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Goldman Sachs Leads $15M Investment in Coin Metrics

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Wall Street banking giant Goldman Sachs has led an investment round for industry data provider Coin Metrics.

In an announcement on May 5, the leading provider of crypto financial intelligence, Coin Metrics, stated that it had concluded a Series B funding round of $15 million.

In addition to Goldman, which added Bitcoin to its returns report last month, investors included some big names in crypto venture capital such as Castle Island Ventures, Highland Capital Partners, Fidelity Investments, Avon Ventures, and Communitas Capital.

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Other investors participating in the second round included Acrew Ventures, Morningside Group, BlockFi, and Warburg Serres Investments.

Crypto Data For Institutions

The company, founded in 2017, provides industry analytics, on-chain data, market insights, and network information. It has pivoted to a more institutional client base following increase interest in digital asset investing over the past year.

Coin Metrics clients currently include Fidelity Investments, Osprey Funds, and BlockFi. However, on April 30 it was reported that Fidelity has launched its own platform dubbed Sherlock, which will be similar to Bloomberg’s Terminal collating data on fundamental and technical analysis for the crypto industry.

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The company recently announced several new products, including a network risk management offering called FARUM, and a universal block explorer dubbed ATLAS. Co-founder and CEO, Tim Rice, stated that the tremendous interest the firm is seeing in these offerings reinforces the value of on-chain data to institutions engaging in crypto assets. He added:

“Our data is clearly on a path to becoming an integral part of the infrastructure for the future of finance.”

Global head of digital assets of Goldman Sachs, Mathew McDermott who will take a seat on the Coin Metrics board of directors, commented that data is critical for the mainstream adoption of crypto assets by traditional investors and financial services players.

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Big Banks Eyeing Crypto

According to Bloomberg, most major banks have stayed on the sidelines until now and this bull market has been very different from the previous one in 2017/18. They have become more comfortable with how crypto works and as their clients push for access to the $2.2 trillion market.

Rice stated that customer demand is finally pulling the big banks in, adding:

“Having a marquee name such as Goldman Sachs as an investor and client is not just big for Coin Metrics, but for the industry as a whole,”

Goldman Sachs filed for a Bitcoin ETF with the SEC in March and according to crypto custody firm New York Digital Investment Group, Bitcoin and crypto assets will be coming to hundreds of American banks this year.

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Grayscale’s Top Executive Joins Robinhood as New Chief Compliance Officer

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Robinhood hires a new CCO, the chief compliance officer of Grayscale

Robinhood brokerage app has welcomed Benjamin Melnicki as a new Chief Compliance Officer, who is also the holder of the same position at Grayscale Investments. He joined Grayscale in early January this year.

At the moment, Robinhood’s cryptocurrency arm is facing scrutiny from financial regulators. Last year, Robinhood was a target of an investigation connected to anti money laundering and certain cybersecurity problems experiences by its crypto division.

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As reported by U.Today previously, later this year, the brokerage firm plans to roll out cryptocurrency wallets for its users. The trials of wallets will kick off in October and will allow customers to deposit and withdraw cryptocurrencies to addresses beyond Robinhood seamlessly.

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Crypto Exchange

Average Aussie crypto portfolio grew 258% in FY 20-21, survey reveals

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The average portfolio size on Australian cryptocurrency exchange BTC Markets has grown from $577.65 (795.5 Australian dollars) to $2,069.16 (2849.5 AUD) in the financial year 2021, signaling a 258.2% increase in portfolio holdings, according to exchange data compiled by Statista on a recent BTC Markets survey.

Data on the survey shows that the average portfolio size of female and male investors in fiscal 20-21 on BTC Markets was $1,924.30 (2,650 AUD) and $2,214.03 (3,049 AUD), respectively. However, in 2020, the average portfolio size of female Aussie investors exceeded male investors slightly. 

Transaction data on the exchange also showed a pattern of growing investment demand with aging. Considering the data provided by BTC Market on Australia’s average initial investment, investors above 65 years old have invested roughly $3,158.03, the highest ofall demographics.

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Following an incremental reduction across the various age groups, the youngest cryptocurrency traders, ranging from 18 to 24 years, tend to make comparatively small investments, standing at $792.96 on average. While older Australian crypto investors outweigh the new generation in initial investment, the younger crowd shows comparatively more activity in terms of daily trades.

Resonating the findings above, a September report from financial comparison website Finder shows that one in six Australians own cryptocurrencies, amounting to $8 billion in total investment. The report suggests that, like many other users in advanced industrialized countries, Australians were increasingly viewing cryptocurrencies as a new asset class. 

According to Cointelegraph’s report on the matter, Bitcoin (BTC) is the most popular cryptocurrency for the Australian crypto market held by 9% of investors. Other popular investments include Ether (ETH), Dogecoin (DOGE) and Bitcoin Cash (BCH). The report showed that, despite the growth in crypto investments, a significant barrier to entry for Australians is the difficulty in understanding crypto and the risks related to volatility.

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Crypto Exchange

Switzerland to Impose Anti-Money Laundering Rules on Crypto Providers: Report

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FINMA requires all cryptocurrency providers to step up their game and monitor whether criminals use digital assets in illicit transactions.

The Swiss Financial Market Supervisory Authority – FINMA – would reportedly require local digital asset providers to take additional steps in preventing criminals from employing cryptocurrencies. The watchdog would also turn its sight towards bitcoin ATMs as it believes that drug dealers often use these machines.

FINMA Targets Criminals Operating with Crypto

According to a Finews report, Switzerland’s financial regulator – the Swiss Financial Market Supervisory Authority or simply FINMA – would closely supervise local crypto providers as an attempt to clamp down on money-laundering transactions.

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Swiss platforms and brokers dealing with digital assets would have to enhance their monitoring efforts and observe if bad actors employ cryptocurrencies. The Bern-based watchdog believes the initiative is “urgently necessary,” stressing that criminals use the asset class even to fund terrorism acts.

FINMA also turned its attention towards bitcoin automated teller machines. According to the regulator, drug dealers frequently use such ATMs as payment systems. It is worth noting that Switzerland is a relatively small nation, but its 130 Bitcoin automated teller machines place it in the sixth position among the countries with the most stations.

FINMA also passed an anti-money laundering provision according to which it lowered the threshold for unidentified crypto purchases from 5,000 Swiss Francs (CHF) to 1,000 CHF (around $1,080). Or, in other words, all financial providers dealing with digital assets have to collect data on anyone initiating transactions that exceed this amount.

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UBS: Crypto Regulations Could Spell Trouble

One of the leading banks in Switzerland – UBS – recently shared its views on the hot topic of digital asset regulations as it indicated that implementing certain rules might negatively impact the market.

Furthermore, the bank warned its customers that regulatory crackdowns can pop the “bubble-like” crypto markets. The Swiss bank also labeled the asset class as “speculative” alerting that it could be dangerous for professional investors:

“While we can’t rule out future price gains in cryptos, we see this as a speculative market that poses significant risks to professional investors.”

On another note, though, when the cryptocurrency market was booming at the beginning of May, UBS demonstrated a different attitude. Back then, it intended to enable its wealthy customers to receive digital asset exposure later in 2021 through third-party vehicles.

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