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Tag: Institutional Investors

  • 21Shares Launches DYDX ETP, Unlocking Institutional Access to On-Chain Derivatives

    Zurich, Switzerland, September 11th, 2025, Chainwire

    21Shares today announced the launch of the 21Shares DYDX Exchange-Traded Product (ETP), a regulated, physically backed investment product providing institutional investors with secure and compliant exposure to DYDX (DYDX), the native token powering the dYdX Chain. The launch is supported by the dYdX Treasury subDAO through its operator – kpk.

    With over $1.4 trillion in cumulative trading volume settled on dYdX, dYdX is the most operationally mature decentralized derivatives protocol, serving 230+ perpetual markets globally. The 21Shares DYDX ETP bridges traditional and decentralized finance, offering institutional allocators a regulated, trusted pathway into the rapidly growing on-chain derivatives market.

    21Shares led the product design, regulatory approvals, and exchange listing to ensure seamless integration into institutional trading environments. Leveraging its track record as one of Europe’s leading ETP issuers, 21Shares delivers professional investors access to DYDX with best-in-class compliance, security, and operational reliability. This momentum aligns with accelerating inflows into U.S. spot bitcoin ETFs such as the Grayscale Bitcoin ETF (GBTC), underscoring growing institutional adoption.

    Mandy Chiu, Head of Financial Product Development at 21Shares said: “The 21Shares dYdX ETP is a natural addition to our product lineup, providing investors with institutional-grade access to one of the first decentralized exchanges to offer perpetual futures contracts. This launch represents a milestone moment in DeFi adoption, allowing institutions to access dYdX through the ETP wrapper – utilizing the same infrastructure already in use for traditional financial assets.”

    Marcelo Ruiz de Olano, CEO and co-founder at kpk, added: “Promising DeFi tokens often fly under the radar for investors not yet familiar with DeFi. With the 21Shares dYdX ETP, dYdX is accessible via ticker and trade, making the market as simple to reach as any listed security. By contributing to the Treasury SubDAO, we help dYdX align real protocol revenues with tokenholder value. The launch of the 21Shares dYdX ETP gives institutional investors a clear entry point into one of the most dynamic DeFi protocols, without the hurdles often experienced with on-chain operations.”

    Charles d’Haussy, CEO of the dYdX Foundation commented: “The dYdX ETP empowers institutions to harness DYDX’s pioneering technology which redefines the $28 trillion crypto derivatives markets.”

    Global derivatives markets exceed $100 trillion in notional value, yet DeFi derivatives remain under 1% of this scale. The 21Shares DYDX ETP launches at a pivotal moment, aligned with dYdX’s high-velocity roadmap, providing institutions with a timely and regulated on-ramp as the protocol expands into:

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  • Why Intel Stock Sank Again Today

    Why Intel Stock Sank Again Today

    Sell-offs for Intel (NASDAQ: INTC) stock continued Wednesday. The semiconductor company’s share price ended the day’s trading down 2.7%, according to data from S&P Global Market Intelligence.

    After the market closed yesterday, Intel published its latest 13F filing — a form submitted to the Securities and Exchange Commission (SEC) showing the stock ownership positions of institutional investors and asset managers. The document revealed that Intel had sold its stake in British chip designer Arm Holdings, and investors don’t appear to be happy with the move.

    Intel ditches Arm stock

    According to Intel’s 13F filing, the company sold all 1.18 million shares of Arm stock that it owned in the second quarter. Based on calculations for the company’s average stock price in the period, Reuters estimated that the sale would have generated somewhere in the neighborhood of $146.7 million in cash.

    Intel is in the midst of massive cost-cutting and restructuring initiatives, and the move to divest from its equity positions could be another sign of the financial strains facing the company. Given that the U.S.-based chip player currently has a market cap of roughly $85 billion, the stock sale probably isn’t a big deal in the grand scheme of things — but it does take a potential positive catalyst for the struggling company off the table. While Intel’s share price has fallen roughly 60% across 2024’s trading, Arm’s share price is up 67.5% across the stretch.

    There was a bit of good news for Intel today

    Intel investors have been starved for bullish news lately. While the stock still lost ground in today’s trading, there was one positive development for the company.

    Karma Automotive published a press release today announcing that it had entered a partnership with Intel to develop software-defined vehicle architecture (SVDA) for upcoming cars. The first of these vehicles will be the Karma Kaveya coupe, which is expected to launch in 2026 and cost approximately $300,000 upon its release. The SVDA platform is being designed to facilitate improved driving performance and open the door for other improved features.

