So, what IS going on, exactly?

Don’t panic, dear readers. Quite a few voices today in the media racking up page views by screaming that the crypto sky is falling (again). Par for the course given that we’re in the second inning in the crypto space. We at Crypto Mouse believe this will continue for the remainder of 2018, at least. Things have to fail and kinks have to be streamlined before the institutional players can join in.

That being said, we’re watching Ethereum closely, which is near it’s level to about a year ago. Many say profits are being taken, and perhaps over the counter manipulation is in play. Could be. But something doesn’t smell quite right. Avoid buying any Ethereum on the dips for now.

Most interesting plays for us at the moment are Bitcoin (the granddaddy of them all), Eos (who raised billions with a B, don’t sleep on that!) and Decred. Don’t buy just yet though. If your fingers are twitching and you just can’t help yourself, put a small limit order in for BTC at $5,500, or better yet at $5,000.

Patience is paramount people, the music hasn’t stopped yet, no need to rush and pick the closest chair.

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Here Is the Bitcoin ETF deck SolidX Presented to the SEC

SolidX, a crypto startup, presented this deck to the Securities and Exchange Commission last week, officials from the Division of Trading and Markets, the Division of Corporation Finance and the Divison of Economic and Risk Analysis were all in attendance.

The presentation offers insight into the arguments being made in favor of the bitcoin ETF, including “significant changes in product, market structure and overall circumstances since March 2017 disapproval.

While a decision was expected soon, the Commission has announced it will delay its decision: “Accordingly, the Commission … designates September 30, 2018, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change…”

Stay tuned, dear readers…

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Winklevii Strike Out Again

The Winklevoss twins, supposed creators of Facebook, and early Bitcoin adopters, were turned down a second time by the SEC on their proposal for a Bitcoin ETF.

Notably, one of the four Commissioners dissented, which you can read in full here.

The other ETF most like the Winklevii application is one backed by VanEck and SolidX (it’s third attempt), with a proposed cost of $200,000/share, and is still in play.

General sentiment is that we are likely still 12-18 months away from a Bitcoin ETF, but rest assured we at Crypto Mouse are keeping an eye on this situation, dear readers.

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Bitcoin Back Above $8k

Dear readers, the momentum continues!

Bitcoin was above the $8,000 mark today per coinmarketcap.com (up more than 40% from its low in June).

To continue to professional allocator discourse from last week here at Crypto Mouse, Marc Lasry, the billionaire hedge fund founder of Avenue Capital, has said he believes Bitcoin can easily reach $40,000 and has personally invested 1% of his net worth in the cryptocurrency.

What else could be fueling the rise?  Last month, the CBOE filed its request to launch a crpyto ETF in partnership with Van Eyk Investment and SolidX.  Its approval in this calendar year of 2018 is unlikely, but the rumor is the SEC has been receiving quite the influx of positive comments since it invited public comments a few weeks back.  You can actually read all of the comments made here.

In addition, Coinbase announced a custody solution on its blog, with a minimum balance of $10 million, a setup fee of $100,000, as well as 10 basis points fee charged monthly, paving the way for institutional money to come in for Inning Three.

Don’t fret, accredited U.S. investors, Coinbase also has a solution for you via its Coinbase Index Fund, for those wishing to invest $250,000 to $20,000,000 in a fund with exposure to all assets listed on the Coinbase platform.

Feeling a little too poor for the Coinbase index fund?  Not to worry, dear readers, Team Crypto Mouse is here for you.  Check out Shrimpy, a free portfolio management tool with no minimum investment, no hidden fees and no trade limits. “But how does it work?”, you ask.  Simple!  Deposit your cryptocurrencies to an exchange, allocate a diverse portfolio instantly, and rebalance whenever you feel like it, whether every half hour (don’t be this guy though), or half past never. Check out their demo.

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Need more proof we’re in the second inning?

Cryptos have been going sideways for much of this year, dear readers, as I’m sure you all have seen. The past month or so has been a particularly interesting one for cryptocurrency news however.

As we’ve written here on the blog before, we’re in the second inning of cryptocurrencies. The mania leading up to December 2017 prices before a great cash out just in time for tax time here in the continental US was the end of inning one. Inning two is accumulation time for us savvy crypto investors, as we wait for institutional money to come in. And boy is it ever getting primed to come in.

