Topic: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion - page 26001. (Read 26608802 times)

Mozilla is releasing their $30 smart phone throughout India, Africa and other parts of asia, which runs BTC quite well. BTC was never a good idea for rich westerns, credit cards are better for almost all circumstances. The un-banked is where it is for BTC, especially since those cultures know very well not to trust their governments with their money, you think Indians buy gold cause it looks pretty?

Lots of people here seem pretty depressed about BTC at the moment, but if you ask me it is only just starting to find its feet. So you are not all going to be rich enough to retire in the next 6 months. Suck it up, this is not about you.

Explanation

do not get me wrong... I am not saying that these guys or GABI are "saviours"...  far from it.. (I did not realise Bitcoin was in need of saving) I am not even saying GABI is that important per se... but it is what it is.. I was more confirming that they more than likely DO have their ducks in a row (vis a vis the $200 million bucks they think they will be playing with in the next 6 months...) which has implications... also even if it is regulated in Jersey it is still regulated so their is some oversight... this is a world first... so it is something.. on its own not so much.. but added with others to follow, it all adds to the buying pressure, and will bring some liquidity along with it...  I as a matter of interest will be keeping a keen eye on who these players are that enter the market and continue to add tidbits of information for my own due dilligence and to satisfy my obsession...

I know all about JP Morgan, and indeed the company I worked with merged with them while I was there.. so basically I actually worked there for a period.. and I worked with a lot of decent and very straight people (more so than in the city) from Jersey too and smart people..

I just happened to be in a position to provide details.... so I thought I would let blast...

Also I actually found that much of my interactions with Jersey led me to work with and deal with a good deal of very very straight individuals...  now not to say that there is not some rotten players.. I am sure there are as there are everywhere..  but on the whole, compliance wise and technology wise, I for one am glad that places like Jersey and the Isle of Man are getting involved..

I hear what you are saying, I just think that Bitcoin is going to do what Bitcoin does ... and will continue to do .... and I think funds , this one and future ones are going to play a role, even if we like it or not..  and they will be important for as long as they are.. and not any longer... so based on that I choose to acquire information..... apart from the "not bozos" and "serious players"  "connected"  I did not offer an opinion on if I think this is overall a good thing...  truth is
I am also concerned about this crowd you speak of.. but as it goes not the GABI crowd so much.. they are peanuts ... I would be FAR more worried about Daniels ex employee JP Morgan, than Daniel and GABI.... ultimately even those guys...I do not think they will be the end of BTC... could they cause a crazy ride on the way up?and down and up and down .... yeah... do I think so... but how long they can keep their grip for... will depend on how big BTC grows... fact is many markets are manipulated, and it sucks and that coupled with the never ending fresh crispy notes, makes price discovery near meaningless.. which has all sorts of implications not just for BTC.. and yeah the world would be a better place with those guys power eroded, and I think we will get there...

for now though.. the enemy of my enemy is my friend


(the growing reality of decentralisation (not just in finance, but in other areas too which technology is impacting and disrupting) is still what excites me the most... by far... and that journey has only just begun, of that I am very sure... and of course the manipulated markets, the games, and the money printing are all part of what BTC holds the promise to address)

(Aside from the more obvious areas related to politics and society, finance/economics and liberty, which are often a red rag to a bull on this thread....  I see the "internet of things" as an interesting topic in terms of BTCs future and its potential (and also the implications of the internet of things to decentralisation in general)...another area I have been researching,  I may rattle on about that for a while at a later date)


ALSO... I do not find it insignifcant... that just from one connection I had, I see that former employees 5 or so of the legacy financial system... are making their way and spreading into various parts of the Bitcoin ecosystem...  could it be that some of them ... some of them... have seen delight? I have no problem with professionals entering the network as long as they bring something of value.... many of them are in a position to know the games played better than many others... interesting that BTC has drawn such a diverse mix of talent from so many fields.. (engineers, coders, designers, economists, cryptology experts, humanitarians, scientists etc,  and even ex-"bankers" ... it is a massive brain fund, and for once the JP Morgans and GoldmanSacks, Enrons of the world may not be "the smartest guy in the room")  

I am starting to suspect that you are all dead and don't even know it, yet. That means the price will probably rise in dramatic fashion given it is the opposite of what I now think.