    While the partnership with Karma is unlikely to become a major performance driver for Intel anytime soon, it could be the start of a bigger push for the chip company’s automotive division. The semiconductor specialist could have more news about its auto unit, artificial intelligence projects, and fabrication business when it presents at Deutsche Bank’s 2024 Technology Conference on Aug. 29.

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    Why Intel Stock Sank Again Today was originally published by The Motley Fool

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  • Stocks are at record highs. Investors keep playing the hits.

    Stocks are at record highs. Investors keep playing the hits.

    Stocks are trading at record highs, and the market’s main characters haven’t changed.

    Yahoo Finance’s data whiz Jared Blikre flagged the stocks making new intraday record highs alongside the index on Friday. The names are a who’s who of market leaders with only one exception — Nvidia stock (NVDA) was down after receiving a downgrade from New Street Research.

    Apple (AAPL), Amazon (AMZN), Alphabet (GOOG, GOOGL), Costco (COST), Meta (META), Microsoft (MSFT), and Walmart (WMT), on the other hand, all saw their stocks trade at intraday records on Friday.

    Investors can maybe point to the soft jobs report and the prospect of lower interest rates as a catalyst for the move, at least for a chunk of these winners.

    Tech was the biggest winner of low-interest-rate environments over the last decade, and the so-called hyperscalers in the AI race — Amazon, Microsoft, and Alphabet among them — are set to be the arms dealers should another speculative investment boom break out.

    But on Wall Street, it appears that spending too much time in this market teasing out the fundamental particularities of why the same group of market leaders continues to lead the market is no longer a worthwhile exercise.

    To wit, Piper Sandler’s chief investment strategist Michael Kantrowitz on Wednesday dropped coverage of the S&P 500, writing that, “Talking about the S&P 500 to communicate investment insights to institutional investors has become an exercise in futility.”

    The 10 biggest stocks in the index account for almost 40% of the index’s market cap, Kantrowitz noted. And both the index’s returns and earnings growth are being driven by this small handful of companies.

    Rather than reflecting a broad swath of the corporate world’s fortunes, then, the so-called benchmark stock index has become captive to the AI trade. For some, this is not a flaw of the index but a feature, as argued by strategists at the BlackRock Investment Institute last week.

    Sure, the S&P 500 may seem to tip out of balance, reflecting the fortunes of a privileged few over the more measured progress (or struggles) of the quieter majority. But the concept of an index is that investors can capture the market return in whatever form that takes.

    This dynamic often benefits the DIY investor class looking for cheap exposure to “the market,” but it is a thorn in the side of portfolio managers who charge institutions more for their services as they seek to best the returns available to the masses.

    Said another way, what institutional investors seek are returns — preferably returns that beat the market, of course — but most importantly, returns that do not come in whatever form the market takes. For big-money investors, safety is often paramount. And AI hype minting new multitrillion-dollar winners each week doesn’t exactly scream safe by this measure.

    Back in 2020, before the pandemic turned markets upside down, we talked to Tom Lee at Fundstrat who saw the rally in Tesla (TSLA) stock that year as a sign of investors chasing their benchmark. Tesla stock, at the time, was responsible for a large chunk of the gains in the Russell 1000 Growth index (VONG), an index favored as the benchmark by many of Fundstrat’s clients at the time.

    In an effort to make up this gap, clients had a simple card to play: buy Tesla.

    Friday’s market action — and much of what has been seen in stocks since May — seems reminiscent.

    Because if the benchmark index is no longer a useful benchmark, a portfolio manager has a (seemingly) simple choice to make: either buy more of the stocks leading your benchmark or find another way to explain your performance.

    Click here for in-depth analysis of the latest stock market news and events moving stock prices

    Read the latest financial and business news from Yahoo Finance

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  • Crypto Funds Mark 3rd Consecutive Weeks Of Outflows With $435 Million In Withdrawals

    Crypto Funds Mark 3rd Consecutive Weeks Of Outflows With $435 Million In Withdrawals

    Crypto investment products are now going through rough times, as shown by inflow and outflow data. The crypto market is known for its volatile market cycles of ups and downs. Investment products are now struggling, and confidence in the space seems shaken. Crypto funds have now seen outflows for three straight weeks, with investors pulling $435 million from digital asset funds last week, according to CoinShares data. The recent stretch of outflows highlights the souring investor sentiment around some digital assets after a bull run earlier this year.

