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Crypto Investment Manager DAiM Launches Company-Sponsored Bitcoin 401(k) Retirement Plans

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After running a 12-month test, U.S.-based digital asset investment management DAiM has announced the launch of the first employer-sponsored 401(k) plans that use bitcoin as a base currency. 

According to the announcement today, DAiM notes that the new service is compliant with the Retirement Income Security Acts of 1974 (ERISA) and will be fully available from 2021. 

Allocating Up To 10% To Bitcoin

The crypto manager said it would work closely with companies and serve as an advisor and custodian to create a 401(k) plan with a flexible recommended model portfolio and 10% allocation to Bitcoin.

DAiM will also be responsible for selecting, monitoring, and benchmarking the investment offering, as well as a plan fiduciary. 

The bitcoins will be stored in Institutional Cold Storage Custody with Gemini Trust, thus allowing DAiM to easily transfer BTC to employees leaving the participating companies. 

Since 2018, U.S. citizens are allowed to hold cryptocurrencies in their personal retirement accounts, brokerage accounts, and 401(k) rollovers, following the tax imposition by the Internal Revenue Service on Bitcoin. 

However, DAiM’s Chief Operating Officer, Adam Pokornicky, made it clear that it has been impossible to offer Bitcoin inside company-based plans without taking a penalty or quitting one’s job until now. 

He further added that the conventional wealth administration sectors have been slow to warm up to Bitcoin, pointing there are barely any investment advisors offering licensed and regulated access to Bitcoin directly in brokerage and retirement accounts.

Bitcoin Has A Place In Modern Portfolio

Pokornicky ascribes the industry’s hesitation to serious regulatory red tape around crypto abidance, stressing that it took “almost a full year of slow-building” before DAiM’s innovation was endorsed for providing its employer-sponsored facilities.

Pokornicky also highlighted the sharp rise in demand for Bitcoin from retirement investment and said:

“We’ve seen most demand from individuals between the ages of 28-45.”

According to him, the leading cryptocurrency has proved itself as a viable addition in modern portfolios, and “individuals should have an opportunity to ‘Get Off Zero’ and invest directly through their retirement account.”

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Source: https://cryptopotato.com/crypto-investment-manager-daim-launches-company-sponsored-bitcoin-401k-retirement-plans/

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Tether (USDT) is nearing $20 billion market valuation

TL:DR Breakdown: US dollar-backed stablecoin, Tether, is nearing a market cap of $20 billion. The stablecoin market cap has been on growth for the past two months. The market capitalization of the fourth-largest digital currency, Tether (USDT), has been on the rise since the beginning of the crypto market in September. According to data provided […]

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TL:DR Breakdown:

  • US dollar-backed stablecoin, Tether, is nearing a market cap of $20 billion.
  • The stablecoin market cap has been on growth for the past two months.

The market capitalization of the fourth-largest digital currency, Tether (USDT), has been on the rise since the beginning of the crypto market in September. According to data provided by Skew, a crypto on-chain analytics platform, the stablecoin market valuation is nearing the $20 billion mark. On this note, the US dollar-backed crypto is still leading the stablecoin market with a huge dominance rate. 

The second-largest stablecoin USD Coin (USDC), has about $2.97 valuation on Coinmarketcap.

Tether Posts More Market Cap Growth

On Coinmarketcap, the leading stablecoin has a market valuation of around $19.413 billion and a 24 hours trading volume of $89.885 billion. CoinGecko posted a market $19.398 billion and $65.629 billion 24hrs volume, while Messari posted a $19.97 billion capitalization and trading volume of $9.449 billion. Notably, USDT’s market valuation has been growing steadily since September, as Skew shared on Twitter today.

To better understand the growth, the stablecoin had a valuation of around $10.2 billion on Messari, and $9.1 billion on Coinmarketcap, back in July. Meanwhile, it’s worth noting that the company behind the digital currency, Tether inc., has been minting a significant amount of USDT in recent days. 

There has been a lot of controversy around the stablecoin. The company says each USDT issued is backed by a US dollar; however, this has been largely questioned by many people in the digital currency space. 

USDT kept dominating

Despite the controversies around USDT’s backing, the stablecoin remains the most-traded and leading currency-back cryptocurrency. The second-leading stablecoin by market capitalization, USDC, sees a valuation of $2.98 billion on Messari, $2.969 billion on CoinGecko, and $2.97 on Coinmarketcap. 

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November by the numbers: A look at crypto exchange volumes, open interest, and miner revenue


Quick Take

  • Total adjusted on-chain volume saw a strong increase of 51.5%, to a new yearly high of ~$203.8 billion in November.
  • Cryptocurrency centralized trading volumes saw a significant increase of 133.8% in November, while DEX volumes continue to decline.
  • Lending from dYdX, Compound and Aave hit a new all-time high with $7.6 billion in originated loans in November.
  • Aggregated open interest and monthly volume of Bitcoin futures and options, and Ethereum futures and options, all reached new all-time highs in November.
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November by the numbers: A look at crypto exchange volumes, open interest, and miner revenue


















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Coinbase Faciliated MicroStrategy’s $425M Bitcoin Purchase Without Moving The Market

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The leading US-based cryptocurrency exchange Coinbase assisted in MicroStrategy’s massive purchase of $425 million worth of BTC. The platform pledged to help other large firms diversify their portfolios with bitcoin in the future as well.

Coinbase Involved In MicroStrategy’s BTC Purchase

The NASDAQ-listed business intelligence firm made the news on two occasions earlier this year as it announced the total purchase of 38,250 bitcoins. At the time, this sizeable amount equaled about $425 million.

However, the entity that helped broker the deal remained unknown until today. The San Francisco-based crypto exchange Coinbase announced that it was “selected as the primary execution partner for MicroStrategy’s $425 million purchase of Bitcoin.”

The community speculated on how such a considerable amount didn’t move the markets as the price of BTC remained relatively still back then. Coinbase explained that this was the company’s intention in the first place:

“Using our advanced execution capabilities, leading crypto prime brokerage platform, and OTC desk, we were able to buy a significant amount of bitcoin on behalf of MicroStrategy and did so without moving the market.”

Furthermore, the exchange noted that its system takes a single large order and breaks it into many small pieces that are executed across multiple trading venues. This type of smart order routing reduces the trade’s impact on the market and assists in disguising the overall trade size.

This also helped MicroStrategy to get a better price for its BTC purchase as Coinbase’s trading team “achieved an average execution price that was less than the price at which the buying started.” The post highlighted that this strategy ultimately saved 1% (or about $4.25 million) for the NASDAQ-listed company.

More Large Companies To Come?

MicroStrategy’s purchase kicked off a wave of large companies and prominent individual investors who expressed willingness to get in bitcoin as well.

Jack Dorsey’s Square followed with a $50 million BTC allocation. More recently, the Wall Street giant Guggenheim Partners filed a document with the SEC to purchase about $500 million worth of bitcoin for one of its funds.

Coinbase asserted that more firms will look to BTC to hedge or diversify their excess cash. Consequently, the large US exchange will “look forward to helping more corporate companies and institutions looking to diversify their capital allocation strategies with crypto.”

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Source: https://cryptopotato.com/coinbase-faciliated-microstrategys-425m-bitcoin-purchase-without-moving-the-market/

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