The U.S. Securities and Exchange Commission is warning listed public companies to disclose crypto damage. The SEC issued letters to companies flagging the need to disclose any potential impacts from mayhem in the crypto markets. “Recent bankruptcies and financial distress among crypto asset market participants have caused widespread disruption in those markets,” the agency’s Division of Corporation Finance says in a asample letter to companies, published Thursday.
(Anna Moneymaker/Getty Images)
Grayscale’s bitcoin trust (GBTC) discount has widened to a record high near 50%. Bearish sentiment surrounding the trust deepened over the last few weeks as fears surfaced that crypto trading firm Genesis Global Trading, which is owned by Grayscale’s parent company, Digital Currency Group (DCG), could file for bankruptcy. DCG is also CoinDesk’s parent company. Shares of the world’s largest bitcoin fund, GBTC, hit a record-high discount rate of 47.3% on Thursday, according to data from crypto index provider TradeBlock.
Crypto trading firm Amber Group has ditched its $25 million Chelsea FC sponsorship deal and is laying off staff. Amber Group, which is backed by Temasek and Sequoia Capital, is terminating its sponsorship deal with the football club, according to a Bloomberg report. The company is also laying off around 300 staff to slash its workforce to less than 400 people. At one point, Amber Group employed more than 1,100.
Market Insight:
(Highcharts, CoinDesk)
FTT, the native cryptocurrency of the now-bankrupt FTX crypto exchange, surged Friday after the platform’s founder, Sam Bankman-Fried, came out in support of an exchange-revival plan proposed by crypto influencer Ran Neuner.
“I continue to think that this would be a productive path for parties to explore! I *hope* that the teams in place will do so,” Bankman-Fried tweeted in response to Neuner’s proposal to restart FTX by issuing a new FTT token and giving it to creditors and depositors.
Neuner, the host of CNBC’s Crypto Trader show that launched in 2020, recommended distributing 100% of profits to token holders, adding that the idea would reestablish FTX as a dominant player and make users whole.
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Chart of the Day
Source: Goldman Sachs
The chart compares bitcoin’s implied volatility with the dollar index, WTI crude, swaps and the S&P 500 going back to September 2021.
Bitcoin’s implied volatility (shown in deep purple at the bottom of the chart), which represents investors’ expectations for price turbulence, has drifted lower this year despite the collapse of several crypto industry leaders, including Terra, FTX and BlockFi.
“The cryptocurrency’s volatility is likely to drop significantly next year – either because all the major risk events are out of the way or speculators lose interest to put on leveraged positions,” Matrixport said.
– Omkar Godbole
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.
