Crypto Weekly Update: Shifting institutions
Cryptocurrency analyst, Saxo Bank Group
Summary: Markets saw volatility to the upside after a period of relatively low volume, however we are not out of the woods yet in regard to the crypto bear market.
Public institutions incoming
This week, a co-founder of the digital asset fund Morgan Creek Digital, Anthony Pompliano, announced that the firm had secured a $40 million fund “anchored” by two public pensions. The fund also includes LPs, such as a hospital system, university endowment, insurance company and private foundation. Many in the digital asset investment industry are calling for an inflow of institutional capital into the crypto market. However, many institutions are gaining direct and indirect exposure to cryptocurrencies. These institutions are in the innovators and very early adopters on the institutional adoption S-curve.
XBT pauses launch of crypto basket
The Stockholm based company XBT Provider which offers exchange traded notes that track Bitcoin and Ethereum in both SEK and EUR, shelved its plan to release a basket of crypto assets. The firm cites its lack of knowledge in dealing with hardforks. A hardfork is a change to the underlying protocol that facilitates crypto assets, which is not compatible with previous versions of the protocol. This lack of knowledge could lead the fund to endorse the wrong asset in a hardfork resulting in a financial loss for the holders of the ETN. Investors should not expect more products from the XBT provider until the firm releases a statement stating otherwise. For now, investors can continue to get exposure to digital assets that include, but are not limited to, the four ETNs from XBT Provider.
CEO of Binance exchange, Changpeng Zhao, announced that the firm will release its decentralised exchange Binance DEX for public testing on 20 February. A decentralised exchange allows users to trade with each other in a peer-to-peer basis without the need to trust a third party or each other to execute a trade. The announcement of the public test net release for Binance DEX has led to the native coin of Binance, BNB, to reach all-time highs against Bitcoin. BNB will be used as the fuel for the decentralised exchange, similarly to how ETH is used to transact on the Ethereum blockchain.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.
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