Grayscale Launching Decentralized AI Fund, CFTC & FTX Agree to Settle
Crypto Market Update
U.S. equities are moving sharply lower amid China trade fears after the Biden administration stated it’s considering imposing severe restrictions on chipmakers if China continues receiving access to advanced semiconductor technology. The SPY 0.42% has dropped below $560 while the QQQ 0.47% is showing more pronounced losses, falling to $484. Crypto is relatively flat, with BTC -0.22% trading near $65k. Bitcoin ETF flows continue their positive streak, posting the eighth consecutive day of inflows on Tuesday, totaling $422.5 million. ETH 4.25% is slightly positive, with ETHBTC gaining approximately 0.40%. Worldcoin (WLD) has been a top performer this week as Tools for Humanity, the lead development group, has extended the unlock schedule of 80% of its tokens from three to five years. The unlock period is set to begin next week, with tokens vesting linearly from then until 2029.
Grayscale Decentralized AI Fund
Grayscale has announced the creation of the Grayscale Decentralized AI Fund, seeking to provide investors with exposure to protocols in the crypto artificial intelligence sector. Grayscale believes decentralized AI leveraging blockchain technology can help mitigate the risks emerging with the proliferation of centralized AI services by distributing ownership and governance. The fund will consist of decentralized AI assets falling into three categories: protocols building decentralized AI services such as chatbots and generative AI, projects attempting to solve centralized AI problems like deep fakes and misinformation, and underlying infrastructure critical to AI development, including data marketplaces and storage solutions. The current assets included in the fund include Bittensor (TAO 1.15% ), Filecoin (FIL -0.08% ), Livepeer (LPT -0.37% ), Near (NEAR -1.76% ), and Render (RNDR), with each asset’s weighting seen below.
CFTC and FTX Estate Agree to $12.7 Billion Settlement
After months of negotiations, the CFTC and FTX Bankruptcy Estate have agreed to a $12.7 billion settlement, pending approval from a judge. The CFTC has agreed to receive nothing from the estate if FTX complies with its reorganization plan, foregoing the pursuit of a monetary penalty in light of FTX insiders’ convictions and its desire to accelerate FTX’s emergence from Chapter 11. Of the $12.7 billion, $8.7 billion is defined as restitution, with the other $4 billion serving as disgorgement, subordinated to prior payment of all creditors. The settlement allows the estate to focus on its May reorganization plan, in which creditors would receive at least 118% of their reported claims upon court approval. Some creditors have opposed the plan, favoring receiving lost assets in-kind, which would likely equate to higher amounts, with all creditors’ votes due by August 16th. A hearing regarding the proposed settlement is set for August 6th, and a court decision on the repayment plan is due in October.
Technical Strategy
LDO 4.90% has begun to show encouraging signs of stabilizing following the push back above prior June lows at $1.774. Its decline from mid-May into July managed to hold May lows before beginning its most recent technical bounce this past week. Structurally, given the success in reclaiming last month’s $1.774 bottom, a push back higher to test $2.20 looks possible in the weeks ahead. However, until $2.20 can be surpassed, LDO still remains within a five-month downtrend and requires strength sufficient to exceed this current downtrend before projecting higher in the months to come. While minor consolidation might occur again ahead of a trend breakout, it’s important to hold $1.50 in the weeks to keep it’s stabilization attempts intact.
Daily Important Metrics
All metrics as of 2024-07-17 12:00:24 All Funding rates are in bps Crypto Prices
All prices as of 2024-07-17 11:50:10 Exchange Traded Products (ETPs)
News
|
Reports you may have missed
CRYPTO MARKET UPDATE Crypto prices have rebounded slightly following yesterday's sharp selloff, with BTC -0.22% climbing back above $61,000 and SOL -1.54% moving above $145, while ETH 4.25% is lagging, trading around $2,400. Among today's outperformers is SUI -6.35% , which appears resilient despite a $115 million token unlock yesterday. Oil is partially retracing its early rally, gold is lower on the day, and yields are moving higher, suggesting at least a temporary reversal of...
MARKET UPDATE Markets are selling off in the first day of Q4, fueled by geopolitical fears as tensions rise in the mid-east. The SPY 0.42% and QQQ 0.47% have dropped 1.14% and 1.92%, respectively, while the VIX has surged over 17%. XAU and DXY are gaining as investors move towards safe-havens. Crypto assets have also sold off, with BTC -0.22% briefly dropping below $62k and ETH 4.25% below $2.5k. Among altcoins, SUI -6.35% is showing...
MARKET UPDATE August PCE data came in slightly below expectations, with Core MoM PCE reading 0.1% vs. 0.2% expected, reaffirming that inflation is receding steadily. Debates over the size of the Fed’s next rate cut have already begun, with odds for 50bps increasing slightly after the PCE data, rising to 52.1% compared to 49.3% yesterday. Stocks are relatively flat to end the week, with the SPY 0.42% gaining 0.14% and the...
MARKET UPDATE The PBoC has announced a fresh package of economic stimulus, weighing a $142 billion injection into top domestic banks and pledging to stabilize the housing and stock markets. Domestically, durable goods data came in better than expected, and GDP met expectations, providing more confidence in the stability of the U.S. economy. Crypto is responding positively to both developments, as BTC -0.22% has gained to $65.3k and ETH 4.25% to $2,650,...