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Economic Calendar
Next FOMC meeting: Dec 13th 2023
- Probability of a 25bps ease → 0%
- Probability of a 0bps hike → 100%
The News Room
BlackRock, Bitwise File Updated Spot Bitcoin ETF Applications with the SEC
BlackRock, an asset management giant, has amended its S-1 filing with the Securities and Exchange Commission (SEC) for a proposed spot Bitcoin ETF, a move also mirrored by Bitwise. This development suggests ongoing discussions with the SEC, which has yet to approve any spot Bitcoin fund and has delayed all such applications received. Bloomberg Intelligence analyst James Seyffart noted the influx of these amendments, indicating active engagement between the SEC and issuers to resolve outstanding issues. The revised BlackRock filing incorporates new measures for monitoring unusual price movements, enhancing anti-money laundering compliance, and includes an audited statement from PricewaterhouseCoopers. The filing specifies that the Sponsor and the Trust will interact only with thoroughly vetted third-party service providers, ensuring a robust Know Your Customer (KYC) process. Amidst these developments, Bitcoin has experienced a significant surge, with its price increasing by over 20% over the past month. This price movement is partly driven by speculation that the SEC might soon approve a spot Bitcoin fund.
Societe Generale Issues Tokenized Green Bonds on Ethereum Network
Societe Generale, a major French bank, has issued its first tokenized green bond on the Ethereum network, demonstrating the increasing interest of traditional financial institutions in the tokenization of real-world assets (RWA). The bank issued €10 million in digital green bond tokens through its digital asset arm, SG-FORGE, which were purchased by AXA Investment Managers and Generali Investments. These bonds, aimed at financing sustainable activities, signify a shift in traditional finance towards embracing blockchain technologies such as tokenization and stablecoins. This move aligns with a broader industry trend, as highlighted by investment management firm 21.co's prediction that the market value of tokenized assets could reach $10 trillion. The digitization of these bonds offers enhanced transparency, traceability, and efficiency in transactions and settlements. Moreover, this issuance represents a step towards using blockchain for data repository and certification, particularly for ESG and impact data. In a related development, AXA IM, part of AXA, used the euro-pegged stablecoin EURCV from SG-FORGE to purchase €5 million worth of these bonds, exploring the use of stablecoins as settlement assets in digital bond transactions.
Swiss Banks and Cantons Issue Digital Bonds with Central Bank Digital Currency on SIX Digital Exchange
Swiss banks and the Cantons of Basel-City and Zurich have issued digital bonds using real CHF wholesale central bank digital currency (wCBDC) on SIX Digital Exchange (SDX), a first in the industry. This initiative, part of Project Helvetia Phase III, uses distributed ledger technology (DLT) for mainstream financial operations, with Basler Kantonalbank and Zürcher Kantonalbank as issuer agents. The move, recognized as a major milestone by David Newns of SIX Digital Exchange, demonstrates the potential of DLT in securely and efficiently settling transactions with tokenized assets, as noted by Thomas J. Jordan of the Swiss National Bank. This development, extending beyond Swiss markets, showcases the potential for enhanced efficiency and transparency in global financial transactions and highlights the evolving role of DLT-based financial infrastructures.
Trading Desk Insights
Equity futures display a mixed performance this Tuesday morning, marking a departure from the recent bullish surge witnessed on Wall Street, which appears to have lost momentum.
October saw a notable decline in job openings, reaching their lowest point in almost two and a half years. This development signals a potential shift in the historically tight labor market towards greater availability. Job openings dwindled to 8.73 million during the month, experiencing a substantial drop of 617,000. This figure falls notably short of the anticipated 9.4 million and represents the lowest level since March 2021.
Currently, the Federal Reserve finds itself in a "blackout period," translating to limited communication from central bank officials as we approach their forthcoming policy meeting scheduled for next week.
The cryptocurrency market, particularly Bitcoin, has witnessed renewed interest this morning, driven by a disappointing US jobs report that fell short of expectations. While trading volume and liquidations have eased following the weekend's price fluctuations, it is evident that this slowdown will not deter price action from surging to new yearly highs.
In a noteworthy shift, the market share of altcoins in terms of trade volume experienced a substantial spike, reaching 67% last week. This figure represents the highest percentage since March 2022, as investors continue to pivot towards riskier assets amidst an ongoing market rally. Furthermore, daily altcoin trade volume surged above $20 billion in early November for the first time since April 2023.
In other news, digital asset inflows reached a total of $176 million in the past week, resulting in a 10-week cumulative total of $1.76 billion. This marks the highest level since the launch of futures-based ETFs back in October 2021. Notable contributions to these inflows came from Canada, Germany, and the United States, while Hong Kong experienced minor outflows.
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.
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