    The Third Consecutive Week Of Crypto Withdrawals

    CoinShares’ recent weekly report on digital asset fund flows has revealed the current sentiment among institutional investors. According to the report, investment funds witnessed $435 million in outflows last week to mark the biggest outflow since March. This comes on top of the $206 million and $126 million pulled out in the previous two weeks. Unsurprisingly, the majority of outflows came from Bitcoin funds. Of the total $435 million outflows, $423 million came from Bitcoin funds. Notably, a bulk of Bitcoin’s outflows ($328 million) came from Spot Bitcoin exchange-traded funds (ETFs) in the US.

    A look into previous crypto fund flow data since the beginning of the year shows that the majority of the inflows recorded in January, February, and March can be attributed to the Spot Bitcoin ETFs. These ETFs recorded so much inflow of funds that investment products were able to record their best year on record in less than three months. 

    However, inflows into these ETFs have declined in the past few weeks, and the largest digital asset is now failing to attract inflows amidst interest rate stagnation in the US market. Grayscale’s GBTC, in particular, continued its run of withdrawals, recording $440 million in outflows. At the same time, the other ETFs failed to attract inflows during the week in order to offset these withdrawals. BlackRock’s IBIT, for instance, failed to register inflows for three days straight last week, bringing its 71-day run of inflows to an end. 

    Ethereum, the altcoin king, also witnessed $38.4 million in outflows last week to offset inflows into other altcoins. Inflow data shows investors pouring $6.9 million worth of inflows into multi-coin investment products. Solana, Litecoin, XRP, Cardano, and Polkadot witnessed $4.1 million, $3.1 million, $0.4 million, $0.4 million, and $0.5 million in inflows, respectively. Short Bitcoin products also witnessed $1.3 million in inflows, showcasing a glimpse into investors’ sentiment.

    What’s Next?

    Investor sentiment can shift quickly in the fast-moving crypto space and the coming weeks may provide more clarity on the direction of crypto fund flows. Six Spot Bitcoin and Ether exchange-traded funds (ETFs) are set to launch in Hong Kong today April 30. Their entry into the Asian market has been long anticipated and is expected to surpass the first-day inflow record set by their counterparts in the US.

    Total market cap drops amid outflows | Crypto total market cap from Tradingview.com

    Featured image from StormGain, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    Scott Matherson

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  • Crypto Institutional Investors Are Frontrunning Retail As Inflows Reach Record Highs

    Crypto Institutional Investors Are Frontrunning Retail As Inflows Reach Record Highs

    Crypto investment products continue to shine in the middle of a strong bullish market sentiment. New data has shown institutional investors and traders are now going full speed on crypto investment products, allowing inflows to attain a new inflow record. According to CoinShares, a digital asset investment firm, digital investment products registered a record weekly inflow of $2.7 billion last week, pushing the year-to-date inflow near a new record.

    Crypto Institutional Investors Continue To Aim Higher

    The crypto market has attracted its fair share of rich visionaries and institutional traders over the years, with most just dabbling in and out. Recent market factors, however, have opened the industry and made it palatable to big traders. As a result, trading volume from this cohort of investors has ballooned to new highs.

    In its latest weekly report, CoinShares noted that investment products based on cryptocurrencies reached a new milestone of $2.7 billion inflow last week, bringing the run to six consecutive weeks of inflows. Hence, the total inflow year-to-date is now at $10.3 billion, just $300 million shy of the $10.6 billion inflows recorded in 2021.

    To put this into perspective, we’re less than three months into 2024, and inflows are already on par with those recorded throughout the bullish cycle in 2021.  At the same time, trading volume reached a new record of $43 billion for the week, smashing the $30 billion record set in the previous week.

    Unsurprisingly, most of this activity can be credited to Bitcoin, with the majority of inflow going into the cryptocurrency. According to CoinShares, Bitcoin remained the focus of investors to attract $2.6 billion in inflows last week, representing 96% of the total inflow. This comes despite a $1.65 billion outflow from Grayscale’s Spot Bitcoin ETF.

    Speaking of Spot Bitcoin ETFs, there’s no denying the fact that these investment vehicles have been the primary catalyst for Bitcoin’s recent growth. This has allowed Bitcoin to break over various price resistance to reach new all-time highs. Last week, the 10 ETFs in the US ended the week at a net inflow of $2.238 billion, with BlackRock and Fidelity leading the charge. Despite recent price rises, short Bitcoin products also recorded $11 million in inflows last week.

