Markets

Hamilton Lane Becomes First Wealth Manager to Launch Fund on Solana Blockchain

Published

9 months ago

27 July, 2024

Hamilton Lane Becomes First Wealth Manager to Launch Fund on Solana Blockchain

With more than $920 billion in assets under management and supervision, Hamilton Lane is one of the world’s largest alternative asset investing firms. On Tuesday, it announced the launch of a private credit bottom on Solana blockchain. Investors can now access the firm’s Senior Credit Opportunities Fund, or SCOPE, via the network.

To do this, Hamilton Lane has partnered with Libre, a Web3 protocol for issuing and distributing funds on-chain. Libre is a joint venture between WebN Group, hedge fund Brevan Howard, and Nomura’s cryptocurrency firm Laser Digital.

SCOPE’s tokenization offers an opportunity to broaden Hamilton Lane’s distribution by accessing “very affluent, crypto-native” traders, Libre CEO and founder Dr. Avtar Sehra told Fortune.

“A new audience”

Libre serves as the underlying infrastructure, connecting tokenized real-world assets, or RWA, to users. Libre enables accredited, professional, and institutional investors on networks like Solana to directly access “high-level funds on-chain in a fully compliant manner, as well as ancillary services for secondary trading and secured lending where available,” the companies said in a joint statement. According to Libra’s Sehra, Solana’s “low latency and throughput capability” makes it an attractive network for tokenization.

Until now, the closest Solana users could get to tokenized funds was through Ondo Finance, which tokenizes U.S. Treasuries. Ondo has launched yield-bearing securities USDY AND USE on Solana, the latter supported by 95 million dollars Black rock USD Institutional Digital Liquidity Fund (BUIDL). However, this will be the first institutional fund launched directly on Solana.

This isn’t Hamilton Lane’s first foray into the blockchain world, having previously tokenized SCOPE and an equity fund via the Securitize digital securities issuance platformOf those, Hamilton Lane is “very proud” of the inflows it’s seen so far, Victor Jung, head of digital assets, told Fortune. But today marks its first attempt at Solana and its first attempt at tokenizing collateralized loans.

“This is for the decentralized finance natives. We believe this is just the beginning of a part of the financial asset class that will be available to a new audience with a different risk-return profile,” Jung said.

What are tokenized RWA?

Tokenizing RWAs means bringing virtually any asset class (cash, real estate, securities, private credit, art) onto a blockchain. Tokens are minted to digitally represent assets 1:1 and are stored and traded on public ledgers. The hope is that this will create greater liquidity, transparency, and accessibility. Proponents argue that it will modernize and democratize conventional financial markets.

“We believe the next step forward will be the tokenization of financial assets, and that means every stock, every bond. […] will be on a single general ledger,” BlackRock CEO Larry Fink told Bloomberg TV Marchwhile also announcing the company’s tokenized fund, BUIDL.

This year also saw the debut of a startup called Superstate whose funds are based entirely on the tokenization of RWA, including Treasury bills.

The boom in private credit

First appearing in the 1980s, the private credit sector It was reborn after the 2008 financial crash, and has since grown in popularity. It is thought to be worth more than $3.14 trillion, according to JPMorgan estimates.

Private credit involves nonbank lenders, such as private equity funds or alternative asset managers, providing loans to small and medium-sized businesses, which are often highly leveraged and typically cannot borrow in corporate bond markets. Investors in private credit funds receive relatively high returns to compensate them for holding assets that can be harder to sell than traded loans. It also is a way for investors to hedge against price swings in public markets and gain exposure to a broader spectrum of companies beyond those listed on public exchanges.

SCOPE, launched in 2022, is aimed at investors seeking “potential safety and return in both favorable and adverse market conditions,” according to Hamilton Lane websiteWith approximately $556 million in AUM, it offers an annualized return of 10% for USD investors.

Why Tokenize RWA?

One advantage is the “books and records” side of things, Nick Ducoff, head of institutional growth at the Solana Foundation, told Fortune. In off-chain markets, the beneficial owner of a security is tracked by the transfer agent. Once the transfer of ownership is recorded by the agent, the actual transaction happens a day later. But on-chain, ownership and value transfer happen immediately, simultaneously, and are publicly reported.

