Trakx Weekly Update: May 29, 2023

Key Crypto Market Figures

CTIs Weekly Performance

Last week ended on a positive note for all Trakx Crypto Tradable Indices (CTIs), with a 5% rise for Trakx Top 10 Crypto. The best performing CTI was Trakx Lending which rebounded 8% over the week driven by Aave and Kava (+7% each). The ESG CTI, that captures the evolution of a basket of ESG top rated crypto assets, gained 6% over the week. The weakest performer, Trakx Inflation Hedge, was flat.

A declining correlation between bitcoin and equities noted by the market research firm K33 in a report is revitalising the appeal for investors to include the asset in a diversified portfolio. This declining correlation between crypto and stocks was also mentioned in Ryan Shea paper Crypto Impact: Hard vs Soft Landings. Crypto regulation continues to remain at the forefront of global discussions. In the UK, while the government is eager to turn the country into a hub for the industry and regulate consumer crypto trading as a financial service, a group of MPs has urged the government to regulate cryptocurrency as gambling. The release of Beijing’s web3 white paper alongside Hong Kong’s regulatory push for cryptocurrency exchanges could indicate the initiation of a more inclusive stance towards digital assets in the region. Zimbabwe’s digital coin went live earlier this month to end decades of chaos with soaring inflation and give people an easy way to use the coin for transactions and loans.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• Bitcoin’s Declining Correlation With Stocks Revives Its Appeal for Investors: K33 Research: Coindesk.
• World Economic Forum Thinks it Knows How to Fix Crypto Policy: Blockworks.
• Bitcoin Moves Little on the Week Despite Debt Deal, Inflation Concerns: Coindesk.
• Binance CEO highlights timing of Beijing’s web3 white paper amid China, Hong Kong crypto regulatory changes: Cryptoslate.

Trakx News

• Ryan Shea published: “Why the visible hand of monetary policy will drive crypto adoption” taking a look at the competency of Central Banks.
• Yann Le Floch participated in the TVF Media program: “Are cryptos compatible with ESG criteria?”

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.