Welcome to ETC Group

ETC Group logo

Please select your country of residence and investor profile in order to access content and information around our ETC products

Cookie Settings

Required cookies

These cookies are necessary to ensure the smooth functioning of this website (e.g. session cookies, cookie to store the selected cookie preferences, etc.). These required cookies can thereforce not be deactivated.

Optional cookies

Functional cookies are used to ensure the smooth functioning of all tools on the wesites. The entire and proper function of the webite is available to the user only with the use of functional cookies. The use of analysis cookies serves the ongoing quality improvement of this website and its content. By using them, wa aim to maximise user satisfaction.

Avis Important

Des produits tels que BTCetc - ETC Group Physical Bitcoin ("BTCE") sont des Exchange Traded Commodities ("ETC"), instruments financiers considérés comme des titres de créances complexes par l'Autorité des Marchés Financiers présentant des risques difficilement compréhensibles par le grand public. A ce titre, leur distribution en France répond à des règles spécifiques. Il relève de la responsabilité des intermédiaires et investisseurs professionnels souhaitant offrir des ETCs à leurs clients de s'assurer que leur distribution auxdits clients est réalisée dans le respect de la réglementation française.

Terms of website use

These terms and conditions (the “ Terms ”) tell you the terms on which you may make use of our website https://etc-group.com/ (“ Website ”).

Please read these Terms carefully before using this Website. By using this Website, you are deemed to have read and accepted our Terms and Conditions as set out below. If you do not agree to these Terms, you must not use this Website.

Your attention is particularly drawn to the disclaimers and limitations of liability set out in the sections below headed: “ Disclaimer ”, “ No Offer ” and “ Limitation of Liability ”.

Information about us

The website is owned and operated by ETC Management Ltd, a company registered in England and Wales under number 12165332 with its registered office at Gridiron, One Pancras Square, London, England, N1C 4AG.

You can contact us by email at info@etc-group.com.

References to “ ETC Group ”, “ we ”, “ us ” and “ our ” in these Terms refers to ETC Management Ltd and our affiliates.

These Terms

These Terms constitute the agreement between you and us for the use of this Website and the contents and services available through it.

We may change these Terms from time to time. Any changes we may make to these Terms in the future will be posted on this Website and, where appropriate, notified to you by email. By continuing to use and access this Website following such changes, you agree to be bound by any changes we make. Please review this page frequently to see any updates or changes to these Terms.

If you commit a breach of these Terms, we reserve the right at our sole discretion to immediately and without notice suspend or permanently deny your access to all or part of this Website.

Website

We provide this Website on an "as is" and "as available" basis with all faults. We do not guarantee that this Website, or any services or content on it, will always be available or be uninterrupted. We may suspend, withdraw, discontinue or change all or any part of this Website without notice. You agree that your use of this Website is at your own risk. We will not be liable to you if for any reason this Website is unavailable at any time or for any period.

You are responsible for ensuring that all persons who access this Website through your internet connection are aware of these Terms and other applicable terms and conditions, and that they comply with them.

We may update and change this Website from time to time to reflect changes to our products and services, our users' needs and our business priorities.

Distribution of Information

The distribution of the information and material on this Website may be restricted by law in certain countries. None of the information is directed at, or is intended for distribution to, or use by, any person or entity in any jurisdiction (by virtue of nationality, place of residence, domicile or registered office) where publication, distribution or use of such information would be contrary to local law or regulation.

You must inform yourself about and observe any such restrictions in your jurisdiction. By accessing this Website you represent that you have done so. By accepting these Terms, you hereby confirm that you are allowed to access this Website pursuant to applicable laws.

Lawful use

You may use this Website only for lawful purposes. You must not use this Website in any way that breaches any applicable local, national or international law or regulation, or in any way that is unlawful or fraudulent or has any unlawful or fraudulent purpose or effect.

You must not use or attempt to use any automated program (including, without limitation, any spider or other web crawler) to access our system or this Website. You must not use any scraping technology on this Website.

Disclaimer

Certain documents made available on this Website may have been prepared and issued by persons other than ETC Group. This includes any prospectus and additional documents thereto. ETC Group is not responsible in any way for the content of any such document.

While we take all reasonable care to ensure the information and analysis which we publish on this Website are as accurate as possible, we cannot promise that they will be complete, accurate and up to date.

Opinions and any other contents on this Website are provided by us for informational purposes only and are subject to change without notice. We are not giving you any advice (investment, financial, legal or otherwise) in respect of any of the information on this Website. You should obtain professional or specialist advice before taking, or refraining from, any action based on any information on this Website. Any reliance that you may place on the information on this Website is at your own risk.

