![]() ![]() Sam Bankman-Fried (SBF), spoke at the New York Times DealBook conference about his role in the collapse of FTX. We remain confident about the prospects for crypto assets and blockchain technology and are always available to answer any questions you may have. Despite the observed price shocks, Bitcoin and Ethereum, for example, still present very strong investment cases. In our view, the FTX collapse, as well as the other events that occurred this year (Terra/LUNA, 3AC, Celsius, etc.), have a negligible impact on the fundamentals of the main crypto assets. ![]() Over an extended time frame, fundamentals prevail. At Hashdex, we always reinforce the long-term view for crypto investments. Even so, it was a heavy blow due to the crisis that preceded the downturn in prices. ![]() In historical perspective, November's result is far from being among the worst months for the crypto market. The Digital Culture Index lost 24.3% of its value and the Web3 Smart Contract Platforms Index had the worst performance, plunging 32.2%, mostly due to its exposure to Solana, which lost more than half of its value and is closely related to Alameda Research (the trading firm owned by FTX founder Sam Bankman-Fried). Its relatively better performance can be partially explained by the resilience of the DeFi protocols during this most recent turmoil. Among the CF Benchmarks Sector indices, the best performing was the DeFI Index, which dropped 18.8%. The Risk Parity Momentum Index, co-developed by Vinter and Hashdex, lost 16.7%. By the end of month, the NCI had dropped 16.6%, in line with bitcoin’s decline. A partial recovery took place in the final days of the month, as the NCI soared 12%. At this point, bitcoin traded near US$15,500. However, from November 18 to 21, fears of FTX’s contagion drove the NCI 7% down. The following days were relatively stable. By November 9, the index had fallen nearly 20% month-to-date. After a few days with a slightly positive performance, the Nasdaq Crypto Index (NCI) was hit by the FTX collapse. Unfortunately, crypto assets were an exception to the solid performance of risk assets. Among the good news that led to these results, probably the most important was the announcement of October's CPI (US), which was below market expectations and signaled a slowdown in inflation. Both the S&P 500 and Nasdaq 100 rose 5.5%, their second consecutive positive month. November was a positive month for most risk assets. In the meantime, our team is here to answer any questions you have about these markets. We are releasing our 2023 Crypto Investment Outlook prior to the call, and the trio will discuss what recent events mean for crypto investors in the new year. On Wednesday, Marcelo will join Michael Venuto, Co-Founder & CIO Tidal Financial Group, and Sui Chung, CEO of CF Benchmarks for our monthly call. These articles and others can be found on our Research Center. In the wake of FTX, our CEO Marcelo sent a note to clients emphasizing this perspective, while our Head of Operations Bruno Passos answered questions about how we avoided FTX and the other failures of centralized institutions this year. However, we remain fully committed to providing simple, secure, and regulated access to crypto assets for investors. While most risk assets had positive performance during November, crypto assets were shaken by the fallout from the FTX disaster. The last several weeks have tested the resilience of crypto markets like no other period before. ![]()
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