Ether jumps on exchange-traded funds speculation: ETH approached its biggest two-day gain in nearly two years as traders await US regulators' decision on spot exchange-traded funds (ETFs) for ETH, Reuters reported.

The numbers: The crypto market’s second-largest player was up 7.3% yesterday to sit at USD 3.7k as of midnight. BTC also neared its all-time high on Tuesday, closing at USD 79.7k. BTC has surged 65% in 2024, closely trailed by ETH, which has gained 63%.

Driving the rally: Investors are keeping a close eye on the US Securities and Exchange Commission's (SEC) decision regarding ETH ETFs, expected this week, the Financial Times writes. “The political dynamics around crypto in Washington were shifting, after 18 months of regulatory crackdowns and Democrat-led blocks to regulation,” Bernstein analyst Gautaum Chhugani.

Remember: Investors poured some USD 900 mn into BTC ETFs in the three days after the SEC greenlit the funds.

Also worth knowing about this morning:

  • Blackstone will grant equity to rank-and-file employees of the companies in which it invests in the United States going forward. The private equity giant’s plan is “part of a broader movement in the buyout industry to expand ownership beyond management ranks. (Wall Street Journal)
  • The Tadawul All Share Index is nearly 6% behind the MSCI Emerging Markets gauge this year — Saudi stocks are lagging behind other EM counterparts for the first time since the pandemic. (Bloomberg)

MARKETS THIS MORNING-

Asian markets are largely unchanged in early trading this morning. Alone among major benchmarks, Japan’s Nikkei is down (-0.75%) while the Hang Seng, Kospi, and Shanghai Composite are all holding their ground. European and US futures were also pretty much flat overnight after US shares notched fresh highs again yesterday.

One weird thing: With all of these fresh highs being hit, there are virtually no headlines out there with random pundits called upon to declare that a correction is in the cards. Heck, even the so-called “fear index” — the Vix, or volatility index — is trading at a five-year low.

EGX30

27,225

0.0% (YTD: +9.4%)

USD (CBE)

Buy 46.58

Sell 46.72

USD (CIB)

Buy 46.6

Sell 46.7

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

12,122

0.0% (YTD: +1.3%)

ADX

9,009

-0.3% (YTD: -5.9%)

DFM

4,075

+0.2% (YTD: +0.4%)

S&P 500

5,321

+0.3% (YTD: +11.6%)

FTSE 100

8,416

-0.1% (YTD: +8.8%)

Euro Stoxx 50

5,047

-0.5% (YTD: +11.6%)

Brent crude

USD 82.88

-1.0%

Natural gas (Nymex)

USD 2.66

-0.3%

Gold

USD 2,448

0.0%

BTC

USD 69,658

+0.3% (YTD: +64.8%)

THE CLOSING BELL-

The EGX30 was essentially flat at yesterday’s close on turnover of EGP 5.7 bn (16.8% above the 90-day average). Regional investors were net sellers. The index is up 9.4% YTD.

In the green: Ezz Steel (+7.2%), Mopco (+6.1%), and AMOC (+5.5%).

In the red: Qalaa Holdings (-7.7%), GB Corp (-4.8%), and Sidi Kerir Petrochemicals (-3.0%).

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