September 7, 2023

Markets Insights

Economic Calendar

Next FOMC meeting: Sept 20th 2023

  • Probability of a 0bps hike → 93%
  • Probability of a 25bps hike → 7%

The News Room

Ark Invest and 21Shares Apply for First Spot Ethereum ETF in the United States

In collaboration with 21Shares, Ark Invest, led by Cathie Wood, has submitted an application to the U.S. Securities and Exchange Commission (SEC) for an ether-based ETF, named the ARK 21Shares Ethereum ETF. This ETF aims to provide investors direct exposure to Ethereum, with its price based on the CME CF Ether-Dollar Reference Rate – New York Variant, and it will trade on the Cboe BZX Exchange.

The trust has designated 21Shares as its sponsor, Delaware Trust Company as the trustee, and Coinbase Custody Trust Company as the custodian, while Ark Investment Management will assist in marketing. Notably, this ETF will avoid investing in derivatives. The SEC, however, hasn't approved any spot crypto fund yet, consistently delaying decisions on these filings. Ark Invest's Brett Winton recently emphasized the importance of the U.S. embracing crypto for its long-term strategic interests.

Google Loosens Ad Guidelines for NFT Game Providers

Google has revised its policies on cryptocurrency-related advertisements, specifically broadening the scope for non-fungible token (NFT) games. Starting from September 15, NFT game advertisements that don't encourage gambling will be permitted, given they have Google's certification. To qualify, the games cannot involve staking or wagering of NFTs for potential wins of other assets, and they cannot endorse simulated casino activities or real money gambling destinations.

Google highlighted that compliant blockchain-based NFT games, where players can buy in-game items, are acceptable. Advertisers also need to align with Google’s recently updated gambling policy, which mandates not targeting users below 21 and includes a compulsory warning about gambling addiction risks. In case of policy violations, Google will issue a warning before taking action against an account. Reflecting a growing interest in Web3, Google established a dedicated division for blockchain in 2022 and launched a Web3 startup program in April 2023.

Hong Kong Advances to Second Phase of Testing for China's Digital Yuan

Hong Kong has advanced to the second phase of technical testing for China's central bank digital currency, the digital yuan (e-CNY). The Hong Kong Monetary Authority and the People's Bank of China have successfully conducted initial tests for cross-border payments using the e-CNY.

The current trial phase incorporates a broader spectrum of Hong Kong banks and examines the integration with the Faster Payment System, a platform introduced by HKMA in 2018 for cross-bank transfers using the recipient's phone number or email. Notably, this system reported a substantial year-on-year increase in HKD payments for Q2. The digital yuan aims to optimize cross-border retail transactions between the two regions, enhancing connectivity in the Greater Bay Area of Guangdong, Hong Kong, and Macau. Eric Jing, CEO of Ant Group, emphasized the digital yuan's potential in industrial internet, underscoring its programmability feature, which facilitates cross-chain interactions and automation.

Trading Desk Insights

The S&P 500 and Nasdaq witnessed a decline for the fourth consecutive day on Thursday, driven by Wall Street's renewed focus on the Federal Reserve's stance on interest rates and the anticipation of further hikes within the year.

Apple stocks experienced a 3.3% decrease following a Bloomberg News article suggesting that China may expand its restrictions on iPhone usage within its state-owned enterprises and agencies. Notably, technology and semiconductor equities trailed behind, with notable drops in Tesla, Nvidia, and Advanced Micro Devices, each descending approximately 3%.

As we continue to trade sideways, BTCUSDT keeps building volume at these lows. The positioning of market participants continue to show less interest as evidenced by the declining BTC open interest on most exchanges. Interestingly enough, the open interest and volume of BTC and ETH derivatives on the CME has continued to rise MoM, showing how the ETF narrative has brought in more traditional institutional players.

In other news, investors are getting ready for a few token unlocks including Aptos on September 11th worth $25 million as well as ApeCoin on September 16th worth $54.4 million. Also, Ex-FTX executive Salame is expected to plead guilty to criminal charges today over the collapse of the cryptocurrency exchange. Finally, Cboe's BZX exchange is hoping to launch the first spot ETH ETF in the U.S., filing the paperwork for products tied to Ark 21Shares and VanEck.

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