THE RUNDOWN
The Rundown Powered By Arcane Research
• Digital asset investment products saw outflows totaling US$39m with total assets under management (AuM) now at their lowest point since February 2021, at US$36bn, down 59% from the November 2021 peak.
• Uncertainty related to the collapse of 3AC, corresponding defaults, and lending platform Celsius’ halting of withdrawals as they face a potential bankruptcy is leading to a vicious withdrawal cycle on other centralized lending platforms. (Read article)
• The first U.S. inverse BTC ETF has grown to become the second-largest BTC-related ETF four days after its launch. (Read article)
• Bitcoin keeps ranging between its $20k support and the 200-week moving average of $22,500. (Read article)
• The 3-month annualized futures basis on the offshore futures market has reached all-time lows while CME trades at a substantial premium. (Read article)
A Deep Bite
Crypto’s Credibility Problem – and How to Solve It
Some individuals – those who aren’t deterred by damning headlines and well-publicized hacks – are willing to take the risk when the rewards could be so high. But for the majority who have yet to take the plunge, security is at the forefront of their minds, and it’s becoming clearer with every passing report that this is the biggest barrier to mainstream adoption. So, if the power of the blockchain has any hope of reaching the masses, individuals and companies alike must believe that what they’re doing with their money and their clients’ money is safe. More here
Weekly Bites
Multiple Crypto Exchanges Are “Secretly Insolvent,” Warns SBF
The good news is that there hasn't been any other noteworthy (i.e. Celsius, 3AC, Terra/Luna, etc.) blow ups as a result of the recent liquidity crisis. This has, for the most part, kept crypto asset prices relatively flat since our last issue as seemingly everyone in the space is trying to find their footing again. The bad news is that, at least according to FTX's Sam Bankman-Fried (SBF), there are many others still scrambling for liquidity and last-minute bailouts. In other words, this crisis may still be far from over... More here
Crypto Tax Cheats Likely to Get Relief as US Crackdown Hits Snag
Under a law passed by Congress last November, crypto brokers and exchanges are supposed to begin recording their clients’ detailed transaction data at the start of next year. The move would not only help the IRS catch "tax cheats" – which will likely have large impact on the nation’s growing tax gap – but also make crypto tax reporting for the industry as a whole a bit more "standardized." More here
Goldman Sachs Leading Investor Group to Buy Celsius Assets:
Goldman Sachs is looking to raise $2 billion from investors to buy up distressed assets from troubled crypto lender Celsius. The proposed deal would allow investors to buy up Celsius’ assets at potentially big discounts in the event of a bankruptcy filing, the people said. Goldman Sachs appears to be gauging interest and soliciting commitments from Web3 crypto funds, funds specializing in distressed assets and traditional financial institutions with ample cash on hand, according to a person familiar with the situation. More here
Crypto lending platforms experiencing a massive stress test
Uncertainty related to the collapse of 3AC, corresponding defaults, and lending platform Celsius’ halting of withdrawals as they face a potential bankruptcy is leading to a vicious withdrawal cycle on other centralized lending platforms. More here
European Crypto Exchange Bitpanda Cuts Staff by Hundreds:
Austria-based crypto trading platform Bitpanda is slashing its headcount to ensure sustainability, the company said in a Friday blog post. Bitpanda’s founders said the firm needs to let employees go as it scales down due to market conditions. The company said it is aiming for a target headcount of 730. It has just over 1,000 employees, according to LinkedIn. More here
Survival of the fittest: Which public bitcoin miners are the best prepared to survive the bear market?
The public bitcoin miners are fighting to survive the ruthless bear market. The weakest will die, but the survivors will rise from the ashes stronger than ever. This article analyzes which miners are the best prepared for the fight. More here
Tweet Of The Week
1/ Question of the week: what is happening in crypto markets right now? Answer: A historic wash out of leverage and risk capital across the space.
— Peter Smith (@OneMorePeter) June 24, 2022
