Goldman Sachs Head of Commodities Calls for a Decade-long Supercycle

Jeffrey Currie recommended investors “stay long” on commodities due to the supercycle, led by a structural decline in supply and a rise in demand.

Former WeWork CEO Adam Neumann is interested in investing in cryptocurrencies.

Speaking publicly for the first time in two years, at the New York Times DealBook Summit on Tuesday, Neumann said that he is currently investing through a family office in cryptocurrencies.

Neumann reportedly sold shares worth more than $700 million to start his own family office.

Cryptocurrencies have had a bullish start of the week as Bitcoin made a new all-time high just above $68,500 while Ether went to hit a new high at $4,845.

The total market cap of the cryptocurrency market has also surpassed $3 trillion.

According to Goldman Sachs’ global head of commodities research, Jeffrey Currie, commodities are in a supercycle driven by the recovery from the COVID-19 pandemic and stimulus measures boosting demand.

“We expect a structural bull market in commodities, very similar to what we saw in the 2000s or the 1970s,” said Currie at the Reuters Commodities Summit. “At its core is not only a structural decline in supply across the whole commodity complex, but it’s also a structural rise in demand,” he added.

According to Currie, this supercycle could be “multi-year, potentially a decade.”

He further cited decarbonization efforts, US-China rivalry to control future technologies, and efforts like the trillion-dollar infrastructure plan that was passed very recently to improve living standards as the reason for a rise in demand for commodities.

While Currie didn’t refer to Bitcoin, but oil, copper, and aluminum when he recommended investors to “stay long” on commodities due to supercycle, crypto market participants like Three Arrows Capital CEO and co-founder Su Zhu have been calling for a crypto supercycle throughout this year.

“Now that the world understands crypto is in a supercycle,” Zhu said, renewable mining projects are popping up all over the world, especially in poorer nations. “This creates tremendous soft power, provenance, and aligns the nonaligned to a real Third Way,” he added.

Read Original/a>
Author: AnTy

Crypto Market Dips and Over 165k Traders Get Liquidated for More Than $890 Million

But as long as central banks and governments continue to print money, which they will as Democrats are now pushing to expand the largest single spending bill in history $3.5 trillion package, investors will continue to turn to risk assets.

The cryptocurrency market has taken a drop today.

From its highs in the last 24 hours, Bitcoin has fallen more than 3.6% to as low as $50,590. The leading cryptocurrency had surged to $53,000 late on Sunday or early Monday.

As for Ether, it slid more than 6.5% to $3,675 from its 24-hour high of about $3,975.

Among the top 100 crypto assets, the biggest hit in the past 24-hours was recorded by SafeMoon of 15%, with other double-digit losses seen by Avalanche, IOTA, Horizen, Internet Computer, Filecoin, Sushi, Compound, Ethereum Classic, Polygon, Uniswap, VeChain, BAT, GRT, Cardano, Shiba Inu, Terra, Dogecoin, and Aave.

This has resulted in a 4% dip in the total market cap, which was at almost $2.47 trillion yesterday, nearing its $2.55 trillion peak, which slid down today and is currently at $2.36 trillion.

Despite the losses, Solana is up 25% and Fantom over 23%, while FTT is in the green by almost 5%.

The latest drop in the market resulted in liquidating 165,323 traders for more than $890 million, according to Bybt. But these numbers are not exhaustive as Binance does not report its full figures.

Bitcoin accounted for the most of it at $222.4 million, followed by $159.3 million in Ether and $80.8 million in Solana.

The funding rate on Bitcoin perpetual contracts has slid down some, with the highest currently at 0.0536% on Binance. The crypto asset prices have been recovering since July 21, and last week funding started trending up as prices made their way up, especially for Ether which went past $4k briefly on Friday, not far off of its $4,380 peak.

The highest funding rate on Ethereum perpetual is currently on Bybit at 0.0778% on USDT margin contracts, while the lowest is 0.01% on Binance for token margins contracts.

Meanwhile, open interest remains elevated at $19.41 billion on Bitcoin futures, gradually making its way to a $27.68 billion high. For Ethereum, OI has hit a new ATH on Monday, surpassing $11.6 billion from May 10. Today, it has seen a slight dip to $11.26 billion.

