Trakx Weekly Update: July 3, 2023

Key Crypto Market Figures

CTIs Weekly Performance

It was another good week for crypto-assets as reflected in the Top10 Crypto Index gaining 4%, bringing the year-to-date performance to 43%. Within our family of CTIs the best performer was our DEX CTI, gaining 7%, while the weakest performer was the NFT Metaverse CTI, which was down 0.4% on the week.

Unlike the previous week, where the gains were concentrated on the market leaders, over the past seven days the gains were greatest in the second tier market cap cryptocurrencies. The best performing cryptocurrency over this timeframe was Compound (ranked 78th in terms of market cap). The news that the protocol had filed an application with the SEC seeking to establish a new company (“Superstate”) to create a short-term government bond fund, whose ownership will be recorded on Ethereum’s blockchain, sent its token price up over 80%. This rally helped to propel the Trakx Lending CTI, which has Compound as a constituent, up over 4%.

Another notable performer on the week was the Bitcoin spin-off Bitcoin Cash (ranked 14th). Its price rallied over 50% on news that it would be one of only four cryptocurrencies to be listed on the new EDX Markets, a crypto exchange backed by large Tradfi firms such as Citadel, Charles Schwab and Fidelity. Litecoin one of the three other cryptocurrencies to be listed on EDX, which ranks 9th in terms of market cap and is a constituent of the Trakx Top10 Crypto CTIs, saw its price jump 28% amid anticipation that their listing will attract new investors to crypto.

Finally, somewhat sooner than expected, the UK’s Financial Services and Markets Act 2023 was given Royal Assent last week. Amongst other things, the new law recognizes cryptocurrency trading as a regulated activity in the UK. According to the government, the legislation will help promote the use of new technology in financial services and support the safe adoption of crypto-assets.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• Fidelity races BlackRock to a Bitcoin ETF — but Cathie Wood’s Ark is first in line: DLnews.
• Compound Founder Forms 'Superstate' to Create Bond Fund With Ethereum for Record-Keeping: Coindesk.
• Citadel-Backed Exchange Sparks Jump in Bitcoin-Offshoot Coin: Bloomberg.
• New UK Law Recognizes Crypto Trading as Regulated Financial Activity: Decrypt.

Trakx News

• Trakx and Finance Innovation organised a roundtable discussion in Paris on the digital asset and cryptocurrency ecosystem. Here is the recorded video (in French).
• Yann le Floch, Trakx Digital Banker, participated in the 6th edition of SRP France, where he discussed the importance of ESG in structured products.
• Ryan Shea and Mohamed Yangui were interviewed by Structured Retail Products on how Trakx sees the digital asset space evolving Trakx: towards the institutionalism of crypto and Trakx: MiCA will bootstrap the entire industry. 

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.