Trakx Weekly Update: February 20, 2023

Key Crypto Market Figures

Crypto Tradable Indices (CTIs) Weekly Performance

Crypto prices rebounded sharply over the course of the past week, with all the Trakx Crypto Tradable Indices recording positive performance. While the Trakx Top 10 CTI was up 11%, the strongest performances were the ESG and Interoperability CTIs, which both gained 14% on the week. The move higher at first glance appears somewhat perplexing. The macro news certainly did not provide much rationale for the rally. US rate expectations continued to move higher on the back of continued hawkish commentary from Fed officials, while retail sales posted their biggest monthly gain in almost two years more than offsetting any positive vibes from the lack of a surprise in the much-anticipated CPI report.

Crypto’s relative outperformance of other risk assets - SP500 and gold were flat to down on the week - could reflect investors shifting their holdings to crypto assets perceived to be more resilient to government oversight amid the regulatory crackdown being led by the US. Just last week, New York’s financial regulator directed the crypto firm Paxos to cease minting BUSD, Binance’s stablecoin, triggering a $3bn decline in BUSD’s market cap to $13bn – a move that also fuelled speculation that Binance – the world’s largest crypto exchange – may retreat from the US. In addition, the SEC’s announced it had charged Terraform Labs and its CEO Do Kwon for fraud related to last year’s collapse of Terra/Luna.

Market Trends

• Crypto firm Paxos to face SEC charges, ordered to stop minting Binance stablecoin: CNBC
• Binance considers pulling back from US partners as crypto crackdown escalates: Bloomberg
• Terraform Labs and CEO Do Kwon charged by SEC with multibillion-dollar crypto fraud:  Bitcoin.com
• SEC proposes rules that would change which crypto firms can custody customer assets: CNBC
• Abu Dhabi Starts $2B Initiative to Back Web3 Startups: Coindesk

Trakx News

• Lionel held a new AMA session last week to update our investors on our progress. Contact us directly for more detail.  

Trakx CTIs Performance

Sources: Coingecko and AlphaVantage

*Return of bitcoin is calculated since 01/05/2020, while CTIs performances were calculated since their respective launch date.
**Includes simulated performance.
***The risk signal is determined according to the historical volatility level, the higher the riskier.

Trakx is a global fintech company creating new standards for digital asset investments. Through our trading platform, we offer thematic Crypto Tradable Indices (CTIs) and customised solutions, providing sophisticated investors a high degree of compliance, custody and liquidity. Trakx is registered with the French regulator (AMF).

Disclaimers: No Investment Advice. Index returns and statistics are for illustration only. Index returns do not reflect any transaction costs or expenses. Past performance does not guarantee future results. The information provided in this newsletter does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the newsletter content as such. Trakx.io does not recommend that any cryptocurrency should be bought, sold, or held by you. Readers shall conduct their own due diligence and consult their financial advisors before making any investment decisions.