JP Morgan says Korean leveraged ETF unwinding complete, hedge funds 90% deleveraged

JP Morgan says Korean leveraged ETF unwinding complete, hedge funds 90% deleveraged

JP Morgan reports that the sell-off from Korean leveraged ETFs is over and hedge funds have mostly unwound positions, potentially easing market pressure.

What happened

The Federal Reserve maintained its benchmark interest rate unchanged. In his opening remarks, Fed official Walsh reiterated the central bank's 2% inflation target and noted that there is no 'soft target' for inflation.

Why it matters for the market

Binance.US announced it will apply for a license from the CFTC next month to launch a prediction market. Separately, Hawkins County in Tennessee passed a ban on cryptocurrency mining facilities and data center operations.

Meta reported record quarterly revenue, but its stock price fell as rising AI-related costs weighed on investor sentiment.

JP Morgan stated that the unwinding process for Korean leveraged ETFs has been completed, and hedge funds have deleveraged approximately 90%, reducing potential market pressure.

Ethereum Institutional completed its initial fundraising, with BitMine and SharpLink among the lead investors. In the second quarter, the crypto industry saw $12.86 billion in financing and M&A, with debt financing becoming the second-largest funding source.

What traders should watch

Metaplanet launched its first Bitbonds offering in Japan, carrying a 4% annual interest rate, as the company continues to borrow to purchase Bitcoin. Bernstein adjusted its price target for Circle from $190 to $140, asserting that the threat from the Open USD stablecoin is likely to diminish.

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