A second benefit is that, on-chain, tokenized RWA holders can then exchange them for a variety of other tokens, not just fiat currencies, on secondary markets, increasing liquidity.

For example, USDY, a tokenized note from Ondo, is backed by short-term U.S. Treasuries and demand bank deposits. “You can literally trade any token listed on a decentralized exchange for USDY. You can trade your WIF for USDY and all of a sudden you’re getting a Blackrock iShares Treasuries Fund, for your WIF, BONK, SOL, or USDC, right?” Ducoff said, citing the abbreviations of several popular memecoins.

While SCOPE is a fund for high-income investors, some have expressed skepticism about the demand for tokenized financing platforms.

Tokenized private credit issuers like Maple and Centrifuge are “trying to sell to crypto natives, which I think is very difficult because sometimes these assets have long lock-ups,” Krupetsky, senior director of corporate development for institutions and capital markets at Ava Labs, told Fortune Morgan. Some crypto investors don’t want to do KYC and can access a 700% return profile on a memecoin, compared to a 12% return over two years, he added. He noted a “product market fit mismatch” between those being targeted and the underlying asset itself.

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Markets

Bitcoin, Ethereum See Red as Markets Crash on Volatility

Published

9 months ago

1 August, 2024

Financial Block Staff

Bitcoin, Ethereum See Red as Markets Crash on Volatility

Bitcoin AND Etherealalong with the rest of the top 10 cryptocurrencies by market cap, appear to be in hibernation on Thursday morning.

At the time of writing, the Bitcoin Price is still below $65,000 and 2.2% lower than it was this time yesterday, according to CoinGecko data. Things are worse for the Ethereum Pricewhich is 3.7% lower than 24 hours ago at $3,185.22. The drop in ETH’s price is identical to that of Lido Staked Ethereum (stETH), a liquid staking token for Ethereum.

In recent days, falling prices have led to the liquidation of derivative contracts worth $225 million, according to Coin glassAnd about half of that, about $100 million, was liquidated in the last 12 hours.

When a trader is liquidated, it means that their position in the market has been forcibly closed by an exchange or brokerage due to a margin call or insufficient collateral. Margin is especially important when it comes to leveraged positions, which allow traders to control a multiple of their deposit, such as opening a $10,000 position with only $1,000 in their account.

Now that Bitcoin has been in the red for three days in a row, there is a chance that the world’s oldest and largest cryptocurrency could sink even further, BRN analyst Valentin Fournier said in a note shared with Decrypt.

“Bitcoin has closed in the red for three days in a row, with one-way trading showing limited resistance from bulls. Ethereum had a slightly positive Monday with strong resistance from bears who have won the last two days,” he wrote. “This momentum could take BTC to the $62,500 resistance or even the $58,000 territories.”

Looking ahead, Fournier said BRN’s strategy will be to “reduce exposure to Bitcoin and Ethereum and find a better entry point after the dip.”

This is despite Federal Reserve Chairman Jerome Powell’s comments yesterday on interest rates being widely regarded as accommodating and indicative of FOMC rate cuts in September.

Singapore-based cryptocurrency trading firm QCP Capital said the rally in stocks, which sent the S&P 500 up 1.6% from Wednesday’s close, was not felt in cryptocurrency markets.

“Cryptocurrencies have seen a broad sell-off overnight and into this morning,” the firm wrote in a trading note. “The market remains poised as traders pay close attention to daily ETH ETF outflows and further supply pressure from Mt Gox and the US government.”

Meanwhile, the other top-ranking coins are showing mixed performance.

Solana (SOL) is down 7.2% since yesterday to $169.13. Things are even worse for its most popular meme coins. In the past 24 hours, the most popular meme coins Dogwifhat (WIF) are down 12% and BONK (BONK) is down 9%, according to CoinGecko data.

Their dog-themed competitor, Ethereum OG Dogecoin (DOGE), the only meme coin in Coingecko’s top 10, is down nearly 4% since yesterday and is currently trading at $0.1205.

XRP (XRP) dropped to $0.608, which is 7% lower than it was at this time yesterday.

