Trakx Weekly Update: April 24, 2023

Key Crypto Market Figures

CTIs Weekly Performance

Having tagged fresh year-highs earlier this month, crypto prices retrenched over the past several days with the Trakx Top 10 Crypto CTI down 11% (leaving it up 46% year-to-date). Weakness was concentrated in the Lending, DEX and ESG CTIs, indices which had gained strongly in previous weeks. Although most CTIs were down double digits w/w, the Inflation Hedge and Bitcoin Control15 CTIs posted only very modest declines – falling around 2% over the past seven days.

In terms of crypto news, regulation was front and centre last week after SEC Chair Gensler testified in front of the House Financial Services Committee. On the back of the increased efforts from the SEC to force crypto companies to comply with securities laws several committee members adopted a fairly critical stance accusing the SEC of “regulation by enforcement”. One particular area of contention that received considerable attention on social media was Gensler’s refusal to say whether ETH was a security or a commodity.

Meanwhile in Europe, the EU parliament passed the Markets in Crypto Assets (MiCA) bill with an overwhelming majority. The bill, which has taken years to draft in the final form, will see the Eurozone region apply a unified approach to crypto legislation, providing much needed clarity to the industry and a marked contrast to the US approach. Crypto firms will have 12-18 months to prepare before the regulations are fully implemented.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• Gensler defends SEC's crypto crackdown in marathon House hearing: CNBC
• SEC’s Gary Gensler dodges question on whether Ethereum is a security: Yahoo
• EU Parliament Approves Crypto Licensing, Funds Transfer Rules: Coindesk
• Celsius auction has Gemini and Coinbase as new bidders: Cointelegraph
• Bank of Russia to set up entities for crypto mining and cross-border settlement: Cointelegraph

Trakx News

• Ryan Shea published an article this week: "1+1=3," looking at the intersection of AI and crypto two transformational technology trends.
• Trakx was quoted in the podcast “Tendances INNO” published by Docaposte from Groupe La Poste.

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.