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S&P's New Bitcoin, Ether Indexes Could Help Banks Move into the Crypto Market | NYDIG: Bitcoin Is Coming To Hundreds of U.S. Banks This Year
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S&P's New Bitcoin, Ether Indexes Could Help Banks Move into the Crypto Market | NYDIG: Bitcoin Is Coming To Hundreds of U.S. Banks This Year

Top stories and news you should know in the bitcoin, crypto, and decentralized markets

Jack Hermes
May 7, 2021
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S&P's New Bitcoin, Ether Indexes Could Help Banks Move into the Crypto Market | NYDIG: Bitcoin Is Coming To Hundreds of U.S. Banks This Year
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“May the Force Be with You”

High Level

  • The firm with the well-known S&P 500 index, S&P Dow Jones Indicies, announced this week that they will launch three new crypto indexes: S&P Bitcoin Index, S&P Ethereum Index, and S&P Cryptocurrency MegaCap Index

  • Running hundreds of thousands of indexes spanning major asset classes, S&P Dow Jones Indicies plans to rollout indexes tied to other top cryptocurrencies in the coming months with a broader set of indicies on the way


Drilling Down Deeper

Slowly, then all at once…

In a bold new move, one of the most recognizable and trustworthy names in capital markets is stepping into the world of bitcoin and crypto assets. Starting with the most liquid and recognized names in the space, S&P wants to launch these products ideally ahead of any approval for a bitcoin ETF for asset managers to track and monitor in a convenient as well as familiar way as they do with stocks, et cetera. Its intentions are to launch these cryptocurrency indexes in December through a partnership with institutional data provider Lukka.

BTC and ETH have the largest institutional following, so it makes sense to start with those two. The “MegaCap Index” is a market capitalization weighted index that blends the two respective indexes with exposure to both bitcoin and ether. They have been clear that while it’s early still, they are only just getting started and that S&P plans to roll out more indexes in the crypto asset space in the near future.

Banks could leverage these indexes to build over-the-counter derivatives or structured products of all different flavors. Indexes are an important component of Wall Street’s market structure because they power tradeable products like ETFs as well as serve as a benchmark for investors making allocations in a given asset or asset class. Having a firm of this stature coming to the market may indicate that the road to a bitcoin ETF is not that far away and others like it in the crypto asset space may be coming soon too.

A bitcoin ETF getting passed is now more likely and would initiate a flood of institutional money of biblical proportions, don’t say you were not warned!

TL;DR The firm formed by S&P Global in 2012 is moving forward to begin providing indicies that track bitcoin, ethereum, a mix of the two, and others by the end of year.

Read More Here


News You Should Know

“Do not be beguiled by the siren song of nominal price appreciation. At all times, you must deflate nominal returns by the amount of new money in the domestic system. Only then will winners and losers be as clear as a double-boiled abalone, fish maw, and chicken soup.”

— Arthur Hayes, Grow Up or Blow Up

Grow Up or Blow Up by Arthur Hayes

The American entrepreneur, trader, and CEO of the peer-to-peer crypto exchange and derivatives trading website, BitMex, gives his latest views on the markets from a macroeconomic point of view. His main point in the latest edition of his crypto trader digest is the Fed’s balance sheet expansion, and Hayes looks at how it has outpaced many assets and indexes. Spoiler alert, Bitcoin (BTC) and Taiwan Semiconductor (TSMC) were the only two that have performed better than their Global Financial Crisis top’s in terms of the Federal Reserve’s own balance sheet…

Read More Here

NYDIG: Bitcoin Is Coming To Hundreds of U.S. Banks This Year

According to institutional bitcoin solutions provider, NYDIG, customers of U.S. banks will soon be able to buy, hold, and sell bitcoin through existing accounts. This comes after years of banks seeing deposits being sent off to Coinbase, Galaxy Digtial, Kraken, and other crypto venues around the world by their customers. Now, they want in on the action and drive fee income as well as attract and retain new customers…

Read More Here

Uncovering the Hidden Costs of the Petrodollar by Alex Gladstein

Galaxy Digital’s new Head of Research worked hard to get this piece out before assuming his new position, and it discusses how our world reserve currency (USD) relies on oil, dictators, inequality and the military-industrial complex. Bitcoin becoming the standard is the only thing standing in the way of the dollar’s hegemony over the world’s current financial system. It may be a bit long, but this article is very comprehensive and worth the investment of time to read for an understanding of the history and nature of the U.S. Petrodollar…

