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Switzerland Approves First Bitcoin-Cryptocurrency ETF with Ticker $HODL

The Bitcoin ETF $HODL, offered by Amun Crypto, will begin trading on Switzerland’s Six Swiss Exchange beginning next week. The ETF’s earnings will be linked to five different cryptocurrencies.


The ETF is being offered by Amun Crypto, a U.K. based fintech company. It will begin trading on Six Swiss Exchange next week. Six is Switzerland’s chief stock exchange, as well as the fourth largest in Europe.

According to the Financial Times, the ETF “[…] has been designed to track an index based on the movements of five leading cryptocurrencies.”

Roughly half (48%) of the ETF’s assets will be invested in Bitcoin (BTC) 00. The rest will be put towards bitcoin cash, XRP (30%), ethereum, and litecoin.

New Kid On the Block

Financial Times‘ writer Matt Flood notes that the ETF has been crafted in close accordance with the standards expected from traditional exchange-traded funds. This is according Hany Rashwan, Amun’s top executive.

Rashwan describes the aims of the ETF:

The Amun ETP will give institutional investors that are restricted to investing only in securities or do not want to set up custody for digital assets exposure to cryptocurrencies. It will also provide access for retail investors that currently have no access to crypto exchanges due to local regulatory impediments

The Times reports that while competitors like CoinShares and Grayscale exist, they differ in legal form, whilst only being linked to one cryptocurrency. Seeding for the ETF will be fostered by Jane Street and Flow Traders, and it will trade using the ticker $HODL.

The Financial Times highlights the ETF’s arrival amid the lowest drop in BTC price 00 in over a year. The ETF is has been particularly the source of much hype in the cryptocurrency space. An exchange-traded fund product is expected to facilitate institutional buying of bitcoin.

Switzerland seems to be perpetually fixed in the crypto news cycle whether its happenings in Crypto Valley or the present ETF. Progress seems to abound.

In October, Bitcoinist reported on Crypto AG’s recently-granted cryptocurrency asset management license. A month earlier, Bitcoinist also wrote on Switzerland’s status as a top global Bitcoin destination.

What are your thoughts on the Bitcoin ETF $HODL? Share your thoughts below!


Images and media courtesy of Shutterstock, Twitter (@boscryptocnn, @MANT121266), YouTube (ThinkCrypto).

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Off-The-Grid Bitcoin Transactions Now a Reality

Following October’s news that Samourai Wallet was preparing to enable internet free bitcoin transactions, somebody only went and tried it. A Twitter user from New Zealand documented his off-line experiments online.


Another Fine Mesh

The ability to send bitcoin (BTC) 00 without internet or data connection relies on the goTenna mesh network. First, Samourai wallet creates a signed transaction and passes it to the TxTenna app. This then broadcasts the transaction to nearby mesh nodes via a paired goTenna mesh device.

The mesh nodes relay the transaction data until they find a node running TxTenna with an internet connection, which forwards it to the bitcoin network.

Out In The Field

Twitter-user Coinsure decided he would try to use his four goTennas to send a bitcoin transaction 19.2km. goTenna lists the maximum range in open environments as 6.4km, so this is the theoretical limit achievable.

First, he needed to plot suitable high ground points around 6.4km apart, where he could place his camouflaged goTenna nodes. Range drops dramatically in built-up areas, requiring more nodes to cover the area with a mesh network.

Lucky Girl

His girlfriend got to stay at home with another goTenna and receive the transactions, thus acting as a relay from the radio mesh network to the internet — and a recipient of the bitcoin being transferred. The phone sending the transactions had no connection other than a paired goTenna.

The first attempt was directly from the source device to the receiving device, at a distance of 5.61km. After confirming this was a success, Coinsure left a goTenna in the location and moved to the next, 7.06km away. He again managed to successfully broadcast a bitcoin transaction, this time a total of 12.67km.

Sadly, the third attempt, at an additional 7.15km distance was not successful, but this may have been down to an app crash on his girlfriend’s phone rather than a failure of the mesh network.

Pretty Cool

Coinsure did note that there was no confirmation or acknowledgment of the transaction until the wallet reconnected to the internet. Because of this and the risk of spending coins more than once, you are limited to just one transaction whilst offline. But yeah, that’s still pretty cool.

He also estimated that just 37 well-placed goTenna nodes could cover 1120 sq. km of Auckland and the surrounding area — which is also pretty cool.

What are your thoughts on offline transactions and a node-surrounded Auckland? Don’t hesitate to let us know in the comments below!


Images and media courtesy of Shutterstock, Twitter (@Coinsurenz, @Nic__Carter)

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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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Bitcoin Technical Analysis: Bitcoin Cash Civil War Drives BTC to a 1-Year Low

Holy mackerel! Out of the blue, Bitcoin dropped to a new 12-month low with little notice. Anyone hoping for a Santa Claus rally had better drop to their knees and start the Hail Marys.


Market Overview

Today Bitcoin (BTC) 00 got nuked. In fact, the entire cryptocurrency market took a direct hit from a 50 megaton hydrogen bomb — and it looks like it’ll take a while for the smoke to clear. Novogratz was wrong, Tom Lee was wrong, everyone who thought $6,000 was the bottom was wrong. Analysts will probably spend the rest of the week attempting to determine the sources responsible for the turmoil.

