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“The reports of my death have been greatly exaggerated.” – Mark Twain

I’m here to tell you that Crypto is alive and well!

As you may recall, TWDAF anticipated a Santa Rally. It happened. We were also excited last month to proudly announce that we were the only crypto fund to actually make money in 2018. But, after several months of continuing “accumulation mode,” today, we are in a holding pattern.

We are anticipating several catalysts over the next several months - here are a few:

1. US SEC / JAPAN FSA / or other country’s financial oversight agency to approve a crypto ETF.

2. Binance or other mainstream crypto wallet to launch an OTC Desk.

3. Congressional passage of crypto laws

4. Ethereum Constantinople Fork (delayed until February 27th, 2019)

a. Mentioned in my recent investor letter.

Bloomberg reported on January 7th that Japan is considering an ETF of crypto assets, and saying,

“The Financial Services Agency is currently gauging industry interest in ETFs tracking digital

currencies, according to a person familiar with the agency’s thinking who requested anonymity

discussing private plans”

TWDAF is anticipating the passage of an ETF somewhere in the world, soon.

Binance, is forging ahead and leaving Wall Street in the dust. Binance has decided that institutional

investors are clamoring for digital assets and they are launching a Crypto OTC Desk to meet the demand

– we couldn’t be more excited!

From the article:

“Binance, headed by Changpeng “CZ” Zhao, gave its clients a preliminary look at the inhouse

crypto-to-crypto OTC desk. Firm representatives claimed that the desk, which

supports the 80+ digital assets listed on Binance, would be available for accounts that

have completed “Level 2” KYC verification and that are looking to trade over 20 BTC

($71,000) worth of value at a time.”

We are also anticipating Congressional approval of several pieces of crypto legislation. On January 14th,

Rep. Darren Soto from FL 9th District introduced H.R. 528. It is currently sponsored by Rep. Tom Emmer

from MN 6th District.

From congress.gov:

To provide a safe harbor from licensing and registration for certain non-controlling

blockchain developers and providers of blockchain services.


In the meantime, Wyoming has already passed HB0070 and signed into legislation.

It reads, in part:

An ACT relating to securities; providing that a person who develops, sells or facilitates

the exchange of an open blockchain token is not subject to specified securities and

money transmission laws; providing specified verification authority to the secretary of

state and banking commissioner; making conforming amendments; and providing for

an effective date.

Mark Twain also said:

“Whenever you find yourself on the side of the majority, it is time to reflect.”

The crypto world is not in the majority, yet. But, when it is, we will reflect!

Steven Orr

Portfolio Manager

Third Wave Digital Asset Fund