To the maximum extent permitted by law, we disclaim any and all implied conditions, warranties and representations that this Website and the information and services available through it are of satisfactory quality, accurate, fit for a particular purpose, or non-infringing.

No offer

Nothing on this Website should be construed as an offer, or recommendation, to purchase or dispose of any product or securities. The prices and valuations published on this Website are indicative and are for information purposes only, as is other information displayed on this Website.

Any person making offer of securities described on this Website shall observe and strictly comply with restrictions on the usage of information pursuant to these Terms, as well as any restriction imposed by a prospectus published with respect of any securities described or applicable laws and regulation, including without limitation restrictions imposed by the EU Prospectus Regulation (REGULATION (EU) 2017/1129 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 14 June 2017).

Authorised Investors

Some documents displayed on this Website and its content are restricted to “Professional Investors” only and are not intended for retail or private investors. By making use, opening, or downloading such documents, you agree that you are an “Institutional Investor” (as defined here: https://www.handbook.fca.org.uk/handbook/COBS/3/5.html), and have read, understood and accepted the conditions.

The securities described on this Website are not permitted to be offered for sale in all countries and are in each case reserved for investors who are authorised to purchase the securities. Selling restrictions applicable to specific products are set out in the relevant prospectus and should be read carefully by investors. Any restrictions imposed by the relevant prospectus are in addition and without prejudice to any restriction or prohibition established by laws or regulations of any jurisdiction.

United States Persons and legal entities resident in the United States

Securities issued by ETC Group have not been registered under the U.S. Securities Act of 1933, as amended, (the "Securities Act"). The Bonds are being offered outside the United States of America (the "United States" or "U.S.") in accordance with Regulation S under the Securities Act ("Regulation S"), and may not be offered, sold or delivered within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

The information provided on this Website is not directed to any United States person or legal entity or any state thereof, or any of its territories or possessions.

U.S. PERSONS (AS DEFINED IN REGULATION S) AND LEGAL ENTITIES RESIDENT IN THE UNITED STATES MAY NOT ENTER THIS WEBSITE.

Information from this Website may not be distributed or redistributed into the United States or into any jurisdiction where it is not permitted.

Limitation of liability

ETC Group shall not be responsible for any damage (including, without limitation, damage for loss of business or loss of profits) arising in contract, tort or otherwise from the use of, or inability to use, this Website or any material contained in it, or from any action or decision taken as a result of using this Website or any such material.

We do not exclude or limit in any way our liability to you where it would be unlawful to do so. This includes liability for death or personal injury caused by our negligence or for fraud or fraudulent misrepresentation.

Viruses

We do not guarantee that this Website will be secure or free from bugs or viruses.

You are responsible for configuring your information technology, computer programmes and platform in order to access this Website. You should use your own virus protection software.

You must not misuse this Website by knowingly introducing viruses, trojans, worms, logic bombs or other material which is malicious or technologically harmful. You must not attempt to gain unauthorised access to this Website, the server on which this Website is hosted or any server, computer or database connected to this Website.

Risk Warnings

You should always bear in mind that:

  • Cryptoassets are a highly volatile asset class. Your capital is at risk. The value of cryptoassets can go down as well as up and you can lose your entire investment.
  • Past performance is not an indication of future performance.
  • Rates of exchange may affect the value of investments.
  • Applications to invest in securities referred to on this website must only be made on the basis of the relevant prospectus.

Investors should refer to the section entitled “Risk Factors” in the relevant prospectus for further details of these and other risks associated with an investment in the securities offered by the Issuers before investing.

Copyright

All content and the design of this Website are owned by ETC Group or our licensors and protected by copyright and other applicable laws.

Any copying of the website or of its content requires the prior written consent of ETC Group.

Your Privacy

ETC Group respects the privacy of users. Please see our Privacy Policy for information setting out how we handle personal information collected through the Website.

Hyperlinks

Some of the hyperlinks contained on the Website may lead the user to external websites that are not under the control of ETC Group. ETC Group does not approve or endorse the contents of such websites and does not control the content of any such websites. When the user clicks on such a link, the user will leave the Website. ETC Group is not responsible for the content of any websites reached by means of such a link.

Governing Law and Jurisdiction

These Terms and Conditions and your access to and use of this Website and the content are subject to the laws of England and Wales. However, if you are a consumer resident in another part of the UK or in any EU country, then you will also be entitled to any additional protection afforded to you under your national consumer protection laws.

You can bring legal proceedings in respect of these Terms in the English courts or, if you are a consumer resident in another part of the UK or in any EU country, the courts of your home country.

