NYSE's Plans For 'Physical Delivery' Of Bitcoin Pave Way For Major Crypto Adoption

Authored by Marie Huillet via CoinTelegraph.com,

Analysts Dominic Chu and Bryan Kelly weighed in on recent reports that the New York Stock Exchange (NYSE) plans to offer Bitcoin (BTC) swap contracts, on CNBC Tuesday, May 8. Both Chu and Kelly argued that the fact that these contracts would be settled with the delivery of BTC itself is an important factor in Bitcoin’s mainstream adoption.

Both commentators were unanimous in considering that the plans of NYSE’s parent company Intercontinental Exchange (ICE) - news of which comes from “multiple reports citing sources familiar,” if true, could be of momentous consequence for the future of crypto.

image courtesy of CoinTelegraph

Whereas the futures contracts currently being offered on CME and CBOE are ultimately settled in fiat, Kelly emphasized that ICE’s suggestion that crypto swap contracts will be settled in BTC is a significant milestone that could herald major Wall Street crypto adoption. Kelly explained:

“[The] physical delivery of Bitcoin…means that ICE has a custody solution. That has been the big hurdle. How do you hold onto these assets? These are generally bearer instruments…and so you have to have a third-party custody person. That’s the big deal, they have come up with a custody solution for institutional holders.”

Cold storage custodian solutions are currently offered by small operators, and ICE has not confirmed whether it plans to build an in-house cold storage solution or to outsource it. Indeed, ICE has so far declined to comment on the reports at all.

Kelly said that if ICE can offer a custodian solution that is SEC-qualified and fits with the SEC’s compliance requirements, this would “open the floodgates” to institutional capital, resulting in some “big price moves” in the crypto markets.

A custody solution would also open the door for pensions and endowments, he said, leading him to conclude that cryptocurrencies now “look to be becoming an emergent asset class…most obviously at the expense of gold.”

Kelly noted that the markets have been slow to respond, suggesting that many are underestimating the significance of the news.

ICE’s plans come just days after investment banking giant Goldman Sachs announced it will be opening a crypto trading desk “within weeks,” as well as recently hiring a cryptocurrency trader as vice president of their digital asset markets. This week, BTC stopped short of breaking the $10,000 resistance, trading around $8.600 currently...

 

However, Goldman Sachs is not quite so positive, suggesting Bitcoin faces considerable downside...

Bitcoin held another ABC corrective target for resistance at 9,719-9,771

The area includes 61.8% retrace of the decline from February as well as an equality target off the Apr. 6th low. Holding below implies that the recent rise is corrective/counter-trend. It also re-instates the impulsive nature of the sell-off in February/March.

This ultimately exposes downside risks to new lows, possibly as far as 4,485; another equality target from Feb. 20th. The next important support is down at 6,514-5,605 where there have been three separate lows since November.

View: Tested/held 9,719-9,771. First in focus 6,514-5,605. Scope to retrace as much as 4,485.

Comments

lookslikecraptome Bitchface-KILLAH Sun, 05/13/2018 - 20:18 Permalink

You know what I like about articles like this? Are the charts that get presented. I CAN MARK UP A CHART AND MAKE IT LOOK JUST LIKE THE ONES THE GUYS AT ANY TRADING DESK DO. And based on any theory, can hit the same, retracement, support and resistance lines. On a five minute chart, a tick chart ( a tad more tricky as far as predictability of charting goes), an hourly,  a daily, a weekly, a yearly, ad nauseum.  Does TA and charting like this work?   NOPE, if it did every one would use the same system/ charting PREDICTABILITY, And they do work for some people, we would all be rich as FUCK.  

Trade station,  Ninja trader and 100 other vendors will set up with a thousand TA indicators.  You can back test that shit forever, and find that very few of them work. 

As far as the Bitch goes, I find charting to be even more specious in crypto land. They are incredibly thin markets, and most of the trading is done by whales.  As far as TA in cryptoland, is there even enough data to back test? Ten years is not a lot of data to test upon.  I no it depends upon ur frame of reference.  The thing I love about TA is the standard disclaimer: "Who knows if this shit will work in the future? Good luck chump. "

In reply to by Bitchface-KILLAH

sessinpo Bitchface-KILLAH Mon, 05/14/2018 - 02:01 Permalink

Bitchface-KILLAH Exponere Mendaces Sun, 05/13/2018 - 22:29 Permalink

BTC can't handle a fraction of the throughput of the BCH network.  You are a liar.  How is your "lightning" network going?  Does it actually exist now?  Well that beta testing only took 2 or 3 years hey?  Congratulations!

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Wow, what a totally ignorant comment.

First off, BCH only does about about 1/10 to maybe 1/4 of the daily transactions btc does. Sometimes Dogecoin beats bch. You need to get a grip on reality.

I'm all for holding some bch but get real and look at the facts.

https://bitinfocharts.com/

In reply to by Bitchface-KILLAH

Bitchface-KILLAH tmosley Sun, 05/13/2018 - 23:12 Permalink

I gave those idiots at Core years to figure their shit out, far longer than I should have.  Got sick of watching them get further and further behind every other crypto out there.  Eventually, I could no longer chalk it up to mere stupidity and a poor grasp on economics... Bitcoin Core Dev acts in a malicious fashion to harm Bitcoin adoption and development.

