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Portfolio Update – June 2023

uehiFinance

unemployment

Portfolio Summary

Here is a summary of my portfolio at the top level:

  • Raiz Aggressive Portfolio – $15,669.99, total return $529.21 (6.73% according to app)
  • VDHG (using VPI platform) – $91,892.80, total return $4,666.95 (4.88% including DRP)
  • IVV (Selfwealth) – $666.75, total return $173.08 (13.57% including DRP)
  • SYI (Selfwealth) – $2,136.16, total return $287.94 (6.63% including DRP)
  • VISM (Selfwealth) – $520.02, total return $23.30 (1.86% including DRP)
  • A200 (Selfwealth) – $2,049.01, total return $146.52 (4.27% including DRP)
  • Cryptocurrency – $53,312.69 (-23.87% from principle)
  • Gold – $0
A breakdown of my current asset allocation:
  • Australian Shares – 27.60%
  • Global Shares – 33.87%
  • Bonds – 6.18%
  • Fixed Income Assets – 0.28%
  • Gold – 0%
  • Cryptocurrency – 32.07%

Portfolio Total – $166,247.42 An increase of 5.09% compared to last month’s value ($158,188.88).

This month’s saving is 28%. I had a break this month from my main job for 4 weeks. The last 4 weeks have been crazy for me. Lots of things happened and now here I am, writing this blog about this month’s update. I took the opportunity this month to finish the goals that I set out last month.

  • I am now officially under 75 kgs, staying at 73.9 kgs as of 30/06/2023. There have been many factors contributing to that result, but mostly because of stress, I think. There are days that I did not have proper meals and sleep deprivation. I definitely need to treat myself better, starting next month. 
  • I managed to finish the system for the freelance company in a month. That’s crazy to think about. I was not sure if I could complete everything in a month. It took many sleepless days to get everything sorted out, but I am glad that I have finished this system. Things I have learned during my job boosted my confidence in the design and implementation. This will be part of my resume to showcase my skills. Moreover, now I will get a stable income each week for the work that I have done.
  • Finally got an offer accepted for a house after carefully inspecting the house. I have been there a couple of times, and during the last inspection, I had my landlord with me to get his opinions on the property. I am glad that I do that, and gave my offer to the agent. It was a weird process and a bit stress as well.

Since I only received somewhat half the income this month, I had to cut back a lot of things to save every dollar I could. This is needed because I am in the process of getting the contract exchanged for the property. There’s also another surprise event about tax, which costs me a small lump sump amount, $10,000 for the after-tax super contribution. I realized that my tax is too high to be eligible for the Home Buyer concession scheme (from 1 July 2019), which is at $170,000. I also checked my super and I was able to contribute $10,000 into the super account and notified the fund about claiming the deduction. It was one hell of a night that I had to look up all the information needed to reduce my taxable income. It was very close since I only had 2 more days to contribute before the deadline. Glad that I have figured it out just in time.

Another problem that I have is that I offered the property on 28/06/2023, and being an introvert myself, there was a lot of back and forth between me and the agents. I had to call the broker, my solicitor, and my friends to advise on stuff. The realtor also tried to put me in a position where they wanted to get it done ASAP. This put me in an uncomfortable position since why with all the hurriedness, they were trying to push me to give a higher offer for the property. However, I said it was my final offer, took it or left it, their choice. In the end, it’s just about the tactic that they were using. I got the offer accepted, now the worst part was that my payslip was valid for a month only, and the lender in the worst case scenario, they would need another payslip, which would delay the process for one and half a week. Well, let’s see how that goes.

I managed to contribute $2,000 to VDHG this month, $400 for Raiz, and $1,200 for crypto. I was thinking that I should not invest much this month because my income was only half. However, part of my saying that I should just invest this month, regarding the income. The freelance income would come slowly for the next financial year, and it could be my last month to contribute since I have just got my offer for the property accepted, I would need to save any dollar I could for the next couple of months. Let’s stay positive for now and hope I would not get into much trouble.

Note: A reminder is that this number is still an estimation only as my crypto portfolio consists of different assets, including NFTs, staking, and Defi. I have to use other tools to keep track of and maintain the value of investments to finalize the final value of my portfolio. NFT is hard to estimate because of price fluctuation in the crypto market. However, estimation is still good enough in this case.

