Fidelity’s Bitcoin Custody Service Could Launch This March

 

Fidelity’s Bitcoin Custody Service Could Launch This March

Fidelity Investments, one of the world’s largest asset managers, is breaking into bitcoin custody.

According to a recent report from Bloomberg, three people “with knowledge on the matter” from firms in contact with Fidelity have said that the company is tentatively planning to launch a custody service for bitcoin in March.

This move would fall in line with the company’s recent pushes toward the crypto space. Last October, Fidelity announced the creation of a platform for institutional traders to invest in cryptocurrencies, using over-the-counter trading and cold storage to ensure the security of the various assets.

As the first quarter of the 2019 fiscal year is well underway, Fidelity is making moves to turn this proposal into reality. These sources claim that bitcoin will naturally be the first crypto asset offered on the platform, though “ether custody is expected to be next.”

Fidelity did comment directly on the imminent plans for this custody service, although they made no guarantees of the projected launch date. “We are currently serving a select set of eligible clients as we continue to build our initial solutions,” they said. “Over the next several months, we will thoughtfully engage with and prioritize prospective clients based on needs, jurisdiction and other factors.”

Custody is a commonplace service in the world of markets but is significantly less common in the crypto asset investment space at the institutional level. Relying on third-party actors to protect securities from the risk of theft or fraud, most crypto custody takes place within the realm of startups. With the recent announcement that New York state will condone crypto custody, however, many financial banks are looking to get in on the action.

An institutional custody service from a titanic asset manager like Fidelity, which deals with trillions of dollars of properties, could give a boost to bitcoin’s slow progress with Wall Street.

 

This article originally appeared on Bitcoin Magazine.

January 30, 2019

Fidelity's Bitcoin Custody Service Could Launch This March

Heiko Closhen, Entrepreneur

Bitcoin Finally some Green on the Board But Can It Hold?

Bitcoin – Finally some Green on the Board. But Can It Hold?

Bitcoin – Finally some Green on the Board. But Can It Hold?

Is $3,500 the new line in the sand for Bitcoin? A breakout through to $3,550 levels would certainly ease the pressure…

Bitcoin slipped by 0.66% on Tuesday, following on from Monday’s 2.65% slide, to end the day at $3,477.9.

A start of a day move through to an intraday high $3,517.5 failed to draw in sidelined investors, with Bitcoin coming up short of the first major resistance level at $3,584.77 before hitting reverse.

Tracking the broader market through much of the day, Bitcoin fell through the first major support level at $3,432.17 to a mid-morning intraday low $3,422 before finding support.

Bitcoin managed to break back through to $3,500 levels with an afternoon high $3,504.4 before falling back through to $3,400 levels and the lowest end of day price since 16th December’s $3,301.5.

Elsewhere amongst the top 10 cryptos, it wasn’t all doom and gloom, with EOS and Tron managing to buck the trend through the 2nd half of the day. EOS led the way, gaining 1.63% for the day, with Tron’s TRX not far behind, rising by 1.06%, the pair partially recovering from Monday’s sell-off.

EOS managed to knock Bitcoin Cash off the number 4 spot, by market cap, with Tether taking the number 5 spot to leave Bitcoin Cash down at 6. Litecoin and Tron are battling it out for the number 7 spot and if things don’t get better for Bitcoin Cash, it could be facing the prospects of a number 8 spot sooner rather than later.

The bearish trend through the day came as the majors, with the exception of EOS and Tron, failed to break back through to key levels following the morning sell-off. There was no particularly negative news hitting the crypto wires to drive the reversal.

On the news front, a positive for Bitcoin and the broader market should be news of Fidelity looking to launch custody services for Bitcoin, before the end of the first quarter, with services for the broader market to follow. As one of the key issues identified by the SEC, Fidelity is looking to fill a considerable gap in the cryptomarket.

The timing could have been more favorable, with the SEC currently scheduled to announce the outcome to its review of the 8 remaining Bitcoin ETF applications, but following the government shutdown, it wouldn’t be surprising if there was a further delay to the decision. The VanEck withdrawal could have been the right decision should Fidelity deliver on its promise and the markets avoid another high profile theft or fall victim to more price manipulation.

At the time of writing, Bitcoin was up by 0.56% to $3,497.4. Bitcoin managed to avert another crisis by recovering from a start of a day dip to a morning low $3,451.2 to strike a morning high $3,509.4 before easing back. The day’s major support levels were left untested early on, while resistance at $3,500 played a hand in the early hours.

