New York Digital Investment Group Llc

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Traders Still On The Sidelines Despite Recent Price Bump

Digital real estate sees massive investment

Even though bitcoin is up 35.5% off its recent $17,567 lows, market data continues to show that traders are conservatively positioned. Open interest in futures and options remains well below all-time highs, and perpetual swap funding rates indicate little directionality.

Futures open interest presently stands at $12.5B, up off the recent lows but still well below all-time highs of $27.43 last year. Futures open interest on measured exchanges has been on a downward trend since the November launch of the ProShares Bitcoin Strategy ETF , which invests in bitcoin futures traded on the Chicago Mercantile Exchange . We think the downward trend in open interest is reflective of investor sentiment in the asset over the past 9 months and, while we are encouraged that it is up off the recent lows, it does not provide sufficient evidence to us that investor mentality has shifted.

Open interest in options on Deribit tells a similar story to that of futures, also on a downward trend over the past 9 months but with signs of coming off the recent lows. Options traders appear to be expressing similar attitudes as futures traders.

What Makes This Service Relevant

Currently, in the digital assets domain, many enthusiasts are forced to turn towards unregulated entities, operating outside the purview of the conventional banking system for bitcoin investment. This is applicable even for basic services like opening an account to buy, sell and hold cryptocurrencies. It is not just the individual investors, even the corporates and institutional investors leaning towards cryptocurrencies have limited alternatives.

In the words of Robert Gutmann, the co-founder of NYDIG, While bitcoin adoption is increasing, an accessibility and credibility gap remains for too many who want to buy, sell and hold. Our partnership with FIS, and their core banking clients, bridges this gap. Since both the entities are federally approved financial intermediaries, Gutmann sees the commercial agreement with FIS as a credible solution for cryptocurrency adoption.

Fidelity Collaborates With Nydig To Launch Bitcoin Investment Functionality For Core Banking Clients

While federal bodies across the world are contemplating ways to regulate digital assets and cryptocurrencies, mainstream banks and fintech companies are focused on introducing fee-based crypto-related services for bitcoin investment. Fidelity National Information Services , an American Fortune 500 fintech company listed on the New York Stock Exchange, is the latest to launch a Bitcoin investment service, according to their press release in the first week of May. The service will be available to Fidelitys core banking clients.

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The Fed Raises Rates While Market Expectations Cool

On Wednesday, the Fed announced that it would be raising its benchmark overnight borrowing rate by 75bps up to a range of 2.25% – 2.50%. The hike was priced well in advance, and in fact, there was a small probability of a 100bps hike priced into markets. As a result, markets jumped on the news, with the S& P 500 ending the day up 2.6% and bitcoin up 8.9%.

Despite the fact the Fed continues to hike, market-based expectations for interest rates 12 months into the future, based on Fed Funds Futures, continue to decline. Last month, these futures predicted that the overnight rate would be as high as 4.0% in a years time. That level has decreased to 3.0%. Investors, it seems, are growing less fearful of an aggressive hiking path. With bitcoin following the contours of Fed expectations this year, this may be one of the causes of the recent price rally.

Digital Currency And Protocol Investing

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DCG supports the development of distributed ledger networks by investing in digital currencies and participating in select token sales.

We recognize that token sales are an emerging mechanism for funding the creation of new financial technology infrastructure, and we are making every effort to comply with all laws and regulations pertaining to the issuance, trading, and use of new cryptoassets. For more details on our approach, please view the DCG token disclosure policy here.

Our core digital currency and token holdings include:

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Nydig And Q2 Announce Collaboration To Offer Integrated Bitcoin Solutions For Financial Institutions Via Q2s Digital Banking Platform

Integration will allow Q2s clients to offer their more than 18 million customers the ability to buy, sell and hold Bitcoin

Collaboration will be powered by NYDIGs secure, regulated, full-stack Bitcoin platform

NEW YORK & AUSTIN, Texas—-NYDIG, a leading technology and financial services firm dedicated to Bitcoin, and Q2 Holdings, Inc. , a leading provider of digital transformation solutions for banking and lending, today announced they will collaborate to provide the more than 18.3 million registered users on the Q2 platform with the ability to buy, sell and hold Bitcoin.

Q2s flexible, modern, and open digital banking platform currently powers nearly 30 percent of the top 100 banks in the U.S. and enables one out of 10 digital banking customers to transact and engage via cloud-based digital solutions anytime, anywhere and on any device.

