The number two cryptocurrency by market cap, Ethereum, has been rallying alongside the rest of the crypto and altcoin market and has recently even outperformed Bitcoin by a significant margin.Surging Ethereum prices have also coincided with growing volume, which is an extremely bullish sign that the asset is in good health and the crypto market may be ready to rally even higher in the coming days.Ethereum Volume Surging Alongside Price is Bullish SignalEthereum is up nearly 75% since the start of 2020 and has grown over 92% from the low of $116 it set in December 2019 before the year came to an end.Following two years of a downtrend in the number two cryptocurrency by market cap, investors who may be reluctant to buy in at current levels fearing more downside may now have reason to take the risk.Related Reading | Alt Season Cancelled? XRP, Ethereum, and Litecoin All Trigger Sell Signal According to new data from Skew crypto market analytics, Ethereum volumes are back and growing, reaching as much as over $600 million in yesterday’s trading session on Bitcoin-based margin trading platform BitMEX.Increasing volume + increasing price = bullish$ETH https://t.co/RI1yqdrHrs— Josh Rager 📈 (@Josh_Rager) February 7, 2020
After a strong spike around mid-January, volume fell back to stable levels, but have been rising steadily since. Crypto analysts conclude that the increase in volume along with an increase in price in Ethereum is extremely bullish and could signal far more upside in the days ahead.Can the Crypto Asset Reclaim Its All-Time High?During the crypto bubble of 2017, Ethereum prices ballooned to as high as $1,400 per ETH, but following the bubble popping, prices fell over 94% to lows of around $80.In 2019, Etheruem recaptured much-lost ground, gaining over 330% and reaching a yearly high of $365, before the number two cryptocurrency crashed again to the recent local low of $116.In just over a month, Ethereum has nearly doubled in price, reaching $220 and preparing to rip higher if the resistance level above can be taken out.The growth in volume supports further expansion, which could propel Etheruem to as much as $300.Above $300 would let Ethereum rise toward a retest of the 2019 high, and a break could take it to $400. Beyond $400, former support turned resistance lies at $560, $800, and $1,050.Etheruem taking out all of the higher levels would likely lead to a new all-time high.Related Reading | 10 Factors Confirm a New Crypto Bull Market Has Officially Begun Many crypto analysts had claimed that the altcoin market would never reclaim highs set back during the crypto bubble, but given the strength brewing in Etheruem markets, the cryptocurrency could end up proving them wrong.Numerous bullish factors suggest a new bull market is close, but a breakout fo current local resistance levels are the main major hurdle between here and new all-time highs.Featured image from Shutterstock
Go to Source
Author: Tony Spilotro
Japan’s top financial regulator, the Financial Services Agency (FSA), has explained to news.Bitcoin.com its recently adopted rules regarding the creation and sale of cryptocurrency exchange-traded funds (ETFs). Meanwhile, Japan now has a crypto index, launched by major Japanese companies.
With the rising interest in cryptocurrencies as an investment option, Japan’s top financial regulator has adopted new guidelines for cryptocurrency ETFs. Japan is often known as one of the most advanced countries when it comes to crypto regulations, having legalized cryptocurrencies as a means of payment back in April 2017.
A spokesperson for the FSA explained to news.Bitcoin.com this week that “In order for an instrument to be treated as an investment fund in Japan, it is necessary that it corresponds to ‘investment trusts’ as per the Act on Investment Trusts and Investment Corporations, at minimum.” Responding to a question about whether cryptocurrency ETFs are allowed under the new law, the regulator confirmed:
As instruments that invest mainly in crypto assets do not correspond to the legal definition of an ‘investment trust,’ such ETFs cannot be created.
The FSA proceeded to tell news.Bitcoin.com that “The Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc., adopted on December 27, 2019, stipulate that the formulation or sales of investment funds of assets other than specified assets … is not acceptable.”
Specified assets are securities, real estate property, and other assets that the Cabinet has specified to facilitate investments. “Cryptocurrencies are not defined as specified assets,” the FSA emphasized.
Funds Not Primarily Investing in Crypto Assets
Some investment trusts have a small portion of their funds in crypto assets but not as their primary investment objectives. The agency noted that non-specified assets, which include cryptocurrencies, “have high price fluctuation or liquidity risks,” adding:
It has been pointed out that investment trusts for which the main investment is not a cryptocurrency but are investing in cryptocurrencies are encouraging speculations. The FSA believes that we should carefully respond to the creation and sale of such instruments.