Events & Porfolio Analysis

General news

  • On 01/06/2023, LA bill to raise the debt limit and cap government spending passed in the House, sending it to the Senate before the U.S. default deadline. Democrats and Republicans supported the Fiscal Responsibility Act, concluding weeks of negotiations between the White House and House Speaker Kevin McCarthy.
  • In a recent statement, Federal Reserve Governor Philip Jefferson and Philadelphia Federal Reserve President Patrick Harker indicated that the central bank might consider pausing rate hikes at its upcoming policy meeting. They emphasized that such a pause wouldn’t indicate the end of rate hikes altogether.
  • On 02/06/2023, Australia’s Fair Work Commission (FWC) has announced an 8.6% increase in the minimum wage and a 5.75% pay boost for award workers. This decision sets the new national minimum wage at $23.23 per hour and $882.80 per week for a 38-hour workweek. However, it is important to note that this increase in the minimum wage is accompanied by a significant technicality, which is not specified in the provided information.
  •  The Senate has passed a bill to raise the debt ceiling and limit government spending, which now awaits President Joe Biden’s signature. The legislation comes just in time, as the U.S. was facing the risk of its first-ever sovereign debt default. President Biden is expected to sign the bill and address the nation on the matter. The news of the bill’s passage has led to a slight rise in stock futures, as it averts potential economic turmoil.
  • On 03/06/2023, The U.S. economy added more jobs than anticipated in May, according to the Labor Department’s report. Nonfarm payrolls increased by 339,000 in both the public and private sectors, surpassing the estimated 190,000 and extending the streak of positive job growth to 29 consecutive months. However, the unemployment rate rose slightly to 3.7% from the estimated 3.5%, while the labor force participation rate remained unchanged. Despite the increase, the jobless rate is still near its lowest level since 1969.
  • Republican lawmakers unveiled a draft bill aimed at providing clearer regulation for cryptocurrencies and exchanges in the United States. Co-authored by Reps. Patrick McHenry and Glenn Thompson, the bill proposes granting the Commodity Futures Trading Commission (CFTC) explicit authority over crypto commodities in the spot market, while digital-asset securities would fall under the jurisdiction of the Securities and Exchange Commission (SEC). The bill also seeks to prevent the SEC from blocking alternative trading systems from listing crypto securities and would require the SEC to modify its rules to allow broker-dealers to custody digital assets.
  • On 05/06/2023, OPEC and its allies, known as OPEC+, announced on Sunday that they would maintain their planned oil production cuts for this year. Additionally, Saudi Arabia, the chair of the coalition, stated its commitment to further voluntary reductions. The coalition also confirmed a combined oil production limit of 40.463 million barrels per day for January-December 2024.
  • President Joe Biden delivered his first address from the Oval Office on Friday, discussing a bill to raise the debt ceiling and cap federal spending. He emphasized the importance of the agreement and signed the bill into law on Saturday. The bill received bipartisan support in both the Senate and the House, with the Senate passing it by a 63-36 margin and the House approving it by a vote of 314-117. Biden stated that while not everyone got everything they wanted, the bill averted an economic crisis and collapse.
  • On 06/06/2023, The Reserve Bank of Australia has increased its official interest rate to 4.1 percent, reaching a level not seen since early 2012. This marks the second consecutive month of a 0.25 percentage point hike, driven by concerns that inflation is persisting for too long. The latest consumer price index data from the Australian Bureau of Statistics indicated a 6.8 percent year-on-year increase in prices up to April, partly influenced by temporary factors such as last year’s fuel excise cut.
  • On 13/06/2023, The upcoming release of inflation data for May is expected to indicate a slowdown in price increases that have been affecting consumers for the past two years. The key question is whether this deceleration will be sufficient to convince Federal Reserve officials that they can halt interest rate hikes and allow the U.S. economy to stabilize. The consumer price index (CPI), scheduled to be released on Tuesday, is projected to show a modest 0.1% increase in all-items inflation for the previous month, corresponding to an annual rate of 4%. Excluding the volatile food and energy components, CPI is anticipated to rise by 0.4% and 5.3%, respectively.
  •  United States Representative Warren Davidson introduced the “SEC Stabilization Act” in the House of Representatives. One of the key provisions of the bill is the removal of Securities and Exchange Commission (SEC) Chair Gary Gensler from his position. Davidson had previously announced his intention to introduce the bill earlier this year. The bill is co-authored by Representative Tom Emmer, who stated that the aim of the “SEC Stabilization Act” is to bring about sensible changes that prioritize the protection of investors and prevent the SEC chair from making arbitrary decisions.
  • On 14/06/2023, The inflation rate in May showed a significant decrease, reaching its lowest annual rate in over two years, according to the Labor Department’s report on Tuesday. The consumer price index rose by only 0.1% for the month, leading to a drop in the annual level from 4.9% in April to 4%. This marks the smallest 12-month increase since March 2021 when inflation started rising to its highest level in 41 years. However, when excluding the volatile food and energy prices, the situation was not as positive.
  • On 15/06/2023, the Federal Reserve announced its decision to abstain from raising interest rates for the 11th consecutive time. The central bank is currently assessing the impacts of the previous 10 rate increases before proceeding further. However, the Federal Open Market Committee projected that two quarter-percentage-point rate hikes are expected before the end of the year. Fed Chair Jerome Powell acknowledged that the policy interest rate has been raised by five percentage points and the reduction of security holdings has been substantial. He also noted that the full effects of the tightening measures have yet to be fully realized. Powell made these statements during a news conference following the Fed’s decision.
