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Hashdex Seeks SEC Approval for Bitcoin ETF with Unique Approach
Latin America's top crypto asset manager, Hashdex, is seeking SEC approval for a Bitcoin ETF, taking a different approach from other applicants. While many firms, inspired by BlackRock's application, have proposed surveillance-sharing agreements with Coinbase to monitor potential fraud, Hashdex intends to acquire spot Bitcoin from the regulated CME market via its existing Bitcoin futures ETF.
Hashdex suggests using the Exchange for Physical (EFP) Transactions for acquiring spot Bitcoin, rather than relying on unregulated spot exchanges, potentially offering regulators more assurance by tracking prices within a strictly regulated environment. Despite other institutions like Valkyrie, Wise Origin, and ARK 21Shares opting for the surveillance-sharing agreement route, Hashdex believes their method better addresses the SEC's concerns about market manipulation.
Robinhood Emerges as Third-Largest Bitcoin Holder with Over $3 Billion in BTC
Robinhood, the trading platform, holds over $3 billion in Bitcoin, making it the third-largest BTC holder after Binance and Bitfinex, as per data from Arkham Intelligence. The mysterious owner of this large Bitcoin wallet had previously caused speculation in the market. While some believed it could belong to BlackRock, others thought it might be crypto exchange Gemini.
Robinhood moved around 118,300 Bitcoin into this wallet over three months, and Jump Trading is the custodian of these tokens. Despite such a significant Bitcoin holding, Robinhood's crypto trading volume remains relatively low, with its Q2 crypto trading revenue standing at $31 million, a drop from Q1's $38 million.
Hong Kong's Bond Tokenization Efforts Deliver Significant Operational Improvements
In a recent report, the Hong Kong Monetary Authority (HKMA) highlighted the potential benefits of blockchain-based bonds, noting substantial operational improvements in the bond market. Under the "Project Evergreen" initiative, HKMA issued HK$800 million in blockchain-based green bonds, utilizing distributed ledger technology (DLT) for issuance and trading. This digital approach simplifies traditional bond processes, offering a unified platform for all parties and ensuring a consistent, tamper-proof record. Despite the promise, HKMA recognized the tokenization of financial assets like bonds is still nascent, facing challenges such as interoperability and the need for regulatory refinement. The HKMA noted that parts of the bond issuance process are still paper-based and called for an overhaul of established systems and regulatory fine-tuning.
Trading Desk Insights
Stock futures are on the rise as we commence the concluding trading week of a turbulent August. Since the onset of August, the S&P has declined by 4%, and the Nasdaq has shed approximately 5.3%.
Addressing attendees at the annual Jackson Hole central bank conference last Friday, Powell highlighted persistent economic growth and robust consumer expenditure. However, he emphasized a cautious approach by the central bank concerning future rate hikes. “Although inflation has moved down from its peak [...] it remains too high,” “We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”
As of this Monday morning, investors anticipate nearly a 20% likelihood of the Fed introducing another rate hike in their upcoming September.
On the economic agenda this week, market players will be closely monitoring the Fed's favored inflation metric, the personal consumption expenditure index, due on Thursday. Subsequently, focus will shift to the new non-farm payroll statistics releasing on Friday.
Moving on with the crypto market.
BTCUSDT is trading back at its previous range between 25,725 and 26,300. After a brief pop trading as high as 26,850, prices have pulled back towards the lower bound of the previous trading range. No clear direction in sight but given how close we are from the infamous support level of $25,000, it seems to be a higher risk-reward play to consider the long side with a tight stop below this recent trading range.
On Sunday evening, the 1inch Investment Fund bought a total of 6,088 ETH at the price of $1,655 for a total of $10 million. The wallet currently holds a total of $80 million worth of various digital assets.
Ethereum's daily transaction fees have descended to an 8-month trough, registering at $2.8M — the most modest daily sum since December 26th. This represents an 89% reduction from the peak of 16,720 ETH noted on May 5th. Notably, the downward trend correlates with heightened activity on Friend.tech, operating on Coinbase's L2 chain, underscoring the growing traction of scaling solutions in the market.
Based on insights from Arkham Intelligence, Robinhood (HOOD), the esteemed investing and trading platform, has consolidated a significant position in Bitcoin (BTC), with holdings exceeding $3 billion in a singular wallet over recent months. This notable accumulation positions them as the third-largest holder, trailing only the renowned crypto exchanges Binance and Bitfinex, which have assets of $6.4 billion and $4.3 billion in their respective wallets.
Economic calendar:
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US S&P Home Price Index
US JOLTS Job Openings
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US ADP Non-Farm Employment
US prelim GDP
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EU flash CPI
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Technical Charts
Disclaimer
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.
The information on which the analysis is based has been obtained from sources believed to be reliable such as, for example, the company’s financial statements filed with a regulator, company website, company white paper, pitchbook and any other sources. While Secure Digital Markets has obtained data, statistics, and information from sources it believes to be reliable, it does not perform an audit or seek independent verification of any of the data, statistics, and information it receives.
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Crypto and/or digital currencies involve substantial risk, are speculative in nature and may not perform as expected. Many digital currency platforms are not subject to regulatory supervision, unlike regulated exchanges. Some platforms may commingle customer assets in shared accounts and provide inadequate custody, which may affect whether or how investors can withdraw their currency and/or subject them to money laundering. Digital currencies may be vulnerable to hacks and cyber fraud as well as significant volatility and price swings.
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