).

The GSCPxE Fund, which was launched on March 22nd, offers investors the ability to bet on an index of Ethereum’s largest competitors. The GSCPxE Fund’s current holdings listed by the total amount held are ADA, SOL, AVAX, DOT, MATIC, ALGO, XLM and ATOM.

Grayscale remains the world’s leading crypto asset manager, reporting that it held $43.5 billion in assets under management as of Jan. 3rd, this year. The Grayscale Bitcoin Trust (GBTC) remains the largest fund with just over $30 billion in AUM, but has traded at an increasing discount to its net-asset-value for the past year. GBTC is followed in size by the Grayscale Ethereum Trust (ETCG) which currently holds approximately $11.8 billion in AUM.

01/03/22 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.

Total AUM: $43.5 billion$BTC $BAT $BCH $LINK $MANA $ETH $ETC $FIL $ZEN $LTC $LPT $XLM $ZEC $UNI $AAVE $COMP $CRV $MKR $SUSHI $SNX $YFI $ADA $SOL $AMP pic.twitter.com/67Pb7xneoQ
— Grayscale (@Grayscale) January 4, 2022

In 2021, cryptocurrency investment funds generated over $9.3 billion in inflows as institutional adoption rose to new highs. Grayscale is gearing up to offer a Bitcoin Spot exchange-traded fund (ETF) and said it was willing to pursue legal action if the investment product remains barred by the SEC.

Trader builds Bitcoin ‘buy the dip’ bot, outperforms DCA

February 8, 2022 Coin Telegraph

Bitcoin Trader

A Redditor has created an automated dip-buying bot that beats dollar-cost averaging into Bitcoin by roughly 10%.

While a bullish backdrop emerges in February, spare a thought for the traders trying to time the market. One savvy trader by the name of u/Samjhill on Reddit has built a trading tool that outperforms dollar-cost averaging (DCA) for buying Bitcoin (BTC).

DCA is the strategy in which investors buy a small amount regularly regardless of price fluctuations. It works in contrast to traders keen to get the lowest entry, timing the dip to perfection and avoiding “catching a falling knife.”

The aptly named “Buy the Dip Bot” aims to “get the best price for a given asset by using a limit strategy.” Inspired by another Redditor who suggested a manual limit-buy-order strategy for getting the best price entry, u/Samjhill took the idea one step further, coding up a dip-buying bot.

The bot places limit orders at several intervals below the current price, and if an order gets executed or canceled, it starts again. Using tech from Amazon Web Services, Python, Lambda, DynamoDB and React.JS while hosted on GitHub, the cost to run is low, “about $5 per month.”

While the bot has been beavering away since December, it hit a maiden milestone on Monday. Reaching profitability versus regular dollar-cost averaging, “the price-per-coin advantage is about (cheaper) 5%–10% right now, which you could also think of as getting that much more coin for your money,” Sam told Cointelegraph.

The bot runs a backtesting library to work out the best entry points for the limit buys. A complex process, the work paid off, culminated in a “winning strategy.”

When asked by Cointelegraph if he would recommend the bot as opposed to regular DCA, Sam replied it depends on where you are in your BTC journey:

“For people just starting out, regular DCA probably makes more sense since your goal is probably to stack as many coins as possible. For those later in their journey, they might have a decent stack already and want to minimize increasing their cost basis and so might benefit more from this.”

Sam, who first learned of Bitcoin around 2013, added that he is doing both DCA and the limit strategy “to get a more even curve of coin growth.”

While the future is currently Bitcoin orange for the trading bot, Sam built the system for easy integration with other coins. Ether (ETH) features on the GitHub page, and Sam hints he may roll out other coins to production.

Valkyrie’s latest ETF offering has exposure to Bitcoin

December 16, 2021 Coin Telegraph

Bitcoin

Crypto asset manager Valkyrie has launched an exchange-traded fund with exposure to Bitcoin on the Nasdaq Stock Market.

In a Wednesday SEC filing, Valkyrie said its Balance Sheet Opportunities ETF will not invest directly in Bitcoin (BTC) but 80% of its net assets would offer exposure to the crypto asset through securities of U.S. companies with BTC on their balance sheets. These companies may include custodians, crypto exchanges, and traders.

The filing specifies that Valkyrie’s ETF may invest up to 10% of its net assets in securities of Bitcoin mining firms, as well as up to 5% in the securities of pooled investment vehicles in the U.S. that hold BTC. At the time of publication, shares of the fund under the ticker VBB are trading for $24.48, having fallen more than 1.5% since launching on Wednesday.

