One River Digital Buying $1B in Crypto with Alan Howard Backing
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2 Wochen ago
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One River Digital, a new institutional-focused investment firm, under the backing of tycoon and hedge fund manager Alan Howard is eyeing a $1 billion investment in cryptocurrencies by early next year.
On Wednesday, hedge fund One River Asset Management CEO Eric Peters explained to Bloomberg that the company’s offshoot One River Digital will surpass $1 billion in terms of crypto holdings sometime in early 2021. The newcomer has already made investments for institutional clients amounting to $600 million in Bitcoin (BTC) and Ether (ETH).
Besides supporting the investment fund, Alan Howard – also a co-founder of Brevan Howard Asset Management – will be purchasing a significant stake in the business. Market analysis, trading services, and technical support for One River Digital will come from Elwood Asset Management – another firm that Howard controls.
Coinbase will serve as the initial partner for One River Digital regarding trade execution and crypto custody, while Northern Trust will act as the fund’s administrator. Head of institutional trading at Coinbase Brett Tejpaul, stated via a spokesperson that:
“Our unified investing experience has the tools sophisticated investors need to execute large and complex trades, complemented by a diverse pool of liquidity.”
Another investor backing One River Digital is Ruffer LLP, the UK investment manager, that confirmed exposure to Bitcoin worth over $700 million. Evidently, that is nearly 2.5% of the firm’s total assets holdings under management being in bitcoin, as the rest of its portfolio investments are in Gold as well as inflation-linked bonds. Nonetheless, it was not clear whether Ruffer’s exposure allocation announcement was connected to its backing of the One River firm.
COVID-19 Pandemic as Main Catalyst for Bitcoin Surge
Over the last few months, a lot of institutional money has headed to Bitcoin. Institutions have been pushed closer to Bitcoin and other cryptocurrencies by unprecedented monetary-policy measures during the crisis period. Hence, the biggest boost for crypto assets emanated from the COVID-19 economic crisis.
“Covid-19 provided the ultimate catalyst for that transition. This is the most interesting macro trade I’ve seen in my career,” Peters commented.
The 54-year-old executive was attracted to digital assets due to their more volatility in financial markets. In his opinion, governments’ fiscal spending together with central banks’ debt monetization is turning out to be the main way to spur growth now that interest rates in the developed world are at below zero levels. Therefore, the money supply increase as a consequence, he thinks, will potentially lead to inflation and currency debasement.
Peters’ goal is to build a “blue-chip fiduciary” for institutional clients to risk exposure to various digital assets. Investors will be able to trade within a day through paying only a 1% fee charge for the funds. Currently, investors have headed towards Gold to escape inflationary fears and currency debasement challenges. However, Peters thinks the scenario will change soon, with BTC and ETH being more visible.
“There definitely are more risks to this than Gold, which has been around for thousands of years, but there’s also way more convexity. There are very few convex bets that’ll help your portfolio when these macro forces start playing out,” he said.
One River, a company Founded by Peters in 2013, usually makes money both when asset prices are rising and when falling through employing trend-following and volatility strategies. During the March coronavirus selloff, its Dynamic Convexity Fund and Long Volatility Fund surged and has since continued up to 40% and 33% year-to-date, respectively.
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Following the Bitcoin all-time high on Sunday, December 27, Riot Blockchain stock registered 20% gains on Monday’s trading session. The stock has already appreciated by 13x this year. Apart from BTC, investors of Bitcoin mining companies are making a bomb in the market.
Bitcoin mining giant Riot Blockchain is making all the news in the market at the moment. On Monday, December 28, Riot Blockchain Inc (NASDAQ: RIOT) stock price surged a massive 20% surging past $15.5 levels. One of the biggest milestones with the Monday rally is that the Riot Blockchain has clocked a $1 billion market cap.
The latest price rally comes as Riot Blockchain hints at going aggressively on its Bitcoin mining business. Last week, the Riot Blockchain added new S19 Pro Antimers to its bitcoin mining arsenal. The company announced the purchase of an additional 15,000 Bitcoin (BTC) mining machines from Bitmain. The recent purchase also pushes Riot’s total fleet to 37,640 Next-Generation Bitmain Antminers.
Riot said that the fresh purchase of Antminers will help the mining company to attain a 65% jump in its mining hash-rate. RIOT stock has registered an unprecedented rally this year in 2020. RIOT stock has multiplied by 13x this year registering a 1200% surge so far.
Riot Blockchain has issued nearly 17 million shares since November 2020 with its total outstanding shares going to 67.5 million. It has been a phenomenal journey for Riot ever since it ventured into the Bitcoin mining business in October 2017. With valuations less than $50 million back then, Riot has grown more than 20x in size as of its latest stock price.
RIOT Stock and Shares of Other Bitcoin Mining Companies Profit from BTC Bull Run
The recent Bitcoin (BTC) price rally during Q4 2020 has also pushed the stocks of Bitcoin mining companies to new highs. Earlier on Sunday, December 28, the BTC price hit its all-time high of $28,000 in a massive bull run followed by huge institutional inflows.
