Invictus Capital: Weekly Wrap 19.03
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Market News
Traditional markets spent most of the week waiting with bated breath for Wednesday’s Federal Open Market Committee statement for further guidance for longer-term interest rates, and details on how the Fed would be responding to the recent acceleration in the pickup of long-term bond yields that have shaken markets. On Wednesday, the Fed’s projections showed an upgrade to short-term growth and unemployment forecasts, with greater inflation readings now expected in the short-term — largely driven by the recently-passed $1.9 trillion stimulus package and great progress in the US vaccine rollout. The path for interest rates was kept the same, with lift-off from zero still expected after 2023, though a minority of committee members are now expecting an earlier hike.
Stock markets initially took news in their stride, rallying sharply as longer-term yields pulled back. However, on Thursday, markets were already calling the Fed’s bluff on their insistence that elevated levels of inflation would be transitory. The mood may also have been soured by worrying signs in Europe regarding the pandemic, with Italy again reimposing some restrictions, and the vaccine rollout continuing to lag the rest of the developed world. This saw bond yields again start to rise, with a sell-off in equities hitting tech stocks especially hard. Gold fared better, with the effect of rising yields offset by rising safe-haven demand.
Crypto markets showed strength going into the weekend in anticipation of US stimulus checks going out this week, as Bitcoin broke through all-time highs on Saturday, peaking around $61,800 before retracing and consolidating this week. The institutional world continues to dominate crypto newsflow: the first Bitcoin ETF in Canada has reached $1 billion CAD, Citibank says Bitcoin is at “a tipping point,” Deutsche says Bitcoin is “too important to ignore” and Morgan Stanley is reportedly bidding for Bithumb at a $2 billion valuation while they also outlined their case for crypto as an asset class in an investor note. In typically comical fashion, Tesla’s CFO Zach Kirkhorn and Elon Musk’s titles have changed to Master of Coin and Technoking of Tesla.
Crypto markets have shown resilience to the ongoing sell-off in equities, however, should recent historical correlations be any guide, next week may see these markets collectively struggle.
Indicators (12 March — 19 March)
- Invictus Margin Lending (IML): $1.21, +22.72% (weekly compound annualized rate)
- Invictus Gold Plus (IGP): $1.07, +0.58%
- Emerging Markets Solar (EMS): $1.23, +0.37%
- Crypto10 Hedged (C10): $5.41, -3.82%
- Crypto20 (C20): $3.07, +2.73%
- Invictus Bitcoin Alpha (IBA): $2.82, +2.85%
- Invictus Hyperion Fund (IHF): $0.238 (Updated Q4–20)
- BTC: $57,704.91, -0.15%
- ETH: $1,777.78, -2.64%
- GOLD: $1,736.60, +0.80%
- S&P500: 3,915.46, -0.61%
Launch of the Invictus Liquidity Mining Program
It has become clear over the last year that decentralized exchanges (or DEXs) will continue to play a key role in the crypto ecosystem and its ongoing development. In order to help promote the feasibility of trading C20 and ICAP tokens on these exchanges, we are implementing a liquidity mining program to incentivize the provision of liquidity to the ICAP-ETH and C20-ETH Uniswap pairs.
Get rewarded daily. $10,000 per month will be distributed to each pool. Read more and learn how to add liquidity for C20 and ICAP here!
Reminder: ICAP Litepaper
Last week the litepaper for ICAP was released! The ICAP token, launched December 2020, promises to provide Invictus investors who lock-up their fund tokens with additional investment returns. 10% of all Invictus fund fee revenues are used to buy-and-burn ICAP each month, with the token already appreciating over 150%.
Read the announcement here and learn how to stake in the litepaper here.
Other News & Links
- Invictus in the Press / News
1. The Invictus community is growing faster than ever with the AUM increasing by $49 559 222 in 2021 alone. Check out the chart below!
2. Blockchain News: Future of Index Funds
3. Invictus YouTube feature [Ivan on Tech]
4. Invictus YouTube coverage [Healthy Pockets] - Dear Market, Don’t Worry, Be Happy. Yours, the Fed
- Syntropy News
1. Syntropy + Ethereum: Combining the Power of Each Technology
2. Roadmap Update 03.04–03–18 - Bitcoin Is ‘Too Important to Ignore’: Deutsche Bank Report
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