Introducing the Valkyrie Balance Sheet Opportunities ETF (Nasdaq: VBB). Launching today on @Nasdaq. Disclosures in bio. pic.twitter.com/YgiyQcDPPW
— Valkyrie (@ValkyrieFunds) December 15, 2021

Valkyrie’s latest ETF filing follows the firm launching a Bitcoin Strategy ETF in October which offered indirect exposure to BTC with cash-settled futures contracts. Shares of the fund are currently trading on the Nasdaq for $18.70, having fallen roughly 27% since opening on Oct. 22.

Though the SEC has given the greenlight to investment vehicles linked to Bitcoin derivatives, including one from Valkyrie and another from ProShares, the regulatory body has yet to approve an application allowing direct investments in crypto. Several crypto ETF applications are still under consideration in the United States, while its neighbor to the north — Canada — has approved BTC ETFs from Fidelity.

According to data from Cointelegraph Markets Pro, the price of Bitcoin rose above $49,000 today but has fallen more than 30% since reaching an all-time high price of $69,000 on Nov. 9. At the time of publication, the BTC price is $47,736.

Dan Tapiero’s 10T will launch $500M fund for late-stage crypto firms

December 7, 2021 Coin Telegraph

Dan Tapiero’s 10T will launch 0M fund for late-stage crypto firms

10T

With the addition of the new fund, 10T Holdings’ assets under management would likely exceed $1 billion.

Macro investor Dan Tapiero is launching another multimillion dollar fund intended to invest in mid- to late-stage companies in the digital asset ecosystem.

According to a Notice of Exempt Offering of Securities filing with the U.S. Securities and Exchange Commission on Monday, Tapiero and his 10T Holdings partners Michael Dubilier and Stan Miroshnik have given the regulatory body notice of a $500 million growth equity fund for crypto and blockchain firms. The filing shows the fund has not yet sold any of the original investment.

The 10T DAE Fund 3.0 is the third to come from the growth equity firm, following a $200 million fund launched in February and a $750 million fund in September. The company lists 14 crypto and blockchain firms in its portfolio, including Kraken, eToro, Huobi, Mercado Bitcoin, Gemini, Bitfury and Ledger. With the addition of the $500 million fund, 10T Holdings’ assets under management (AUM) would likely exceed $1 billion — its website lists $770 million AUM at the time of publication.

Tapiero is no stranger to investments, but prior to the crypto boom, some of his business was in gold. The 10T Holdings founder also helped co-found Gold Bullion International in 2009 and has been actively speaking about the potential of the crypto ecosystem, including Bitcoin (BTC), as the adoption of digital assets accelerates.

According to data from Cointelegraph Markets Pro, the BTC price is $51,140 at the time of publication, having risen more than 20% since dipping to a monthly low to the $42,000s on Dec. 3. However, Cointelegraph reported there are indications that institutional investors are still looking to buy crypto.

Bitcoin AUM falls 9.5% to record largest monthly pullback since July

November 28, 2021 Coin Telegraph

Asset Management

The Bitcoin assets under management (AUM) market fell 9.5% to $48.7 billion in November while altcoin-based crypto funds such as Ether saw their AUM rise 5.4% to $16.6 billion.

While Bitcoin’s (BTC) position as a viable hedge against fiat inflation continues to attract investors, new data reflects a change in sentiment as Ethereum (ETH) and other cryptocurrency products pick up steam against falling Bitcoin assets under management (AUM).

The Bitcoin AUM market fell 9.5% to $48.7 billion in November, marking the year’s largest month-on-month pullback since July, according to a CryptoCompare report. On the other hand, altcoin-based crypto funds such as ETH saw their AUM rise 5.4% to $16.6 billion.

Monthly AUM of aggregated products. Source - CryptoCompare

As shown in the above graph, the total AUM across all digital asset investment products has fallen 5.5% to $70.0 billion, which coincides with the ongoing bear market ever since Bitcoin achieved an all-time high of above $65,000.

As a result of the 9.5% fall, the Bitcoin AUM market represents 70.6% of the total AUM share. Ethereum’s AUM, however, rose 5.4% to $16.6 billion while AUMs representing other crypto assets were up by $2.6 billion.

