Risk assets faced challenges as Fed Chair Powell reiterated the likelihood of future rate hikes during his Congressional testimony. Crypto assets, however, had a remarkable week driven by positive news within the crypto sphere. The Nasdaq Crypto Index (NCI) closed the week 12.8% higher than the previous week, primarily fueled by bitcoin (BTC), which saw a 14.5% increase, while ether (ETH) rose 8.9%. The surge was driven by BlackRock’s filing for a spot BTC ETF and more interest from traditional financial players entering the crypto market. Notably, bitcoin's dominance in the overall crypto market cap crossed the 50% mark for the first time since April 2021. This could be important, as BTC, by far the largest market cap, often leads market rallies. Bitcoin surpassed $30k for the second time this year and even broke through $31k, reaching a level not seen in over a year.
WisdomTree, Invesco, Valkyrie & Bitwise follow BlackRock with spot bitcoin ETF applications
This news drove most of the upside last week as it indicates the growing acceptance and recognition of bitcoin as a legitimate investment asset. A spot bitcoin ETF could attract a broader range of investors, including retail and institutional, to the cryptocurrency market.
Crypto exchange backed by Fidelity, Schwab, and Citadel launches
The launch of EDX Markets is a significant move in the US as it brings credibility and legitimacy to the crypto market as these major TradFi players recognize the potential and value of crypto as an asset class while expanding the infrastructure available for investors.
Fed Chair Powell says crypto "appears to have staying power"
Amidst the institutional moves seen last week, Chair Powell fielded optimism for crypto markets by stating that “crypto appears to have staying power as an asset class” and that “we see stablecoins as a form of money” as he testified before lawmakers Wednesday.
Deutsche Bank applies for crypto custody license
The largest bank in Germany is another important TradFi player entering the crypto market by applying for a digital asset custody license in Germany to offer services to institutional investors and clients.
SEC approves first leveraged bitcoin futures ETF
A leveraged ETF that utilizes bitcoin futures contracts to amplify the returns of a benchmark index is set to be released on the Chicago Board Options Exchange. The approval of BITX brings a new product to the US digital asset market as the SEC has yet to approve a spot ETF and it pursues legal action against two major cryptocurrency exchanges.
JPMorgan activates euro payment settlement with JPM Coin
JPMorgan is utilizing its JPM Coin and blockchain technology to facilitate the settlement of euro payments. This development is significant for crypto investors as it highlights the growing adoption and integration of cryptocurrencies and blockchain by traditional financial institutions, potentially increasing their utility and value.
From Hashdex’s CEO: Finding the right crypto allocation in a traditional portfolio
In an opinion piece for Pensions & Investments, our CEO Marcelo Sampaio discusses a new formula designed to determine the right crypto exposure based on risk appetite and how we find substantial gains in risk-adjusted returns when replacing equities for crypto, ranging from a 0.05 to 0.25 Sharpe ratio increase.
Uniswap V4: Enhancing customization and efficiency in the DeFi landscape
The upcoming iteration of the popular decentralized exchange brings enhanced flexibility and cost savings. This update helps strengthen the investment thesis for Uniswap’s token UNI (currently over 30% of the CF DEFI index) and supports the growing interest in DeFi solutions.
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