In reply to by tmosley

sessinpo Bitchface-KILLAH Mon, 05/14/2018 - 02:11 Permalink

Bitchface-KILLAH tmosley Sun, 05/13/2018 - 23:12 Permalink

I gave those idiots at Core years to figure their shit out, far longer than I should have.  Got sick of watching them get further and further behind every other crypto out there.  Eventually, I could no longer chalk it up to mere stupidity and a poor grasp on economics... Bitcoin Core Dev acts in a malicious fashion to harm Bitcoin adoption and development.

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While the Core dev are figuring things out, bch dev aren't figuring anything out. lol Let's see, let's increase block size even though we can't fill the blocks we have now. lol. That's genius, real development there. No one else can possibly think or do that. That's real innovation. What a joke! lol

Oh yea, there were other forks that included larger block sizes. I guess that bch innovation wasn't so innovative after all.

Get some bch, It is good and I have some. But let me tell you the way it is.

There will be several currencies. Btc won't be a currency for the population for daily transactions. That is pretty clear. It will settle transactions for larger institutions.

There will be several coins that will handle daily transactions for the population. bch will be one of them so it's good to have. However, bch does not have a solution to handle transactions to rival visa/mastercard. So there will be at least one or two more options. I'll let you figure out what those will be. Can't give you everything.

In reply to by Bitchface-KILLAH

FUDruckers Bitchface-KILLAH Mon, 05/14/2018 - 06:18 Permalink

Bitcoin cash has nothing to day with the real bitcoin.

Bitcoin cash has nothing to day with the real bitcoin.

Bitcoin cash has nothing to day with the real bitcoin.

Bitcoin cash has nothing to day with the real bitcoin.

Bitcoin cash has nothing to day with the real bitcoin.

Bitcoin cash has nothing to day with the real bitcoin.

Bitcoin cash has nothing to day with the real bitcoin.

In reply to by Bitchface-KILLAH

ReasonForLife bIlluminati Sun, 05/13/2018 - 20:40 Permalink

People always resist and are afraid of monumental change in their lifes, whether it's financial system, political, etc. you will always find a large group of people fighting it tooth and nail, while progress rides right over them and keeps going.  History is filled with such lessons.

Blockchain-based, decentralized and trustless technology is here to stay and it is the future of finance as it allows for nearly fee-less transaction of unlimited amounts of money anywhere in the world where there is internet 24/7/365 in a matter of seconds.

What cryptocurrency is doing for finance/money is what the internet did for information freedom.   This is beyond monumental, this is the thing societies rise or fall on.  They rise if they excel in the tech, they get left behind if they are too slow to adopt it, as other countries overtake them.  This is what the battle is on for right now.  Just like space race, weapons race, etc.  now it's the crypto race for which country will dominate in the tech.

In reply to by bIlluminati

ReasonForLife lester1 Sun, 05/13/2018 - 22:24 Permalink

Your very words in your reply prove my point of how most people are scared of change and project their own fear and uncertainly onto the very things they fear.

I am not speaking about pump and dump schemes, but new technological innovations that have real-use cases.  Check your own mind, as you appear to have trouble comprehending the main point of my comment, yet you call me clueless.   Pump and Dump schemes can exist in any market, that doesn't negate the fact that there are real benefits to new technologies.   The .com bubble was pump and dump as well, does this mean the internet has no value?

In reply to by lester1

stefan-coast bIlluminati Sun, 05/13/2018 - 21:09 Permalink

It is not a great investment, but its NOT "gone"  go to craigslist, even they have an option for bitcoin...I know all the ups and downs, but some here have an agenda and hate it...thats ok, but look at reality also...it seems here to stay...will it go up in price?  is it a good investment for your future?  probably not, but it is not going away, and probably will never go to zero...

In reply to by bIlluminati

Boing_Snap loveyajimbo Sun, 05/13/2018 - 20:08 Permalink

It isn't the coins themselves that matter, if you control the exchanges and miners, and the method of mining you control the bitCon.

DCG is a private company owned by the same criminal bankers that own the stock exchanges and create the old fiat currency now.

https://dcg.co/who-we-are/

Understand the above and you see the same Con taking place in digital land. The difference is that they can shut off your digital access at will, and decent is no longer a problem, seeing as you can't eat at that point.

https://www.ccn.com/bitcoin-core-dev-dcg-segwit-activate-soon/

Running through the extensive list of failures that is digital currencies is a waste of time, if you're still in them now, you'll still be in them when they splash down.

 

In reply to by loveyajimbo

lookslikecraptome Boing_Snap Sun, 05/13/2018 - 20:35 Permalink

I truly appreciate your analysis. I think you are spot on and have some data to back it up. It is open to interpretation as is most data. But I do agree with you. Except for the coin miners, which I do appreciate, there is very little thought out stuff presented by the coiners as to y it will take off. The miners are a far more intelligent bunch than the BTFD crowd. 

In reply to by Boing_Snap