Despite the dip, the macro outlook remains bullish, with Democrats pushing to expand the largest single spending bill in history, $3.5 trillion tax and spending package.

So, as cryptocurrency exchange FTX noted in its blog titled “The everything bubble & TINA 2.0,” as long as money is being printed, the prices of everything from stocks, commodities, to venture capital, retail estate, and crypto should increase in value.

Since the COVID-19 pandemic began, already $32 trillion of fiscal and monetary stimulus — the largest stimulus as a percentage of global GDP — has been pumped into the markets while government bonds are negative-yielding.

“If global central banks and governments are going to continue to print money, investors are faced with a TINA 2.0 predicament, where cash is literally burning a hole in their pockets, pushing them not just into risk assets, but further out the risk curve, exacerbating wealth inequality along the way, leading to even further risk taking,” noted FTX.

Read Original/a>
Author: AnTy

“Eventually,” A Digital Dollar Could Be Issued But Fed Is Still A “Long Way” From Deciding On It

“Eventually,” A Digital Dollar Could Be Issued But Fed Is Still A “Long Way” From Deciding On It, Says A US Central Bank Official

Dallas Federal Reserve Robert Kaplan said the US central bank could see it eventually issuing its own digital currency, calling it the “last mile” in the digitization of the payment system.

“I would imagine in the years ahead — it’s something the Fed is actively working on now — and I can see reasons why that will eventually get developed; China is already doing their own experiment with it,” Kaplan said in a virtual appearance at Texas Tech.

Still, the US Fed is a “long way” from deciding on a digital dollar and is currently studying the issues such as its potential impact on banks.

The US central bank is working with the Massachusetts Institute of Technology for a digital dollar, which Chair Jerome Powell said is “far more important” to get right than fast.

“I think that’s one of the stronger arguments in its favor — that … you wouldn’t need stablecoins, you wouldn’t need cryptocurrencies if you had a digital U.S. currency,” Powell said recently.

Meanwhile, Fed Governor Christopher J. Waller is skeptical of central bank digital currencies (CBDCs) and believes it is rather a solution in search of a problem.

Other central banks are also taking similar steps with the European Central Bank starting a two-year investigation into the feasibility of the digital euro.

Read Original/a>
Author: AnTy

MSTR Stocks Are A “Leverage Long” Bet on Bitcoin, says MicroStrategy CEO Michael Saylor

MSTR Stocks Are A “Leverage Long” Bet on Bitcoin, says MicroStrategy CEO Michael Saylor

“We’ve been very intelligent about the way we put together the leverage,” said Michael Saylor, who is not interested in diversifying into other cryptos because he believes “holding Bitcoin for the long term is the highest upside lowest risk strategy” he can pursue.

Publicly-listed business intelligence company MicroStrategy is sitting on massive paper gains, about $1.5 billion if it sold its 105,085 BTC stash at current prices.

According to Bloomberg data, these gains are more than double the cumulative earnings posted by the company in the last 25 years. The nominal gain is also over 3x the revenue generated by the company since it first added Bitcoin to its treasury last August.

These gains are despite MicroStrategy having to write off millions in accounting charges related to Bitcoin.

According to the company’s second-quarter financial results, as of June 30, 2021, MicroStrategy had $3.653 billion in digital assets based on non-GAAP (generally accepted accounting principles) calculation with a non-GAAP cost basis of $2.741 billion.

Talking about racking up these accounting charges for the Bitcoin it is holding, MicroStrategy Chief Executive Officer Michael Saylor said they’re “leveraged long bitcoin” with a decade-long view. He said in an interview,

“Our view is that Bitcoin is an open digital property network and one day billions of people are going to hold digital property all our bitcoin on their mobile phones. And so we just want to get there before the billions of users get there and we’re patient.”

As for why people should invest in MSTR stocks rather than directly in BTC, Saylor explained that MicroStrategy is an operating company that sweeps its operating income into the leading cryptocurrency on which they are leveraged long.

“We borrowed $2.2 billion at a blended interest rate of about 1.5% interest. So if you like bitcoin, then you definitely would like the idea of owning” this leveraged position, he added.

“So I think we’ve been very intelligent about the way we put together the leverage and we’re unique in that regard. There is no publicly-traded company that’s got our bitcoin position with the ability to raise debt and buy bitcoin with debt.”

