Cryptos: Vinter, Hashdex launch first crypto risk parity momentum play

However, inflows, product launches and developments continue at a steady pace.

Crypto investment provider Hashdex has partnered with crypto index provider Vinter to launch the Hashdex Crypto Momentum Factor exchange-traded product (ETP).

To attract institutional investors, it is necessary to create innovative products - Jacob Lindberg, Vinter

The new ETP tracks the Vinter Hashdex Risk Parity Momentum Index, co-developed by Hashdex and Vinter, and contains 12 large-cap crypto assets that are eligible on key European exchanges and exhibit relatively higher price momentum.

The ETP limits the risk contribution of any single underlying asset and is rebalanced monthly. At launch, and as of the index’s last rebalancing, the four largest constituents accounting for 53% of the portfolio are Tron (17.94%), XRP (12.28%), Polygon (12.21%) and Binance Coin (10.63%).

The allocation provides unique exposure compared to a market cap index - the top four allocations represent the crypto-assets with the best relative risk adjusted price performance, with the weights determined ‘in a quantitative and rules-based manner, providing exposure to assets that other more traditional approaches do not offer’.

‘To attract institutional investors, it is necessary to create innovative products. The [index] allocates to the top performing crypto assets, while limiting the risk,’ said Jacob Lindberg (pictured), CEO of Vinter. 

Bruno Sousa, head of new markets at Hashdex said: ‘There is an increasing appetite from investors to invest in high momentum crypto assets.’

The Hashdex Crypto Momentum Factor ETP is listed on the SIX Swiss Exchange, EuroNext and Xetra.

ETP AuM up 7.5% despite crypto deleveraging

Worldwide crypto-based ETP assets under management (AuM) rose 7.5% in October, according to a report by Fineqia International, ‘closely mirroring the 7% rise in the cryptocurrency market value during the same period’.

The total AuM increased to US$25.3 billion from US$23.5 billion between 1 Oct. and 1 Nov. across 159 listed ETPs, according to Fineqia Research. The ETPs include exchange-traded funds (ETFs) and exchange-traded notes (ETNs). The overall value of cryptocurrencies rose 7% to above US$1 trillion in October - it remained, however, less than half of its January peak value of US$2.2 trillion.

On a year-to-date (YTD) basis, the AuM of crypto ETPs decreased 57%, similar to the 54% drop in the broader crypto market. Despite a 46% increase in the number of ETPs to 159 in October compared with 109 in January, their overall AuM was US$25.3 billion compared with US$58.5 billion in January. The price of bitcoin dropped by 56%, while etherum decreased by 57% during the Jan-Oct. 2022 period.

Fineqia CEO Bundeep Singh Rangar (above-right): ‘The price of cryptocurrencies remains the pole star. It is the sole driver of ETP AUM values at the moment, not capital inflows or new product offerings.

ETPs holding bitcoin (BTC) rose five percent to US$16.8 billion from US$16 billion in the month of October. This was similar to the seven percent increment in the BTC price, which reached about US$20,600 on November 1 compared with US$19,300 a month earlier. ETPs representing alternative coins increased 4% and those with a basket of cryptocurrencies rose eight percent.

The AUM of ethereum (ETH) denominated ETPs increased the most at 16%, piggybacking the cryptocurrency's price rise of 21% to almost US$1,600 from US$1,300. Their AUM grew to US$6.5 billion from US$5.4 billion.

All references are in US dollars and all cryptocurrency prices are sourced from CoinMarketCap.

Singapore crypto exchange adds Ribbon, partners with Bloomberg

Singapore-based digital asset exchange Crypto.com has launched the native token of Ribbon Finance (RBN), a suite of DeFi protocols that aims to help users access crypto-structured products, to support trading around the low-cap decentralised finance (DeFi) altcoin.

RBN, the 179th-ranked crypto asset by market cap, is down more than 93% from its all-time high of US$5.54, recorded in October 2021.

The launch continues to expand the exchange’s suite of tradeable crypto assets despite facing public headwinds in recent months - the company laid off 260 people, or about 5% of the company’s workforce in June.

The cryptocurrency platform has also announced that its research reports have been integrated into and made available through Bloomberg Terminal.

‘The cryptocurrency market is constantly evolving, and access to current data and insights is critical to better understand the industry,’ said Eric Anziani (above-right), chief operating officer at Crypto.com.

Reports uploaded to the Bloomberg Terminal will include weekly analysis on latest market movements, on-chain analytics such as crypto adoption estimation, user survey findings, and feature reports on trending themes.

BitMEX rollsout token for true believers, OG traders, whales and hodlers

Crypto derivative exchange BitMEX, has introduced the BMEX Token, the first ever Initial Exchange Offering (IEO).

The cryptocurrency exchange equivalent to a stock launch or IPO signals an inflexion point as the crypto exchange will refocus on its crypto derivatives products core business.

This shift in focus and the launch of the native BMEX token will allow BitMEX ‘to optimise its trading services to reward its most loyal customers’ while enabling them to bet on the crypto exchanges. BitMEX users can now trade BMEX/USDT on the spot exchange, totalling 11 trading pairs for traders to buy, sell and trade cryptocurrencies.

Additionally, two new perpetual swaps, BMEX/USDT and BMEX/USD, will be available on the platform for instant trading.

Benjamin Usinger (above-right), chief marketing officer for BitMEX, said: ‘We have been careful to adapt to market conditions, and the decision to launch BMEX now is timely as we would like to contribute to growth in liquidity and revitalise the crypto markets.

‘BMEX is a token for the true believers, the OG traders, the whales and hodlers.’

The BMEX Token is available for trading starting 11 November at 8am SGT.

Spirit Blockchain makes changes at the top

Canada’s Spirit Blockchain Capital has announced the appointment of Lewis Bateman (right) as the new CEO of the company.

Bateman will succeed Erich Perroulaz and assume his responsibilities. Perroulaz will remain as president and founder of Spirit Blockchain.

A former capital markets equity sales trader at Merrill Lynch, Bateman has managed day-to-day operations at digital asset providers, asset management firms, and primary exchanges. He has a significant experience on the buy-side, the sell-side, and at a price execution organisation.

Previously, Bateman held executive management positions at Horizons ETFs Management and First Asset (CI Financial). He was a director at the Toronto Stock Exchange (TMX Group), in charge of attracting new foreign participating trading members into the Canadian market as well as looking after the interests of the exchange's clients, both domestically and internationally, in the placement of structured product distributors.

The Spirit team expects blockchain innovations to drive future developments in computing and Web3 and believes in digital assets' potential to restore faith and pave the way for novel forms of governance in which communities make critical choices about the future of their networks.