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Toroso Asset Management develops unique, actively managed ETFs, and its four funds are up an average of 26% in 2020. Cofounder, fund manager, and Chief Investment Officer Michael Venuto spoke to Business Insider about the firm's unique approach to market anomalies and what he's watching now. He also shared his thoughts on investing as the pandemic and economic recovery continue to play out. Click here to sign up for our weekly newsletter Investing Insider. Visit Business Insider's homepage for more stories. Michael Venuto was living through any fund manager's worst nightmare: One of his biggest investments was plunging and nobody could figure out why. The investment was Newmont Mining, a gold producer. And even when the price of gold trended up, the stock kept going down, losing about 20% of its value between September 2004 and May 2005.  Eventually he landed on a key reason for the sell-off. "State Street had launched GLD, the first-ever direct exposure to gold," Venuto told Business Insider in an exclusive interview. "That was an epiphany moment where the firm recognized that, regardless of whether or not we ever got into the ETF business, the world of ETFs was going to change investing. " If experience is the best teacher, painful experiences might be the best of the best. Venuto and his employers started investing in ETF startups. Ultimately he struck out on his own and co-founded Toroso Asset Management in 2012. He's the firm's chief investment officer and manages one of its four funds. "Toroso's original thesis was somebody needs to look at this ETF market and do security selection, go beyond what the name and expense ratio says, and really figure out what's in these things and where the anomalies are, where the mistakes are, how to make them better," he said. That idea of anomalies — incredibly important numbers or market errors — is at the center of a lot of what Toroso does. The firm's ATAC Rotation Fund, for example, looks at a single indicator tracking the performance of utility stocks and Treasury bonds, and either goes 100% risk-on or 100% risk-off depending on what it says. That fund, managed by Michael Gayed, is up 60% this year. Cumulatively, Toroso's funds posted an average return of 26% in 2020, as of August 14. That includes Venuto's Amplify Transformational Data Sharing ETF, which invests in blockchain-themed companies, which is up 28%. From Venuto's point of view, the biggest investing anomaly in 2020 is an obvious one: The fact that the stock market and the economy have gone in dramatically different directions. But the most important one for him, and for investors, is a figure with a Halloween-themed name. "This year we really focused on a new anomaly related to COVID that we call the zombie score," he said. The Toroso team created that measurement based on the vulnerability of different industries to the continuing effects of the pandemic. The 25 most threatened industries, like airlines and mall operators, get high scores. The firm is steering clear of ETFs with high zombie scores, and Venuto warns investors that even if those companies survive, they might be very unhappy with the outcome. Like investors in many troubled companies during the 2008-09 Financial Crisis, they might end up watching their investments lose all their value. "The Robinhood crew, the do-it-yourself investors that have poured money into jets or airline stocks and have made big gains," he said. "Taxpayers are unlikely to be okay with bailing out the shareholders ... The shareholder is probably the last one holding the bag, and it didn't work out great for the shareholders of Lehman, GM, Ford, CIT Group, or any of those." He advises investors to be wary about owning too many small- and mid-size company stocks, as those companies in general have higher zombie scores. He also cautions about "over-diversifying" and says it's a better idea to bet on best- and worst-case scenarios for the economy and the themes that matter the most. "The way to go right now is to move towards active management, towards barbell-ing," he said. "Not over diversifying, but owning both the things that can do well in the good scenario and the things that can do well in the bad scenario and leaving that middle out." He says that would include themes like telemedicine, work from home, e-sports, and the blockchain in a best-case recovery scenario, and gold and Treasuries if things go badly. Read more: Bank of America shares a simple stock-trading strategy with a track record of repeatedly beating the market — including the 20 companies that best exploit it now A Wall Street expert breaks down his 5-part strategy that could quadruple returns for investors buying the market's smallest companies 3 ultra-growth fund managers who are crushing the market during a chaotic year told us how they're doing it — including their biggest themes and top picks for the future SEE ALSO: Joe Biden officially accepts the Democratic nomination this week. RBC says buy these 47 stocks spanning every industry that are poised to crush the market if he wins in a wave election. Join the conversation about this story » NOW WATCH: Why babies can't eat honey […]

Bitcoin rose above $12,000 on Monday as investors continued to hunt for inflation hedges amid near-zero rates. The world's most popular cryptocurrency has rallied more than 200% from its March low as industry giants and retail investors alike scoop up the token. Much of the rally has been fueled by tanking real yields. With Treasurys offering little return, investors have turned to hedges including gold and bitcoin to protect against rising inflation. Watch bitcoin trade live here. Bitcoin surged above $12,000 on Monday and held the level in early Tuesday as investors continued to seek yield in unorthodox assets. The world's most popular cryptocurrency traded as high as $12,476.7o over the past 24 hours, hitting its highest level since July 2019. Bitcoin has rallied past several key psychological thresholds in August after choppy trading throughout the summer. The upswing comes as the stock market closes in on record highs and investors brace for a