This report has been designed to help you see at a glance which blockchain economic categories have been driving recent crypto market performance, get a sense of where institutional investors are allocating capital earmarked for digital assets, and understand how crypto fits into, impacts and is influenced by the broader market picture.
Hawkish Fed kills early price gains
Our portfolio indices erased their early December gains after the Federal Reserve doubled down on their fight to tame inflationary pressures.
Blue-chip tokens remained relatively resilient with our Ultra Cap 5 Index finishing the month just 1.3% lower and our Diversified Large Cap Index (-7.9%) outperforming the remaining cohort.
The CF Digital Culture Index finished the month as the worst performer (falling over 17%) and edging out last month’s laggard, the CF Smart Contract Platforms Index (-16.3%).
Monthly Index Performance
Major Crypto-Pairs (USD)
The two mega-cap tokens, Bitcoin and Ether, performed relative defensively, falling only 2.3% and 6.0% (respectively).
Doge finished the month as the worst performer, falling over 33% as the popular meme coin continued to pair its post-Twitter takeover rally.
Trailing Risk-Adjusted Returns
When compared to traditional asset classes, Bitcoin and Ether continue to provide the best risk-adjusted performance over a longer-time horizon.
Currency of Flows
Fund flows by asset-type remained broadly negative, falling -$96m with most of the decrease concentrated in ETH funds.
From a regional perspective, Europe and North America saw almost $100M in fund outflows as the Asia Pacific region edged a slight gain (+500K).
Futures Positioning and Open Interest
Bitcoin futures positioning remained slightly bearish in December, with net positioning rising from -456 to -346 contracts.
Open interest trends for Bitcoin and ETH futures was mixed, with Bitcoin futures edging slightly lower as ETH continued to climb higher.
On-chain updates: Total Value Locked (TVL) in DeFi protocols
Total Valued Locked (TVL) in DeFi Protocols edged lower in the month of December (falling from $60bn to $57bn). This proxy for gauging the size of DeFi has stabilized in the $55bn to $65bn range since the FTX / Alameda collapse in November.
NFT Transactions and Volumes
Activity for NFTs rebounded in December, with both total transaction increasing over 20% and prices (or volumes) rising almost 30%.
The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell any of the underlying instruments cited including but not limited to cryptoassets, financial instruments or any instruments that reference any index provided by CF Benchmarks Ltd. This communication is not intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. Please contact your financial adviser or professional before making an investment decision.
Subscribe to CF Benchmarks
Get the latest posts delivered right to your inbox
This website is provided by CF Benchmarks Ltd. CF Benchmarks Ltd is registered in England with registered number 11654816 and registered office at 6th Floor One London Wall, London, United Kingdom, EC2Y 5EB. CF Benchmarks is authorised and regulated by the UK Financial Conduct Authority as a registered Benchmark Administrator (FRN 847100) under the UK benchmark regulation. No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of CF Benchmarks Ltd. Use and distribution of the CF Benchmarks data requires a license from CF Benchmarks or its authorised licensing agents.
All information is provided for information purposes only. All information and data contained on this website is obtained by CF Benchmarks, from sources believed by it to be accurate and reliable. Such information and data is provided "as is" without warranty of any kind. CF Benchmarks, nor its directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or implied, either as to the accuracy, timeliness, completeness or merchantability of any information or of results to be obtained from the use of the CF Benchmarks indices or the fitness or suitability of the same indices for any particular purpose to which they might be put. Any representation of historical data accessible through CF Benchmarks indices is provided for information purposes only and is not a reliable indicator of future performance. No responsibility or liability can be accepted by CF Benchmarks nor their respective directors, officers, employees, partners or licensors for any loss or damage in whole or in part caused by, resulting from, or relating to any error (negligent or otherwise) or other circumstance involved in procuring, collecting, compiling, interpreting, analysing, editing, transcribing, transmitting, communicating or delivering any such information or data or from use of this website or links to this website. CF Benchmarks and its respective directors, officers, employees, partners or licensors do not provide investment advice and nothing accessible through CF Benchmarks, should be taken as constituting financial or investment advice or a financial promotion. Charts and graphs are provided for illustrative purposes only. Index returns shown may not represent the results of the actual trading of any assets.
CF Benchmarks is a member of the Crypto Facilities group of companies which is in turn a member of the Payward, Inc. group of companies. Payward, Inc. is the owner and operator of the Kraken Exchange, a venue that facilitates the trading of cryptocurrencies. The Kraken Exchange is a source of input data for CF Benchmarks indices.