The products displayed on this website are not available for subscription or purchase by retail investors in your selected jurisdiction. Please contact your broker or financial adviser for further information.
This website and the products displayed on this website are not available to retail investors in the United Kingdom. Please contact your financial adviser for further information.
back to articles
Cet article n’est disponible qu’en anglais
/blog/thumbnails/weekly_22_2x.jpg
newsletter
Tom Rodgers
Tom Rodgers Head of Research
Partager Share on Linked In Share on Twitter

ETC Group Crypto Minutes Week #22

Markets flirt with two-year lows before a relief rally, ETC Group research shows why crypto futures are the future for crypto trading, eBay follows Instagram with Ethereum NFTs, crypto is now JP Morgan’s preferred alternative asset, and a16z debuts the biggest blockchain fund in history.

Markets seek bottom after bruising month

graph
Data as of 31 May 2022

It has been a vexing month for crypto buyers and HODLers, but the bleed-out appears to have slowed at least for the moment. From a 16-month low of $1.2 trillion on 28 May markets added around $110bn in total market cap.

With the macro picture highly charged and uncertainty everywhere, underpinned by central bank rate hikes; war in Ukraine; and soaring prices for staple foods and commodities, investor sentiment has been relentlessly bearish in May. But when everyone is following the market down, and with no respite, this sets up the potential for a squeeze to the upside.

Over the past two weeks traders have demonstrated a clear preference for those blockchains that have stayed live and secure the longest. Certainly, in the wake of the destructive collapse of Terra, those newer blockchains drawing in hype and speculators have suffered the most.

Ethereum disappointed: because of its dominant position in NFT and DeFi markets, ETH tends to rebound more quickly from lows than the rest of the market. Ethereum's Merge - its long-awaited switch to Proof of Stake - is now due in August , but an uncharacteristic block reorganisation on the Beacon chain dampened spirits somewhat.

Smart contract chain Tezos (XTZ) had the best of the last fortnight, with markets repricing it 17.3% higher. Cardano (ADA) claimed second place with a 16.7% rise.

The rapid collapse of Terra (LUNA) and its now-abandoned algorithmic stablecoin UST shows the need to ‘go slow' in crypto, said Cardano founder Charles Hoskinson in a Coindesk interview.

Hoskinson has faced years of criticism for insisting on formal verification methods - rigorous testing techniques usually reserved for high-stakes applications such as space flight - in developing the Cardano blockchain. That opened the door to faster-moving rivals to pull in users and market share.

However.

If you move too quickly, as we've seen with LUNA, you actually get it to work until it doesn't, and then when it doesn't it's a catastrophic failure and everybody loses their money,

Hoskinson said.

Despite early headlines claiming a hack against Terra as the reason for the $40bn blockchain's failure, recent research shows the model was critically flawed from the beginning, and in fact worked exactly as intended, with large holders arbitraging away mispricing.

Terra's demise has renewed regulator focus on stablecoins in particular.

The UK Treasury department published a consultation paper on Tuesday 31 May suggesting it should fold stablecoins into existing legislation, while giving powers to the Bank of England to manage failed issuers “ of systemic importance ”.

a16z debuts $4.5bn Crypto Fund 4

Testament to the idea that the underlying technology is moving ahead undaunted by spot market weakness was the 25 May launch of a gargantuan $4.5bn crypto fund by Andreessen Horowitz (a16z).

$1.3bn will be earmarked for seed funding startups, with $3bn for venture investments, a16z said .

That brings the total the Silicon Valley VC giant has invested in crypto and blockchain to more than $7.6bn. Crypto Fund 4 is more than double the size of the $2.2bn Crypto Fund 3 , launched in June 2021.

This move is less surprising when you look at the history of a16z. Co-founder Marc Andreessen invented the first graphical web browser, Mosaic, at age 19 , arguably doing more than anyone else to bring the internet into hundreds of millions of homes worldwide. As an early investor in the most impactful Web2 companies: Facebook, Airbnb, Instagram and Twitter, Andreessen has been at the forefront of tech for decades.

In its recent State of Crypto report , a16z researchers flagged up Ethereum as the outstanding blockchain from a technical perspective, drawing in by far the largest number of monthly active developers since its launch.

graph

General Partner Arianna Simpson announced the Crypto Fund 4 first investment : blockchain-based carbon credit tokenisation platform Flowcarbon. Buyers can purchase Ethereum-based ERC-20 tokens backed by certified carbon credits issued in the last five years, she explained. Flowtoken's GNT token can be used as collateral for lending, as an asset for treasury, as stablecoin reserves or as an on-chain offset.

