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After being critical of cryptocurrencies, the Wall Street investment bank officially embraced Bitcoin earlier this year. It’s now expanding its offerings to include Ether.
United States investment bank Goldman Sachs is planning to offer Ether (ETH) derivatives products in the coming months, setting the stage for wider adoption of the second-largest cryptocurrency and marking a significant departure from the institution’s critical stance on digital assets in the past.
Mathew McDermott, Goldman’s managing director of digital assets, confirmed Monday that the investment bank is expanding into Ether options and futures. In an interview with Bloomberg News, McDermott said institutional demand for cryptocurrencies will continue to grow despite the recent bout of market volatility:
“Institutional adoption will continue. […] Despite the material price correction, we continue to see a significant amount of interest in this space.”
McDermott referenced a survey of 850 institutions last week in which nearly 10% of respondents said they are trading crypto, and 20% are interested in entering the market.
Institutional inflows into Ether products have amounted to nearly $1 billion this year alone, with total assets worth roughly $11.1 billion, according to CoinShares.
Goldman launched a limited Bitcoin (BTC) derivatives trading desk in early May. The new outfit is embedded within the bank’s Global Currencies and Emerging Markets division and is overseen by McDermott’s digital-asset unit.
Goldman’s embrace of digital assets goes far beyond its trading desks. As Cointelegraph reported, the bank recently led a $15 million investment round for Coin Metrics, a leading cryptocurrency intelligence platform. McDermott said Goldman is “looking at a number of different companies that fit our strategic direction.”
South Africa’s financial watchdogs are gearing up to introduce a crypto regulation framework in the country. A report unveiled this news on June 14, citing a position paper published by the South African Intergovernmental FinTech Working Group (IFWG) via the Crypto Assets Regulatory Working Group (CAR WG). IFWG outlined a regulatory framework that focuses on crypto asset service providers (CASPs) through this publication.
According to the position paper, IFWG is looking into crypto regulations in a phased and structured way. Before taking this stance, South Africa’s approach towards crypto has been cautious but unintrusive since 2014. Although the country is now turning to regulate crypto, IFWG warned that cryptocurrencies are still risky and volatile. To this end, the entity suggested that consumers should be wary of investing in cryptocurrencies, seeing as they could easily incur financial losses.
Allegedly, this policy change comes after observers found multiple factors that rendered the previous approach inefficient. One of these factors is the rapid growth of the South African crypto market, which hit $147 million (£104.71 million) earlier this year.
25 recommendations on crypto regulation
IFWG also published a press release in which it made 25 recommendations on how to rein in the crypto sector. The recommendations focus on three primary areas of concern. These are Anti-money laundering and combating terrorism financing (AML/CFT), cross-border financial flows, and the application of financial sector laws. By concentrating on these facets, IFWG seeks to task South Africa’s Financial Sector Conduct Authority (FSCA) with preventing crypto fraud and punishing wrongdoers.
Per IFWG, six comprehensive principles will steer South Africa’s approach towards implementing effective crypto regulations. The first one is ensuring the proper regulation of cryptocurrencies, followed by maintaining an activities-based point of view to ensure regulators are led by a principle of the same activity, same risk, same regulations. The third principle is applying proportionate regulations that go hand in hand with the risks posed, and maintaining a collaborative spirit on crypto regulation.
The last two principles are proactively monitoring the crypto sector and fostering digital literacy among customers. In the press release, IFWG also cautioned that the decision to amend South Africa’s stance on crypto is not an endorsement of the nascent sector.
This news comes after a report unveiled South African authorities are investigating a crypto-related scheme that defrauded investors out of $80 million.
The post South Africa to revise its stance on crypto amid surging retail interest appeared first on Invezz.
from Cryptocurrency – Invezz
Relite Finance, a decentralized lending protocol, has announced the listing of its native RELI token on PancakeSwap, a superior DEX platform on Binance Smart Chain (BSC). The Relite Finance team recently completed BSC bridge implementation using a smart contract, thereby enabling the launch of RELI/BNB. The bridge was long-anticipated and was marked as an important […]
Splinterlands, a blockchain-based collectible card game, has just announced that its Untamed Edition booster packs are completely sold out. The edition offered a total of 1.5 million NFT packs each at $2, all of which were depleted by Friday, June 11. Owing to its popularity as one of the most proactive and rewarding games, the […]
Traders who are unsure about Bitcoin’s chance of continuation above $40,000 can use a combination of protective put options to generate profit.
Investors tend to define the market as either bullish or bearish, but sometimes the price can remain within a specific range for an extended period.
This type of sideways movement is not necessarily stable because cryptocurrency markets have high volatility that stems from a range of uncertainties and the early adoption cycle.
For example, investors who concluded that the Bitcoin (BTC) bull run was over after the first week of 2021 probably regret that decision.
Starting on Jan. 8, Bitcoin price traded in a descending channel within a $10,000 range. The movement lasted for 26 days until it finally broke out in early February.
In August and September 2020, Bitcoin had two distinct ranging periods. However, it is not possible to consider those movements as a bull market. On the other hand, bears had few reasons to celebrate since the $10,000 bottom was tested multiple times, but the market recovered from it.
Is Bitcoin price in an ascending channel?
Although it seems premature to call it, there is a possibility that Bitcoin has entered a positive range aiming for $40,000 by the end of June.
The present range indicates a $37,000 to $43,000 range for June 25, but with crypto’s extreme volatility, the channel’s support and resistance levels are sometimes drastically tested.
There is reason to believe that an impending short-squeeze could quickly recover a $50,000 support for Bitcoin, considering the $500 million raised by MicroStrategy and Paul Tudor Jones’s intention to increase his BTC position.
On the other hand, there are also fears that U.S. Treasury Secretary Janet Yellen’s remarks about digital assets being used for money laundering and illicit payments standing as a threat to Bitcoin price. Furthermore, Gary Gensler, the U.S. Securities and Exchange Commission chair, recently expressed concerns about the absence of regulation on crypto exchanges.
Smart traders take less risk on range trading moves
For options traders, the best option sometimes is to bet on maintaining the current range, especially for short-term periods. That’s where the Christmas tree spread with puts strategy enters into play.
Instead of betting on a bull or bear market, this option strategy uses protective put options to benefit traders with a neutral stance. The investor will profit if Bitcoin remains between $37,170 and $44,000 on June 25. Therefore, it offers protection both from an 8.5% move in either direction.
To achieve this, one needs to buy 2 BTC worth of the $36,000 put, sell 3.33 BTC worth of the $40,000 put in addition to buying 1.33 BTC of the $46,000 put. Each contract is maturing on June 25.
The Christmas tree spread with puts is a low-risk strategy
With less than 11 days left before the June 25 expiry, it is reasonable to assume that there is a good probability that the market stays within this range. However, this strategy offers a 0.062 BTC ($2,515 at $40,570) maximum loss in case of a surprise move.
Profit-wise, the strategy can yield a 0.1375 BTC ($5,500) gain at $40,000.
Therefore, it seems like a smart choice for an investor that expects the current uptick in bullish momentum to continue. It is worth noting that most derivative exchanges offer options trading from as little as 0.10 BTC.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.