Crypto Prices Move More in Sync With Stocks, Posing New Risks-continued

January 11, 2022--There's a growing interconnectedness between virtual assets and financial markets.
Crypto assets such as Bitcoin have matured from an obscure asset class with few users to an integral part of the digital asset revolution, raising financial stability concerns.
The market value of these novel assets rose to nearly $3 trillion in November from $620 billion in 2017, on soaring popularity among retail and institutional investors alike, despite high volatility. This week, the combined market capitalization had retreated to about $2 trillion, still representing an almost four-fold increase since 2017.

Amid greater adoption, the correlation of crypto assets with traditional holdings like stocks has increased significantly, which limits their perceived risk diversification benefits and raises the risk of contagion across financial markets, according to new IMF research.

view more

Source: IMF

Global ETP News
Digital Asset Management Review -April
April 28, 2022--Report Summary
In April, the price of Bitcoin and Ethereum fell by 16.3% and 14.4% respectively (data up to 27th April), a reversal following two months of positive returns for the two largest cryptocurrencies.
read more
ETF assets will surpass $20tn by 2026, PwC predicts
May 11, 2022--The accountancy firm canvassed executives representing more than 80% of global ETF assets
Assets managed by exchange traded funds globally could grow to more than $20tn by 2026, according to a PwC report, which revealed executives expect the ETF market's "phenomenal momentum" of the past five years to continue.
read more
ETFGI reports the global ETFs industry gathered US$31.42 billion in net inflows in April 2022
May 11, 2022-ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that the global ETFs industry gathered US$31.42 billion in net inflows in April, bringing year-to-date net inflows to US$337.11 billion.
read more
WEF-Fostering Effective Energy Transition 2022
May 11, 2022--This special edition report on global energy transition builds on the trends from the Energy Transition Index to provide perspective on the current challenges and recommendations on how to navigate the transition through a turbulent macroeconomic and geopolitical environment. A series of compounded shocks pose short-term risks to energy affordability, sustainability, and energy security.
read more
A 'stable' coin lost its peg over the weekend and pledged $1.5 billion in Bitcoin trying to stabilize. Here's how the algorithmic stablecoin was supposed to work-and didn't
May 10, 2022--TerraUSD (UST) was supposed to be the standard-bearer of algorithmic stablecoins, but the turmoil gripping markets is exposing flaws that critics have long charged it with.

After losing its peg over the weekend, the Luna Foundation Guard (LFG), an association meant to support the cryptocurrency, said it would issue $1.5 billion in loans denominated in Bitcoin and UST to stabilize it.

