Fintech Focus For March 24, 2021


Robinhood, at the heart of retail trading frenzy, files for own IPO

(Reuters) -Robinhood Markets Inc, the online brokerage at the center of the historic retail trading frenzy that gripped Wall Street this year, has confidentially submitted plans to regulators for a U.S. initial public offering, the company disclosed on Tuesday. The move to push ahead with a stock market flotation comes in the middle of a historic boom in U.S. capital markets, fueled largely by dealmaking through so-called special purpose acquisition companies. Companies have raised well over $100 billion through initial public offerings (IPOs) in the first three months of the year and are poised to overtake 2020’s record haul of $167 billion, data from Refinitiv and Dealogic showed.


Robinhood files confidentially to go public

Today Bloomberg reported, and Axios confirmed that Robinhood has filed privately to go public. The well-financed Robinhood is an American fintech company that provides zero-cost trading services to consumers. Private IPO filings have become common in recent quarters, making Robinhood’s decision to file behind closed doors before showing its numbers to the public unsurprising.

Insider Monkey

10 Biggest Industries in the World in 2021

In this article, we are going to list the 10 Biggest Industries in the World in 2021. Click to skip our analysis of the global industry trends, jump to the 5 Biggest Industries in the World in 2021. The biggest industries in the world run the economy and create billions of jobs worldwide. In the past […]


Biggest Bitcoin Fund’s Woes Worsen as Discount Hits Record

(Bloomberg) — Bitcoin’s worst selloff since December is dealing a particularly harsh blow to the biggest fund tracking the cryptocurrency.The $29.4 billion Grayscale Bitcoin Trust (ticker GBTC) has dropped about 20% so far this week, nearly double the decline in the world’s largest cryptocurrency. GBTC closed over 14% below the value of its underlying holdings on Wednesday as a result — a record discount, according to data compiled by Bloomberg. The dislocation has deepened despite Grayscale Investment LLC parent Digital Currency Group Inc.’s plans to purchase up to $250 million worth of GBTC shares.The GBTC free-fall highlights the extent to which the latest leg of the retail-driven crypto craze is cooling. The trust has persistently traded at a premium to its net asset value since launching, with investors willing to pay up for a piece of Bitcoin as it rockets higher. However, given that GBTC doesn’t allow redemptions — meaning that trust shares can only be created, not destroyed like in conventional funds — the number of shares outstanding has ballooned to a record 692 million. With Bitcoin’s price now stalling, that’s created a supply and demand imbalance as accredited investors in the trust seek to offload their shares in the secondary market“GBTC has a fixed supply and acts like a leveraged play on Bitcoin,” Bloomberg Intelligence analyst James Seyffart said. “As price goes down, sentiment goes down, GBTC is going to fall further than Bitcoin. Same thing happens on the way up.”Bitcoin fell for a fifth day on Thursday to a two-week low, its longest losing streak since December. Demand for crypto has sank amid emerging signs that retail traders are retreating from markets, with everything from call options volume to GameStop Inc. shares to the mega-popular Ark Innovation exchange-traded (ticker ARKK) fund faltering.In addition to individual investors stepping back, demand from institutions may be cooling with the debut of several Bitcoin ETFs in Canada. While U.S. regulators have yet to approve the structure, high-profile issuers such as Fidelity Investments have filed plans.“The addition of ETFs in Canada likely pulled away some capital from GBTC,” Seyffart said. “Mainly institutional money, because most retail can’t easily buy a Canadian ETF.”(Updates with Digital Currency Goup’s plans to buy GBTC shares in the second paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.