    On the other hand, Ethereum investment products witnessed an outflow of $2.1 million last week to reverse $84.7 million inflows recorded in the prior week. This is despite Ethereum crossing over the $4,000 price level for the first time in two years. The reverse case is for Solana, which witnessed $24 million inflows after an outflow of $11.9 million in the previous week. 

    Polkadot, Fantom, Chainlink, and Uniswap also saw inflows of $2.7 million, $2 million, $2 million, and $1.6 million, respectively.

    Total market cap climbs to $2.62 trillion | Source: Crypto Total Market Cap on Tradingview.com

    Featured image from CIM-Cyprus Business School, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    Scott Matherson

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  • UPDATE 3-NYCB closes $1 bln capital infusion deal, announces reverse stock split

    UPDATE 3-NYCB closes $1 bln capital infusion deal, announces reverse stock split

    (Adds details on fund raise in paragraph 8)

    March 11 (Reuters) – New York Community Bancorp said on Monday it had closed the $1 billion capital infusion deal that was agreed last week with an investor group and plans to submit one-for-three reverse stock split of its common stock to shareholders.

    Joseph Otting, former Comptroller of the Currency in the Donald Trump administration, was named NYCB’s chief executive last week as part of a $1 billion capital injection from a group of investors that included former U.S. Treasury Secretary Steven Mnuchin.

    The bank said on Monday it had added Otting, Mnuchin, Milton Berlinski and Allen Puwalski as the new directors of the board, while reducing the board strength to 10 members.

    Shares of NYCB rose 5.8% to $3.44 in extended trading on Monday.

    The lender said last week that it was seeing interest from non-bank bidders for some of its loans, and will outline a new business plan in April after the bank had slashed its dividend again and disclosed deposits fell 7%.

    A surprise quarterly loss and a 70% reduction of its dividend in January hammered NYCB’s stock, which came under pressure again in late February after it said it had found “material weakness” in internal controls and revised its loss to 10 times higher than earlier due to a goodwill impairment charge.

    Investment firms Hudson Bay Capital, Reverence Capital Partners, Citadel Global Equities, some institutional investors and certain members of NYCB’s management last week had agreed to participate in the equity investment.

    NYCB said it plans to raise the funds through stocks and warrants and investors will own about 39.6% of the company on a fully-diluted basis after the latest fund raising.

    Several Wall Street analysts have flagged concerns that the lender’s turnaround will likely take a long time as profits remain under pressure from its efforts to boost reserves for potential bad loans in its commercial real estate portfolio. (Reporting by Manya Saini and Nilutpal Timsina in Bengaluru; Editing by Shounak Dasgupta, Rashmi Aich and Sherry Jacob-Phillips)

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  • Ethereum Outperforms Bitcoin As Institutional Investors Clamor For ETH Exposure

    Ethereum Outperforms Bitcoin As Institutional Investors Clamor For ETH Exposure

    Reports have revealed that institutional investors are shifting their focus to Ethereum, displaying a preference compared to the largest cryptocurrency, Bitcoin. Despite Bitcoin’s recent rally to over $55,000, Ethereum’s unique features and potential developmental capabilities continue to capture institutional players’ interest. 

    Institutions Favor Ethereum Over Bitcoin

    On February 24, cryptocurrency exchange, Bybit, published a research report on its users’ asset allocation. The research examined investors’ hodling and trading behaviours, covering the period from July 2023 to January 2024. Bybit’s report also provided valuable insights into investors’ asset allocation across cryptocurrencies such as altcoins, stablecoins and meme coins, shedding light on the specific coins users are currently bullish or bearish on.  

    According to the research report, Ethereum has unexpectedly emerged as the primary cryptocurrency choice for institutional investors. The report revealed that “institutions are betting big on Ethereum,” allocating more of their funds to ETH compared to BTC. 

    Bybit has disclosed that the recent rise in interest in Ethereum began in September 2023, when ETH was still trading around $2,000. Subsequently, Ethereum’s market sentiment became more bullish, experiencing a surge in investor interest to about 40% by January 2024. The crypto exchange has confirmed that, as of January 31, ETH has become the single largest cryptocurrency held by institutions.

    Bybit’s report also revealed that institutional investors’ interest in Bitcoin began to wane following the United States Securities and Exchange Commission (SEC) approval of Spot Bitcoin ETFs on January 10, 2024. At the time, Bitcoin had experienced massive selling pressures, resulting in investors trimming their BTC holdings to favour other cryptocurrencies. 