potential rotation into safe-haven assets. The digital currency is also boosted by tumbling real yields. The Fed's plan to hold rates near zero for the foreseeable future is driving real Treasury yields below zero and forcing investors to find healthy returns elsewhere. Some have piled into gold, as low yields erase the opportunity cost of holding the non-yielding metal. Read more: Inside Eagle Investors, the 20,000-member online community run by 2 Indiana University students that's helping spearhead the Gen Z day-trading revolution Others are experimenting with cryptocurrencies, anticipating their insulation from inflation will lift prices higher. Industry giants including Michael Novogratz and Paul Tudor Jones recently revealed growing stakes in bitcoin, with the former telling Bloomberg TV last week that roughly a quarter of his net worth is linked to the coin. Bitcoin's latest advance comes on the heels of a strong year-to-date performance. The token is up about 70% in 2020 so far and has tripled from its March low. Still, bitcoin needs to soar another 62% to retake its 2017 record of nearly $20,000 per coin. Read more: MORGAN STANLEY: A historic shift is taking place under the market's surface. Here are 5 reasons why it will redefine the investing landscape as we know it. The fresh interest from institutional names could drive the interest needed to place bitcoin near its previous peak. Young, risk-loving investors have been propping up cryptocurrency for years, Novogratz said in a recent interview with "The Tom Ferris Show" podcast. Once big-money players enter the fray, more investors will take bitcoin and its uses beyond hedge-positions seriously, he added. "Bitcoin has been a young man's game. It's been Gen Z and the millennials, it's been bought on Coinbase app or Square or Robinhood," Novogratz said. "Those things aren't going away. Quite frankly, there are going to be more of them." Bitcoin traded at $12,197.50 as of 8:45 a.m. ET Tuesday. Now read more markets coverage from Markets Insider and Business Insider: Small businesses only accounted for 18% of pandemic-driven job losses, Goldman Sachs says Robinhood closes $200 million Series G funding round at valuation of $11.2 billion Michael Venuto's firm provides unique ETFs that have returned as much as 60% for investors this year. He breaks down his process — and shares the 'anomaly' investors need to watch today. Join the conversation about this story » NOW WATCH: How the suicide hotline saved my lif […]

Michael Novogratz told Bloomberg the price of gold could certainly get up to $3,000.  The Galaxy Digital CEO and co-founder said the next Fed meeting could be the "juice that accelerates gold and bitcoin." Novogratz is a bitcoin investor and told Bloomberg all cryptos besides bitcoin are "still in the venture stage." He said investors should be careful in the space.  Watch gold trade on Markets Insider here. Watch bitcoin trade on Markets Insider here. Michael Novogratz told Bloomberg TV on Friday that the price of gold could reach up to $3,000 by the end of the year. The Galaxy Digital CEO and co-founder emphasized that predicting a new high for gold is difficult because it's already reached its record, and "once you take out old highs in markets it's really hard to figure out where they could end." But when asked for a number, he said, "Could it be $2,500 to $3,000? It certainly could be." Gold opened at $1,951.90 on Friday after hitting a record $2,000 last week.  Novogratz said that he thinks the Fed will be more dovish in its September meeting, and its actions could be "the juice that accelerates gold and bitcoin."  The investor is known as a bitcoin bull and has said he has about 25% of his wealth in bitcoin. He told CNBC in July that gold was "more of a 5% position" for him. In the Bloomberg interview, he said he likes bitcoin better than gold because it's "harder to buy," and added that bitcoin has a $220 billion market capitalization, while gold is over $10 trillion. Bitcoin's catch-up game is one reason supporting his gold prediction. "Bitcoin's got a long way to go to catch gold in just adoption. That's why I still think gold goes higher," Novogratz said.  Read more: Top Wall Street analysts say these are the 7 cannabis stocks to bet on now that will benefit if Biden defeats Trump in November Novogratz added that Ethereum, the second-largest cryptocurrency platform, has "been on tear recently." But crypto investors should be "very careful" with it. When discussing crypto investing, he said: "We're all still in the venture stage in everything but bitcoin." Join the conversation about this story » NOW WATCH: Why hurricanes hardly ever hit Euro […]

Michael Novogratz, a former hedge fund manager and CEO of Galaxy Digital, thinks Bitcoin will "end the year closer to $20,000, the old highs." After making a sharp-witted comment about the cryptocurrency at a conference years ago, and due to his high-profile, Novogratz was forced to become educated on the matter due to the amount of inquiries he was receiving. He relays 4 reasons why the cryptocurrency could head back to its old highs in 2020, and says he hasn't "seen things line up as well in a long time." Click here to sign up for our weekly newsletter Investing Insider. Click here for more premium stories. "I'm really bullish." That's what Michael Novogratz, a former hedge fund manager and CEO of Galaxy Digital, said on "The Tim Ferriss Show" podcast (recorded May 18, 2020) when asked about Bitcoin.  "I was the first institutional-grade investor that started talking about it, for better or worse, back when it was trading around a hundred," he said. "I made some witty comments about Bitcoin and the next day I was on the cover of the Financial Times." For context, the last time Bitcoin traded around $100 was in 2013. Since then, Bitcoin has been front-row center on a rollercoaster of volatility, trading anywhere from upwards of $19,000 in 2017, to lower than $4,000 in 2019. Today, Bitcoin is churning north of $11,400.  