Read More Here


Market Dashboard

TOTAL CRYPTO ASSET MARKET CAPITALIZATION = $2.371T
Bitcoin Dominance = 44.4%
Ethereum Dominance = 17%
(over 9,600 cryptocurrencies)
BITCOIN (BTC)
Last Close = $56,400 (as of May 6, 2021)
Market Capitalization = $1.054T
YTD Performance = +94%
ETHEREUM (ETH)
Last Close = $3,500 (as of May 6, 2021)
Market Capitalization = $404B
YTD Performance = +374%
*NEW ALL-TIME-HIGH @ $3,598 on May 6, 2021!

Bitcoin is still trading relatively sideways while consolidating in the medium term as the rest of the market is taking advantage of it as they are sucking up its market share. Ethereum has been on an absolute tear as it has been getting institutional players looking at it as viable asset that has been validated by smart contract capabilities and creator economy realization in NFTs. Crypto Assets, in general, are back in “DeFi SZN” with the bitcoin dominance falling as Cardano, DOGE, and other “ethereum killers” seeing huge inflows and daily moves to their upside. Exchange data shows there is A LOT going on in this industry as ETH 2.0 creeps closer and many players are starting to take profits into the classic names like BTC and ETH. The broad crypto asset market hit a new all-time-high yesterday just shy of $2.5T that is leaving many wondering if that marks a micro-top or indicates a higher low before shooting back up towards $3T. In the current market, altcoins have taken the spotlight away from BTC while it has quietly been waiting for another round of “price discovery” with another rally that tests $65K in the coming days or weeks ahead. With bitcoin looking as if it is nowhere near a broad top, the market participants playing with “shitcoins” just may have to learn the hard way what another wave higher in bitcoin means for the rest of the market when it rips and the whales trim their other bags to rotate back into the King of Crypto, Bitcoin.


Pictures Say 1,000 Words, Memes Say 10,000

Twitter avatar for @systemic_blisssystemic bliss® @systemic_bliss
Image

April 28th 2021

Twitter avatar for @systemic_blisssystemic bliss® @systemic_bliss
Jurassic Park Life GIF

Blockworks @Blockworks_

Evolution of money: 1) Gold 2) Metal coins 3) Paper money 4) Plastic cards 5) Electronic money 6) Cryptocurrency

April 29th 2021

Twitter avatar for @nlwNathaniel Whittemore @nlw
Generational Wealth. 🚀🌕
Image

April 30th 2021

359 Retweets1,807 Likes
Twitter avatar for @DominicFrisbyDominic Frisby @DominicFrisby
Look what someone projected onto the Bank of England last night.
Image

May 1st 2021

2,684 Retweets13,373 Likes

Positive Vibes Only

Twitter avatar for @systemic_blisssystemic bliss® @systemic_bliss
https://t.co/ex7yheYBQ7
Money In The Bank Thumbs Up GIF

Bitcoin Magazine @BitcoinMagazine

BREAKING: Bitcoin is coming to hundreds of U.S. banks this year allowing customers to buy, hold, and sell bitcoin, says bitcoin custody firm NYDIG - CNBC

May 5th 2021

Thought Provoking Tweets

Twitter avatar for @HaileyLennonBTCHailey Lennon @HaileyLennonBTC
Bitcoin is bad for the environment? Dollars are literally made out of trees

April 24th 2021

1,072 Retweets8,734 Likes
Twitter avatar for @Galactic_TraderGalactic Trader 💰⚒💰 @Galactic_Trader
Inflation first happens without raising prices Costco paper towels. Same price as the previous several times buying them. Now with 20 fewer sheets. 140/160= .875 Inflation rate: 8.75%
reddit.com/r/Wallstreetsi…
Image

April 26th 2021

1,090 Retweets4,209 Likes
Twitter avatar for @LynAldenContactLyn Alden @LynAldenContact
Broadly since the 1970s, but especially since the 1990s, the US ran structural trade deficits, which displaced part of the industrial sector. The imbalance isn't only with China, but with Europe and other developed countries as well.
Image

April 26th 2021

223 Retweets1,094 Likes
Twitter avatar for @DocumentingBTCDocumenting Bitcoin 🟩 @DocumentingBTC
JPMorgan went through the 6 stages of #Bitcoin
Image

April 26th 2021

961 Retweets3,922 Likes
Twitter avatar for @elonmuskElon Musk @elonmusk
@stoolpresidente No, you do not. I have not sold any of my Bitcoin. Tesla sold 10% of its holdings essentially to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.

