November 28, 2023

Markets Insights

Economic Calendar

Next FOMC meeting: Dec 13th 2023

  • Probability of a 0bps hike → 94%
  • Probability of a 25bps hike → 6%

The News Room

Circle Partners with SBI Holdings to Boost USDC Adoption in Japan

Circle, the company behind the USDC stablecoin, is partnering with SBI Holdings to enhance the circulation and use of USDC in Japan. The collaboration involves SBI VC Trade's efforts to become a registered electronic payment service, enabling USDC transactions in Japan's significant economy. Moreover, SBI Shinsei Bank will offer banking services to Circle, facilitating USDC's access for local entities. This partnership is part of SBI's digital asset strategy, which will now incorporate Circle's Web3 Services, including wallets, blockchain infrastructure, and smart contract tools. This strategic move by Circle aims to expand its footprint in Japan and the Asia Pacific region, aligning with the recent regulatory updates in Japan for stablecoin investor protection and SBI Holdings' ongoing involvement in the cryptocurrency sector.

Standard Chartered China Offering Exchange Services for Digital Yuan

Multinational bank Standard Chartered has initiated exchange services for China's central bank digital currency, the digital yuan (e-CNY), marking a significant step in CBDC integration by foreign banks. Collaborating with City Bank Clearing Services, the bank's China division is providing customers with access to the digital yuan's interconnection platform, enabling recharge and redemption functionalities. Furthermore, Standard Chartered has joined the digital yuan's business pilot, becoming one of the earliest foreign firms to do so. This move highlights the growing adoption of China's digital yuan, which has emerged as a leading CBDC, recording transaction volumes of 1.8 trillion yuan (around $250 billion) as of June this year, reflecting an increasing trend in banks facilitating transactions with the digital yuan.

Dubai Grants First Hedge Fund License to Nine Blocks Capital Management

Nine Blocks Capital Management has achieved a significant milestone in the cryptocurrency sector by becoming the first hedge fund to receive a license from Dubai's Virtual Assets Regulatory Authority (VARA), subsequently establishing Dubai as its global headquarters. The city's clear and comprehensive regulatory framework has fostered a thriving crypto business community, distinguished from the ambiguity of U.S. regulations. Henri Arslanian, co-founder of Nine Blocks, emphasizes Dubai's conducive ecosystem for crypto, highlighting the close proximity and easy collaboration with other industry players. The fund adopts a market-neutral strategy, focusing on generating returns through exploiting inefficiencies in crypto markets, such as arbitrage opportunities between perpetual swaps and the spot prices of Bitcoin and Ethereum, rather than relying on market direction.

Trading Desk Insights

Stock futures showed a slight dip on Tuesday as traders closely examined the robust gains witnessed throughout November, with the trading month approaching its conclusion. Monday witnessed a modest pullback as November's strong trading month nears its end, culminating with Thursday's closing bell. The S&P 500 is poised to wrap up the month with an impressive 8.5% increase, while the Nasdaq, dominated by tech stocks, has surged by an impressive 10.8% during November.

Investor attention will also be focused on a lineup of Federal Reserve officials scheduled to deliver speeches throughout the day. This roster includes the Chicago Fed President and several Fed Governors.

In the world of cryptocurrencies, Bitcoin continues to rebound off its 20-day moving average, with market participants eagerly buying the dips. A closer examination of the intraday chart reveals price consolidation within an upward trending channel, signaling potential further advances.

Over at the CME, the gap between BTC and ETH's "front month" (December contract) and "next month" (January contract) futures has surged to its highest level since 2021. This contango phenomenon underscores bullish sentiment in the market, reflecting a strong desire to increase long exposure.

ARK Invest has recently liquidated over $5 million worth of GBTC shares and also divested $5.3 million of Coinbase shares. This move coincided with Coinbase's price surpassing its yearly high and achieving its highest closing price since April 2022.

In a separate development, Binance founder CZ is required to remain in the United States as a federal judge weighs a motion that would compel him to stay in the country until his sentencing scheduled for February 23rd next year. Although CZ was initially allowed to return to the UAE to be with his family under the terms of his bond release, legal arguments have emerged suggesting that his departure from the U.S. could pose a flight risk, given the absence of an extradition treaty between the U.S. and the UAE. CZ faces the prospect of serving anywhere from a few months to a maximum of 10 years in prison.

Technical Charts


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.

Unless otherwise provided in a separate agreement, Secure Digital Markets does not represent that the report contents meet all of the presentation and/or disclosure standards applicable in the jurisdiction the recipient is located. Secure Digital Markets and their officers, directors and employees shall not be responsible or liable for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses, or opinions within the report.

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.

Contact Us

Sign up to receive more exclusive market coverage:

Start trading with Secure Digital Markets today by e-mailing:

Was this content helpful?
Announcing the Release of the 2023 Market Outlook
April 23, 2023
9 min
April 23, 2023
Crypto Industry Reeling After 3 Banks Collapsed Over the Weekend
March 24, 2023
9 min
March 24, 2023