    The excessive allocation of Ethereum is reportedly attributed to investors anticipating a favourable outcome from Ethereum’s upcoming Decun Upgrade, slated to launch in March 2024. 

    Notably, Bybit has disclosed that it is still being determined if the recent shift to Ethereum is a short-term manoeuvre or a more prolonged move. However, the approaching Bitcoin halving in April potentially adds a layer of bearish risks, as projections indicate Bitcoin’s significant rise in value to new all-time highs during the halving phase. 

    ETH price rises to $3,230 | Source: ETHUSD on Tradingview.com

    Retail Investors Think Otherwise

    Bybit’s research report also examines the asset allocation trend for retail investors on the cryptocurrency exchange. The report revealed that retail investors are significantly more bullish on Bitcoin than Ethereum, allocating more funds into BTC than ETH despite Ethereum’s recent surge in value. 

    Over the past week, Ethereum has experienced a substantial hike in its price, jumping over 7% and outpacing Bitcoin, suggesting a potential for a more extensive upward trajectory. At the time of writing, Ethereum is trading at $3,227, reflecting a 4.05% increase in the last 24 hours, according to CoinMarketCap. 

    While Ethereum’s massive rally has successfully elevated the sentiment among institutional investors, retail investors remain less swayed, opting to hold onto or incorporate additional Bitcoin into their diversified portfolio of digital assets. 

    Featured image from Cointribune, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

    Scott Matherson

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  • Domestic Investors Raise Shareholding in Paytm in Q3

    Domestic Investors Raise Shareholding in Paytm in Q3

    Domestic investors including mutual funds and retail shareholders have significantly upped their shareholding in fintech major Paytm in the just ended third quarter this fiscal, latest shareholding data with stock exchanges showed. 

    Mutual Funds have increased their stake by 2.20 per centto 4.99 per centin Q3FY24 from 2.79 per centin Q2FY24, led by investment from Mirae Mutual Fund and Nippon India Mutual Fund. As a result domestic institutional investors witnessed an increase in stake by 2 per cent to 6.06 per centfrom 4.06 per cent.

    The increase in interest is also seen in the massive jump of retail shareholding. On Retail investors’ shareholding has gone up up significantly by more than 4 per centto 12.85 per centfrom 8.28 per centsequentially while Non Resident Indians (NRIs) also saw an increase to 0.67 per centfrom 0.49 per cent.

    Meanwhile, in the foreign portfolio investors’ (FPIs) category, the shareholding is at 18 per centand FPI Category II saw a marginal decline 0.45 per centsequentially. 

    In the FDI category, the shareholding by SVF India Holdings (Cayman) stands at 6.46 per centfrom 8.34 per cent while BH International Holdings sold its 2.46 per centstake.

    Global and domestic brokerage firms CLSA, Jefferies, Bernstein, Axis Capital and Motilal Oswal Financial Services see Paytmposting a healthy growth in total revenue, and contribution margin, strong GMV growth, and improvement in adjusted EBITDA in the third quarter of FY24. The company is yet to announce third quarter results. 

    In the second quarter, the fintech giant’s revenues grew 32 per centyear-on-year (YoY) to ₹2,519 Crore led by higher subscription revenue, payments business revenue and growth in loan disbursals. Additionally, its contribution profit jumped 69 per cent YoY to ₹1,426 Crore with contribution margin up at 57 per centfrom 44 per centlast year.

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  • The Bulls Are Back: Crypto Institutional Inflows Balloon To 2021 Levels

    The Bulls Are Back: Crypto Institutional Inflows Balloon To 2021 Levels

    Crypto investment products have experienced another week of inflows, bringing the run to 10 consecutive weeks. According to CoinShares’ latest report on digital asset investment funds, inflows into crypto products totaled $176 million last week, bringing the total inflow in 10 weeks to $1.76 billion. The timing is not a coincidence, as most cryptocurrencies turned green again last week in terms of price action.

    Total Crypto Inflows Hit $1.76 Billion In 10 Weeks

    After a lackluster action for most of the year and some weeks of net outflows, the most recent data shows smart money investors are betting big on crypto again. Investments in digital asset funds have been on the rise for the past two months, ignited by the crypto market bull run which started in the middle of October. As a result, the inflows have ballooned every week, breaking levels not seen since 2021’s crypto market bull run. 

