Hero's Image

Banking crisis accelerates, Bitcoin’s best week since January 2021, and Hashdex rings the New York Stock Exchange opening bell

The Hash Insider

The US financial system had another tumultuous week, but crypto significantly outperformed. The Nasdaq Crypto Index (NCI) surged 26.5%—led by Bitcoin's (BTC) remarkable 31.5% price increase—and ether (ETH) rose 16.9%. The Fed announced the $25 billion Bank Term Funding Program (BTFP) to bolster the banking system's health. Later, First Republic Bank received a $30 billion rescue deposit from larger banks, while regional banks borrowed $165 billion from the Fed's discount-window credit line to prevent any additional failures. On Sunday, UBS announced the acquisition of fellow Swiss bank Credit Suisse. Crypto prices continued to climb throughout the weekend on increased investor interest in a banking system alternative/emerging digital store of value and the prospect of more liquidity being injected into the system.



Banks borrow $164.8 billion from Fed in rush to backstop liquidity

According to a Bloomberg article, banks have used over $12 billion of the $25 billion BTFP budget. This could be seen as an effective quantitative easing move, as banks can deposit government debt as collateral for a loan of 100% of face value even if market value is lower. Additionally, over $164.8 billion out of a potential $2 trillion were lent to banks from the Fed’s discount window, the traditional liquidity backstop.

Crypto rallies into weekend, bitcoin posts its best week since early 2021
This move can be interpreted as investors rediscovering an appeal for an alternative banking system, and an emerging digital money that cannot be diluted nor confiscated by a central authority. As traditional banks' opacity and fragility becomes more apparent to the public, Bitcoin’s’ decentralized and transparent nature are increasingly becoming more alluring to the public. The positive price action can also be viewed as a clear response to the increase in liquidity in the system after the Fed announced its BTFP to help banks. 


Hashdex rings the opening bell at the New York Stock Exchange

Our team at Hashdex had the honor of ringing the opening bell at the New York Stock Exchange on Wednesday. More information on the event can be found here.  


Ethereum’s Shanghai Hard Fork now has official target date

Ethereum's much-anticipated network overhaul, that will activate ETH withdrawals, is finally set to occur on April 12. Although it could lead to short-term selling pressure for ETH, the upgrade is long-term positive for the Ethereum network, as it allows many investors, especially institutional ones, to start engaging with staking, strengthening the overall network security and turning a lot more of the ETH supply illiquid in exchange for an emerging “risk-free rate” in crypto.


Uniswap version 3 goes live on BNB Chain

Uniswap, the most well-known decentralized exchange (DEX) of the decentralized finance (DeFi) ecosystem, had the latest version of its protocol successfully deployed on the BNB Chain, the second smart contracts platform by market capitalization, and the third blockchain in the market by total value locked in DeFi. This follows the deployment of Uniswap on several other smart contracts platforms and Ethereum scaling solutions, helping to integrate the liquidity in the whole of DeFi and unlocking a new frontier for one of the most important DEXs in the market to continue leading the adoption of decentralized financial services.


Visa's crypto strategy remains intact despite crypto winter

Despite rumors Visa was pulling back on its crypto plans, a spokesperson for the payments company told CoinDesk “The recent failures do not change our crypto strategy and focus to serve as a bridge, helping connect both platforms and technologies emerging in the crypto ecosystem.” 


What to Watch: All eyes are on Wednesday’s Federal Open Market Committee’s (FOMC) interest rate decision and whether the Fed will have to pause or slow down the financial tightening given the ongoing banking crisis in the US and Europe. Expectations are split between a 25 bps hike or a halt, a huge U-turn compared to the near-certainty of a 50 bps hike only a couple of weeks ago. 



This material expresses Hashdex Asset Management Ltd. and its subsidiaries and affiliates (“Hashdex”)'s opinion for informational purposes only and does not consider the investment objectives, financial situation or individual needs of one or a particular group of investors. We recommend consulting specialized professionals for investment decisions. Investors are advised to carefully read the prospectus or regulations before investing their funds. The information and conclusions contained in this material may be changed at any time, without prior notice. Nothing contained herein constitutes an offer, solicitation or recommendation regarding any investment management product or service. This information is not directed at or intended for distribution to or use by any person or entity located in any jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation or which would subject Hashdex to any registration or licensing requirements within such jurisdiction. No part of this material may be (i) copied, photocopied or duplicated in any form by any means or (ii) redistributed without the prior written consent of Hashdex. By receiving or reviewing this material, you agree that this material is confidential intellectual property of Hashdex and that you will not directly or indirectly copy, modify, recast, publish or redistribute this material and the information therein, in whole or in part, or otherwise make any commercial use of this material without Hashdex’s prior written consent. 

Investment in any investment vehicle and cryptoassets is highly speculative and is not intended as a complete investment program. It is designed only for sophisticated persons who can bear the economic risk of the loss of their entire investment and who have limited need for liquidity in their investment. There can be no assurance that the investment vehicles will achieve its investment objective or return any capital. No guarantee or representation is made that Hashdex’s investment strategy, including, without limitation, its business and investment objectives, diversification strategies or risk monitoring goals, will be successful, and investment results may vary substantially over time. Nothing herein is intended to imply that the Hashdex s investment methodology or that investing any of the protocols or tokens listed in the Information may be considered “conservative,” “safe,” “risk free,” or “risk averse.”

Certain information contained herein (including financial information) has been obtained from published and non-published sources. Such information has not been independently verified by Hashdex, and Hashdex does not assume responsibility for the accuracy of such information. Hashdex does not provide tax, accounting or legal advice. Certain information contained herein constitutes forward-looking statements, which can be identified by the use of terms such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue”  “believe” (or the negatives thereof) or other variations thereof. Due to various risks and uncertainties, including those discussed above, actual events or results, the ultimate business or activities of Hashdex and its investment vehicles or the actual performance of Hashdex, its investment vehicles, or digital tokens may differ materially from those reflected or contemplated in such forward-looking statements. As a result, investors should not rely on such forward- looking statements in making their investment decisions. None of the information contained herein has been filed with the U.S. Securities and Exchange Commission or any other governmental or self-regulatory authority. No governmental authority has opined on the merits of Hashdex’s investment vehicles or the adequacy of the information contained herein

Logo Hashdex
The material contained on this website is for informational purposes only and Hashdex, and its affiliates, is not soliciting any action based upon such material. The material is not to be construed as investment advice nor is it to be construed as recommendation, offer or solicitation to buy or sell any financial instrument or product or to adopt any investment strategy. Further, the material contained on this website does not constitute a representation that the financial instruments described therein are suitable or appropriate for any person. Past performance is not an indication of any future performance. This website may contain advertising of financial products.