For the day ahead, a hold above $3,470 levels would support another run at $3,500 levels, though sentiment across the broader market would need to materially improve, investors taking a more cautious stance following 3 consecutive days in the red. We would expect Bitcoin to be pinned back from a breakout to $3,600 levels, by the day’s second major resistance level at $3,567.97, any rebound likely to see Bitcoin break through the first major resistance level at $3,522.93 with relative ease.

Failure to hold above $3,470 levels could see Bitcoin return to the red, with a fall through the morning low $3,451.2 bringing the first major support level at $3,427.43 and a visit to $3,300 levels into play before any recovery.

Bob Mason

(Jan 30, 2019 4:18 AM GMT

 

Heiko Closhen, Entrepreneur

Bitcoin drops further as 2018’s agony keeps going

Bitcoin drops further as 2018's agony keeps going

Bitcoin drops further as 2018’s agony keeps going

Bitcoin’s painful 2018 crash continues, with the original cryptocurrency touching the lowest in more than a month on Monday.

Falling as much as 5.2% since the weekend, the largest digital asset in the space dragged the Bloomberg Galaxy Crypto Index to its worst decline in more than two weeks. Ether and Bitcoin Cash both fell more than 10%.

It’s been a disappointing start to the year for crypto investors, who hoped that the pain of the downturn was behind them. More than $400 billion in market value was wiped out in the past 12 months as widespread adoption failed to materialize, according to data from CoinMarketCap.com. The total market capitalisation is now about $113 billion.

Meanwhile, the economics of the industry has come under pressure, with so-called miners finding the average cost of producing Bitcoin was more than its value. More work is being done to identify money laundering using the asset class.

The technical outlook doesn’t bode well for the bulls. Based on the GTI VERA Convergence Divergence Technical Indicator, the largest cryptocurrency just entered a new selling trend today for the first time since mid-November.

The last time a sell signal was sent Bitcoin tumbled about 50% from $6,280 a coin to $3,156 over a nearly two-week span.

 

Business Tech Staff Writer 29 January 2019

Heiko Closhen, Entrepreneur

Wall Street quietly shelves its bitcoin dreams

Wall Street quietly shelves its bitcoin dreams

Wall Street quietly shelves its bitcoin dreams

Squeamish from the start about pursuing profits in one of the darker corners of finance, established firms this year slowed their already halting efforts to make a business out of Bitcoin mania.

While none has thrown in the towel, and some continue to develop a trading infrastructure, most flinched as the value of virtual coins collapsed.

Take Goldman Sachs Group Inc., which sought to position itself at the cutting edge of digital assets that skeptics see mainly as a domain of day traders and anarchists. Progress has been so slow as to be barely noticeable, according to people familiar with its crypto business. Many in the industry now say it was quixotic to have expected last year’s frenzy to translate into a Wall Street crypto offering.

“The market had unrealistic expectations that Goldman or any of its peers could suddenly start a Bitcoin trading business,” said Daniel H. Gallancy, chief executive officer of New York-based SolidX Partners, which hopes to launch a Bitcoin ETF in the US. “That was top-of-the-market-hype thinking.”

Goldman remains a focal point for expectations of an establishment embrace of crypto. The firm was among the first on Wall Street to clear Bitcoin futures and people familiar with the matter said last year it was preparing a trading desk—the bank even provided its bankers to the New York Times for an interview on its plans. After considering a custody service for crypto funds, the firm invested in custodian BitGo Holdings Inc. It’s also offering derivatives on Bitcoin called non-deliverable forwards.

The bank has yet to offer to trade of crypto and has gained little traction for its NDF product, having signed up just 20 clients, according to people familiar with the matter. Justin Schmidt, who was hired to head its digital-asset business, said at an industry conference last month that regulators are limiting what he can do. Still, Goldman plans to add a digital-assets specialist to its prime brokerage division, the person said.

 

Courtesy- ET Alastair Marsh

Heiko Closhen, Entrepreneur

Bitcoin – Triangle range about to end

Bitcoin - Triangle range about to end

Bitcoin – Triangle range about to end

  • BTC stuck in a triangle trading range that is about to end.

  • May continue earlier downward trend after breaking out of the range.

Bitcoin, the poster boy of cryptocurrencies, has been trading in a narrowing range of a triangle for last one month and now seems to be in the process of breaking out of this triangle which may result in BTC continuing its earlier southward journey.

