Welcome to our monthly newsletter where we share insights and developments from across DeFi Technologies Inc. and the wider crypto space.
State of the Market:
The start of 2022 saw significant price drops across all major crypto assets. With fears of a crypto winter beginning to subside, escalations in Ukraine and apprehensions regarding the Federal Reserve’s March interest rates announcement have prevented price breakouts across markets.
This news follows the Fed’s outlined acceleration of a reduction in large-scale asset purchases this past December. As inflation surges to record levels, increasing by 7.5% in January compared to the year prior, more aggressive interventions are predicted.
Considering that the benchmark S&P 500 is down 8.01% YTD and that the tech-dominant NASDAQ index is down 13.06% YTD, it is not unusual to see such drops in an already volatile asset class. Such re-ratings of assets across almost all sectors is indicative of the overall bearish sentiment of the markets.
Despite the current volatility, it is worth noting that the state of the crypto market is still in overall growth. According to PlanB, when looking at measures such as Bitcoin’s 200 week moving average, continuous growth can be observed, iterating its long-term bullish outlook.
In the News:
From Super Bowl LVI to Russia’s legalisation of crypto mining, we’ve rounded up some notable news headlines from this past month.
KPMG Canada adds Bitcoin to its balance sheet, following the likes of Microstrategy, Tesla and Square.
Russia drafts legislation to recognise crypto as a form of currency whilst outlining plans to legalise crypto mining in specific areas.
El Salvador announces Bitcoin Bond Issuance as soon as Mid-March.
Dubbed ‘Crypto Bowl’, Super Bowl LVI featured numerous crypto related ads trying to capture the attention of millions of viewers worldwide.
Binance Smart Chain rebrands to BNB Chain, comprising of BNB Beacon Chain (governance) and BNB Smart Chain (EVM solution).
Twitter added support for Ethereum tipping following its debut of NFT Profile Picture Verification last month.
Bitcoin mining difficulty hit an all-time high of 27.97 trillion hashes reflecting heightened security levels and confidence in the network.
The Luna Foundation Guard behind Terra USD announced a fundraise of $1bn for its Bitcoin denominated UST reserve.
English Premier League champions Manchester City have partnered with Sony to build a replica stadium for fans in the Metaverse.
The number of positive balance Bitcoin addresses hit a record high of 40,276,163 signifying increased global adoption.
DeFi Tech’s Monthly Overview:
February has been as busy a month as ever for DeFi Technologies and its wholly owned subsidiary, Valour Inc. We’ve outlined some key takeaways from this past month below.
Feb 02: Trading Begins for Valour’s Solana ETP in GermanyTrading for Valour’s Solana ETP began on the Frankfurt Stock Exchange, enabling investors to gain exposure to Solana’s native cryptocurrency via regulated exchanges. Advertised as one of the fastest, most scalable L1 blockchains, the Solana ecosystem consists of projects spanning from DeFi, NFTs and the wider Web3 space, with a current, fully diluted market cap of $46.6bn.
Feb 02: Valour Applies for Swiss VQF MembershipValour’s Swiss-based entity DeFi Europe AG has applied for a Swiss VQF membership. Supervised by FINMA, the membership will recognise DeFi Europe as a fully AML compliant broker of digital and virtual assets, emphasising DeFi Technologies’ commitment to transparency and investor utility. Feb 14: DeFi Technologies Launches Valour ETPs for Polkadot and Cardano in GermanyValour’s recently approved Polkadot (DOT) and Cardano (ADA) ETPs commenced trading on the Frankfurt Stock Exchange following their successes on the Scandinavian NGM. The Polkadot ETP opens investors to the $18.7bn market cap (fully diluted) multi-chain network looking to create an internet of interoperable blockchains. Valour’s Cardano ETP, meanwhile, allows retail and institutional investor access to the ‘scalable and sustainable’, proof-of-stake smart contract blockchain, currently ranked 7th in terms of market cap.
Feb 16: DeFi Technologies Receives Approval for Terra and Avalanche ETPs Valour has been granted approval by the Nordic Growth Market to launch Terra (LUNA) and Avalanche (AVAX) ETPs. As the first of their kind on the NGM, the Terra ETP will track the performance of the LUNA token used for staking and governance in the algorithmic stablecoin issuing protocol. Valour’s Avalanche ETP will trace the price of the Ethereum rival smart contract platform for dApps. These soon to be listed ETPs facilitate investor access to the 8th and 10th top ranked coins by market cap, currently standing at $3.0bn and $1.5bn respectively.
Feb 17: DeFi Technologies Announces Staking Partnership With RockXDeFi Technologies and RockX announce a strategic partnership that will enhance the staking framework of DeFi’s current ETPs and other future opportunities. With over $400m in assets staked, RockX will bring risk-free staking to DeFi’s regulated Proof-Of-Stake ETPs, without compromising on security, providing investors with greater exposure to a diversified basket of Web3 offerings.
Feb 28: Valour’s LUNA and AVAX ETP’s launch on the NGMValour’s newly listed Terra (LUNA) and Avalanche (AVAX) ETPs began trading on the Nordic Growth Market. These additions provide investors with an increased basket of crypto asset products, highlighting DeFi Technologies’ mission of expanding investor access to industry-leading decentralised technologies.
As we round up the previous month, we look at the latest figures for Valour’s suite of Exchange Traded Products (ETPs).
For the month ending February ‘22, Valour’s total assets under management (AUM) stood at $206m USD, with total aggregated net sales increasing from the month prior to $315.1m USD. Overall, adoption in the space remains on the rise with Valour’s newly announced LUNA and AVAX ETPs on the NGM offering investors with additional products in the space.
For more information on products and offerings, visit: https://defi.tech/.
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