April 26th 2021

13,425 Retweets99,467 Likes
Twitter avatar for @BenaskrenFunky @Benaskren
Curious if this will be reflected in the CPI! They want you to think that inflation doesn’t exist. 🙄🙄🙄. #Bitcoin
Image

April 28th 2021

972 Retweets6,583 Likes
Twitter avatar for @EricBalchunasEric Balchunas @EricBalchunas
Ironically the guy (hero?) who asked Powell about Dogecoin got Powell to give one of his most real answers IMO, admitted there is "froth" out there and that the Fed does have something to do with it.

April 28th 2021

26 Retweets192 Likes
Twitter avatar for @TenreiroDanielDaniel Tenreiro 🦧 @TenreiroDaniel
semiconductor wait times via Nikkei Asia
Image

April 29th 2021

2 Retweets4 Likes
Twitter avatar for @systemic_blisssystemic bliss® @systemic_bliss
Dam Break GIF

*Walter Bloomberg @DeItaone

US FED ACCEPTS $173.469 BLN IN DAILY REVERSE REPO OPERATION, AWARDS AT 0.00 PCT TO 38 BIDDERS - NY FED

April 29th 2021

1 Like
Twitter avatar for @LynAldenContactLyn Alden @LynAldenContact
Personal income is 🔥🔥🔥
Image

Lyn Alden @LynAldenContact

The third round of stimulus checks will go out when the income spike from the second round of checks is still pushing personal income above-trend.🔥 In contrast, the second round of checks didn't go out until the first round of checks and unemployment benefits wore off. https://t.co/ZDHukd0lgi

April 30th 2021

118 Retweets724 Likes
Twitter avatar for @louishliulouis 🇹🇼☂️🟩 @louishliu
I am still surprised most crypto VCs fail to understand this. That means more opportunities. H/t @Croesus_BTC
Image

April 30th 2021

45 Retweets139 Likes
Twitter avatar for @DeItaone*Walter Bloomberg @DeItaone
ANDREESSEN HOROWITZ PLANS $1 BLN CRYPTOCURRENCY VC FUND- FT

April 30th 2021

189 Retweets1,181 Likes
Twitter avatar for @systemic_blisssystemic bliss® @systemic_bliss
🛢💸🖨

Alex Gladstein @gladstein

1/ While doing research for my essay on the negative externalities of the petrodollar, I learned a huge amount. Much of it was shocking or surprising. Here's a thread with a few of my favorite bits of insight, with links for further reading 🧵 https://t.co/w3KQvmBQk3

May 1st 2021

Twitter avatar for @michael_saylorMichael Saylor @michael_saylor
The cost of capital is 47%. Consider the implications. "The S&P 500 index is a benchmark of American stock market performance, dating back to the 1920s. The index has returned a historic annualized average return of around 10% since its inception through 2019."
Image

May 1st 2021

562 Retweets2,851 Likes

Other Investment News

  • Andreessen Horowitz Plans $1B Cryptocurrency Fund — Reuters

  • Asian Video Game Publisher Nexon Buys $100M in Bitcoin — CoinDesk

  • Bitcoin is Key to an Abundant, Clean Energy Future — Square

  • Bitcoin Taproot Activation Has Begun; Miners Now Have 3 Months to Get on Board — CoinDesk

  • Cardano Staking Goes Live on Kraken Exchange — CoinDesk

  • Citibank Is Considering Launching Crypto Trading and Custody Services — The Block

  • CME Group Launches ‘Micro’ Bitcoin Futures Product “Third-Best Launch in CME History” — CoinDesk

  • Coinbase Set to Acquire Data and Analytics Platform Skew for Undisclosed Sum — The Block