According to a December 2020 study by Cornerstone Advisors, 15 percent of U.S. consumers own Bitcoin or some other form of cryptocurrency, said Jonathan Price, EVP of Emerging Business, Corporate and Business Development, Q2. The consumer survey also revealed that the majority of these crypto owners would use their banks to invest in cryptocurrency if they had the choice to do so. We are excited to work with NYDIG to enable financial institutions to take advantage of this market opportunity and meet the demands of their account holders.

About NYDIG

About Q2 Holdings, Inc.

The Miner Is Getting More Machines For Its Helios Facility In Texas

Inside HIVE’s mining farm in Sweden

Crypto miner Argo Blockchain is borrowing $70.6 million from a subsidiary of New York Digital Investment Group to fund the purchase of mining equipment for its Helios facility in Texas.

  • Argo, which has a market cap of $385 million, announced another $26.6 million loan from NYDIG in March, meaning it has now borrowed $97.2 million from the firm.
  • Argo expects the Helios facility in Dickens County, which is near the Texas Panhandle, will operate at 200 megawatts of electricity, but has the capacity to be ramped up to 800 MW, which would make it one of the largest crypto mines in the world. The company is one of a few buying Intel’s new mining chips.
  • The loan announced on Wednesday will be paid out in eight tranches from the end of April to July, each with an interest rate of 12% and maturing in about two years.
  • The loan announced in March came with an 8.25% per annum interest rate and a term of four years.
  • In the fourth quarter of last year, Argo raised $40.0 million in unsecured debt by issuing of senior notes that are traded on the Nasdaq Global Select Market, according to its annual earnings report.

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Recession: Whats In A Name

The U.S. Department of Commerce announced yesterday that real GDP had contracted by an annual rate of 0.9% in Q2 2022, following a decrease of 1.6% annualized in Q1 2022. Despite the contraction, markets rallied on the news, as investors had expected worse, but the news sparked a debate over whether the economy is in a recession. Given that bitcoin has been trading as a risk asset this year, the state of the economy is worth reviewing.

Quibbles over precise definitions of economic terms aside, the NBER is very late in identifying economic inflection points – cycle peaks and troughs. On average, the NBER announcement of economic peaks have come 234 days after the economic peak, and the announcement of economic troughs have come 476 days after the economic trough. Investors should understand that the recognition of an economic inflection point is very much a backward-looking event.

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Fiserv Nydig Partnership Establishes Platform To Meet Consumer Expectations

Interest in cryptocurrency, particularly bitcoin, is accelerating as consumers grow more comfortable investing with digital assets. Financial institutions already are adapting to that changing landscape, exploring how to provide access to cryptocurrency for consumers.

That proactive approach is at the heart of a recent partnership between Fiserv and New York Digital Investment Group , a leading bitcoin technology and financial services company. The partnership will allow consumers to manage bitcoin transactions directly within their financial institutions’ online and mobile banking portals.

Patrick Sells, head of bank solutions for NYDIG, and Byron Vielehr, chief digital and data officer for Fiserv, recently discussed the suite of bitcoin products and services, how it can help financial institutions retain and grow their customer base, and opportunities to expand from the initial bitcoin platform.

The following conversation has been edited for length and clarity.

What type of demand is there for financial institutions to offer bitcoin?

Patrick Sells: At the consumer level, there’s this strong, untapped demand to access bitcoin at the bank your trusted gateway and safekeeper of your financial assets. You want to be able to take advantage of that by buying bitcoin there and managing it in a single experience.

What is Fiserv doing to make this work?

It all happens automatically between the two platforms. Consumers can get a consolidated view of their holdings.

Fidelitys Bitcoin Investment In Your Bank Account For Core Banking Clients

Fidelitys Bitcoin investment in your bank account is the first of its kind initiative that will allow its core banking clientele to transact in bitcoins using a mobile app. The FIS Digital One Mobile app sports a dedicated interface for trading in bitcoin and can be viewed in tandem with your bank account. This module will also offer bitcoin custody services in collaboration with New York Digital Investment Group LLC .

Fidelitys venture capital arm – FIS Ventures, holds an undisclosed stake in NYDIG.

The press release quoted Head of Global Core Banking and Channels for FIS, Rob Lee saying that As demand for bitcoin as a store of value continues to grow, FIS is focused on enabling our core banking clients to respond to growing market demand and better serve their customers.

