Markets

Sep 23rd 2023 - ₹2,208,781.00

Year to Date - 55.33%

Since Jan 1st 2022 - 40.46%

Sep 23rd 2023 - ₹132,167.00

Year to Date - 27.82%

Since Jan 1st 2022 - 55.20%

Market Summary

Macro

• The US Fed held rates but assessments indicate they will hold rates high for a long time. In June, the target rate for the federal funds rate was 5.625% for the end of 2023, but it's now closer to 5.5% and is expected to decline to 5.125% in 2024. The unemployment rate was 3.8% in August, and is projected to remain the same in Q4.
  

• In contrast, the Bank of Japan held rates low and pledged to support the economy until a sustainable 2% inflation target is achieved. The yen depreciated in response to this dovish stance, reaching 148.32 to the dollar.

• JP Morgan added Indian rupee bonds to their GBI-EM index. As a result, foreign demand for Indian bonds will increase significantly. This could keep Indian bond yields low and support the Indian rupee.

Digital Assets

• SEC's request to access BinanceUS software faces temporary setback as the judge declines immediate inspection in a hearing held on Sept. 18. Meanwhile, Binance global and CEO Changpeng "CZ" Zhao are seeking the dismissal of the SEC's lawsuit, arguing that the regulator exceeded its authority in the case.

• The repayment deadline for Mt. Gox's creditors has been extended to October 31, 2024, by trustee Nobuaki Kobayashi. The Mt. Gox estate currently holds significant amounts of Bitcoin, Bitcoin Cash, and Japanese yen.

• Grayscale has officially filed for a new Ether (ETH) futures exchange-traded fund (ETF) with the Securities and Exchange Commission (SEC). The Grayscale Ethereum Futures Trust will manage Ether futures contracts with a consistent expiration approach and will not involve cash settlement. Interestingly, this ETF won't need an Ether custodian.

Interesting Finds

• In its latest report, "Is it different this time?", Solidarity explores the factors behind soaring valuations in India's market, the impact of rising per capita incomes, and whether these trends are sustainable. Read the full piece here.

• Authored by experts from the Federal Reserve Board, this paper titled "Tokenization: Overview and Financial Stability Implications" delves into the world of tokenization offering insights into the construction of digital representations (crypto tokens) for non-crypto assets. Read it here.

Quote of the week

“Bitcoin as a global monetary network is scaling while its carbon impact declines. Few industries can claim this achievement.” - Jamie Coutts, crypto market analyst at Bloomberg

Regards,

The BrownRice Capital Team

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.