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Fidelity International joins JPMorgan's blockchain-based tokenized network
Fidelity International has joined JPMorgan's Tokenized Collateral Network (TCN), which operates on Onyx Digital Assets, JPMorgan’s private blockchain based on Ethereum. This partnership allows Fidelity to tokenize shares of its money market fund, enhancing efficiency and stability during market stress by enabling direct collateral posting without redemption to cash. The network, which completed its first tokenized transaction last October, aims to expand tokenization across various asset classes. Fidelity's participation adds a new asset to the network, demonstrating its ongoing commitment to digital assets.
Indiana Vows Uninterrupted Energy Supply for Crypto Miners and Data Centers
Indiana is aiming to attract data centers and crypto mining operations by promising uninterrupted and low-cost energy and water supplies. Key players like Meta, Amazon, Google, Microsoft, and AboutBit are investing or planning to build facilities in the state. Although financial incentives are offered, cryptocurrency miners are excluded from these state programs. Indiana officials assure ample resources to support these industries, with Amazon committing $11 billion to the state. AboutBit has already established a sustainable crypto mining facility next to the Merom Generating Station. Bitcoin mining in the U.S. has consumed significant power in 2024, with rising costs post-Bitcoin halving, highlighting the energy-intensive nature of the industry.
Australia Cracks Down on Online Gambling with Crypto and Credit Card Ban
Australia has banned the use of cryptocurrencies and credit cards for online gambling to protect citizens from overspending. Companies failing to comply face fines up to 234,750 Australian dollars ($155,000). The ban includes credit cards linked to digital wallets and various forms of credit, although online lottery payments are exempt. The ban aligns with land-based gambling laws and took effect on June 11 after a six-month transition period. The move aims to help people manage their gambling behavior better and prevent them from shifting to less-regulated gambling types.
Trading Desk Insights
Overnight, Bitcoin experienced some downward pressure following the release of ETF data, marking the first outflows in over two weeks. Additionally, ahead of the Federal Reserve announcement scheduled for Wednesday at 2pm EST, market participants are adjusting their exposure. Bids are accumulating within the range of 66,000 to 66,500, while sell orders are also forming between 68,000 and 68,500. Given the morning surge in the stock market, there's an expectation for Bitcoin to potentially mirror this trajectory.
Examining the US BTC ETF landscape, there was a notable shift from over two weeks of inflows to outflows on Monday, totaling $64.9 million. Four providers reported outflows, contrasting with only two reporting inflows. While recent inflows appeared robust, market discussions suggest they may be driven by institutions engaging in non-directional basis trades rather than outright bullish positions. This strategy involves taking long positions in BTC ETFs while simultaneously shorting BTC perpetual futures, a tactic influenced by the current stable funding rate dynamics.
In the meme sector, a significant sell-off occurred as GameStop's losses continued to mount. The Solana-based meme token GME, which satirizes the company, saw a 25% decline, reversing a remarkable 200% rally witnessed over the past seven days.
In response to escalating inflation, Democratic lawmakers are urging the Federal Reserve to contemplate interest rate cuts. They argue that the current tight monetary policy exacerbates inflationary pressures and advocate for a more accommodative stance to support economic expansion. This plea arises amidst internal Federal Reserve debates concerning the appropriate response to inflationary trends and broader economic indicators.
On the political front, a Senate bill proposes subjecting cryptocurrencies to US sanctions, potentially impacting the global operations of the industry. However, industry stakeholders are actively engaging with policymakers to advocate for a more balanced regulatory approach and to mitigate adverse outcomes. The bill aims to address concerns regarding the illicit use of cryptocurrencies, particularly in circumventing sanctions. Supporters assert that such measures are imperative for national security, while critics caution against unintended consequences that could impede innovation and legitimate cryptocurrency usage.
In other developments, Cardano's Voltaire phase, representing the final stage of its roadmap towards establishing a fully decentralized blockchain ecosystem, is slated for June. This milestone will introduce governance features to the blockchain, enabling ADA holders to participate in decision-making processes.
Meanwhile, stock futures edged lower on Tuesday as investors await the commencement of June's Federal Reserve policy meeting. The meeting, concluding on Wednesday, will feature an interest rate policy decision and a subsequent press conference led by Federal Reserve Chair Jerome Powell. Before the Fed's decision, investors will closely monitor the consumer price index reading for May.
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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.
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