20 March

“The Fed had been letting banks exclude cash and government bonds on their balance sheet when calculating their Supplementary Leverage Ratios (SLR), a gauge of capital adequacy. In April 2020, the exemption allowed banks to support the Treasury market, and expand the size of their balance sheets. That rule will not be extended and will expire at the end of March.

The Fed’s announcement is causing a dollar pop and a bit of a dump in risk assets as it reduces bank liquidity.”

“One of the metaverse’s crypto casinos is angling to put those non-player characters (NPCs) out of a job – by employing the players themselves. At press time it has on-boarded 20 part-time greeters and a full-time manager to run the show.

Real-life hosts now work the floor at Decentral Games’ Tominoya Casino, helping newcomers to this crypto house of chance try their hand at digital roulette, blackjack and slots. For four hours each day, the greeters staff shifts in the metaverse. Then, at the end of the month, they get paid upward of $500 in DAI or the firm’s DG token.

The hiring push is an early example of real-life employment opportunities in the decentralized metaverse, where players who navigate user-owned landscapes swap cryptos like MANA for pieces of digital art, clothing and even land parcels – all recorded on the blockchain as non-fungible tokens (NFTs).

Decentral Games’ NFT casino has generated “a little over a million dollars in MANA and DAI” for the DAO over the last three months. He and the other DAO members are betting that real-life floor hosts can generate even more by boosting table game engagement and improving player retention.”

See Also: Balancer (BAL) hits an all-time high as DeFi projects trial new solutions

“First Trust Advisors and SkyBridge Capital, the hedge fund run by former White House Communications Director and recent bitcoin convert Anthony Scaramucci, have become the latest firms to seek to offer a bitcoin exchange-traded fund (ETF).

The two companies are just the latest to file for an ETF, following in the footsteps of WisdomTree, Valkyrie, NYDIG and VanEck. The flood of applications comes as the SEC is widely expected to approve the first bitcoin ETF this year.”

See Also: Brazil Becomes Second Country in the Americas to Approve a Bitcoin ETF
See Also: GBTC at a Discount Could Become a Systemic Risk, ByteTree Says

“Convertible central bank digital currencies (CBDCs) offer countries a tantalizing chance to improve vital cross-border payment rails, researchers from the Bank for International Settlements (BIS) wrote in a March note. The authors said central banks have an opportunity to collaborate on these issues before launching otherwise walled-off CBDC systems.

Interoperable CBDCs “are preferable” to the Facebook-led Diem project, the authors said, arguing convertible national cryptos “strengthen monetary sovereignty in the digital age” while private cryptos would simply shift the cross-border risks elsewhere.

Central banks would have to coordinate on policy, technical standards, data requirements and regulation to establish a viable, linkable system. Authors pointed out that’s easier said than done; establishing the euro payments system took years.”

Over the past year, crypto mining stocks have outperformed bitcoin (BTC), and the trend has accelerated since the cryptocurrency climbed past $20,000 a few months ago.

Mining company equities may serve as a high-beta play on bitcoin … [and when the cryptocurrency] enters a bear cycle, we would expect mining equities to have greater downside volatility than bitcoin.

The largest publicly listed mining companies include Riot Blockchain (NASDAQ: RIOT), Hive Blockchain (OTCMKTS: HVBTF), and Marathon Patent Group (NASDAQ: MARA).”

See Also: Robinhood Growing Its Crypto Team ‘Hugely’ This Year Says CEO

“A pair of wildly speculative options trades this week on the over-the-counter institutional cryptocurrency trading network Paradigm has analysts’ tongues wagging.

According to the tape, on March 14 two block trades crossed for a total of 1,644 call options contracts on ether, with a strike price of $25,000 and an expiration date of Dec. 31. In plain English, that means the buyer of the options stands to reap a massive profit if ether’s price jumps by a four-digit percentage by the end of this year.

The trades, which came at a total estimated cost of about $82,200, have such farfetched odds that Skew, one of the top suppliers of data on the crypto options market, doesn’t even calculate them for a strike price that high.

The buyer could be betting that the probability of ether rising above $25,000 by the end of December will go much higher than its current level, rather than betting on ETH actually crossing above that level.”