At the time of his comments, Novogratz was still a cryptocurrency neophyte. He didn't have a firm grasp on the inner workings of the asset. "And at that point I didn't really understand how it worked that much," he said. "I understood that it was the thing that was going to go higher, but partly by being forced to publicly speak about it, I got asked to speak at the Oxford Union and I really had to study and try to understand how the damned thing worked." He continued: "And so I became kind of an unofficial spokesperson, or one of the unofficial spokespersons, for it." At Galaxy Digital, Novogratz oversees a diversified array of digital assets that currently tops $350 million in assets under management. And even though he clearly has high hopes for the cryptocurrency's future, he's quick to note that its proliferation isn't a sure thing.  "And listen, I'm always careful when I say 'really' because these things are recorded and you come back later and people are like, 'damn, that guy was stupid,'" he said. "It doesn't work. And so you're cautious to be that bullish publicly, but I haven't seen things line up as well in a long time." Against that backdrop, Novogratz relays four reasons he thinks Bitcoin will "end the year closer to $20,000, the old highs." All quotes are attributable to Novogratz. 1. Store of value Novogratz notes that Paul Tudor Jones, the billionaire investor and founder of Tudor Investment Corp. recently entered the cryptocurrency space and helped increase the legitimacy surrounding the once taboo subject. "You might not put it in your portfolio, but there's no shame in being involved with the space anymore," Novogratz said. "And that's a big deal because for stores of value, and Bitcoin is really becoming a store of value. They only become stores of value when people believe they are." He added: "And so it's a belief system. Bitcoin is not just the code. It's really the social construct. I say it's this, you say it's this, therefore it is this."  2. Adoption Novogratz notes that big-name investment managers, CEOs, and entrepreneurs — Abby Johnson, Jack Dorsey, and Wences Casares, to name a few — are either buying the asset or getting their respective business practices aligned with it. In doing so, it's helping to bring Bitcoin to the forefront of investor attention. "Paul's the first kind of legend in the hedge fund space that didn't just buy it personally, but he bought it in his fund," he said. "And so it opens up a whole new avenue of potential participants in that community, which I think is really, really significant." 3. Supply constraints "Once these store values start building momentum, there's not a lot of supply," he said. "We've had this thing called the 'halvening', where there's half the supply being mined than there was even a week ago." 4. Increasing avenues of access "Bitcoin has been a young man's game. It's been Gen Z and the millennials, it's been bought on Coinbase app or Square or Robinhood. Those things aren't going away. Quite frankly, there are going to be more of them," he said. "Facebook's Calibra is going to allow you buy Bitcoin. And that'll be 2,000, 3,000 people using that wallet. And so there are so many more avenues of access. I always tell people if it was easy to buy, the price would be far higher already. Bitcoin's been hard to buy and a year from now, it's going to be that much easier."SEE ALSO: Billionaire investor Paul Tudor Jones famously earned a 4-year streak of triple-digit returns. Here are the 7 trading rules he lives by after suffering a devastating loss. Join the conversation about this story » NOW WATCH: Why babies can't eat honey […]

On Monday, venture firm Electric Capital announced that it had raised a $110 million fund focused on crypto technologies. The firm plans to invest in cryptocurrencies, blockchain-based businesses, fintech companies, and marketplaces. Avichal Garg and Curtis Spencer, Electric Capital's co-founders, said that their investments could reshape legacy banks, emerging markets, and even social networks.  Visit Business Insider's homepage for more stories. In 2010, when Bitcoin seemed like just another tech fad or pipe dream, Avichal Garg and Curtis Spencer started mining for the cryptocurrency as a hobby. Garg and Spencer spent those early crypto days working together at Spool, the software startup that they co-founded and that was acquired by Facebook in 2012.  But even as the traditional software sphere still beckoned, the two never strayed too far from the crypto world. By the time 2017 came around, Garg and Spencer were angel investors in a handful of cryptocurrencies and blockchain startups. By 2018, they had formalized their investments by launching Electric Capital, an early-stage venture firm that invests in cryptocurrencies, blockchains, marketplaces, and fintech startups, as well as non-crypto startups, like Cruise and Notion.  On Monday, Electric Capital announced that it had just raised $110 million for its second fund, making the firm one of the few (along with Andreessen Horowitz) to have a fund earmarked for cryptocurrencies and startups working with blockchain technology. They plan to invest in cryptocurrencies like Bitcoin, as well as blockchain-based businesses, fintech companies, and marketplaces. Celo, NEAR Protocol, and Bitwise are among the firm's recent investments.  Garg and Spencer said that they couldn't reveal the names of their investors, but they said the new fund has garnered significant support from university endowments and nonprofits. As legacy banks look to revamp their traditional systems, VCs are placing bets on which fintech startups will help to usher in a new era of payments and banking. In a Zoom interview with Business Insider, Garg and Spencer said they hope that their investments will help reshape the ways in which money is stored and exchanged. Legacy banks like JP Morgan are thinking about rebuilding their 50-year-old systems with the 2020's hottest technology, Garg said. Spencer said he believes that the use of cryptocurrencies and blockchain technology could make it easier to send money to emerging markets, including countries like Nigeria and Mexico.  People should also expect to see the rise of companies like CryptoKitties, a blockchain game that raised $12 million from VC firms like Andreessen Horowitz in 2018, Garg and Spencer said.  