China Stocks’ 15% Rout Shows What Happens When Stimulus Ends

(Bloomberg) — China’s stock market is showing the world what happens when central banks and governments start exiting pandemic-era stimulus — and it’s not pretty.The CSI 300 Index has lost 15% since climbing to a 13-year high last month as concern about tighter monetary policy replaced optimism about the economic recovery. Like elsewhere, the rally had been led by investors chasing a small number of stocks, many of whom piled in at the top as a frenzy grew. Now the gauge is trailing MSCI Inc.’s global benchmark by the most since 2016 this month and the most popular mutual funds are getting crushed.Central banks around the world are dealing with the aftermath of last year’s multiple interest-rate cuts and trillions of dollars in stimulus. Some, like the Federal Reserve and the European Central Bank, have said they’ll stick to their loose policies for now. Others are being forced to act by inflation risks. Brazil last week became the first Group of 20 nation to lift borrowing costs, with Turkey and Russia following suit. Norway is also turning more hawkish.Investors in February began pricing in higher U.S. growth and consumer prices, bringing forward their opinion of how soon the Fed would be forced to raise interest rates. While that’s meant technical corrections in overpriced markets like the Nasdaq, none of the world’s stock benchmarks are falling faster than China’s.“China’s stock-market rout may reveal the challenge for stimulus withdrawal globally given that China is ‘first in, first out’ in the pandemic,” said Peiqian Liu, a China economist at Natwest Markets in Singapore.China has reasons to taper stimulus faster than other major economies. A tighter grip on the pandemic, a fixation with deleveraging, and a lack of investment choices for its citizens are some of them. But there’s little doubt the nation’s stock market has led the way since Covid-19 was first detected in the Chinese city of Wuhan.As the virus began to take root in the first two months of 2020, the CSI 300 slumped 12%, while global stocks continued to climb to new highs. When the MSCI All-Country World Index began sinking a few weeks later amid evidence the virus was spreading globally, China’s stock market was already rebounding on optimism more stimulus was on the way. By July, the rally had made local equities among the world’s hottest. China’s index peaked on Feb. 10, having surged 65% from last year’s low, before tanking.Analysts at Credit Suisse Group AG cut their recommendation of Chinese stocks to the equivalent of sell this week, saying the country’s markets are likely to “suffer a bigger payback” than others from the gains seen during the pandemic. That’s the brokerage’s second downgrade of Chinese equities in five weeks.“We took our profit on China A-shares in early February, given the prospects of tighter domestic macro policies,” Jean-Louis Nakamura, Asia Pacific chief investment officer for Lombard Odier Darier Hentsch, wrote in a client newsletter this week.The CSI 300 fell as much as 0.9% on Thursday before erasing losses. It last traded up 0.2%.The Communist Party has good reason to be concerned about excessive stimulus. When the global financial crisis hit in 2008, China turned to credit to bolster its economy. The resulting pile of debt to this day threatens the stability of the country’s financial system. Inflows into onshore stocks and bonds last year are also fueling concern among officials about distortions to asset prices, especially if the money starts to flow back out.Lessons from the past mean there’s a greater focus in China on the risks caused by too much liquidity, both domestically and abroad. The government has revived a campaign to cut leverage that was shelved amid the trade war with the U.S., as well as efforts to limit the impact of “hot money.”“China’s policy exit remains one of the most important uncertainties to its own recovery and financial markets ahead,” Li-Gang Liu, managing director and chief China economist at Citigroup Inc., wrote in a report this month.(Updates with today’s trading in 10th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.


‘Beached whale’ ship could block Suez Canal for weeks

A container ship blocking the Suez Canal like a “beached whale” may take weeks to free, the salvage company said, as officials stopped all ships entering the channel on Thursday in a new setback for global trade. The 400 m (430 yard) Ever Given, almost as long as the Empire State Building is high, is blocking transit in both directions through one of the world’s busiest shipping channels for oil and grain and other trade linking Asia and Europe. The Suez Canal Authority (SCA) said eight tugs were working to move the vessel, which got stuck diagonally across the single-lane southern stretch of the canal on Tuesday morning amid high winds and a dust storm.


Exclusive: Goldman sends Indian employees back home as local COVID-19 cases rise

Goldman Sachs told all but critical staff at its operation in Indian IT capital Bengaluru to return to working from home on Wednesday, reversing moves to get staff back to one of its biggest global offices as coronavirus infections in the city grew. India earlier reported a new variant of the coronavirus as new infections and deaths nationwide hit the highest this year, prompting the imposition of new restrictions in some states. Bengaluru reported 1,280 new infections on Tuesday, according to city data, and several sources at Goldman told Reuters that teams had been told to return to working from home ahead of an all-office townhall call at 2 p.m. local time on Thursday.


