Santa Claus is Coming to Town!

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November 8, 2018

We are extremely excited about the recent action in digital currency markets - and we are not alone.

Several prominent Wall Street analysts are calling for a Santa Rally. eToro Senior Market Analyst Mati Greenspan says we are in for a “Bitcoin Breakout” and that “It’s only a matter of time.” He says he sees three catalysts that suggest a “classic breakout pattern”. He added, “Rising transaction rates, steady daily trading volumes and the continuing growth of cryptocurrency related activities on Wall Street were adding to the excitement boiling underneath.”

Blockchain TPS (transactions per second) have climbed from 1.98 TPS in April to 4.8 TPS in October. That is a 40% increase in only a six-month span. CME Group noticed a 41% quarter over quarter increase in Bitcoin trading volume. Bloomberg’s DMI (directional movement index) also showed a bullish sentiment. Bitcoin’s 200 DMA (daily moving average) is sitting at $7,068. Greenspan says we need to see a breakout above that number to “truly put the bear trend in its rear-view mirror”.

SOURCE:  MarketWatch

SOURCE: MarketWatch

Grayscale Investments, the world’s largest manager of digital assets said in their quarterly report that institutional interest in cryptocurrencies grew and that “ratio of institutional investments coming into its products rose 70% in Q3”. We know this to be true from our own first-hand experience in establishing our institutional accounts. A representative at Coinbase told our staff recently,

“We are seeing unprecedented demand for institutional account opening and we are unsure when we will be able to respond to your inquiry.”

The time is ripe for a big push into the “crypto” space. Institutional Investors are gathering steam for the Polar Express. We’ve also noticed a swift movement into “altcoins” as investors are growing more savvy. Gone are the days of clunky crypto platforms - we have entered a new age with enhanced features and security.

ThirdWave Digital Assets is poised to enter this market and take advantage of the Santa Clause Crypt Rally. Bitcoin’s birthday was October 31, 2008 - and The Third Wave Digital Asset Fund was born on October 31, 2018. And we still aren’t too late to get ahead of this wave! Time to go from a “Spooky October” in capital markets, to “Decking the Halls” digital assets.

Steven Orr

Portfolio Manager