MORGAN STANLEY

Apr 07 2021

European B2B Wealthtech Allfunds Set to List on Euronext Amsterdam Stock Exchange

Madrid-based Allfunds, a B2B Wealthtech solution provider, will reportedy be listing on the Euronext Amsterdam stock exchange.

Allfunds has developed a comprehensive ecosystem that aims to cover the complete fund distribution value chain and related investment cycles, including through Allfunds Connect, which is a suite of software-as-a-service or SaaS-powered digital, data and analytics software tools.

Allfunds had more than €1.2 trillion of assets under administration, as of December 2020. The company reports around €370 million in turnover and about €263 million adjusted Ebitda. The group also reports a growth rate of 13% during the last 3 months.

Allfunds has hired BNP Paribas, Credit Suisse Securities, Citigroup Global Markets and Morgan Stanley Europe as its joint bookrunner, for this latest offering, which includes a private placement of 25% of the firm’s outstanding shares that are held by LHC3, BNP Paribas and Credit Suisse.

Although AllFunds won’t be getting any proceeds from the sale, the firm thinks that the listing could potentially provide access to diversified sources of financing and enhance its profile and general brand awareness.

Juan Alcaraz, founder and CEO of Allfunds, stated:

“We have built an ecosystem that covers the entire fund distribution value chain and investment cycle, integrated into a simple one-stop-shop for our clients. This listing provides us with the flexibility to accelerate the digital transformation of the wealth management industry and the growth of our best-in-class global platform.”

Allfunds may expand it business operations into other regions where it maintains a relatively smaller market presence, including in Asian and North American markets.

Allfunds, which claims to be the largest fund platform and world leader in the wealthtech space, recently launched a new mobile app for its digital eco-system Connect.

As mentioned in a company blog post:

“With the Connect App users will be able to track funds, manage portfolios wherever they are and never miss a critical alert. Users will be able to access information on their funds or adjust their portfolios at any time.”

Some other notable functions include:

Search, analyze, compare and monitor, from more than 200,000 funds at ETFs
Set-up and “access multiple alerts”
Stay “on top of watchlists that track funds”
Manage and “maintain control of portfolios accessing performance, risk, asset allocation and transactions”
With the Connect mobile app, users “leverage the power of Allfunds to manage funds and portfolios anytime, anywhere.”

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Jan 23 2021

Sweden’s Payments Firm Trustly Is Reportedly Planning an IPO during Q2 2021, Valuing it at a Potential €9 Billion

Sweden-based payments company Trustly is reportedly planning to conduct an initial public offering (IPO) during the second quarter of this year. The IPO might value the firm at around €9 billion.

Trustly’s owner, Nordic Capital, is currently working cooperatively with Goldman Sachs, JP Morgan and Carnegie and could be in the process of receiving assistance from more banking institutions with the goal to conduct the IPO in April or May 2020. This, according to Reuters which cited sources familiar with the matter.

Just like other payment processing service providers in Europe, Trustly is taking advantage of the increased investor interest as the COVID-19 pandemic leads to more consumers and businesses conducting all-digital transactions.

Established in 2008 and with business offices based in Sweden, Spain, Malta, Germany and Britain, Trustly handles over 4 million payments every month (on average). The company’s revenues were valued at €130 million in 2019 and are on track to reach €200 million for FY 2020.

Nordic Capital acquired a 70% stake in Trustly back in 2018 at a valuation of approximately €700 million and then merged its operations with US-headquartered PayWithMyBank in 2019.

The company’s most recent investments round, which was led by BlackRock in June 2020, led to a valuation of around €2 billion.

As noted by Reuters, Trustly’s planned IPO will mostly likely be conducted in Stockholm. It’s notably one of several technology listings expected this year in Europe as investors increasingly turn to growth stocks in fairly strong equity markets.

The appeal of Fintech businesses has increased considerably during the pandemic as more consumers engage with digital commerce platforms and make online payments to avoid physical contact and the further spread of the virus.

Global money transfer Fintech Transferwise is also reportedly getting ready for a potential stock market listing in Britain with assistance from Goldman Sachs, Morgan Stanley and Barclays. The move might value TransferWise at a lot higher than the $5 billion suggested, after a 2020 investment round (according to sources).

Many Fintechs are simultaneously considering an IPO and also a deal with a special purpose acquisition (SPAC) company, which secures funds in an IPO and then acquires a private company in order to give it a listing.

