Good morning. The VIX, aka the market’s “fear gauge,” was so low in 2017 it hit record boredom levels, some traders joked it flatlined.

Lesson? Even fear needs a vacation… until it doesn’t.

-Shaun A, Pat Lewis, Jonathan Kibbler

MARKETS

Prices supplied by Google Finance as of 4:00am ET - stock prices as of close. Here is what the prices mean.

TRADER INSIGHTS

The greenback's swagger is starting to slip, and China’s making moves.

As the U.S. dollar struggles with a confidence crisis, Beijing is accelerating its push to give the yuan a bigger seat at the global table. From rolling out more futures access for foreign investors to setting up a digital yuan hub in Shanghai, China is capitalizing on the moment, and taking aim at the dollar's dominance.

The U.S. dollar index is down over 9% this year, while the offshore yuan has strengthened more than 2%. With American policy uncertainty under President Trump rattling markets, global investors are looking elsewhere. Cue Beijing, which is now talking openly about reducing the world’s reliance on any single currency.

PBOC Governor Pan Gongsheng laid it out at the Lujiazui Forum: China wants to "weaken excessive reliance" on sovereign currencies, a.k.a. the dollar.

China’s exchanges are letting foreign investors trade 16 new futures and options contracts, from natural rubber to tin. That’s not just about giving traders more toys. It’s about making the yuan more relevant in global commodity pricing. The more contracts in yuan, the more the world has to use it.

Even bigger? Foreign currencies could soon be used as collateral for yuan-settled trades. That’s a major incentive for global players who want in, but don’t want to fully park their cash in RMB just yet.

It’s taken years, but Wall Street firms like Morgan Stanley are finally getting broader access to Chinese markets. Futures, ETFs, bond markets, it’s happening. Beijing’s been slow and cautious, but this isn’t 2015 anymore.

Still, concerns about rule of law and capital controls are holding back a full pivot. China’s not a perfect substitute for the dollar-dominated system. But if enough investors are frustrated with U.S. volatility? Even a flawed alternative might look appealing.

Behind the scenes, Chinese banks are doing more cross-border lending in yuan, not dollars. Trade deals are increasingly settled in CNY. A $100 billion fund in Hong Kong is pushing yuan-based financing. And China’s interbank payment system is expanding its reach.

The result? Yuan-denominated activity is growing, especially in energy, commodities, and e-commerce. For exporters and smaller firms selling overseas, using yuan is becoming easier (and sometimes cheaper).

Asia’s quietly diversifying away from the dollar. Political risk, inflation fears, and currency volatility are driving that move. U.S. policy under Trump isn’t helping either.

China’s not stealing the dollar’s crown anytime soon, it still only accounts for 2.89% of global payments, way behind the dollar’s 48%. But it’s climbing. And in this game, every basis point counts.

Beijing is playing the long game. While the dollar slips under the weight of geopolitical drama and policy chaos, China’s opening more doors, offering more incentives, and pushing the yuan onto the world stage.

For us traders? Better be watching the flows. More yuan-settled trades and futures access could shift capital around Asia and commodities. If confidence in the dollar keeps eroding, the RMB’s relevance only grows.

And if you're still betting on the dollar as the only game in town, it might be time to hedge that view.

-Shaun A

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CRYPTO

Midnight Network, the privacy-centric blockchain built on Cardano, is set to drop its NIGHT tokens to a wide range of crypto users, including those holding Bitcoin, Ethereum, Cardano, XRP and several other well-known assets.

This airdrop will be a key part of the Midnight Network's official launch, with millions of potential claimants eligible to receive the new token.

For those in the back wondering, what actually is an airdrop? Let me explain!

An airdrop is a method of distributing free tokens or coins to a large number of users, typically as part of the launch of a new cryptocurrency or blockchain project. The goal of an airdrop is to raise awareness about a new project, encourage adoption, and reward users who are active in the crypto community. It’s a way to get people involved without them needing to buy in initially. Airdrops can also serve as a form of marketing, helping the project generate buzz and excitement. They usually happen in phases and are often targeted at users who already hold certain assets in their wallets, such as Bitcoin or Ethereum.

In Midnight Network’s case, the airdrop will involve the distribution of the NIGHT token, which will be available to those holding at least $100 worth of qualifying assets as of June 11, 2025. Eligible assets include Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Solana (SOL), and others, which means that anyone who is already active in the crypto space could potentially claim their share of the airdrop.

Ok, now as far as Midnight goes, the network's approach to tokenomics is refreshingly different. Unlike traditional models that often concentrate token distribution among insiders or early investors, Midnight plans to release up to 100% of its NIGHT token supply during its first distribution phase. Dubbed the “Glacier Drop,” this process will provide a fair and broad opportunity for crypto users to get involved, giving out tokens to those holding at least $100 worth of assets like Bitcoin, Ethereum, Solana, and others. The snapshot for eligibility was taken on June 11, 2025, meaning anyone holding qualifying assets at that point can claim their share of NIGHT tokens.

However, it’s important to note that the tokens won’t be fully tradable straight away. Instead, they’ll be “frozen” initially, with users able to claim 25% of their tokens every 90 days over the course of a year, starting from when they claim them. The aim of this gradual release is to ensure the stability and fair distribution of the tokens over time, avoiding any sudden market impact.

While the Glacier Drop phase will see tokens distributed, the process doesn’t end there. The Midnight Network also plans to run a second phase called the “Scavenger Mine.” This phase will allow users to earn additional NIGHT tokens by contributing computational power to the network. Essentially, if you’ve got the ability to provide some computing resources, you’ll be able to earn your share of the token supply based on the amount of power you contribute.

If you happen to miss out on the initial airdrop, don’t worry. Midnight Network is also introducing a "Lost-and-Found" phase, where users who missed the first round of the Glacier Drop can still claim any remaining tokens. After four years, any unclaimed tokens will be moved into the network’s on-chain treasury to support further development and growth.

As a privacy-focused blockchain, Midnight is built to safeguard user data. The network uses zero-knowledge proofs to protect wallet and transaction details, allowing for secure and selective data disclosure when necessary. Midnight is currently live on its testnet, with the mainnet launch expected within three months of the Glacier Drop. Along with the NIGHT token, the network will also utilise a second token, DUST, for transaction purposes.

With the Midnight Network’s emphasis on privacy and decentralized token distribution, this airdrop is one to watch for anyone looking to get involved in the crypto space. Whether you’re a seasoned investor or a newcomer, this event offers an interesting opportunity to gain exposure to a project that aims to reshape how data privacy is handled on the blockchain.

-Pat Lewis

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ANSWER

Answer: ETF (Exchange-Traded Fund)