read more
ETF investing plummets to lowest level since Covid crisis hit
May 9, 2022--Net inflows slide to $27bn in April from $117bn a month earlier
Purchases of exchange traded funds fell in April to their lowest level since the depths of the Covid crisis as the war in Ukraine and spiralling global inflation sapped demand.
read more
BIS-Gaining momentum-Results of the 2021 BIS survey on central bank digital currencies
May 6, 2022--Most central banks are exploring central bank digital currencies (CBDCs), and more than a quarter of them are now developing or running concrete pilots. This BIS paper updates earlier surveys that asked central banks about their engagement in this area. The latest responses from 81 central banks show that the Covid-19 pandemic and the emergence of cryptocurrencies have accelerated the work on CBDCs.
read more
IMF Working Paper-Digital Money and Central Bank Operations
May 6, 2022--Summary:
The rise of new and proposed monetary vehicles, including CBDC, stablecoins, payment service providers etc., are unprecedented. An important question for central banks is the extent to which these innovations upend the role of and implementation of monetary policy. The paper focuses on the interest rate channel and if digital money (especially CBDC) will change monetary policy and central bank operations.
read more
ETF launches cap frenetic fund activity in uranium sector
May 6, 2022--After starting to stockpile uranium, Sprott has expanded into equity, buying URNM, and joining Global X by launching an ETF in Europe
The launch of the first two European-listed uranium exchange traded funds, coming hot on the heels of a $1bn US uranium ETF acquisition, are the latest indicators of what has been a flurry of fund activity in nuclear fuel investment.
read more
This is why we'll probably have to work longer than our parents did
May 5, 2022--China is moving ahead with a plan to raise its retirement age.
Many countries face similar issues and are also raising retirement ages.
The changes are in response to ageing populations and declining birth rates.
China's plan to "gradually delay" the country's legal retirement age has managed to unify a wide variety of people around a single sentiment: they don't like it.
read more
Lower Oil Reliance Insulates World From 1970s-Style Crude Shock
May 5, 2022--The war in Ukraine and sanctions on Russia are causing substantial economic spillovers, notably for energy.
Oil prices have climbed, but increases have largely been contained thanks to spare production capacity in some countries and strategic petroleum reserves in others.
read more
IMF-Shocks to Inflation Expectations
April 29, 2022--Summary:
The consensus among central bankers is that higher inflation expectations can drive up inflation today, requiring tighter policy. We assess this by devising a novel method for identifying shocks to inflation expectations, estimating a semi-structural VAR where an expectation shock is identified as that which causes measured expectations to diverge from rationality.
read more
ETFGI reports Crypto ETPs listed globally gathered net inflows of US$785 million during March 2022
April 29, 2022- ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that Crypto ETFs and ETPs listed globally gathered net inflows of US$785 million during March, bringing Q1 net inflows to US$859 million, which is much lower than the US$1.64 billion gathered in Q1 2021.
read more
IOSCO releases report on issues and considerations of market data in secondary equity markets
April 28, 2022--The Board of the International Organization of Securities Commissions (IOSCO) today published a report that sets out some issues and considerations for regulators when reviewing the regulation of market data. The Report Market Data in the Secondary Equity Market: Current Issues and Considerations highlights that market data is an essential element of efficient price discovery and for maintaining fair and efficient markets.
read more
Inflation to be Elevated for Longer on War, Demand, Job Markets
April 27, 2022--The war in Ukraine will quicken inflation, which we now expect to remain elevated for longer than previously forecast on higher commodity costs and broader price pressures.
As the Chart of the Week shows, our latest World Economic Outlook now projects faster consumer-price increases this year for advanced economies as well as in emerging market and developing economies. These forecasts also have a high degree of uncertainty.
read more
Food and Energy Price Shocks from Ukraine War Could Last for Years
April 26, 2022--Shift to more costly trade patterns has begun; transition to cleaner energy could be delayed
The war in Ukraine has dealt a major shock to commodity markets, altering global patterns of trade, production, and consumption in ways that will keep prices at historically high levels through the end of 2024, according to the World Bank's latest Commodity Markets Outlook report.
read more
ETFGI reports assets invested in Active ETFs listed globally reached a record 453 billion US Dollars at the end of March 2022
April 26, 2022-- ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that assets invested in Active ETFs listed globally reached a record US$453 billion at the end of March. Actively managed ETFs gathered net inflows of US$10.12 billion during March.
read more
ETFGI reports ESG ETFs listed globally gathered net inflows of 7 billion US dollars during March 2022
April 25, 2022--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that Environmental, Social, and Governance (ESG) ETFs and ETPs listed globally gathered net inflows of US$7.00 billion during March, bringing year to date net inflows to US$24.88 Bn which is much lower than the US$53.48 Bn gathered at this point last year.
read more
Euro Notches Biggest Drop as Global Payment Currency Since 2011
April 20, 2022--The euro is being used less often as a global payment currency, posting its biggest percentage-point drop in more than a decade in March, as inflation and the war in Ukraine weigh on its appeal for transactions.
read more
IMF-Shockwaves from the War in Ukraine Test the Financial System's Resilience
April 19, 2022--Financial stability risks have risen as war tests the resilience of the financial system through various channels
Chapter 1 looks at the implications of the war in Ukraine on the financial system. Commodity prices pose challenging trade-offs for central banks. Many emerging and frontier markets are facing especially difficult conditions. In China, financial vulnerabilities remain elevated amid ongoing stress in the property sector and new COVID-19 outbreaks.
read more
Financial Stability Risks Grow as War Complicates Push to Contain Inflation
April 19, 2022--While no systemic event has materialized, the balance of risks has tilted more firmly to the downside.
Russia's invasion of Ukraine raises financial stability risks for the world and poses questions about the longer-term impact on economies and markets.
read more
Is the environment or economy a bigger priority? A view from the US
April 19, 2022-- Data shows how US attitudes on whether to prioritize the environment or the economy has changed over time.
The chart below shows how public opinion has shifted.
The battle in the minds of people in the U.S. between prioritizing the environment (even at the risk of curbing economic growth) or the economy (even if the environment suffers), has been a bit of a rollercoaster over the last few decades.
read more
War Dims Global Economic Outlook as Inflation Accelerates
April 19, 2022--The effects of the war will propagate far and wide, adding to price pressures and exacerbating significant policy challenges.
Global economic prospects have been severely set back, largely because of Russia's invasion of Ukraine.
This crisis unfolds even as the global economy has not yet fully recovered from the pandemic.
read more
Private Debt to Weigh on Global Economic Recovery
April 18, 2022--A record rise in private debt could slow the economic recovery, but the drag on growth will vary across countries and within them.
Governments succeeded in lessening the economic pain of the pandemic by providing plenty of liquidity to stricken consumers and businesses through credit guarantees, concessional lending and moratoriums on interest payments.
read more