Genesis Capital's Muddy Bankruptcy Proceedings, Speculation Around Binance's Future Successor
Market Update
- Global markets find their footing after last Friday's rally originating from a hot May jobs report. With the debt ceiling resolved and earnings seasons concluding, investors are honing in on the Fed's meeting next week for guidance on what's next. $SPX opened higher before retracing back to even, $QQQ displayed a similar pattern and is up 0.3%, while $NDAQ is trading at a 0.6% relative to Friday's close. Digital asset markets have performed less favorably than traditional markets, with $BTC and $ETH changing hands at a 1.7% and 2.0% discount relative to the past 24 hours. BTC's relative price action from traditional markets and its exit from its $27.0k - $29.5k range reflects lackluster interest from general investors and should indicate an impending long-term accumulation zone of $21.0k - $24.0k.
- The Genesis Capital bankruptcy proceedings have elicited claims from various counterparties that they were left out of the mediation process. Defunct crypto hedge fund Three Arrows Capital (3AC) is asserting its right to partake in the bankruptcy mediation process, claiming it cannot maximize the value of the debtor's estates without its involvement. 3AC declared claims exceeding $1 billion for transfers to Genesis before the latter's bankruptcy. On the other hand, cryptocurrency exchange FTX, which had sought $4 billion from Genesis in May, is now contesting Genesis' claim that it is entitled to nothing. FTX alleges it was also left out of the mediation process, despite being among the largest unsecured creditors in Genesis' Chapter 11 cases. 3AC's proposal to extend mediation discussions will be deliberated in court on June 6, while FTX has a hearing scheduled for June 15.
- Richard Teng is speculated to be the most likely successor to Binance's founder Changpeng Zhao (CZ), following his recent appointment to oversee Binance's markets outside the U.S. Teng is a former regulator who spent stints at the Monetary Authority of Singapore and, more recently, Abu Dhabi Global Market. Teng's regulatory expertise can prove crucial for the crypto exchange in the face of mounting enforcement actions related to conduct during crypto's early years. His expanded role in Binance includes overseeing Asia, Europe, the Middle East, and North Africa. CZ, reportedly planning to reduce his ownership of Binance.US, had indicated a succession plan in place when Teng joined Binance in August 2021.
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
Following five straight weeks of gains, $ETHBTC has successfully broken out of its downtrend from last September, over seven months ago. Ethereum has continued to gain ground vs. Bitcoin since mid-April, and this looks likely to continue in the weeks/months to come. Movement back above last month's mid-month peak near $0.071 should allow for the start of a more meaningful rally to challenge last September's peaks near $0.0855, but the intermediate-term structure has begun to improve meaningfully, and $ETHBTC should be favored for additional gains. $ETH on an absolute basis, requires a rally back over $1930 to jumpstart its rally to new 2023 highs, but this looks likely in the month of June. Dips should find support near $1740, or below near $1665 before turning back up towards targets at $2141, then $2400.
Daily Important Metrics
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All metrics as of June 5, 2023 3:43 PM
All Funding rates are in bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $495B | $25,499 | ↓ -6.34% | ↑ 54% | |
 ETH | $217B | $1,803 | ↓ -5.35% | ↑ 50% | ↓ -3.46% |
 ADA | $12B | $0.3494 | ↓ -8.32% | ↑ 42% | ↓ -12% |
 DOGE | $9.3B | $0.0666 | ↓ -8.68% | ↓ -5.11% | ↓ -59% |
 SOL | $7.9B | $19.93 | ↓ -10% | ↑ 101% | ↑ 47% |
 MATIC | $7.8B | $0.8346 | ↓ -7.76% | ↑ 9.51% | ↓ -44% |
 DOT | $6.0B | $5.04 | ↓ -5.71% | ↑ 16% | ↓ -38% |
 LINK | $3.1B | $6.05 | ↓ -7.16% | ↑ 8.98% | ↓ -45% |
 NEAR | $1.4B | $1.49 | ↓ -9.60% | ↑ 17% | ↓ -37% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| GBTC | ↓ -42% | $13.66 | ↓ -5.01% | ↑ 65% | ↑ 11% |
| BITW | ↓ -55% | $10.35 | ↓ -1.62% | ↑ 93% | ↑ 39% |
| ETHE | ↓ -53% | $8.04 | ↓ -6.99% | ↑ 69% | ↑ 15% |
| BTCC | ↑ 0.07% | $4.68 | ↓ -6.59% | ↑ 54% | ↑ 0.53% |
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CoinDesk Binance Hands Rising Star Teng Key Role to Replace CEO Zhao at Largest Crypto Exchange Taking up an expanded role overseeing regional markets outside the U.S., former regulator Richard Teng wants to demonstrate Binance is “a new organization.” |
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