Gemini Exchange CEO Says ‘This Bitcoin Bull Run Is Different’, VanEck Explains Why

Spread the love

On Wednesday (November 25), Tyler Winklevoss, Co-Founder and CEO of crypto exchange Gemini, said the current Bitcoin bull run is different from the one in 2017. Gabor Gurbacs, Director of Digital Asset Strategy at VanEck/MVIS, took note of the Gemini CEO’s comment, and decided to explain why.

This was Winklevoss’s tweet:

In his blog post, Gurbacs points out that “while the 2017 bitcoin rally was driven by higher volumes, likely due to retail demand, the 2020 price rally so far has been driven by lower volume.” He then goes to say that at global investment management firm VanEck they believe that “the 2020 rally is driven more by institutional allocation and that investing in bitcoin has become less speculative in nature, which indicates bitcoin’s increasing status as a store of value and suggests further potential adoption.”

In short, Gurbacs believes that unlike Bitcoin’s H2 2017 rally, Bitcoin’s current parabolic rally is being driven mainly by institutional investors rather than by retail investors.

There have been several developments in 2027 that have led to this conclusion:

  • “On the treasury front, a number of public and private companies started investing in bitcoin as an alternative to holding cash on their balance sheet.”
  • “On the regulatory front, the Office of the Comptroller of the Currency (OCC) published a letter in late July, clarifying the authority of national banks and federal savings associations to provide cryptocurrency custody services for customers.”
  • “On the payments front, we note that the current rally is supported by PayPal’s launch of a new service enabling bitcoin and digital asset buying and selling to its network.”
RECOMMENDED READ:  Survey of millionaires finds 73% own or want to invest in crypto

Interestingly, earlier today, MV Index Solutions GmbH (“MVIS”) announced “the licensing of the MVIS CryptoCompare Bitcoin VWAP Close Index (ticker: MVBTCV) to VanEck for the use as an underlying index for a Bitcoin exchange traded note (ETN).”

The new product, which is called “VanEck Vector Bitcoin ETN”, is listed on Deutsche Börse Xetra. Deutsche Börse is “the first trading platform worldwide to offer centrally cleared trading of crypto ETNs.” Using this product, “investors can participate directly in the performance of the leading cryptocurrency Bitcoin without having to buy it directly.” Currently, this product is only available to investors based in Germany, the Netherlands, and the U.K.

Martijn Rozemuller, Head of Europe at VanEck, had this to say:

“Bitcoin’s historically relatively low correlation to other asset classes makes it an excellent way to contribute to the diversification of a portfolio.”

The MVIS CryptoCompare Bitcoin VWAP Close Index is “an index designed to measure the performance of a digital assets portfolio which invests in Bitcoin, with a closing value based on an hourly VWAP price.” It’s a rules based index which covers the broadest CCCAGG pricing for indices provided by CryptoCompare.

The volume weighted average price (VWAP) is “a trading benchmark used by traders that gives the average price a security has traded at throughout the day, based on both volume and price,” and it is important because “it provides traders with insight into both the trend and value of a security.”

Steven Schoenfeld, CEO at MV Index Solution, stated:

“We are proud to be the index provider for this trailblazing product. The MVBTCV index enhances investor confidence by accurately tracking the Bitcoin price, and is a key member of our growing Digital Asset Index family, which continues to pioneer the cryptocurrency space.”

RECOMMENDED READ:  Number of Active Crypto Traders in Japan Decreased Mid-COVID

And Gurbacs had this to say about his firm’s new Bitcoin ETN product:

“VanEck is committed to support Bitcoin-focused financial innovation. Bringing to market a physical, fully-backed major exchange-listed Bitcoin ETP was a top priority of our firm. We succeeded! We hope to serve many clients and partners in Europe, Asia and across the world using our innovative, investment-friendly and regulatory-conscious access vehicles.”

Dominik Poiger, Product Manager at VanEck, says:

“Our Bitcoin ETN is fully collateralised. This means that the money invested in the ETN is actually used to buy Bitcoin. In this way, each ETN represents a certain amount of Bitcoin.”

VanEck is using Liechtenstein-based Bank Frick as its crypto custodian.

 994 Interactions,  2 today

Filecoin, IOTA, Enjin coin Price Movement Analysis for 11th April, 2021

The altcoin industry has been adjusting to the Bitcoin market's boom, and the valuation of most cryptocurrencies has risen in Read more

Stellar Lumens, Aave, Cosmos Price Movement Analysis for 11th April, 2021

Stellar Lumens moved within a bull flag pattern, but the pattern may be reversed if $0.58 -help is not sustained. Read more

Algorand, Bitcoin Cash, FTX Token Price Movement Analysis for 11th April, 2021

Algorand wasn't yet able to ascend above its horizontal channel. If the bulls can prevent a collapse in the coming Read more

Why retail Bitcoin traders should foresee a price increase

Big Bitcoin wallet inflows indicate a bullish pattern turnaround in the coming week. The price is currently about $60000; but, Read more

Where are ADA, ETH,  DOT, and UNI price movements heading?

Based on price action in March and the first ten days of April, a pattern has appeared on the price Read more

Why this researcher believes the ‘hyperbitcoinization’ is not far from reality

Despite minor corrections over the last week, the Bitcoin price has been rallying higher, with the king coin once again Read more

Bitcoin Price Movement Analysis for 11th April, 2021

Is Bitcoin nearing its peak? It's unlikely. Many on-chain measurements revealed that, although Bitcoin was highly bullish, it had not Read more Coin, Hedera Hashgraph,Monero Price Movement Analysis for 11th April, 2021 Coin was under selling pressure at $0.23, but it still had help in the $0.19-$0.2 range. Hedera Hashgraph would Read more

Litecoin Price Movement Analysis for 11th April, 2021

Since the beginning of the year, the price of Litecoin has increased significantly. LTC was returning 93 percent year to Read more

Ripple’s CTO comments on XRP’s greatest achievement.

Bill Gates made a remark a few years ago claiming that digital currencies are the future of banking. With technologies Read more

Chainlink, BitTorrent, Elrond Price Movement Analysis for 11th April, 2021

Chainlink traded in a narrow range of $33.1-$31.2, with low volumes working towards a bullish short-term result. BitTorrent Token was Read more

Leave a Reply

Contact Us