Displaying items by tag: crypto

Separately Managed Accounts (SMAs) offer notable advantages for institutional investors looking to invest in cryptocurrencies compared to ETFs. While ETFs have become popular among new crypto investors, SMAs provide direct ownership of assets, allowing for greater customization of portfolios and tailored risk management. 

This direct control also facilitates more effective tax strategies and access to a broader range of digital assets beyond just Bitcoin or Ether. Unlike ETFs, which are passive, SMAs benefit from active management, enabling investors to adjust their portfolios in response to market changes and potentially achieve higher returns. 

Additionally, SMAs operate in the 24/7 crypto market, avoiding the limitations of traditional market hours and minimizing the risk of price gaps. For high-net-worth individuals and institutions, the flexibility, personalized approach, and potential for outperformance make SMAs an increasingly appealing option over ETFs.

Finsum: Being able to have access to a cryptocurrency 24/7 is a critical advantage because their markets react overnight with great frequency. 

Vice President Kamala Harris is positioning herself as a supporter of policies that foster the growth of emerging technologies, including the digital assets industry. Her campaign adviser emphasized her commitment to stable, transparent regulations that promote innovation while safeguarding consumers. 

This approach contrasts with former President Donald Trump's stance, which has garnered support from some in the cryptocurrency community due to his promises to reduce regulation. 

Harris aims to balance innovation with responsible oversight, addressing concerns about economic stability and corporate responsibility. Additionally, she has made multiple statements around cutting red tape and bureaucracy for innovation. 

Finsum: The path to higher bitcoin prices might be stable regulation in the long run.

Cboe Global Markets has listed five spot Ethereum ETFs set to begin trading in the US on July 23, 2024. Following the SEC's approval of Bitcoin ETFs earlier this year, market participants are eager for the new Ethereum ETFs.

 With Ethereum's market cap second only to Bitcoin, issuers such as Fidelity, iShares, Bitwise, VanEck, 21Shares, Invesco Galaxy, Franklin Templeton, and Grayscale have already listed Bitcoin ETFs and are now expanding to Ethereum. 

This move marks a significant milestone for institutional and retail crypto investments, reflecting growing global interest in cryptocurrency ETFs.

Finsum: Cryptos will be powered by its ability to enter more mainstream financial products over the coming decade. 

Bitcoin miners are pivoting to AI due to decreasing profitability in crypto mining. Houston-based Lancium and Denver-based Crusoe Energy Systems announced a multibillion-dollar deal to build a 200-megawatt data center near Abilene, Texas, to cater to AI companies. 

This project is the first phase of a 1.2-gigawatt build-out. At full capacity, it will be one of the largest AI data centers globally. The facility aims to utilize renewable energy and Crusoe’s technology to optimize energy usage. 

The Abilene center is expected to be operational by 2025, marking a significant shift in energy use and data center strategies.

Finsum: We are really going to see the stresses of energy on alternatives like crypto this year.

Young, wealthy investors (ages 21-43) are gravitating towards alternative assets like hedge funds, private equity, and crypto, with nearly one-third of their portfolios in these categories. 

They allocate less than half of their portfolios to traditional stocks and bonds, contrasting with older investors who prefer these conventional investments. This younger generation's investment preferences are shaped by greater access to diverse asset classes and experiences like the financial crisis.

 They also hold higher cash allocations for liquidity, despite the potential risks of underinvesting. Diversifying into alternatives comes with unique costs and risks, including higher management fees and illiquidity.

Finsum: The introduction of crypto and many web 3.0 products have really spurned the growth of alts for younger investors.