If You Invested $1,000 In Bitcoin One Year Ago, Here’s How Much You’d Have Now

Investors who have owned stocks in the last year have generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return over the last 12 months is 74.3%. But there is no question some investments performed better than others along the way. Bitcoin’s Big Run: As strong as the stock market has been since it bottomed on March 23, 2020, Bitcoin (CRYPTO:BTC) has been much stronger. After a wild ride that took Bitcoin prices near $20,000 in late 2017, the previous Bitcoin bubble burst in 2018 and the cryptocurrency finished the year down 72.6%. Bitcoin came back to life in 2019, however, finishing the year up 87.2% and priced at around $7,200. Several factors led to a surge in Bitcoin buying in 2020. First, investors concerned about the potential long-term damage that trillions of dollars in federal stimulus could do to the value of the dollar have flooded into Bitcoin as a potential safe-haven play. Second, younger Americans receiving three rounds of direct stimulus payments have poured a significant chunk of that cash into investments, including Bitcoin. Mizuho recently estimated the most recent round of $1,400 stimulus payments alone could contribute to roughly $24 billion in Bitcoin buying. After starting 2020 at around $7,200, Bitcoin prices had reached $10,000 by mid-February. See also: How to Buy Bitcoin (BTC) By the beginning of March, the volatile cryptocurrency was back down to around $8,600 after news of the coronavirus spreading in China prompted concerns about a U.S. pandemic. When the stock market bottomed on March 23, Bitcoin investors were feeling the pain as well. Investors who had purchased Bitcoin as a COVID-19 flight-to-safety trade were down big with Bitcoin priced at around $5,800 at the time. However, once the government stimulus payments started flowing, Bitcoin regained its swagger. By May 31, Bitcoin prices were back above $10,000, and they haven’t traded below $10,000 since September 2020. Related Link: If You Invested ,000 In Ford Stock One Year Ago, Here’s How Much You’d Have Now Bitcoin In 2021, Beyond: Bitcoin made it to new all-time highs above $20,000 in December 2020, almost exactly three years after its last new high. The cryptocurrency eventually made it as high as $61,643 in recent weeks, more than tripling its 2017 high. In recent days, the cryptocurrency has pulled back from all-time highs, settling back down to around $55,500 at publication time. Still, Bitcoin investors who bought one year ago and held on have generated a massive return on their investment. In fact, $1,000 in Bitcoin bought on March 23, 2020, would be worth about $8,816 today. Given the exponential rise in Bitcoin prices in the past year coupled with the loss of stimulus payment support in the coming months, some investors are understandably growing concerned about a potential repeat of the 2018 sell-off. Bitcoin has experienced three boom-to-bust drawdowns of more than 80% in the past decade, and a similar sell-off in 2021 could send its price tumbling back down to around the $12,000 level. See more from BenzingaClick here for options trades from Benzinga’Stimmy’ Checks And The Stock Market: Will The Retail Trading Frenzy Continue?Cash App Is Giving Away M In Bitcoin: What You Need To Know© 2021 Benzinga does not provide investment advice. All rights reserved.

Investor’s Business Daily Video

Option Trade: Adding Bullish Exposure To Your Portfolio With Microsoft Stock

For this option trade, we’re going to take a look at a bull call spread in Microsoft. With the stock showing an implied volatility reading that’s the lowest it’s been in twelve months, a bullish trade in Microsoft makes for a good way to add long exposure to your portfolio.


VW’s Skoda aims for 2021 rebound, plans electric car investments

Czech carmaker Skoda Auto, part of the Volkswagen Group, said on Wednesday it would invest around 2.5 billion euros over the next five years on future technologies, with more than half going to electric vehicle investment. The Czech Republic’s largest exporter is hoping for a rebound in 2021 from a global car sales drop but faces uncertainty over the coronavirus pandemic and a semiconductor shortage rattling the industry. “This year is likely to be another big challenge,” finance director Klaus-Dieter Schuermann said.


India’s Paytm Hasn’t Decided IPO Timing, Market Yet: CFO

Mar.24 — Madhur Deora, president and group chief financial officer of Paytm, which is backed by both Ant Group Co. and SoftBank Group Corp.’s Vision Fund, discusses the prospects for New Delhi-based digital payment provider and the market. He speaks on the sidelines of the Credit Suisse Asian Investment Conference with Rishaad Salamat and Haslinda Amin on during the “India Focus” segment on “Bloomberg Markets: Asia.”


China proposes global rules for central bank digital currencies

China proposed a set of global rules for central bank digital currencies on Thursday, from how they can be used around the world to highly sensitive issues such as monitoring and information sharing. Global central banks are looking at developing digital currencies to modernise their financial systems, ward off the threat from cryptocurrencies like bitcoin and speed up domestic and international payments. China is one of the most advanced in its effort.


Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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