FEE DEADLINE

The U.S. Securities and Exchange Commission (SEC) has set today as a deadline for asset managers to submit their final Form S-1 detailing fees for upcoming Ether exchange-traded funds (ETFs). Following the SEC’s approval of issuers’ 19-b forms proposing rule changes for crypto-based investment vehicles, asset managers are now seeking approval for their S-1 forms to launch these ETFs on July 23. Leading financial institutions such as BlackRock, Grayscale, Fidelity, ARK 21Shares, Invesco Galaxy, VanEck, Hashdex, and Franklin Templeton are vying to secure approval to launch their Ether ETFs. Some of these issuers are adjusting their Ether ETF plans by excluding staking in response to regulatory concerns to align with the SEC’s standards. Moreover, the fees for these Ether ETFs vary among issuers, with Invesco and Galaxy setting a management fee of 0.25%, slightly higher than VanEck and Franklin Templeton’s fees of 0.20% and 0.19%, respectively.

STEADY SALES

Retail sales in June remained steady, defying Wall Street’s predictions of a decline and indicating a slowing U.S. economy. Economists had forecasted a 0.3% decrease in spending, but Census Bureau data revealed that May’s retail sales were revised higher to a 0.3% increase from an earlier reading of 0.1%. Excluding auto and gas, June sales saw an increase of 0.8%, significantly above the expected 0.2% rise, and the control group, which excludes volatile categories and impacts the Gross Domestic Product (GDP) reading for the quarter, increased by 0.9% in June, surpassing estimates for a 0.2% increase. Nonstore retailers led the gains with a 1.9% rise, while gasoline stations experienced the largest decline, with sales dropping 3%. In addition, motor vehicle and parts dealers also saw a 2% decline. Moreover, coupled with better-than-expected inflation readings, this latest U.S. retail sales report has led markets to continue believing that the Federal Reserve will likely implement the first interest rate cut by the end of its September meeting.

MIXED QUARTER

Bank of America (BofA) has revealed that it saw a decline in profit in the second quarter due to reduced earnings from loans and increased provisions for potential credit losses, causing a 3% decrease in net interest income. Nevertheless, despite this, the bank stated a better-than-expected forecast for net interest income, and this boosted the bank’s shares. Moreover, due to the rise in interest rates, banks have been paying more on deposits, and this has affected their gains from charging higher interest to borrowers, nonetheless, BofA’s investment banking division experienced a rise in fees and underwriting income thanks to a resurgent capital market. Furthermore, the bank’s wealth and investment management unit also recorded increased revenue and client balances, reaching a record of over $4 trillion, and although it has been facing tougher year-over-year comparisons with rivals, the bank is making notable progress in its investment banking operations, with a significant surge in underwriting income and syndication fees.

PROFIT SURGED

Morgan Stanley reported better-than-expected second-quarter earnings and revenue, driven by robust trading and investment banking performance. The bank’s profit surged by 41% to $3.08 billion, or $1.82 per share, exceeding analyst estimates. In addition, revenue also saw a significant increase, rising 12% to $15.02 billion, while the institutional securities division outperformed the wealth management division, with equity trading revenue jumping 18% to $3.02 billion and fixed income trading revenue rising 16% to $1.99 billion. Furthermore, investment banking revenue surged 51% to $1.62 billion, driven by increased fixed income underwriting activity. However, revenue in the wealth management division only rose 2% to $6.79 billion, missing estimates. This was partly due to lower interest income as higher-net-worth clients shifted their assets into higher-yielding investments. Nonetheless, despite this, CEO Ted Pick expressed confidence in the firm’s performance and strategic positioning for long-term growth and value creation for shareholders.

STRONG INFLOWS

According to the latest report from JPMorgan Global Research, there has been a continuation of strong inflows seen in gold ETFs, with open interest for precious metals rising by 7.5% through the week ended on July 12. The total open interest in precious metals now stands at approximately $207.5 billion, its highest level since mid-May. JPMorgan notes that inflows into the gold market have been dominating the overall inflows into the broader precious metals market. This positive momentum for gold is reflected in SPDR Gold, which has seen a 0.4% increase, attributed to concerns of higher volatility following an assassination attempt on former President Trump over the weekend. Ultimately, this sustained interest in gold suggests a continued appeal for the precious metal as a safe-haven asset during uncertainties and market fluctuations.