Invictus Capital: Weekly Wrap 01.10
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Traditional markets were spooked this week by a looming October government shutdown in the US, however, the shutdown was pushed out to December by a stop-gap agreement that managed to pass through Congress. A more comprehensive bill will need to be passed before December to avoid the potentially-catastrophic effects that would play out should the US government fail to meet their debt obligations, echoing some of the market’s concerns with China’s embattled Evergrande, which has fallen out of the spotlight this week. Bonds failed to rally in this risk-off environment, while the dollar firmed significantly.
With that said, encouraging news surfaced today as Merck halted the late-stage trial for an experimental COVID-19 treatment, in pill form, after the interim trial results were deemed successful enough to warrant an emergency-use application with the US FDA. Results suggest patients taking the pill can expect a 50% reduction in the risk of hospitalization or death. While markets perked up across the board on the news — crypto included — this was not enough to reverse the dip experienced earlier in the week.
September, a notoriously poor month for Bitcoin, has come to an end with the bulk of the larger cryptoassets in the red for the month, with a notable exception of Solana, which ended the month up ~30%. At the time of writing, the market was experiencing extremely bullish price action with Bitcoin and Ethereum up over 8% and 7% respectively — on the back of high US inflation readings and the Merck announcement, in what is the start of a famously strong month for crypto. While it remains too early to tell, the current bullish price action certainly points to a major shift in sentiment and potential turning point for the crypto market.
Links can be drawn between this sentiment shift and the U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler this week reiterating his support for a Bitcoin ETF that gets its exposure through futures contracts rather than the spot market. So far, the SEC has rejected every application for a Bitcoin ETF, but this latest announcement has reinvigorated hopes that an ETF could be approved shortly.
Currently, there are 12 outstanding applications in the US for a Bitcoin ETF from some of the biggest names in the digital asset space. Four of these are due to be decided on by the SEC this year, the earliest of which (the Global X Bitcoin Trust) will be decided on 11 November. The approval of an ETF in the US is expected to be a significant driver of further price appreciation, as it unlocks demand from a range of investment vehicles that are prohibited from crypto exposure via more conventional means. The Canadian regulators showed just how far ahead of the rest of the world they are as they approved the listing of the first multi-cryptoasset ETF, with exposure to Ethereum and Bitcoin, on the Toronto Stock Exchange this week.
Indicators (23 September — 01 October)
- Invictus Margin Lending (IML): $1.28, +6.92% (weekly compound annualized rate)
- Crypto10 Hedged (C10): $6.77, +0.06%
- Crypto20 (C20): $4.18, -4.01%
- Invictus Bitcoin Alpha (IBA): $2.30, -1.43%
- Invictus Hyperion Fund (IHF): $0.492 (Updated Q2–21)
- Invictus Capital Token (ICAP): $10.77, -19.04%
- BTC: $43,787.76, +0.50%
- ETH: $3,003.18, -2.31%
- GOLD: $1,753.15, -0.80%
- S&P500: 4,307.54, -2.00%
The Invictus Podcast: Episode 5
Today’s hosts Nick & Niall welcome our next guest, Rafael Cosman, the Co-founder & CEO of TrustToken!
Watch the video here.
Invictus Yield Vault (minimum recently lowered to $25,000)
Invictus Capital is thrilled to announce the public launch of the Invictus Yield Vault. The Yield Vault allows qualifying lenders the opportunity to lend a minimum amount of $25,000 BTC, ETH and/or Stablecoins for highly competitive interest rates to Invictus Alpha, Invictus Capital’s trading division.
The Vault is now seamlessly integrated into the investor portal on the Invictus Capital website! Prospective crypto lenders now have a single web location to effortlessly view Yield Vault information, crypto lending interest rates, FAQ information, and contact our Yield Vault Team.
To view our rates and contact our Vault team, please visit our landing page.
Borrow Against Your Crypto With Peace of Mind
Crypto users can now borrow against their crypto secure in the knowledge that their investment will not get liquidated.
Invictus Alpha (the trading company of Invictus Capital) has engineered a new product that is offering users the opportunity to borrow USD-based stablecoins (or BTC and ETH) against BTC and ETH with no risk of liquidation.
Other News & Links
- Invictus in the Press/News
1. Accrue a Fixed Market-Beating Interest Rate with the Invictus Yield Vault
2. Staking & ICAP: The Breakdown
- These Are The High-Profile Bitcoin ETF Applications Currently In Play
- Biden Signs Bill To Avert Shutdown Ahead of Midnight Deadline
- Merck’s COVID-19 Pill Cuts Risk of Death, Hospitalization by 50% in Study
- Gensler Reiterates Support for Futures-Based Bitcoin ETFs
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