Bitcoin
Front-Running the Institutions: Generating Bitcoin Alpha at Bitcoin 2024
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2 months agoon
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adminWith Bitcoin 2024 fast approaching – July 25-27 in Nashville, TN – three enterprising fund managers are competing to win $1 million in seed capital in the Bitcoin Alpha Competition powered by Samara Alpha Management in partnership with Bitcoin Magazine Pro.
In a recent podcast, Bitcoin Magazine sat down with the Bitcoin Alpha Competition judges to discuss the state of the Bitcoin market and how individual investors are leveraging their agility to front-run larger capital allocators as Bitcoin moves into the age of institutional adoption.
Patrick Lowry, judge of the Bitcoin Alpha Competition and CEO of Samara Asset Group, believes that while Spot ETFs have been a resounding success, trillions of dollars of institutional capital have yet to seize the opportunity in “the best form of money humanity has ever conceived” largely due to both regulatory and organizational burden. This has left smaller organizations – family offices and individual investors – to seize the opportunity.
Remarking upon his experience at Deutsche Digital, one of Europe’s first Bitcoin ETP issuers, Lowry noted, “I can attest how difficult it is to become an asset manager. It is unbelievably difficult to start and found your own asset management firm. I can’t even tell you how many times I’ve had my nose bloodied by an ungodly amount of regulators and compliance officers”.
“So, one of the things I’ve always wanted to do is empower new-age managers, emerging asset managers, in this asset class that I have strong belief in. [Helping] them in a way that they’re not going to have to go through the same hurdles that I went through six, seven years ago.”
Joining Lowry as judges on the judges panel are Adil Abdulali, CIO of Samara Alpha Management, and Jack Elliot, CTO of Animus Technologies and winner of the inaugural Bitcoin Alpha Competition.
Abdulali, bringing his decades of experience in the hedge fund space, noted that Bitcoin – in comparison to traditional assets – offers a unique risk profile with its heightened volatility. This volatility, especially to the upside, reduces the need for leverage to generate returns. Abdulali believes obviating the need for leverage gives capital allocators a unique option in comparison to fixed-income arbitrage, saying:
“Any time you have an unleveraged strategy that also generates high returns, and there is a drawdown… you don’t have to liquidate. You can stay in the trade for as long as it takes… any kind of leverage strategy, no matter how safe you think it is, eventually will be susceptible to [margin being called].” This ostensibly offers a new way of managing investment risk and another tool in the toolkit when searching for a return.
While Bitcoin has certainly benefited from improved sentiment around Donald Trump’s positive comments on the asset of late, even these types of moves can present risks for fund managers. Jack Elliot, a CTO focused on optimizing his firm Animus’ artificial intelligence-based strategies, noted the importance of being flexible and resilient to tail risks when it comes to modeling and trading the Bitcoin market.
“It’s just acknowledging reality… this is a space that is extremely young and is developing extremely quickly and there are going to be a number of different factors that change the way the market behaves. And some of those are going to be step-function changes… and I think there are going to be a number of those in the future… For us, it’s about staying on the horse… it’s a fun problem because [modeling the market] is intractable.”
On July 25th, Lowry, Abdulali and Elliot will select the winner of $1 million in seed capital to enable an enterprising fund manager to scale their fund strategy, selecting from the following three finalists:
- Boreal.xyz
- L1 Yield
- Hill Valley Capital
The Bitcoin Alpha Competition is one of four total tracks in the larger Pitch Day at Bitcoin 2024, where top founders and projects across Open Source, Mining + Energy and Layer 2 + Scaling will present their vision to leading venture capitalists and audience members.
Bitcoin Magazine is owned by BTC Inc, which also owns and operates the world’s largest Bitcoin conference, The Bitcoin Conference.
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Bitcoin
Bitcoin on the Cusp of Breakout Into Parabolic Phase, Says Crypto Analyst – Here’s the Timeline
Published
7 hours agoon
September 19, 2024By
adminA cryptocurrency analyst and trader is saying Bitcoin (BTC) is on the verge of entering a bullish phase over the coming weeks and months.
The analyst pseudonymously known as Rekt Capital tells his 88,100 YouTube subscribers that Bitcoin is “on the cusp of a breakout into the parabolic phase” after spending the past few months in a re-accumulation phase.
According to Rekt Capital, Bitcoin’s parabolic phase lasts a predictable amount of time in every cycle.