Moreover, along with the BTC price rally, the Bitcoin hash-rate has jumped significantly since November 2020. Over the last two months, the BTC hash-rate has surged nearly 30% and is currently at 132 TH/s. The surge in the hash-rate suggests higher mining activity for Bitcoin.
As a result, Bitcoin mining companies have been making massive purchases of the BTC mining machines. In addition to Riot Blockchain, other giants like the Marathon Patent Group have made aggressive purchases over the last few months. Just like RIOT, the Marathon Patent Group (NASDAQ: MARA) has registered a phenomenal rally of 18% on Monday, December 28. MARA stock has multiplied investors’ wealth by 12x in 2020. It means the MARA stock has also given phenomenal 1100% returns year-to-date.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
How low could XRP go? Watch these price levels next
Published
7 Stunden ago
on
Dezember 29, 2020
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XRP price dropped by 30% on Dec. 29 following Coinbase’s decision to suspend trading.
The market sentiment around XRP has become overwhelmingly negative due to the fear of more exchange delistings.
In the near term, XRP faces three key historical support levels at $0.224, $0.1743 and $0.1471.
Where will the XRP price go next?
The ongoing price trend of XRP is not cyclical nor reliant on technical analysis. It is due to investors selling XRP following the suspension of trading across major cryptocurrency exchanges.
On Dec. 29, Coinbase announced that it is suspending the XRP trading pairs on their platform. Paul Grewal, the chief legal officer at Coinbase, wrote:
“In light of the SEC’s lawsuit against Ripple Labs, Inc, we have made the decision to suspend the XRP trading pairs on our platform. Trading will move into limit only starting December 28, 2020 at 2:30 PM PST, and will be fully suspended on Tuesday, January 19, 2021 at 10 a.m. Pacific Standard Time*. We will provide additional updates, if any, through the Coinbase Support Twitter account, including if there are any changes to timing.”
Given the SEC’s recent action against Ripple, all XRP books have been moved to limit only and Coinbase plans to fully suspend trading in XRP on Tuesday, January 19, 2021, at 10 AM PST. Afterwards, users will continue to retain access to their XRP funds. https://t.co/izreZvgHNl
As Cointelegraph previously reported, analysts anticipated Coinbase to suspend XRP trading after the United States Securities and Exchange Commission filed its complaint.
Coinbase plans to undergo an initial public offering, and it is in the firm’s best interest to remain fully compliant with the regulators in the U.S.
Considering the regulatory uncertainty around XRP, traders have emphasized that technical analysis is of less importance in the short term. Scott Melker, a cryptocurrency trader, said:
“A few people have told me that there’s oversold bullish divergence on the $XRP chart. You are doing it wrong. Charts don’t matter here. You cannot trade in a vacuum. Jesus could come down with Biggie and Tupac and put on a concert for Brad Garlinghouse and I still wouldn’t buy.”
In the foreseeable future, XRP has several major support areas it could potentially recover from. However, these are deep support levels on the weekly chart, which shows that it lacks momentum for a major rebound.
The XRP price has fallen by over 60% in merely two weeks, recording one of its steepest two-week drops in history.
What happens next?
Adam Cochran, a partner at Cinneamhain Ventures, was one of the first to break the story that Coinbase had conversations about suspending XRP trading.
Cochran hinted that the SEC are probably looking into more projects and companies than people realize. He said:
“If you thought my scoop on Coinbase delisting/suspending $XRP was insightful, you’re going to love the next scoop I’m working on, this week. Looks like that SEC is far more active than we thought and sniffing around a number of projects and companies!”
In the initial exploit, the attacker liquidated over 11,700 coins on the 1inch decentralized exchange aggregator after inflating the token supply according to data from the Ethereum wallet explorer Nansen. In total, the rogue actor drained more than $5 million from the project as of press time.
Cover Protocol released addressed the incident in a message posted on its Discord group, stating:
“The Blacksmith farming contract has been exploited to mint infinite $COVER tokens. We have restricted minting access to the farming contract in order to stop the attacker. If you are providing liquidity for $COVER token (uniswap or sushiswap) please remove it immediately.”
According to the Cover Protocol team, the issue only affected the token supply with funds held in “claim/noclaim” pools still safe. The project says it is investigating the incident.
The attack caused a massive decline in the COVER token price, falling by more than 97% while also eliciting negative comments from a cross-section of the crypto community on social media. Back in November, Cover was one of the DeFi protocols to merge with Yearn.Finance.
Monday’s incident makes the Cover the latest DeFi project to suffer a malicious exploit in a year ridden with opportunistic profiteering attacks against numerous protocols.
As previously reported by Cointelegraph, the spate of DeFi hacks throughout the year stand out as one of the major disappointments in the crypto space for 2020 with data manipulation deemed as being easy to accomplish on many projects.
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