Moreover, the regulator clarified to news.Bitcoin.com how it would judge whether a fund mainly invests in crypto assets. The main investment of a fund “can be considered things which are positioned as core assets under management in the operation of that scheme,” the FSA detailed, but emphasized that the primary investment objective “cannot be judged based on the percentage of the total assets of the fund. “A comprehensive range of various factors” should be considered, “such as, for example, the degree of contributions to earnings and the power to appeal to investors, etc.”
Qualified, Accredited and Institutional Investors
The regulator additionally said that it is not appropriate for qualified, institutional or accredited investors, including pension funds and regional financial institutions, to invest in funds with crypto asset components.
“The creation and sales of products that are capable of harming credibility as an investment trust / system of investment corporation, such as investment trusts which invest in unspecified assets for which it is considered that there is a high probability that the investor will be made to bear the risks of excessive price fluctuations, etc., is not appropriate,” the agency noted.
Japanese Crypto Index Launched by Major Companies
Meanwhile, Nomura Research Institute Ltd. (NRI) announced last week that it had started distributing the NRI/IU Crypto-Asset Index to domestic and overseas institutional investors, financial information vendors, and crypto exchanges. The company explained that this index “can be used by institutional investors as a benchmark for objective investment appraisal.” Established in 1965, NRI is the largest Japanese management consulting and economic research firm.
The index was launched in collaboration with Intelligence Unit (IU), a global provider of quantitative research and development for digital asset investment solutions. IU CEO Akihiro Niimi shared his view on the regulatory aspect of this index with news.Bitcoin.com last week. The FSA also chimed in and indicated that this product is not prohibited since it is an index, not a fund.
“The guideline is really complicated,” Niimi began, noting that people misunderstanding the guidelines “would hinder the growth of crypto asset-related business in Japan.” He continued to say that the FSA basically prohibited Japanese mutual fund companies and securities firms from either managing or distributing mutual funds investing in crypto assets directly or indirectly. The CEO added:
However, looking at the Q&A No27, it did not prohibit asset management companies and trust banks to either manage investment advisory business or manage/distribute collective investment schemes.
Based on his interpretation of the guidelines, the FSA prohibited retail businesses from “distributing mutual funds [investing in crypto assets] but had no restriction for institutional business.”
The index is calculated with a platform operated by MV Index Solutions (MVIS), a company registered under the European benchmark regulation, NRI detailed. MVIS is the index business of Vaneck, a U.S.-based investment management firm. Approximately $14.99 billion in assets under management are currently invested in financial products based on MVIS Indices. According to MVIS, the NRI/IU Crypto-Asset Index component as of Jan. 29 was 48.23% BTC, 24.71% ETH, 13.27% XRP, 8.76% BCH, and 5.02% LTC.
What do you think of Japan’s new rules on funds investing in cryptocurrencies and bitcoin ETFs? Let us know in the comments section below.
Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Images courtesy of Shutterstock and MVIS.
Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.
Go to Source
Author: Kevin Helms
The latest rally across the crypto market may just be the first major impulse upward before retail FOMO occurs and the flow of new money entering the market pushes the prices of cryptocurrencies like Bitcoin, Ethereum, XRP, and more much higher.
Go to Source
Author: Tony Spilotro
Bitcoin futures listed on the Chicago Mercantile Exchange rose to multi-month highs, breaking above $10,000 early Friday.
The February contract crossed above the psychological hurdle and printed a high of $10,030 at 11:40 UTC, a level last seen on Oct. 26.
The breakout into five figures, however, was short-lived as prices quickly pared gains to trade below $10,000. At press time, the futures are trading near $9,850.
The February contract has failed twice in the past 24 hours to keep gains above the $10,000 mark. Prices briefly rose to a high of $10,010 during Thursday’s U.S. trading hours.
The uptick in futures is backed by a surge in open positions on major exchanges like the CME and Bakkt. Open interest, the number of open futures contracts on the CME, jumped to a five-month high of $249 million on Wednesday – up 34.5 percent from $185 million seen two weeks ago. Meanwhile, open positions on Bakkt, rose to a record high of $13 million on Wednesday, surpassing the previous record high of $12 million reached on Feb. 3, according to data analytics firm Skew.
While the futures market tested the water above $10,000, the spot price fell short by $128. The cryptocurrency’s global average price, as calculated by CoinDesk’s Bitcoin Price Index, hit a high of $9,872 and was last seen at $9,740.
Bitcoin rallied by 30 percent in January to register its biggest monthly gain since May 201, making it the best January performance in seven years.
Currently, the top cryptocurrency is reporting a 36 percent gain on a year-to-date basis. Meanwhile, other major cryptocurrencies like ether, litecoin and EOS are up 70 to 75 percent, according to data source CoinMarketCap.
Disclosure: The author does not currently hold any digital assets.
Disclosure Read More
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Go to Source
Author: Omkar Godbole