  • Crusoe Energy Is Tackling Energy Use for Cryptocurrencies and Data Centers and Greenhouse Gas Emissions — TechCrunch

  • Crypto Custodian Finoa Raises $22M in Series A Funding — The Block

  • Crypto Exchange FTX Launches Lumber Futures After Just Two Hours of Work — Bloomberg

  • Crypto Wallet ZenGo Raises $20M to Grow Services and Team in Bullish Market — CoinDesk

  • DeFi More Disruptive to Banks Than Bitcoin, Says ING — CoinDesk

  • The Demand Side of a Crypto-Network — AVC

  • Digital Currency Group Announces Plan to Increase Purchase of Shares of Grayscale Bitcoin Trust (OTCQX: GBTC) — BusinessWire

  • Dogecoin: The Most Honest Sh*tcoin — Galaxy Digital Research

  • eBay Says Open to Accepting to Cryptocurrencies in Future, Exploring NFTs — Reuters

  • Elon Mush Issues Crypto Warning Ahead of Expected Dogecoin SNL Skit — Decrypt

  • Elon Musk’s Tesla Sold Bitcoin in Q1 for Proceeds of $272M — CoinDesk

  • Ethereum 2.0 Staking Project Lido Raises $73 Million in New Funding Led by Paradigm — The Block

  • Ethereum Is Booming in the NFT Frenzy—So Is Network Congestion — WSJ

  • Fidelity National Information Services Partners with NYDIG to Allow Hundreds of Banks to Begin Offering Customers Bitcoin Buying and Selling — Business Insider

  • Galaxy Digital to Acquire Crypto Custodian BitGo for $1.2B — Blockworks

  • Goldman Offers New Bitcoin Derivatives to Wall Street Investors — Bloomberg

  • Goldman Sachs Leads Investment in Crypto Firm Coin Metrics — Bloomberg

  • Goldman Sachs Unveils New Cryptocurrency Trading Team in Employee Memo — CNBC

  • Grayscale Investments Becomes the First-Ever Crypto Sponsor of an NFL Team After Inking an Exclusive Partnership with the New York Giants — Insider

  • How Much Energy Does Bitcoin Actually Consume — Harvard Business Review

  • JPMorgan’s Jamie Dimon Bashes Bitcoin Trading But Also Enables It — Forbes

  • JPMorgan to Let Clients Invest in Bitcoin Fund for First Time: Sources — CoinDesk

  • Marathon Mines Bitcoin Block That’s Verified As Compliant With U.S. Regulations — NASDAQ

  • Multicoin Raises $100M for New Crypto Venture Fund — CoinDesk

  • Notional Raises $10M to Grow DeFi Lending Protocol with ‘Real World’ Potential — CoinDesk

  • PayPal Has Held Exploratory Talks About Launching a Stablecoin: Sources — The Block

  • Paxos Raises $300M. Joins the Unicorn Club at $2.4B Valuation — CoinDesk

  • Proof of Reserves - Establishing Best Practices to Build Trust in the Digital Assets Industry (REPORT) — Chamber of Digital Commerce

  • SEC Chair Suggests Congress Regulate Crypto Exchanges — CoinDesk

  • Square Reports $3.51B in Bitcoin Revenue via Its CashApp for First Quarter of 2021 — The Block (Double the Coinbase’s revenue!)

  • Tiger Global and Coatue Back Bitso in $250M Series C — The Block

  • US Bank Selects Cryptocurrency Custodian, Wins Admin Role for NYDIG’s Bitcoin ETF — CoinDesk


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DISCLAIMER
An investment in any asset or strategy involves a high degree of risk and there is always the possibility of loss, including the loss of principal. Nothing written above may be considered as an offer or solicitation to purchase or sell securities or other services. The trading and investing ideas and strategies discussed above are not recommendations to buy or sell any security and are not intended to provide any investment advice and/or recommendations of any kind, but are made available solely for educational and informational purposes. Before acting on information from above, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser. Data sources are from publicly available outlets and news. Figures may have changed or incorrect, please do your own research.
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S&P's New Bitcoin, Ether Indexes Could Help Banks Move into the Crypto Market | NYDIG: Bitcoin Is Coming To Hundreds of U.S. Banks This Year
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