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This week Bloomberg leaked Biden’s plans for an overhaul to the US corporate and capital gains tax regimes (the latter is proposed to increase from 23.8% to 43.4%), which saw crypto, as well as stock indices in the US undergo a sharp selloff — largely on the high number offered as the administration’s opening gambit. The relatively undertaxed US tech sector suffered disproportionately under expectations that they’d have a target on their back. The US is the largest global economy, and as such, the selloff extended beyond the country’s geographic boundaries, spilling over into global equity markets. However, it is important to recognize that capital gains tax changes tend to induce short-lived sell-offs in markets as investors opt to bring forward profit-taking at a lower tax rate. History has shown that these effects don’t tend to persist beyond the tax hike.
The events of the week bolstered demand for bonds, with the 10-year yield continuing its decline from the late-March peak and the dollar suffering under these falling yields. Gold also benefited under these conditions — threatening the $1,800 level and looking poised to continue bouncing after weeks of disappointment for gold bugs. However, it is unlikely that rising bond yields can be held off indefinitely with inflation expectations likely to continue trending up as the pandemic is brought to heel. This remains central to the current market psychology.
Crypto prices suffered alongside stocks this week on Bitcoin’s relatively overheated technicals and a deep correction Sunday that led to a record $10 billion futures liquidations. The tax hike news added insult to injury to see the flagship cryptocurrency dip below the $50,000 level late in the week. Ethereum, and other smart contract platform tokens BNB and Solana held up far better, rallying before falling alongside Bitcoin early Friday (though Solana posted all-time highs and a sizable weekly gain nonetheless).
The big winner, against all odds, was the memecoin Dogecoin, which blasted to all-time highs around $0.47 early in the week to briefly make it the 4th most valuable crypto. It subsequently staged another ultimately failed push on so-called Doge Day (April 20th) that peaked under the all-time highs. This was a classic buy the rumor, sell the news story. At the time of writing, Dogecoin was once again hovering around the $0.25 mark.
In crypto industry news, Facebook unveiled their revised crypto plans, now looking to implement fiat-backed stablecoins to (at first) facilitate microtransactions on their platform. Binance also continues to pad their staff with a large complement of former regulators. The latest to join is the former head of Office of the Comptroller of the Currency, Brian Brooks, who will serve as Binance.US CEO.
Indicators (16 April — 23 April)
- Invictus Margin Lending (IML): $1.23, +16.36% (weekly compound annualized rate)
- Invictus Gold Plus (IGP): $1.10, +0.92%
- Emerging Markets Solar (EMS): $1.26, +0.26%
- Crypto10 Hedged (C10): $6.50, -13.47%
- Crypto20 (C20): $4.18, -8.96%
- Invictus Bitcoin Alpha (IBA): $2.56, -16.86%
- Invictus Hyperion Fund (IHF): $0.248 (Updated Q1–21)
- BTC: $51,776.12, -18.10%
- ETH: $2,410.48, -4.21%
- GOLD: $1,787.80, +1,74%
- S&P500: 4,134.98, -0.85%
The first quarterly report for this year has been released recently. This year has picked up where 2020 left off, with continued rapid expansion of Invictus Capital as a company (we’re still hiring!) and a breakneck crypto rally. Our AUM growth surpassed expectations in parallel with a barrage of incredible headlines that continue to demonstrate that the crypto market is on the cusp of breaking into the mainstream. AUM swelled 50% to end at over $100 million, with a peak of $112 million achieved in February.
This is still only the beginning; we are all hopeful that the growth of our team is reflected in continued growth in our reach. It remains our mission to provide a truly world-class, holistic alternative investment experience to all investors, whether big or small, over the coming quarters and decades. Please read on to uncover a wealth of content, including broad crypto and traditional market commentary, company updates (now with a regular section on ICAP), and concise fund-specific reports where we elaborate on this quarter’s stellar performance.
Binance Smart Chain Integration
In line with our mission to democratize access to investment opportunities, we now accept Binance Smart Chain (BSC) based assets for investment in the form of BUSDT and BUSD. You can send this to your unique deposit address accessed via the cryptocurrency transfer payment method.
The Invictus Wallet does not support Binance Smart Chain-based crypto at this time.
Invictus Investor Survey
At Invictus Capital we are continually looking to improve our offering and would like to invite our community to give us their feedback.
Take the 2 minute survey here.
Other News & Links
- Invictus in the Press/News
1. Bitcoin Magazine coverage: AS THE BITCOIN RALLY PROPELS INVICTUS, ICAP OFFERS INVESTORS EXPOSURE TO ITS SUCCESS (also covered by Nasdaq here)
2. Blockchain News coverage: Explosive growth alongside peace of mind offered by C10 from Invictus
3. IBA appreciated 42.57% over Q1–21; C10 gained 119% whilst C20 captured a gain of 222%! Check out the charts below and read the quarterly report above.
4. The IML Fund boasted industry-leading performance of 20% APY this past quarter (with a 7-day average APY peaking at over 50% on February 24).
- Biden tax fears leave Bitcoin, Ether groggy
- Binance.US hires former bank regulator Brian Brooks as CEO, former head Coley to depart
- Syntropy News
1. Syntropy continues to achieve impressive milestones. Join them for exciting events, launches, surprises and more on their ongoing 60 Days of Growth. Follow them on Twitter for updates!
2. You can still register for Syntropy’s Hackathon competitions. Find out more here!
3. Meltem Demirors Joins Syntropy to Launch Alliance for an Open Internet
4. Register for Syntropy’s upcoming AMA here!
- Facebook-backed Diem aims to launch digital currency pilot later this year
- Dogecoin eclipses XRP as 4th largest cryptocurrency ahead of ‘Dogeday’
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