INSTITUTIONAL MONEY IN CRYPTO ANNOUNCEMENT AND ARBITRAGING UPDATE – October 19, 2018




DISCUSSION:

NOTE: See Bloomberg Article Link Below:
https://www.bloomberg.com/news/articles/2018-10-15/fidelity-starts-crypto-unit-to-serve-wall-street-customers

Some big names entering the space: Goldman Sachs, Yale, and TD Ameritrade. Sachs owns crypto exchange Circle and is building out custody, Yale’s investing in crypto, and TD Ameritrade put money into crypto exchange ErisX.

That’s three big institutions already in crypto.

On October 15, three more names are entering the space: Bloomberg Financial, Galaxy Digital, and Fidelity Investments.

Bloomberg owns news outlets and the trading terminal Wall Street is built on. It also owns the Twitter handle @crypto. It’s well ahead of other mainstream media outlets and financial firms in crypto.

Galaxy Digital is run by former hedge fund manager Mike Novogratz. He was originally involved in traditional Wall Street investing and put his money in bitcoin when it was still trading at $100. Today, Galaxy Digital is the biggest crypto hedge fund of its kind.

Fidelity Investments has 26.7 million brokerage accounts serving over 27 million investors. It has over $6.9 trillion dollars under management.

A few days ago, Bloomberg, Galaxy Digital, and Fidelity Investments hosted a seminar called Institutional Crypto: Laying the Foundation at Bloomberg New York City.

And there was a big announcement. HERE IS THE ARTICLE:
https://www.bloomberg.com/news/articles/2018-10-15/fidelity-starts-crypto-unit-to-serve-wall-street-customers

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WHAT IS ARBITRAGING?

The philosophy behind the Arbitrage software is to automatically profit from temporary price differences between exchanges while being market-neutral. Unlike other legacy systems, Arbitrage’s aBot doesn’t sell but actually short sells designated cryptocurrencies on the short exchange, this feature offers two important advantages.

First, the strategy is always market-neutral, meaning as the cryptocurrency market’s moves (up or down) it doesn’t impact the strategy of returns. In simple terms, this removes a huge amount of risk from the platform’s overall return strategy as the market could suddenly lose half its value and this won’t make any difference in the strategy returns.

Second, the aBOT’s strategy doesn’t need to transfer cryptofunds (e.g. BTC, LTC or Fiat) between cryptocurrency exchanges.
The buy/sell and sell/buy opposing trade activities are done in parallel on two different exchanges, independently.

NOTE: INVESTING IN THE CRYPTOCURRENCY SPACE IS RISKY. INVEST ONLY WHAT YOU CAN AFFORD TO LOSE. YOU ARE RESPONSIBLE FOR ANY INVESTMENT DECISION YOU MAKE.

**DISCLAIMER**: I am not a financial advisor nor am I giving financial advice. I am sharing my biased opinion based on speculation. You should not take my opinion as financial advice. You should always do your research before making any investment. You should also understand the risks of investing. This is all speculative based investing.

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About the Author: Digit Coinz

4 Comments

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