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Morgan Creek and Exos file Bitcoin fund with SEC

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Morgan Creek and Exos Financial filed a new Bitcoin (BTC) fund with the U.S. Securities and Exchange Commission, or SEC, on Thursday. If approved, the fund will offer institutional investors another way to long the flagship cryptocurrency without the volatility of owning it outright. 

Kevin Rooke reported Friday that the Morgan Creek-Exos Risk Management Bitcoin Fund has been filed with U.S. regulators. The fund intends to provide direct exposure to Bitcoin with inbuilt mechanisms to reduce allocation when quantitative signals turn negative.

As Rooke reports, the fund “handles technical details around trade, transfer, and custody of Bitcoin.”

Founded by Mark Yusko, Morgan Creek Capital Management provides alternative investment products. The firm operates a digital asset division that specializes in blockchain technology and Bitcoin investments.

Exos Financial is a business-to-business institutional finance platform that has been built to deliver all of the services of a traditional investment bank. The firm originates, trades and invests in alternative assets.

This story is still in development.





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RSK-based DeFi protocol launches innovative decentralized exchange concept

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DeFi protocol Money on Chain, a lending platform and stablecoin issuer based on Bitcoin (BTC) sidechain RSK, announced Wednesday the launch of TEX, an automated token swap platform based on an order book with a unique twist.

Instead of being available instantaneously, orders are processed in batches according to a slightly variable interval of a few minutes. Each execution, called a tick, matches the orders submitted to the blockchain.

Each trade occurring in a given tick is performed at the same average price between all orders submitted by traders. Limit orders submitted by users indicate the maximum or minimum acceptable price. For example, a limit order to sell Bitcoin for $18,000 will not be triggered if the average price is $17,900.

As Max Carjuzaa, CEO of Money on Chain, explained to Cointelegraph, the system also uses an oracle system for more fine-tuned control. With so-called market maker orders, traders express a price with a certain percentage offset from the reference rate obtained by the oracle. This ensures that the orders will track the changes in price occurring between ticks.

The design of the system was inspired by the London Spot Fix, a pricing mechanism for gold where a committee decides on the price of gold two times per day.

Automated market makers like Uniswap are often seen as a necessity in light of the slow performance of blockchain-based systems. When asked if these concerns drove the design of TEX, Carjuzaa replied:

“No, the primary reason it was adopted is fair price discovery. The method used in the TEX is a way to avoid front-running and ensure fair price discovery, even at low volume.”

Front-running and price discovery are often considered major issues in AMM exchanges. But Carjuzaa also believes the system “needs much less liquidity to operate.” For the same liquidity, he claims AMMs will have more slippage compared to TEX. This benefit is “especially important in a new network, and enables organic liquidity growth.”



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2 counterarguments for CNBC’s Brian Kelly who sees a $19K Bitcoin top

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CNBC Fast Money trader Brian Kelly sees three potential signs of a price top as Bitcoin (BTC) hits $19,000. Both fundamental and technical factors suggest a pullback could be imminent as the rally becomes overextended.

BTC/USDT 1-hour chart (Binance). Source: TradingView.com

Kelly named three reasons why a short-term Bitcoin pullback might occur. The reasons were the pump of altcoins, overpriced address growth and high funding rates. On Nov.25, he said on CNBC:

“I’m still a Bitcoin bull. In the long run, I’m going to be a bull for the next decade. But, if I take off the long-term investor hat and put on my short-term hedge fund trader hat, there are a couple of things out there that I’m starting to see are signs of a top.”

Altcoin pump is shaking things up

As Cointelegraph reported, alternative cryptocurrencies (altcoins) such as XRP and Stellar (XLM) have surged steeply in recent months. Their uptrends were reminiscent of the January 2018 altcoin mania, when BTC started to pullback and altcoins rallied.