Data Snippet – Bitcoin volatility surges past previous high
Bitcoin's price volatility has continued to rise since it surpassed 2018's high in mid-March.
Traders flee Tether as uncertainty mounts
Doubts surrounding Tether have grown stronger over the last couple of weeks, and on Monday, these doubts turned to panic — sending the so-called stablecoin to lows of $0.80 on Poloniex, and fueling a 12 percent rise in the price of Bitcoin on Tether-denominated exchanges.
CSA Staff Notice 46-307 Cryptocurrency Offerings
Cryptocurrency offerings can provide new opportunities for businesses to raise capital and for investors to access a broader range of investments. However, they can also raise investor protection concerns, due to issues around volatility, transparency, valuation, custody and liquidity, as well as the use of unregulated cryptocurrency exchanges. Also, investors may be harmed by unethical practices or illegal schemes, and may not understand the properties of the investment products that they are purchasing. Many of these cryptocurrency offerings involve sales of securities. Securities laws in Canada will apply if the person or company selling the securities is conducting business from within Canada or if there are Canadian investors. Given the significant growth in this area and requests for guidance, we are publishing this Staff Notice to help financial technology (fintech) businesses understand what obligations may apply under securities laws. We note that these products may also be derivatives and subject to the derivatives laws adopted by the Canadian securities regulatory authorities, including trade reporting rules.
Powering the flow of global capital
In the summer of 2016, Deutsche Bank Global Securities Services commissioned a survey of 200 market participants, to examine what was driving the key players in the industry and influencing their strategic thinking. Volatility remains top of the list for more than half of the institutional investors, banks, financial sponsors, brokers and sovereign wealth funds we surveyed. But beneath that turmoil, they highlighted very specific challenges and opportunities.
Hedging: Negating Bitcoin Volatility
Bitcoins price is volatile. It can be up 20% one morning, and down 35% the same evening. Bitcoin holders can now choose to use services provided by companies to hedge their risk on the bitcoins they possess.
CoinJar Announces Low Fee Hedged Accounts
The Bitcoin exchange announced its new hedged bitcoin accounts at Finovate Europe, a European financial technology conference. CoinJar users can now peg their bitcoin holdings to the price of four fiat currencies.
Bitcoin The new gold rush?
Mainstream perception of Bitcoin, much like the cryptocurrency itself, has been volatile. Aside from this volatility and other challenges around regulatory oversight and security concerns, there are clear benefits, particularly for payments. What will it take to get Bitcoin into mainstream adoption? What might the future of cryptocurrencies mean for traditional financial services?
