TMS Ep610: Crypto fillip, snowless winter, PSU stocks, Bitcoin Spot ETF

India blocked access to nine foreign cryptocurrency exchanges on 12th of January. The government believed that these offshore platforms were not complying with the country’s anti-money laundering law. And investors were also using them to circumvent TDS costs. Some of them -- like Binance -- were quite popular among domestic investors. But now, crypto investors are reportedly flocking to domestic exchanges. There is a surge in registration. So will this crackdown on offshore exchanges help desi crypto platforms? 

Clearly, there are signs of thaw in the ongoing crypto winter. It started with the collapse of the famous foreign exchange FTX. But for many, winter means a season of earnings. The longer it is, the better. But, even as north India is reeling under a prolonged spell of winter, its famous skiing resorts are without snow. Locals in Uttarakhand’s Auli and Kashmir’s Gulmarg -- whose livelihood depends on tourists -- are looking towards the sky for some divine help, as tourists are cancelling bookings. But why are hills in these regions facing a snowless winter? 

After the hills, let us now turn our gaze to financial markets. The government’s ‘Make in India’ push and indigenisation in the defence space opened floodgates for order flows for most PSUs in 2023. Nearly 30% of the stocks doubled investors’ wealth last year, while 27 stocks hit record highs. The rally has extended thus far in 2024 with the Nifty PSE index touching its all-time high level on January 16. But the rally has taken valuation multiples to multi-year highs. So, will the pack be able to defend its gains? Or is a sharp correction waiting around the corner? 

After stocks, let us now see what is happening in the world of cryptocurrencies. The US Securities and Exchange Commission last week approved applications for exchange-traded funds or ETF, that are primarily based on bitcoin. Supporters hope it will attract new investors to the token and boost its price in the long term. But what is the Bitcoin Spot ETF? Find out about it in this episode of the podcast.