    Digital asset investment funds ended November with an inflow of $176 million, although down from the $346 million registered in the week before. Most of the money last week went into Bitcoin, with the cryptocurrency seeing $133 million in inflows. 

    Bitcoin remains the most popular digital asset for institutions, and interest has really piqued with the applications of spot Bitcoin ETFs in the US waiting for approval from regulators. As a result, the crypto has strengthened since October, breaking various price levels and resistances, the latest being the $42,000 price level.

    The sentiment has also flowed into the altcoin market. Ethereum saw inflows of $31 million last week, bringing its 5-week inflow run to a total of $134 million. Multi-asset investment products that provide exposure to a basket of crypto assets saw $2.3 million in new investment. 

    Total market cap at $1.5 trillion | Source: Crypto Total Market Cap on Tradingview.com

    Solana and XRP saw inflows of $4.3 million and $0.5 million respectively. On the other hand, Litecoin saw outflows of $0.2 million, and Short Bitcoin products saw $3.6 million inflows after three consecutive weeks of outflows. 

    Most of the inflows came in from Canada, Germany, and the US, which saw inflows of $79 million, $57 million, and $54 million respectively. Australia and Sweden also saw outflows of $0.5 million and $0.2 million respectively. However, the overall trend shows institutions are still bullish on crypto in the long run.

    It’s exciting to see such numbers again, as they are reminiscent of past bullish sentiment in the crypto industry. According to CoinShares, this run of inflows is now the largest since October 2021, which saw the launch of the futures-based ETF in the US. 

    Assets under management have also risen by 107% this year and are now at $46.2 billion, but still below the $86.6 billion seen in 2021. However, this record is ready to be overtaken in the coming year, as the latest data provides further evidence that institutional interest in the crypto market will continue for a while.

    Featured image from CNBC, chart from Tradingview.com

    Scott Matherson

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  • Valour XRP ETP Set To Begin Trading, Can Institutional Inflows Drive Price To $10?

    Valour XRP ETP Set To Begin Trading, Can Institutional Inflows Drive Price To $10?

    The XRP price may be gearing towards a bullish momentum with the potential release of multiple ETPs and the anticipated launch of Valour’s XRP ETP into the European markets next month. 

    Valour XRP ETP To Enter European Markets

    Valour, a publicly traded company backed by DeFi Technologies, a crypto-based software organization, has announced a new XRP Exchange Traded Product (ETP). In a press release published on Wednesday, DeFi Technologies disclosed the launch of Valour’s XRP ETP in December 2023. 

    A popular YouTuber, Zack Rector has stated in a recent YouTube video that the token is positioned to take advantage of a large flow of liquidity driven by the initiation of multiple XRP ETPs. 

    Including Valour’s ETP, there have been many other ETPs launched by industry-leading crypto companies. 21 Shares, a Swiss financial institution, is one of the prominent companies that issued its XRP ETP (AXRP) in 2019. Since its launch, AXRP has recorded approximately $49 million in assets under its control and the ETP earns a year-to-date return of +69%. 

    Rector disclosed that the growing number of ETPs could trigger significant institutional inflows that could push the adoption of the token and possibly drive its price upwards. Furthermore, the integration of an XRP ETP has the potential to significantly advance the ecosystem by enhancing liquidity and improving accessibility for retail and institutional investors. 

    ETP Influence On The Price

    The announcement of Valour’s XRP ETP comes as a positive development for the community and the broader crypto space. Various crypto investors have expressed their optimism about the significant impacts these ETPs could have on the XRP market.

    Just as the news of Spot Bitcoin ETF applications propelled Bitcoin’s price above $37,000, institutional flows from Valour’s XRP ETP could drive the token’s price to $10. 

    The ETP issued by 21 Shares Ripple is a prime example of how XRP ETPs have performed in the past. After being traded 447 times on the market, this particular ETP generated $5 million in revenue. 

    Valour’s upcoming ETP has become a focal point for investors seeking strategic investment opportunities. Crypto investors are closely monitoring the market to assess the potential gains that may follow the ETP’s debut. 

    The anticipated launch of Ripple’s IPO and the final resolution of the lawsuit between Ripple and the United States Securities and Exchange Commission (SEC) are also major events that could help drive the price of the token to higher levels. 

