CF Benchmarks

As we come to the close of a market defining year for the #crypto asset class, our research analysts, Gabe Selby, CFA and Mark Pilipczuk are thrilled to share, Market Outlook 2025, Inflection Points: Macro Pressures, Regulatory Clarity, and Mass Adoption. Download for our latest insights into the dynamic intersection of macroeconomics, regulation, and technology in the #digitalasset space. Here's what you’ll find: ❇️ Bitcoin & Ether ETFs: A tipping point! With record-breaking growth, these #ETFs are reshaping portfolio diversification and signaling mainstream acceptance of digital assets ❇️ Macroeconomic Shifts: Rate cuts and easing inflation are setting the stage for improved investor sentiment and asset valuations       ❇️ Regulatory Evolution: Last month’s U.S. elections could bring clarity, creating both opportunities and challenges as the industry prepares for comprehensive frameworks ❇️ Ethereum's Momentum: Layer 2 innovations are revolutionizing #DeFi and #stablecoins, solidifying #Ethereum's leadership in the space The past year has been one of the most memorable in recent history for crypto, highlighted by resilience and growth, with over $37 billion in net fund flows into #Bitcoin ETFs alone —outpacing early gold ETF growth. As we look ahead into next year, the global economy faces stark contrasts across regions, but the potential for "animal spirits" in the U.S. economy could ignite dynamism. Investors should stay informed and seek opportunities in disruptive technology as growth balances optimism with prudence. Dive into the full report that’s packed full of insights and analysis into the macroeconomic backdrop for digital assets, secular themes, forecasts and more. https://lnkd.in/eYikSRXu #cryptocurrency #ether #blockchain

The #cryptocurrency market is a fast-evolving and fascinating space. In our latest research paper, A Factor Model for Digital Assets, we explore the key drivers of #digitalasset returns: Our analysis highlights seven primary factors: ✅ Market: Measured as a Bitcoin-Ethereum weighted index ✅ Size: Derived from market capitalization ✅ Value: Captured as the combined ratios of fees to Total Value Locked (TVL) and Daily Active Users (DAUs) to market capitalization ✅ Momentum: Based on short-term historical returns ✅ Growth: Focuses on fees and DAU growth over time ✅ Downside Beta: Captures sensitivity to market downturns ✅ Liquidity: Quantified based on token turnover However, the inherent volatility of the market means these factors can shift over time and vary across assets. Looking ahead, we see exciting opportunities for further exploration. More advanced macroeconomic and crypto-specific regime models, could deepen our understanding of how market dynamics evolve during periods of stability and change. Check out our paper to learn more, and share your thoughts in the comments: https://lnkd.in/ddYYk8Ju Cristian Isac Thomas Erdösi #blockchain #bitcoin #ether

Markets saw large-cap assets pausing after recent gains, with #Chainlink up +16.93% and #Bitcoin closing its first week above $100K at $102,840.89. #DeFi stood out with impressive gains: ✳️ #AAVE, up 35.38% ✳️ #ONDO, up 15.36% Meanwhile, Culture tokens and Meme Coins experienced declines, signaling shifting investor sentiment. The CF DeFi Composite Index rose +9.90%, now up +79.00% YTD, as volatility and ETH staking rewards continued to ease. For a comprehensive breakdown of these market movements and what they mean for the broader #Crypto landscape, explore our latest Weekly Index Highlights: https://lnkd.in/eD--yUke #digitalassets #Blockchain

After one of the most consequential crypto quarters for years, join CF Benchmarks' Head of Research Gabe Selby, CFA, and Research Analyst Mark Pilipczuk, on the CFB Talks Digital Assets podcast - as they talk through the major global market, on-chain, macro and blockchain highlights from their latest quarterly market report! ◼︎ Start with an informed recap, including #Bitcoin's $100k milestone, propelled by a heady mix of rate cuts and that regulatory re-rating after Trump's election win - plus, record #ETF inflows ◼︎ Get a 3D look inside the Fed's policy pivot: hear why persistent inflation and an ambitious incoming fiscal agenda could bring fewer cuts, or even a pause, sooner rather than later ◼︎ Dig into standout gainers like Ripple's #XRP and #Cardano's ADA, which surged 378.86% and 266.08% respectively. And learn why our Digital Culture Index rocketed 103.62%, while our Blockchain Infrastructure Index surged 'only' 82.34% ◼︎ Plus, after the first meaningful BTC basis expansion for years, where sophisticated traders will position next For investors of all kinds, there's no better way to make sense of an exciting yet complex quarter - so grab a coffee and dive into the show on your favourite platform now! * Spotify - https://lnkd.in/eD6SevS3 * Apple Podcasts - https://lnkd.in/e-t6472Y * Amazon Music - https://lnkd.in/eXnVKhEe * YouTube (audio) - https://lnkd.in/epsCBspd #investing #digitalassets #investmentmanagement #crypto

