Trakx Weekly Update: June 12, 2023

Key Crypto Market Figures

CTIs Weekly Performance

Crypto prices were hit last week - the Trakx Top 10 Crypto CTI down 13% - after the regulatory assault against crypto continued. As evidenced by the breadth of the move lower, almost all Trakx CTIs witnessed negative performance. The weakest performance was the NFT Metaverse CTI, down 31%, after the widely anticipated release of the Apple Vision Pro “mixed reality” headset received only a lukewarm reception as investors reacted negatively to its $3,499 price tag. In contrast, the best performing Trakx CTI was the Inflation Hedge, which slipped 1.7% on the week.

In our previous weekly comment we highlighted how the US was falling behind other nations in the race to embrace digital assets. Last week they took another step backwards after the SEC announced they were suing both Binance and Coinbase for operating as unregistered securities exchanges. The legal action followed the decision by the US regulator to classify many leading cryptocurrencies as securities. While the two dominant cryptocurrencies Bitcoin and Ethereum – both of which excluded being labelled securities – were down 5% and 8% respectively, the biggest losses were seen in Solana, Cardano and Matic, which dropped around 30% on the news. In response to the SEC’s decision, the foundations of Solana, Cardano and Polygon all hit back saying that not only did they disagree with the labelling of their tokens as securities, but stated that the SEC lawsuit contained “factual inaccuracies”.

The SEC was not the only crypto regulator in the news last week. The FCA in the UK unveiled new crypto legislation, which will see the asset class treated as a “restricted mass market investment”. As such, from October 8 when the legal change comes into effect, British crypto adverts will be required to contain clear risk warnings and promotional incentives such as friend referrals will be banned.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• SEC’s Regulatory Net Now Covers $120 Billion of Crypto After Coinbase, Binance Action: Bloomberg.
• SEC sues Coinbase for breaking US securities rules: Cointelegraph.
• Robinhood ends support for Solana, Polygon, Cardano amid SEC exchange crackdown: TheBlock.
• SOL, ADA, MATIC Prices Stabilize as Foundations Hit Back on SEC Lawsuit Allegations: Coindesk.
• UK FCA Proposes Ban on Crypto Incentives in Tough New Marketing Rules: Coindesk.

Trakx News

• Lionel Rebibo shared his vision and presented Trakx in an interview by Finance Innovation (in French).
• Ryan Shea published “Pourquoi le minage de bitcoin peut accélérer la transition vers les energies renouvelables” in La Tribune.

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.