ETHE Discount Shrinking, ETP Flows Remain Strong

Despite underwhelming retail sales data, positive earnings reports are driving equity markets upward. The increase in advance retail sales for June was a mere 0.2% month-over-month, falling below economists’ predicted 0.5% increase. Nevertheless, the QQQ index has seen a 60 bps rise, and the SPX index a 52 bps increase. Cryptoassets are diverging from equities, not mirroring the rally spurred by solid earnings. At present, most cryptoassets are on a downward trend, with BTC dropping below $30k and ETH below $1.9k. This decline can be partially attributed to the surge in short-term rates and the bounce in the US Dollar Index (DXY) to back over 100. Amid this landscape, one of the few winners is SUI, a high-throughput blockchain network that has recently seen an increase in usage, up 8% on the day.