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Major Swiss Stock Exchange SIX Lists World’s First Multi-Crypto ETP Amidst Market Collapse

The fourth largest European stock exchange, SIX Swiss Exchange, will list the world’s first multi-crypto exchange-traded product next week.

Switzerland‘s principal stock exchange SIX Swiss Exchange will list the world’s first multi-crypto-based exchange-traded product (ETP) next week, the Financial Times (FT) reported Saturday, Nov. 16.

Backed by the Swiss startup Amun AG, the first global multi-crypto ETP will be listed under index HODL, and will track five major cryptocurrencies: Bitcoin (BTC), Ripple (XRP), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).

According to the article, each cryptocurrency will acquire a certain market share within the upcoming ETP, with Bitcoin accounting for around half of the ETP’s assets. The rest are set to be divided in fractions, with 25.4 percent in now-second cryptocurrency XRP, and 16.7 percent in Ethereum, while Bitcoin Cash and Litecoin will acquire 5.2 and 3 percent of the market, respectively.

Amun’s co-founder and chief executive Hany Rashwan commented that the upcoming ETF is organized in a way to comply with the same strict policies that are required by traditional ETPs. According to Rashwan, this will provide a well-regulated tool for trading cryptocurrencies for both institutional and retail investors that are limited in the field by crypto-unfriendly environments.

The Amun ETP index will be managed by the German index unit of investment management firm Van Eck, according to major Swiss news agency Finews.com. While Amun AG is based in the Swiss “crypto valley” town of Zug, it is reportedly a branch of Amun Technologies, a U.K.-based fintech company. The firm first announced their plans to introduce a crypto ETP in late September this year, according to Bloomberg.

According to Amun’s official website, SIX Swiss Exchange is the fourth largest stock exchange in Europe with a market capitalization of $1.6 trillion. On Wednesday, Nov. 14, head of securities and exchanges at SIX Thomas Zeeb claimed that blockchain-based digital exchanges will entirely replace conventional ones in “about ten years,” citing a large interest in cost advantages of the technology by brokers, banks, and insurance firms.

ETPs represent a type of security that is priced derivatively and trades intraday on a national securities exchange, based on investment tools such as commodity, a currency, a share price, or an interest rate, according to New York City-based investing and finance website Investopedia. ETPs can reportedly be actively managed funds, including exchange-traded funds (ETFs), and others.

Some experts have predicted that adoption of Bitcoin ETFs will be a “way bigger deal” than a cash settlement Bitcoin futures contract, and hence will be a bigger basis for the growth of crypto markets.

In Sweden, XBT Providers already have a Bitcoin ETP called Coinshares, which has attracted around $1 billion since 2015 when it was listed on major Swedish exchange Nasdaq Stockholm.

Recently, the U.S. Securities and Exchange Commission (SEC) stopped accepting public feedback on their Bitcoin ETFs policy review, following the previous denial of nine applications to list and trade various BTC ETFs from three companies, including ProShares, Direxion, and GraniteShares.

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Why the BCash Proxy War Could Be Very Bullish for Bitcoin Price

Despite Bitcoin Cash ABC looking like it will win the BCash civil war with notable support from  John McAfee and Bitstamp, the ugliness of the sideshow could actually have a bullish impact on Bitcoin (BTC) price. 


Pledge of Allegiance

Yesterday, John McAfee came across as if he had just binge-watched several ‘Game of Thrones’ box-sets as he pledged his allegiance to Jihan Wu and Roger Ver’s vision for Bitcoin Cash (BCash).

John McAfee Binance

His Tweet proclaimed, “I will not let my ego destroy me by making me think I could challenge the only real power in this space.” Still, that was just the hors-d’oeuvre. Attached to the Tweet was a screenshot of an email from McAfee to Wu. It contained the following:

I see you are going to war. I am the oldest warrior still standing on the battlefield… if I can serve you, you have my sword and my loyalty.

The main protagonist in this war would be Craig Wright pushing ‘Satoshi’s Vision’ of Bitcoin with his Bitcoin Cash SV fork. Needless to say, Wright did took this latest development in stride.

Dubbing McAfee ‘McFee’ (a reference to paid ICO endorsements), he accused him of being a conman and a scammer.

Bitcoin Cash ABC is Winning

Luckily for Bitcoin Cash ABC, one of the oldest exchanges in the industry, has also openly announced its support for Bitcoin Cash ABC. On the company’s web page it states that:

We will only support Bitcoin ABC during the fork… Initially, we will not support any alternative chains, but will monitor the situation…

Now, Bitcoin Cash ABC appears to be winning and is over 50 blocks ahead at press time, according to data from Coin.dance.

In addition, other versions like Bitcoin Unlimited and Craig Wright’s Bitcoin SV appear to not be mining blocks at this time. This also implies that three new coins could emerge if these other chains survive.

