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ETP based on Binance Tokens, Libra tales & Grayscale’s next index

Check out past issues of the newsletter along with more interesting crypto content as well as short (

Satoshi&Co Daily Crypto Newsletter

October 15 · Issue #240 · View online
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Check out past issues of the newsletter along with more interesting crypto content as well as short (but great) conversations with leading crypto industry participants at our newly-launched website

For a large segment of investors that does not yet own crypto, and does not want to bother with crypto exchanges, but wants exposure to the asset class, ETPs and ETFs are a great way to cheaply access crypto. However, traditional exchanges around the world have been slow to warm up to products that track crypto. Except for a select few like the SIX exchange in Switzerland.
Binance’s native cryptocurrency will serve as the underlying asset to a new exchange traded product (ETP). The world’s largest crypto exchange by trading volume said Wednesday it has partnered with fintech firm Amun to develop the USD-denominated ETP.
Listed on the Switzerland’s principal stock exchange SIX under the ticker ABNB, the financial product can be purchased through a bank or a brokerage like a stock. The ETP will initially be backed by $20 million worth of Binance coins (BNB), representing nearly a quarter of the firm’s total crypto assets under management.
Amun had already partnered with Bitcoin Suisse to launch ETPs for Bitcoin, Ethereum and XRP. Despite the regulatory concerns around Binance, it is interesting to see a traditional finance product being created for BNB tokens. It is perhaps the strong outperformance of centralized exchange tokens YTD that caused this segment of utility tokens to gain traction. 
One thing to note though - Especially given that the fascination for IEOs also seems to be on the wane now , BNB is definitely heading down from its peak earlier this year. Could this be a case of retail rushing in after the the party is over?
Libra’s response
After a spate of key departures, Libra’s remaining partners met yesterday to chalk out the roadmap for the project and formalize the governance structure of the council. With Naspers’-backed PayU the only remaining payments-focused company in the consortium, several questions about the future success of the project were raised. Perhaps to appease the growing skepticism, Libra announced yesterday that it has received interest from as many as 1500 global organizations around the world, out of which 180 meet the eligibility criteria to hold a seat on Libra’s council. 
Surprisingly, the association did not make any changes to its strategy or roadmap that could potentially help Libra assuage some of the regulators’ concerns around financial and economic risks posed by the project. However, Chris Dixon’s idea of pegging Libra to the US dollar will alleviate some of the perceived threats expressed by regulators to the USD hegemony is an interesting proposition.  
Grayscale’s Index Fund
Digital Currency Group’s Grayscale Investments, the biggest digital asset manager with over $2B in AUM, received approval from FINRA to list the first publicly-quoted crypto index fund (DLC) on OTC markets. The investment product is available to accredited investors only and joins Grayscale’s Bitcoin trust, Ethereum trust and Ethereum Classic trust to become the fourth product to be listed on public markets. 
List of leading Digital Asset Fund Vehicles
Meanwhile in Crypto Wonderland....
“Indian Supreme Court Postpones Crypto Case”
The Supreme Court of India on Tuesday once again postponed hearing the case against the crypto banking restrictions by the Reserve Bank of India (RBI). The central bank has replied to crypto exchanges’ representation as directed by the court, which was supposed to resume hearing the case today. The Indian supreme court was scheduled to resume hearing the arguments against the banking restrictions by the RBI today, Oct. 15. According to the court order issued earlier this month, the case was to be listed “top of the board,” which gave the Indian crypto community hope that the case would move forward today.
“Thiel Invests In Wind-powered Mining Rigs Company”
One company is driving its business plan straight into the “bitcoin wastes too much energy” argument and has raised $30 million to do so. That’s according to Layer1 co-founder and CEO Alexander Liegl, which plans to bring wind-powered bitcoin mining rigs to West Texas early next year. The company is raising a total of $50 million at a $200 million valuation, he said. The company has so far raised funds for its series A from Peter Thiel, Shasta Ventures and other cryptocurrency investors that it has declined to disclose. This round follows a previous $2.1 million seed round that also included Thiel, as well as the Digital Currency Group. Further, Liegl questioned the whole premise that the use of electricity to power the bitcoin network is a waste.
“Telegram ICO Likely To Be Delayed”
Telegram could delay the original plan of issuing its own cryptocurrency on the Telegram Open Network by Oct. 31 after the U.S. Securities and Exchange Commission (SEC) ordered it to halt the allegedly “unlawful” token sale in the country. According to a report from Bloomberg on Monday, Telegram sent a note to investors saying it is considering ways to resolve the temporary restraining order from the SEC , including the possibility of postponing the issuance after the Oct. 31 deadline. The SEC said on Friday last week that it filed for and obtained an emergency action and restraining order halting Telegram from selling or distributing its gram tokens in the U.S. The agency said Telegram sold 2.9 billion gram tokens worldwide, with more than 1 billion to U.S. investors allegedly without registering the offering with the securities regulator.
“Ripple Invests In Bitso”
Ripple, the firm behind the third biggest cryptocurrency XRP, has led an investment round in Bitso, one of the biggest crypto exchanges in the Spanish-speaking world. An early partner of Bitso, Ripple has led the new investment round to support the first cryptocurrency exchange in Mexico, the company officially announced on Oct. 14. As reported by crypto publication The Block, the new investment round also involves major investors including United States-based crypto exchange and wallet provider Coinbase, Jump Capital as well as existing investors such as Digital Currency Group and Pantera Capital. The amount of investment has not been disclosed.
Crypto Twitter Pick
Ryan Sean Adams
We’re probably 6 months away from having a 100% bankless version of Venmo

No central bank
No commercial bank

Just you and the public ledger

I don’t think any of this is priced in
What We Are Reading / Listening To
Cross-shard DeFi composability by Vitalik Buterin
Bakkt to reality - Blockchain Insider
Overnight Performance of Top 10 Currencies
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