  • Australia’s unemployment rate has dropped from 3.7% to 3.6%, defying expectations of remaining steady. The latest data from the Australian Bureau of Statistics indicates that employment in May saw an increase of approximately 76,000 individuals, while the number of unemployed individuals decreased by 17,000. The majority of the newly added positions, around 61,700, were full-time roles. These figures came as a surprise to economists, as some had anticipated more modest job gains. The robust labor market performance suggests that Australia’s job market remains resilient despite broader economic slowdown concerns.
  • On 16/06/2023, The European Central Bank (ECB) announced on Thursday that it is raising its main rate by 25 basis points to 3.5%. This decision diverges from the U.S. Federal Reserve’s choice to pause its own interest rate hikes. Since July 2022, the ECB has been gradually increasing rates in an effort to combat high inflation levels across the region. However, the most recent inflation data indicates a faster-than-expected cooling of prices. In May, headline inflation stood at 6.1%, while core inflation, which excludes volatile items, was at 5.3%. These figures remain significantly higher than the ECB’s target of 2% for headline inflation.
  • On Thursday, asset management giant BlackRock initiated the process of launching a spot bitcoin exchange-traded fund (ETF), a development that has been a source of debate between cryptocurrency proponents and federal regulators. BlackRock submitted an application to the U.S. Securities and Exchange Commission (SEC) for the iShares Bitcoin Trust. If the application is approved, the ETF would provide investors with convenient access to cryptocurrency through a product offered by one of the largest companies on Wall Street.
  • On 19/06/2023,  Recent data from the Federal Reserve Economic Data (FRED) system reveals that there has been a notable increase in the withdrawal of cash from the US banking system. From the beginning of the month until June 7th, a total of $79.16 billion exited American bank accounts. This marks a significant reversal following two weeks of inflows into the system. Over the past year, a substantial amount of $803.73 billion has been withdrawn from customer accounts, highlighting a trend of decreasing deposits. Currently, US banks hold a total of $17.20 trillion in deposits, indicating the overall amount of funds remaining within the banking system.
  • On 20/06/2023, the People’s Bank of China implemented a cut in two key lending rates for the first time in 10 months. The move aims to support economic growth in the world’s second-largest economy. The one-year loan prime rate was reduced by 10 basis points, from 3.65% to 3.55%, while the five-year loan prime rate saw a similar 10 basis point reduction, from 4.3% to 4.2%. This marks the first rate cut since August. Following the announcement, the Hang Seng mainland properties index, which serves as a gauge for Hong Kong-listed Chinese developers, experienced a decline of over 3%. Country Garden, a prominent participant in the index, witnessed a slump of approximately 5%. While some analysts had expected a more significant rate cut of at least 15 basis points to the five-year rate, the actual reduction fell short of those predictions.
  • On 22/06/2023, Federal Reserve Chairman Jerome Powell reiterated on Wednesday that further interest rate increases are likely in the future until inflation is adequately addressed. Powell’s comments come after the Federal Open Market Committee’s recent decision to pause rate hikes, which he suggested was a temporary break rather than a signal of the end of rate increases.
  • David Folkerts-Landau, the chief economist at Deutsche Bank, has expressed concerns that the United States may be heading for a hard landing and a recession as a result of the Federal Reserve’s rapid series of interest rate hikes. Folkerts-Landau suggests that even if the rate hikes successfully bring down inflation, a recession is highly likely. His team predicts that the Fed will further decrease inflation, leading to a recession that will compel the central bank to begin cutting rates by March 2024. The analysts anticipate that the rate cuts will be implemented in a similarly aggressive manner as the rate hikes, potentially in increments of 50 to 75 basis points until reaching 2.625%.
  • On 23/06/2023, In a surprising move, the Bank of England raised interest rates by 50 basis points, marking its 13th consecutive increase as policymakers contend with stubbornly high inflation. The Monetary Policy Committee voted 7-2 in favor of the half percentage point hike, bringing the bank’s base rate to 5%. This decision went against market expectations, as most analysts had anticipated a 25 basis point increase.
  • Ripple, a blockchain company, announced that it had received in-principle regulatory approval from the Monetary Authority of Singapore, the country’s central bank, to operate in Singapore. This approval came in the form of a Major Payment Institution Licence, enabling Ripple to offer regulated digital payment token products and services. With this license, Ripple plans to expand the cross-border transfers of XRP, a cryptocurrency closely associated with the company, among its customer base, which includes banks and financial institutions. This development brings a positive moment for the cryptocurrency industry globally, particularly as regulatory policies tighten in the United States.
  • On 28/06/2023, Aus CPI is out. Inflation in Australia showed signs of easing as it decreased to 5.6% in the twelve months leading up to May, marking the smallest increase in 13 months. The latest Consumer Price Index (CPI) figures released by the Australian Bureau of Statistics indicate that housing prices rose by 8.4% over the past year, followed by increases in the food and non-alcoholic beverages category (up 7.9%) and furnishings, household equipment, and services group (up 6%). Although the inflation rate remains higher than desired by economists, the government, and the Reserve Bank, it is moving in a downward trend, closer to the central bank’s target range of two to three percent.
  • On 29/06/2023, According to the Federal Reserve, all 23 U.S. banks that underwent the annual stress test demonstrated resilience in the face of a severe recession scenario. Despite projected losses totaling $541 billion, the banks were able to maintain minimum capital levels and continue lending to consumers and corporations. The results indicate that the banks are well-positioned to provide credit and support the economy during challenging economic conditions.
 

