Crypto Update: Deriving Implications
Cryptocurrency analyst, Saxo Bank
Summary: This week the entire crypto market cap rose by 9.5%, bringing the market cap to USD 355 bn. Ethereum and Bitcoin rose by 4.5% and 15% respectively. This rise resumes the advance of the market which started in April this year.
- FCA suggests a ban on crypto-derivatives
UK’s financial watchdog proposed a ban on crypto derivatives to retail investors. The regulator cited a lack of knowledge and the general financial loss for retail clients dealing in crypto-derivatives over the observed period. However, trading and marketing of the actual digital assets themselves would still be permitted under the ban. The proposal can be found here. The FCA is looking for comments during the feedback period lasting until October this year.
- Singapore suggest VAT-free transactions
The Inland Revenue Authority of Singapore (IRAS) proposed draft regulation to exempt cryptocurrency transactions from the local value-added tax. This type of legislation will help to grease the wheels of the local crypto-economy, making certain activities more profitable, and give clarity to firms operating in Singapore. This is a peek at the future of the crypto economy where regulators begin to adopt clear and favorable legislation to capture a share of the growing crypto-economy.
- Kraken CEO in favour of Tether
Jesse Powell, CEO of the crypto-exchange Kraken, spoke to the legitimacy of Tether the controversial stable coin. Tether has long been speculated to print tethers (USDT) into existence with little oversight and no collateral backing. However, Powell goes on to state that the increase in Tether is an accurate albeit small snapshot of the total fiat currency flow to exchanges. He states that changes in tether supply will likely correlate with the actual banking flows to and from exchanges. His statements give another narrative to the controversial stable coin project.
- Telegram’s token to sell at triple value
One of the largest ICOs, which has yet to show a production-ready product using it native token GRAM, will have some of its ICO tokens listed by a third party for sale at triple the previous ICO round’s price. If it sells out, it shows that investors are more than happy to purchase tokens that have minimal use case in the real world all in the pursuit of yield. Downstream investors are buying at a price that is difficult to justify, while early investors cash out at a healthy multiple. This is eerily similar to a spate of tech unicorn IPOs this year which have been hard on those who invested at the IPO, yet kind to the early investors in companies with little or no profit.
Quarterly Outlook Q1 2022
Quarterly Outlook Q1 2022: Fuelling the Energy Crisis
- The green transformation is fuelling the energy crisis. Is it time to base our energy future on reality not fantasy?
Energy crisis could turn energy stocks into secular winnerWith long-term expected returns for the global energy sector close to 10%, we look at 40 stocks that could be set to cash in.
Commodities supported by greenflation and tight supplyThe commodity sector recorded its best year since 2000 in 2021. Will the good times will keep rolling in 2022? Ole Hansen thinks so.
The bond bear market will not spare anyoneInvestors will need to prepare for the pain of a bond bear market in 2022. But are there opportunities out there, too?
Mean reversion for big 2021 moves and lots of volatilityDon't expect the Japanese yen or Chinese renminbi to stay at their overstretched valuations for long. Get the FX Outlook now.
The future in energy-intensive proof-of-work looks dimIn the midst of a global energy crisis, electricity-guzzling Bitcoin and Ethereum are set to feel the heat from politicians and investors.
Australian equities poised to benefit from the energy crisisThere may be an energy crisis, but that's fuelling a charge in the ASX. FInd out which stocks could be burning hot this quarter.
The EU’s unwise energy policyThe EU's energy crisis is one of the main drivers of inflation. Is there any relief around the corner, or is the situation critical?