A combination of monetary policy shifts and prospects of a favorable political climate has driven an extraordinary rally in #digitalassets. #Bitcoin has crossed the much anticipated $100,000 threshold, propelled by the Federal Reserve's 25-basis-point rate cut in November and growing optimism around pro-crypto reforms. Key highlights from our Quarterly Attribution Reports (Sept 3 - Dec 2, 2024) from Gabe Selby, CFA and Mark Pilipczuk include: ✳️ CF Digital Culture Index: Up 103.62%, with the largest contribution from Sandbox's SAND, which soared 161.21% ✳️ CF Blockchain Infrastructure Index: Gained 82.34%, reflecting a conclusive reversal from the previous rebalance period as sector-specific strategies outperformed the broader market ✳️ CF Free-Float Broad Cap Index: Achieved a 77.88% gain but underperformed its diversified weighted variant by about 23% ✳️ CF Ultra Cap 5 Index: Rose 72.69%, emphasizing the role of thematic exposure and market breadth For a deeper dive into these trends, download our Quarterly Attribution Reports, Policy Pivots: Monetary and Political Shifts Fuel Year-End Rally: https://lnkd.in/eCAiFQSk #crypto #cryptocurrency #blockchain

For decades, traditional financial markets have relied on robust frameworks to help investors manage their portfolios with precision. In the #crypto space, such concepts have not been available — until now. We’re proud to introduce A Factor Model for Digital Assets, our latest research paper that explores advanced quantitative approaches to crypto investing. Here’s what you’ll find: ✅ A review of mathematical frameworks for assessing #cryptocurrency risk factors ✅ Innovative tools bridging the gap between traditional finance and #digitalasset markets, empowering institutional investors to identify risks, optimize portfolios, and enhance decision-making ✅ Custom factor models: Market, Size, Value, Momentum, Growth, Downside Beta and Liquidity - designed to highlight the key drivers of digital asset performance, inspired by traditional finance methodologies Our pioneering research authored by Cristian Isac and Thomas Erdösi provides the structure, insight, and confidence needed to navigate the evolving crypto landscape with confidence. Download our paper to find out more: https://lnkd.in/dEvmZbu4

#Bitcoin and #Ethereum have firmly established digital assets in global financial markets. But the crypto market is far more diverse—it represents an entire #blockchain-driven economy presenting unique opportunities, risks and return dynamics. As we look to 2025, we're delighted to introduce our latest research paper: A Factor Model for Digital Assets. This pioneering work combines mathematical precision with financial expertise, offering fresh insights into the evolving landscape of #crypto investing. Discover how we’re equipping investors with an institutional grade factor model for portfolio and risk management to navigate this rapidly evolving market. Read more in our blog post: https://lnkd.in/ddYYk8Ju #digitalassets Cristian Isac Thomas Erdösi

Recent shifts in monetary policy and prospects of a supportive political climate have propelled a remarkable year-end rally in #digitalassets, with #Bitcoin surpassing the long-awaited $100,000 milestone. This momentum was further fueled by the Federal Reserve's 25-basis-point rate cut in November and growing optimism around pro-crypto regulatory reforms, and record-breaking institutional activity in #crypto #futures markets. Our latest Quarterly Attribution Reports for the rebalance period, September 3, 2024, to December 2, 2024, by analysts Gabe Selby, CFA, and Mark Pilipczuk, highlight how our multi-asset portfolio indices performed: ✅ CF Digital Culture Index: +103.62%, led by SAND's incredible +161.21% gain ✅ CF Blockchain Infrastructure Index: +82.34%, reflecting a significant reversal as sector-specific strategies outperformed the broader market ✅ CF Free-Float Broad Cap Index: +77.88%, though it underperformed its diversified variant by circa 23% ✅ CF Ultra Cap 5 Index: +72.69%, showcasing the impact of thematic exposure Curious to learn more? Download the full report, Policy Pivots: Monetary and Political Shifts Fuel Year-End Rally https://lnkd.in/dXQjwaT5 #cryptocurrency #blockchain

From #Bitcoin’s $100K price milestone to #Ethereum’s strong comeback and #DeFi’s standout gains, our latest Weekly Index Highlights brings you the key trends shaping the #crypto market. Stay ahead of the curve with a concise, data-packed summary covering: ❇️ Bitcoin’s Momentum: Riding the post-$100K wave ❇️ Ethereum’s Revival: A powerful resurgence ❇️ DeFi Breakthroughs: Significant gains Curious to dive deeper into the numbers and trends? Access the full report here: https://lnkd.in/eFhweEsh #digitalassets #cryptocurrency #blockchain

Bitcoin’s climb above $100k has set off a wave of activity in #derivatives markets, with traders seeking further upside exposure, but also hedging their downside. Gabe Selby, CFA, Head of Research at CF Benchmarks, notes: “The majority of open interest in the IBIT options market is emphatically towards out-of-the-money calls. Furthermore, the implied volatility for 10 delta calls on IBIT is much higher for contracts about to expire, compared to contracts with longer expirations.” This reflects a market filled with optimism but not without caution. Key highlights include: ✅ Funding rates near all-time highs, signaling high leverage ✅ Demand for puts at $95K and $100K shows hedging against pullbacks ✅ Short-term implied volatility remains elevated, pointing to intense market speculation With #bitcoin #ETF options less than a month old, it'll be interesting to see how the dynamic between these contracts and the broader crypto marketplace plays out. Read the article in full here on Bloomberg : https://lnkd.in/eNj58z7E #digitalassets #crypto #cryptocurrency