Crypto news

  •  On 01/06/2023,  During a Senate hearing, U.S. Senator Elizabeth Warren highlighted the widespread use of cryptocurrency in the Chinese fentanyl trade. Citing research from Elliptic, she noted that over 90 Chinese businesses involved in shipping fentanyl precursors accepted cryptocurrencies as payment. Senator Warren called for legislation to disrupt this illicit pipeline.
  • In his op-ed for MarketWatch, Brian Armstrong emphasized the importance of recognizing the potential of cryptocurrency and its technology, rather than dismissing it. He warned that excessive regulation could hinder the United States’ position as a financial leader and innovation center. Armstrong urged regulators to consider the broader impact of crypto beyond individual transactions. He highlighted various sectors that could benefit from favorable crypto regulation in the U.S.
  • A recent report indicates that the central banks of Hong Kong and the United Arab Emirates (UAE) are planning to collaborate on the regulation of cryptocurrencies and the development of financial technology. The two central banks have agreed to align their efforts in these areas, aiming to foster joint initiatives in fintech development and knowledge-sharing. Infrastructure and financial market connectivity were among the key topics discussed during their recent meeting. This collaboration reflects a shared interest in advancing innovation in the financial sector between Hong Kong and the UAE.
  • On 02/06/2023, First Digital Group has revealed the launch of FDUSD, a USD stablecoin. The stablecoin will be issued on the Ethereum and Binance Smart Chain platforms. First Digital is currently in talks with major exchanges for its listing. FDUSD is backed by cash and cash equivalents held in regulated financial institutions across Asia. The stablecoin will be issued by First Digital Trust, a trust company registered under Hong Kong’s Trust Ordinance.
  • Voltage, a Lightning as a Service (LaaS) provider, has joined forces with Google Cloud to enhance its hosting capabilities and extend its reach. This partnership will enable customers to establish Bitcoin and Lightning Nodes worldwide. By collaborating with Google Cloud, enterprises will have the opportunity to utilize the Lightning Network’s fast and low-cost payment settlement system, which has the potential to transform money transfers and unlock innovative business models.
  • On 04/06/2023, Reports have emerged on Twitter indicating that users of Atomic Wallet have experienced significant losses in their cryptocurrency holdings. Atomic Wallet is a noncustodial and decentralized wallet, meaning users have sole responsibility for the security of their assets stored within the application. The team behind Atomic Wallet acknowledged the reports and expressed their commitment to investigating and analyzing the situation. They stated on Twitter that they are actively gathering more information and will share updates as they become available.
  • On 06/06/2023, The Securities and Exchange Commission (SEC) has filed 13 charges against Binance, the world’s largest cryptocurrency exchange, and its founder, Changpeng Zhao. The allegations include commingling billions of dollars worth of user funds and sending them to a European company controlled by Zhao. The SEC claims that Binance and Zhao manipulated their own controls to allow high net worth U.S. investors to trade on the exchange’s unregulated international platform. The complaint further alleges that Binance created Binance.US as a shield to protect the main company and Zhao from law enforcement targets.
  • On the same day, The Securities and Exchange Commission (SEC) has filed a lawsuit against Coinbase, a cryptocurrency exchange, in New York federal court. The SEC alleges that Coinbase was operating as an unregistered broker and exchange and seeks a permanent restraining order to prevent such activities. As a result, Coinbase’s stock experienced a 12% decline in shares on Tuesday. The stock had already fallen 9% the previous day following the SEC’s charges against rival exchange Binance and its founder Changpeng Zhao.
  • On 08/06/2023, according to documents filed by the Securities and Exchange Commission (SEC) in a case against Binance, lawyers for the crypto exchange and its founder Changpeng Zhao claim that SEC Chair Gary Gensler offered to serve as an advisor to Binance’s parent company in 2019. The documents state that Gensler had several conversations with Binance executives and Zhao in March 2019, and they eventually met for lunch in Japan later that month. At the time, Gensler was teaching at the Massachusetts Institute of Technology’s Sloan School of Management. In 2021, he was appointed as the head of the SEC by President Biden and has since taken a tough stance on the crypto industry, filing lawsuits against several companies for allegedly selling unregistered securities.
  • Binance.US, the American affiliate of cryptocurrency exchange Binance, announced on June 7 that it would be discontinuing trading services for several crypto tokens. This decision comes shortly after the United States Securities and Exchange Commission (SEC) filed a lawsuit against Binance entities and their leadership. The removal of selected Advanced Trading pairs was scheduled for June 8, and the platform also paused its Over-the-Counter (OTC) Trading Portal. The move is seen as part of Binance.US’s efforts to address regulatory concerns and streamline its offerings in response to the SEC lawsuit.
  • On 09/06/2023, In recent filings, Binance’s lawyers have reiterated their stance that Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), should recuse himself from the agency’s case against Binance. The lawyers claim that Gensler’s past attempt to secure a job at Binance raises concerns about his impartiality in the matter. The exchange’s lawyers argue that they previously highlighted these concerns in a letter dated June 4, 2023, which was included in the SEC’s supporting documents. They contend that Gensler’s involvement may pose a conflict of interest and that he could potentially be a material witness in the case.
  • SEC also claims that Binance Redirected $12B to Firms Controlled by CEO Changpeng Zhao, SEC Says SEC says billions in customer funds were directed to Zhao’s firm Merit Peak via a holding company called Key Vision Development Limited.
  • On 10/06/2023, Robinhood, the cryptocurrency and stock trading app, has announced that it will no longer support Cardano, Polygon, and Solana tokens. These tokens were labeled as unregistered securities by the United States Securities and Exchange Commission (SEC) in its recent legal actions against crypto exchanges Binance and Coinbase. Robinhood stated in an update on June 9 that it will end support for these three tokens starting on June 27, following a review. The company specifically mentioned the SEC’s lawsuits against Coinbase and Binance, stating that they have introduced uncertainty surrounding these tokens, which were the only ones supported by Robinhood that were involved in the cases. This has caused panic selling and market is bleeding hard.
