Trading Desk Market Update: 11/17

17.11.2021

Bitcoin Miners

BTC is currently trading around $60,600 and ETH around $4,250.  Notable gainers in the last 24 hours are SAND, MIOTA, and CRO.  The global crypto market cap is $2.76T, flat over the last day.  DeFi Total Value Locked is ~$255b and BTC dominance is around 44%.

Metaverse-related tokens have materially outperformed during this recent market dip, as exemplified by SAND and MANA’s 44% and 29% respective seven-day increases compared to BTC’s 10% weekly decline.  SAND in particular is up 33% today alone after announcing The Sandbox Alpha, an upcoming event that will allow players to explore the ecosystem’s metaverse for the first time and earn rewards in the process.  Metaverse tokens broke out last month after Facebook revealed its vision to bring the metaverse to life and changed the company’s name to Meta to better reflect this focus.  There has been a significant amount of news flow since, such as DappRadar’s recent report showing 55% of all industry unique active wallets are connected to games. 

In exchange news, Crypto.com has signed a $700m, 20-year deal to rename the famous Staples Center, home of the NBA’s LA Lakers and LA Clippers, to the Crypto.com Arena. Meanwhile, Coinbase’s CFO said on the company’s recent earnings call that it has invested over $180m into digital assets (different than what’s held for operational purposes), with a fair value of $541m and with 46% in BTC, 25% in ETH, and 28% in other as of September 30th. This comes after the company revealed in August plans to investment $500m of cash and 10% of net income into digital assets on its way to becoming vast majority, if not 100%, crypto over time. Lastly, decentralized exchange aggregator 1INCH moved forward with the creation of the 1inch Network DAO Treasury and commenced Stage 2 of its governance implementation.  The DAO will govern the 1inch network via 1INCH token holders staking their tokens in order to vote on protocol parameters and governance.

In regulatory news, The Digital Commodities Exchange Act, which would establish a voluntary regulatory regime for crypto exchanges under the CFTC, has returned to the US Congress as a draft as its authors begin to solicit industry comments.  However, the acting head of US banking regulator the Office of the Comptroller of the Currency Michael Hsu stated that federal agencies are close to releasing a joint statement describing the results of their “crypto sprint” review conducted earlier this year.  Hsu signaled the conclusions from the OCC, Federal Reserve and FDIC would be far from industry friendly, saying “the agencies are approaching crypto activities very carefully with a high degree of caution.”

2021.11.17

This material is a product of the GSR Sales and Trading Department. It is not a product of a Research Department, not a research report, and not subject to all of the independence and disclosure standards applicable to research reports prepared pursuant to FINRA or CFTC research rules. This material is not independent of the Firm’s proprietary interests, which may conflict with your interests. The Firm trades instruments discussed in this material for its own account. The author may have consulted with the Firm’s traders and other personnel, who may have already traded based on the views expressed in this material, may trade contrary to the views expressed in this material, and may have positions in other instruments discussed herein. This material is intended only for institutional investors. Solely for purposes of the CFTC’s rules and to the extent this material discusses derivatives, this material is a solicitation for entering into a derivatives transaction and should not be considered to be a derivatives research report.This material is provided solely for informational purposes, is intended for your use only and does not constitute an offer or commitment, a solicitation of an offer or comment (except as noted for CFTC purposes), or any advice or recommendation, to enter into or conclude any transaction (whether on the indicative terms shown or otherwise), or to provide investment services in any state or country where such an offer or solicitation or provision would be illegal. Information is based on sources considered to be reliable, but not guaranteed to be accurate or complete. Any opinions or estimates expressed herein reflect a judgment made as of the date of publication, and are subject to change without notice. Trading and investing in digital assets involves significant risks including price volatility and illiquidity and may not be suitable for all investors. GSR will not be liable whatsoever for any direct or consequential loss arising from the use of this Information. Copyright of this Information belongs to GSR. Neither this Information nor any copy thereof may be taken or rented or redistributed, directly or indirectly, without prior written permission of GSR. Not a solicitation to U.S. Entities or individuals for securities in any form. If you are such an entity, you must close this page.