BNY Mellon Moves Toward Offering Crypto Custody Services

Bank of New York Mellon, one of the oldest banks in the U.S., moved last week toward potentially offering custody services for crypto assets like bitcoin and ethereum to exchange-traded fund (ETF) clients, Bloomberg reported.

The SEC also granted BNY Mellon an exemption from Accounting Standard Bulletin 121 (SAB 121), which requires crypto asset custodians to include crypto assets under their custody on their balance sheet. BNY Mellon submitted an alternative plan to the SEC to provide custody of bitcoin and ethereum in a way that protects client funds in the event of bank insolvency, which allowed for the SAB 121 exemption.

Since its introduction in April 2022, SAB 121 has sparked controversy in the US crypto industry and has been heavily criticized for making it impractical for financial institutions to offer custody of crypto assets.
With the exemption granted to BNY Mellon, this could pave the way for other major US banks to follow suit and launch their own crypto asset custody services.

#bitcoin #ETF #SEC $BTC $ETH $BNB

Javier Molina "We are somewhat optimistic about the evolution in Spain, with an economy that continues to show the ability to adapt and be resilient"

Although sectors such as tourism, traditionally key and very seasonal, have registered declines, the impact has been balanced by growth in other areas, such as education. This shows that the Spanish economy is finding balance and continuity in its employment structure," explains Javier Molina, senior market analyst for eToro. "We are somewhat optimistic about the evolution of employment in Spain, with an economy that, despite the challenges, continues to show the ability to adapt and be resilient," he concludes.

In September, unemployment in Spain rose slightly, with 3,164 more people, which represents the lowest monthly increase since 2007, excluding the months affected by the pandemic. Despite this slight increase, the employment outlook continues to show signs of stability and adaptation. With unemployment benefit coverage exceeding 75% for the first time since 2010 and 43.81% of contracts signed being permanent, we see how the labour market continues to offer positive signs.

Although sectors such as tourism, traditionally key and very seasonal, have registered declines, the impact has been balanced by growth in other areas, such as education. This shows that the Spanish economy is finding balance and continuity in its labour structure, offsetting the decline in certain sectors with strength in others. In addition, the youth unemployment rate reached historic lows for a month of September, which reinforces the feeling of continued improvement in the labour market.

We view the evolution of employment in Spain with some optimism, with an economy that, despite the challenges, continues to show capacity for adaptation and resilience.
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Cryptocurrency markets surge 10% after Fed rate cut

Cryptocurrency markets surged 10% last week, boosted by the US Federal Reserve's 50 basis point reduction in interest rates, the Fed's first rate cut in four years.

The federal funds rate was lowered from a target range of 5.25%-5.50% to 4.75%-5.00% in response to progress toward the Fed's 2% inflation target since its last meeting in July.

Bitcoin saw a 6% surge, reaching $64,000, a price level not seen since August 26 this year. Bitcoin spot price ETFs also saw $412 million worth of inflows last week.

Interestingly, the published dot-plot, which illustrates the Fed's estimates of long-term interest rates, showed that officials expect the federal funds rate to be in a target range of 4.25%-4.50% by year-end, 50 basis points below the current target range. This suggests that further rate cuts could be coming at the Fed's November and December meetings.

According to CME FedWatch, the market is currently forecasting a target range for the federal funds rate of 4.00%-4.25% by year-end, which would imply a reduction of 75 basis points from current levels.

The focus will be on Friday's Personal Consumption Expenditures (PCE) inflation data. The PCE is the preferred measure of inflation for the #Fed . A lower than expected figure could further boost markets in anticipation of even deeper interest rate cuts in the coming months.
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US GDP: “Should give investors confidence that the Fed can orchestrate a soft landing”

eToro on the US GDP data. “While we are not necessarily out of the woods, the US economy is more resilient than many believe.

Today’s report should give investors confidence that the Federal Reserve can still orchestrate a soft landing,” says Bret Kenwell, investment analyst at eToro.

After a lackluster first quarter, revised GDP growth in the second quarter remained strong, helping to reassure investors that the economy is not faltering.

While the labor market has seen some weakness in recent months, other economic data shows that consumers are still spending, as evidenced by personal consumption, which leads today’s revised reading.

Despite the upward revision to the second quarter, the Federal Reserve is unlikely to alter its plans to cut rates at next month's meeting, after Chairman Powell made clear that the time has come to shift policy toward lower rates.

That's because the Fed is looking at a set of data, not a single indicator, and won't alter its plans because of any particular report.

While we're not necessarily out of the woods, the U.S. economy is more resilient than many believe. Today's report should give investors confidence that the Fed can still orchestrate a soft landing.

This content is for informational and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results. CFDs are leveraged products and carry a high risk to your capital

#FED #ReservaFederal #bitcoin #Binance #BTC $BTC

Jerome Powell at Jackson Hole: 'I've Delivered What Investors Were Hoping For: Clarity on Rate Cuts'
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Bret Kenwell, US Investment Analyst for eToro

- Federal Reserve Chairman Powell today delivered in his Jackson Hole speech what investors were hoping for: clarity on rate cuts. Powell acknowledged diminishing risks to inflation and rising risks to employment, saying the time has come for the Fed to tighten policy.

- When it comes to timing, it's nearly impossible for the Fed to 'thread the needle'. Either they appear to cut rates too early and risk a reflationary response, or they appear to cut rates too late and risk a labor market collapse. This is the reality of being data-driven.

- Some investors might have hoped for clarity regarding the size of the rate cuts, but that was always going to be a long shot. Ultimately, Chairman Powell delivered what the market craved: certainty regarding the Fed's monetary policy going forward, opening the door to the first rate cut in more than four years.

#FED