Cryptocurrencies and blockchain technology have grabbed the attention of big tech companies, Spencer added. Currently, Garg and Spencers' former employer, Facebook, is attempting to obtain regulatory approval for Libra, a blockchain digital currency and network that's still in its primitive stages, and has faced significant pushback from regulators and lawmakers, as The Informaton reported.  While Garg and Spencer say they believe cryptocurrencies and blockchain technologies will reshape fintech and marketplaces, they also said that the technology could impact other sectors.  "Eventually, it will get to things like social media," Garg added.  Garg and Spencer said that they are optimistic about the future of cryptocurrencies and blockchains, but the jury's still out on how different countries plan to regulate digital currencies.  In recent years, the federal government has been stepping up its monitoring of cryptocurrencies and initial coin offerings. A number of federal agencies, including the SEC, FTC, and IRS, are in charge of regulating blockchains and cryptocurrencies. The federal government has allowed individual states to introduce their own blockchain-related legislation.  Some countries, including China, Russia, and Colombia, have banned Bitcoin and other cryptocurrencies, and India is reportedly considering a ban on cryptocurrencies as well.SEE ALSO: A former Apple TV designer built a livestreaming startup to challenge Twitch, and he's betting the key to winning will be live rap battles SEE ALSO: The latest class of successful young fintech investors reveals how to land a job in the notoriously exclusive field Join the conversation about this story » NOW WATCH: What happens to animals during wildfires […]

Bitcoin's latest upswing suggests the cryptocurrency on the verge of a new uptrend, Ari Wald, head of technical analysis at Oppenheimer, said Monday. The digital token rallied to its highest level in nearly a year in late Monday trading and held the $11,000 level into Tuesday morning. While gold is likely the most popular hedge bet for those expecting inflation to rise, bitcoin "isn't as extended," Wald said on CNBC. The coin is slowly reversing a years-long downtrend and is displaying "the type of action" a crypto bull would like to see, the analyst added. Watch bitcoin trade live here. Bitcoin's long-term trendline suggests it has plenty of room to run, Ari Wald, head of technical analysis at Oppenheimer, said Monday. The world's most popular cryptocurrency soared to its highest level in nearly a year late Monday evening and stayed above $11,000 per coin into Tuesday morning as investors continued rotations to hedge plays. Gold, another alternative asset to soar through recent sessions, is a good way to position for the Federal Reserve's unprecedented monetary easing, Wald said. Yet major cryptocurrencies could serve as a more tactical bet against inflation and low yields, he noted. "I think it's worthwhile to highlight bitcoin instead, which isn't as extended," Wald said on CNBC's "Trading Nation," adding that the token's volatility makes it "tough" to shrink trading losses and maintain flexibility for long-term strategies. Read more: 'Castles built on sand': Famed economist David Rosenberg says investors are being too reckless as stocks rally — and that a vicious long-term bear market is far from over Getting in early could benefit bitcoin bulls for years to come, Wald noted. The coin's price is steadily reversing a downtrend that began after reaching its peak in 2017, and bitcoin's latest swings point to plenty of upside to come, he added. "If you are a long-term holder, this is the type of action you'd like to see," the analyst said. Bitcoin traded at $10,992.30 per coin as of 4:15 p.m. ET, up 52% year-to-date. Now read more markets coverage from Markets Insider and Business Insider: Bernstein downgrades Tesla and says the stock will tank 42% from its 'mind-boggling' valuation Stock investors could be 'delusional' if prices continue to rise faster than earnings forecasts, Ed Yardeni says An expert shares how to get started in real-estate investing and bring in passive income Join the conversation about this story » NOW WATCH: Why it's okay to eat the brown part of an avocado […]

Bitcoin crossed the $11,000 level and traded near its highest level in nearly a year on Tuesday amid US dollar weakness and a broad shift to alternative assets. The token leaped as high as $11,198.32 before paring gains and trading below $11,000 later in the day. Cryptocurrency advocates argue digital tokens including bitcoin can one day replace the dollar and currently serve as a strong hedge against inflation. Bitcoin's rally comes amid a similar upswing for gold prices. The precious metal reached a record high on Monday as investors bet on heightened inflation expectations. Watch bitcoin trade live here. Bitcoin crossed the $11,000 mark in early Tuesday trading as the US dollar tumbled and investors turned to alternative assets including gold. The cryptocurrency surged as high as $11,198.32 Tuesday before paring some gains and trading just below $11,000 per coin at 8 a.m. ET. Bitcoin is up roughly 52% year-to-date and about 23% since the start of July. The token spiked higher on Monday after crossing the $10,000 level for the first time since June. Prices leaped as high as $11,298.22 late Monday evening to hit their highest in nearly a year. Naeem Aslam, chief market analyst at AvaTrade, said the bounce "cleared a major psychological level that has been there for a long time," adding the next key resistance level for the digital coin is $15,000. Read more: GOLDMAN SACHS: Buy these 26 stocks now to crush the market as an 'overvalued' dollar continues to weaken in the months ahead The rally was helped by a growing argument among bitcoin bulls that the cryptocurrency can replace traditional stores of value. The dollar is down significantly year-to-date amid record levels of economic relief spending. Gold, on the other hand, settled near record highs on Tuesday as the dollar's weakness and heightened inflation expectations boosted the precious metal. Crypto fans have repeatedly touted bitcoin as a similar kind of hedging asset, as it isn't directly tied to inflation and interest rates. Other cryptocurrencies jumped early Tuesday before erasing gains and trading largely unchanged. Ethereum slipped after reaching its highest level in more than a year. Tether posted modest gains after its market cap crept above the $10 billion threshold. Bitcoin traded at $10,916.45 per coin as of 8:45 a.m. ET Tuesday. Now read more markets coverage from Markets Insider and Business Insider: Stocks now in 'the painful stage' before a more balanced bull market emerges, Morgan Stanley chief US equity strategist says Tech stock rally is far from repeating the 1990s dot-com bubble, SunTrust says A fund manager who's quadrupled investors' money since 2011 says he uses a famed 5-part psychological theory to shape his portfolio. Here are the stocks he bought for each stage. Join the conversation about this story » NOW WATCH: What it takes to become a backup dancer for Beyonc&eacut […]

Bitcoin has crossed $10,000 the first time since June as tensions between US and China increase.  China and US ordered tit-for-tat closures of consulates in both China and US last week.  Naeem Aslam of Avatrade, said: "We believe, the next resistance for the bitcoin price is 15K now." Nigel Green of deVere thinks bitcoin could also become a safe haven-asset in the way gold has if tensions do not recede between the world's biggest economies. Visit Business Insider's homepage for more stories. Bitcoin surged Monday and crossed the $10,000 mark the first time since June as tensions between US and China, showed no signs of receding. Bitcoin is trading around $10,283 as of 7:30 am. ET, up 3.5%. The last time the bellwether cryptocurrency closed above $10,000 was at the start of June at $10,194.  Naeem Aslam, chief market analyst at Avatrade, said: "The price has cleared a major psychological level that has been there for a long time. If the bitcoin price does pick up the momentum, nothing else will be able to match it as bitcoin is a different kind of beast." Read More: Jefferies is telling investors to buy these 13 cheap, under-the-radar stocks in order to bet on an economic recovery  He added: "We believe, the next resistance for the bitcoin price is 15K now. Traders are also paying attention to the Ethereum price that has cleared the 300 price." US-China tensions are increasing demand for bitcoin US-China tensions have resurfaced in recent months due to Draconian law on Hong Kong's autonomy and over who is responsible for the coronavirus outbreak. Tensions were further exacerbated between both countries after China ordered the closure of the US consulate in Chengdu following a similar decision by the US to close the Chinese consulate in Houston last week.  On Monday, American diplomatic staff departed their consulate in Chengdu, after a 72-hour deadline given to staff expired.  Read More: GOLDMAN SACHS: Stocks have never been more vulnerable to the failure of a few mega-companies — and the risks of a blunder are quickly piling up Nigel Green, chief executive of investment firm deVere, also said that bitcoin could eventually become a safe haven asset in the same way gold has become. The latter reached its highest level ever on Monday following weakness in the dollar, and the breakdown in US-China relations.  Green explained that he feels bitcoin is rising because investors want to avoid geopolitical risk in traditional assets.  Bitcoin is becoming the digital gold He said: "Bitcoin is currently realising its reputation as a form of digital gold. Up to now, gold has been known as the ultimate safe-haven asset, but bitcoin  — which shares its key characteristics of being a store of value and scarcity — could potentially knock gold from its long-held position in the future as the world becomes ever-more tech-driven. "Geopolitical issues, such as the US-China spat, will prompt many savvy investors to increase exposure to decentralized, non-sovereign, secure digital currencies, including bitcoin, to shield them from the turbulence taking place in traditional markets," Green added.  But Simon Peters, cryptoasset analyst at eToro cast doubt whether the breakdown in geopolitics is the main reason bitcoin has risen above $10,000.  He said: "One possible reason is the rising stablecoin market cap. For example, Tether (USDT) crossed the $10billion mark this month and USD Coin (USDC), Circle's stablecoin, is also at its highest level, having reached a market cap of over $1billion. Perhaps some of this liquidity has made its way into bitcoin." "I would imagine the 'Depth of Market' on exchange order books has been pretty low, given that over the last 5 months, more bitcoin has been taken off exchanges than put on. A big enough market order could have shifted the price significantly over the weekend," he added. Join the conversation about this story » NOW WATCH: What happens to animals during wildfires […]

Prospective Bitcoin ETF issuers face several SEC hurdles. Nate Geraci, the president of the ETF Store and an outspoken advocate for a Bitcoin product, told Business Insider about what it would take to clear these roadblocks. Click here to sign up for our weekly newsletter Investing Insider Visit Business Insider's homepage for more stories. It was in 2013 that Cameron and Tyler Winklevoss first tried to bring a Bitcoin exchange-traded fund (ETF) to market. Seven years later, and after many attempts from other issuers like Bitwise and VanEck SolidX, all have been stymied by the Securities and Exchange Commission (SEC). Nothing has come to fruition. Still, they will all keep trying. "We believe in and remain committed to the ETF," Cameron Winklevoss, president of Gemini, said in a statement Wednesday sent to Business Insider. "We understand the SEC's concerns and the need to get it right. With that said, while the approval process is pending, we've built our platform so that accessing bitcoin is simple and secure for retail and institutional investors alike." And they've got good reason to do so: some experts say it's only a matter of time now until a Bitcoin ETF is approved. Nate Geraci, the president of the ETF Store and an outspoken advocate for the allowance of a Bitcoin ETF product, is one of them. He told Business Insider on Monday that he thinks an ETF will make it to market in 2021 — and potentially before the end of the year. "My sense from talking to prospective Bitcoin ETF issuers is that they feel like the SEC is engaged on this issue and there is open dialogue going both ways, but I don't sense that the issuers feel like approval is imminent," Geraci said. "And if you look at some of the comments that have come from both the SEC and prospective ETF issuers, they have been less than encouraging recently. I wouldn't rule out approval at the end of this year. I think 2021 is looking more likely as we sit here today." One reason Geraci is optimistic is that demand for such a product is surging. He points to the massive influx of cash into the Grayscale Bitcoin Trust (GBTC) in recent months as an example. "If GBTC were an ETF, it would be in the top 10% of ETFs by assets with over $3.5 billion, and I think that proves the investment case," Geraci said. "I think it proves investor demand around a Bitcoin product. GBTC took in over $750 million just during the second quarter, which is remarkable." Hurdles a Bitcoin ETF would have to overcome But before a Bitcoin ETF might be realized, there are several hurdles prospective issuers of the product face.  The SEC has said it has concerns over two things: fraud, as they argue the price of Bitcoin can be manipulated on unregulated foreign markets; and surveillance, as they say don't have the ability to look into price manipulation. It may also be a matter of who is in charge. Current SEC Chairman Jay Clayton has made his skepticism toward a Bitcoin ETF known. He told CNBC in Sept. 2019 that although a prospective ETF was closer to meeting his criteria, there was work left to be done. One key question, he added, was how the regulator would know that prices are not being significantly manipulated. But critics of the SEC's stance on this, including Geraci, say assets like oil are manipulated by foreign entities like OPEC. Also, Bitcoin futures trading has already been approved by the Commodity Futures Trading Commission (CFTC). "If you look at some of the other exchange-traded products that exist, the markets don't seem that much more evolved in my opinion," Geraci said.  He added: "A good example would be BDRY. This is an ETF that owns freight forward futures contracts — and as a matter of fact VanEck and SolidX, in their argument to the SEC on approving their prospective Bitcoin ETF, pointed to BDRY as precedent for approving a Bitcoin ETF because they said 'look, the Bitcoin market is every bit as robust as the freight futures are'." Crypto advocates say nominating Hester Pierce, a commissioner at the SEC who has publicly criticised the SEC's opposition to a Bitcoin ETF, to the agency's top job would smooth the path for the creation of the financial product. "Outside of owning Bitcoin direct, I don't think there are a whole lot of good options" One reason Geraci advocates for a Bitcoin ETF is what he says is a current dearth of options. "Outside of owning Bitcoin direct, I don't think there are a whole lot of good options. They can invest in GBTC, but again that can trade at a premium...They could buy Bitcoin futures contracts, but I cannot recommend that most retail investors should be gambling in the futures market, but theoretically that would be another option. There is an ETF that owns GBTC — ARK Next Generation Internet ETF (ARKW), but that's a small percentage of the overall holding," he said. Convenience is another factor. In addition to having consolidated tax records and the ability to have investments in one brokerage, Geraci says a Bitcoin ETF would allow investors access to the crypto currency without having to store it and secure it. "The best example is gold and gold ETFs. Gold ETFs are highly popular. And if you look at performance of gold ETFs this year, they've already surpassed their annual record, and what that tells you is some investors don't want to own physical gold bars, they don't want store them, they don't want to insure them, they don't want to hassle with selling those physical gold bars if they want to move back to cash," Geraci said.  "And so what do they do? They look to a gold ETF for that convenience. That is a perfect corollary to Bitcoin."SEE ALSO: A $47 billion fund manager shares 3 trades she's making for huge upside as the economy recovers — including a play on the Tesla-led boom of electric vehicles Join the conversation about this story » NOW WATCH: Why some Hong Kong skyscrapers have gaping holes […]

Hackers may have tricked Twitter users into giving them more than $120,000 after taking over dozens of high-profile accounts in a colossal scam that rocked the platform Wednesday. The scam began after hackers hijacked the accounts of prominent people and companies including Barack Obama, Joe Biden, Jeff Bezos, Apple, Uber, Elon Musk, and Kanye West. They tweeted links to bitcoin addresses and told people they would match their donations, and hundreds of people appeared to send money — though it may be impossible to confirm whether the transactions were legitimate. Twitter eventually intervened by limiting some accounts' ability to post in an attempt to minimize the damage. Visit Business Insider's homepage for more stories. Hackers put Twitter through a whirlwind on Wednesday, hijacking dozens of accounts and potentially making off with more than $120,000 in the process. The hackers took over the accounts of a long list of high-profile individuals and companies, including: Barack Obama, Joe Biden, Jeff Bezos, Bill Gates, Elon Musk, Kanye West, Michael Bloomberg, Apple, Uber, and several major cryptocurrency exchanges. The compromised accounts then tweeted out messages saying they were "giving back" to their communities and would match any donations made to various scam cryptocurrency wallets. From there, hundreds of people appeared to take the bait — one wallet address posted widely received more than 350 transactions within a few hours. Business Insider identified at least three wallets mentioned in tweets by seemingly compromised accounts, but it's not clear that those were the only ones that received money. Additionally, not every transaction sent to those wallets is necessarily the result of people being duped by Wednesday's Twitter scam. Hackers often artificially pump up cryptocurrency accounts with money ahead of time to make them seem more legitimate, so the account balances may overestimate how much the scam yielded. Due to the anonymous nature of cryptocurrency, it will likely be difficult to determine how much money hackers ultimately made off with. Twitter eventually stepped in Wednesday afternoon in an effort to minimize the damage, tweeting that it was "aware of a security incident impacting accounts on Twitter" and "investigating and taking steps to fix it." Shortly afterward, many verified users — including some critical government and emergency services — reported that they were temporarily unable to tweet at all, and Twitter eventually followed with an update around 7:15 pm ET confirming that it had restricted some accounts' posting ability. We’re continuing to limit the ability to Tweet, reset your password, and some other account functionalities while we look into this. Thanks for your patience. — Twitter Support (@TwitterSupport) July 15, 2020  SEE ALSO: Law enforcement agencies are using a legal loophole to buy up personal data exposed by hackers Join the conversation about this story » NOW WATCH: Why some Hong Kong skyscrapers have gaping holes […]

Bill Gates, Elon Musk, and Jeff Bezos appear to have had their Twitter accounts hacked as part of a colossal cryptocurrency scam.  The tech moguls' accounts began sending tweets Wednesday afternoon offering to double bitcoin payments sent to their addresses. Tech companies like Apple and Uber also appeared to have their accounts hacked. It is unclear who is behind the hack or how it happened. The hack appeared to have been active for multiple hours after it started, with hackers continually gaining control of Musk's account. Twitter appeared to disable posting from verified accounts as it investigated the situation. "We are aware of a security incident impacting accounts on Twitter," the company wrote on Twitter. "We are investigating and taking steps to fix it. We will update everyone shortly." Visit Business Insider's homepage for more stories. Elon Musk, Bill Gates, and Jeff Bezos appeared to have been hacked as part of a widespread bitcoin-giveaway scam that took place over several hours on Wednesday afternoon. Musk posted multiple tweets containing what the posts claimed to be his bitcoin address, saying he was "feeling generous because of COVID-19." Gates' account sent a nearly identical tweet minutes later, followed by a post on Bezos' account. Musk's account followed up with another tweet saying, "You send $1,000, I send back $2,000!" The tweet added that would go on for the following 30 minutes. Bezos' account was compromised about 5 p.m. ET on Wednesday, with the exec tweeting that he would pay only "a maximum of $50,000,000" in bitcoin giveaways. The billionaire investor Warren Buffett's account was also hacked about 5:30 p.m. Wednesday, tweeting similarly to Musk that he would "send back $2,000" if a user sent $1,000. The tweets on all four accounts have each stayed up only a few minutes before being removed. Musk's, Gates', Bezos', and Buffett's accounts aren't the only ones that have been compromised. The hack appears to have targeted verified Twitter accounts, meaning a blue checkmark accompanies their profiles. Presumptive Democratic presidential nominee Joe Biden and former President Barack Obama were also victims of the hack. Several high-profile financial-services and crypto-exchange accounts, such as Cash App, Ripple, Binance, and Coinbase, were affected on Wednesday as well. According to CoinDesk, the attackers hacked the account of Changpeng Zhao, Binance's CEO, after he attempted to warn users of the scam. Several of the entities that were hacked, including CoinDesk, had multifactor authentication turned on, the site reported. Accounts for tech companies like Apple and Uber also appeared to have been hacked as part of the same bitcoin scam. Those tweets have since been deleted. A Twitter spokesperson told Business Insider the issue was "being looked into." In a tweet, the company reiterated that it was working to fix the problem.  We are aware of a security incident impacting accounts on Twitter. We are investigating and taking steps to fix it. We will update everyone shortly. — Twitter Support (@TwitterSupport) July 15, 2020 On Wednesday evening, Twitter said it had disabled some features, including tweeting, for some accounts while it investigated. Many verified accounts were unable to tweet during that time period. Representatives for Bezos and Musk did not immediately respond to requests for comment, but a Gates spokesperson confirmed to Business Insider that the tweet was not sent by Gates. Musk is frequently the target of cryptocurrency scams, with scammers impersonating his account in an attempt to get followers to send them digital currency. He tweeted in February about the ongoing issue, saying, "The crypto scam level on Twitter is reaching new levels. This is not cool."Join the conversation about this story » NOW WATCH: Why babies can't eat honey […]