Explanation

Indeed, you can see the past three funds that have been launched by Global advisors,  2 in black, one is down.. and ?  and if you have a read...... also if you look at the timing of the other two they closed back in 2007 and the situation with the market at the time commodities were getting hammered , and they had a load of investors pull out...

Anyway the guys are not bozos... and I am not sure Daniel is so chummy anymore with some of the JP crowd... and Blythe is now his ex wife.

Also yeah I know all about Blythe, she pretty much was commodities trading at JP for a while... slippery... anyone who has ever traded silver knows all about her and her gangs supposed games..

I am only playing here...... but where did you get it? have you got a number? cos that must be some primo stuff you are smoking  

I am a bull... but holy moly batman that is bullish.... the 5-10 bit within the next year I can imagine... the $100,000 plus within a year and a half... well I have trouble allowing myself.. bejesus could you imagine it... ha ha oh my...


(now I am gonna go and read the link   )

... if that is what you take from it.. then so be it Jorge... so be it...

Google "Daniel Masters"  and see what his funds did the past.

Also google "Blythe Masters"  his famous wife,  the inventor of the credit default swap.   She was also the head of JP Morgan global commodities.   The one that silver investors malign for suspicion of manipulating the silver market

I bet what they is hold bitcoins for clients and hedge against these positions.   I believe thats he did at JP Morgan.   He bought physical oil and sold oil futures against it

Thanks!  So GABI will be just another mysterious source of unpredictable disturbances in the fabric of spacetime...

just for you creekbore 

The Company seeks to achieve capital appreciation through direct and indirect exposure to Bitcoins and Bitcoin related markets.

If profitable opportunities arise, the Company will also invest in certain other commodity markets, including precious metals, oil and other forms of money (such as FX) as required to meet its investment goals whilst enhancing the Company’s ability to manage its liquidity requirements

Indeed the interpretation is correct....

Key Features of an Expert Fund

• An Expert Fund may only be offered to Expert Investors, on the basis of an offer document setting out all material information. Expert Investors are deemed to be able to evaluate the risks of investing in an Expert Fund and to bear the economic consequences should the investment fail, and are therefore also deemed to require less regulatory protection in relation to the manner in which the Expert Fund is structured.

• Regardless of the number of potential investors to whom the fund is offered, a Fund Certificate is required in relation to an Expert Fund.

 • Each of the Jersey Fund Service Providers must be registered under the FS Law and comply with Codes of Practice for the conduct of fund services business (although Managed Entities may only be subject to the core principles of the Codes and standard conditions attaching to their FS Law registration – see below)

 • An Expert Fund must have a Jersey Fund  Service Provider which is able to certify compliance with the JFSC's requirements for Expert Funds. Approval is given by the JFSC on the basis of this self-certification. The Jersey Fund Service Provider has a responsibility to the JFSC to monitor the investment manager's compliance with the Expert Fund’s investment and borrowing restrictions (if any) and to maintain adequate records in Jersey.

• The fund company, general partner or trustee must have at least two Jersey- resident directors.

• An Expert Fund can be open or closed ended, can be established using any of the common forms of investment vehicle and no investment or borrowing restrictions are set by the JFSC.

• An Expert Fund which is a unit trust or limited partnership must have a Jersey trustee/general partner.

• The JFSC's Promoter Policy does not apply to an Expert Fund.

 • The investment manager should be appropriately qualified in accordance with published criteria and must sign a prescribed statement confirming certain matters relating to its regulatory position or stature. This statement must be counter-signed by a Jersey Fund Service Provider (typically the administrator of the fund) confirming that it has conducted its own general due diligence on the investment manager and has no reason to believe the investment manager's statement to be incorrect. The JFSC has demonstrated a willingness to approve applications on behalf of funds whose investment manager or adviser is unable to comply with the criteria if they can be satisfied as to the ability of the manager/ adviser to fulfil its functions in relation to  the fund. The jurisdictions in which the investment manager may be established can be found on the JFSC's website (www. jerseyfsc.org) under the Funds Business tab – Guidance Notes.

