The Crypto Roundup: 22 September 2020 | CryptoCompare.com

By September 26, 2020Ethereum
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Regulated Brazilian fund manager Hashdex has partnered with Nasdaq to launch the world’s first crypto exchange-traded fund (ETF) on the Bermuda Stock Exchange (BSX).

A report published by cryptocurrency insurance firm Evertas suggests that institutional investors plan to increase their cryptocurrency investments in the next five years.

Leading cryptocurrency exchange Binance has announced the launch of an “Innovation Zone’ to filer out traders based on their risk appetites, before letting them trade risky decentralized finance (DeFi) projects.

Top stories in the Crypto Roundup today:

  • Brazilian Fund Manager to Launch World’s First Crypto ETF with Nasdaq
  • 90% of Institutional Investors Expect to Increase Cryptocurrency Investments, Survey Shows
  • Binance Launches ‘Innovation Zone’ to Filter out DeFi Token Traders Based on Risk Appetite
  • How Much Are Ethereum Whales Actually Making on DeFi?
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Regulated Brazilian fund manager Hashdex has partnered with Nasdaq to launch the world’s first crypto exchange-traded fund (ETF) on the Bermuda Stock Exchange (BSX).

The stock exchange confirmed it approved the ‘Hashdex Nasdaq Crypto Index’ on S+petember 18, revealing then that 3 million Class E shares will be issued to be traded on the platform. Local news outlet Infomoney reports the fund should be live and trading on the BSX by the end of the year. It pints out Hashdex chose to apply with the BSX because of Bermuda’s crypto-friendly regulations.

No further details on the ETF have been made public so far, although Hashdex revealed that the methodology and other information will be released by Nasdaq on the ETF’s launch date. Commenting on the development to major Brazilian newspaper Oglobo, Hashdex’s CEO Marcelo Sampaio said the ETF launch would advance institutional investments in the cryptocurrency space.

Hashdex currently manages $46.4 million worth of cryptoassets spanning four funds, including some holdings crypto. Its auditor is KPMG, and its primary financial institution is Silvergate Bank.

A report published by cryptocurrency insurance firm Evertas suggests that institutional investors plan to increase their cryptocurrency investments in the next five years.

Evertas surveyed investors who oversee some $78.4 billion worth of assets, and 64% of respondents revealed they expected a slight rise in crypto investments from pension funds, family offices, insurers, and sovereign wealth funds.

A further 26% of respondents believe they will “dramatically” increase their investments in BTC and other cryptocurrencies over the next five years, meaning 90% of surveyed institutional investors expect to increase their crypto holdings in the next five years.

When asked about their investments, 84% said improved regulatory infrastructure will make cryptoassets more viable, while 80% also pointed out the expanding crypto market’s liquidity will improve. 76% said negative interest rates and yields on bonds will also push them into cryptocurrencies.

Leading cryptocurrency exchange Binance has announced the launch of an “Innovation Zone’ to filer out traders based on their risk appetites, before letting them trade risky decentralized finance (DeFi) projects.

The Innovation Zone, Binance wrote, will allow traders to trade newer token offerings from their Binance accounts without having to use a Web 3-compatible wallet and a decentralized exchange, as using a DEX through a self-managed wallet requires some knowledge and expertise.

To access the Innovation Zone traders will have to answer two questions. One is on the likelihood that they will incur losses or a total loss of their capital in the Zone. The options are either 50% or more, or less than 50%. The second question will ask whose fault and responsibility is it if the trader incurs losses, of Binance of their own.

If the trader answer it’s Binance’s fault, they won’t get access to the trading zone, as if they blame the exchange they “probably shouldn’t be trading at all and should revaluate” their approach.” Binance hops these questions will help filter out novice traders.

Ethereum whales are driving the decentralized finance (DeFi) movement by depositing millions of dollars into decentralized liquidity pools to earn interest. Most are using Yearn.Finance, a set of automated robots that choose the best returns for them and move assets between different liquidity pools to get them.

The actual calculation of yield percentages is not transparent, however. Stated annual percentage yields are often above 1,000%, but this is misleading as the rate is not sustained over an entire year. Often, farming a particular reward only lasts a few days.

There are several vaults to look into on Yearn.Finance. We’re looking at the most popular one here, yCRV, which leverages a tokenized basket of DAI, USDC, USDT, and TUSDT to farm CRV tokens and trading fees.

Flipsidecrypto’s COO Matt Bridges created a yVault ROI Calculator and analyzed data from three ETH whales farming yield on Yearn.Finance. The largest had $40.6 million in the vault, and generated $500,000 in a three-week period. The person invested 38.5 million yCRV tokens in the vault on August 28, and earned half a million dollars so far.

The second whale had a 92 million yCRV balance on September 2, meaning they invested $97.7 million, and accumulated $847,000 in earnings since August 28. Their return was of little over 2%, annualized 40.46%.

The third crypto whale gradually deposited $10.9 million and sold its funds on September 12. They took home $177,000.

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