As Bitcoin is heading from one all-time high to another, there is a lot of talk around cryptocurrencies and even about blockchains, the technology behind cryptocurrencies. That said, only a few investors know what’s the technology behind cryptocurrencies and how it works. A blockchain is a decentralized, digital ledger technology (DLT) that records transactions across a network of computers in a secure and transparent manner. The name blockchain is derived from the structure of the technology, since data is stored in blocks that are linked together in a chronological chain. To ensure data integrity and security, blockchains use cryptographic techniques.

After attending the “FUTURE DAY—Day of Crypto Assets, Tokenized Securities, ETF Robo Advisors and Wealth Tech” of the XENIX ETF Days 2024 in Berlin, it became quite clear to me that the usage of distributed ledger technologies (DLT)—the technology underneath blockchains—is still in its infancy. The reason for this assumption is the fact that there have been only a limited number of securities issued as digital securities so far. That said, it is remarkable that one major German company has issued its first bond as digitized security, which might be seen as a lighthouse project which others may follow. In

The general economic outlook for the second half of 2022 and beyond is marked by geopolitical tensions in Europe and Asia, high inflation rates, increasing interest rates, and disrupted delivery chains. Rough market conditions are often linked to outflows from mutual funds and, therefore, it is not surprising that the European fund industry faced overall outflows for 2022 year to date. If a fund promoter faces outflows, they often start to review their existing product ranges to close non-profitable funds or merge funds with similar investment objectives since this reduces costs and helps to keep profitability up. But fund promoters

This article reviews the panel discussion “ETF distribution in a post-coronavirus world” which took place at the ETF Ecosystem Unwrapped 2022 conference in London, organized by ETF Stream. Asked about the key factors for future growth of the ETF industry, Caroline Baron (Head of ETF Business Development, EMEA at Franklin Templeton) said that beside other factors, client education would be one of the key drivers for future growth. Her fellow panelists, Kate Dwyer (Head of Passives UK at Invesco) and Sam Manchanda (Head of Passive Client Coverage Division, North EMEA at DWS), agreed with this view. Kate Dwyer amended that

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

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

Despite being intrinsically worthless, the price of one Bitcoin has now surged through $7100, meaning it is now worth almost six times as much as an ounce of gold. As the most well-known and widely-traded virtual currency, Bitcoin allows users to bypass banks and other payment processes to pay for goods and services directly, without the need for an intermediary. Proponents say this gives it value, along with the blockchain technology it’s built on. But the question remains, is it in a bubble? Using the tipping point for Bitcoin of 2013 where its usage had begun to level off, we

Sometimes a small number can be a sign of a big thing. Take the $1.5 billion of initial coin offerings (ICOs) that were launched in the first eight months of 2017, as calculated by promotional website Coindesk.com. That’s not even a ripple in the $75 trillion global economy. Still, the enthusiasm over the creation of useless electronic tokens is a clear indicator that too many people have more money than sense. As a money-substitute, the new pseudo-currencies are a stunning failure. They are the opposite of stable, since they can be created at will and their supply is unlimited. For

Long live bitcoin. U.S. regulators resoundingly rejected a plan submitted by the Winkelvoss twins of Facebook fame to list an exchange-traded fund linked to the digital currency. At the same time, the ledger technology behind it is gaining traction on Wall Street. The Securities and Exchange Commission’s decision was sweeping, going beyond mere technicalities to focus on the fundamentals of the proposed Winklevoss Bitcoin Trust. Much of today’s trading takes place in unregulated Chinese markets that are widely suspected of allowing front-running, wash trades and other dodgy practices, the agency noted. That makes it impossible to have surveillance-sharing arrangements to