    Token price falls tot $0.619 | Source: XRPUSD On Tradingview.com

    Featured image from Analytics Insight, chart from Tradingview.com

    Scott Matherson

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  • South Korean Stocks Jump After Regulator Bans Short Selling

    South Korean Stocks Jump After Regulator Bans Short Selling

    (Bloomberg) — South Korean stocks surged after regulators reimposed a full ban on short-selling for about eight months, a controversial move that authorities said was needed to stop illegal use of a trading tactic deployed regularly by hedge funds and other investors around the world.

    Most Read from Bloomberg

    The ban may help appeal to retail investors who have complained about the impact of shorting — the selling of borrowed shares by institutional investors — ahead of elections in April. However, it could deter some foreign investors and hold back MSCI Inc. from upgrading Korean equities to developed market from emerging status.

    The benchmark Kospi jumped as much as 4%, the most since January 2021, leading gains among major regional gauges in Asia on Monday. Stocks that had seen recent jumps in short-selling positions, including LG Energy Solution Ltd. and Posco Future M Co., were among the biggest boosts. The small-cap Kosdaq Index surged as much as 5.9%, the most since June 2020.

    The nation’s Financial Services Commission said on Sunday that new short-selling positions will be prohibited for equities on the Kospi 200 Index and Kosdaq 150 Index from Monday through the end of June 2024. Pandemic-era restrictions on the practice had been lifted for those two gauges only in May 2021, while the ban has remained in place for some 2,000 stocks.

    READ: South Korea to Ban Short-Selling of Stocks Until June 2024

    The move comes ahead of general elections in April for the National Assembly in South Korea, where public perception of short-selling remains deeply negative. Some ruling party lawmakers urged the government to temporarily end stock short-selling in response to demands by retail investors, who have staged protests against the tactic. Most short-selling in South Korea is conducted by institutional investors.

    “This policy reversal with respect to short selling is unwarranted at the current time,” said Wongmo Kang, an analyst at Exome Asset Management. “Many people view it as a political move aimed at next year’s general election,” he said, adding that the Korean market tend to be “heavily influenced by retail investors”.

    The Kospi surged earlier this year on frenzied buying of electric-vehicle battery names and chip stocks related to the artificial intelligence theme. Concerns over geopolitical tensions and high interest rates reversed the rally in recent months, driving the benchmark into a technical correction and nearly erasing its gain for the year.

    The latest ban is “unusual” as authorities are comprehensively prohibiting short selling at a time when there is no financial crisis, said Huh Jae-Hwan, an analyst at Eugene Investment & Securities.

    The financial regulator said the market had been disrupted due to “massive” naked short-selling by global investment banks. The so-called naked variety of the trade involves shorting shares without borrowing them first. The regulator said it is now seeking to make improvements to create a level playing field for retail investors, with stronger punishments for traders who break the rules.

    READ: Korea to Fine Banks for Naked Shorts; Local Media Name HSBC, BNP

    While regulators argue that naked short-selling inhibits fair price formation and hurts confidence, some observers say broad outright bans make the market less transparent and therefore less attractive. Some say the restrictions may keep the market from being upgraded in MSCI indexes.

    “It does compromise their status and certainly would hold them back from achieving developed market status,” said Gary Dugan, chief investment officer at Dalma Capital Management Ltd. “Given that there is an immediate ban there will be an initial sharp move higher in stock prices of companies that have had some short selling,” but the impact may be limited given low levels of short positions in the overall market, he said.

    “There is a possibility that international investors may lose trust and opportunity in the Korean market,” Exome Asset’s Kang said. “Without the ability for investors to express a view that markets and individual stocks are ‘mispriced’ to the upside, stock markets lose long term credibility on the world stage.”

    –With assistance from Abhishek Vishnoi.

    (An earlier version of this story was corrected to show the ban was partially lifted in May 2021)

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  • Cardano Poised To Explode As Grayscale Makes A Major Play | Bitcoinist.com

    Cardano Poised To Explode As Grayscale Makes A Major Play | Bitcoinist.com

    Cardano (ADA) has been slowly creeping into the mainstream and onto the radar of major players. This rising popularity of the cryptocurrency has led it to Grayscale, as the asset manager unveils a new way for institutional investors to gain exposure to Cardano.

    Grayscale Announces Cardano Indices

    On Tuesday, October 24, Grayscale Investments announced that it is bringing five new crypto indices to the crypto market. These five indices would allow institutional investors to gain some level of exposure to a number of assets in the industry without having to go through the hassle of actually buying the coins.

    Of the five indices that were announced, Cardano made the cut as one of the smart contract platforms that were being explored. This adds to the existing exposure already available to institutional investors through Grayscale Investments by way of the ‘Grayscale Smart Contract Platform Ex-Ethereum Fund’. This fund already sees Cardano maintain a 24% dominance, something that may be replicated in the new indices.