On-chain carbon credits represent an innovative primitive that can be integrated into the existing DeFi ecosystem as a composable financial instrument and used creatively by web3 builders to come up with new ways to incentivise climate-positive behaviours.
graph

In March 2022, Electric Capital - they of the influential Developer Report - closed a pair of funds totalling $1bn to invest in crypto tokens and web3 architecture.

Matt Huang's VC firm Paradigm held the previous record for fund size with its $2.5bn Paradigm One , launched in November 2021.

Investing in the infrastructure around technological innovation waves is huge business - no matter what current market price of cryptoassets may suggest. In the 1950s, the computer mainframe arrived to change the world. In the 1960s it was the microchip, in the 1980s the personal computer and in the 1990s it was the early version of the internet, or Web1. The 2000s brought us Web2, and the 2010s ushered in the age of mobile internet.

The 2020s are clearly the era of the blockchain, and the winners will be the operating systems of the future.

eBay debuts NFTs with Ethereum and Polygon

Just weeks after Instagram launched NFTs with Ethereum and Polygon, $27bn market cap eBay has moved to bring the unique, collectible tokens to its marketplace using the same blockchains.

You don't have to be a crypto expert to buy, sell and collect NFTs,

said OneOf CEO Lin Dai.

[We] are bringing transformative Web3 technology to the next 100 million non-crypto-native mass consumers.

Florida-headquartered tech firm OneOf works with the Tezos (XTZ) and Ethereum/Polygon (ETH/MATIC) blockchains to produce music and art-based NFTs.

Despite headlines of a ‘collapse' in NFT sales, weekly sales data actually shows the industry in rude health. And so, reports of the death of an industry which only appeared in January 2021 appear now to be premature.

graph

eBay's move to follow Instagram, TikTok and global brands like Formula 1 into NFTs reinforces the idea of Ethereum as the infrastructural base of Web3, with add-on Polygon allowing cheaper fees and faster settlement precisely the type of improvement that apes the stature of the early internet.

The protocols that formed the base layer of the internet, like TCP/IP, were not the be-all and end-all. It was the interesting tech built on top of them that really changed the world.

JP Morgan: Crypto our 'preferred alternative asset class', replaces real estate

What a difference a few years makes. In 2017, readers may recall seeing the CEO of Wall Street giant JP Morgan dismiss Bitcoin and crypto as “a fraud that will eventually blow up…it's worse than tulip bulbs”.

But in a May 2022 report, the Wall Street giant said cryptoassets had leapfrogged real estate to become its preferred alternative asset class.

Analysts reaffirmed Bitcoin's current ‘fair value' at $38,000, some 26.5% below current spot prices. Public markets have already priced in significant risks of a recession in the US and Western Europe, and crypto markets have repriced significantly lower since the collapse of Terra, the bank's analysts wrote.

A potential lagged repricing keeps us more cautious on private equity, private debt and real estate over the coming quarters,

JP Morgan analysts said.

We thus replace real estate with digital assets as our preferred alternative asset class along with hedge funds.

In recent days, JP Morgan has begun using blockchain for collateral settlement, Bloomberg's Yueqi Yang reported , with its in-house platform eventually serving as a bridge to DeFi protocols like Uniswap.

Tokenised equities or fixed income assets represented on blockchains can greatly improve settlement speeds from the current T+2 standard. Crypto markets also trade 24/7/365, in stark contrast to the five-day weeks and stock market holiday closures common across financial markets.

The bank's first such transaction came on 20 May, when two of its entities transferred the token representation of BlackRock money market fund shares as collateral on its private blockchain. The effort will allow investors to pledge a wider range of assets as collateral and use them outside of market operating hours,

Yang explained.

Venture funding is a key metric to watch to gain a sense of the future moves likely from crypto markets, JP Morgan added.

If VC funding dries up from here…then a return to the long winter of 2018/19 would look more likely. Thus far there is little evidence of VC funding drying up post-Terra's collapse.

The best of the rest

31 May 2022: Paraguay bill regulating crypto trading and mining moves forward

27 May 2022: ETC Group research shows why crypto futures are the future of crypto

25 May 2022: LATAM's largest exchange Mercado Bitcoin offers USDC stablecoin on Stellar

24 May 2022: Decentralised exchange Uniswap (UNI) crosses $1 trillion trading volume

24 May 2022: One in 10 Eurozone households now owns crypto, says European Central Bank

24 May 2022: Federal Reserve survey says 12% of US households hold crypto

18 May 2022: SEC Chair uses crypto as justification for budget increases

18 May 2022: German regulator BaFin calls for EU-wide DeFi legislation

Disclosure | Copyright © 2022 ETC Group. All rights reserved

Plus d'articles