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Frank Holmes

Crypto SWOT: European crypto-related exchange traded products have seen a boost in flows

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Commentaries & Views

Strengths

  • Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was BONE, rising 18.50%.

  • JPMorgan is seeing "limited downside" for Bitcoin after its recent rout. The current selloff in crypto markets is likely near an end, the bank reasons, with long-position liquidations "largely behind us," writes Bloomberg.  

  • Dubai-based crypto exchange BitOasis raised a round of fundings led by Indian digital-asset platform CoinDCX. Terms of the deal and valuation weren't disclosed, writes Bloomberg.

Weaknesses

  • Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was PEPE, down 16.81%.

  • Israeli police have accused businessman Moshe Hogeg and his partners of defrauding investors of $290 million in a cryptocurrency scam. This comes after a two-year investigation into the former owner of an Israeli Premier League soccer team, writes Bloomberg.  

  • A former employee at the NFT marketplace OpenSea was ordered to spend three months behind bars after being convicted in the first-ever insider-trading case involving digital assets, writes Bloomberg.

Opportunities

  • Coinbase Global is sweetening its offer to buy back debt after investors agreed to tender a third of the bonds the company was seeking. It increased its compensation for the bonds to 67.5 cents on the dollar up from the 64.5 cents it was offering when it announced the tender on August 7, writes Bloomberg.  

  • European crypto-related exchange traded products have seen a boost in flows after BlackRock applied to launch a bitcoin fund in the U.S., according to Bloomberg.  

  • Coinbase Global has taken a stake in stablecoin issuer Circle citing "growing regulatory clarity for stablecoins in the U.S.," writes Bloomberg.  

Threats

  • This month's crypto retreat may get worse if key charts for Ether prove prophetic. Ether has traced a head-and-shoulders price pattern, a technical study that signals further declines, writes Bloomberg.  

  • Crypto exchange Binance.US has faced a series of legal and financial challenges as regulators have increased their scrutiny of crypto companies of all kinds. For more than a month, customers of the crypto exchange have been unable to either deposit or withdraw dollars -- a consequence of multiple banking partners cutting ties with the platform, writes Bloomberg.  

  • The U.S. Treasury Department sanctioned Roman Semenov for providing support to Tornado Cash and the Lazarus group. The sanctions were conducted in coordination with the Justice Department which unsealed an indictment against Semenov and who was arrested, according to Bloomberg.

By

Frank E. Holmes

Contributing to kitco.com

Contact fholmes@usfunds.com
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.