In December 2020, such a blank-check acquisition company backed by professional investor Bill Foley had decided to merge operations with Paysafe, which reportedly valued the payments provider at roughly $9 billion.

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Jan 11 2021

Crypto Market Plummets, Sheds Off $170 Billion in 24 Hours

The crypto market has been on a tear for the past few weeks, with Bitcoin leading the charge and surging past one milestone after another. However, the market now appears to be cooling off, much to investors’ and traders’ dismay.

Losses Across the Board

At press time, the crypto market capitalization stands at $917.41 billion. This is a 17 percent drop in the past 24 hours alone, down from the record $1.1 trillion levels recorded on Monday. Top cryptocurrencies are also trading down on the day, with many fearing that the rally sustained over the past month might finally be coming to an end.

As expected, Bitcoin had led the rally and is now dragging other coins. The leading cryptocurrency crossed the $40,000 mark in the middle of last week, surging past $41,500 for good measure. However, its price eventually stabilized around $39,000 to end the week. While many investors hoped to see the rally continue, things haven’t exactly panned out.

Bitcoin is now trading lower than $34,000. Instead of another staggering run above $40,000, a drop to possibly the high $20,000s now seems like a more imminent possibility. Data from Coinmarketcap also shows that Bitcoin’s market cap had dropped by 16.08 percent. It currently stands at $584.7 billion.

Ether, the second-largest cryptocurrency, is also witnessing a notable fall. The asset started 2021 on a tear, reaching the $1,000 price peg for the first time since January 2018. Many attributed the asset’s growth to the frenzy in the decentralized finance (DeFi) space and its Ethereum 2.0 staking.

Sadly, the asset has dropped 15.38 percent in the last 24 hours and now trades at $936. Its market cap has plunged by 19.29 percent as well, dropping to $110 billion.

XRP, the third-largest cryptocurrency, is not any different. Last month, the Securities and Exchange Commission (SEC) slammed XRP’s developers, Ripple Labs, with a suit alleging that it violated the Securities Act of 1993 via its 2013 XRP Initial Coin Offering (ICO).

The lawsuit alleges that XRP is a security, setting the stage for a possible paradigm shift. Between the suit’s filing and January 6, XRP’s price plunged by 55.6 percent. The asset climbed after then, gaining over 20 percent before entering the weekend’s bloodbath. XRP’s $12.15 billion market cap is also an 18 percent drop over the past 24 hours.

Several other large-cap cryptos are also down. The ten largest cryptocurrencies have dropped by an average of 14.03 percent in the past day. Their market caps have also plunged by 13.67 on average.

Investors Hanging On

Price drops like these – especially those seen in Bitcoin – tend to make investors antsy. However, many institutional investors remain bullish on cryptocurrencies in the long term. Last week, investment banking firm Morgan Stanley increased its ownership in business intelligence firm MicroStrategy to ten percent.

MicroStrategy was one of last year’s big crypto winners, purchasing $425 million in Bitcoin when the leading asset traded around $10,000. Factoring in the gains from the past two months, the company should be sitting on a Bitcoin stash worth well over $1 billion.

With Wall Street getting more interested in crypto, we could see a repeat of 2020 where institutional players prop up the market. This correction could then be seen as a momentary blip.

Crypto Market Plummets, Sheds Off $170 Billion in 24 Hours

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Jan 10 2021

Top 5 cryptocurrencies to watch this week: BTC, ADA, EOS, THETA, AAVE

During an interview with Bloomberg, Grayscale CEO Michael Sonnenshein said that in addition to hedge funds, pension funds and endowments had also started investing in the Grayscale family of products. This suggests that a broad spectrum of institutions are accumulating Bitcoin (BTC).

As this trend gathers speed, investment banks have also decided that they do not want to be left behind. A recent filing from Morgan Stanley shows a purchase of a 10.9% stake in business intelligence firm MicroStrategy, a move that was likely made in order to gain exposure in Bitcoin. With 70,470 Bitcoin in their possession, MicroStrategy has become a proxy play on Bitcoin.

Several analysts suspect that the current demand could also be coming from investors who have been closing their gold positions and buying Bitcoin. On a query about the recent underperformance of gold, CNBC Mad Money show host Jim Cramer speculated that institutional money may be flowing into cryptocurrency.

*Crypto market data daily view. Source:* *Coin360*

While there have been positive reports about institutional purchases, traders should also keep track of the people who have been selling because at some point the rally will lose momentum and investors will look to book profits.

