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Legal & General's $1.5 trillion asset management division explores fund tokenization
Legal & General Investment Management (LGIM), one of the world’s largest asset managers with $1.5 trillion in assets, is exploring the tokenization of its funds using blockchain technology. This move aligns LGIM with global asset managers like BlackRock and Franklin Templeton, which have ventured into the real-world asset tokenization market. LGIM is evaluating tokenizing its liquidity funds to improve efficiency, reduce costs, and offer broader access to investment solutions. Fund tokenization has been identified as a transformative tool for enhancing liquidity and risk management within the financial industry.
Stripe Acquires Stablecoin Platform Bridge for $1.1 Billion in Crypto’s Largest Deal
Stripe has acquired stablecoin platform Bridge for $1.1 billion, marking its largest acquisition to date and the biggest deal in the crypto industry’s history, according to TechCrunch founder Michael Arrington. Bridge, which helps businesses accept stablecoin payments, had previously raised $58 million and was valued at $200 million. This acquisition signals Stripe's growing efforts in the crypto space, following recent partnerships with Coinbase and the reintroduction of crypto payments via USDC on multiple blockchains. The deal underscores Stripe’s commitment to expanding its digital currency offerings.
SEC approves NYSE and Cboe to list options trading for multiple spot Bitcoin ETFs
The SEC has granted accelerated approval for NYSE American LLC and Cboe Exchange, Inc. to list and trade options on multiple spot Bitcoin ETFs. This approval includes ETFs such as the Fidelity Wise Origin Bitcoin Fund, ARK21Shares Bitcoin ETF, Grayscale Bitcoin Trust, and several others. This move follows the SEC's initial approval of options for the iShares Bitcoin Trust in September. Bloomberg analyst Eric Balchunas noted that while this news was expected, it's a positive step, though the exact timeline for listing remains unclear.
Trading Desk Insights
Bitcoin has dipped more than 3% since Sunday, with corresponding declines in open interest and spot volume. Notably, there's now a premium on BTC and ETH perpetual contracts, signaling a shift from spot transactions to futures trading—a move typically associated with speculative activity. This trend towards leveraging futures might amplify market volatility due to the increased risk appetite.
Despite the morning's downtick, the bullish sentiment of "Uptober" holds firm. Following a recent rate cut by China's central bank, aimed at stimulating economic growth, and with U.S. equities hovering near record highs, the risk-on mood appears poised to strengthen further as the U.S. elections draw near.
Market participants are closely watching the U.S. elections, anticipating that a win for Donald Trump could usher in favorable crypto regulatory reforms. Current betting odds from Polymarket show a 62% likelihood of a Trump victory.
In regulatory news, the SEC has approved options trading for spot BTC ETFs on the NYSE, with a similar nod for Nasdaq, though launch dates remain unspecified.
ETF activity has seen significant movements: BTC ETFs have attracted $273.7 million in inflows, predominantly from Ark, while ETH inflows lag at $1.9 million. Blackrock's IBIT ETF stands out, pulling in over $1.1 billion last week—its strongest showing since March and placing it third in year-to-date inflows among ETFs.
In corporate developments, Stripe has acquired the stablecoin platform Bridge in a deal valued at $1.1 billion.
On the technical front, Bitcoin's hash rate has breached 700 EH/s for the first time, with hash prices hitting a two-month peak of $50 PH/s amid rising mining profitability, spurred by increased transaction fees and a buoyant BTC price.
Turning to the broader market, U.S. stock futures have seen a slight decline after the S&P 500's impressive weekly streak in 2024. The sustainability of these gains hinges on corporate earnings, with a critical week ahead as approximately 20% of S&P 500 firms prepare to report, including Tesla's anticipated earnings on Wednesday post-market.
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This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.
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