Good morning, and welcome to First Mover. Here’s what’s happening this morning:

Market Moves: Bitcoin steady as commodity markets see heightened volatility.
Featured stories: Record GBTC discount draws institutional demand, analytics firm said. Tightening financial conditions cast a shadow on the March Fed rate hike.

And check out the CoinDesk TV show “First Mover,” hosted by Christine Lee, Emily Parker and Lawrence Lewitinn at 9:00 a.m. U.S. Eastern time. Today’s show will feature guests:

Alex Bornyakov, deputy minister, Ukraine Ministry of Digital Transformation
Darrell Duffie, senior fellow, Stanford Institute for Economic Policy Research
Lisa Mayer, founder and CEO, Boss Beauties

Today’s newsletter was edited by Omkar Godbole and produced by Parikshit Mishra.

Bitcoin ticked higher as European stocks rose and S&P 500 futures erased early losses after reports hit the wires that the European Union is mulling a large joint-bond sale to fund energy and defense expenditure.

The ongoing Russia-Ukraine war injected volatility into the global commodity market. The London Metal Exchange suspended nickel trading after prices surged more than 100% to over $100,000 per tonne in Asian trading. The move was likely a result of massive short covering by traders holding bearish positions in the commodity.

Bitcoin appears uncorrelated to commodities and is more sensitive to high-beta and tech stocks, as discussed in Monday's First Mover.

That said, a full-blown commodity crisis can put pressure on stock markets and cryptocurrencies.

According to Credit Suisse's Zoltan Pozsar, a commodity crisis is unfolding. "Russian commodities today are like subprime CDOs [collateralized debt obligations] were in 2008. Conversely, non-Russian commodities are like U.S. Treasury securities were back in 2008. One collapsing in price, and the other one surging in price, with margin calls on both regardless of which side you are on," Pozsar said in a note titled Bretton Woods III published Monday.

"After this war is over, 'money' will never be the same again... ...and bitcoin (if it still exists then) will probably benefit from all this," Pozsar added.

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Institutions appear to be scooping up shares in Grayscale Bitcoin Trust (GBTC), perhaps in hopes that the trust would receive regulatory approval to convert the close-ended fund into a spot-based exchange-traded fund (ETF).

"SEC filings show institutions building directional exposure by buying grayscale shares at a 30% discount," blockchain analytics firm Glassnode's founders said in the weekly newsletter published on March 4.

According to Vetle Lunde, market analyst at Arcane Research, several factors argue in favor of buying GBTC at the moment.

"The announced DCG buyback program of Grayscale trust shares could contribute to narrowing the discounts," Lunde told CoinDesk in a Twitter chat. "However, the big bet that would cause this bet to be particularly profitable is the outcome of GBTC's ETF filing. An approval would lead the shares to trade at net asset value (NAV) due to active redemptions."

Grayscale is a unit of Digital Currency Group, which is also the parent of CoinDesk. Read how the trust works here.

Tightening Financial Conditions Cast Shadow on March Fed Rate Hike

Risk assets, including bitcoin, have faced selling pressure well before Russia invaded Ukraine, thanks to fears of faster liquidity withdrawal of stimulus by the Federal Reserve (Fed).

And while these fears still linger, some observers are beginning to call a delay in the first Fed rate hike from March to May or June.

"IMHO, given the rapid tightening in the credit markets, extreme geopolitical tensions, dollar strength and flattening of the curve, the Fed should stay pat at March FOMC and punt the liftoff to May meeting when there is more visibility as to whether the current context is transient," macro fund manager Igor Schatz tweeted.

Goldman Sachs' global financial index has risen 60 basis points to 100.2 since Russia invaded Ukraine, signaling a rough period ahead for the worldwide economy.

In 2013, the Fed delayed the planned phased unwinding of asset purchasing program from September, citing tightening of financial conditions observed in the run-up to the September meeting as one of the key reasons to delay the taper.

In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:

European Currencies Crumble While Oil Soars on Russia Oil Ban, Mastercard and Visa Suspend Russian Operations, ConsenSys Controversy

"First Mover" hosts are joined by CoinDesk's Nikhilesh De to discuss the ongoing call from Ukraine's government urging American private businesses to cut operations in Russia. Arthur Falls, a former employee of ConsenSys, gives his side of the story in the controversy surrounding the blockchain company. Markets insights from Ben McMillan of IDX Digital Assets. Plus, how are people in Ukraine coping with war? Anton Altement of OSOM weighs in.

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.