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Crypto asset manager Bitwise raises $70 million from Kravis, Druckenmiller, others

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Hunter Horsley, Bitwise Asset Management CEO and executives celebrate the launch of an ETF on the New York Stock Exchange on June 1, 2021.

Source: NYSE

Henry Kravis, Stanley Druckermiller and Bridgewater CEO David McCormick have invested in Bitwise Asset Management’s Series B funding.

The cryptocurrency indexes fund manager raised $ 70 million from a handful of institutional investors and nearly 30 individuals in Wall Street and Silicon Valley. Bitwise, now four, turned profitable that year when it exceeded $ 1.2 billion in assets under management at the end of the first quarter. Part of the motivation for this fundraiser was to involve large stakeholders in the young company’s journey, CEO Hunter Horsley told CNBC.

“We wanted to attract some of the best minds, investors and supporters in Wall Street and cryptocurrencies to the company because we see an opportunity to build a permanent institution,” said Horsley.

Other new investors include D1 Chief Investment Officer Daniel Sundheim, former Federal Reserve Governor Kevin Warsh, Dan Loebs Third Point LLC, Daniel Ochs Willoughby Capital, Louis Bacons Moore Strategic Ventures and Paul Eisenstein’s Vetamer Capital; as well as a number of current and past executives in banking, asset management and tech. Existing investors Elad Gil and Electric Capital led the way. Other existing supporters such as Highland Capital, Khosla Ventures, Castle Island Ventures and Naval Ravikant also attended.

Bitwise plans to use the funds to strengthen its bottom line and develop its research, customer service and sales teams. It has doubled the size of these teams since the beginning of the year and plans to double again by the end of the year. There are also plans to launch more products this year, Horsley said, although he refused to provide any further details. It currently offers several cryptocurrency index funds, “but we want to do more,” he added.

Bitwise is focused on serving long-term investors who want exposure to cryptocurrencies instead of traders by allowing financial advisors to manage it for them. His approach is to create products – funds – that are compatible with the existing infrastructure and workflows used by individual retirement accounts, 401 (k) plans, financial advisors, and taxable brokerage accounts.

“A lot of the crypto industry is traders and traders, people who look at the price every day and think about what the latest news or tweets mean for the price over the next seven days,” Horsley said. “We serve the long-term thinking of investors if this plays a role in the approach to their portfolio and the preparation of a thesis in the next 5-10 years.”

“It’s an audience that has a slightly different behavior,” he added. “We’ve seen inflows on a daily basis for the past two months despite the market decline, and it’s a really important additional audience coming into the space.”

One of Bitwise’s most popular funds tracks an index of the 10 largest crypto assets, including Bitcoin, Ether and Litecoin. That year it also launched a DeFi index fund (or decentralized finance) and a crypto ETF that holds a portfolio of 30 different stocks whose companies get 75% of their revenue from cryptocurrency or 75% of their net assets in cryptocurrencies to have.

In January, 81% of 1,000 Bitwise annual surveys of financial advisors said they answer customer questions about cryptocurrencies. Additionally, 17% of these advisors said they are considering making their first crypto allocation on behalf of clients this year.

Bitwise was one of the first companies to file an application for a proposed ETF with the Securities and Exchange Commission in early 2019. It withdrew this application in January 2020 and has yet to resubmit it. Several companies have entered or returned to the Bitcoin ETF race this year, including Fidelity, NYDIG, VanEck and SkyBridge Capital.

“The SEC is very prudent about space, considering the right dimensions in terms of evaluating perspective, and we try to be helpful to them,” said Horsley. “We spend time there, we are optimistic it will be possible and we will submit when we think the time is right.”

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Cryptocurrency

Amid warnings by authorities, Mexicans are not shy about cryptocurrency

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Cryptocurrencies are not legal tender in Mexico, but many Mexicans have acquired them anyway: According to a recent survey, just over 12% of adults own a digital currency such as Bitcoin or Ethereum.

