Abstract:While Blackrock filing for a blockchain ETF, it remains to be seen whether investors will begin to see current crypto valuations as attractive.
Amidst the current crypto market chaos, positive news appears to go unnoticed at present. The global financial markets remain focused on inflation and FED monetary policy, which has contributed to the crypto market sell-off.
Uncertainty brings opportunity, however, as the lines between mainstream and crypto continue to blur.
Earlier this month, we had reported Block Inc.‘s (SQ2) listing on the Australian Stock Exchange (ASX). For the ASX, the 20th January listing was the first crypto-related listing. It wasn’t the best of starts, however, with negative sentiment towards cryptos leaving Block Inc. down 2.34% on its 2nd day of trading.
Block Inc. isnt the first crypto-related listing, however. Other listed companies include:
Coinbase Global Inc. (COIN), traded on the NASDAQ.
Bit Mining Ltd (BTCM), traded on the New York Stock Exchange.
HIVE Blockchain Technologies Ltd (HIVE), traded on the NASDAQ.
Bitfarms Ltd (BITF), traded on the NASDAQ.
For mainstream trading platforms, exchanges are also getting in on the crypto act. This week, news hit the wires of Robinhood launching its crypto wallet beta program. While Robinhood users had previously been able to trade cryptos, the launch of the wallet will eventually mean that users can also deposit and withdraw cryptos. This was previously not possible, with investors able to only buy, hold and sell.
Blackrock Files for iShares Blockchain and Tech ETF
On Friday, Blackrock filed for the registration of the iShares Blockchain and Tech ETF. The ETF “seeks to track the investment results of an index composed of U.S and non-U.S companies that are involved in the development, innovation, and utilization of blockchain and crypto technologies”. The Fund will track the investment results of the NYSE FactSet Global Blockchain Technologies Index.
On Friday, the NYSE FactSet Global Blockchain Technologies Index slid by 10.32% to end the day at 172.33. Year-to-date, the Index was down by 24.15%
The move into the crypto ETF space is aligned with Blackrocks apparent strategy on cryptos. According to reports over the summer of 2021, Blackrock had close to $400m invested in Bitcoin (BTC) mining stocks.
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Wednesday's major data releases and macroeconomic events are expected to cause volatility to increase after another day of erratic trading in the financial markets. The Spring Budget for the UK will be released, and January Retail Sales figures for January will be made available by Eurostat. ADP Employment Change for February and January JOLTS Job Openings will be discussed later in the session on the US economic docket.
Major currency pairings are still trading in familiar ranges early on Tuesday after the erratic trading on Monday. The US economic docket for the American session will include the factory orders data for January and the ISM Services PMI survey for February. Final updates to the February PMI for the US, Germany, the UK, and the EU will also be released by S&P.
Weekend trading has gained great popularity in recent years due to the rise of online and mobile trading platforms that provide retail investors easy access to markets outside of regular working hours. For traders with Monday-Friday, 9-to-5 jobs, trading on weekends allows them to be active in markets at convenient times.
West Texas Intermediate (WTI) oil price pauses its two-day winning streak but is anticipated to conclude the week on a positive note, trading near $77.00 per barrel during the Asian session on Friday.