Trakx Weekly Update: September 11, 2023

Key Crypto Market Figures

CTIs Weekly Performance

Crypto remains a sideways market with the Trakx Top 10 Crypto CTI off 2% over the past seven days, the performance impinged by a 6% correction in Solana’s price (see below). Solana’s price drop was also responsible for the 3.8% fall in the ESG CTI, which was the weakest performer within the Trakx suite of Crypto Tradeable Indices. The best performer was the DEX CTI, which gained 0.2% over the past week.

The slump in Solana’s price was triggered by concern that the liquidation plan of the bankrupt exchange FTX, which has an estimated $1.5bn in Solana-related crypto assets on its books, could bring substantial selling pressure to the market. Although the plan includes measures to limit sales - $200m per week of a single token – it has not yet been accepted by the Delaware court who is slated to decide on this and other FTX-related issues this week.

Elsewhere, ahead of last weekend’s G20 meeting, the IMF and the FSB published a joint policy roadmap that seeks to introduce a global framework for crypto assets. Under the framework, countries would automatically exchange information on crypto transactions between different jurisdictions, including transactions on unregulated crypto exchanges and wallet providers “to address macroeconomic and financial stability risks”. Importantly, the report reiterated the IMF’s earlier stance that a blanket ban on crypto assets – impossible to implement anyway - may not help mitigate the risks and stated that the best risk mitigation approach was to “strengthen monetary policy frameworks”, namely for central banks to keep inflation low, something they have not been doing terribly well of late.

Finally, the Financial Accounting Standards Board announced that from 2025 US companies are required to account for crypto assets at fair market value, as opposed to current rules where they have to be recorded at their original cost with any loses written down as an impairment charge. The change should make it easier for US corporates to hold crypto assets on their balance sheets and, as such, is yet another longer-run positive for crypto adoption.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• Solana falls 6% amid fears of FTX dump — but there's a catch: Cointelegraph.
• Blanket Crypto Bans Won’t Work, IMF and FSB Warn in Joint Paper: Coindesk.
• Standards Board Approves Long-Sought Change in Crypto Accounting Rules: Decrypt.
• Coinbase raises USDC interest rate to 5%: Cryptoslate.
• Grayscale Ethereum Trust Discount Drops to Lowest in a Year Amid Spot Ether ETF Push: Coindesk.

Trakx News

Trakx has launched two incentive programs in September:

• 10% APR for >1,000 USDC invested in CTIs (6 months min)
• 10USDc for successful onboarding

Please contact support@trakx.io for more details.

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.