Bitcoin is Back: HERE’s YOUR SIGN

  • Fidelity one of America’s Largest Fund Manager Files a Regulation D, prompting speculation of their new Bitcoin-based financial product.
  • Brooklyn, New York-based ConsenSys, a blockchain tech company focusing on Ethereum (ETH) growth, has acquired JPMorgan’s (NYSE: JPM) Quorum, which is intended to act as an enterprise derivative or implementation of the Ethereum protocol.
  • Forex markets continue to stay in the range today, ignoring strong movements in the stock markets, and all eyes on Gold & Oil.

In today’s edition of Overbit Weekly Close-out, we can see that the theme of institutional interest in cryptocurrency continues to dominate the news cycle, much as it did in Wednesday’s edition of Overbit News.

The biggest story of the week is that Fidelity Investments Inc. filed for a Regulation D exemption with the U.S. Securities and Exchange Commission (SEC) for a Bitcoin-based financial product. In layman’s terms, this means that Fidelity, one of the world’s largest investment groups, will soon offer a Bitcoin index fund for investors. The filing of the Regulation D exemption is so that financial entities can offer securities without the SEC’s stamp of approval.

Very little details have been released about this fund. All we know for certain is that the fund will be known as the Wise Origin Bitcoin Index Fund and that the minimum investment will be $100,000. Fidelity manages more than $8.3 trillion in customers’ funds, so one can only imagine the impact such a fund will have on the cryptocurrency market.

While the details are sparse, it’s very clear to us the institutional investment is rapidly expanding. Fidelity itself recently labeled Bitcoin an “aspiration store of value”, evidenced by this massive step into the Bitcoin markets. Comments and investments like this continue to surface in 2020, including billionaire hedge fund founder Paul Tudor Jones who recently mentioned that 1% of his net worth was in Bitcoin.

It seems this institutional interest is bleeding over to the technology side as well. Consensys, the New-York based cryptocurrency platform mostly responsible for the Ethereum platform, has acquired JPMorgan’s Quorum - an enterprise variant of the Ethereum blockchain. Reports state these two entities have been intertwined from the very beginning of Ethereum, indicating the large breadth of their work together. While it’s still unclear how the relationship will eventually turn out, the idea of financial institutions moving their operations to the blockchain seems inevitable.

Closing out on Forex markets this week, we continue to see currency pairs trading within a tight range, even with the USD struggling to find a clear direction. At this moment, Forex traders are looking for confirmation of their biases, but with all eyes on the upcoming policy changes by the Federal Reserve Chairman Jerome Powell, it seems his new policies of Q4 will significantly dictate the rise (or fall) for the USD/JPY, GBP/USD, and EUR/USD pairs.

In contrast, and broadly ignoring the fluctuations of the central bank’s currency pairs, the “hard asset classes” - including BTC/USD & Gold - continue to look macro-bullish. Save any surprises from the central banks, we could continue to see bullish macro trends over the coming year or two for hard assets, and we should continue to see investors moving some of their wealth into these hard-assets.

Closing out, at Overbit.com, we welcome the continued rise in new traders and investors looking for alternative investment vehicles, as we offer Cryptocurrency, Forex, and Gold & Silver Pairs, and adding more every month.

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