Launch of a cryptocurrency-indexed fund, busting Bitcoin

      Comments Off on Launch of a cryptocurrency-indexed fund, busting Bitcoin

Nothing goes for Bitcoins, Ethereum, Ripple, Litecoin, Monero and other crypto-currencies that have seen this week of phenomenal declines. Bitcoin, which is the most emblematic electronic money, fell below $ 5,000 this morning, while it was around $ 7,000 at the end of July. Bitcoin lost 75% of its value between its high of 19,783 dollars reached end of December 2017 and the current price.

All other crypto-currencies, whose prices are fully correlated with each other, have suffered the same fate. Panic selling orders have been initiated in recent days by the crossing of technical thresholds. The falling prices were compounded by a completely private counterparty market.

As a result, the total market capitalization of cryptocurrencies fell below the symbolic threshold of $ 200 billion to fall back around $ 180 billion currently.

This fall does not prevent the most fervent defenders of crypto-currencies to continue to believe in the product. Among the various funds dedicated to crypto-currencies existing on the market, the Swiss financial company SwissOne Capital, specialized in "crypto-investing", launches the new fund offering a certain liquidity to the investors and having an important regulatory recognition, since the fund will be approved by the supervisory authority of the Swiss financial market (FINMA).

Proponents of the project say that "according to a global survey conducted by PwC on the blockchain, regulatory uncertainty is the number one barrier for access to the cryptocurrency market, with the lack of trust just behind. The approval of an entity such as FINMA should substantially alleviate these major concerns and legitimize an entry point into the huge market for cryptocurrencies in Switzerland, as the country is the most popular destination for crypto-funds " .

The feeling of Figaro Bourse: despite promises of liquidity and the approval of the supervisory authority of the Swiss financial market, crypto-currencies are very speculative. They offer no visiblity and can be manipulated. In April, the AMF issued a new warning on the risks related to investment products related to cryptocurrencies.

The editorial advises you: