Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Julius Wong who wrote (166747)	1/5/2021 8:43:53 AM
From: TobagoJack	Read Replies (1) \| Respond to of 219888

Re <<Bitcoin funds>> ... should a lot of funds be set up and hoard the coins dribbled out by the top-2% holders, then an industry must rise around the hoards else bitcoins less-useful In the meantime, Denmark enters parallel universe ... bloomberg.com Danes Get 20-Year 0% Mortgages Frances Schwartzkopff January 5, 2021, 6:23 PM GMT+8 The country with the longest history of negative central bank rates is offering homeowners 20-year loans at a fixed interest rate of zero. Customers at the Danish home-finance unit of Nordea Bank Abp can, as of Tuesday, get the mortgages, which will carry a lower coupon than benchmark U.S. 10-year Treasuries. Denmark stands out in a global context as the country to have lived with negative central bank rates longer than any other. Back in 2012, policy makers drove their main rate below zero to defend the krone’s peg to the euro. Since then, Danish homeowners have enjoyed continuous slides in borrowing costs. Read More: Ultra-Low Interest Rates Here to Stay: 2021 Central Bank Guide The once unthinkable notion of borrowing for two decades without paying interest comes as central bankers across the globe shy away from rate hikes. No major western central bank is likely to raise rates this year, according to Bloomberg’s quarterly review of monetary policy. As rates have continued to sink, other banks in Denmark -- home to the world’s biggest mortgage-backed covered-bond market -- are joining Nordea. Totalkredit, a unit of Denmark’s largest mortgage lender, Nykredit Realkredit A/S, says it will also offer 20-year loans at 0%. Danske Bank A/S, Denmark’s biggest bank, has signaled it may follow suit. Danish lenders first issued 20-year bonds with 0% coupons a few years ago, as investors looking for a safe place to park their money drove down rates. This is the first time since then that such a product has returned to the shelves. Demand is there, Lisa Bergmann, chief housing economist at Nordea Kredit, said in a note. The bond is likely to price close to a record high, she said. (Updates to show another mortgage bank will offer 0% 20-year loans) Before it's here, it's on the Bloomberg Terminal. LEARN MORE Sent from my iPad

To: Julius Wong who wrote (166747)	1/5/2021 1:20:47 PM
From: TobagoJack	Respond to of 219888

Re << More Bitcoin funds on the way. :-)>> ... because it would be for the greater good, doubtless, always :0) “By failing to allow a crypto ETF in the U.S., the SEC has left retail investors exposed to significant risks via wide mispricing in less-efficient vehicles, while giving an advantage to accredited investors such as wealthy individuals, hedge funds and private-equity firms,” Seyffart wrote in the BI note. bloomberg.com Crypto Fund’s Price Diverges From Holdings in Latest Mispricing A flood of new shares in the Grayscale Ethereum Trust is sending its price in the opposite direction of the cryptocurrency that it holds. The $3.5 billion fund, ticker ETHE, fell as much as 22% on Monday, despite Ether rallying almost 10%. The divergence was caused by a surge in the number of shares available to trade, with 116 million unleashed at the end of a lock-up period to join the 47 million that were already outstanding, according to Bloomberg Intelligence. The divergence highlights the counterintuitive moves common recently in trusts that hold crypto assets, which can whipsaw traders unfamiliar with the mechanisms. Grayscale’s Ethereum trust is the exchange-traded product that invests in the second-largest cryptocurrency. The New York-based company’s Bitcoin trust, ticker GBTC, is the largest crypto exchanged-traded product, with a market value of about $22 billion. Because securities regulators have not approved the exchange-traded fund format for cryptocurrencies, firms like Grayscale have released structures similar to a closed-end mutual fund, in which a fixed number of shares are issued. This can result in situations where they trade at discounts or premiums to the holdings, without a method for realigning the prices and making it difficult for investors to get out. Recently, the Bitwise 10 Crypto Index Fund saw its price rise 369% higher than the tokens it holds, as investors clamored for access to Bitcoin, which has rallied more than 300% in the past year. The fund, ticker BITW, currently has more than $500 million in assets. ETHE’s wave of new shares could help realign the fund’s price and its net asset value as the owners of 116 million split-adjusted shares coming to market sell their holdings, said James Seyffart, associate analyst for Bloomberg Intelligence. The premium has fallen from more than 200% on Dec. 22 to about 100% on Monday. Still, the inefficiencies in funds like ETHE and BITW have fueled calls for the U.S. Securities and Exchange Commission to approve a cryptocurrency ETF such as one that VanEck Associates Corp. filed for consideration last week. “By failing to allow a crypto ETF in the U.S., the SEC has left retail investors exposed to significant risks via wide mispricing in less-efficient vehicles, while giving an advantage to accredited investors such as wealthy individuals, hedge funds and private-equity firms,” Seyffart wrote in the BI note. — With assistance by Vildana Hajric, and Katherine Greifeld Before it's here, it's on the Bloomberg Terminal. LEARN MORE