Despite a tumble in value, attacks from hackers and legal scandals, Bitcoin is still garnering the attention of the infamous Winklevoss twins. The former Olympic hopeful duo have hired engineers from top hedge funds and are working with regulators and a bank chartered in New York (that's as specific as they would get) to launch a Bitcoin exchange called Gemini as well as an ETF. The twins are convinced that financial expertise and a focus on security and regulation will help them succeed where many, many other Bitcoin exchanges have failed.
Although it's illegal and there have been recent indictments for violations of anti-spoofing laws as of late, one former hedge fund and commodities trader wants to undo the ban. John Arnold, the former CEO of hedge fund Centaurus Energy, writes on Bloomberg View that spoofing keeps high-frequency trading and "front-running" in check in the markets. "Regulators have never described how spoofing harms market integrity or even legitimate traders," Arnold writes. "Instead, they condemn the practice because it involves deception ... and summarily conclude that this deception is de facto harmful, without considering the broader context or its true consequence to the market."
Rethink Everything You Thought You Knew About Millennials
It's time to put the millennial stereotype to rest and start following their investing lead, writes Ann Hynek on the BlackRock Blog. Because they came of age during the height of the financial crisis, millennials are well-aware of the importance of saving money, even though none of them believe in the "retirement fairy." Instead, their investment strategies include utilizing a variety of savings calculators and online resources, seeking guidance from online advisors, diversifying their portfolios to include ETFs and putting their money where their mouths are by being at the forefront of impact, or responsible, investing.
Another Kind of Robot Joins the Industry
Vantage Software, which provides investment research and portfolio performance for advisors, is the latest to team up with IBD’s supercomputer Watson, which competed on Jeopardy! The software company will use Watson’s computing capabilities to create Coalesce, a tool to analyze and evaluate thousands of pages of information. It will also instantly search through market intelligence, risk profile and financial performance data to help advisors and investment managers make investment decisions.
Want The Daily Brief delivered directly to your inbox? Sign up for WealthManagement.com's Morning Memo newsletter.
