Crypto Assets market continues to strengthen, Bitcoin hits a 15-month high

The crypto assets market has performed strongly recently, with Bitcoin prices breaking through $12,000, reaching a 15-month high, and showing a continuous upward trend. Ethereum is also not falling behind, rapidly climbing in the past month, reaching a peak of $331 around noon on June 26. Generally, the top 100 crypto assets by market capitalization are showing an upward trend.

This Monday, the U.S. Commodity Futures Trading Commission ( CFTC ) approved the first futures product with physical delivery of Bitcoin, injecting new momentum into the already active market.

Recently, whether it is Facebook releasing the Libra white paper or JPMorgan starting to trial JPM Coin, it shows that more large institutions are entering or preparing to enter the crypto assets field. With the addition of new participants, crypto finance will become an indispensable tool for both new and old players.

Crypto Assets Wealth Management

Crypto wealth management is a relatively new subfield in crypto finance, with most products starting at the end of the 2017 bull market. According to statistics, as of March 2019, there are hundreds of wealth management products active in the crypto world, and the number of new products has significantly increased since the fourth quarter of 2018.

The main types of financial products include:

• Debt Financing: Earn interest rate spread through direct lending by users on the platform.
• Dividend Wealth Management: Earn returns through platform leveraged trading, quantitative funds, and other dividends.
• Node Finance: including node delegation and PoS existence

Head Product

Exchange Type:

• OKEx and others provide coin storage interest services, with an annual yield of 0.026%-2.7%.
• Coinbase, Huobi and others offer Staking services with an annual yield of about 6.6%.

Wealth Management Platform Category:

• PayPal Finance and others offer interest-bearing financial products for digital currency, with an annual interest rate of about 12%.

Wallet Types:

• Cobo offers fixed-term, demand, and PoS financial products with annual returns of 1.2%-40%.
• Kcash offers both current and fixed-term financial management with an annual interest rate of 4%-8.8%.

In contrast, the crypto lending sector has seen some more mature companies, such as Maker DAO and Genesis Capital, attracting more attention.

Crypto Assets Lending

In the current crypto financial products, lending is quite notable in terms of both enterprise scale and product richness. Crypto lending products are becoming increasingly complex, potentially integrating multiple functions. Centralized and decentralized lending products are not distinctly separate, with a blend existing between the two.

Head Product

Centralized Lending:

Genesis Capital is the largest crypto lending institution. In the first quarter, it added $425 million in loans, bringing the total loan amount to $1.53 billion. Genesis mainly borrows tokens from large holders and lends them out at a higher interest rate, with the former's rate at 4%-5% and the latter's at 6.5%-7.5%.

BlockFi's business is quite diversified: on one hand, it provides USD loans secured by cryptocurrency with an annual interest rate of 4.5%; on the other hand, it offers interest-earning services for cryptocurrency deposits, with a maximum annual rate of 6.2%. BlockFi has completed 4 rounds of financing, raising $60.4 million.

Decentralized Lending:

Maker DAO, Compound, and Dharma are the top three decentralized lending platforms. As of June 4, the total amount of collateralized crypto assets in Maker DAO reached $404 million, while both Compound and Dharma exceeded $20 million. The collateralization rates for the three are approximately 480%, 400%, and 210%, respectively.

EOSDT in the EOS ecosystem is also worth paying attention to, with a locked amount of approximately 19 million USD, ranking fourth among similar products.

Crypto Assets Derivatives

Crypto derivatives provide more possibilities for the market. It is estimated that the crypto derivatives market size could reach trillions of dollars. The main crypto derivatives include futures, forward contracts, options, perpetual contracts, and so on.

derivatives trading service provider

Crypto native exchanges such as BitMEX, OKEX, etc. are actively laying out the derivatives market. Traditional exchanges like CME, Bakkt, LedgerX, etc. are also joining the competition. LedgerX has recently been approved to offer physically settled Bitcoin futures, and Bakkt plans to test similar products in July, which may drive up Bitcoin demand.

Head Derivatives Product

dYdX is a decentralized financial derivatives protocol that supports margin trading with up to 4x leverage.

In the field of prediction markets, Augur is an early project established in 2014. Gnosis and Bodhi were established in 2017. Guesser and Veil are emerging projects that have received support from top-tier capital.