Bit_Specter

GraniteShares, a growing asset manager with over $10 billion in assets, has filed for new leveraged ETFs designed to track the stock prices of key cryptocurrency-related companies: Riot Platforms, Marathon Digital, MicroStrategy, and Robinhood. According to reports from crypto.news, these companies are major players in the crypto space, with Riot and Marathon being large Bitcoin mining firms, and MicroStrategy holding the largest Bitcoin reserve at 439,000 BTC. The ETFs will include both 2x long and 2x short options, amplifying the daily returns of the underlying stocks.Leveraged ETFs have gained popularity as the crypto and stock markets reached record highs in 2024, offering investors the potential for amplified returns. However, these funds come with risks, particularly in a bear market. Over the past 30 days, MicroStrategy’s stock dropped by 24%, while the MSTU and MSTX ETFs, which track MicroStrategy, fell by over 50%, highlighting the volatility of leveraged investments in down markets.Other crypto-focused ETFs, like the T-Rex 2x Long MSTR Daily Target fund (MSTU) and Defiance Daily Target 2X Long MSTR ETF (MSTX), have attracted substantial assets, with both surpassing $1.8 billion in assets under management. These ETFs have outperformed MicroStrategy in recent months, with MSTU and MSTX rising 308% and 253%, respectively, compared to a 150% increase in MicroStrategy’s stock.

According to Odaily, Ripple's Chief Technology Officer, David Schwartz, has shared insights on the company's latest product, the RLUSD stablecoin, which was launched earlier this week. In a video message posted on the company's official X account, Schwartz highlighted that RLUSD offers a valuable use case that benefits both users and developers, serving as a reliable asset designed to showcase the potential of the XRP Ledger.Schwartz emphasized that the stablecoin brings both direct and indirect advantages to the XRPL ecosystem. A direct benefit is the stimulation of active trading volume, with XRP itself acting as a bridge asset. He noted that XRP's unique capability to support various assets enhances the accessibility of decentralized exchanges on the XRPL.Furthermore, Schwartz stated that due to the distinct differences between the two assets, XRP and RLUSD will complement each other. The blockchain payment company plans to continue using XRP as a bridge in its proprietary products. Additionally, he underscored the promising future of the tokenized real-world assets (RWA) market, predicting continued growth and increasing demand for stablecoins, with RLUSD poised to dominate this market segment.

According to Odaily, the latest data from the Federal Deposit Insurance Corporation (FDIC) indicates a rise in the number of problematic banks in the United States. The FDIC's quarterly banking profile report reveals that the number of banks on its 'problem bank list' increased to 68 in the third quarter. This marks the fifth consecutive quarterly rise in banks receiving a CAMELS rating of 4 or 5 since the second quarter of 2023. A CAMELS rating of 4 suggests that a bank is facing financial, operational, or managerial issues that could threaten its stability if not addressed. A rating of 5 indicates severe deficiencies in one or more areas, requiring urgent corrective action.

The report highlights that the total assets held by these problematic banks rose by $3.9 billion, reaching $87.3 billion. Problematic banks account for 1.5% of the total number of banks, which falls within the normal range of 1% to 2% during non-crisis periods.

Meanwhile, the amount of unrealized losses on bank balance sheets has decreased. The FDIC reports that as of the third quarter of this year, banks recorded losses of $364 billion, primarily due to exposure to the residential real estate and treasury markets. Unrealized losses represent the difference between the price banks paid for securities and their current market value.

The third-quarter losses were down by $148.9 billion from the second quarter's $512.9 billion. However, FDIC Chairman Martin J. Gruenberg cautioned that the reduction in bank losses last quarter is only temporary. Changes in long-term interest rates since the end of the third quarter suggest that the current unrealized losses for U.S. banks may be nearing $500 billion.