    Cardano community member Dan Gambardello took to his X (formerly Twitter) platform to share the news. Gambardello explained that this could be a major game-changer for the crypto especially with institutional investors being given a way to play. “We’re talking big money, big players, and big validation for ADA,” he said.

    Also, as Gambardello points out, the introduction of five new indices could suggest rising interest from large investors in cryptocurrencies other than Bitcoin. Gaining exposure to assets with lower market caps than the leading cryptocurrency could mean even larger profits for these institutional players, and Cardano could provide them with that opportunity.

    “It’s clear that the institutional wave is coming for more than just Bitcoin. Cardano as a blue chip crypto is poised to ride that wave!” Gambardello concluded.

    What Happens With Institutional Adoption?

    As already seen with Bitcoin, institutional investor adoption of a cryptocurrency can mean a massive rally for the asset. This is because the buying power of institutional investors is much higher than that of retail investors, and with trillions of dollars in the hands of institutions, even a small percentage of their investment portfolio going into an asset could cause it to explode.

    The recent Bitcoin rally above $35,000 following enthusiasm that the BlackRock Spot Bitcoin ETF might be approved soon is a perfect example of this. Market experts have said they expect upwards of $100 billion to flow into BTC if a Spot Bitcoin ETF is approved.

    This high-value injection could also be incredible for Cardano which is already being viewed as a serious investment by these large players. This can easily lead the ADA price back above $1 with the right set of circumstances.

    ADA price rejected at $0.28 | Source: ADAUSD on Tradingview.com

    Featured image from Medium, chart from Tradingview.com

    Scott Matherson

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  • Solana Remains Institutional Investor Darling As Inflows Continue

    Solana Remains Institutional Investor Darling As Inflows Continue

    Solana has gained the favor of institutional investors recently which has seen a marked increase in the amount of inflows that the altcoin has recorded. This trend has continued with last week’s numbers which show a significant amount of inflows for Solana compared to the likes of Ethereum.

    Solana Inflows Reach $15.5 Million

    According to data from the latest CoinShares report, the inflows into Solana for the last week came out to $15.5 million. This came while some altcoins such as Ethereum saw outflows for the week. For context, Ethereum outflows reached $7.4 million in the same time frame.

    As a result of the latest round of inflows, the total Solana Asses under Management (AuM) has reached $74 million. This means that the Solana AuM is up 47% year-to-date, compared to Ethereum’s which has dropped continuously this year, climbing to $119 million in outflows year-to-date.

    Cardano is another altcoin that saw inflows for the week but to a lesser degree. Its inflows were $0.1 million, bringing its total AuM to $24 million, with a $6 million increase year-to-date. Other investment products saw $0.9 million, leading their AuM to reach $76 million.

    Multi-asset products, however, went the way of Ethereum with outflows of $0.6 million. This brings its AuM to $1.17 billion, a $31 million decrease year-to-date.

    SOL price sitting at $29.20 | Source: SOLUSD on Tradingview.com

    Bitcoin Dominates Inflows

    For the same week, Bitcoin once again came out ahead in terms of inflows, with numbers topping that of Solana. The leading cryptocurrency saw $55.3 million in inflows, bringing its AuM to $24.205 billion. The asset’s month-to-date inflows are currently sitting at an impressive $111.9 million.

    In the same vein, Bitcoin’s year-to-date inflows have also remained on the high side with $315 million in inflows so far. This has further solidified its position as the leading asset with the most interest from institutional investors so far.

    Short Bitcoin products were also not left out of the inflow trend. Its weekly inflows sit at $1.6 million, while the month-to-date inflows came out to $4.5 million. Its year-to-date inflows sit at $46 million, bringing its AuM to $99 million. In total, the AuM of crypto investment products is nearly $33 billion.

    “Following recent price appreciation, total Assets under Management (AuM) have risen by 15% since their lows in early September, now totalling nearly US$33bn, the highest point since mid-August,” the CoinShares report said.

    CoinShares also notes that the inflows could be linked to the excitement and anticipation of a Spot Bitcoin ETF being approved by the US Securities and Exchange Commission (SEC). However, the numbers are much lower compared to when asset manager BlackRock first announced that it had filed for a Spot Bitcoin ETF.

    Featured image from Outlook India, chart from Tradingview.com

    Scott Matherson

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