Strengths
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Neiro, rising 74.64%. Nearly half of hedge funds focused on traditional asset classes now have exposure to cryptocurrencies, reports Bloomberg, as increased clarity around regulations and the launch of ETFs in the U.S and Asia draw more investors into the asset class. Among hedge funds trading in traditional markets, 47% had exposure to digital assets, up from 29% in 2023 and 37% in 2022.
- South Korea’s top financial watchdog said it would reevaluate lifting the existing ban on local spot cryptocurrency ETFs and institutional accounts on crypto exchanges. According to local news agency News1, the FSC will review the current ban.
- Renowned economist Peter Schiff poked fun at Michael Saylor recommending that the MicroStrategy boss buy the huge stash of Bitcoin that the U.S government planned to sell, writes Bloomberg. Schiff took to X to express his views on the U.S. government’s decision to sell 69,370 BTC it had seized from the dark web marketplace, the Silk Road.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was Stacks, down 11.04%.
- Caroline Ellison has agreed to transfer nearly all her available cash and assets to FTX trading to settle a bankruptcy court lawsuit and further extricate herself from Sam Bankman-Fried’s crypto empire. The deal settles litigation filed last year to recover about $30 million in payments and FTX securities, writes Bloomberg.
- An art gallery was accused of selling over $13 million worth of NFTs showing eagles in various fashions. The proposed class of 36 plaintiffs says that Eden Gallery and Gal Yosef engaged in a “rug pull” by collecting millions from investors. The suit alleges the defendants committed common law fraud, were unjustly enriched, and violated the New York business code, reports Bloomberg.
Opportunities
- The German investment outfit Lennertz & Co. is set to become one of the largest fund of funds operating in the blockchain space as the firm seeks to raise $165 million for its third crypto-focused vehicle, according to Bloomberg. As a fund of funds, rather than investing directly in portfolio companies or token deals, Lennertz invests in other firms including well-known crypto venture capitals, writes Bloomberg.
- Bitwise Asset Management said Friday that it filed to convert three of its crypto futures ETFs to a rotation strategy based on market trends. The conversion involves shifting exposure between cryptocurrencies and U.S. Treasuries, according to Bloomberg.
- Crypto exchange Binance is set to list Ethereum Layer 2 network Scrolls’s native token SCR for pre-market trading, writes Bloomberg, claiming to be the first platform to do so in an announcement earlier this week. Prior to the pre-market listing, the project will also be added to Binance Launchpool.
Threats
- Three market making firms allegedly promised to gin up an avalanche of fake trades to boost the value of NexFundAI’s cryptocurrency token, according to Bloomberg. Representatives of ZM Quant, CLS Global and MyTrade, were among 15 crypto promoters and trades charged with market manipulation and fraud in a wide-ranging probe prompted by a tip from the U.S. SEC.
- The U.S. SEC has accused Chicago-based Cumberland DRW LLC with operating as an unregistered dealer in over $2 billion of crypto assets offered and sold as securities, according to an article published by Bloomberg.
- The U.S. asked that a Wall Street rapper who pleaded guilty to a money-laundering conspiracy in one of the biggest crypto heists ever spend 18 months in prison after she provided “substantial assistance” to the government. Prosecutors recommended the sentence after Heather Morgan, who dubbed herself the “Crocodile of Wall Street,” helped investigators as part of a plea agreement last year, writes Bloomberg.