 • An Expert Fund may be listed provided that certain criteria are met so that the holding of units in the fund is always restricted to Expert Investors. • Transfers of interests should only be made to other Expert Investors.

• The requirements for custody arrangements are flexible, especially for closed- ended vehicles and for hedge funds. Every Expert Fund must have adequate arrangements for the safe custody of the property of the fund and in the case of open-ended funds the custodian should be Jersey based. However, in the case of a hedge fund, the need for a custodian will be waived provided a prime broker with a credit rating of A1/P1 is appointed. Flexibility is maintained, as the JFSC will discuss any derogations from the requirements of the Expert Fund Guide on a case-by-case basis.

 Expert Fund may only be offered to "Expert Investors". The term "Expert Investor" includes: – an investor who makes an initial minimum investment of US$100,000 (or equivalent); or – a person or entity (or an employee thereof ) whose ordinary business or professional activity includes acquiring, managing or giving advice on investments; or – an individual with a net worth greater than US$1,000,000 (or equivalent) (excluding principal residence); or – an entity with assets available for investment of not less than US$1,000,000 (or equivalent) or every member, partner or beneficiary of which is an Expert Investor; or – a Fund Service Provider or an associate of a Fund Service Provider to the Expert Fund (or an employee or shareholder thereof ).

A discretionary investment manager is an  Expert Investor for the purposes of the Expert Fund Guide and may invest on behalf of non- expert investors provided that it ensures that an investment in the Expert Fund is suitable for the underlying investors. Any application to include other types of "carried interest" investor within the definition of Expert Investor is likely to be treated sympathetically by the JFSC. This is intended to encourage investment by those involved in establishing and providing services to Expert Funds. There are a number of funds approved in which such carried interest vehicles participate. There is no restriction on the number of Expert Investors, but each must acknowledge in writing a specific investment warning acknowledging their understanding that the fund is suitable only for Expert Investors.

 Authorisation Process for an Expert Fund In order to establish an Expert Fund, a standard application form must be completed, signed on behalf of the Expert Fund and the relevant Jersey Fund Service Provider and filed with the JFSC, together with copies of the offer document, fees and a declaration certifying that the Expert Fund complies with the requirements of the Expert Fund Guide.

The JFSC relies on the declaration in order to authorise the Expert Fund on an expedited basis. The authorisation process will conclude with the issue of a Fund Certificate in relation to the Expert Fund and the registration under the FS Law of any Fund Service Providers not yet registered:

Fund Certificate Conditions relating to the Expert Fund will be attached to the Fund Certificate which will be granted to the fund itself if the fund is a company, to the general partner if the fund is a limited partnership or to the trustee if the fund is a unit trust. Registration under the FS Law to carry on fund services business Each Jersey Fund Service Provider of an Expert Fund needs to be registered under the FS Law to carry on fund services business.

All registered Fund Service Providers are required to comply with Codes of Practice for the conduct of fund services business which  consist of seven core principles together with detailed requirements in respect of each of these principles. However, Managed Entities acting in relation only to expert funds, related expert funds or materially equivalent funds are subject only to the seven core principles and a set of standard conditions attaching to their registration under the FS Law unless they have elected to comply with the Codes in full. Once a person (other than a Managed Entity) is registered to provide fund services business of the relevant type, it does not need to apply for authorisation in relation to each new fund for which it intends to carry on the same type of fund services business. Changes made to an Expert Fund do not require the prior approval of the JFSC provided the criteria in the Expert Fund Guide continue to be met.