Analysts at Material Indicators suggest that mega whales may have booked profits on Jan. 7 when Bitcoin hit $40,000 and further selling from whales could also be the reason for the price drop seen today. However, aggressive buying at lower levels resulted in a strong rebound.

But that has not deterred the whales from selling. Bitcoin whales in South Korea have been dumping their positions over the past few days, as seen from the multiple $100 million deposits to exchanges. While the selling has not caused a massive rush to the exit, traders should be careful with their positions because even if a couple of large investors in the U.S. rush to the exit, it could result in a sharp fall.

If Bitcoin corrects sharply, most altcoins are also likely to follow suit, but if Bitcoin remains strong, these top-5 cryptocurrencies could outperform in the short term.

Let’s analyze their charts to spot the critical levels to watch.

BTC/USD

Bitcoin has been in a strong uptrend for the past few weeks, but the rally has pushed the relative strength index (RSI) into overbought territory. While markets can remain overbought for a long time, with every rise, the risk of a sharp correction increases.

The first support on the downside is the intraday low made on Jan. 8 at $36,518.73. If the price rebounds off this level, it will suggest that traders are not booking profits in a hurry and are buying on minor dips.

If the bulls propel the price above $41,959.63, the uptrend could resume with the next target objective at $45,000 and then $50,000.

However, if the bears sink the price below $36,518.73, the BTC/USD pair could drop to the 38.2% Fibonacci retracement level of the most recent leg of the up-move at $32,816.03.

This is a crucial support to monitor because if it cracks, several traders may start to panic and dump their positions, which may result in a deeper correction to the 61.8% retracement level at $27,167.10.

*BTC/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows that the price is currently stuck inside a $38,000 to $41,959.63 range. If the bulls can push the price above the range, the uptrend may resume.

On the other hand, if the bears sink the price below the support of the range, it will suggest profit-booking by traders.

The next support on the downside is the 50-simple moving average, which has not been breached decisively during previous corrections in this leg of the uptrend. Thus, if this support cracks, it will signal a possible trend change.

ADA/USD

Cardano (ADA) is currently consolidating in an uptrend. The altcoin has been stuck between $0.2632811 and $0.3542857 for the past few days, which has pulled down the RSI from deeply overbought levels.

The bulls are currently facing stiff resistance near the $0.34 level but one positive sign is that there are no signs of panic selling yet. If the bulls can drive the price above the overhead resistance, the next leg of the uptrend could resume.

The ADA/USD pair has a target objective at $0.449 but the bears are likely to mount a stiff resistance near $0.40. However, if the bulls can push the price above the resistance levels, the pair could rally to the psychological level at $0.50.

This bullish view will be invalidated if the pair turns down and breaks below the 20-day EMA ($0.234). Such a move will suggest that the uptrend may have topped out.

*ADA/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows the formation of a symmetrical triangle, which usually acts as a continuation pattern. The bulls are currently attempting to defend the 20-EMA. If the price rebounds off the current levels, the bulls will try to push the pair above the triangle.

If they succeed, the pair may rally to $0.525. However, if the pair drops below the triangle, the next support is at the 50-SMA, but if this support also cracks, the decline could extend to $0.20.

EOS/USD

EOS has been trading inside a large range between $2.20 and $3.949. The altcoin turned down sharply from the overhead resistance today, which shows aggressive selling by the bears.

However, if the bulls defend the moving averages, the EOS/USD pair may again attempt to rise to the overhead resistance near $3.949. A breakout of this level will suggest the start of a new uptrend that may reach $5.698.

This view will be invalidated if the bears sink and sustain the price below the moving averages. Such a move could result in a fall to the support of the range at $2.20 and that may keep the pair range-bound for a few more days.

*EOS/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows that the price turned down sharply from the overhead resistance and broke below both moving averages. This suggests aggressive selling by the bears.

However, if the price rebounds off the current level and rises above the 20-EMA, it will suggest that the selling may be over. The bulls may then again try to carry the price to the overhead resistance.

Conversely, if the bears sustain the price below $3, the pair may drop to $2.50 and then to $2.20.

THETA/USD

THETA is currently consolidating in an uptrend for the past few days. The price has been making lower highs, which suggests that every attempt to rally is being met with selling from the bears.

However, a minor positive is that the bulls have not allowed the price to dip below the $1.7611 support. The 20-day EMA ($1.74) is just below this level and the bulls are likely to defend it aggressively.

