… asset and wealth managers around the globe are publishing their investment outlooks for the year ahead. But how serious should investors take these outlooks when thinking about the asset allocation of their own portfolios? Especially as the results from the different outlooks may differ widely. That said, it is good that the outlooks differ, since this means that different economists are not expecting the same market movements across the board. In addition, it might be good to read contrarian views which may challenge expectations and lead to new assumptions for the year ahead. When it comes to this, the

In short, cryptocurrencies such as Bitcoin or Ethereum are digital or virtual currencies that use cryptography for security and operate on decentralized networks. These networks are normally based on a digital ledger technology, the so-called blockchain. Unlike traditional currencies (fiat money) which are issued by governments, cryptocurrencies have so far been launched by corporations or people. They are typically decentralized and rely on peer-to-peer networks for transactions and their validation. This mechanism helps make them resistant to fraud, central control, or interference. Despite these protection mechanisms, investors have witnessed that not all cryptocurrencies were resistant against fraud in the past.

The price of bitcoin reached US$68,420 as of 18 October, up 13.5% since 10 October and 54.8% since the beginning of the year. The surge began after the US Securities and Exchange Commission (SEC) gave approval for eleven bitcoin exchange-traded funds to track the cryptocurrency in January, allowing many new investors to enter the crypto market.  Last week the SEC went further by granting ‘accelerated approval’ for the funds to list and trade options tied to spot bitcoin prices on the NYSE. The 50-basis-point cut in US interest rates last month has also played its part in bolstering the attractiveness

After the approval for spot Bitcoin ETFs on January 10, 2024, the Securities and Exchange Commission (SEC) has approved a rule change that allows exchanges to list spot Ethereum ETFs in the U.S. on May 23, 2024. Nevertheless, the rule change will not lead to an immediate listing of Ethereum ETFs, since every single product needs its own approval from the SEC. This approval means that the U.S. is catching up with the European crypto ecosystem where Bitcoin, Ethereum, and other cryptocurrencies are available to all kind of investors via structured notes, so-called exchange traded notes (ETN). Obviously, there are

On April 11, 2000, the first two exchange-traded funds (ETF) based on the EURO STOXX 50 and the STOXX Europe 50 were listed on Deutsche Börse in Germany. With this listing, Merrill Lynch International brought a product to Europe which had been established in the U.S. since 1993. In addition to Germany, the trading of ETFs also began in Sweden, Switzerland, and the U.K. over the course of the year 2000. Even as the first reactions to these new products were positive, no one at that time really expected the future success that ETFs would experience. The following is a

Tuesday, October 19, marked the official launch of the new ProShares Bitcoin Strategy ETF (BITO). The long-awaited cryptocurrency ETF marks the first of its kind to list on a U.S. exchange. BITO was listed on the New York Stock Exchange (NYSE) following a 75-day review by the SEC. Several other similar futures-based products are due to launch over the next few weeks. The CEO of ProShares, Michael Sapir, emphasized this milestone by saying, “1993 is remembered for the first equity ETF, 2002 for the first bond ETF, and 2004 for the first gold ETF. 2021 will be remembered for the

Bitcoin’s achievements are undeniable. It has brought into the mainstream both blockchain technology and the concept of a decentralised network, which in theory reduces the need for middlemen and gives users more control of their data. The fact that its enigmatic creator Satoshi Nakamoto has convinced so many people to assign so much value to it is remarkable, whatever you think bitcoin is worth. Refresh this chart in your browser | Edit the chart in Datastream That said, it does have design flaws, one of which relates to transaction speed. It is said that the bitcoin network can process around 4.6 transactions

Last week Bitcoin fell to its lowest level since the beginning of March as some of its recent price rises were unwound. There is a range of different suggestions about what initial shock caused the sell-off: from the Biden tax rises on the wealthy to the collapse of crypto currency exchanges in Turkey. While the source of the shock is unclear, the impact of the shock was probably compounded by the amount of highly leveraged futures positions in the cryptocurrency market. As prices fall, exchanges make margin calls on overleveraged speculators which can compound the initial negative price shock.  

Refresh this chart in your browser | Edit the chart in Datastream Bitcoin has rallied in recent weeks, appreciating by more than 50% against the US dollar in December alone. At the time of writing, it took more than $30,000 US dollars to purchase one Bitcoin. Record low interest rates, a rally in risk assets and news that payments company PayPal would be allowing customers to buy and sell Bitcoin on its platform have all contributed to this rally. But while the blockchain technology is impressive and the decentralised nature of Bitcoin and other cryptocurrencies is appealing to many, there are serious

The universe of numbers that represents the global economy. Millions of hands at work, billions of minds. A vast network, screaming with life. An organism. A natural organism. My hypothesis: Within the stock market, there is a pattern as well… Right in front of me… hiding behind the numbers. Always has been. ~ Max Cohen in Pi (1998, movie), Artisan Entertainment. The movie “Pi” follows Max Cohen – a genius mathematician – as he searches for a single number that will unlock the universal patterns found in nature.  As he hones his understanding in the stock market, he is pursued by

AI is very in. If one includes the phrases Artificial Intelligence and blockchain together with a smattering of machine learning or (cherry on the top) deep learning in any capital raising spiel then one is almost guaranteed to have people throwing cash at you. Appetite for such products in the data rich world of finance is especially high. Independent Fintech companies – like Amareos – that could not have existed a decade ago are being created to tap into this technological innovation; almost every major commercial bank is exploring opportunities in this space as evidenced by the proliferation of Fintech hubs

So far this has not been a Happy New Year for the Cryptocurrency (CC) space. Bitcoin (BTC), the CC poster-child, nearly broke $20,000 late last year, more than twenty times its value a year earlier, but has since reversed and is now well below $10,000. CC values in general have followed the path of BTC both up and now down. Anecdotal evidence links  the  use  of  CCs  to  a  variety  of  nefarious  purposes  –  e.g.,  extortion,  drugs,  tax  evasion,  and  capital  flight  – prompting Korea and China to recently impose restrictions on domestic trading, with India now considering measures as