Gemini Markets: Winklevoss Brothers Propose ZEC ETF

Welcome to Gemini Markets, your weekly read on crypto, stocks and equities, and prediction markets, all in one super app. This is the newsletter that will help inform you about what’s driving crypto and stock prices, tradfi market trends, and prediction market trends.

📈 Crypto Markets Overview

Winklevoss brothers propose ZEC ETF: Winklevoss Asset Services has filed a preliminary S-1 with the SEC to list a spot Zcash ETF. Trading on the Nasdaq under the symbol “WINK,” the ETF would directly hold Zcash and track the fast-growing privacy token’s price movements. Gemini Trust Company will serve as the custodian and charge a 0.25% sponsorship fee, with Winklevoss Capital Fund offering a non-binding $100 million anchor investment.

The launch would mark a full-circle moment for Gemini founders Cameron and Tyler Winklevoss. The pair originally filed for a spot bitcoin ETF in 2013, becoming the first in the crypto industry to float the idea before those ETFs later became mainstream. In recent years, both have become strong proponents of Zcash, with Gemini becoming the first licensed exchange to offer trading and custody services. Winklevoss Capital was also an early backer of Cypherpunk Technologies, a Zcash treasury and mining company.

Crypto market retreats after bitcoin nearly hits $87,000: Early in the week, investors were eyeing bitcoin’s return to the $90,000 threshold. But a modest retreat began Tuesday and continued as approximately $550 million in leveraged positions were liquidated, according to CoinGlass data. The price of bitcoin has since dropped to around $81,000 by mid-day Thursday, with other top cryptocurrencies also trending lower.

The pullback came as tradfi markets also showed signs of cooling Wednesday after the Nasdaq hit a fresh high earlier in the week. Possible reasons for the nervousness: the FOMC released meeting minutes indicating broad support for one more rate hike before the end of the year. Iran also resumed strikes in the Strait of Hormuz, sending the price of Brent crude oil back over $100 per barrel. And the 10-year Treasury yield again surpassed 5.3%, marking a 24-year high, before retreating.

Last month, Gemini launched Morning Motion, a live recorded podcast hosted by Austin Oakes and Jeremy Marino that covers financial markets, emerging technology, and whatever else has the internet paying attention. Expect fresh takes, conversations with traders, builders, and creators, and a few tangents worth sticking around for.

The hosts recently sat down with Bloomberg Intelligence researcher James Seyffart to talk crypto ETFs, the US economy, and much more.

Listen to the latest episodes on Spotify or Apple Podcasts.

📊 Stocks & Equities

Broadcom, Oracle, SpaceX eye jumbo financing deals for AI chips: Broadcom has reportedly engaged in discussions with Apollo Global Management and Blackstone for a financing package exceeding $50 billion to help build out OpenAI’s custom AI chip, which the two companies are co-developing. Separately, SpaceX has held discussions for a $40 billion package to procure Nvidia chips, and Oracle has also engaged with Apollo and Goldman Sachs for their own separate financing package for a large purchase of AI chips.

Skydance shares drop following merger: The price of Skydance shares fell almost 7% on Wednesday, a day after the new media conglomerate began trading on the New York Stock Exchange. The entity was created via the $110 billion merger between Warner Bros. and Paramount, creating a film and television behemoth under co-CEOs David Ellison and Ynon Kreiz that includes the two major film studios, CNN, CBS, and HBO. But analysts reportedly have doubts that the new entity can become a profitable, growing media conglomerate given the economic challenges the industry faces.

🔮 Prediction Markets

Dodgers remain favorites to three-peat: The Los Angeles Dodgers defeated the Atlanta Braves on Wednesday night in Game 4 of the NLDS, pushing the juggernaut to yet another NLCS despite some uncharacteristic struggles from star Shohei Ohtani. Even so, traders remain convinced the defending champions will win another World Series, pricing in a 46% chance of LA pulling off the rare three-peat. They will face the Milwaukee Brewers (27%) in the National League Championship Series. Trade the World Series race.

Talarico leads Paxton in the Texas Senate race: Could a Democrat actually win in Texas? With the midterms about a month away, traders give Democrat James Talarico a 66% chance to win the open seat in his race against Republican Ken Paxton. But Talarico was recently pulled off the campaign trail while dealing with the flu, potentially giving the scandal-plagued Paxton a chance to get out in front of voters to make his case. Trade the race here.

Traders unconvinced bitcoin is ready for short-term rally: The mid-week crypto retreat took some wind out of bullish bitcoin traders. As of mid-day, traders on Gemini Predictions only forecasted a 9% chance the top cryptocurrency could retake the $84,000 threshold by end of the week. Trade the weekly bitcoin price here.

Onward and Upward,
Team Gemini

^*This material is for informational purposes only and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of Gemini. Gemini, its affiliates and its employees do not make any representation or warranty, expressed or implied, as to accuracy or completeness of the information or any other information transmitted or made available. Buying, selling, and trading cryptocurrency involves risks, including the risk of losing all of the invested amount. Recipients should consult their advisors before making any investment decision. Any use, review, retransmission, distribution, or reproduction of these materials, in whole or in part, is strictly prohibited in any form without the express written approval of Gemini.