If the bulls can push the price above $2.20, the THETA/USD pair may rise to $2.51. The upsloping moving averages and the RSI in the positive territory suggest bulls are in control.

If the bears continue their selling and sink the pair below the 20-day EMA, it may open the gates for a drop to the 50-day SMA ($1.12).

*THETA/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows a descending triangle formation. The flat moving averages and the RSI just below the midpoint suggest a balance between supply and demand.

If the bears can sink and sustain the price below $1.7611, the descending triangle pattern will complete and that could drag the price down to $1.01.

On the other hand, if the bulls can push the price above the triangle, it will invalidate the bearish pattern. This could push the price to $2.51 and if the bulls can thrust the price above this resistance, the up-move could reach $2.95.

AAVE/USD

AAVE is currently in an uptrend as it continues to make higher highs and higher lows formation. However, the long wick on today’s candlestick shows that bears are aggressively selling at higher levels.

The upsloping moving averages and the RSI near overbought territory suggest the path of least resistance is to the upside. If the AAVE/USD pair corrects further, a rebound off the 20-day EMA ($99.93) will confirm that traders are continuing to buy on dips.

If the buyers can push the price above $135.99, the uptrend could resume with the next likely target at $150.

However, if the bears sink the price below the 20-day EMA, the pair could drop to the 50-day SMA ($85). A break below this support could result in a fall to $70 and then to $60.

*AAVE/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows that the pair is trading inside an ascending channel. The bulls are currently attempting to defend the 20-EMA. A strong bounce could carry the price to the resistance line of the channel.

A break above the channel could result in a sharp up-move but if the price turns down from the resistance line of the channel, the pair may trade inside the channel for a few days.

If the price breaks below the 20-EMA, a drop to the support line of the channel is possible. A strong rebound off this support will keep the uptrend intact but a break below it could signal a trend change.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Top 5 cryptocurrencies to watch this week: BTC, ADA, EOS, THETA, AAVE

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Nov 27 2020

Chinese President Encourages ASEAN Countries to Join the ‘Digital Silk Road’

China’s vision for trade and economic development is part of what caused the government to turn bullish on blockchain and a potential Central Bank Digital Currency (CBDC).

However, the Xi administration now seems poised to apply the same technology to one of its most ambitious projects – the Belt and Road initiative.

Strengthening Trade in the Asia-Pacific

Earlier this week, President Xi Jinping told representatives from several top Asian economies to join it in developing the “digital Silk Road.”

According to a report from the South China Morning Post (SCMP), the president made the speech at the China-ASEAN Expo in Nanning. He highlighted that Beijing takes the ASEAN countries seriously and hopes to partner on a more fruitful economic future.

In a recorded message, Xi assured the Asian leaders that as the only high-performing economy in the 10-country economic bloc, China will continue opening up to them. With everyone looking to build their economies following the coronavirus pandemic, Xi assured help with trade.

“China will unswervingly expand its opening up to the outside world, enhancing its domestic and international economic linkages, and driving the world’s common recovery through its recovery, from which all countries in the world, including Asean, will benefit. Looking to the future, there will be even more room for cooperation between China and Asean,” the president said.

A Set of Ambitious, Controversial Projects

The speech appeared to have mentioned China’s ambitious Belt and Road initiative, which began in 2013. The project is described by many as the 21st century Silk Road, mirroring the old trade routes that traversed much of the developed world.

China’s Belt and Road Initiative reportedly plans to connect trade routes in Africa, Asia, and Europe. The project consists of a “belt” of overland corridors and a “road” of shipping lanes. It includes over 70 countries, all accounting for about half of the world’s population and 25 percent of global GDP.

Estimates from Morgan Stanley show that the initiative could cost over $1 trillion. The Chinese government has reportedly invested over $210 billion into it already, with most of the money being spent in Asia.

Although Xi didn’t highlight what the “digital Silk Road” meant, China has been bullish on technological innovations for trade in the past few years. Part of that has been its fixation on the blockchain, with patents related to the technology exploding. A report highlighted that Chinese companies have applied for 4,435 blockchain patents since the government endorsed the technology.

The government has also made significant progress with its digital yuan, with some believing that the asset could launch in 2022. Like the BRI, the digital yuan has also been the subject of significant controversy. Some think that it will challenge the dollar’s status as the global reserve currency, essentially making China the world’s sole superpower.

Chinese President Encourages ASEAN Countries to Join the ‘Digital Silk Road’

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