AUM by asset type. Source - CryptoCompare

Out of the total AUM offerings, Grayscale products amount to 76.8% of the AUM market. The Grayscale-dominated trust products fell by 6.8% to $54.5 billion. Other prominent players include XBT Provider ($5.0bn, 7.2% of total) and 21Shares ($2.5bn, 3.6% of total), evidenced by the graph below:

According to the report, weekly flows into Bitcoin-based products in November averaged $94.4 million. Out of the other $67.8 million, Ethereum-based products contributed to roughly $24.4 million, while Cardano- and Tron-based products amounted to $10.7 million and $10.5 million respectively.

American finserv giant Morgan Stanley reported increased their exposure to Bitcoin through purchases of shares of Grayscale Bitcoin Trust.

As Cointelegraph reported, Morgan Stanley’s recent filing with the United States Securities and Exchange Commission (SEC) highlighted a 63% increase in Grayscale Bitcoin Trust (GBTC) holding.

Sporting a market price of nearly $45, Morgan Stanley’s overall Bitcoin-centered portfolio surpasses $300 million, primarily aimed at BTC exposure without direct crypto investments

Major job postings from the crypto space in 2021

August 31, 2021 Coin Telegraph

Business

Some institutional players, online retailers, and media organizations have called for recruits with experience in crypto or blockchain.

As crypto and blockchain firms grow and need to navigate regulatory and economic challenges for the industry, many have to hire outside to find the best workers. This year, major companies, financial institutions, and even government agencies announced they were searching for fresh blood to help them adapt to the ever-changing crypto space.

In February, major online retailer Amazon posted it was seeking a software development manager in Mexico to help launch “a new payment product.” The Digital and Emerging Payments project was aimed at allowing residents of Mexico to buy cryptocurrencies with cash so they could spend digital currency while shopping on Amazon.

Though there are reports the online retailer intends to accept Bitcoin (BTC) payments by 2022, the company has not officially announced such plans. In July, Amazon said it was looking for a Digital Currency and Blockchain Product Lead for its Seattle office, hinting at a possible change as to how customers pay on Amazon’s websites.

Apple, the largest company in the world by market capitalization, seems to also be focusing on crypto payments based on a recent job posting. In May, the major tech firm said it was recruiting for a business development manager specializing in alternative payments, specifically preferring someone with experience in “alternative payment providers,” including cryptocurrency.

Reaching across industries

Though two of the Big Four may be considering a shift to digital payments, some financial institutions seem to require workers be able to work within regulatory guidelines while still growing the business. In April, the Bank of England announced it was looking for 7 people to fill new positions related to a central bank digital currency, despite the fact it has not officially reached a decision on releasing one. Japan’s Ministry of Finance was reportedly considering increasing its staff to address growth in the crypto market, including regulations concerning fiat-pegged stablecoins.

It seems as though job seekers with both a knowledge of cryptocurrencies or blockchain and the experience to back it up may have their pick of the litter when it comes to employment, given the industry is barely a decade old and has the potential to make money in a variety of companies. In July, major U.S. investment bank JPMorgan started accepting applications for blockchain-focused software developers, engineers, marketers and auditors.

Other firms simply seem to be responding to a growing industry in job postings. The crypto arm of asset management firm Fidelity Investments reportedly wanted to increase its number of staff by 70% in response to additional interest from institutional investors. Major crypto exchange Coinbase is also attempting to gain greater access to some of the 1.4 billion people of India by hiring locals for its engineering, software development and customer support operations in the country.

Reporting on crypto

Even media outlets don’t necessarily have the staff to properly report on the crypto space. News organizations like Bloomberg have dedicated journalists on crypto and blockchain, but Time Magazine is still looking for a chief financial officer who has "comfort with Bitcoin and cryptocurrencies."

According to Neil Dundon, the founder of crypto-focused job agency Crypto Recruit, “one or two years” experience is usually good enough for the industry, given it was only created in 2009. However, just as with the dawn of any new technology like radio, television, or the Internet, interest in and from candidates will likely grow as more institutions offer more options for cryptocurrency and blockchain education to meet demand.

Celsius becomes first CeFi or DeFi platform to cross $20B AUM

August 24, 2021 Coin Telegraph

Celsius becomes first CeFi or DeFi platform to cross B AUM

Business

In March, research from Alpha Sigma Capital suggested that the platform would reach $30 billion in assets under management by the end of 2025.

Crypto lending platform Celsius Network has reported it holds more than $20 billion in digital assets, making the company one of the largest in decentralized finance.