In the 2Q21 report, the company said it would continue to “deploy additional capital” in its digital asset strategy, which involves acquiring and holding BTC. Before that, the company had filed to sell a billion dollars in new stock to raise more funds to buy the crypto asset.

“I think in time, we will buy Bitcoin. It’ll just be a question of when we buy it with cash flows or with debt or with equity. And that’s all just a function of market conditions. And we try to do whatever is going to be created for our shareholders,” said Saylor regarding his future Bitcoin plans.

Overall, Saylor remains “very, very bullish on Bitcoin long term,” and what they “want to hold is a form of the non-sovereign store of value forever.”

As for looking past Bitcoin, to maybe even the second-largest cryptocurrency, Ethereum, which is the platform on which DeFi and NFT sector is flourishing and is increasingly gaining the attention of institutional investors, for MicroStrategy, “holding Bitcoin for the long term is the highest upside lowest risk strategy we can pursue.” ETH 2.81% Ethereum / USD ETHUSD $ 2,536.21
$71.272.81%
Volume 18 b Change $71.27 Open $2,536.21 Circulating 116.92 m Market Cap 296.53 b
10 h MSTR Stocks Are A “Leverage Long” Bet on Bitcoin, says MicroStrategy CEO Michael Saylor 10 h Bitcoin and Ether Print Green Candles for 10 Consecutive Days, OI on FTX & CME Rises Sharply & Faster than Binance 1 d Avalanche Launches New Cross-Chain Bridge To Connect Users With Ethereum

The company has no plans to diversify in crypto as “by holding bitcoin we’re diversified because we can see Bitcoin sitting on the balance sheets of cities, state, governments, companies, small investors, big investors, and ultimately think Bitcoin is going to be the core to big tech innovation at Apple, Amazon, and Facebook. So we just want to be holding Bitcoin,” he said.

Read Original/a>
Author: AnTy

Bitcoin and Ether Options Market Experiences a Boom

While it’s all supply and demand in the long term, in the shorter term, options flow can “definitely drive” some of the price action.

The cryptocurrency options market continues to get bigger and bigger.

Last month, an average of $1.4 billion in notional amounts changed hands every day at the largest options exchange, Deribit. This represents a 13-fold increase from last year. Institutional investors represent some 80% of flows on Deribit.

Open interest in Bitcoin totals $6.1 billion, 186.6k BTC, as of writing. Deribit accounts for 85.42% of this OI. OI on Bitcoin options has increased from less than $2 billion a year back but is down from an all-time high of $14.77 billion on March 18.

OKEx, CME, LedgerX, and FTX all have less than 4% market share, while Huobi has only 0.2%.

When it comes to Ethereum, Deribit has a 92.61% share of its OI market at 1.42 million ETH out of the total 1.53 million ETH. OKEx, Bit.com, and Huobi have a market share of 4.18%, 3.14%, and 0.05%, respectively.

image1

ETH options market had come a long way over the past year when the OI was a mere $170 million, which climbed to a peak of $7.4 billion on May 12.

As we reported, even Goldman Sachs is now moving into Ether derivatives.

This growth of the options market has money managers and retail traders selling crypto options for yield, a common strategy in mainstream assets, and a sign that the industry is growing up fast.

In this trend, options are sold for yield in a wager that crypto price swings will be lower than the market has priced in, similar to earning premiums on an insurance policy.

“In the absence of interesting yields for these alternatives, option strategies become more relevant,” said Deribit chief commercial officer Luuk Strijers.

Hedge fund manager Shiliang Tang of $130 million LedgerPrime has earned a 78% return this year on his flagship fund in the options market and running systematic strategies like price arbitrage and momentum across exchanges.

“Option flow can definitely drive some of the shorter-term price action,” Tang said. “Longer-term, it’s still supply and demand.”

Read Original/a>
Author: AnTy

NFT Volume Declines Sharply But Cheaper Sales Are ‘Extremely Important for Long Term Growth’

NFT Volume Declines Sharply But Cheaper Sales Are ‘Extremely Important for Long Term Growth’

With hype calming down and wallets trading cheaper NFTs, the market can now grow in a greed-free environment with more people and organizations coming in. It’s basically good for “more sustained” market development.