The comparison website Finder surveyed internet users from 22 countries and found that Mexicans own the ninth most popular cryptocurrency.

Of more than 2,400 respondents in Mexico, 12.1% own crypto, Finder found. Bitcoin was the most popular among Mexicans, followed by Ethereum, Binance Coin, Cardano, and Dogecoin.

Finder also found that Mexican women are more likely than men to own cryptocurrencies. Of the identified crypto owners, 53.7% were female and 46.3% were male.

Poll results from Finder.com. Click the little arrow above for the full list. Courtesy Finder.com

The percentage of Mexican respondents who own a cryptocurrency was just above the 22-country poll average of 11.4%.

Mexicans who own cryptocurrencies can use them in about 100 companies across the country, according to the Coinmap website.

One such store is the Bitcoin Embassy Bar in the trendy Roma neighborhood of Mexico City, where customers who pay with Bitcoin can get discounts. A single bitcoin is currently worth more than $ 62,000.

The company, owned by 31-year-old entrepreneur Lorena Ortiz, is “something of a mecca for cryptocurrency enthusiasts,” according to El País newspaper. In addition to its function as a bar and restaurant, it offers seminars on cryptocurrencies and hosts debates on related topics.

Ortiz rejects claims that cryptocurrencies like Bitcoin cannot be considered real currencies because they were not issued by central banks

“That’s not true. History has taught us that money shouldn’t be spent by an institution. [The concept of money] is a consensus among the population, ”she told El País.

Lorena Ortiz’s Bitcoin Embassy Bar in Mexico City is one of around 100 companies in Mexico that accept payments in cryptocurrency. Twitter

“The bankers who criticize [cryptocurrencies] are like taxi drivers complaining about Uber, “said Gustavo Grillasca, a 42-year-old digital artist and customer of the Bitcoin Embassy Bar.” There’s no way to stop Bitcoin now, “he said.

Their views, and those of the vast majority of cryptocurrency supporters, are in sharp contrast to the views of most governments and central banks, including those of Mexico. Shortly after El Salvador introduced Bitcoin as legal tender earlier this year, the Federal Treasury, Bank of México, and National Banking and Securities Commission issued a joint statement reiterating that cryptocurrencies cannot be legally accepted in the Mexican financial system.

Ignacio Flores, a Bitcoin user and director of a company that provides protection for digital currency transactions, told El País that her stance was not surprising.

“It’s like the 90s when the internet came along. There was radio and television, and suddenly there was an alternative channel that carries audio and video. Technology is always ahead of the law, ”he said.

Another opponent of cryptocurrencies is Gabriela Siller, director of economic analysis at Banco BASE.

Although cryptocurrencies are becoming increasingly popular and mainstream, she described them as “a fad” and complained that their primary purpose will eventually be to conduct illegal transactions. She also said that companies that accept cryptocurrencies are taking a risk because of the volatility of their value. “[Businesses] Set prices in official currencies, but value [of a cryptocurrency] can easily change 15% in a day. For a company, the risk is greater than the benefit, ”she said.

BBVA Mexico chief economist Carlos SerranoBBVA México’s chief economist, Carlos Serrano, fears that cryptocurrencies could become a vehicle for tax evasion. BBVA

Carlos Serrano, chief economist at BBVA México, also raised concerns about the use of cryptocurrencies.

“In a country like ours, before you think about it [getting] more companies to accept [cryptocurrency] Payments we have to ensure that … [their use] does not become a vehicle for tax evasion. You can’t pay your taxes with cryptocurrencies right now, ”he said.

However, Mexican companies that accept them are complying with their tax obligations, El País reported. Ortiz, for example, calculates their Bitcoin earnings in pesos and reports them to the tax authorities.

The vast majority of Mexican companies that accept crypto are small and medium-sized businesses far removed from the “image of a virtual pirate” trying to commit a mega-scam, El País said. In fact, some Mexican companies that accept cryptocurrency payments have not yet found a single customer. This is the case with a dental clinic in Mexico City, which announced three years ago that it would accept certain payments in cryptocurrency.