  • On 13/06/2023, Ripple CEO Brad Garlinghouse has expressed anticipation for the unsealing of the Hinman documents, stating that they will be “well worth the wait.” In a Twitter response on June 12, Garlinghouse indicated that he and Ripple’s chief legal officer, Stuart Alderoty, believe the documents hold significant value, making the 18-month legal battle to unseal them worthwhile. Although Garlinghouse did not provide specific details about the content of the documents, his statement suggests that they may have significant implications for Ripple and its ongoing legal proceedings.
  • Bank of China investment bank BOCI has made history by issuing fully digital structured notes worth 200 million offshore renminbi ($28 million) on the Ethereum blockchain. This move marks the first instance of a Chinese financial institution issuing a tokenized security in Hong Kong. By leveraging blockchain technology, BOCI aims to enhance efficiency, transparency, and accessibility in the issuance and trading of financial instruments. This milestone highlights the growing adoption of blockchain technology within the financial industry and its potential to transform traditional practices.
  • On 14/06/2023, the highly anticipated Hinman documents were unsealed and made available to the public. These documents shed light on a significant speech given in 2018 by Bill Hinman, the former director of the SEC’s corporation finance division. In his speech, Hinman expressed his view that Ether, a major cryptocurrency, should not be classified as a security. The Hinman documents include internal communications within the SEC, offering a comprehensive understanding of the agency’s deliberations and insights before and after Hinman’s speech.
  • It was reported that Binance.US and the SEC have reached an agreement to collaborate on a solution that would prevent the freezing of all assets held by the exchange. U.S. District Judge Amy Berman Jackson referred the matter to a magistrate judge to facilitate discussions and work towards a compromise arrangement that ensures the protection of customer funds without requiring the exchange to cease operations. This development aims to find a resolution that satisfies both parties involved.
  • On 17/06/2023, Binance, a global cryptocurrency exchange, has announced its withdrawal from the Netherlands following an unsuccessful attempt to secure a virtual asset service provider (VASP) license. The termination of services is immediate, and new customers from the Netherlands will no longer be able to open accounts on the platform. Existing Dutch customers will have until July 17 to withdraw their assets from Binance, but they will not be able to make any new purchases, trades, or deposits starting from the announcement date.
  • Ripple, the software company behind the cryptocurrency XRP, is making further inroads into Latin America. It has recently entered into a partnership with Colombia’s central bank to explore the potential of central bank digital currency (CBDC) technology. As part of the agreement, Ripple’s CBDC platform will be used by the Central Bank of Colombia and the Ministry for the Information and Communications Technologies (MinTIC) to pilot various use cases aimed at improving the country’s high-value payment system. This collaboration signifies Ripple’s commitment to expanding its presence in the region and promoting advancements in digital currency infrastructure.
  • On 19/06/2023, United States district court Judge Amy Berman Jackson approved an agreement between Binance.US, Binance, and the U.S. Securities and Exchange Commission (SEC), resulting in the dismissal of a previous temporary restraining order (TRO). The TRO aimed to freeze all Binance.US assets. Earlier, on June 14, Judge Jackson expressed her preference for the parties to reach an independent agreement rather than relying on her ruling. Subsequently, the parties reportedly reached an agreement on June 16. In response to the court’s decision, Binance.US took to Twitter, expressing their satisfaction with the outcome. They stated that the SEC’s request for a TRO and asset freeze was not granted, emphasizing that they believed it was unjustified based on both the facts and the law.
  • On 20/06/2023, the parliament of Slovakia passed a vote to amend the nation’s constitution, codifying the right to use cash as a method of payment. The legislation was sponsored by the Sme Rodina party, also known as the “We Are Family” party. It was introduced as a precautionary measure in response to the proposed digital euro. The European Union has been exploring the concept of a central bank digital currency (CBDC) or digital euro for some time. However, analysts conducting research on behalf of the parliament have described the initiative as a “solution looking for a problem.” Despite this, they advised the EU to be prepared to further consider the option in the future. The move by Slovakia to enshrine the right to use cash in its constitution can be seen as a response to concerns over the potential impact of a digital euro on the availability and use of physical currency within the country.
  • Rumors are circulating on Twitter suggesting that Fidelity, the third-largest asset manager, might be considering applying for a spot Bitcoin exchange-traded fund (ETF) and potentially making a bid for Grayscale, a leading crypto asset manager currently facing challenges. These rumors have been shared by various Twitter accounts, including notable crypto influencers such as Scott Melker, Michaël van de Poppe, and Ash Crypto. It’s important to note that rumors on social media platforms should be taken with caution, as they often lack reliable sources and may not be based on verified information. While the rumor is generating attention and discussion within the crypto community, it’s advisable to await official statements or credible reports from Fidelity or other involved parties to confirm or refute these claims.
  • On 21/06/2023, German investment bank Deutsche Bank has reportedly applied for a license with Germany’s financial regulator, BaFin, to provide custody services for cryptocurrencies. A spokesperson for Deutsche Bank confirmed this application in an email statement. David Lynne, the global head of corporate bank at Deutsche Bank, mentioned the bank’s expansion in digital assets and custody business. However, BaFin declined to comment on the matter. The move by Deutsche Bank signals its interest in entering the cryptocurrency market and offering custodial services to clients who wish to hold and manage digital assets.
  • WisdomTree has applied for approval to launch the WisdomTree Bitcoin Trust, an ETF that would provide investors with exposure to the price of bitcoin. The trust plans to value its shares daily based on the CF Bitcoin US Settlement Price, using trade flow data from major bitcoin spot exchanges. This move reflects the growing interest in bitcoin within traditional finance.