After exploding into popularity this year, non-fungible tokens’ growth has entered a slow-down phase in the past month or so.

If we look at the past 30-days statistics of the NFT space, it has experienced a huge drawdown.

Starting with the marketplace, the popular ones like OpenSea, CryptoPunks, Axie Infinity, NBA Top Shot, and Rarible have had their volume down 40% to 60% in the past 30-days. The number of traders has also dropped between 20% to 50%, as per DappRadar.

The volume on these marketplaces peaked in February. For instance, the most popular one, NBA Top Shot, did $48 million on Feb 22, and now it is down at $1.3 million though still up from less than 10k it was doing in December.

image1

This year, besides the DeFi ecosystem, the NFT market is one of the big ways the blockchain industry continues to develop.

But in May, a decrease of 5% in sales volume was recorded, the volume dropped for the second month in a row. Flow and Wax particularly drove this.

Overall, the trend of highly-priced NFTs seems to be cooling off, with relatively cheaper sales now fueling the market activity. However, such sales are “extremely important for long term growth as it gives a chance to attract masses to the industry.”

Despite the negative trend, Axie Infinity, Dark Country, and R-Planet had the best month this year so far, with their month-on-month growth of 201%, 659%, and 141%, respectively. Additionally, wallet activity and the count of sales saw an upward trend.

Well-known people like Paris Hilton, Eminem, Jack Dorsey, and many others have also joined in on the NFT trend, with more and more new organizations starting to test the NFT waters as well. Dapp Radar noted in its May report,

“It indicates that NFT hype has calmed down, at least in terms of large sales, and wallets are trading cheaper NFTs. As a result, this situation might lead to a more sustained stage of market development instead of one that’s filled with hype and greed.”

Read Original/a>
Author: AnTy

SEC Extends Approval Window On WisdomTree’s Bitcoin ETF Decision

Institutional investors have been on the long path of listing a crypto ETF in the US, and by the looks of it, the wait may be much longer.

SEC Delays ETF Decision Again

The U.S Securities and Exchange Commission (SEC) has announced that it would be extending its decision on WisdomTree’s proposed Bitcoin exchange-traded fund (ETF) listing.

The announcement made on May 26 said that this decision is anchored on a follow-up listing by the Cboe BZX Exchange for the same Bitcoin ETF, which sought to list and trade shares of the WisdomTree Bitcoin Trust.

Even though the proposal has received varied comments, the SEC says it needs more time to consider the proposed rule change and the Bitcoin ETF comments. Therefore it would be extending its decision window from May 30 till July 14, 2021.

This is not the first Bitcoin ETF that has to wait on a decision. According to an April announcement, the digital assets investment firm also saw its Bitcoin ETF proposal delayed by another 90 days. Just like the WisdomTree decision, the SEC cited rule changes as a reason behind the delay. It has NOW selected June 17, 2021, TO MAKE A FINAL decision.

The SEC has seen a flood of Bitcoin ETFs, with most institutional investors seeking approval for a Bitcoin ETF. But unlike its Canadian counterpart, the SEC has remained adamant in its decision to approve any Bitcoin ETF.

According to the top regulatory dog, crypto-assets like Bitcoin are susceptible to market manipulation and fraud. Even though a lot has changed in the past few months, with the crypto market surpassing a $2 trillion valuation, the SEC has not approved any of the eight proposals on its table.

Canada Leading The Crypto ETF Space

The SEC’s continued denial of a Bitcoin ETF is tied to the regulatory uncertainty prevalent in the US crypto space. Even as cryptocurrencies are gaining wide adoption in the American nation, federal agencies have not provided any guidelines on cryptocurrencies.

This continued ambivalence has seen the SEC lock horns with blockchain firms it feels do not have the necessary permits to operate in the US market.

Making a case about the SEC’s aggressive approach to the nascent industry, embattled digital payment firm Ripple Labs CEO Brad Garlinghouse said this is forcing many crypto startups to friendlier climes.

The Ontario Securities Commission has taken an entirely different approach. Starting with the Purpose Bitcoin ETF approval, the security commission has greenlighted over eight crypto ETFs in its region.