Although her patients have not yet taken advantage of the option to pay their dental bills with Bitcoin or Ethereum, 28-year-old dentist Carmen Salgado is convinced that one day they will. “I think … [cryptocurrencies are] the future, ”she told El País.

Despite admitting that there are risks associated with using cryptocurrencies, Serrano believes central banks should stop dragging their heels and use blockchain technology to develop their own.

“The central banks urgently need to discuss alternatives. The benefit of getting rid of physical money is undeniable, ”he said.

With reports from El Economista and El País

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U.S. regulators exploring how banks could hold crypto assets – FDIC chairman

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LAS VEGAS, Oct. 26 (Reuters) – A leading U.S. banking regulator said U.S. officials want to provide a clearer way for banks and their customers who wish to hold cryptocurrencies to maintain control over the fast-moving asset.

Jelena McWilliams, chairwoman of the Federal Deposit Insurance Corporation, told Reuters on Monday in an interview that a team of U.S. banking regulators were trying to provide banks with a roadmap for dealing with crypto assets.

This could include clearer rules for cryptocurrency custody to facilitate customer trading, use them as collateral for loans, or even keep them on their balance sheets like more traditional assets.

“I think we have to allow banks in this area and at the same time manage and mitigate risks appropriately,” she said in an interview on the sidelines of a fintech conference.

“If we don’t get this activity into the banks, it will develop outside of the banks. … Federal regulators will not be able to regulate it.”

McWilliams’ comments provide the most complete picture yet of what regulators are investigating as part of a cryptocurrency “sprint” team first announced in May. The team’s goal was to ensure the coordination of cryptocurrency policy between the three major US banking regulators – FDIC, Federal Reserve and Office of the Comptroller of the Currency.

The rapid emergence of cryptocurrency has created a bleak regulatory picture in the United States. Under previous leadership, the OCC has taken an aggressive approach to introducing cryptocurrency into banks, including blessing bank custodial services for cryptocurrency, while other agencies have been slower to respond.

These decisions are currently under review, said Acting Auditor Michael Hsu.

Some banks have already begun to try their hand at these areas without regulatory clarity. Earlier this month, US Bancorp (USB.N) announced that it was launching a cryptocurrency custody service for institutional investment managers.

However, comments from McWilliams, a Republican holdover from the Trump administration, suggest regulators are still looking for a way to incorporate cryptocurrency into traditional banking supervision.

“My goal in this multi-agency group is basically to provide banks with a way to act as custodians of those assets, using crypto and digital assets as some form of collateral,” McWilliams said at a conference panel.

“At some point we will tackle how and under what circumstances banks can keep them on their balance sheets.”

McWilliams recognized the challenges.

The simplest problem would be getting regulators to create a roadmap for crypto-asset safekeeping, she said. However, it is difficult to figure out how to admit the volatile asset as collateral and put it on bank balance sheets, she added.

“The problem there is … the valuation of these assets and the fluctuations in their value that can occur on an almost daily basis,” said McWilliams. “You have to decide what kind of capital and liquidity treatment you want to assign to such balance sheets.”

Reporting by Echo Wang; Letter from Pete Schroeder; Editing by Megan Davies and Richard Chang

Our Standards: The Thomson Reuters Trust Principles.

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Next-generation Cryptocurrency Bitcoin Latinum (LTNM) Announces the 7th Exchange to List LTNM – HitBTC #5 Ranked Exchange by Volume

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Bitcoin Latinum continues its momentum with world class global stock market listings

/ EIN News / – PALO ALTO, Calif., Oct.26, 2021 (GLOBE NEWSWIRE) – Bitcoin Latinum (LTNM), the next-generation insured asset-backed cryptocurrency, continues to gain momentum and expand its global adoption as announced its scheduled listing on HitBTC Exchange, a top crypto exchange in terms of 24-hour volume, today. LTNM will be available for trading in BTC and USDT pairs, and official trading is expected to begin in late December 2021. HitBTC will be the seventh exchange to list LTNM.