“So if we just see that 160 days after the halving is how long this re-accumulation phase lasts and we tend to see a bull market peak 550 days after the halving, then this parabolic phase should last 390 days or so, 400 days or so.
So it is roughly a year of parabolic upside that we see going into the bull market peak. And if that continues, indeed mid-September 2025, mid-October 2025 is when we would see a bull market peak occur for Bitcoin.”
Bitcoin is trading at $59,958 at time of writing, about 19% below the all-time high of approximately $73,800.
The pseudonymous analyst says that based on historical precedent, Bitcoin could hit a new all-time high over the coming days.
“…but we will reverse towards the upside at some point. And that point is coming quite soon because 160 days after halving is when we see a breakout to new highs.”
The Bitcoin halving occurred around 151 days ago on April 20th.
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Bitcoin
Hut 8 deepens Bitmain partnership with launch of new ASIC miner in 2025
Published
9 hours agoon
September 19, 2024By
adminBitcoin miner Hut 8 is expanding its partnership with Bitmain to introduce a new ASIC miner with direct liquid-to-chip cooling, set to deploy in Q2 2025.
Miami-headquartered crypto mining firm Hut 8 has expanded its partnership with Bitmain, announcing the upcoming launch of the U3S21EXPH, a next-generation ASIC miner capable of reaching up to 860 TH/s.
In a Sept. 19 press release, the company the miner, which is scheduled for deployment in Q2 2025, is the first mass-commercialized ASIC model to feature direct liquid-to-chip cooling in a U-form factor.
“We believe this model represents a more thoughtful approach to capturing the lucrative economics offered by next-generation machines, reducing upfront capital requirements while we continue to pursue growth initiatives in AI infrastructure.”
Asher Genoot, Hut8 chief executive officer
Under the hosting agreement, Hut 8 has the option to purchase all or a portion of the hosted miners in up to three tranches at a fixed price within six months of deployment. If Hut 8 exercises the option in full, the company’s self-mining hashrate is expected to increase from 5.6 EH/s to 20.6 EH/s, the press release reads.
The agreement is designed to minimize upfront capital expenditures and provide flexibility for future purchases, allowing Hut 8 to assess market conditions “before committing additional capital,” per the document.
The news comes after Hut 8 secured a $150 million investment in June from Coatue Management to accelerate its artificial intelligence infrastructure development. At the time, Hut 8 said the investment was made as “many traditional data center operators are failing to meet the surging demand for AI compute capacity due to power shortages.”
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Bitcoin
Louisiana State Government Now Accepts Bitcoin Lightning As Payment
Published
16 hours agoon
September 19, 2024By
adminLouisiana State Treasurer, John Fleming, M.D. has announced that the state government will now accept Bitcoin, Bitcoin Lightning Network, and USD Coin, as a valid form of payment for state services. The first cryptocurrency payment was made to the Louisiana Department of Wildlife and Fisheries today.
Dr. Fleming, described this initiative as a crucial step in modernizing government operations, stating, “In today’s digital age, government systems must evolve and embrace new technologies. By introducing cryptocurrency as a payment option, we’re not just innovating; we’re providing our citizens with flexibility and freedom in interacting with state services.”
The Bitcoin payments will be converted into U.S. dollars by Bead Pay, a provider specializing in cryptocurrency conversion for government transactions. “The State of Louisiana will not handle cryptocurrency,” clarified the announcement. This system aims to ensure that the state is protected from the volatility commonly associated with digital currencies. The conversion process mirrors that of credit or debit card payments, minimizing risks while offering secure, efficient transactions.
Louisiana’s shift to accepting Bitcoin is a part of a broader effort to integrate new technologies into public services. “I have been proud to author several bills related to digital assets and to Chair the State Treasurer’s task force in 2022,” said Louisiana State Representative Mark Wright. “I’m excited to see Louisiana further expanding its payment options under Treasurer Fleming. I look forward to working with him and others so that Louisiana will continue to be a leader in accepting digital payments.”
Louisiana expects the new payment options to reduce fraud and enhance overall transaction security. Residents can now use their private Bitcoin wallets to pay for services, while the state continues to receive payments in U.S. dollars.
The Louisiana Department of Wildlife and Fisheries was the first state agency to adopt the new payment system, with more departments expected to follow. “Offering our sportsmen more ways to interact with our department allows for us to enhance our customer service,” stated Secretary Madison Sheahan of the Louisiana Department of Wildlife and Fisheries. “This is another step towards our goal of creating a modern and professional organization that better serves the sportsmen of the state.”
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