The crypto market has lost two-thirds of its value in a year and has been roiled by the collapse of large market participants triggering a domino effect, but developments continue as the industry, seeks to overcome the tumult of the past few weeks.
FTSE Russell has launched today its first multi asset, market cap index series covering the investable digital asset market.
The newly launched FTSE Global Digital Asset Index Series, built in association with Digital Asset Research (DAR), covers eight indices from large to micro-cap, and is the second FTSE Russell index series based on FTSE DAR Reference Price data.
[We have] built a rigorous and transparent framework, underpinned by robust governance and comprehensive data to meet investor needs - Arne Staal, FTSE Russell
The indices monitor 24/7 data and hundreds of exchanges to define the investable universe, segmented by circulating weight. The FTSE Global Digital Asset Index Series market cap range includes the FTSE Digital Asset Index (Large, Mid); FTSE Digital Asset All Cap Index (Large, Mid, Small); FTSE Digital Asset Total Cap Index (Large, Mid, Small, Micro); FTSE Digital Asset Large Cap Index; FTSE Digital Asset Mid Cap Index; FTSE Digital Asset SMID Cap Index; FTSE Digital Asset Small Cap Index; and FTSE Digital Asset Micro Cap Index.
‘As transparency in this asset class becomes more important than ever [we have] built a rigorous and transparent framework, underpinned by robust governance and comprehensive data to meet investor needs, both where they are now and as they prepare for change in this market,’ said Arne Staal (pictured), CEO at FTSE Russell.
The FTSE Global Digital Asset Index Series was developed to provide the data infrastructure and governance to serve client investment and analysis needs. The selection process starts with vetting exchanges that contribute to FTSE Russell’s pricing data - the process sets standards across 21 criteria to assess the multiple factors – technical, operational, regulatory, security, transactional, custodial, and more – that impact institutional quality.
This is followed by further vetting of individual assets, and finally filtering in real time.
Crypto platform seeks fresh funding
Matrixport Technologies is seeking substantial funding at a higher valuation amid the FTX fallout.
According to reports, the leading Asian crypto lender eyes US$100m in funding at a valuation of US$1.5 billion. So far, the firm led by Jihan Wu (right) has already secured commitments from lead investors for half of the targeted funding value. However, the blockchain-servicing platform is still looking for investors for the remaining US$50 million of the round.
The Matrixport funding quest comes in the aftermath of the shocking collapse of crypto exchange FTX which has reignited conversations regarding lax regulation and the adequate protection of client crypto assets.
Matrixport said it oversees US$5 billion worth of trades every month and disclosed that it has several more billions worth of assets under management and custody. The Singapore firm services include custody and trading of virtual assets, as well as the offering of structured products.
US regulator greenlights blockchain-enabled trackers
WisdomTree Securities has received membership approval as a broker-dealer from the US Financial Industry Regulatory Authority (Finra), which will enable the securities firm to offer transactions in blockchain-enabled funds offered via the WisdomTree Prime mobile application.
‘As a regulation-forward company in blockchain-enabled finance focused on trust and security, this announcement is just another brick in the foundation we’re building to unlock access to the exciting opportunity within structured and transparent products of the future,’ said Jarrett Lilien (right), president and COO of WisdomTree.
Following the Finra approval, the company has launched WisdomTree Prime, a new subsidiary to act as an intermediary for investors seeking to transact in blockchain-enabled funds.
This announcement adds to several milestones reported by WisdomTree, including the SEC declaring effective the WisdomTree Short-Term Treasury Digital Fund - WisdomTree’s first blockchain-enabled fund - and the launch of strategic partnerships with a number of banking, fintech and payments players.
The firm’s digital strategy is a natural extension and evolution of its ETF business, ‘rooted in the belief that blockchain-enabled finance will improve the investor experience through enhanced liquidity, transparency and standardisation’, said Lilien.
Bybit introduces US$100M institution support fund
Crypto derivatives exchange Bybit has launched a new fund to help institutional traders access liquidity in the wake of the FTX collapse.
The fund, valued at US$100m, is available to market makers and high-frequency trading institutions on Bybit or other exchanges struggling with financial or operational difficulties. The funds will be distributed to eligible applicants at a 0% interest rate with each client being subject to a US$10m quota. The usage of funds is spot and USDT perpetual trading on Bybit.
The crypto native firm led by CEO and co-founder Ben Zhou (right) is the latest to join Binance in trying to turn the industry tumult of the past few weeks into an opportunity.
Binance said in Bloomberg interview last week that is targeting US$1 billion or more for a previously announced recovery fund to buy distressed crypto assets.
Australia watchdog sues fintech over crypto earner products
The Australian Securities and Investments Commission (ASIC) has commenced civil penalty proceedings in the federal court against fintech company Block Earner.
The regulator alleges that it provided unlicensed financial services in relation to its crypto-linked products and that it operated an unregistered managed investment scheme.
Block Earner offered a range of fixed-yield crypto-linked products known as ‘earner products’, such as USD Earner and Crypto Earner. ASIC alleges that these products were financial products that should have been licensed because the products were a managed investment scheme, a facility through which a person makes a financial investment, and/or a derivative.
‘We are concerned that Block Earner offered financial products without appropriate registration or an Australian Financial Services licence, leaving consumers without important protections. Simply because a product hinges on a crypto asset, does not mean it falls outside financial services law,’ said ASIC deputy chair Sarah Court (right).
The date for the first case management hearing is yet to be scheduled by the federal court.
Spirit Blockchain invests in InvestDEFY Technologies
Canada-based Spirit Blockchain Capital has executed a memorandum of understanding (MoU) with InvestDEFY Technologies, an AI platform that powers structured products for the digital asset space.
Under the agreement, Spirit will act as a lead investor in InvestDEFY’s Class B common share fundraise and InvestDEFY will provide Spirit with enhanced yield and income streaming solutions.
Spirit leads the fundraise in what is viewed as a subscription in Class B common shares of InvestDEFY which shall pay a variable dividend targeting 10% or more per annum with a floor of 7.5% pa., payable semi-annually until conversion or repurchase. These Class B common shares shall convert into Class A common shares after a two-year period subject to InvestDEFY’s right to repurchase 40% of the Class B common shares at the end of the period.
In addition, the firm led by James Niosi (right), CEO and co-founder will provide Spirit with enhanced yield solutions designed to grow the firm’s stack of ETH and BTC as well as other selective tokens.
InvestDEFY will also develop new income streaming solutions and collaborate with Spirit to bring these solutions to market.
CryptoCookies expands offering with Solana options
Antigua-based blockchain trading platform CryptoCookies has added Solana to their list of offerings, alongside Ethereum and Bitcoin.
‘Further chains, coins and structured products are in the pipeline to be added to CryptoCookies soon,’ stated the firm.
Crypto markets are also typically more volatile, but they have the added certainty that their downside is limited to the premium paid, according to the firm. With a strong focus on UX, CryptoCookies aims to demystify options and engage experienced and new investors.
According to the firm, removing intermediaries with the blockchain means there is now no need to be a private banking client, a professional trader or an institution to benefit from options trading.
The platform is non-custodial, meaning no one takes ownership of the user's assets, and each option contract is verified and settled on-chain.