Trakx Weekly Update: June 19, 2023
Key Crypto Market Figures
CTIs Weekly Performance
Crypto prices were little changed on the week, as evidenced by our Top 10 Crypto CTI slipping 1%. However, that performance masks what was a significant turnaround in investor sentiment, which helped push up the Trakx Top10 Defi CTI up 3%, closely followed by the Trakx Centralized and Decentralized Exchange CTIs, both of which gained 2%.
In the first half of the week there was a lingering mood of negativity as crypto players continued to assess the impact from the SEC’s decision to label many leading cryptocurrencies - but not Bitcoin and Ethereum - as securities in their lawsuits against Binance and Coinbase (we will publish a blog post on this topic later in the week so stay tuned). There was also little in the way of reprieve after the Fed announced what constituted a hawkish pause, leaving their target funds rate unchanged but signalling they were prepared to keep raising interest rates.
Midweek though the mood changed and took on a more positive tone helped by in-line US inflation data, which showed further cooling, but more significantly the news that BlackRock – the world’s largest asset manager- had filed an application to launch a Bitcoin spot ETF with the SEC. Obviously, Black Rock is not the first company to apply for such a product, but investors are much more optimistic this time around given Black Rock’s impressive track record of getting ETFs approved by the SEC, with 575 accepted and only 1 rejected. Furthermore, the fact that such a large tradfi firm is seeking to increase their exposure to crypto is a strong signal that last year’s crypto-winter was not a deal-breaker when it comes to institutional adoption of crypto that many had started to assume.
Sources: Trakx, Coingecko, Alphavantage
- BlackRock files for bitcoin ETF in push into crypto: Reuters.
- BlackRock Bitcoin ETF Is the ‘Real Deal’—Is This Finally the One?: Decrypt.
- Binance Under Investigation in France for 'Aggravated' Money Laundering: Coindesk.
- Following Robinhood, eToro Stops ALGO, DASH, MANA, and MATIC Purchases for US Customers: Blockmanity.
- Tether stops fighting freedom of information request, allows disclosure of reserve data: Cryptoslate.
- Ryan Shea was quoted in the article “FCA Right to Propose Stop to Marketing Crypto as ‘Inflation Resistant,’ UK Industry Members Say” in CoinDesk and “Bitcoin’s ‘digital gold’ narrative sees renaissance — even as pro traders balk” in DL News.
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.
Trakx is a global fintech company creating new standards for digital asset investments. Through our trading platform, we offer thematic Crypto Tradable Indices (CTIs) and customised solutions, providing sophisticated investors with a high degree of compliance, custody and liquidity.
TRAKX SAS, 10 rue de Penthièvre, Paris, 75008, FRANCE - French société par actions simplifiée Paris Trade and Companies Register number 850 626 078
Crypto Asset Service Provider (CASP) Registered with the Autorité des Marchés Financiers (AMF) under number E2021-020
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.