Meanwhile, Binance announced that it will not only support trading of these potential new tokens but will also retain the tickers of BCHABC and BCASV.

History Rhymes

So what does this Bitcoin Cash squabble have to do with Bitcoin? Well, touting itself as the ‘real’ Bitcoin, the Bitcoin Cash (or BCash) that prides itself on cheap, reliable and quick transactions has been anything but.

With even Dogecoin beating it at its own game, this latest ‘upgrade’ could prove to be the nail in the coffin for “Satoshi’s Vision” as the network has been unusable for the past few days. It may also force the Bitcoin Cash community to rethink their policy of scheduled hard-fork upgrade and address mining centralization.

In other words, there will be less confusion (if there is still any) about which is the ‘real’ Bitcoin, at least according to Binance CEO, Changpeng Zhao.

As of today, Bitcoin Cash price 00 has erased it’s pre-fork gains and is currently trading at the lowest price against BTC since October 2017.

Interestingly, one of the events that possibly served as last year’s catalysts was a Bitcoin Cash ‘upgrade’ that removed EDA (estimated difficulty adjustment), which was not only destabilizing the BCH network, but also affecting  Bitcoin’s hash rate.

Bitcoinist Bitcoin SV Hashpower

Worthy to keep in mind is that Bitcoin (BTC) price 00 was hovering at around these levels exactly a year ago as it began its historic bull-run.

Thus, last year’s ‘upgrade’ that occurred on November 13th, 2017, not only stabilized BCH but also sent the BTC hash rate to record highs as it more profitable to this day to mine bitcoin. This saw BTC price go to $10,000 by the end of the month.

Will this year be any similar? Much like last year, which saw recognition by Wall Street with the launch of Bitcoin futures in December, there are plenty of events on the horizon that could reverse the market in an instant.

Undoubtedly, all eyes will be on the launch of Bakkt next month as the next potential spark that could wake up Bitcoin price.

What are your thoughts on BCash ABC, as well as McAfee’s take? Let us know in the comments below.


Images courtesy of Bitcoinist archives, Shutterstock, Twitter (@realmcafee).

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Buy or Sell? What Traders Think About Today’s Bitcoin Cash Fork

All eyes are on the bitcoin cash (BCH) blockchain ahead of a scheduled technical upgrade tomorrow. 

While it’s a process that the world’s fourth-largest blockchain by market capitalization undergoes every six months, at which point it asks all users operating the software to upgrade to a newer version, there’s a twist this time around. Specifically, a deep contention over the cryptocurrency’s technical direction.

While previous forks have been supported en masse by bitcoin cash developers and miners, there are now marked differences of opinion between supporters of two main versions of the software – Bitcoin ABC and Bitcoin SV – over the future the direction of the code’s specific features (Bitcoin SV, most notably, would continue boosting the software’s block size). 

This is significant for those who own or trade BCH because, if neither side has majority backing, then the bitcoin cash chain will undergo a split into separate blockchains, each with its own cryptocurrency.

This raises questions for investors and potentially brings opportunities into play.

Market movements

One way to begin to assess options ahead is to look at how other traders are already responding. Over the course of four days from Nov. 2–6, the price of bitcoin cash surged 49 percent to reach a two-month high.

Perhaps not coincidentally, the jump occurred within hours of major cryptocurrency exchanges Binance and Coinbase announcing their support for the upcoming hard fork.

That’s likely because, if the major exchanges are accommodating the fork, potentially millions of traders will have access to BCH buying and will just need to wait a little for their wait for the free coins, and, as such, a wave of demand was triggered by the news.

Cryptocurrency trader Josh Rager described the sudden surge in bitcoin cash’s recent performance as an anomaly when compared to the broader market, suggesting the price rise must be a result of hype surrounding the fork.

Rager told CoinDesk:

“With current price action of BCH, it’s 100 percent related to the fork and support from exchanges. No other major cryptocurrency is seeing a notable price change.”

A technical analyst would argue though that all known information is reflected in the price of an asset and, by that logic, the sudden rise could have been foreseen. A trader going by the handle “Crypto Rand” did, in fact, suspect bitcoin cash was due for a big move anyway, although the fork news likely was the catalyst.

“Definitely the move was pushed by the news, but not only because of it. Technical analysis wise, it was also looking interesting. The current range proved solid for a long time having some good accumulation over there,” he said.

Gauging sentiment

Since many notable cryptocurrency exchanges announced support for the fork, a few have even launched futures contract-like trading for future blockchains that could be created as a result of the split, which essentially act as placeholders until the fork is complete. 

Poloniex’s ‘pre-fork trading’ has been live since Nov. 8 but will come to a close at 15:00 on Nov. 15, and at the time of writing, BCHABC and BCHSV are trading at $250 and $175 respectively. Earlier today the gap between the two prices was much narrower, indicating favor towards a particular fork is not as one-sided as many first thought

Indeed, it’s an innovative way to gauge support for the fork, but a poll conducted by CoinDesk suggested the interest among causal traders was minimal.