Observe, if you please, the following.

Exhibit A: Billionaire Steve Cohen, current head of Point72, and inspiration for Axe on the excellent tv show Billions, has made an investment in Arianna Simpson’s Autonomous Partners. He is widely considered to be one of the leading investors on Wall Street, despite some unsavory events in his current and prior firm‘s history.

Exhibit B: BlackRock, one of the largest asset managers in the world overseeing some $6.3 trillion in assets, has set up a working group to explore cryptocurrencies. You might recall CEO Larry Fink’s remarks last fall regarding cryptos being mostly a speculative platform in Asia used for money laundering. My how a tune can change in nine months, no?

BlackRock is the latest to do so, following JPMorgan, Fidelity, Goldman, and CME among others are dipping their toes into crypto.

And side note on Goldman – a new CEO is taking over from Lloyd Blankfein come October (who has led the bank through the Global Financial Crisis of 2008, indeed for the past twelve years), current chief operating officer David Solomon, is a fan of cryptocurrencies.

Exhibit C: The SEC has announced neither Bitcoin or Ethereum are securities, immediately afterwhich a huge sigh of relief was exhaled by many. We should note however, that ICOs are, and the SEC has appointed a senior advisor for digital assets and innovation.

And lastly, Exhibit D: the CFA Institute, who writes an intense 3 level exam to train financial professionals, is adding cryptocurrencies and blockchain to its Level I and II curriculums for the first time ever in 2019.

All that to say the engine of inning two of the cryptocurrency world has already begun to rev up. Grab your popcorn, a cozy blanket, and keep accumulating on the dips, dear readers (25% below current level limit orders are your friends, friends!) – things are going to get even more interesting from here on out.

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Overseas Regulation! No, Do Not Panic!

Did y’all see the drop today and start to panic?

The correct answer is “Yes ma’am, we did, but we didn’t panic!”

Glad to hear it, dear readers, maybe y’all are catching on after all.

Earlier today Japan’s Financial Service Agency ordered several licensed exchanges to improve their security and audit procedures. All six of the targeted exchanges must file paperwork with the FSA regularly. Oh, and provide an update about their improvements by July 23rd, so in month’s time essentially.

And, in case you missed it, the FSA also ordered Japanese exchange bitFlyer to temporarily stop accepting new customers. It wants to recheck identification on file for certain customers.

Both of these things are good news, dear readers. I was just in Japan last month, it is a very crypto-friendly country. And as such, it’s registered exchanges are looking to improve security.

As we have mentioned before, this vetting, both in Japan and globally, is what we want. We want the tires to be kicked BEFORE institutional money enters the arena as we progress. Taking security seriously is paramount.

Until then, enjoy some discount shopping and continue to accumulate on the dips.

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Circle Asset Framework Announced

Hi everyone! Passing along news that the Circle exchange released its criteria for listing new coins ans tokens this week, they are calling it The Circle Asset Framework.

Why should you care? Two reasons, really: One, they are looking to become an SEC registered brokerage and trading venue; and two, they are actively pursuing a federal banking license with the Comptroller of the Currency.

If Circle is successful in getting these designations, it may become one of the go-to exchanges moving forward. Further, Circle is being transparent about how coins/tokens will be listed.

And to be honest, they legit have the highest standards we at Crypto Mouse have seen since we started tracking this space.

If you notice, you will see a lot of similarities to how we look at crypto projects, it is refreshing to see someone else look at these so meticulously.

We’ve recapped them below:

  • Does this project add fundamentally new infrastructure to the industry?
  • Does the problem solved by this project benefit from decentralization and/or peer-to-peer networks?
  • Is there a prototype available?
  • Is the project well-documented, peer-reviewed, and open source?
  • Does the leadership team have experience building cryptocurrency projects?
  • What specific pain point or problem does the project aim to address in the long term?

They are definitely running contrary to many of their peers. Many exchanges will list any coin for a listing fee, it’s quite common actually, and why you will see some exchanges list a massive amount of coins and tokens. Very easy in some cases to pay a toll so to speak and have your currency listed almost instantaneously.

Circle does not have to go this route, but they are doing it anyway: they are underscoring their intention to only pick those coins/tokens that add value for their customers, that they will not accept a listing fee. If you want your coin listed, it must meet the standards detailed in their Framework.

Well done, Circle!

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