Hedge Fund Specialist: Crypto Funds lost 29.2% in March

Barclay Hedge released its latest index, the Cryptocurrency Traders Index, revealing that players in the field failed 29.2% in March 2018
20 April 2018   1262

And year to the current date, it is being declined 43.1% after three subsequent monthly losses. The researchers suppose that the new tool is an equal-weighted index of the monthly proceeds of a representative universe of 19 component funds that trade bitcoin and other cryptocurrencies, beginning Jan 1st 2018.

Estimated perfomance calculated with reported data from crypto funds for January-March of 2018
Estimated perfomance calculated with reported data from crypto funds for January-March of 2018 

Barclay Hedge, established in 1985 and previously known as The Barclay Group,  works for institutional investors around the world in the sphere of hedge fund and managed futures performance measurement and portfolio management. It supports  148 hedge fund indices for financial institutions in North America and Europe in its role as an independent index calculation agent.

The ability to trade Bitcoin futures on exchanges such as CME and Cboe, which are respected worldwide, provides a much-needed level of transparency, investor safety, and credibility to the price–discovery process and creates a level of institutional legitimacy that is crucial for growth in this sector. Within days of the launch of Bitcoin futures, Bitcoin rose to its all-time high of just under $20,000 on December 18 last year. Today’s prices are just over $8,000. Folks have their opinions, but no one really knows if it’s a bubble or a corre. 
Sol Waksman, president, founder, Barclay Hedge

The massive 2017 price revival saw an outbreak in the number of crypto hedge funds, with a whopping 167 planned to have launched during the year. Nevertheless, many are trying to survive the present market with at least nine crypto hedge funds having stopped operations.

Israeli BTC Investors to Face Catch 22

They need to pay taxes from Bitcoin investing in order to avoid their property arrest, but banks don't take their money due to AML issues
06 August 2019   135

Bitcoin investors in Israel are faced with the impossibility of paying taxes, as local banks refuse to accept funds received from the sale of cryptocurrencies because of the risks of money laundering and terrorist financing. About this writes the local edition of Haaretz on August 6.

Bitcoin is not recognized as a currency in Israel, therefore, individuals must pay 25% of the income from cryptocurrency trading to the treasury, and legal entities - 47%.

Investor Ron Gross told the publication that he acquired bitcoins in 2011 and reported his income to the tax office. In 2017, the bank that served Gross began to refuse to accept funds received from the sale of bitcoins. The investor met with representatives of the bank to demonstrate to them a 70-page history of bitcoin transactions as confirmation of the origin of the funds, but failed to convince them.

The tax authority is aware of the problem, but they say the ball isn’t in their courts. I’ve tried working with almost all the banks, but the minute they hear the word ‘Bitcoin’ they freeze up.
 

Ron Gross

Bitcoin investor from Israel

 

Since Gross was unable to pay taxes on time, his bank account, home, and even scooters were arrested. According to the investor, the tax authorities know about the problem, but can do nothing.

According to Haaretz, the tax office is aware of $ 86 million in unpaid taxes on income from cryptocurrency trading. It is possible that the real amount may be significantly higher.

Roy Arav, another Bitcoin investor, kept the proceeds from trading Bitcoin in an account with Israeli bank Discount under the control of the Bit2C exchange. The bank refuses to transfer money to Arava’s personal account under the pretext that its politicians forbid it to transfer funds related to virtual assets to client accounts due to the risks of money laundering and terrorist financing.

Arav also could not pay taxes and was forced to sue the bank. According to the investor, the authorities entered his position and granted him a deferral of time for the consideration of the claim.