When asked what their trading plans were ahead of the fork, a combined 76 percent of the 2,669 users answered they either plan to “wait and see” or are simply “not interested.”

Philakone, a prominent crypto analyst, also conducted a poll asking his audiences’ opinion on the upcoming fork.

So far, 41 percent have stated they felt BTCSV is likely to fail, with 36 percent believing it will succeed. By Thursday evening, we will know who guessed right.

Pro strategies

When looking at the price performance of past forks like zclassic or bitcoin private and their 90+ percent price declines, there’s merit in using caution when considering holding onto a forked coin long-term.

This sentiment does not seem to be lost among the traders who all agree entering a trade now would contradict their risk management practices. “I would sell half instantly and trade the other half during the next week, Rand said.

A trader going by the tag “Credible Crypto” agreed, speaking to the short-term outlook that cryptocurrency traders tend to abide by:

Most are in this for a quick profit and are not aiming to hold the newly forked coin for price appreciation. Those that sell first will win, the rest will be left behind (at least until the price for this coin stabilizes).

Popular Twitter crypto analyst Nick Cote offered some final wisdom.

“I wouldn’t be buying here. Buying in hope of something is a sure way to lose money over the long-term,” he concluded.

Disclosure: The authors hold BTC, AST, REQ, OMG, FUEL, 1st, USDT and AMP at the time of writing.

Businessman looking at chart image via Shutterstock

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Bitcoin Cash Price Analysis: BCH/USD Consolidating Near Key Support

Key Points

  • Bitcoin cash price traded as high as $637 and later corrected lower against the US Dollar.
  • There was a break below a key bullish trend line with support at $605 on the hourly chart of the BCH/USD pair (data feed from Kraken).
  • The pair is currently trading near a major support at $575 and the 100 hourly simple moving average.

Bitcoin cash price started a downside correction from the $640 swing high against the US Dollar. BCH/USD is currently consolidating near $575 and it could bounce back.

Bitcoin Cash Price Analysis

Yesterday, there were extended gains above the $600 resistance in bitcoin cash price against the US Dollar. The BCH/USD pair traded above the $620 resistance and settled above the 100 hourly simple moving average. The price traded as high as $637 before sellers appeared. As a result, there was a downside correction and the price moved below the $600 level.

During the decline, the price broke the 50% Fib retracement level of the last leg from the $534 low to $637 high. Moreover, there was a break below a key bullish trend line with support at $605 on the hourly chart of the BCH/USD pair. The pair extended losses and it is currently trading near a major support at $575 and the 100 hourly simple moving average. Besides, the 61.8% Fib retracement level of the last leg from the $534 low to $637 high is also near $575. Therefore, the price is likely to bounce back towards $600 and $620.

Bitcoin Cash Price Analysis BCH Chart

Looking at the chart, BCH price showing positive signs above the $575 support. There could be a fresh bearish move, but the price is likely to stay above the $540-550 zone. On the upside, a break above the $620 resistance may push the price above $650.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is back in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is well below the 50 level.

Major Support Level – $575

Major Resistance Level – $600

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Bitcoin Cash Price Climbs 11% to Hit 2-Month High

The price of bitcoin cash rose more than 11 percent on Tuesday, pushing its price to a new two-month high.

Market data shows that the cryptocurrency’s price has risen 30 percent since Sunday, and is currently trading at roughly $623. Bitcoin cash is the fourth-largest cryptocurrency by market capitalization, CoinMarketCap data shows.

The price of BCH was trading hands at $425 before surging 32.5 percent, where it reached a then-peak of $588 on Nov. 5, clocking a 5-week high in the process when it was later confirmed, according to Coinbase exchange data.

The market developments come as bitcoin cash prepares for a hard fork – or backward-incompatible code change – on November 15, this time involving two different implementations: Bitcoin ABC and Bitcoin SV. The cryptocurrency was originally created by way of a hard fork off of the original bitcoin network after the scaling debate boiled over last year.

BCH’s price boost makes it one of the top-performing cryptocurrencies of the day, based on information from crypto-data sources OnChainFX and CoinMarketCap.

Other top performers for Tuesday include XRP, which hit a one-month high earlier in the day (it has since risen above $0.50 apiece as of press time) and Stellar lumens, which has climbed more than 8 percent in the past 24 hours. On Tuesday, wallet service provider Blockchain announced that it would give away $125 million in XLM as part of an airdrop for its customer base.

As of the time of writing, the total market capitalization of all cryptocurrencies is up more than $6 billion on a 24-hour basis, reaching a 22-day high of roughly $218 billion.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Business chart miniature image via Shutterstock; charts by Trading View 

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