EddieJayonCrypto
10 May 23
CPI numbers are due later today and most are thinking they remain the same or rise just a tad. More importantly, I think the numbers are already baked in. Here is what is on my mind today.1. So the Consumer Price Index and other metrics are expected later today (8:30 EST). Most banks are leaning tow...
CPI numbers are due later today and most are thinking they remain the same or rise just a tad. More importantly, I think the numbers are already baked in. Here is what is on my mind today.1. So the Consumer Price Index and other metrics are expected later today (8:30 EST). Most banks are leaning toward slightly higher numbers or relatively unchanged. That would show some stability. More importantly, I think it would be a good thing to point to a Fed pause during the next FOMC meeting. A lot of people are calling for a pivot, but I think behind closed doors, they are expecting a pause. Which is still a good thing. 2. Coinbase has a problem going on. They are working to address wallet support for Ethereum staking withdrawals currently stuck in limbo. Do I think they will work it out? Yes. Do I think they are still a strong custodial wallet choice and a good centralized exchange? 3. The SEC is catching some serious heat over the notion of "qualified custodians". As I mentioned yesterday, this is where the current custodians would have to register with the agency. This would mean they would in a position to decide who would be considered "qualified custodians". That was a bridge too far for not just the Blockchain Association, but also JPMorgan, A16z, and even the Small Business Administration. That last one has me scratching my head. 4. DCG is working hard to raise money while they negotiate with their creditors for a final deal for Genesis. The main creditor, of course, being Gemini. Apparently, DCG is in discussions with several sources of capital. To me, this sends a clear message that creditors may be looking for a more stable cash portion to the deal. 5. Meanwhile Grayscale has created a funds trust and has filed for three new crypto funds. The Grayscale Ethereum Future ETF is focused on Ethereum futures contracts. The Grayscale Global Bitcoin Composite ETF will have focus on exchange-traded products. The Grayscale Privacy ETF will focus on the Indxx Privacy Index and includes the Grayscale Zcash Trust. 6. The US exodus is continuing with Jane Street and Jump Crypto exiting the country. Both are leaving due to the extreme regulatory enforcement environment. Enforcement without regulation. The two companies are two of the largest market-making firms in the country and, arguably, the world. The impact is that companies like Coinbase and Binance could face local liquidity issues. Truth be told, I think they will be fine considering they are probably already working on alternatives. 7. I told you earlier this month that Venmo was offering new crypto features. Of course, that means they must be holding a certain amount of crypto on behalf of their customers. In that short a time their holdings have jumped to $499M in BTC and $362M in ETH. Mind you they also hold Litecoin and Bitcoin Cash. Overall, this is an increase of over 56%. Crypto adoption is growing.