  • EDX Markets (EDX), supported by Fidelity Digital Assets, Charles Schwab, and Citadel Securities, has officially launched in the United States. The cryptocurrency exchange has spent the past nine months developing its technology and garnered attention when it was announced in September. Notable traditional finance firms, including Fidelity, Schwab, Paradigm, Sequoia Capital, and Citadel, have invested in EDX, with Citadel being a former employer of Nazarali, one of the key figures behind the exchange.
  • On 22/06/2023, The U.S. congressional committee responsible for drafting regulations on digital assets is scheduled to discuss and potentially advance two proposed laws in the second week of July. House Financial Services Committee Chair, Patrick McHenry, plans to convene a session to debate and modify legislation that would establish a clearer path for digital assets to transition from securities to commodities. This transition would entail reduced reporting and regulatory obligations, as well as other provisions related to market structure.
  • During a hearing on monetary policy, Federal Reserve Chairman Jerome Powell expressed the importance of strong central bank oversight in the regulation of stablecoins. Powell stated that payment stablecoins are considered a form of money, and the central bank holds the ultimate credibility in the currency of advanced economies. He advocated for a robust federal role in regulating stablecoins. Powell also mentioned that the Fed’s staff has been engaging in discussions with lawmakers from both parties regarding crypto legislation. While acknowledging the staying power of the industry, he noted that the market has experienced significant declines since the previous year.
  • On 23/06/2023, The International Monetary Fund (IMF) has restated its stance on the need for cryptocurrency regulation in certain countries but cautioned against implementing a complete ban. In a report on Latin America and the Caribbean, released on June 22, the IMF highlighted the different approaches taken by governments in the region regarding cryptocurrencies and central bank digital currencies (CBDCs). It mentioned El Salvador’s acceptance of Bitcoin as legal tender since September 2021 and the Bahamas’ launch of its own CBDC, the Sand Dollar, in October 2020 as examples of varying approaches to digital currencies.
  • Binance recently launched its trading platform in Kazakhstan after obtaining a permanent license from the AIFC Financial Services Authority (AFSA) in the previous year. Binance CEO Changpeng ‘CZ’ Zhao had visited the President of Kazakhstan, Kassym-Jomart Kemeluly Tokayev, in October of the same year. During the visit, Binance and the Kazakhstani government signed a Memorandum of Understanding (MoU) to collaborate on promoting digital innovation within the country.
  • On 24/06/2023, A company called Volatility Shares Trust has filed a Form 8-A with the United States Securities and Exchange Commission (SEC) to list shares of a leveraged Bitcoin futures exchange-traded fund (ETF). The filing, made on June 23, indicates that the company is preparing to launch an investment product that falls under the SEC’s regulatory oversight. The proposed ETF, named the “Volatility Shares 2x Bitcoin Strategy ETF” with the ticker symbol BITX, aims to provide leveraged exposure to Bitcoin by offering returns corresponding to two times the daily performance of the S&P CME Bitcoin Futures Daily Roll Index.
  • On 28/06/2023, The NEAR Foundation, which supports the development of the NEAR protocol, has announced a partnership with Alibaba Cloud, the computing and storage division of Chinese tech giant Alibaba. The collaboration aims to accelerate the growth of Web3 (decentralized web) in Asia and the Middle East. As part of the partnership, the NEAR Foundation will gain access to Alibaba Cloud’s developer ecosystem, allowing them to attract more developers to build on the NEAR protocol. Additionally, developers who wish to launch new NEAR validators will have the convenience of using Alibaba Cloud’s “plug-and-play” infrastructure as a service.
  • Fidelity Investments, a prominent asset manager, is reportedly preparing to file for a Bitcoin spot-based exchange-traded fund (ETF) in the United States. This news comes alongside similar plans from other major players in the industry, including BlackRock. Financial commentator Tedtalksmacro expressed optimism, stating, “First it happens slowly, then all at once,” in reference to the growing trend of ETF plans within the cryptocurrency market.
  • The Hong Kong Virtual Asset Index was recently published by the rating agency HKVAC, representing a significant development in the cryptocurrency sector. The index includes the top 30 cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH). This news comes in the wake of HSBC’s decision to enable residents of Hong Kong to invest in Bitcoin and Ethereum exchange-traded funds (ETFs) listed on the Hong Kong exchange, further highlighting the growing acceptance and integration of cryptocurrencies in the financial landscape.
  • On 29/06/2023, MicroStrategy revealed its purchase of 12,333 Bitcoin, worth $347 million. This acquisition increased MicroStrategy’s total Bitcoin holdings to 152,333 BTC, valued at $4.52 billion. The average purchase price per Bitcoin was $29,668, which is in line with the previously disclosed average purchase price of $28,136.
  • Nevada’s Financial Institutions Division has taken action to assume control of crypto custodian Prime Trust and freeze its operations, according to an announcement on Tuesday. This development comes shortly after custodian BitGo withdrew its acquisition bid for Prime Trust and follows a cease-and-desist order issued by Nevada, which claimed that Prime Trust was on the brink of insolvency. The request for receivership filed on Tuesday states that Prime Trust owes its clients over $85 million in fiat currency and has approximately $3 million in fiat on hand. Additionally, the company owes $69.5 million in cryptocurrency and holds $68.6 million in crypto assets. The filing also reveals that Prime Trust operates with a $12 million equity deficit.
  • On 30/06/2023, Fidelity Investments, a prominent asset manager, has submitted an application for a spot Bitcoin exchange-traded fund (ETF), as indicated in a filing made by Cboe BZX Exchange with the SEC on June 19. This move by Fidelity follows the recent filing by BlackRock for a spot Bitcoin ETF on June 15, along with similar applications from WisdomTree, Invesco, and Valkyrie in subsequent days. Bloomberg reports that a total of seven applications for a spot Bitcoin ETF have been submitted this year.
  • King Charles granted royal assent to a bill in the U.K., officially making it law. The Financial Services and Markets Bill, now an Act, includes provisions that empower regulators to supervise cryptocurrencies and stablecoins. This move brings crypto assets and stablecoins within the scope of regulation. The bill had already received approval from the upper chamber of Parliament last week. Financial Services Minister Andrew Griffith stated that the Act provides control over the country’s financial services rulebook, allowing for the regulation of crypto assets to ensure their safe adoption in the U.K.
 