 

BTC/USD is lower by two cents of a percent on day at $3,549 in just over one percent range for the day. On the six-hour chart of the largest crypto, BTC has been trading in a narrowing triangular range since last one month and is now closing in on breaking out of it, which would mean continuing the earlier downward journey which paused for a while.

 

This breakdown would also mean BTC would break lower of the $3k mark and may even inch closer to $2k mark.

 

BTC/USD 360-minute chart:

Manoj B Rawal

FXStreet

Heiko Closhen, Entrepreneur

TED TALKS: How the blockchain is changing money and business Don Tapscott

TED TALKS: How The Blockchain Is Changing Money and Business | Don Tapscott

Confused about things such as blockchain, crypto or digital currencies vs. fiat currencies, dentralized vs. decentralized financial transactions and banking, digital assets, cryptography? Here is one of the best explanations I've seen or heard … please take the time to watch and listen to this presentation from Don Tapscott via Ted Talks … and feel free to share, as plenty of people still need to learn about where technology is headed … 

What is the blockchain? If you don't know, you should; if you do know, chances are you still need some clarification on how it actually works. Don Tapscott is here to help, demystifying this world-changing, trust-building technology which, he says, represents nothing less than the second generation of the internet and holds the potential to transform money, business, government and society.
 


ABOUT THE SPEAKER

Don Tapscott, Executive Chairman of the Blockchain Research Institute, is one of the world’s leading authorities on the impact of technology in business and society. He has authored 16 books, including "Wikinomics: How Mass Collaboration Changes Everything," which has been translated into over 25 languages.
 

Why You Should Listen

A leading analyst of innovation and the impacts of technology, Don Tapscott has authored or co-authored 15 widely read books about various aspects of the reshaping of our society and economy. His work Wikinomics counts among the most influential business books of the last decade. His new book The Blockchain Revolution, co-authored with his son, Alex, discusses the blockchain, the distributed-database technology that's being deployed well beyond its original application as the public ledger behind Bitcoin. In the book, they analyze why blockchain technology will fundamentally change the internet — how it works, how to use it and its promises and perils.

Tapscott is an adjunct professor of management at the Rotman School of Management at the University of Toronto, a Senior Advisor at the World Economic Forum and an Associate of the Berkman Klein Center for Internet and Society at Harvard University.
 

What Others Say

“With Blockchain Revolution, the Tapscotts have written the book, literally, on how to survive and thrive in this next wave of technology-driven disruption. Likely to become one of the iconic books of our time.” — Clay Christensen, author of The Innovator’s Dilemma

Heiko Closhen, Entrepreneur

Bitcoin BTC Long Term Price Forecast- January 26

Bitcoin (BTC) Long Term Price Forecast- January 26

Bitcoin (BTC) Long Term Price Forecast- January 26

BTC/USD Long-term Trend: Bearish

  • Resistance levels: $7,200, $7,400, $7,600

  • Support levels: $3,500, $3,300, $3,100

The BTC/USD pair is now in a bearish trend zone. On January 1, the price of Bitcoin has an opening balance of $3,832.60. The crypto appreciated in value as the bulls took price to the high of $4,218. On January 10, after price retracement, the bears broke the 12-day EMA, the 26-day EMA and price fell to the low of $3,712.80. The crypto fell into the bearish trend zone and became range bound between the levels of $3, 500 and $3,800.

The price of Bitcoin had been fluctuating between these levels and the levels are yet to be broken. Presently, the BTC price is trading at $3,626 as at the time of writing. Meanwhile, the MACD line and the signal line are below the zero line which indicates a sell signal. The crypto’s price is below the 12-day EMA and the 26-day EMA which indicates that price is likely to fall.

 

By Azeez M – January 26, 2019

Heiko Closhen, Entrepreneur

Four Major Crypto amp Blockchain Strategies for Italian Businesses

Four Major Crypto & Blockchain Strategies for Italian Businesses

Four Major Crypto & Blockchain Strategies for Italian Businesses

Potential entrepreneurs think that in the 2019 framework, Italy will create economic value from distributed ledger technologies. Now, there are 4 potential entrepreneurial strategies, with various risk profiles and levels of value creation for the Italian scheme – in terms of acquisition, transfer of knowledge and job creation. The four strategies include:

 

1. Speculative investment in cryptocurrency

A large population in Italy has heard of crypto, especially Bitcoin (BTC), the flagship digital currency globally. Recently the news broke out on many media platforms claiming that “the BTC bubble has broken out,” since the market value of BTC and several other significant cryptoassets went through a strong collection in the past one year, which many people would dub a breakdown.

