Showing posts with label fund. Show all posts
Showing posts with label fund. Show all posts

November 27, 2017

United Arab Emirates Fund CEO throws shade at JP Morgan’s Jamie Dimon

By C. Edward Kelso - November 27, 2017 (

شركة مبادلة (Mubadala Development Company PJSC), an Abu Dhabi-based state holding company, appears receptive to the global phenomenon sweeping through professional finance circles that is bitcoin. Its CEO, when asked about Jamie Dimon’s comments calling the decentralized currency a “fraud” that will “blow up,” answered that it was too soon to dismiss Satoshi’s creation. 

Jamie Dimon Dismissal Dismissed

“I have still have not formed a clear view on this,” Khaldoon Khalifa Al Mubarak, CEO and Managing Director of the Abu Dhabi company, began with regard to the technology undergirding bitcoin. “We’re still getting educated on this. The area I would have concern on, still, is the regulatory side. How is this going to be regulated?” he asked rhetorically.

Mubadala is an Abu Dhabi state holding company operating within a joint-stock scheme with assets well above 100 billion USD. The fund is proposed as “a pioneering global investor, deploying capital with integrity and ingenuity to accelerate economic growth for the long-term benefit of Abu Dhabi,” according to its website.

“Because I think blockchain,” Mr. Al Mubarak continued, “its growth, let’s say, from single digits to double digits to astronomical growth, will really depend on how fast you can execute, and will you be able to execute under a regulatory environment that is acceptable. I think if they’re able to crack that, I think it’s going to be an incredible story. But, to date, I’d say I am still on the fence.”

The CNBC interviewer then asked in follow-up: “What about bitcoin, because Jamie Dimon is calling it a fraud. Do you agree?”

“No. I wouldn’t agree in calling it a fraud,” Mr. Al Mubarak answered quickly. “I would say time will tell. It could well be and it could as well not be. I think one has to be open-minded.”

Khaldoon Khalifa Al Mubarak

Within the emirate, Khaldoon Khalifa Al Mubarak is a gadfly. He’s on hand for every important world-leader reception taken by Abu Dhabi’s President, His Highness Sheikh Khalifa Bin Zayed Al Nahyan, from Bill Gates to bilateral talks with France.

Educated in the United States and young at 41, Mr. Al Mubarak spreads himself among many boards and directorships in and around Abu Dhabi. His willingness to at least entertain bitcoin and distributed ledger technology is an encouraging sign for those who wish for greater crypto adoption in the region.

Images courtesy of: Pixabay, Blogger, Wiki Commons. 

November 26, 2017

Gold Fund sets sights on Bitcoin

By News Desk - November 25, 2017 (

The Old Mutual Gold & Silver Fund invests in Bitcoin; calls the cryptocurrency “digital gold”.

The Old Mutual Gold & Silver Fund, which has $220 million worth of precious metal equities under management, is looking to partake in the success of Bitcoin.

Claiming Bitcoin was “explicitly designed to be digital gold”, fund manager Ned Naylor-Leyland said:

“… if you’re going to have a small proportion of a fund in Bitcoin, it should be in a gold fund, because that’s exactly the point. It’s about bringing the ownership of disciplined money into the modern world. Bitcoin is paving the way for the reintroduction of gold as global money.”

The fund started investing in Bitcoin in April this year, with the goal to dedicate 5% to cryptocurrencies. Ultimately, the aim is to obtain profits from Bitcoin, and then reinvest these in gold and silver assets.

Compared to gold, Bitcoin is prone to volatility and its sudden and drastic price fluctuations have put many an investor on the backfoot. Currently trading at above $8,000, Bitcoin has risen almost eightfold in price since the start of 2017.

Gold, by comparison, is steadier in its price movements, and has remained in more or less the same range throughout the year, except for a brief upward spike in September when uncertainties caused by tensions between the United States and North Korea led to increased investment.

Earlier this year, a report by Goldman Sachs concluded that gold was far superior to Bitcoin as it was more durable, had greater intrinsic value, and was a better store of value than Bitcoin, with a less volatile market. The only factor in which Bitcoin was deemed better than gold was its portability as compared to bullion.

While the cryptocurrency may have its detractors, Bitcoin’s steadily increasing price suggests investor confidence remains high. Earlier this week, billionaire Mike Novogratz gave the digital currency his vote of confidence, predicting that Bitcoin would reach $10,000 before the end of 2017.

Highlighting the positive aspects of Bitcoin and blockchain tech, Naylor-Leyland observed that Bitcoin is the answer to the problems of divisibility, ownership, and transmission speed which are associated with gold.