NYDIG is a fintech company with a focus on providing institutional solutions for bitcoin-related financial services. It disclosed plans to launch an exchange-traded fund in an SEC filing dated 16 February 2021 for bitcoin investment. As per the filing, Morgan Stanley & Co LLC will act as the Authorized Participant to process transactions, whereas U.S. Bancorp Fund Services LLC will oversee administrative functions like taxation, accounting services, financial reporting as well as NAV calculations.

Before entering into the crypto-custody agreement, both Fidelity and NYDIG collaborated on the Quontic Banks Bitcoin Rewards debit card service in 2020.

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How Many Employees Are Allocating Paycheck Portion To Bitcoin

A few months after launching Bitcoin Savings Plan, NYDIG finds average user puts $75 per paycheck toward BTC

  • Between 15% and 20% of the employees with the option to put funds in NYDIGs Bitcoin Savings Plan have done so, companys chief marketing officer says
  • Vantage Bank human resources executive says the company touts the perk in effort to attract talent

Companies allowing their employees to allocate a portion of their paychecks to bitcoin are reporting a wide range of adoption rates as crypto market volatility persists.

A few months after NYDIG launched the ability for companies to offer its Bitcoin Savings Plan to workers, the firms chief marketing officer said the average amount workers are putting to bitcoin is $75 per paycheck.

The bitcoin-focused financial services company first revealed plans for the savings offering, which gives the employees of partner companies the option to receive a percentage of their post-tax earnings in the cryptoasset, in February. NYDIG then rolled out the service in April. Employees choose the allocation that goes into a cash account that is used to automatically fund bitcoin purchases.

NYDIG has seen consistent growth in terms of money deposited into savings plans in each paycheck cycle since the launch of the business, NYDIG Chief Marketing Officer Kelly Brewster told Blockworks.

Overall, between 15% and 20% of employees with the option to put funds in a Bitcoin Savings Plan have done so, Brewster said.

New York Digital Investment Group Subsidiary Acquires New York Bitlicense

NYDFS Approves 14th BitLicense to NYDIG for BTC, BCH, ETH, XRP and LTC ...

The New York State Department of Financial Services has granted a BitLicense to NYDIG Execution, according to an official DFS announcement published Nov. 14.

NYDIG Execution, a subsidiary of the New York Digital Investment Group LLC , is now legally authorized to operate cryptocurrency-related business and to conduct money transmissions. Through the recent license, the firm is permitted to offer crypto custodial and trade execution services in the jurisdiction of New York state.

NYDIG will be allowed to operate as a crypto custodian for five cryptocurrencies Bitcoin , Bitcoin Cash , Ethereum , XRP , and Litecoin .

According to the statement, NYDIG is authorized to run self-custody contracting with third parties for custodial services, as well as to carry out contracting with NYDIG Execution or its other subsidiary NYDIG Trust, which was granted limited trust status within the same announcement.

First issued in August, 2015, BitLicense is a business license that entitles the holder to use cryptocurrencies and obliges them to comply with a number of rules covering cryptocurrencies control, administration, maintenance, storing, and issuance.

While the license provides businesses with a defined regulatory framework for cryptocurrencies in New York, many industry entrants have reportedly criticized its regulatory requirements. The introduction of the BitLicense initially drove some companies to leave the state.

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The Raise Led By Westcap Will Accelerate Growth And Further Nydigs Mission Of Bitcoin For All

NEW YORK, NEW YORK â December 14th, 2021 â NYDIG, a leading bitcoin company, announced today a growth equity funding round of $1 billion that will value the company at more than $7 billion. The round was led by WestCap, with participation from prior leads Bessemer Venture Partners and FinTech Collective, as well as strategic partners and existing investors Affirm, FIS, Fiserv, MassMutual, Morgan Stanley, and New York Life.

The capital will be used to further develop NYDIGâs institutional-grade Bitcoin platform using recent upgrades to the Bitcoin protocol with capabilities such as Bitcoin and Lightning payments, asset tokenization, and smart contracts.

âThe prospects for both NYDIG and Bitcoin have never been more exciting,â said Robert Gutmann, co-founder and CEO of NYDIG. âOur roster of partnerships and strategic investors lays the foundation for NYDIG to become the leading provider of Bitcoin solutions for businesses in any industry, and this new equity capital will further accelerate progress towards making this exciting network accessible â and useful â to all.â

NYDIG will also use the capital to further expand its world-class team across the globe. If you are excited about the teamâs mission of bringing free and open money to all, and want to join the team, visit nydig.com/careers for more information.

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