The crypto investor must know the golden rule of all investors, that is to say: invest only in something that is clearly known, of which the basis is understood.

The crypto market is still comparatively small. The present market cap of Bitcoin is around $63 billion USD, which is 1/10 of Apple’s cap and 100th of the gold market. Because of that, the market is vulnerable to manipulation by big actors and characterized by lofty volatility in comparison with the traditional assets.

Also, crypto asset trading is not regulated, hence making it very easy for risky inside trading manipulations.

Therefore, the value created in the Italian scheme by a clear speculative strategy is indeed close to zero: depleted acquisition of know-how & pathetic job creation
 

2. Creation of products & services where distributed ledger technology (DLT) adds value

The most lucrative opportunities for a dynamic entrepreneur now are those that are associated with the ‘tokenisation’ of products and services. In summary, tokenize a product means to form one or more DLT tokens which represent rights associated with the asset itself.

When an asset possesses a lucid market value but with low liquidity, connecting the ownership of the asset to a DLT token enables the buyers to expand significantly and can soar the liquidity of the asset.

Good examples of tokenisable products include software licenses, e-tickets, certificates of ownership of collectible & valuable tangible assets, and elements of video-games.

The commercial enterprise strategy leads to the development of innovative startups which leads to the creation of massive value in the Italian system.
 

3. Contribute to the operation & maintenance of blockchain tech

Contributions to the operation of a DLT, in particular, the dependable certification of transactions, are compensated in encryption. Taking part in these operations is thus a way of investing in the crypto option to direct financial investment.

Bitcoin and Ethereum (ETH) use a type of certification basing on the rationale of Proof of Work (PoW). In summary, the security of these cryptos is connected to the use of a huge computing power to execute certification. And since certification is too expensive, sets it to be virtually impossible to modify existing certified transactions.

The key selection criterion is a high level of DLT know-how and the potential to form important software to support users and offer great contributions to the enlargement of the ecosystem.

Accordingly, from the point of view of a startup interested in entering the decentralized proof of stake (DPOS) world, the ability to obtain know-how and form skilled jobs is very high.
 

4. Provide blockchain advice

Firms which will attempt to get knowledge and create value in the aforementioned strategies 2 and 3 will be positioned to benefit in the future from the market for the supply of training and advice in the DLT space.

The opportunity is tremendous: now, virtually all giant firms resort to outsourcing IT services & consulting.

The coming of DLT, in which financial institutions, exchanges and e-commerce bulls are investing huge amounts of funds, will cause a significant demand for training, consulting and management services in the blockchain technology field, according to a report by Econopoly, a local news outlet.

Read more news about blockchain and the cryptocurrency industry of Italy in the Italian language at www.it.coinidol.com

 

Jan 24, 2019 at 16:17

Author Coin Idol

Heiko Closhen, Entrepreneur

What Are The Five Fatal Mistakes That Will Kill Your Business?

By Brett Fox

Did you know that it took me three founding teams before I was able to get the right team to start my company? It’s true.

Team number one failed because my two cofounders quit and stole the intellectual property of the company and left me for dead the day before we were going to get funded.

Team number two failed because the team wasn’t strong enough.

Team number three succeeded because we had the right combination of people that had the same vision and meshed well as a team. And yet, two of the five founders were out of the company within one year of receiving funding.

Is it any wonder that most startups fail?

http://www.brettjfox.com/what-are-the-five-fatal-mistakes-that-will-kill-your-business/

Do you want to be another one of the startups that fail?

Good. I didn’t think so.

Here’s my list of some obvious and some, maybe, not so obvious reasons that startups fail. The good news is you can recover from many of these mistakes or problems. So, let’s get started:

A.  You have the wrong team.

As I pointed out, I went through two teams before I got to the right team. But I was lucky.

You may not be so lucky. So here’s the most important advice I can give you:

Don’t settle! Especially with founders, don’t settle.

You need everything to be right between yourself and your cofounders if you are going to succeed. This doesn’t mean you can’t have differences between yourself and your cofounders. It does mean that you need to have mutual respect.

You’re going to want your cofounders to have integrity, be smart, be passionate about the company, and be cultural fits for the company. And the tough part is that some, if not all, of these traits may not be obvious when you bring on a cofounder.

That’s why some cofounders leave a company early on. It’s natural and normal to have a cofounder leave. Just protect yourself and the company (For more, read: http://www.brettjfox.com/what-are-the-eleven-steps-you-can-take-when-a-co-founder-quits/).