Bitcoin Latinum is an insured asset-backed cryptocurrency based on the Bitcoin ecosystem. Developed by Monsoon Blockchain Corporation on behalf of the Bitcoin Latinum Foundation, LTNM is a greener, faster, and more secure version of Bitcoin that is capable of managing massive crypto transactions while being highly efficient in terms of cost and scalability. Its listing on HitBTC shows how quickly LTNM is gaining reputation in the global crypto community as one of the revolutionary blockchain-based tokens of Bitcoin that will empower industries like media, gaming, telecommunications and cloud computing in the near future. The listing on HitBTC underscores the commitment of the Bitcoin Latinum community to support the growth of a sustainable decentralized crypto ecosystem, provide wider access to the network, and further support the distributed ledger that underlies Bitcoin Latinum.

The HitBTC team commented: “We are very excited to see how Bitcoin Latinum will further strengthen their vision and further reach our large and diverse community.”

According to Coinmarketcap’s stock market ranking, HitBTC ranks in the top 5 (around $ 5.1 billion) for 24-hour volume on over 300 crypto exchanges. Listing on HitBTC will further enhance LTNM’s ability to reach a wider audience seeking exposure to cryptocurrencies and decentralized funding (DeFi). The partnership comes after Bitcoin Latinum secured its listing on six other exchanges, including DigiFinex, FMFW.io (formerly known as Bitcoin.com Exchange), XT.com, BitMart, Changelly, and Changelly Pro. By adding renowned exchanges to its portfolio, the Bitcoin Latinum team continues to demonstrate its strong intention to make the crypto space better, more diverse and more efficient.

Dr. Donald Basile, Founder of Bitcoin Latinum and CEO of Monsoon Blockchain Corporation, expressed excitement about the upcoming listing on LTNM on the HitBTC exchange and said, “We are very excited to have HitBTC as our next exchange in our plan to be listed on many from to select the most important stock exchanges worldwide. This marks a milestone in the history of Bitcoin Latinum and the continuation of an exciting journey to revolutionize digital transactions. In the next few months we will be announcing more exchanges to reach a wider audience and improve adoption of digital assets around the world. “

About Bitcoin Latinum

Bitcoin Latinum is the next generation of insured asset-backed cryptocurrency. Based on the Bitcoin ecosystem, Bitcoin Latinum is greener, faster, more secure and ready to revolutionize digital transactions. Using an energy-efficient proof-of-stake consensus algorithm, Bitcoin Latinum plans to bring higher transaction speeds, lower fees, and more security to high-growth markets such as media, gaming, telecommunications, and cloud computing.

Further information can be found at https://bitcoinlatinum.com

Twitter: https://twitter.com/bitcoinlatinum

About HitBTC:

HitBTC is a crypto exchange with over 800 trading pairs. The platform was created in 2013 and offers exchange, custody and other related services. Despite its long history in the crypto space, HitBTC has remained one of the few exchanges whose security has never been compromised. HitBTC offers a number of APIs such as REST, WebSocket and FIX API. The exchange’s user interface is designed to meet the needs of the most demanding and demanding traders.

Further information can be found at https://hitbtc.com/

FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY; NO INVESTMENT ADVICE. All information provided is for educational and informational purposes only and should NOT be construed as securities-related offers or requests or used as personalized investment advice. Bitcoin Latinum strongly recommends that you consult a licensed or registered professional before making any investment decision.

Media contact

Company: Bitcoin Latinum

Contact: Kai Okada, Director of Communication

Email: kai.okada@bitcoinlatinum.com

Website: https://bitcoinlatinum.com/

Address: 2100 Geng Road, Palo Alto, California 94303, USA

Phone: +1 800-528-0985

SOURCE: Bitcoin Latinum


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October 26, 2021, 4:52 pm GMT


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