STABLE DESPITE SLIGHT INCREASE
In the latest update, the Labor Department reported that more Americans filed for unemployment benefits, with the number rising to 232,000 in the week ending Aug. 17. This uptick was slightly higher than what experts had expected but still indicates a relatively steady labor market. Therefore, despite concerns about a potential decline in job opportunities following a slowdown in job growth in July, the overall unemployment rate remains stable. Nevertheless, it is still worth noting that while layoffs continue to be at historically low levels, companies are being more cautious with hiring, in response to a recent surge in the labor supply. This caution is reflected in the rising number of people receiving benefits after their initial week of aid, which increased to 1.863 million in the week ending Aug. 10. Overall, the labor market shows signs of cooling down gradually, with a mix of positive and challenging indicators influencing the current economic landscape.
RECORD-BREAKING LAUNCHES
The U.S. market is experiencing a surge in the launch of new exchange-traded funds (ETFs) in 2024, with an average of 50 ETFs debuting monthly, setting a potential new record. This growth follows previous record years in 2023 and 2022, showcasing a continual uptrend in investor interest. The appeal of ETFs lies in their liquidity and tax advantages, prompting issuers to introduce innovative products to cater to evolving investor preferences. Despite recent market volatility, demand for risky ETFs remains strong, with a notable increase in interest for “buffer” ETFs offering downside protection. For instance, the Defiance Daily Target 1.75x Long MSTR ETF has garnered substantial inflows, highlighting investors’ enthusiasm for leveraging opportunities linked to Bitcoin. Additionally, there is a growing trend toward launching ETFs focused on income generation and downside protection using options, such as the Amplify CWP Growth & Income ETF. Overall, the ETF landscape is evolving with new offerings and strategies as companies seek to meet the diverse needs of investors.
$1 BILLION INFLOWS
While Ethereum ETFs have struggled in comparison to their bitcoin counterparts, BlackRock’s iShares Ethereum Trust (ETHA) has rapidly gained momentum in the market, ranking among the top five ETFs overall for 2024 inflows, alongside industry-leading giants like iShares and Vanguard. ETHA has reached $1 billion in net inflows, making it the first among a group of 11 issuers to achieve this milestone. With over $860 million in net assets, ETHA trails behind only Grayscale’s ether trusts. The impressive inflows into ETHA significantly surpass those of other ETFs, with Fidelity’s FETH, Bitwise’s ETHW, and Grayscale’s ETH falling far behind. In contrast, Grayscale’s ETHE has experienced substantial outflows totaling $2.7 billion since its introduction.
MIXED TREND
Bitcoin (BTC) has remained stable around $60,000 in the last day as there were not any major events to drive it higher or lower. The price briefly increased when it was reported that U.S. job growth was lower than expected, and rumors of Robert Kennedy Jr. leaving the presidential race to support Donald Trump, a pro-crypto candidate. However, the price soon dropped back down to the $59,900 mark as traders took profits. Thus, despite a small recovery, the overall crypto market cap fell to $2.1 trillion. In addition, inflows into crypto ETFs were low, indicating weak demand from professional investors. Moreover, other cryptocurrencies like ether (ETH), Solana (SOL), and Binance Coin (BNB) saw small gains while Tron (TRX) fell after an initial rise. Furthermore, tokens like Polygon (MATIC) and Chainlink (LINK) experienced significant increases due to specific events – MATIC went up because of an impending token migration to a unified token called POL, while LINK experienced a rise as its data feeds were utilized in a new release by Aave on the zkSync blockchain, showing an increase in interest and demand for the token. Overall, the crypto market has been displaying mixed movements.
FINANCIAL TURNAROUND
The popular connected fitness company, Peloton, has made significant strides in improving its financial performance. After facing losses for nine consecutive quarters, the company managed to achieve a slight uptick in sales, marking its first year-over-year revenue growth since the 2021 holiday quarter. By focusing on profitability and implementing cost-cutting measures, Peloton was able to narrow its losses and exceeded Wall Street’s expectations in terms of loss per share and revenue. Despite challenges in hardware sales, the company saw growth in subscription revenue through the secondary market. In addition, the company’s efforts to revamp its balance sheet through restructuring and debt refinancing have been paying off, evidenced by strong adjusted EBITDA and free cash flow numbers in the last quarter, showing significant improvement compared to previous periods. Moreover, as Peloton continues to navigate through these changes, the search for a new CEO remains a top priority for the company as it aims to steer itself towards long-term success.