This month is quite interesting, not for the stock market or the macro economy, but more on the crypto side.

Starting first with the general and the stock market. The US passed its bill to raise the debt limit, which prevented the default, which has never happened in the history of the US economy. We have seen reports for this month have slowed down in different countries. The FED decided to pause the rate hike this month, however in the meeting, Chairman Jerome Powell did emphasize that they would have another 2 rate hikes till the end of this year. The market was volatile on that day. In Australia, the RBA also raised another 25 basis points, ECB also raised 25 basis points, but in China, the rate was reduced by 10 basis points from 3.65% to 3.55%, which means China’s economy has slowed down significantly and they now tried to stimulate the economy. Overall, inflation is slowing down as expected, but rate hikes are still coming till the end of this year.

For the crypto market, it is wild. SEC is suing both Coinbase and Binance. We are now seeing a wave of attacks from regulators upon the crypto exchanges. And at the same time, we have big boys coming to the crypto space with their Bitcoin Spot ETF submissions to the SEC, for example, BlackRock, and Fidelity... This will be interesting since all the Bitcoin Spot ETFs have been rejected since last year. With BlackRock coming to this space, would SEC pass this Bitcoin Spot ETF? If it passes, other companies would do the same, for example, MicroStrategy. The timing is a bit sus as well since SEC is busy suing both the exchanges, and these big institutions are submitting the Bitcoin Spot ETF, and also there’s a lot of bad news for Binance in different countries. Honestly, I don’t know what to say but someone or a group of people are coordinating together to plan all of this. The timing is really really raising a lot of questions for me. Though this shows that crypto is slowly becoming a part of the financial system and recognized by big institutions. I would believe crypto might be the future, just like how the Internet was invented in the 2000s.

