Adjusting to a Post-FTX World
Adjusting to a Post-FTX World
A couple of weeks ago, we discussed several critical risk vectors remaining in the market and provided our take on each matter. Our near-term view was that it was more likely than not that most of the contagion from the implosion of FTX had been sifted through, but due to the unknown status of Digital Currency Group, investors might not be getting paid enough for any risk assumed in the immediate term. Fast forward to today, and we are still waiting for a resolution to the DCG saga. We offer a brief update on DCG below, but for the most part, we discuss the shape of the market nearly a month removed from the downfall of FTX.
Everyone Had the Same Idea
We were not the only ones who took a less active approach to the market over the past couple of weeks. Following the exit of one of the largest market makers in crypto and the freezing of billions in customer deposits in FTX, we have understandably witnessed markets become devoid of volume.
Below we can see that the 7-day moving average for $ETH volume across all exchanges is at its lowest in recent history. While some of this inactivity could be attributed to the holiday last week, the primary driver is likely a lack of participation due to uncertainty and the recent incineration of invest...Reports you may have missed
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Adding RON and IMX As a Different Flavor of ETH-beta and Gaming Exposure (Core Strategy Rebalance)
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RESEND: Bitcoin ETF Equilibrium Price Dynamics: ETF likely to drive significant rise in daily demand
BY POPULAR DEMAND, WE ARE RE-SENDING THIS BITCOIN PRICE IMPACT OF SPOT ETF REPORT FROM JULY 24, 2023 The Bitcoin spot ETF was finally approved. And we are seeing the surge in price of Bitcoin because of attractive supply and demand dynamics.We received multiple requests to resend this report from July 24, 2023 which looked at supply and demand dynamics if a spot ETF was approved.In short, we believe a...
FLOWS BEGET MORE FLOWS We have recently discussed the potential return of crypto being correlated with equities due to the new category of market participants entering the fold. However, price action this week suggests that inflows into the BTC ETFs may be throwing water onto that theory. It seems apparent that, at least in the near-term, that the ETF flows narrative is gaining steam, and it is likely that the...
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