Author: Matt Thalman

Futures Market for Bitcoin Gives the Currency Staying Power, But May Hurt Price

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


Futures contracts in the crypto-currency Bitcoin (CME:BRTI) are expected to begin trading on the CBOE on Dec. 10, after getting the green light last week from regulators. That gives the CBOE a week of exclusivity. The exchange operator's larger Chicago rival the CME has said its contracts will begin trading Dec. 18.

When the futures are offered, more investors will be given access to the crypto-currency. Institutional investors for one will now be able to build a position in Bitcoin through the use of futures trading.

Furthermore, retail and small investors will have a much easier time gaining access to the fast-growing asset class through the use of futures, but certainly, if Bitcoin Exchange Traded Funds, which would use the futures, are approved. Instead of having to go through lesser-known crypto-currency exchanges and using credit cards to make purchases of Bitcoins, investors will simply be able to use their brokerage accounts and buy and sell futures contracts through the well respected and trustworthy CME.

More so, many believe that once the CME is offering Bitcoin futures, Exchange Traded Funds will be permitted to offer Bitcoin investments through the use of futures. Continue reading "Futures Market for Bitcoin Gives the Currency Staying Power, But May Hurt Price" →

Square Just Made It A Lot Easier To Own Bitcoin

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


A few weeks ago, Square’s Cash Application began allowing users to buy, sell, and hold the crypto-currency Bitcoin. Square’s Cash App, which is generally used to transfer money, has now unofficially endorsed the crypto-currency with what is essentially a trial offering to a limited number of Cash App customers. It should be noted that Square has allowed customers to use Bitcoin as a form of payment for nearly two years now, but customers needed to purchase their Bitcoin’s through other methods in the past.

In a statement, a Square spokesperson said, “We’re always listening to our customers, and we’ve found that they are interested in using the Cash App to buy Bitcoin. We’re exploring how Square can make this experience faster and easier, and have rolled out this feature to a small number of Cash App customers. We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we’re excited to learn more here.”

Square’s Chief Executive Officer Jack Dorsey is a believer in crypto-currencies and the blockchain technology they are built on. He recently told an interviewer that blockchain is “the next big unlock.” The interview went further, and Dorsey disclosed that friends and family had asked him how they could buy Bitcoin, which may be an insight into why he has moved Square in its current direction. Continue reading "Square Just Made It A Lot Easier To Own Bitcoin" →

Short-Term ETF Investment Capitalizing On This Time Of Year

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


The Holiday Season is now upon us, and in just a matter of days, millions of dollars will be spent buying presents. On Thanksgiving Thursday, Black Friday, Small Business Saturday, and Cyber Monday we will see millions of shoppers spending billions of dollars on gifts for the holidays.

But since we have a 'holiday' shopping season every year the more important thing from an investors perspective is whether holiday sales will be higher or lower than last year. Luckily this year the National Retail Federation expects annual holiday spending will increase by 3.6% to 4% this holiday season over last year.

Soon after the weekend, sales figures will start rolling in, and investors will either start selling or buying shares of the companies winning the retail holiday war. This makes it hard for investors to accurately predict ahead of time which companies will be the winners and which will be the losers, and therefore Exchange Traded Funds are the best way to make this investment.

With ETF's you can easily purchase a small or large basket of retail stocks right before the holiday shopping season, benefit from the winners while not getting crushed by the losers, and then get out of investing in retail before the end of the year.

So, if this sounds like the kind of purchase you want to make this holiday season, let's look at a few different ETF's you can buy now. Continue reading "Short-Term ETF Investment Capitalizing On This Time Of Year" →

Bitcoin; Let's Just Call It What It Is, A Speculative Investment

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


An investment, as described by Webster dictionary, can be anything that an investor believes will produce income in the future or be worth more than it is today at some point in the future. Common investments include but are not limited to stocks, bonds, real estate, jewelry, artwork, or antiques.

Speculation, again as described by Webster dictionary, is the assumption of unusual business risk in hopes of obtaining commensurate gain. The dictionary has a definition of speculation specifically for students or kids which is, 'the taking of a big risk in business in hopes of making a big profit.'

The current situation with Bitcoin can best be explained by quoting the Merriam-Webster website when it is explaining speculation.

"Speculation can increase short-term volatility (and thus, risk). It can inflate prices and lead to bubbles, as was the case in the 2005-2006 real estate market in the UniteStates. Speculators who were betting that home prices would continue to increase purchased houses (often using leverage) intending to "flip" them for a profit. This increased the demand for housing, which raised prices further, eventually taking them beyond the "true value" of the real estate in many markets. The frenzied selling that ensued is typical for speculative markets."

Currently, it would be hard for anyone to argue that Bitcoin and other crypto-currencies aren't experiencing speculator behavior based on the above explanation. Continue reading "Bitcoin; Let's Just Call It What It Is, A Speculative Investment" →

Bitcoin Pigs Get Fat, But The Hogs Are Going To Get Slaughtered

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


Unless you have head your head stuck under a rock for the last 12 months, you have heard of Bitcoin and how the price of the first crypto-currency has skyrocketed this year. After hearing about this 'once in a lifetime investment opportunity,' I am sure most of you have thought about buying some digital currency. Maybe some of you have even taken the next step and bought some. (Congratulations to those of you who did.)

But as the saying goes, 'Pigs get fat, hogs get slaughtered,' I hope for your sake you are a pig and get out while you can. Unless you got your hands on some Bitcoin's in the last week, you have made money.

A recent Bank of America Merrill Lynch survey found that the Bitcoin traded is one of the most crowded trades on Wall Street, which obviously explains some of its massive run-up. Bitcoin's amazing performance over the last year now appears to have attracted some very risk-averse investors.

We have seen the price of Bitcoin fall 30%, 40%, even 50% in just a years' time. But, investors keep running into the asset and pushing the price to new all-time-highs.

So what would actually cause a Bitcoin collapse? Continue reading "Bitcoin Pigs Get Fat, But The Hogs Are Going To Get Slaughtered" →