Crypto Update: The financialisation of crypto
Cryptocurrency analyst, Saxo Bank Group
Summary: A rising total market cap, record futures volume on the CME, and some big moves by major financial institutions mean that the crypto space is seeing increased liquidity and the prospect of further expansion as new instruments and infrastructure enter the arena.
CME futures volume sets new record
In the past 24 hours, the CME futures market has had more volume than the top spot exchange by over $74 million or close to 13,000 BTC. Binance, the world largest spot exchange, had a volume of $294m while CME had a notational volume of $367m according to data compiled by Bitwise. This comes after the exchange saw its largest Bitcoin futures volume on record at the beginning of the month.
TD Ameritrade testing BTC trading
Litecoin inventor and founder Charlie Lee confirmed that TD Ameritrade is testing the trading of Litecoin and Bitcoin on its platform. The news broke from a quantitative analyst who clarified the broker was testing paper trading on its platform through NASDAQ. Although paper trading does not directly mean an increase for the underlying asset, it could lead to more effective price discovery should the instrument find adequate liquidity.
eToro launches new crypto initiative
The online exchange eToro recently launched a new, three-pronged approach aiming to bring more adoption to cryptocurrencies. First, the company released a new cryptocurrency exchange, eToroX, which trades the top digital assets. Secondly, the exchange launched a range of stable coins for the assets to trade against CAD, USD, GBP.JPY, AUD, CHF, NZD and EUR. Lastly, the exchange launched its proprietary digital asset wallet that allows users to send and receive digital assets as well as third-party payments. This is good news in the effort of bringing greater liquidity to digital assets.
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
- Central banks' attempts to kill inflation is a paradigm shift, which could end in a deep recession.
Tangible assets and profitable growth are the winnersWith US equities officially in a bear market, the big question is where and when is the bottom in the current drawdown?
Understanding the lack of investment appetite among oil majorsThe everything rally seen in recent quarters has become more uneven, as its strength is driven by commodities in short supply.
The pressure is on as the wind leaves the sailsWith cryptocurrencies in sharp decline, are we entering a crypto winter or is the bear market a healthy clean-up of the crypto space?
Why the Fed can never catch up and what turns the US dollar lower?Many other central banks are set to eventually outpace the Fed in hiking rates, taking their real interest rates to levels higher than the Fed will achieve.
Bank of Japan: Swimming against the tideThe Japanese economy has gone from the age of deflation to rapidly rising prices in no time, leaving the Bank of Japan in a pickle.
Green transformation detour and bear market hibernationWith the impending risk of global econonomic derailment, we share the five things investors need to consider in this new half year.
Crisis redux for the eurozone?Whether there's going to be a recession in Europe or not, the path towards a stable economy will be agonizing.
Technical Outlook: Gold, Oil and a remarkable multi-decade perspective on EquitiesThe Nasdaq bubble pattern, USDJPY resistance, crude oil uptrend losing steam and the technical outlook for USD.
China: the train of new development paradigm left the station two years agoChina is transiting to a new development paradigm, as they are hit by deteriorating terms of trade, a slower global economy and an uncertain future while continuing attempts to contain the pandemic.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)