Currently, the most digestible explanations suggest that the current sell-off was kicked off by a combination of $6,000 representing a stop loss trigger, as well as the current Bitcoin Cash hard fork exerting pressure on an already fragile Bitcoin price.

Today’s sharp correction took Bitcoin to a 12-month low and the market cap has now dropped below $100 billion for the first time since November 2017. The total cryptocurrency market cap also dropped below $200 million for the first time this year.

Weekly Chart

The weekly chart broke bearish after a lengthy series of sideways trading. Any oversold bounce under $6,540 is just a lower high, meaning a nearly 15% bounce is needed to restore BTC 00 back to where it was yesterday. Fairly unlikely given the last 4 – 6 months of trading. Although, as mentioned yesterday with the upcoming Bitcoin Cash hard fork, ANYTHING could happen.

The MACD made a bearish cross, and the RSI has also broken from its persistent flatline and now dips toward oversold territory. A number of investors and analysts are attributing the current volatility to the BCH fork — but it should be noted that Bitcoin frequently dipped below $6,200 and $6,100 and BTC’s inability to overcome overhead resistances highlights an underlying weakness. So while surprising, today’s dip below $6,000 seemed inevitable.

$4,500 and $3,000 are the next supports to watch and the market and its multitude of analysts will decide which prices in between this range will function as psychological supports and resistances.

4-Hour Chart

There’s not too much to say here that hasn’t already been said. The lack of resistances below the $6,200 – $6,100 zone allowed BTC to drop like a blade through butter, and BTC price is now lower than it was on November 12 of 2017.

Traders might think twice about playing oversold bounces as bears are clearly in control and the current downtrend is still young. The RSI, Stoch, and MACD could easily become extremely oversold and given that a family feud over BCH might be fuelling the entire market downturn, analysis of charts may provide limited value for time being.

The wisest thing to do might be to watch from the sidelines and enjoy the free BCH-SV coins that will be earned by BCH holders. Alternatively, savvier traders might take note of the spread between USD and stablecoin (USDT, Paxos, TrueUSD) or the $300 Bitcoin 00 premium that exists between Bitfinex and Coinbase.

Bon Arbitrage, Mes Amis!  

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by Bitfinex. The charts for analysis are provided by TradingView.]

Why do you think Bitcoin dropped 15%? Share your thoughts below!


Images courtesy of Shutterstock, Trading View. Market data sourced from Bitfinex.

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Meet Mattereum, a ‘Deeply Weird’ Startup, Hoping to Transform Smart Contracts

Mattereum, an unorthodox startup, hopes to revolutionize the world of smart contracts by transforming them into enforceable legal contracts.


High Weirdness in London

TechCrunch’s Jon Evans notes that Mattereum’s project has been kindling in London for roughly a year-and-a-half, with an eclectic “[…] team of lawyers, cryptographers, software engineers, and/or former military consultants.” The project revolves around an attempt to bring together smart contracts and real-world legal contracts, altering traditional landscapes of ownership and legality.

Mattereum’s white paper, available via the company’s website, was published in October of this year. The paper describes Mattereum’s goal of developing:

“[…] commercial infrastructure to turn smart contracts into legal contracts that can be efficiently enforced all over the world, without needing new legislation

Mattereum describes the tremendous task of navigating “[…] a nearly almost infinitely knotty tangle of legal precedents, gray areas, and jurisdictions.” 

Smart Contract Stradivarius

Mattereum’s chief asset is a wildly pricey Stradivarius violin worth $9 million. Violins from the 17th and 18th century Stradivari family are among the world’s most coveted, expensive, and unique instruments.

It will not simply be tokenized and sold in a crowd sale. The governing committee for the instrument will have legal decision-making powers over the instrument, protecting and curating it on behalf of the token holders and posterity, in accordance with a written constitution.

Violin

The Stradivarius serves as perhaps the prime example of the Mattereum’s system. The white paper describes the process through which an object like the Stradivarius becomes “programmatically” tokenized, licensed, marketed, and sold to investors:

Assigning legal title over that violin to one of Mattereum’s registrars […] which then licenses control via a set of smart contracts (say, on the Ethereum blockchain) means the violin instantly becomes not just a physical asset but a digital one […]

Diagram from Mattereum's White Paper

Dream Team

Mattereum’s central team is headed by CEO Vinay Gupta, who TechCrunch describes as “[…] the mad-or-visionary-depending-on-who-you-talk-to global resilience guru turned Ethereum launch coordinator turned CEO.

The team also includes Chief Scientist Ian Grigg, the man responsible for creating the Ricardian Contract in 1996. Mattereum’s description of Ricardian Contracts makes it plain to see why Grigg is a choice selection for the project.

Ricardian Contracts represent the canonical design pattern for tying a legal contract to a digital asset issued over the internet and is central to the Mattereum platform.

Also of note among the team is Dr. Aeron Buchanan, an Oxford Robotics grad and former COO of Ethereum Foundation. Legal heads also lurk among the team. Chief Legal Officer Chris Wray is similarly an Oxford graduate, as well as maintaining a law degree from City Law School.

What are your thoughts on Mattereum’s smart contract project? Don’t hesitate to let us know in the comments below!


Images and media courtesy of Shutterstock, Mattereum.com