“We’re going to revert to sound money,” Naylor-Leyland said. “If you imagine sound money and blockchain together, there’s quite an exciting potential outcome.”

Bitcoin will be safe haven during next stock market crash, Says expert

By Gareth Jenkinson - November 26, 2017 (

As Bitcoin powered ahead to a new high for a second week in a row, some have speculated that institutional investors could seek safe haven in the virtual currency in the future. The prevailing rhetoric over the past month has been more affirming than damning of cryptocurrencies, with the likes of Ronnie Moas and Max Keiser predicting new highs in 2018. Speaking to RT, eToro analyst Mikhail Mashchenko says financial institutions could look to Bitcoin if a major financial crash hits global markets.

“The demand for Bitcoin is growing as the crypto market has become less volatile, and an increasing number of professional investors see it as insurance.”

Second-oldest bull market

The current bull market in stocks is the second-longest in history, according to Fortune, having lasted 104 months so far. The longest bull market in history ended in 2000 after an impressive 113 month run. With the current rally getting a bit long in the tooth, many on Wall Street are making contingency plans for the stock market’s inevitable turn. If Mashchenko is right, Bitcoin will have a role in some of these plans.

Shifting opinions

Mashchenko’s statements come on the back of changing sentiment in the mainstream financial sector. Last week, JP Morgan Chase announced plans to offer Bitcoin futures on the Chicago Mercantile Exchange - an important move by one of the biggest banking and financial services providers in America. Even more satisfying, this moves comes only months after Chase CEO Jamie Dimon condemned Bitcoin as a scam.

Online banking service providers and exchange operators LedgerX and Revolut are also adopting Bitcoin support. The former was recently cleared to offer Bitcoin derivatives as people look to do more than just trade the cryptocurrency.

“LedgerX launched its first long-term options for Bitcoin, with an expiration date of December 28, 2018. In the coming months, we will continue to see the ‘domestication’ of Bitcoin: the Chicago Board Options Exchange and the Chicago Mercantile Exchange are planning to launch tools based on the cryptocurrency in the near future.”

Big money

If and when a stream of institutional investors start investing large amounts of capital into cryptocurrencies, some of the stunning predictions made by Bitcoin bulls could well be realised. However, Mashchenko’s prediction was quite conservative, suggesting that Bitcoin reaching a $10,000 high by the end of 2017 would be driven by emotion rather than fundamentals:

“We could see a Bitcoin at $10,000 in a month or so. However, such a surge will be based on emotions, not on fundamental factors. So, further growth of the cryptocurrency will require something more than euphoria.”

Having hit the $8,000 mark last week, Bitcoin surged another $1,000 dollars in just a few days, breaching the $9,000 level during the Thanksgiving weekend. At press time, the price of Bitcoin sits at $9,500, just $500 below Mashcenko’s predicted level.

November 25, 2017

Small firm makes big splash with first Bitcoin Fund launch in Europe

By Tedra DeSue - November 25, 2017 (

Its $10 billion in assets may be small in comparison to its larger counterparts, but Tobam’s new Bitcoin mutual fund is making big waves as it’s the first to launch such a crypto fund in Europe.

It may be considered to be small in the investment world, but Paris-based Tobam has made a huge step in terms of putting Bitcoin on the map in Europe.

It has launched the TOBAM Bitcoin Fund, which is Europe’s first Bitcoin mutual fund. The goal is to attract institutional investors, similar to the CME Group’s Bitcoin future’s launch. 

Tobam’s fund

Tobam’s website directs those wishing to know more about the deal to an article in the Financial Times. In that piece, many details were given about the fund.

One of the features about the fund is that it is classified as an alternative investment fund. Also, it is not traded on an exchange, nor does it fall under the European mutual fund structure known as Ucits.  

According to the Financial Times:

“… [the fund] has daily liquidity based on market closing prices, as is the case in most Ucits mutual funds. Tobam said it required the approval of France’s financial regulator, the Autorité des Marchés Financiers, to launch the fund.”

Answering its clients wants

The founder of the fund, Yves Choueifaty, was noted as saying he had to convince the AMF that the bitcoin fund’s “framework is protective of investors.”

He was quoted as saying:

“How to run the money and invest in cryptocurrencies is quite elaborate. We found some investors to launch the fund and we have had a lot of interest from an intellectual point of view.”

Choueifaty expressed optimism about the fund’s prospects. He told the Financial Times he’d be disappointed if the Bitcoin fund had not grown to a size of more than $400 million in the next two to three years.

Of note is that Tobam’s unregulated fund has beat CME to the punch. CME plans to launch a futures contract for Bitcoin this year, and it had to issue a clarification last week that a notice on its website stating the contract would begin trading on Dec. 11 was posted in error.