[Editors Note: If approved a Bitcoin ETF could help start to usher in the next wave of retail investment into Bitcoin and could have a big effect on the price to the upside.
Having worked at a major UK brokerage in 2013 as an investment consultant, I spent every day consulting with retail investors which provided me with a great insight into their investing behaviour.
The reason why Exchange Traded Funds (ETF’s) and many other funds are so popular with Retail Investors, is because many retail investors are very passive by nature. This is partly contributed to by the fact that many have full time jobs and in many cases they don’t have the time or interest to carry out in-depth research on many individual investments.
Funds provide Investors with exposure to multiple types of investments, through one low maintenance security that is professionally managed for a small premium.
Because of this, the creation of funds such as the Winklevoss Bitcoin ETF, should help usher in a new wave of retail investment and successful completion of the fund could be a catalyst for the creation of more Bitcoin secondary market funds in the future.
Max and Stacy discuss ‘the Venezuela’ in the capital markets. In the second half they talk to Simon Dixon of BnkToTheFuture.com about the crypto-novela playing out with much drama in the crypto-currency space. In an exclusive, they also unveil the logo for Kim Dotcom’s BitCache.
“KeepKey and ShapeShift recently announced a partnership to create the first fully trustless and highly secure process for trading cryptocurrencies. According to KeepKey, beta testing will begin next week”
“According to ShapeShift, the integration is the first time users can store and trade digital assets without ever having to expose their private keys to the internet. “This is a HUGE step forward in security for traders,” the exchange wrote”
[Editors note: A recent Bitcoin exchange hack has pushed personal Bitcoin security back onto centre stage and rightly so:
If you are new to Bitcoin make sure you do your research and learn ‘Cold Storage’ techniques for safe long term storage of Bitcoin. (Even more so if you are investing a lot of money into Bitcoin)
For online Hot wallets and accounts, always enable Two Factor Authentification (2FA) for added security.
If you are not actively trading , do not leave Bitcoins on centralised exchanges for extended periods]
Also Note One of the golden rules of Paper wallet usage:
“When you need to use bitcoin in a paper wallet all the bitcoin should be swept into a wallet like Electrum or blockchain.info from where you can then spend bitcoin. Never try to spend directly from your paper wallet, and after emptying your paper wallet and making your purchases create a new paper wallet for storage”
[Editors note: The Bitfinex hack showed the risk of heteronomous regulatory interference in a system, platform and technology that regulators do not understand.
But this will not stop regulators determined to either take their cut and or hinder a disruptive technology on behalf of banking powers]
“Enrollment costs $5,000 and failure to enroll can result in fines of up to $25,000 per offence. The DBO can levy fines or revoke one’s enrollment without judicial review. If you are not allowed to do X unless you get Y from the state, then—”enrollment” branding aside—you might as well call Y a state license to do X”
“The bill has a loose definition of “digital currency business” and can easily be interpreted to mandate “enrollment” of several parties beyond the exchanges and hosted wallet providers who we can all agree present genuine consumer protection risks to customers”