B.  Your company culture’s not right.

Maybe I should have started with company culture because you need to be thinking about your company culture before you bring on your first cofounder.

A commitment culture (Read: http://www.brettjfox.com/why-your-startup-culture-is-the-key-to-your-companys-success/) where your team is truly committed to the company is the culture that gives you the most chance of success. And that commitment culture starts with you.

You need to foster this inclusive culture every step of the way. Every new person you add to the company either reinforces your commitment culture or hurts your commitment culture. That’s why you want to be very careful with who you bring into the company.

C.  You don’t have a go to market strategy, or your go to market strategy is poorly thought out.

It’s not enough to have a great product. The days of “build it and they will come” are long gone.

Having a website is not enough. Having a sales force is not enough. Saying you’re going to advertise is not enough.

You really need to think about how your customers are going to find you. And then, you’re going to need to figure out how much it’s going to cost you. The best book I’ve read on the subject is Traction: How Any Startup Can Achieve Explosive Growth by Gabriel Weinberg. Traction gives you a systematic process to figure out what marketing channels will work for you.

D.  Financials? What financials?

Be honest. How many of you don’t really know how much money you are making or losing?

I’ve seen the lack of a financial plan or a poorly constructed financial plan bite a lot startups. Okay, so here are some basics to think about.

Are you paying yourself a salary? You should be, even if it’s a small amount because you don’t want to just take money out of the company when you need it.

You should know EXACTLY how much money you are spending every month. You should know EXACTLY how much money your product costs to make.

You should know when (what year/month) your company will hit cash-flow break-even. You should the revenue level at cash-flow break-even.

So develop a financial plan today if you haven’t. It doesn’t have to be complex. 

So, what’s the one mistake that’s almost 100% guaranteed to kill your company?

E.  Investor/Company Mismatch.  

The one absolutely, nearly 100% guaranteed company killer is a bad investor.

What if Apple had 50% of its shareholders wanting the company to sell?

Or, let’s say you received a loan from your parents to start your company. All of the sudden, your father wants his money back?

Or, let’s say one of your investors can no longer support the company? And you have no money left to operate?

How do you recover if you are in any of these situations? The answer is you usually don’t.

So choose your investors wisely.

Make sure your family understands up front how long it’s going to take for you to pay them back if you take money from your family. Be honest because it likely will take several years.

Make sure your vision for the company is the same your investor if you take money from an Angel or VC. Really observe how you are being treated during the fund raising process.

Do your diligence on your investors. Talk to other people that have taken money from them. Did the investors hang in for the long run or did the investors cut bait at the first sign of trouble?

And, most importantly of all, get a lawyer! Even if you’re taking money from your family you should get a good, knowledgeable lawyer to draft (or evaluate) the agreement so it is fair. I know getting a lawyer can be expensive, but this will be money well spent.

There are things you just don’t know as a first time entrepreneur.

Some of these errors can make it very difficult to succeed. You can overcome team issues, culture issues, go to market issues, and lack of financial discipline. But a lack of investor support, be it your family or more traditional investors, can you make it next to impossible for you to succeed.

Heiko Closhen, Entrepreneur

Bitcoin BTC Price Analysis – More Downside Targets?

Bitcoin (BTC) Price Analysis -  More Downside Targets?

Bitcoin (BTC) Price Analysis – More Downside Targets?

Bitcoin recently broke below a short-term rising trend line to signal that bearish pressure was very much in play. Price bounced off support around the $3,500 area but this seems to be a mere pullback from the breakdown.

Bitcoin hit resistance at the broken trend line, and the Fib extension tool shows the next potential downside targets. The 50% extension lines up with the swing low, which might be the first take-profit point for sellers.

Stronger selling pressure could take it down to the 61.8% extension at $3,422.80 or the 78.6% extension at $3,352.70. The full extension is located at $3,263.30

The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. Price is also treading below both moving averages, which means that these indicators could serve as dynamic inflection points from here. However, the gap between the moving averages is narrowing to indicate weakening selling momentum and a potential bullish crossover.

RSI is still heading south so bitcoin might follow suit. The oscillator has some room to go before hitting the oversold area, which suggests that selling pressure could stay in play for a bit longer. Stochastic already seems to have climbed out of the oversold region to hint that bullish momentum is about to return.

Rachel Lee by Rachel Lee January 24, 2019

Heiko Closhen, Entrepreneur