June 21, 2024

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3iQ Submits Application to Launch Solana ETP in Canada

3iQ has applied to launch the first Solana exchange-traded product (ETP) in North America, called the Solana Fund. If approved, the fund will be listed on the Toronto Stock Exchange under the ticker QSOL, offering Canadian investors exposure to SOL without needing blockchain technology. 3iQ aims to provide regulated investment vehicles for both individual and institutional investors. Approval is pending, and no launch date has been set. This move follows the approval of spot bitcoin and ether ETFs in Canada in 2021. Solana, launched in 2020, is the fifth largest cryptocurrency by market cap at $61.8 billion.

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Bitcoin Mining Giant Marathon Digital Expands into Europe

Marathon Digital is expanding into Europe with a new heating project in Finland, aiming to advance the digital asset compute industry. This district heating project will help heat a town of 11,000 people by distributing heated water via underground pipes. This expansion is part of Marathon's broader strategy of geographic diversification to reduce costs and promote sustainability. Previously, Marathon launched a pilot project in Utah using landfill methane gas and is pursuing other innovative energy solutions. The company also expanded into the UAE and Paraguay and is exploring opportunities in Africa. Meanwhile, competitors like CleanSpark, Core Scientific, and Riot Platforms are focusing on expanding their US operations.

Winklevoss Twins Each Donate $1 Million to Trump Presidential Campaign

The Winklevoss brothers, Tyler and Cameron, have become notable crypto CEOs making significant presidential campaign contributions. They each donated $1 million to former President Donald Trump's campaign, as announced on X. Previously, they had contributed about $2.7 million each, mainly to the industry's super PAC, Fairshake. Tyler criticized the Biden Administration for its stance against crypto and supported Trump as the pro-crypto choice. Their donations to Trump were made in Bitcoin and directed to the Trump 47 Committee Inc., a joint fundraising committee. Before backing Trump, they had supported other Republican candidates like Vivek Ramaswamy, Nikki Haley, Sen. Tim Scott, and Florida Gov. Ron DeSantis. Their combined contributions to Fairshake amount to $5 million, contributing to its nearly $169 million total aimed at supporting congressional candidates favorable to crypto. Other prominent donors to Trump's campaign include Jeffrey Sprecher, Kelly Lynn Loeffler, Joe Ricketts, and Robert Bigelow.

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Trading Desk Insights

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Bitcoin has recently diverged from the Nasdaq's upward momentum, primarily influenced by long-term holders and miners liquidating their positions. Additionally, growing concerns about the stagnant nature of ETF inflows have contributed to this decoupling. The German government's movement of BTC worth $425 million, presumably for sale, has further pressured the market. This subdued price action has led to negative crowd sentiment for four consecutive weeks. Despite the lack of short-term growth catalysts, some traders anticipate Bitcoin could reach the $60,000 mark soon, while maintaining a bullish long-term outlook.

In the crypto options market, traders are strategically positioning themselves against the prevailing downtrend in BTC's price. Deribit has seen significant activity in call options, particularly those expiring in June at strike prices of $65,000, $68,000, and $70,000, a July expiry call at $110,000, and a December expiry call at $95,000.

US BTC ETFs continue to experience a decline, with outflows totaling $139.9 million, adding to the $900 million already withdrawn this week.

Meanwhile, the S&P 500 saw a slight decline on Friday after briefly surpassing 5,500 for the first time, impacted by Nvidia's share performance, which dropped more than 2% in early trading. Nvidia, despite hitting an all-time high on Thursday and closing over 3% lower, remains up over 150% year-to-date and briefly overtook Microsoft as the most valuable public company on Tuesday. Signs of a potentially overextended market are emerging, but it remains unclear if the AI-driven rally has peaked. Friday's trading is expected to be more volatile due to triple witching, involving the expiration of stock options, stock index options, and stock index futures options.

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Disclaimer

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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.

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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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