With all the bad news in the first half of this month, I can see my portfolio went down after the FED announcement and SEC sued the crypto exchanges. Surprisingly, the portfolio shot back up again and is now staying at $166,247.42, a significant gain of 5.09%. All stocks have a higher return compared to last month, fluctuating around 1-2%, while the crypto portfolio sees a gain of approximately around 4%. I am impressed how this month was full of bad news for crypto, but with just the announcement from BlackRock that they submitted the Bitcoin Spot ETF to SEC, Bitcoin gained the momentum to go up higher than before, while altcoins were going backward due to SEC classified most of the altcoins as securities. One good thing that I have done this month is to convert any altcoins that I did not need anymore to better options like ADA and ETH. By converting the altcoins, I also triggered CGT events on these coins and realized approximately A$10,000 this year. It’s sad to realize these losses but I could claim these losses and carry forward to next year if I had any capital gains in the future. A majority of my portfolio is now in Bitcoin after derisking all the altcoins, which is now 67% of my crypto portfolio with ETH at 7%, and ADA at 5%. I am happy with this new allocation, and I do not have to worry much about all the altcoins that I had on the exchanges before, most of them should be on my cold wallet atm (though Ledger lost a bit of my trust because of the recent firmware update, though still a better option than leaving the coins on the exchange). However, the crypto portfolio is still at 32% of all my portfolio, which is still far away from the 20% goal for the crypto allocation. For stocks, I am happy as it is atm, do not need to change anything and stick to the plan. I have seen lots of posts on Reddit lately about leaving the VDHG fund for a different one. I thought about it and would not consider doing so because I already had a plan at the beginning for VDHG and I should follow my own conviction instead of listening to others.

I am quite happy with the results in the last couple of months, and still cannot believe that my portfolio is now at $166,247.42, on the way to reaching the $200,000 target. I have been accumulating since last year and till the end of this financial year, and now the result is quite good. It was nerve-wracking and boring, but I think it should be. Last year June 2022, my portfolio was only around $82,562.89. It has doubled since then in just a year. Thinking back on all those times, lots of things happened, bad news, good news, shocking news, bankruptcies, and so on. I took the opportunity to accumulate instead of saving for the house, even though many people were telling me that I should have bought a house last year, I still think I make the right decision to invest more in my stock and crypto portfolio (and also I was focusing on my career). House might be expensive now but I should not worry that much if I plan to stay for 5-10 years. My portfolio is growing bigger every day, and I think I could spare the next financial year for my next investment – a property. I have been thinking about it since the start of 2023, having my own place, setting up my workstation, and doing DIY projects like my senior. Let’s hope I can get a property in the next couple of months and start a new journey.

Some of the articles I use for the information above:

Passive Income

This month has produced about 15.592 ADA. BAT reward is not available anymore due to my account got flagged and I would not get anymore reward in the future. The staking reward for AXS for this month is about 0.804 AXS. Staking for IMPACT is 2713.175 PACT.

To sum up:

  • ADA Reward –  15.592 ADA.
  • AXS Staking –  0.804 AXS.
  • Impact Staking – 2713.175 PACT
  • Dividend – TBU

What I have learnt

Keyword for this month – Stress

It’s been a stressful month with all the freelance work, and the property. However, the good thing is that I learned a lot this month. I also lost more weight, more than the goal of 75kgs for this month. Even though I do not work this month, it’s actually a good thing since my income is really high for this financial year, which affects my process of applying for the Home Buyer Concession Scheme, and I take action to do the after-tax super contribution to reduce my taxable income, as well as converting all the altcoins that I do not need since the last bull market. Everything turns out to be great, more than I could have expected how this month would go down.

I also learned to deal with the home-buying process, which I am always afraid of. I still feel the nerve-wracking inside me but I always remind myself that it’s just a temporary thing, and I should not worry too much about the future, considering I have a good understanding of my finance, though I should have better prepared myself in certain situations, like the tax thing, I was really lucky because the timing was tight.

Overall, it’s a well-balanced month :). It’s up and down, and I am kinda used to it at this point. There are still things I need to achieve in the upcoming months, and here are the goals:

  • Continue with my job search – do this after I got my loan approval from the bank. I do not need to stay in the same workplace, just temporarily from now till the end of my contract in September, then look for a new job.
  • Enhancing and leading the Phase 3 project for the company I am freelancing – good thing is with the system , I will be the person to take care of this, which means my skill is needed for the job, which also means long-term income.
  • Reaching 73kgs – my lowest this month was 73.9kgs, let’s aim for 73 flat.
  • Finalizing and finishing the exchange of the contract for the house – getting this done will be a huge thing for me, get it off my shoulders.
  • Finish my driving lessons – if I have started my house-buying process, I should also do this as well.

Go big or go home for a new financial year.

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