You are about to leave the website of SDM Inc. ("SDM") and will be redirected to the website of SDM Financial Inc. ("SDM Financial"), a US affiliate of SDM providing crypto derivatives trading services.
Please be aware that SDM Financial's services are not intended for, and should not be used by, residents of Canada.
By clicking on the link to SDM Financial's website, you acknowledge and agree that: You are not a Canadian resident.
SDM Financial is not registered with any regulatory authority in Canada and is strictly prohibited from entering, or otherwise engaging in, any transactions with Canadian residents.
Non-Canadian residents who deal with SDM Financial do so at their own risk, and SDM will not be held liable for any losses or damages incurred as a result.
By clicking 'I Accept' below, you confirm that you have read, understand, and agree to the above . If you do not agree, please select 'I Decline' and you will be redirected back to SDM's website.
Crypto Custody Specialist Taurus Receives FINMA Approval to Offer Tokenized Securities to Retail Investors in Switzerland
Swiss cryptocurrency custody and trading firm Taurus has received approval from FINMA, Switzerland's financial regulator, to offer tokenized securities of unlisted companies to retail investors via its TDX marketplace. This move significantly democratizes access to tokenized shares, previously limited to professional investors. TDX supports transactions in cryptocurrencies, as well as in Swiss Francs, Euros, and U.S. Dollars. Several Swiss firms, including Investis, la Mobilière, Qoqa, Structured Commodity & Corporate Finance, Swissroc, and Teylor (a fintech lending firm already issuing tokenized shares with Taurus), have opted to use TDX for share issuance. The expansion of TDX to retail investors enables them to participate in both primary and secondary market activities related to unlisted firms. While currently focused on Swiss residents, TDX may extend its services to international investors, subject to compliance with respective trading segment and issuer requirements. This development reflects the growing trend in financial markets towards leveraging blockchain technology for more efficient and accessible trading and investment opportunities.
BIS Confirms Tokenization Project as part of Six Projects for 2024
The Bank for International Settlements (BIS) Innovation Hub has unveiled its 2024 work program, highlighting six new projects focused on areas like cybersecurity, financial crime, central bank digital currencies (CBDCs), and green finance. Among these, a notable initiative is Project Promissa, a collaborative effort with the Swiss National Bank and the World Bank. This project aims to create a proof-of-concept for a blockchain-based platform for managing digital tokenized promissory notes, enhancing their management and transparency. Additionally, the BIS Innovation Hub's Hong Kong Centre will continue Project Aurum, which explores privacy in retail CBDC payments, collaborating with academia and privacy regulators. This project, conducted jointly with the Hong Kong Monetary Authority, focuses on developing a comprehensive CBDC system including both a wholesale interbank system and a retail e-wallet system, and investigates two types of tokens withink this interbank framework: an intermediated CBDC and a stablecoin backed by CBDCs.
FTX's $1 Billion GBTC Sell-off Contributes to $2 Billion Exodus from Grayscale Bitcoin Trust
Investors have withdrawn over $2 billion from the Grayscale Bitcoin Trust (GBTC) following its conversion to an exchange-traded fund (ETF) this month, with a significant portion attributed to FTX's bankruptcy estate selling approximately 22 million shares. This mass exodus contrasts with the inflows seen in newly approved spot Bitcoin ETFs from entities like BlackRock and Fidelity. FTX, a major player in the crypto market, had capitalized on the price disparity between Grayscale trust shares and the underlying Bitcoin asset value. At the time of its ETF conversion, GBTC had nearly $30 billion in assets, but the approval of new ETFs and FTX's liquidation significantly impacted its value. Bitcoin's price has declined since these developments, suggesting a market adjustment following initial high expectations for ETFs as a mainstream investment vehicle. FTX's complete divestment from GBTC, valued at nearly $1 billion, is a notable event in the crypto market, reflecting the ongoing adjustments and realignments in the aftermath of FTX's bankruptcy.
Trading Desk Insights
Bitcoin experienced a further decline on Tuesday, reaching a session low of $38,500, marking its lowest level since the start of December. Notably, prices have dropped by 20% since the introduction of spot Bitcoin ETFs in the U.S. on January 11th. Some attribute the short-term selling pressure to significant outflows from the Grayscale Bitcoin Trust (GBTC), which has seen approximately $2 billion in exits since January 19th, while ETFs from BlackRock and Fidelity have each recorded inflows exceeding $1 billion.
Despite the recent challenges, there remains an optimistic outlook for Bitcoin reaching a new all-time high later in the year. Funding rates continue to signal a bullish sentiment, with dominant buyer activity. The absence of a mass unwinding of bullish perpetual futures and negative funding rates indicates ongoing buyer dominance, and leverage remains tilted toward the bullish side.
Observing changes in BTC trading patterns across U.S. platforms post the spot ETF approvals reveals a notable spike in hourly trade volume around the U.S. market close, typically occurring between 3-4 pm EST. This pattern is expected to persist with increasing ETF inflows, particularly as institutional clients, active in ETF trading, operate during U.S. hours.
In the broader financial landscape, U.S. stock futures showed marginal changes on Tuesday, following the Dow Jones breaking 38,000 for the first time. However, investors are contemplating the sustainability of these gains, especially considering the recent tech-centric rally, particularly in stocks like Nvidia, while broader market participation remains lackluster.
Crypto Charts
Macro Charts
Disclaimer
This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.
The information on which the analysis is based has been obtained from sources believed to be reliable such as, for example, the company’s financial statements filed with a regulator, company website, company white paper, pitchbook and any other sources. While Secure Digital Markets has obtained data, statistics, and information from sources it believes to be reliable, it does not perform an audit or seek independent verification of any of the data, statistics, and information it receives.
Unless otherwise provided in a separate agreement, Secure Digital Markets does not represent that the report contents meet all of the presentation and/or disclosure standards applicable in the jurisdiction the recipient is located. Secure Digital Markets and their officers, directors and employees shall not be responsible or liable for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses, or opinions within the report.
Crypto and/or digital currencies involve substantial risk, are speculative in nature and may not perform as expected. Many digital currency platforms are not subject to regulatory supervision, unlike regulated exchanges. Some platforms may commingle customer assets in shared accounts and provide inadequate custody, which may affect whether or how investors can withdraw their currency and/or subject them to money laundering. Digital currencies may be vulnerable to hacks and cyber fraud as well as significant volatility and price swings.
Contact Us
Sign up to receive more exclusive market coverage:
.png)
