November 15, 2023

Markets Insights

Economic Calendar

Next FOMC meeting: Dec 13th 2023

  • Probability of a 0bps hike → 100%
  • Probability of a 25bps hike → 0%

The News Room

Standard Chartered Unit Launches Tokenization Platform Libeara

SC Ventures, the innovation arm of Standard Chartered bank, has introduced Libeara, a Singapore-based tokenization platform. Libeara, which was part of the MAS Global Retail CBDC Challenge and contributed to digital platform prototypes for several governments, seeks to make various asset classes widely available through tokenization. Libeara is designed to assist fund managers, governments, and issuers in bringing real-world assets on-chain and issuing regulated security tokens. The venture has partnered with several companies for custody, compliance, and fiat-to-stablecoin conversion services. Moreover, Libeara is working with FundBridge Capital to create a tokenized Singapore Dollar Government Bond Fund, a pioneering project that will include a credit rating for both the assets and the token structure.

Nasdaq Files Proposal Seeking SEC Rule Change to Allow Spot Ethereum ETF

Nasdaq has submitted a filing to the SEC requesting permission to list BlackRock’s iShares Ethereum Trust, an ETF designed to track Ethereum's market performance. In the proposal, Nasdaq argues that digital assets like Bitcoin and Ethereum should be classified and regulated similarly to commodities such as gold, ensuring a uniform regulatory approach across asset classes. Nasdaq assures the SEC of its comprehensive market surveillance system, which includes membership in the Intermarket Surveillance Group (ISG) and a partnership with Coinbase to safeguard against market manipulation and fraud. The iShares Ethereum Trust, managed by BlackRock’s subsidiary, aims to accurately represent the price of Ethereum, with Coinbase Custody Trust Company appointed as the main custodian holding the majority of assets in cold storage. The Trust's value will be calculated based on the CME CF Ether-Dollar Reference Rate, with the iShares Delaware Trust Sponsor having the exclusive authority to determine its net asset value, which may deviate from U.S. generally accepted accounting principles (GAAP). Nasdaq's move underscores a growing trend of integrating cryptocurrency products within traditional financial frameworks, aiming to provide U.S. investors a regulated and secure means to gain exposure to Ethereum.

JPMorgan, Apollo Tokenize Funds in 'Proof of Concept' With Axelar, Oasis, and Provenance

JPMorgan and Apollo, two titans of traditional finance in collaboration with a handful of blockchain firms, have demonstrated a "proof of concept" for tokenizing funds on various blockchains. The project, part of Singapore's Project Guardian, showcased how asset managers could manage large-scale client portfolios, execute trades, and automate the management of tokenized assets using JPMorgan’s Onyx Digital Assets, interoperability layer Axelar, infrastructure provider Oasis Pro, and Provenance Blockchain. Oasis Pro enabled the tokenization of assets including Apollo funds on Provenance Blockchain, facilitating wealth managers to purchase and rebalance their positions in tokenized assets across multiple chains. This initiative underscores the growing interest of traditional finance in blockchain technology, marking a significant step in integrating decentralized finance into mainstream financial operations.

Trading Desk Insights

U.S. stock futures edged upwards on Wednesday as traders aimed to extend the robust rally observed in the previous session, driven by more positive inflation data despite the Producer Price Index (PPI) falling short of expectations. Wall Street remained attentive to developments in Washington, where lawmakers endeavored to avert a government shutdown. On Tuesday, the S&P 500 surged by 1.9%, while the Nasdaq exhibited a remarkable 2.4% ascent, marking their most favorable performance since April.

In the crypto market, optimism has been on the rise, fueled by heightened anticipations of the SEC granting approval for a BTC spot ETF. However, as we approach yet another approval deadline set for Friday, the timing of such an approval has become increasingly uncertain. Commencing from November 17, the comment period for three filings, including the Global X Bitcoin Trust, Hashdex Bitcoin ETF, and Franklin Bitcoin ETF, will reopen, implying that any decision, be it approval or denial, will not materialize until at least November 23. Our focus has been on the January 10th date, marking the final deadline for ARK's approval.

Bitcoin faced mounting pressure yesterday afternoon due to the lack of new information regarding the ETF, prompting market participants to capitalize on short-term profits. This led to a liquidation spree, with a 65% increase in 24-hour liquidations totaling $350 million, including a substantial $200 million liquidation around 1 pm EST. Since Saturday, Bitcoin has lagged behind Nasdaq by 9%, and it appears this trend may persist in the short run until we encounter additional bullish catalysts. This retracement could present an enticing entry opportunity for those who missed the initial upward move.

Technical Charts


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