In most asset classes, the larger the order size, the more market impact. This has been true in crypto more than most, with some spectacular examples that have caused huge price moves in the Bitcoin chart. Part of the reason for this has been the structure of the crypto markets. Over the past 3 years, … Continue reading At CoinRoutes [order] Size Doesn’t Matter…
It is fascinating to watch the evolution of the crypto market, particularly that of Bitcoin. On the one hand, we see the market maturing as more people opt to trade intelligently, using algorithmic routing technology that seeks to trade at the best price without impacting the market. At CoinRoutes, we see this quite strongly, as … Continue reading Another Weekend, Another Flash Crash…
At the Messari Mainnet conference, the CEO of CoinRoutes delivered this presentation on Best Execution while trading crypto. This is the deck that was used: Crypto Market Structure & Best Execution
Executive Summary: The market for trading Bitcoin has advanced to the point where exchange traded funds holding Bitcoin should be approved. Using CoinRoutes software, we can prove the superiority of the underlying Bitcoin market relative to many commodities ETFs already approved. The factors compared are: transparency, liquidity, safety, and cost to invest. Holding back approval … Continue reading Presentation to the SEC on Why Approve a Bitcoin ETF
In the classic 80s Sci Fi Epic, “The Highlander”, immortal beings battle through time to be the last one on the planet. That movie provides interesting metaphors for the crypto markets. First, it describes how many of the leading crypto exchanges have opted to “go it alone” rather than work with their competitors. Second, … Continue reading CAN There Be Only One?
(The following was originally published on Coindesk https://www.coindesk.com/the-case-for-a-bitcoin-etf) Issuers have submitted proposal after proposal for a Bitcoin based Exchange Traded Fund (ETF), and the SEC has delayed or rejected each one. It’s time, however, to ask why and if the SEC’s frustration over not having jurisdiction over crypto-currencies is clouding their judgement. In my opinion, … Continue reading The Case FOR a Bitcoin ETF
Thought Experiment: If one started with just one Satoshi, if it could be doubled every day, how long would it take before one owned ALL the Bitcoin that will ever exist… (answer is 52 days) The title of this note updates an old proverb that Benjamin Franklin popularized, to make … Continue reading Mind your Satoshi’s & your Bitcoin will be Worth Much More…
Every time I talk to an ETF provider, exchange, or fund that plan to offer products based on Bitcoin, the same conversation plays out. I ask them how they plan to display the price of the underlying asset or calculate the Net Asset Value (NAV) of the fund, and they describe some index product they … Continue reading Does Bitcoin NEED an Index?
The last month has seen a lot of volatility in the price of Bitcoin, with many people ascribing both the rally over 13,000 and the fall to below 10,000 to the Libra story. There has certainly been a lot of coverage, with headlines like these coinciding with the pullback from the recent highs: “Bitcoin Tumbling … Continue reading Post Libra Backlash, How SHOULD we Value Bitcoin?
Libra IS: Designed to be a medium of exchange for consumers & retailers globally A private blockchain, controlled by its members An asset that is backed by a basket of other assets Libra IS NOT: Censorship resistant Exempt from the machinations of central bank monetary policy Starting with what Libra is, I will focus on its … Continue reading What is Libra & What it ISN’T