Daily BriefsUnited States

United States: Bitcoin, Crude Oil, Apollo Strategic Growth Capital, Asia High Yield Bond Index and more

In today’s briefing:

  • BTC Cash-And-Carry Arb Update: Aftermath from the Crash, and How to Time the Trade
  • Crypto In Your Portfolio
  • Weekly Oil Views: OPEC+ Calm Rescues Crude from Omicron-Induced Panic Selling
  • Hashrate Index Roundup 12/05/21
  • The Nightcap from SPAC Track
  • Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers

BTC Cash-And-Carry Arb Update: Aftermath from the Crash, and How to Time the Trade

By Josh Du

  • BTC fell 20% over the weekend. As the trade is delta-neutral: long BTC spot and short BTC futures; directional market movements had no impact on the trade. 
  • In fact, BTC crash led to immediate gains in the futures arb trade as futures prices fell and spread compressed versus spot
  • Using on-chain analysis enables the better timing of the trade by entering the trade when futures open interest is near the upper band of historical levels

Crypto In Your Portfolio

By Etherbridge

  • Bitcoin is both a network and an asset. The Bitcoin network is a real-time gross settlement system comparable to Fedwire (US) and Target (EU).
  • Bitcoin is the first example in history of a global settlement system that possesses no single point of failure.
  • There is clear evidence that including cryptoassets as a portfolio component with allocations as small as 5% can have positive effects on your portfolio’s performance without dramatically increasing risk

Weekly Oil Views: OPEC+ Calm Rescues Crude from Omicron-Induced Panic Selling

By Vandana Hari

  • The OPEC/non-OPEC alliance, by staying with its 400,000 b/d monthly supply increment plan for January, essentially refused to buy into the market’s panic over Omicron.
  • At its ministerial meeting on Dec 2, OPEC+ also pledged to act swiftly (to curtail output) if global demand does come under threat over the coming days/weeks.
  • We expect crude to grind higher albeit through continued volatility as the Omicron picture becomes clearer. Brent could return to mid- to high-70s if the threat is medium to low.

Hashrate Index Roundup 12/05/21

By Luxor Mining

  • December is here, and the red-hot price action we saw at the beginning of November has been put on ice.
  • Hashprice, rig prices, mining stocks are all taking a stiff beating in response to the price action.
  • Bitcoin’s hashprice has fallen below $0.30/TH/day for the first time in two and a half months.

The Nightcap from SPAC Track

By SPAC Track

  • Apollo Strategic Growth Capital (APSG: warrants +47.66%) & American Express Global Business Travel

  • dMY Technology Group, Inc. IV (DMYQ) shareholders approved its merger with Planet

  • Foresight Acquisition Corp. (FORE) completed its merger with P3 Health Partners


Macro; Rating Changes; New Issues; Talking Heads; Top Gainers and Losers

By BondEvalue

US equity markets dropped on Friday with the S&P and Nasdaq closing 0.8% and 1.9% lower respectively as Omicron jitters hit markets along with softer payrolls data. Most sectors were in the red led by Consumer Discretionary and IT, down over 1.7% each. US 10Y Treasury yields moved 4bp lower to 1.38% after falling over 10bp intra-day on Friday due to the risk-off sentiment and softer NFP data. European markets were lower too with the DAX, CAC and FTSE down 0.6%, 0.4% and 0.1% respectively . Brazil’s Bovespa was up 0.6%. In the Middle East, UAE’s ADX was closed while Saudi TASI was up 2.4% on Sunday. Asian markets have opened mixed – Shanghai and STI were up 0.4% and 0.8% while HSI and Nikkei were down 1.4% and 0.6% respectively. US IG CDS spreads widened 1.1bp and HY CDS spreads widened 7bp. EU Main CDS spreads were 0.6bp wider and Crossover CDS spreads were 2.4bp wider. Asia ex-Japan CDS spreads tightened 1.3bp.

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