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White House official: Trump has discussed with oil companies plans to extend the blockade of Iran for several months if necessary.1. Wells Fargo: Still expects the Fed to cut rates twice this year, by 25 basis points, in September and December respectively. 2. ANZ: The Fed is very likely to restart its rate-cutting cycle in the third quarter of this year, most likely at the September meeting. 3. Goldman Sachs: Expects the Fed to cut rates by 25 basis points each in September and December, and believes the possibility of a rate hike this year is very small. 4. Bank of America: Downside risks to economic growth lead us to continue to predict a 50 basis point rate cut by the Fed later this year. 5. TD Securities: By the September decision, the market will have accumulated enough evidence to support the Feds gradual return to an easing cycle. 6. Standard Chartered: Once Warshs nomination is confirmed, the Fed will likely shift its focus to reviving the weak job market and resuming rate cuts. 7. Commerzbank: In the medium to long term, the Fed will be unable to resist pressure from the US president and may cut rates for the first time by the end of the year, followed by two more rate cuts in 2027. 8. Danske Bank: Expects the Federal Reserve to keep interest rates unchanged throughout the summer and eventually resume rate cuts in September and December. 9. Barclays: If inflation falls as expected, the Fed is expected to gain sufficient confidence to begin easing policy around September. 10. ING: Maintains its forecast that the Fed will cut rates twice this year, in September and December. 11. BNY Mellon: Assuming the Strait of Hormuz reopens, the Fed will cut rates twice in the fourth quarter.April 29 - International crude oil futures continued to climb as the standoff in the Middle East is expected to drag on, with the US and Iran continuing their respective blockades of the Strait of Hormuz. "The continued stalemate in negotiations between the US and Iran makes it increasingly unlikely that supplies through the Strait of Hormuz will return to normal in the short term," said Linh Tran, an analyst at XS.com, in a report. She added, "The market is no longer just anticipating risk, but a prolonged period of supply disruption."With the 60-day deadline approaching, US Republicans are discussing whether to authorize a war against Iran.According to Saudi media outlet alhadath, Israeli Prime Minister Benjamin Netanyahu has not received an invitation to travel to Washington.

21Shares Unveils S&P Risk Controlled Ethereum and Bitcoin ETPs

Skylar Shaw

Jul 21, 2022 15:08

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21Shares has launched new risk-adjusted cryptocurrency investment products that are based on the benchmarks of the S&P Dow Jones Indices, with the market meltdown having erased $2 trillion from the value of all cryptocurrencies in only a few months.


More precisely, by rebalancing assets to the U.S. dollar, two new exchange-traded products (ETPs) will aim for a volatility threshold of 40%.

Crypto Investment Products with Considerable Risk

Both exchange-traded products, which will trade on the Swiss SIX Exchange, provide investors access to the two biggest cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH).


Notably, the third-largest stock exchange in Europe and the principal capital market for Swiss equities is the SIX Swiss Exchange, which is a member of the larger SIX Group and operates under the supervision of the Swiss Financial Market Supervisory Authority (FINMA).


The ETPs mix exposure to a volatile cryptocurrency with cash in order to attain an overall aim of moderate volatility. They will trade under the tickers SPBTC and SPETH.


This comes after the company's efforts to introduce the S&P Cryptocurrency Broad Digital Industry (BDM) Index, which contains more than 240 tokens and offers a performance snapshot of the cryptocurrency market.


The index is a development of S&P's newly introduced S&P Digital Market Indices family of benchmarks for digital assets. The business has also said that indexes like SPBTC and SPETH attempt to reduce volatility linked to underlying cryptocurrencies.

Asset Rebalancing

The new risk-adjusted cryptocurrency investment products aim for a volatility level of 40% since they match S&P Dow Jones Indices' benchmarks.


This is accomplished by rebalancing the portfolio or adding additional assets to the USD in times of volatility. To put things in perspective, the benchmarks for S&P indexes manage risk by modifying exposure to the underlying index and altering allocations to U.S. dollars on the fly.


For equal-risk-weighted parity strategies, the S&P Risk Parity Index Series as a whole offers a benchmark that is based on rules. By leveraging futures to reflect various asset classes and the risk/return characteristics of funds provided in the risk parity area, these indexes create risk parity portfolios.


According to Arthur Krause, the director of 21Shares' ETP, the aim of 40 percent relates to volatility rather than investing performance, while large-cap stocks in the US have annual historical volatility of 20 percent. This percentage was 70 percent for Bitcoin and 80 percent for Ethereum, according to him.


We are still in a bear market generally, and inflows to funds are at lower levels than previously, despite the company's crypto inflows setting new all-time highs and just topping $100 billion in new assets under management (AUM) year-to-date. This is shown by CoinShares' most recent weekly report, which reveals that investment product volumes remained very low at $1 billion over the course of the week while digital asset investment products had inflows of $12 million last week.


The Crypto Winter Suite, a group of new products that 21Shares announced last month will be available, targeting both retail and institutional investors in nations including France, Germany, Switzerland, Austria, Sweden, the Netherlands, and Australia.