Peer-to-peer crypto trading platform BitMEX has acquired German bank Bankhaus von der Heydt, one of the oldest financial institutions in the country, to create a one-stop shop for regulated crypto products in Germany, Austria and Switzerland.
The deal is subject to approval by BaFin, the German financial services regulatory authority, and is expected to be complete in mid-2022. The purchase price or other financial details of the transaction have not been disclosed.
Once the purchase is finalised, the bank will continue to be operated as a standalone business unit, with BitMEX chairman Alexander Höptner and CFO Stephan Lutz, joining the bank’s supervisory board.
The announcement follows the launch of BitMEX Link in Europe, a brokerage service based in Switzerland that facilitates trading in digital assets.
“Germany, as the largest economy in Europe, combines an innovative approach to digital assets with strong regulatory oversight and rule of law – making it a prime market for BitMEX’s expansion in Europe,” Lutz (pictured) said.
The German bank already offers a range of digital assets banking services via blockchain technology as well as solutions for tokenisation. The acquisition of Bankhaus von der Heydt is now the next step in the Group’s European expansion and product development.
The crypto exchange has appointed several executives as part of an ongoing reshuffle amid the revamped mission of the cryptocurrency specialist, which includes several new business lines.
The firm’s upcoming business segments as part of its ‘beyond derivatives’ strategy include spot, brokerage, custody, information products, and the BitMEX Academy. To that effect, BitMEX appointed Rupertus Rothenhaeuser as its chief commercial officer (CCO).
Ivo Sauter was appointed last week to lead Switzerland-based BitMEX Link and its spot, structured products, and OTC trading offering.
Isda calls for contractual standards for crypto derivatives
As institutions have largely traded digital asset derivatives using amended versions of existing ISDA definitions and templates, or using their own bespoke documentation, there’s a lack of standard derivatives documentation, said Isda CEO Scott O'Malia (right) in a newsletter on 18 January.
‘Working on contractual standards and documentation templates for digital asset derivatives is a priority for Isda this year,’ he said.
The key features to be considered include forks, where a blockchain is upgraded or modified, which can change the nature of the blockchain or lead to the disruption events like the creation of two distinct crypto assets.
‘We’ll start by developing standard terms for products that are already traded in the market today, such as cash-settled forwards and options referencing Bitcoin and Ether,’ said O'Malia. ‘We will then consider how we might add value for other types of products, including those traded on decentralized and hybrid trading venues.’
HK crypto platform rolls out dual cryptocurrency products
Q9 Capital, a Hong Kong-based crypto investment platform launched a year ago, today (19 January) rolled out Yield, a new product allowing investors to enter the crypto market within their preferred parameters in exchange for a premium.
Often known as dual currency investments (DCIs), they provide customisable contracts where investors decide their preferred strike price, yield and maturity period at inception.
Investors can know their yield upfront with a pre-determined premium, and depending on whether the market price is above or below your strike price at maturity, they receive their proceeds in Bitcoin (BTC) or USD Coin (USDC). The return is expected to range from 40% to 200% APR and can be rolled at maturity.
The addition of DCIs complements Q9's offerings, which includes Spot and Leveraged Trading, Custody and Earn, said the platform.
The DCIs are available to international investors with no minimum commitment for account opening. For Hong Kong residents, these products are available for accredited investors.
Global crypto ETF & ETPs reach US$20 billion AuM
A record US$20.23 billion was invested in crypto ETFs and ETPs listed globally at the end of November 2021, according to a report published by ETFGI, a UK research and consultancy firm. The products gathered net inflows of US$1.11 billion during November, bringing year-to-date net inflows to US$9.26 billion, which is much higher than the US$278 million gathered a year ago. That was also the fourth consecutive months of net inflow.
In addition, the assets invested in crypto ETFs and ETPs increased 3.7% to US$20.23 billion at the end of November compared with a month ago, according to the monthly report. Year-on-year (YoY), that represented a 549% growth.
Since the launch of the first crypto ETP - the Bitcoin Tracker One-SEK - in 2015, the number and diversity of products have increased steadily. At the end of November there were 80 crypto ETFs/ETPs with 224 listings assets of US$20.23 billion, from 21 providers listed on 16 exchanges in 13 countries. During November, 10 new crypto ETFs/ETPs went live.
‘Substantial inflows can be attributed to the top 20 ETFs/ETPs by net new assets, which collectively gathered US$908m during November,’ stated the report, adding that ProShares Bitcoin Strategy ETF (BITO US) collected US$352m - the largest individual net inflow in the month.
Russia’s Sberbank markets first blockchain ETF
Sber Asset Management has launched Sber – Blockchain Economics, Russia’s first ETF positioning investors to earn on blockchain economics without the challenges associated with the development, purchase, storage and selling of digital assets, according to the firm. The list of issuers includes Coinbase, Diginex and Galaxy Digital.
The new ETF follows the Sber Blockchain Economics Index developed by Sber Corporate & Investment Business (CIB). It includes securities of companies whose core operations are related to distributed ledger technology (DLT).
The index includes companies producing hardware and software for crypto mining, crypto asset creation as well as companies providing blockchain consulting services.
‘Direct investment in crypto assets is associated with high risks. Evaluating them on your own is hard, so instead of investing in crypto assets, we suggest you invest in companies that ensure the development of blockchain,’ said Evgeny Zaitsev, CEO of Sber Asset Management.
Crypto SP trading platform launches new indices
Canadian digital asset trading firm InvestDEFY has announced the launch of two indexes, the Equal Weighted Decentralized Finance (DeFi) and Equal Weighted Metaverse + Web 3.0 NFT.
The structured products firm aims to making crypto investing more accessible and has also introduced its purpose-built and custom designed Digital Asset Trading Automation (D.A.T.A.) platform which powers the indexes.
This platform equips InvestDEFY with the tools of moving rapidly from index design concept to full product launch in a matter of weeks.
The indices are fully investable and rely on an industry-focused index methodology that delivers novel passive exposure. Investors can gain equal weighted exposure to those firms that build the underlying technology as well as the actual DeFi or Metaverse projects.
Investors are privy to a greater range of diversified exposure with each index comprised of twenty tokens or names, in contrast to highly concentrated market cap indexes.
The Equal Weighted DeFi Index replicates the top 10 smart contract-enabled blockchains powering DeFi and the top 10 DeFi projects built with blockchain technology. The Equal Weighted Metaverse + Web 3.0 NFT Index replicates the top 10 Metaverse projects and the top 10 Web 3.0 & NFT platforms that power digital asset ownership.