Saxo Investment Bank is Bullish on Crypto Over Next 3 Months

Saxo Investment Bank is Bullish on Crypto Over Next 3 Months

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Influential investment bank Saxo released the 35 page, Q2 2018 Quarterly Outlook. In it, the bank’s newly hired Crypto Analyst, Jacob Pouncey, noted the perils of this year’s first financial quarter with regard to digital assets. Taking into account several factors, he believes the next three months could be a breakout time for digital assets, holding the potential to trigger a bull market.

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Heavy Hitter Saxo Bank Released Bullish Outlook on Cryptocurrencies

It takes all of 33 pages to find it, but there it is: a very influential investment bank not only hired a “Crypto Analyst,” but allowed him to have an authored section titled – Are Cryptocurrencies Entering a New Cycle?

The Danish bank, Saxo, forwarded its general outlook for 2018’s second set of three months. Turning to cryptos, Mr. Pouncey prefaced, “Cryptocurrencies fell back to earth with a bang in the first months of this year, having enjoyed exponential growth in 2017. The situation remains fragile, given the outlook to increased regulation and social media advertising bans. That said, we can’t rule out the possibility of a comeback.”

Saxo is based in Copenhagen, and its products include online trading in futures spreads, funds, bonds, CFDs, stocks, and even a foreign exchange. It has the rare charter of being both a proper bank and a broker. As such, it typically caters to institutional, legacy financial companies (more than 100 globally). Its European presence is well established, though it has exposure in the Middle East and Southeast Asia. Saxo claims to handle $12 billion USD daily, having clients in 180 countries.  

Saxo Investment Bank is Bullish on Crypto in the Next 3 Months

That its main analyst in the crypto sector is optimistic going forward means cover for institutional investors who’re looking to dabble. Indeed, Mr. Pouncey details, “The market has seen several acquisitions of crypto exchanges from financial firms such as Goldman Sachs backed Circle acquiring Poloniex, Monex Group acquiring Coincheck, and Yahoo Japan buying a 40% stake in Bitarg Exchange Tokyo.” Additionally, crypto exchanges such as Coinbase have been able to recruit real talent from Silicon Valley, and they’re being placed in key executive positions. These moves seem poised to take advantage of price spikes.

Mr. Pouncey concludes, “several events could serve as springboards for a cryptocurrency bull market in Q2, whether it is through fundamental drivers, or it is just a self-fulfilling prophecy [….] In my opinion, we will eventually see the end of the current, negative cryptocurrency cycle, as many of the weak hands have been shaken out by the bear market and the remaining investors are on the ready to latch onto any good news after the bad start this year.”

Saxo Investment Bank is Bullish on Crypto in the Next 3 MonthsJacob Pouncey

Much of the Positive Outlook is Based on Institutional Investors Entering the Crypto Space

Many professional financial legacy gurus expect the easy credit market to dry up a bit in the coming months as a hedge against inflation. This could mean traditional equities are less attractive, and the search for “uncorrelated assets” begins.

These are “assets that lie outside the reach of the traditional financial system in which cryptocurrencies are a potential alternative,” Mr. Pouncey insists. “Historically, many of the blue chip cryptocurrencies have seen price increases in the face of global uncertainty and [… the] inflow of institutional capital to the cryptocurrency market due to the increase in regulation and investor protection could lead cryptocurrencies to a positive quarter.”

Do you believe institutional investors are going to enter the crypto market soon? Let us know in the comments section below.


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South Korea’s Biggest Cryptocurrency Exchange to Organize ICO in Switzerland

The biggest cryptocurrency exchange in South Korea, Bithumb has just announced that they will be launching an Initial Coin Offering (ICO) for their very own cryptocurrency – Bithumb Coin.

Bithumb: Not The Regular ICO

According to a news report by News1, the ICO will be conducted in Switzerland, but it has several key differences from a regular ICO.

Firstly, Bithumb’s ICO will not be a public sale but rather, a closed affair targeted at the so-called whales of the cryptocurrency industry – institutional investors and large-scale investment firms. The only way for individual investors to participate in the ICO would be to join big groups and institutional investors or pool funds with other individual investors. This is similar to what Telegram – one of the biggest and most secure messaging platforms from Russia – did recently as well.

Although Bithumb has not released any details about their digital currency yet, such as the structure or the purpose of the coin, it will most likely be used on their trading platform to pay for trading fees. Users of the Bithumb Coin can either publicly trade it or use it to pay for the trading fees on Bithumb. Bithumb, on the other hand, will be able to use the funds raised from the ICO to cover operational costs – be it for security updates or regular maintenance.

Bithumb is not the first South Korean company to hold its own ICO. Kakao group, the largest internet conglomerate in South Korea that operates KakaoTalk (messaging), KakaoPay (payment system), KakaoStock (stock brokerage), KakaoTaxi (ridesharing), and KakaoStory (social media), recently announced that it will be conducting an ICO for its new blockchain platform.

Similar to Kakao Group’s ICO, the Bithumb ICO will be held outside of South Korea due to the stringent government regulations when it comes to ICOs. Bithumb’s ICO will be conducted in Switzerland, and Kakao Group has hinted that they might move their blockchain venture to the European nation as well, under a separate company that they will be managing as a subsidiary.

However, this relocation will negatively impact South Korea’s blockchain industry, as the Bithumb Coin and the Kakao Group’s blockchain technology are potentially worth billions of dollars.

Acknowledging the potential losses that they might end up incurring, the South Korean government have been planning to loosen the rules and regulations surrounding domestic ICOs, according to the Korean times.

“The financial authorities have been talking to the country’s tax agency, justice ministry, and other relevant government offices about a plan to allow ICOs in Korea when certain conditions are met.”