Binance’s BNB Coin (BNB) has kept pace with BTC and is currently trading at $571, down 2.4% from yesterday. Toncoin (TON), the native token of The Open Network, is down just 0.4% over the past day.

This leaves the stablecoins USDC (USDC) and Tether (USDT), both of which are stable as they maintain their 1:1 ratio with the US dollar.

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Markets

XRP Market Activity Drops During Ripple-SEC Talks: Price Steady

Published

9 months ago

1 August, 2024

Financial Block Staff

Ripple (XRP) Market Witnesses Calm During SEC-Ripple Meeting

The Securities and Exchange Commission (SEC) will hold another closed-door meeting with Ripple on Thursday, as the market hopes for a possible resolution to the legal battle between the two entities.

However, the cryptocurrency market remains relatively bearish, with the price and trading volume of XRP down in the last 24 hours.

Ripple holders take no risk

At press time, XRP is trading at $0.60. The altcoin’s price has dropped 6% over the past 24 hours. During that time, trading volume was $27 million, down 27%.

The SEC met before with the digital payment company on July 25. While the outcome of that meeting remains unknown, the Sunshine Act Notice for Thursday’s meeting includes one additional topic of discussion from the July 25 closed meeting: the instituting and resolving injunctive relief. That has market participants speculating whether a settlement is imminent.

In an exclusive interview with BeinCrypto, Ryan Lee, Lead Analyst at Bitget Research, noted that:

“This meeting will discuss possible resolution options for the Ripple Lawsuit. The founder of Ripple Labs said that a legal settlement could be announced soon. If an official settlement plan is released, it could positively impact XRP’s price movement.”

However, an assessment of XRP’s price movements on a 4-hour chart shows a spike in bearish bias as the market awaits the outcome of this crucial meeting. Its Moving Average Convergence/Divergence (MACD) indicator readings show that its MACD line (blue) has crossed below its signal line (orange).

XRP 4 Hours Analysis. Source: Trading View

Traders use this indicator to gauge price trends, momentum, and potential buying and selling opportunities in the market. When an asset’s MACD is set this way, it is a bearish signal that suggests selling activity is outweighing buying momentum.

Additionally, the altcoin relative strength index (RSI), at 46.08, is currently below its neutral 50 line and in a downtrend. This indicator measures overbought and oversold market conditions for an asset.

To know more: How to Buy XRP and Everything You Need to Know

xrp rsi XRP 4 Hours Analysis. Source: Trading View

At 43.83 at the time of writing, XRP’s RSI suggests a growing preference among the market participants for tok in distribution.

XRP Price Prediction: Derivatives Traders Exit Market

The XRP derivatives market has also seen a decline in trading activity over the past 24 hours. According to Coinglass, derivatives trading volume has plummeted 18% and open interest has dropped 10% during that period.

Open interest refers to the total number of outstanding derivative contracts, such as options or futurethat have not yet been resolved. When it drops, traders close their positions without opening new ones. This is a bearish signal that reflects a lack of confidence in any potential positive price movement.

According to Lee, the outcome of the meeting with the SEC “would have a significant impact on the price movement of the token.” If the outcome is favorable, the price of the token could rise towards $0.75 in August.

To know more: Ripple (XRP) Price Prediction 2024/2025/2030

XRP Price Prediction XRP 4 Hours Analysis. Source: Trading View

On the other hand, if no favorable resolutions are reached, the price could plummet to $0.50.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto strives to provide accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyAND Disclaimers They have been updated.

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Markets

Bitcoin’s Dominance Hits Three-Year High, But Analysts Say Altcoins Are Ready to Rebound

Published

9 months ago

1 August, 2024

Financial Block Staff

Bitcoin's Dominance Hits Three-Year High, But Analysts Say Altcoins Are Ready to Rebound

Bitcoin is now the dominant force in the cryptocurrency market, surpassing 53% of the total cryptocurrency market, a stronger share than it has been in the past three years.

Bitcoin’s market cap now stands at $1.27 trillion, second according to CoinGecko data. In contrast, the total cryptocurrency market cap is $2.43 trillion, with Ethereum occupying 15.9% of the market, worth $389 billion.

