In this month’s Digital Investor, we start to examine a topic that is set to accompany us in the coming years: what are the price determinants of crypto assets? If you are a crypto investor or plan to become one, this publication is here to help you to trade crypto assets.
SEBA launches its investment solutions with new crypto index
26 November, 2019
SEBA Bank starts its investment business and launches the SEBA Crypto Asset Select Index (SEBAX) for crypto currencies. SEBAX addresses the predominant problem of traditional market value-weighted indices, making index investments interesting for the digital investment market as well.
In this edition of “The Bridge,” we will introduce you to the consensus mechanism, a notion at the heart of all blockchain-based systems. It is the mechanism that creates trust in the system by acting as a truth seeker. We will use the Byzantine General’s problem to explain the two main consensus mechanisms: Proof of Work (PoW) and Proof of Stake (PoS).
International regulators tackle the issues of stable coins and digital money
14 November, 2019
International regulators have defined strict authorization criteria for Global Stable Coins (GSC) such as Libra. In the short term, no such coins will go live. They have also made it clear that Central Bank Digital Currencies (CBDCs) are inevitable. China may be the first state to issue one. Overall, this intense regulatory focus is enhancing trust in digital and crypto finance.
Are crypto-assets suitable for institutional investors?
07 November, 2019
For years, crypto-asset has been a confidential asset class for non-institutional investors. However, we observe growing “institutionalisation”. In this issue of The Digital Investor, we give a broad overview of the state of the institutionalisation process to assess whether it has reached a level of development that is advanced enough to attract institutional investors.
Blockchain 101: A simple analogy with a famous board game. Whether you play chess or not, this publication is for you. We invite you to discover the crypto world through the game of chess. Don’t be afraid. No prior knowledge in either blockchain or chess is required.
The Swiss Financial Market Supervisory Authority (FINMA) published guidelines on stable coins (including Libra), thereby increasing regulatory certainty around these type of projects. The Swiss National Bank (SNB) assessed stable coins from a macroeconomic perspective, while the G7 handed off work on regulatory issues to the Financial Stability Forum (FSB)
What makes crypto assets an attractive addition to an investor’s portfolio? Our analysis shows that a small exposure to crypto assets can enhance portfolio performance for the given level of risk as the low correlation of crypto assets with traditional asset classes allows them to act as an effective portfolio diversifier.
Blockchain technology, the Internet of Things melding with the Internet of Money, the convergence of Cryptography, Computer Science and Economics – all of these technologies are enablers of the Fourth Industrial Revolution, which many believe is upon us.