This Week Is So Strange.

At the time of writing, we are in a minor correction. Again. The market is down 8.2% since yesterday's high at 410 billion. Ironically, All the announcements, news, events and even discussions with authorities are really bullish this week.
We are at a point that the cryptocurrency market is getting mature. Huge venture capitalists entered the market, governments are working on regulations and exchanges are all focusing on safety so that they can serve institutional investors. 

You probably ask yourself: What caused this correction? Are people missing the bigger picture? Are this daytraders? Are we in a bear market again? It is hard to say, but we are more bullish than ever. Let's discuss this weeks most important announcements and discussions.

Coinbase launched Coinbase Custody
Coinbase Custody is a special product for institutional investors that like to invest 10 million dollars or more in digital currencies.  According to Coinbase, the number one thing preventing institutions to invest in cryptocurrencies is the existence of a digital asset custodian that they can trust to store client funds securely. Coinbase Custody is filling this gap. The product is specially designed to fit the needs of big venture capitalist and other institutional investors. As we all know, not the retail investors, but the big boys at Wall Street will bring serious dollars in the market. According to Coinbase, over the last months, more than 100 hedge funds were created for cryptocurrencies. Another 10 billion dollars of institutional money is waiting on the sidelines. Besides the fact that these companies are huge players on their own it will bring trust in the market. And trust is what we need to attract new money. 


Japan Investment Bank Announced Institutional Custody In Cooperation With Ledger
Just like Coinbase Custody, Investment Bank Nomura announced their Institutional Custody service. The service will be a joint-venture between Nomura, Ledger and investment house Global Advisors. The venture aims to remove the boundaries for institutional investors. 

The partners allege that a shortage of robust and legally regulated “safekeeping solutions” is currently preventing traditional asset managers from building investment vehicles in the crypto ecosystem, emphasizing that overcoming custody and security obstacles is crucial given that “one in five finance firms are [allegedly] considering launching digital asset trading and investment businesses in the coming year.”

Either, Coinbase and the venture, emphasize that the big boys are coming. Soon.  


US Regulators: Avoid Hindering Blockchain
Again, regulators are predominantly positive about cryptocurrencies. In a panel discussion at Consensus members of the CFTC, SEC discussed regulatory issues with attorneys and Bittrex' CSO. All participants agreed that they did not want to hinder innovation or interfere unduly with blockchain or the tokens built on the nascent technology. All participants also agreed that they had to act against those seeking to defraud or outright steal from participants in the space. Again, this is a pretty good thing for the entire cryptocurrency space. We need regulations to prevents scams, frauds and hacks. 


John Daluso