Bitcoin’s rise to dominance this year is unusual, as altcoins typically do better than Bitcoin in a bull market. While meme coins made a strong comeback during Bitcoin’s rally to all-time highs earlier this year, the so-called “wealth effect” It has not been appreciated as much by mid-range coins, such as Ethereum and Cardano.

“ETF flows fundamentally alter market dynamics,” he wrote Meltem Demirors, former chief strategy officer at CoinShares, tweeted Wednesday: “BTC gains no longer translate to alts and the longer tail of crypto.”

Bitcoin’s takeover has continued even as the market cap of Tether (USDT) continues to grow, the world’s largest stablecoin and the third-largest cryptocurrency after BTC and ETH. Stablecoins are backed by fiat currencies and are excluded from some measures of Bitcoin dominance due to fundamentally different value models.

The surge continued to pace even after the launch of Ethereum spot ETFs last week, which ironically culminated in a news sell-off event, and net outflows from new investment products since they were launched. This went against the predictions of K33 Search so far, which predicted that ETFs would catalyze ETH’s growth over the next five months.

Despite the poorer performance of the alts, there is reason to believe that they are ready to bounce back very soon.

CryptoQuant CEO Ki Young Ju said Tuesday that whales are “preparing for the next altcoin rally,” as limit buy orders for assets other than BTC and ETH are on the rise.

The executive shared a chart showing how the “cumulative difference between purchase volume and sales volume” has increased in recent months.

“The indicator measures the difference between buy and sell orders over a year,” CryptoQuant told Decrypt. A buy/sell order is a pre-set request to buy or sell a cryptocurrency if it hits a certain price level, which creates resistance and support levels.

“If the trend is up, it means that more people are placing buy orders, showing strong interest in buying,” CryptoQuant said.

By Ryan-Ozawa.

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Markets

XRP and SOL Retrace as BTC Price Drops to 2-Week Lows (Market Watch)

Published

9 months ago

1 August, 2024

Financial Block Staff

Bitcoin Returns Toward $60K, XRP Defy Negative Sentiment (Market Watch)

After Monday’s crash, in which BTC fell by several thousand dollars, the scenario has repeated itself once again in the last 12 hours, with the asset falling to a 2-week low of $63,300.

Alt coins followed suit, with most of the market in the red today. SOL and XRP lead the way from the higher cap alts.

BTC Drops To $63.3K

After a violent Thursday last week, when BTC crashed to $63,400, the asset went on the offensive over the weekend and surged above $69,000 on Saturday, as the community prepared for Donald Trump’s appearance at the 2024 Bitcoin Conference in Nashville.

His speech was followed by more volatility before the cryptocurrency settled around $67,500 on Sunday. Monday started off rather optimistically for the bulls as bitcoin hit a 7-week high of $70,000.

However, he failed to maintain his run and conquer that level decisively. On the contrary, he was rejected bad and dropped to $66,400 by the end of Monday. Tuesday and Wednesday were less eventful as BTC remained still around $66,500.

The last 12 hours or so have brought another crash. Bears have pushed the leading digital asset down hard, which has fallen to a 2-week low of $63,300 (on Bitstamp), leaving over $200 million in liquidations.

Despite the current rebound to $64,500, BTC’s market cap has fallen to $1.270 trillion, but its dominance over alts is recovering and has reached 52.6%.

Bitcoin/Price/Chart 01.08.2024. Source: TradingView

The Alts are back in red

Ripple’s native token has been at the forefront of the market challenge in recent days as pumped up to a multi-month high of over $0.66. However, its run was also interrupted and XPR fell by more than 6% in the last day to $0.6.

The other big loser among the larger-cap alternatives is SOL, which has lost 8% of its value and is now struggling to get below $170.

The rest of this altcoin cohort is also in the red, with ETH, DOGE, BNB, AVAX, ADA, SHIB, and LINK all seeing drops between 2 and 5%.

The total cryptocurrency market cap lost another $70 billion overnight, falling below $2.4 trillion today on CG.

Cryptocurrency Market Overview. Source: QuantifyCrypto SPECIAL OFFER (sponsored)
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Cryptocurrency Charts by TradingView.

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