Cryptocurrencies and their underlying technologies are becoming increasingly popular in the world of fine art. Contemporary artist Lincoln Townley and established auction house Christie's both now accept cryptocurrency as payment. Platforms like the Blockchain Art Exchange are also using distributed ledger technology to try and guarantee authenticity and protect ownership in the million-dollar market for digital art.  The pandemic has accelerated adoption: the Blockchain Art Exchange says it has seen month-on-month sales increase to 400% in June from 47% pre-pandemic. Visit Business Insider's homepage for more stories. In June, a Picasso painting was sold for cryptocurrency for the first time. Swiss luxury goods firm Idoneus acquired the painting "Danse du ventre devant homme impassible" (or "Belly dance before impassive man") for an undisclosed amount. Idoneus used its own "IDON" token to make the purchase, and said it is pioneering the use of its cryptocurrency for luxury purchases. The sale of a Picasso for cryptocurrency exemplifies its widening acceptance in the art world, estimated to be worth $64 billion globally in 2019 by Art Basel and UBS. Now, artists and collectors are not only trading in cryptocurrencies but using the blockchain tech that underpins them to try and determine authenticity and ownership. Reduce fraud in the art world One platform trying to digitally guarantee the provenance of art is the Blockchain Art Exchange. Launched by crypto enthusiast and art curator Sascha Bailey, son of the famous fashion photographer David Bailey, at the end of 2018, the platform allows artists to tokenize their digital artwork. The theory goes like this: By tokenizing the work using blockchain's distributed ledger technology, the transaction is permanently recorded on a shared database without any need for third parties to authenticate it. Once recorded, no one can alter the entries.  This means that collectors are not just trading a digital image, but a virtual certificate of authenticity, according to Bailey. The main appeal of this is that it helps to protect buyers against fraud. Experts estimate that around 20% of the paintings in major galleries could be fraudulent.  Another potential advantage is protection of the ownership of the artwork beyond the lifetime of the platform.  "Even if the gallery that you bought it from shuts down, then you still own the artwork," explained Bailey. "You wouldn't expect a gallery to come to your house and burn your artwork after they close down. Whereas, with digital artwork, until now, that's kind of what happened." This is currently only around a million-dollar industry, according to Bailey, but it has grown rapidly and he expects this to continue. The pandemic has accelerated adoption. The Blockchain Art Exchange saw month-on-month growth in sales of 400% in June, compared with only 47% pre-pandemic. Many people in the traditional world of fine art who were previously on the fence about the technology have now decided to buy in, according to Bailey. Contemporary artist Lincoln Townley is creating his own 'art coin' Contemporary artist Lincoln Townley, who is famous for his figurative portraits of Hollywood stars like Meryl Streep, also sees potential for blockchain in the art market.  "This hasn't even scraped the surface yet," Townley told Business Insider. "It's very, very deep waters that no one seems to be that happy to set sail in. Well, I certainly am. I look at myself as having the biggest ship out there." He added: "There's a very big market for people that are looking now into alternative investment, but asset-based. The ones that take on the cryptocurrency as an investment are, I wouldn't say they were gamblers as such, but they take on more risks." Townley first sold a painting for bitcoin in 2017 and is working on his own blockchain-encrypted 'art coin'. His entire new collection, Universe, can be bought using cryptocurrency. Embracing blockchain has been part of a wider digital transformation undergone by Townley's studio. He is about to launch a virtual reality gallery that will exhibit his works and studio online in their entirety, with information on the process of creating and curating his art. This way, he can cut out the middle man — the art agents and galleries — who take 50% commission on sales and are often responsible of upwards of 40 artists. When he wants to sell a piece, he sends the details to curated WhatsApp groups of his collectors. From the first message to receiving payment, it can take less than 24 hours.  According to Townley, this is all evidence that the traditional "stuffy" art world is in decline. He said: "The model doesn't work anymore; it's dead, it's over, it's gone." Opening it up to a new wave of investors who are interested in the tech as well as the art, is transforming the industry.  Crypto is highly risky, highly variable and not regulated As with much of the wider crypto space, the people advocating for blockchain-led change in the art world are often driven by an ideological affinity with the movement. For crypto artist Vesa Kivinen, his initial interest in blockchain came from a disillusionment with the handling of the global 2008 financial crisis and what he sees as the failure of the existing monetary system. Like most crypto adopters in the art world, he sees blockchain technology as a way of democratizing art.  "It's giving an opportunity to new voices to come into the industry that would otherwise have a very terrible time trying to get in with their expression into the legacy art world," said Kivinen. Bailey, Townley, and Kivinen are all aware of the risks of relying on a technology that is largely unregulated. With the market still very much in its infancy, it's a "bit like a gold rush of the Wild West," said Kivinen. As with cryptocurrencies, buyers using these platforms put themselves at risk of being scammed. "At the moment, everyone in the industry is incredibly well-behaved because everyone is early adopters," said Bailey. "I do think there is a potential for misuse as with all technology. But I think the pros for the people who want to use it legitimately outweigh the cons massively." Bailey says platforms like Blockchain Art Exchange are still accountable to customers. "We still hold the responsibility of what comes on [the platform]," he said. "Unlike with bitcoin, where there is no party to hold accountable." And traditional art institutions are buying in. In December 2018, British auction house Christie's auctioned the Barney A. Ebsworth Collection, the first art auction of its price level to be recorded on the blockchain. "Christie's leadership is reflected and supported by continued investment in digital platforms and initiatives that work for our clients," a Christie's spokesperson told Business Insider. "It is early days and this was a pilot blockchain project for this reason. We'll see where this might lead but this sale has been a great starting point for us all."Join the conversation about this story » NOW WATCH: Why hurricanes hardly ever hit Euro […]