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Good morning, and welcome to First Mover. I'm Lyllah Ledesma, here to take you through the latest in crypto markets, news and insights. In today's newsletter: |
- Price Point: Bitcoin is flat, remaining above $19,000, and ether fell slightly early Wednesday as U.S. stock futures slipped ahead of another heavy day of earnings reports.
- Market Moves: ProShares' bitcoin futures exchange-traded fund, which went live a year ago, has underperformed the spot price of bitcoin, but not by as much as expected.
- In the News: Voyager Digital creditors could recover 72% of their investments if crypto exchange FTX.US' plans to acquire the bankrupt crypto platform succeeds.
- Chart of the Day: Stocks have become more volatile than bitcoin for the first time since July 2021.
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Bitcoin (BTC) was trading flat on Thursday, with little movement over the last 24 hours. The world’s largest cryptocurrency briefly dropped below $19,000 early Thursday but soon stabilized back just above at around $19,150. Ether (ETH) was down slightly on the day, at around $1,290. It is still up slightly on the week, however Top gainers on the day were Elrond’s EGLD and Huobi’s HT token, up 3%. In traditional markets, European stocks fell while yields on U.K. government bonds rose. U.S. stock futures slipped. Tesla’s shares dropped 5.4% in premarket trading after the electric-car maker reported third-quarter revenue that missed analysts’ expectations. |
Voyager's bankruptcy has left creditors in the lurch. (Danny Nelson/CoinDesk) Court documents show customers of bankrupt crypto lending platform Voyager Digital could recover 72% of their investments if a bid by FTX US to buy the lender goes through. But the sale won't close until a judge approves Voyager's payout plan, Bloomberg reported on Wednesday. |
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A Year After Debut, ProShares Bitcoin ETF Has Underperformed Market by 1.8% |
BITO underperforms bitcoin's spot price. (Arcane Research, TradingView) |
ProShares' bitcoin futures exchange-traded fund went live on the New York Stock Exchange a year ago, allowing investors to take a bullish exposure to the world's largest cryptocurrency without having to own it. Since its debut, the long BTC futures-based ETF has underperformed bitcoin by 1.79%, according to data tracked by Arcane Research. In other words, the ETF, trading under the ticker BITO, has bled slightly more than bitcoin, which has declined nearly 70% since the fund's launch date of Oct 18, 2021, according to CoinDesk data. The ETF, however, has fared well compared with market expectations. After inception, several observers were worried that BITO would underperform bitcoin by 10% to 13% due to contango bleed – the cost associated with rolling or moving the long (buy) position from an expiring contract to the next month's contract. "While bad, the underperformance was far lower than estimated based on 2021 data, forecasting 13% annualized rolling costs," Arcane Research's Vetle Lunde said in a note sent to clients early this week. |
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Biggest Gainers Biggest Losers |
Sector classifications are provided via the Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive, and standardized classification system for digital assets. The CoinDesk Market Index is a broad-market index of digital assets, weighted by market capitalization. A full description of the methodology is here. |
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Crypto Volatility Meltdown in Full Swing |
This chart shows bitcoin’s 30-day volatility has dipped below that of the S&P 500. (Source: Bianco Research, Standard & Poors, Bloomberg) |
- Stocks have become more volatile than bitcoin for the first time since July 2021.
- "This has only happened on four other occasions in bitcoin’s history, each time near a significant local bottom," Noelle Acheson, author of the Crypto is Macro Now newsletter, said in a note to subscribers.
- "Obviously, patterns don’t always repeat, but it is worth noting," Acheson added.
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Check out the CoinDesk TV show “First Mover,” hosted by Christine Lee, Emily Parker and Lawrence Lewitinn at 9 a.m. U.S. Eastern time. |
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- Paul Brody, principal and global innovation leader, Ernst & Young, and a CoinDesk contributor
- Bruno Ramos de Sousa, head of U.S. and new markets, Hashdex
- Chris Tarbell, co-founder, Naxo, and former FBI agent
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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