 Timescale for Authorisation The JFSC's published timescale for authorising an Expert Fund is 72 hours. This timescale is based on the JFSC receiving a fully completed application and satisfactory responses to enquiries. The JFSC has confirmed that applications for registration under the FS Law of a Managed Entity which is to act for an Expert Fund will also be processed within the 72 hour timescale provided that the JFSC has previously approved the directors of the Managed Entity. Statutory Fees Application fees A fee of £1,000 is payable on application for the Fund Certificate plus £1,000 in respect of each of the fund’s Jersey Fund Service Providers. Annual fees Annual fees are payable in relation to a fund which holds a Fund Certificate. The amount depends on the total number of pools of assets in the fund at the time the fee is payable (this ranges from £2,000 if there is only one pool of assets to £20,000 if there are 200 or more pools of assets). Statutory fees are also payable by Jersey Fund Service Providers. A fee of £1,000 is payable for a Fund Service Provider’s application for registration under the FS Law.

Please note that as mentioned above, once a Fund Service Provider is registered, then if it is not  a Managed Entity, it does not need to apply for authorisation in relation to each new fund for which it intends to carry on the same type of fund services business. The annual fees payable by a Fund Service Provider depend on the number of pools of assets in all the collective investment funds in relation to which it is a Fund Service Provider. This ranges from £2,000 to £20,000. From 1 July 2009, a Fund Service Provider is required to pay the minimum annual fee of £2,000 even if the number of pools of assets in all the collective investment funds in relation to which it carries on fund services business is 0.

If the Fund Certificate is granted or the Fund Service Provider registered on a day after 1st July the annual fees are calculated pro rata for each complete month of the year to the following 1st July. Offer Document The Expert Fund Guide prescribes basic information which must be contained in an Expert Fund’s offer document. This includes all the information that investors would reasonably require for the purposes of making an informed judgement about whether to participate in the Expert Fund.

The requirements are not unduly burdensome and also benefit Expert Fund promoters in providing clear guidance as to the requirements for offer documents. In addition, an open-ended Expert Fund structured as a company or a unit trust must comply with the UFPO and a closed-ended Expert Fund structured as a company must comply with the GPO. Offer documents for Expert Funds need to include an investment warning in the approved form, and each investor must acknowledge in writing that he has received  and accepted this warning.

Explanation

It looks like GABI will not be like SMBIT.

SMBIT (for what I know) is supposed to just buy bitcoins when clients invest (buy SMBIT shares), and sell bitcoins when clients liquidate (sell the shares back to SMBIT).  Both operations use a fixed price of 0.1 BTC per share, converted to USD according to the market price at the time of the transaction (buy or liuidate), with fixed (non-trivial) fees.  Thus an SMBIt share is just a receipt for 0.1 BTC stored by SMBIT.

GABI looks more like "give us your money, we will invest it in a portfolio of bitcoin and bitcoin-related entrerprise and other things as well, as we see fit, buying and selling so as to increase our holdings and hence the value of your shares".  Is this interpretation correct?

Hmmm in terms of performance no, but I am not sure exactly what is stipulated in their order.. though under the fund regs they do have to provide an "Offer Document"

Offer Document
The Expert Fund Guide prescribes basic information which must be contained in an Expert Fund’s offer document. This includes all the information that investors would reasonably require for the purposes of making an informed judgement about whether to participate in the Expert Fund. The requirements are not unduly burdensome and also benefit Expert Fund promoters in providing clear guidance as to the requirements for offer documents. In addition, an open-ended Expert Fund structured as a company or a unit trust must comply with the UFPO and a closed-ended Expert Fund structured as a company must comply withthe GPO.

Offer documents for Expert Funds need to include an investment warning in the approved form, and each investor must acknowledge in writing that he has received and accepted this warning.

So that is what is available until they hand over their first set of audited accounts/reports.

Thanks!  Shoud we then assume that we will not know what GABI is doing for 10 months at least (assuming the reports are published or leaked then)?

For those that still have not seen this or missed it and may be interested.... (apology to those that have seen it already, not "spamming" but it seems there is still some confusion as to who and where and how... there is a link to the regulation that covers GABI nearer the bottom)

Some infos I have gathered regarding: GABI (Global Advisors Bitcoin Investment Fund) for anyone that may not have seen it.