In a Tuesday announcement, Celsius said its holdings had grown more than 1,900% in less than a year, from $1 billion in June 2020 to $20.3 billion as of Aug. 13. The company conducted an internal audit using technology provided by analytics firm Chainalysis, also determining it was adding roughly $1 billion in new digital assets monthly.

According to Celsius CEO Alex Mashinsky, the platform’s growth could be attributed to its “low-cost lending and high-interest yield on 43 cryptocurrencies” as well as its community-centric model. The Celsius website shows the platform currently has more than 962,000 users, or roughly 1% of its goal “to bring the next 100 million people into crypto.”

In March, research from Alpha Sigma Capital — also an investor in Celsius — suggested that the platform would reach $30 billion in assets under management by the end of 2025. Though the decentralized finance, or DeFi, space has been disrupted with its largest-ever attack through an exploit in the Poly Network this month, Celsius has paid out $468 million in crypto rewards to depositors in the last year.

IMF intends to ‘ramp up’ digital currency monitoring

July 29, 2021 Coin Telegraph

CBDC

The fund will greatly expand to cover all aspects of digital currency while also working with related financial institutions.

The International Monetary Fund, or IMF, plans to “step up” its monitoring of digital currencies, according to a report by Reuters. This intent, as published in an IMF paper Thursday, details how the fund plans to “manage this far-reaching and complex transition” toward a digitized economy.

“Rapid technological innovation is ushering in a new era of public and private digital money,” the report reads, highlighting the benefits of digital assets. “Payments will become easier, faster, cheaper, and more accessible, and will cross borders swiftly. These improvements could foster efficiency and inclusion, with major benefits for all.”

However, such implementations can only occur if the IMF can “keep pace with policy challenges,” which require a deeper look into digital economies as a prospect. The fund plans to work with institutions “consistent with its mandate,” such as central banks, regulators, and the World Bank while expanding its own digital money research.

As disclosed in an April 2021 paper, the IMF plans to add five sets of experts to properly conduct research. Their skills include lawyers, digital risk experts, financial sector experts, fiscal economists, and data specialists. This set of skills should thoroughly cover research into the digital currency industry, the paper claims.

The fund will target Central Bank Digital Currencies, or CBDCs, stablecoins, cryptoassets, and more. It will examine how these assets represent financial independence, can act as reserve currencies, and how they can replace current payment systems.

Earlier this week, the IMF published a warning regarding El Salvador’s recent Bitcoin law. While it didn’t mention the country directly, the warning noted that “granting cryptoassets legal tender status” could threaten local economies, not to mention the time-consuming process of citizens “choosing which money to hold.” Conversely, the IMF went on record earlier this month claiming that CBDCs could provide the global financial system with a “clean slate.”

$157B Victory Capital plans to enter crypto market

June 9, 2021 Coin Telegraph

Asset Management

The firm aims to let U.S. investors get exposure to crypto through a private fund tracking the Nasdaq Crypto Index.

Investment firm Victory Capital Management announced it would be taking steps for its U.S.-based investors to get exposure to the crypto market.

In a Wednesday announcement, Victory Capital said it would be the exclusive sponsor of “private placement funds and other vehicles” based on the Nasdaq Crypto Index, or NCI, an index developed by Nasdaq and Brazilian crypto asset manager Hashdex. The firm said it plans to launch a private fund for accredited investors tracking the NCI, as well as private funds that will track the Nasdaq Bitcoin Reference Price Index and the Nasdaq Ethereum Price Index.

“Cryptocurrency is a viable asset class that can be part of a well-diversified portfolio,” said Victory Capital’s ETF provider VictoryShares president Mannik Dhillon. “By investing in a portfolio designed to track the NCI, investors can seek returns that align with the cryptocurrency market in a diversified manner, gaining exposure to multiple digital assets as this market continues to evolve and mature.”

Hashdex partnered with Nasdaq to issue a Bitcoin exchange-traded fund in Bermuda in September, with the Bermuda Stock Exchange approving the product in February. Its Nasdaq Crypto Index consists of 8 cryptocurrencies: Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Chainlink (LINK), Stellar (XLM), Filecoin (FIL), and Uniswap (UNI).

As of April 30, Victory Capital has more than $157 billion in assets under management. In contrast, digital asset manager Grayscale reported yesterday that it has $30.9 billion assets under management for its crypto investments.

Digital Asset Management

Reaching across industries

Reporting on crypto

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