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You can't buy the Bitcoin ETF on this broker
AND India just blocked 3 exchanges
BrownRice Capital
January 15, 2024
Welcome to BRC’s Breakdown.
Finally, the US SEC approved 11 Bitcoin spot ETFs, in what is likely a watershed moment for the crypto industry. Bitcoin saw a high and low week, as the last week started with buying the rumor, and the week ended with selling the news. Ethereum was not dismayed and rose in double-digit percentage terms.
Let’s see how the markets fared this week:
US’s S&P500 and India’s Nifty50 gained around 2% and 1%, respectively. Rest of the assets around the board took small hits, while ETH stood out as the outperformer, having gained more than 10%.
Here’s a preview of what we’ll cover:
Macro: SEC approves BTC Spot ETFs, US CPI slightly up
Around the World: Indian IT Outperforms, US Inflation Concerns Persist
Crypto: India Tightens Crypto Regulations
AI: CES 2024; Robots That Roll, Clean & Cuddle!
Macro: SEC Approves BTC Spot ETFs, US CPI Slightly Up
US SEC’s approval of 11 Bitcoin Spot ETFs was the main development last week.
With this watershed event behind us, the focus has shifted to
How much flow do these ETFs get?
When will an ETH ETF get approved?
What does it mean for institutional participation in crypto globally?
If you watch one video on these developments this week, watch this:
According to last week’s US CPI report; the change in CPI was slightly above expectations and core CPI was at par with expectations. CPI Increased by 0.3% in December. Core CPI increased by 0.3% as well.
Ethereum's solid outperformance so far this year indicates the crypto market's focus.
What to watch out for? US retail sales report on Wednesday will give an update on the state of the US consumer & could adjust market expectations of a soft landing for the economy.
Around the World: Indian IT Outperforms, US Inflation Concerns Persist
At home, earnings season is well underway led by the IT services industry. While most analysts forecasted tempered earnings for the big 4 IT firms – Infosys, Tata Consultancy Services, HCL Technologies, and Wipro, the earnings surprised everyone.
In the third quarter of FY2024 (September to December 2023), each of the four companies saw increased revenue. Leading the pack was HCL Tech, which saw a 6% growth in topline, against an expected 4% growth by analysts. Operating margins also improved and held strong.
What was more optimistic, however, was the commentary from the top brass. Salil Parekh, CEO of Infosys pointed out two big wins. First, the IT major managed to secure large deal wins worth $3.2 billion with clients, of which nearly three-fourths are net new wins. Second, the depth of services offered is increasing to generative AI.
The collective upheaval of these companies’ stocks since January 11, when the first set of earnings were announced, added $22 billion in market value. India’s market indexes closed the week in the green and the Nifty IT index rose by over 7%.
Beyond India, here are the key global market themes so far this year have been:
The outperformance of Japanese equity markets.
The resurfacing of US inflation concerns pushing back expectations of quick interest rate cuts in the US.
Geopolitical risk with the Middle East situation continuing to be on a boil and Taiwan elections returning the ruling pro-independence party.
India Blacklists Binance and Others in a Crypto Crackdown
The Indian government issued compliance notices to global cryptocurrency exchanges offering services to Indians under the Prevention of Money Laundering Act. This included – Binance, KuCoin, and Huobi, and OKX.
This resulted in 3 things:
The exchanges’ apps were removed from the App Store and PlayStore
The exchanges’ websites were blocked in India
The government says these platforms haven't played by the rules. This includes – not complying with anti-money laundering laws nor registering with the Financial Intelligence Unit (FIU) as regulated crypto exchange services in India have to.
According to them, the move aims to curb alleged illegal operations and ensure adherence to Anti-Money Laundering regulations.
The recent surge in crypto adoption in India, making it the second-largest market globally, has prompted regulatory responses.
The government emphasizes the importance of all domestic and offshore digital asset providers registering with the FIU as "Reporting Entities." This includes fulfilling obligations outlined in the PMLA 2002, such as stringent Know Your Customer (KYC) guidelines.
What's next is unclear right now. However, India is stepping up its crypto game. A new regulatory framework is coming in 2024, with stricter KYC, proof-of-reserves, and even crypto taxes potentially on the horizon.
What do you think? Is this a good move for India's crypto future? We’d love to hear from you.
CES 2024; Robots that roll, clean & cuddle!
Forget flying cars, this year’s CES is all about AI assistants for every corner of your life.
Here are some of the interesting products unveiled so far:
Samsung Ballie: Your rolling buddy can project movies, answer calls, & clean floors! Think R2-D2 with a projector head.
Baracuda Smart Mirror: This mood reader adjusts lighting & offers meditations based on your face. Goodbye, bad hair days!
LG's Rosie: Chores got you down? Rosie's your new home-managing bestie, controlling your smart appliances & lending a helping hand.
Rabbit r1: Remember Tamagotchi? This AI pal helps with digital tasks & learns your preferences. Your pocket-sized productivity boost!
Invoxia Minitailz: Spoil your furry friend with this AI-powered collar that tracks vitals & alerts you to health concerns. Pawsome peace of mind!
Tech is getting closer to home (and furbabies!) than ever.
Which AI assistant would you welcome into your life? Let us know.
Interesting Reads
Why Facts Don’t Change Our Minds
This article explores why people cling to false beliefs and the challenge of changing minds. It highlights the conflict between the human need for truth and the desire to belong to a social group.
Read it here.
How Gucci Is Reinventing Itself
Gucci, the Italian luxury brand, has a new CEO at the helm. A Frenchman by the name of Jean-Francois Palus was the auditor of Kering, the parent company of Gucci, as well as Saint Laurent and Balenciaga. His task is to – reinvent Gucci. And he’s doing it by targeting older and richer customers.
Read it here.
This Broked Doesn’t Want The Bitcoin ETF
The Bitcoin ETF was approved last week. But one of the largest ETF providers in the world is not offering it. The reason? Digital assets don’t align with their traditional offering of stocks and bonds.
Read it here.
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