Prices Rebound after CPI and Grayscale Files for Three New Investment Funds
Market Update
- Crypto prices rebounded today after a cooler-than-expected CPI print of 4.9% (vs. an expected 5.0%). The index for shelter was the largest contributor to the CPI increase, followed by increases in the index for used cars and trucks and the index for gasoline. At the time of writing, $BTC is up 2.03%, and $ETH is up 1.71%. After declining for the past few weeks and erasing much of their 2023 gains, some altcoins have seen some mean reversion today. $ARB is up 7.91%, $INJ is up 6.14%, and $OP is up 3.10%. Traditional markets rose after today's CPI print - SPX is up 0.30%, and NDQ is up 0.93%. The U.S. dollar (DXY) is down 0.14% on the day.
- Grayscale announced that it formed a new entity called Grayscale Funds Trust. This is a Delaware statutory trust structure that will allow the firm to manage its older products while pursuing ETFs. It has filed for three new crypto investment funds, including the Grayscale Ethereum Futures ETF, Grayscale Privacy ETF, and Grayscale Global Bitcoin Composite ETF. The Ethereum Futures ETF will be based on Ethereum futures contracts, the Privacy ETF will track the Indxx Privacy Index (which includes Grayscale's Zcash Trust), and the Global Bitcoin Composite ETF will invest in exchange-traded products as well as securities from Bitcoin mining companies. These funds are yet to be effective and are not available for trading.
- In other news with Grayscale, the company now worries that the SEC may ban it from using Coinbase. In a letter to the SEC dated May 8th, Grayscale Investments CEO Michael Sonnenshein complained that the SEC's new proposed rules around safeguarding custody of clients' crypto funds would make it impossible for Grayscale to continue storing its crypto assets with Coinbase's custody arm. The SEC wants to make investment advisors responsible for safeguarding the custody of assets they control for clients. This would be an issue for Grayscale, which holds ~$5.4 billion in crypto with Coinbase via the Coinbase Custody Trust Company, which has the assets in offline, cold-storage wallets. Sonnenshein thinks this proposed regulation is unreasonable, stating, "As an institutional-grade asset manager, we do not ourselves custody client assets. Instead, we engage expert third-party custodians to provide this service, as is the norm for traditional asset managers. In our ten years of operation, our custodians have never experienced a loss of client assets."
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
Wednesday's sharp rally in Cosmos might be important as something which jumpstarts a rally following its recent steep decline. As daily $ATOM charts show, prices managed to stabilize right near an area of prior lows from March which is thought to be a key support level. While downtrends remain intact from last April, the ability to reverse from early lows to carve out an above-average low to high range during a time when many cryptocurrencies are following Wednesday's rally in risk assets is thought to be constructive. Movement over $11.32 would help to generate upside follow-through up to $12, and getting above this would help to exceed the entire downtrend from February. Overall, $ATOM looks like an attractive risk/reward as its decline looks to be holding prior lows, and any violation of $10 on a close would postpone the rally.
Daily Important Metrics
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All metrics as of May 10, 2023 12:22 PM
All Funding rates are in bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $547B | $28,257 | ↑ 3.00% | ↑ 71% | |
 ETH | $226B | $1,879 | ↑ 2.12% | ↑ 57% | ↓ -14% |
 ADA | $13B | $0.3723 | ↑ 2.88% | ↑ 51% | ↓ -20% |
 DOGE | $10B | $0.0741 | ↑ 2.14% | ↑ 5.68% | ↓ -65% |
 SOL | $8.4B | $21.15 | ↑ 2.82% | ↑ 114% | ↑ 43% |
 MATIC | $8.2B | $0.8849 | ↑ 1.52% | ↑ 16% | ↓ -54% |
 DOT | $6.5B | $5.49 | ↑ 3.49% | ↑ 26% | ↓ -44% |
 LINK | $3.4B | $6.63 | ↑ 2.16% | ↑ 19% | ↓ -51% |
 NEAR | $1.5B | $1.66 | ↑ 2.64% | ↑ 30% | ↓ -40% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| GBTC | ↓ -37% | $15.87 | ↑ 1.34% | ↑ 91% | ↑ 21% |
| BITW | ↓ -56% | $10.80 | ↑ 1.79% | ↑ 101% | ↑ 31% |
| ETHE | ↓ -51% | $8.95 | ↑ 1.70% | ↑ 88% | ↑ 17% |
| BTCC | ↓ -0.19% | $5.18 | ↑ 1.77% | ↑ 71% | ↑ 0.39% |
News
QUICK BITS
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Coin Telegraph Ethereum validators earn a record $46M as staking rewards rate surges Ethereum's staking rewards hit a record 8.6% post-Merge, with validators earning $46 million in the first week of May,... |
CryptoPotato Venom To Launch A Blockchain Hub With Kenyan Government [PRESS RELEASE – Abu Dhabi, UAE, May 10th, 2023] Venom Foundation has announced a strategic partnership with the Government of Kenya to establish a “blockchain ... |
REGULATION
The Block Grayscale is worried the SEC may ban it from using Coinbase Grayscale CEO Michael Sonnenshein is worried the SEC might require the company to provide its own custody for its clients' funds. Th... |
INVESTMENT PRODUCTS
Coin Telegraph Grayscale expands ETF business, puts forward 3 new crypto funds The new funds would invest in a wide range of different crypto-related assets including Bitcoin miners and privacy tec... |
HACKS, EXPLOITS, AND SCAMS
CryptoPotato Fired Coinbase Exec Caught With Insider Trading Sentenced to 2 Years in Prison Coinbase’s former Product Manager Ishan Wahi will serve a sentence more than twice as long as his brother and co-conspirator, Nikhil Wahi. |
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