Trakx Weekly Update: June 26, 2023

Key Crypto Market Figures

CTIs Weekly Performance

The crypto market experienced a ground-swell of optimism over the past week, helping to drive our Top10 Crypto CTI up 10% over the past seven days. The strongest gains were recorded in the Lending and Top10 DEFI CTIs, which were up 27% and 20% respectively on the week. The weakest performance was the Inflation Hedge CTI, which gained 2.5%.

Fuelling the rise in positivity was the news that two other financial institutions – Invesco and WisdomTree - have decided to follow BlackRock’s lead and filed for spot Bitcoin ETFs in the US. By virtue of these being are large established firms investors believe that the prospects for these applications being accepted is quite high. In addition, EDX, an institutional-only crypto exchange backed by Citadel, Fidelity and Charles Schwab went live last week. Although EDX will only offer trading in four cryptocurrencies – Bitcoin, Ethereum, Litecoin and Bitcoin Cash – combined with the ETF filings, it confirmed what many crypto players have long anticipated, namely that institutional adoption of crypto is finally gaining positive momentum.

Clearly one factor that is aiding this process is the increasing legal clarity that comes from the introduction of crypto regulation. In contrast to the SEC’s approach (see below for our take) in the UK, the House of Lords last week passed the Financial Services and Markets Bill, legislation that amongst other things outlines regulations for crypto-assets, including stablecoins. While the legislation still has a few hurdles to jump before being formally put on the UK law books, having passed both Houses of Parliament, it appears likely the bill will receive Royal Asset in the coming months.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• WisdomTree, Invesco Follow BlackRock With Spot Bitcoin ETF Applications: Decrypt.
• Crypto Exchange Backed by Citadel Securities, Fidelity Goes Live: Bloomberg.
• ProShares' Bitcoin Futures ETF Racks Up Biggest Weekly Inflow in a Year: Coindesk.
• UK government moves forward on financial markets bill for potential regulation of crypto: Cointelegraph.
• NEAR Soars 12% Following a Partnership With Alibaba: Cryptopotato.

Trakx News

• Ryan Shea published: Regulation Ramp-Up examining the impacts of the SEC’s regulation-by-enforcement approach.

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.

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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.