Not to be outdone, the Brazil Securities and Exchange Commission (CVM) also approved QR Capital’s Bitcoin ETF proposal. According to a March 19 tweet, the fund would trade under the ticker QBTC11

Read Original/a>
Author: Jimmy Aki

One River Asset Management Submits Proposal to SEC for Carbon-Neutral Bitcoin ETF

Institutional cryptocurrency fund manager One River Asset Management has joined the long list of asset managers pushing for the approval of a Bitcoin exchange-traded fund (ETF).

So far, the U.S Securities and Exchange Commission (SEC) has refused to approve any despite the onslaught of proposals.

MC02 Tokens To Represent Carbon Reduction

Putting a new twist to an already old narrative, One River aims to address Bitcoin’s current carbon emission concerns.

According to an S-1 filing submitted to the SEC yesterday, One River says its Bitcoin ETF will be targeted towards reducing Bitcoin’s carbon footprint.

This will see the One River Carbon Neutral Bitcoin Trust purchase and retire the carbon credits for the estimated carbon emissions tied to the Bitcoin the Trust will be holding.

One River would leverage on its partnership with carbon credit platform Moss. For every Bitcoin owned, One River will purchase and burn Etherum-based MC02 tokens to offset carbon emission. MC02 token is a carbon credit token created to compensate for carbon emissions.

These fungible tokens will be encrypted and tokenized using blockchain, and they will be stored on a registry managed by software firm Verra.

One River’s green ETF proposal will be listed on the New York Stock Exchange (NYSE), and Coinbase has been selected as a custodian for the Trust.

One River says the initiative is meant to enable climate-conscious crypto investors to gain exposure to Bitcoin and Ethereum without worrying about the underlying environmental risks.

Bitcoin ETFs have been a hot topic in the US of late. Following a series of rebuttals from the SEC, innovative investment firms have continued making their case. One of the most famous critics of the initiative was former Chairman of SEC Jay Clayton, who felt the crypto industry was not yet ripe for an ETF offering.

Citing market manipulation and fraud, Clayton refused every ETF filing that came across his table for the world’s oldest cryptocurrency.

However, Clayton seems to have gone beyond this pessimistic view of the burgeoning industry. He is currently an adviser for One River, joining the firm’s Academic and Regulatory Advisory Council in March 2021.

Clayton’s involvement in the ongoing filing could play out in One River’s favor following his experience with the SEC. With One River carefully targeting the energy signature of Bitcoin mining, it could herald a new era of ETF offerings in the crypto space.

Crypto Carbon Footprint: A Black Spot

The carbon footprint of proof-of-work (PoW) protocols like Bitcoin and Ethereum have been a hotly discussed topic in crypto in the past couple of weeks.

PoW consensus algorithm demands much electricity as miners or validators have to compete to solve complex mathematical puzzles. This sees much energy being utilized.

As captured by the University of Cambridge in a Bitcoin Consumption Index, the greenhouse gas emission of crypto mining has worried investors and climate activists. According to the index dedicated solely to BTC mining, PoW consumes as much as 112.57 TWh of electricity annually, more than small European nations.

This colossal energy demand has seen pro-crypto supporter Elon Musk back out of his commitment to the embattled cryptocurrency. Musk said his automobile firm would no longer accept Bitcoin as payment for its electric cars in a tweet. According to the eccentric billionaire, BTC’s carbon footprint was environmentally unsustainable, and he is ready to adopt a protocol with less than 1% of BTC’s energy demands.

The environmental implications of PoW protocols have seen crypto protocols scale up their transitioning to a proof-of-stake (PoS) consensus algorithm, which consumes less energy and is way faster. Ethereum, the second most valuable cryptocurrency, is piloting its blockchain to a PoS in the coming months.

Read Original/a>
Author: Jimmy Aki

Vermont-Based Teucrium Files Bitcoin Futures Proposal With The SEC

Popular agricultural exchange-traded fund (ETF) provider Teucrium is joining a long queue of Bitcoin ETF hopefuls.

Teucrium Makes First Crypto Filing

The filing made on Thursday to the Securities and Exchange Commission (SEC) looks to track a benchmark of Bitcoin futures contracts. If approved, the proposed ETF named Teucrium Bitcoin Futures Fund (BCFU) will be publicly tradable on New York Stock Exchange’s subsidiary Arca.