ANNOUNCEMENT FROM JERSEY GOV

=

http://www.gov.je/News/2014/Pages/CryptoCurrency.aspx



(Global Advisors Jersey Limited)  

Daniel Masters
(http://www.linkedin.com/pub/daniel-masters/8/939/197)

Co-Principal and Portfolio Manager
Director of Trading & Execution
Daniel Masters started out in 1985 at Royal Dutch/Shell, where he was responsible for managing a portfolio of North Sea Crude. Moving to The Phibro Energy Division of Salomon, Inc. in 1987, he pioneered the firm’s entrance into the electricity markets. He structured groundbreaking natural gas deals and was an original participant in the “Contract for Difference” (CFD) market for physical oil in Europe. J.P. Morgan hired him in 1993 to add trading expertise to its array of financial capabilities. Based on Danny’s success in establishing a proprietary trading program, Morgan promoted him to head its global energy trading business in 1997.


Russell Newton
(uk.linkedin.com/pub/rus-newton/0/419/371)

Co-Principal and Portfolio Manager
Director of Systematic Model Research & Development
Russell Newton began his career as a crude oil trader for Royal Dutch/Shell in 1986. As head of Shell’s futures and forwards trading, he was one of the original developers of pricing models for the Brent CFD market. Rus also worked for The Phibro Energy Division of Salomon, Inc. and Rhein Oel Limited before joining J.P. Morgan in 1993. At Morgan, he served as global commodities strategist, covering base and precious metals as well as energy. He developed a new derivative trade structures and new techniques for researching, analyzing and modeling markets.


J Mognetti
(uk.linkedin.com/in/jmmognetti)

Mr Mognetti is a director and shareholder of Global Advisors (Jersey) Limited. Mr. Mognetti is registered with the National Futures Association (NFA) as a Principal, an Associated Person , and a National Futures Association (NFA) associated member of Global Advisors (Jersey) Limited and is also approved as a Key Person of Global Advisors (Jersey) Limited by the Jersey Financial Services Commission (JFSC).


Global Investment Bitcoin Investment Fund
Ground Floor Liberation House Castle Street St Helier Jersey JE2 3AT
http://www.globaladvisors.co.uk/

The Company seeks to achieve capital appreciation through direct and indirect exposure to Bitcoins and Bitcoin related markets.

If profitable opportunities arise, the Company will also invest in certain other commodity markets, including precious metals, oil and other forms of money (such as FX) as required to meet its investment goals whilst enhancing the Company’s ability to manage its liquidity requirements


Intro video if you have not seen it = https://www.youtube.com/watch?v=OMN03xti4pk


Partners

Carey Olsen as legal advisers led by James Mulholland -
http://www.careyolsen.com/locations/jersey/

Moore Management as fund administrator
http://www.mooremanagement.com/

Netagio and Elliptic as providers of custody services "to strengthen and enhance our fund offering."
https://secure.netagio.com/  Netagio. The first British Bitcoin, gold & sterling exchange.
+
https://www.elliptic.co/



Company formation and registration details

https://www.jerseyfsc.org/registry/documentsearch/NameDetail.aspx?Id=297268


The fund will operate within the Collective Investment Funds (Jersey) Law 1998 as an "Expert Fund"

of which you can find a copy here =  http://www.jerseyfsc.org/pdf/schedule_2_codes_for_certified_funds_august_2011.pdf




........Interestingly enough the company that I used to work for who are based in Jersey, who have since merged and then morphed and changed names several times.. was most likely involved in advising the government (and others) in writing the Collective Investment Funds (Jersey) Law 1998,  and I also worked at the same company as one of the other members of the team at GABI ,one of the non exec directors, albeit I never met the guy from memory.... ..small world  

Edit: actually the same company also advised quite a few other governments too over the years in various aspects of Taxation law and Financial and International Finance law/International law and the like,  they get around, highly respected in their field and everything they touched was solid as a rock

....huh really small world...  looking around I see 6 or 7 people from one company I worked for (Jersey/London based) are now working in and with Bitcoin related businesses, even one guy working for one of the GABI partners.  

Explanation