According to Teucrium, the BCFU would provide a cost-effective means through which investors can gain exposure to the volatile asset class. The Vermont-based ETF issuer also said that the proposed fund might show a disparity of figures between its shares and the spot price of Bitcoin as it is tracking the cost of the Benchmark Bitcoin Futures Contract and not directly investing in the digital asset.

This is the first crypto asset ETF proposal the agricultural ETF provider has filed. Its repository offers investors access to agricultural produce ETFs like Teucrium Soybean Fund, Teucrium Sugar Fund, Teucrium Wheat Fund, Teucrium Corn Fund, and the Teucrium Agricultural Fund.

Bitcoin ETFs have become the new mania in the US, given the surge of cryptocurrencies in the past few months. The world’s oldest cryptocurrency, which traded as low as $6,000 in 2018, has surged to over $64,000 three years after rising 90% in 2021 alone.

This exponential growth has seen the nascent industry cross the trillion-dollar mark in a few years.

Institutional investments have aided the growth of cryptocurrencies, but the underlying risks and volatility have made many others stand by the sidelines watching.

This is primarily due to the lack of regulatory oversight by the US government, and the regulatory uncertainty surrounding these virtual currencies has not helped issues.

ETFs are expected to serve as an indirect means to gain exposure to digital assets. A Bitcoin ETF would enable investors to track the price of BTC without necessarily worrying about the storage and other related complexities of owning digital assets.

Futures, on the other hand, would focus on the future price of the tracked asset.

One of the well-known futures issuers in the crypto space is the Chicago Mercantile Exchange (CME) which launched Bitcoin Futures in 2017 and Bitcoin Micro Futures in 2021. It also launched Ethereum Futures in Feb of this year.

SEC Not Ready To Approve Bitcoin ETFs

Despite the growing proposals on the SEC’s table, there has not been any indication that the regulator will approve any filing anytime soon.

The recent appointment of former MIT scholar Gary Gensler seemed promising, but the recent comments of the former crypto instructor have left little to be desired.

In a recent interview with CNBC, Gensler noted that the crypto market is highly “speculative” and needs to be regulated.

Teucrium joins a long list of ETFs like VanEck, NYDIG, and Anthony Scaramucci’s SkyCapital looking for approval.

Read Original/a>
Author: Jimmy Aki

Fund Managers See Bitcoin Outperforming in 2021 Despite Picking ‘Long BTC’ as the Most Crowded Trade

Fund Managers See Bitcoin Outperforming in 2021 Despite Picking ‘Long BTC’ as the Most Crowded Trade: BoA Survey

Hedge fund managers yet again think that “long Bitcoin” is the most crowded trade.

They must not have looked at the crypto market then, which means they might not even be involved meaning these fund managers think everyone is long on Bitcoin when no one really is.

Extending its losses from last week, Bitcoin crashed to $36,200, representing a 44.3% drawdown.

Still, the latest Bank of America fund manager survey, which took place between May 7 and 13 and polled 2216 participants, including 194 fund managers, with $625 billion worth of AUM, picked “Long Bitcoin” as the most crowded trade at 27%.

Prior “peaks” in crowded trades such as tech in Sept. 2018 and Sept. 2020, US Treasuries in March 2020, and US dollar in Jan. 2017 and Feb. 15 had been associated with relative tops, noted the report.

image1

This isn’t even the first time the fund managers have put the cryptocurrency at the top of the list. Back in January as well, “Long Bitcoin” was at the peak right before exploding to hit a new all-time high of $65,000. Before that, it topped the charts in 2017. Matt Maley, chief market strategist for Miller Tabak + Co. said,

“When an asset becomes the most crowded trade in the BofA survey, it has frequently signaled a near-term pullback in the past.”

“When you combine this with the news out of China, it’s not a surprise that Bitcoin is seeing some more weakness.”

Bitcoin has been ranked as the most crowded trade well ahead of technology stocks, ESG, thanks to the ongoing trend toward environmental, social, corporate governance, cyclical stocks, and short U.S. Treasurys.

Still, about 10% of fund managers said they think bitcoin will outperform in 2021.

Read Original/a>
Author: AnTy