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DigitalX Weekly Crypto Update: Market Trends and Analysis
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DigitalX Weekly Crypto Update: Market Trends and Analysis
Market Commentary
Following last week’s strong price action from Bitcoin, the price has continued to remain relatively stable after regaining the US $68,000 mark driven by positive U.S. election predictions and how it might impact the digital asset space. Despite selling pressures as a result of the Mt. Gox distributions, Joe Biden’s announcement to drop out of the 2024 US presidential race has recently impacted the likelihood of a crypto-friendly administration entering the White House. However, despite calls for unity from advocacy groups such as the Chamber of Digital Commerce, the Democratic Party continues to treat the digital asset industry in an unfavourable manner, with recently endorsed Democratic candidate Kamala Harris refusing to speak at the upcoming Bitcoin conference in Nashville, Tennessee. This week, BlackRock’s IBIT Bitcoin ETF drew US $526M in net inflows – the highest single-day inflow since March. The US-based Bitcoin ETFs did however break a 12-day inflow streak on Tuesday as investors withdrew net US $78 million, data from SoSoValue shows.
The US-based spot Ethereum ETFs received approval for listing this week and began trading on Tuesday. The U.S. Securities and Exchange Commission approved registration forms from 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck and Invesco. According to Bloomberg, investors traded over US $1 billion worth of shares on the first day of their availability – roughly 20% of the trading volume that the spot Bitcoin ETFs experienced on their launch back in January. Of this amount, there was a net inflow of US $106.7 million, according to a data from SoSoValue.
Earlier this week, BlackRock’s BUIDL product crossed US $500 million – a historic milestone never before reached by the tokenised money market fund, with a current total market cap of US $1.8 billion. Securitize CEO Carlos Domingo thinks this trend will continue to dominate, stating that the tokenised treasury market “is definitely growing way faster than stablecoins”. Domingo also thinks that BUIDL will potentially hit its next US $500 million milestone in just a few months, as “every single asset manager out there is thinking about how they can participate”, he told Blockworks. According to rwa.xyz, Franklin’s Templeton’s fund, FOBXX, which was launched in April of last year, has topped US $400 million – a 16% increase over the past 30 days.
CEO Comment
The Gap between Bitcoin and the S&P 500 now sits at 9%, continuing to narrow from last week’s 12%.
As for the shift list, which we define as the major events and announcements facilitating the broader market’s transition to Web3 financial rails or the internet of value, the top shifts for this week include:
Our Top “alts shifts” for this week, featuring shifts in our altcoin universe that drive our thematic approach, saw the second gap, or the broader digital asset market, drop to circa 56%. This is the TIME for this trade as the bullish set-up for BTC looks more promising, this gap could start to close quickly. The shift to close the gap can happen very quickly and will correlate to the next up move in BTC – the building is happening.
What are our favourite thematics for 2024? We continue to like any infrastructure plays of the shift from Web2 to Web3 financial rails and any plays in the real-world asset tokenisation infrastructure, data validation and decentralised storage, as well as scale-up technologies such as ZKrollups. We are closely following all the ”de’s” – DeFi, DePin, DeSoc – (want to know what that means? – message us).
Lisa Wade, CEO DigitalX
CRYPTO TOP 20 7 DAY PRICE CHANGE
*All figures throughout are in USD unless otherwise specified
Market Updates
The Shift List
Tinkering with Tokenisation
Macro and Regulatory Environment
About DigitalX
DigitalX Ltd (ASX:DCC) is a leading ASX-Listed Bitcoin and digital asset funds management business. The Company has a 9 year track record mining Bitcoin, blockchain and smart contract development. DigitalX Asset Management is the investment manager of digital asset investment products that provide qualified investors with highly secure and streamlined access to digital asset exposure. To learn more contact the team at [email protected] or visit our website https://digitalx.fund/.
Disclaimer:
The information in this document is prepared by DigitalX Asset Management Pty Ltd (ACN 629 653 121) (DigitalX).
DigitalX is a corporate authorised representative (CAR) (CAR No. 1270748) of Boutique Capital Pty Ltd (AFSL 508011) and True Oak Investments Ltd (AFSL 238184). Boutique Capital is the Trustee of the DigitalX Fund and the DigitalX Bitcoin Fund. True Oak Investments is the Trustee of the DigitalX Asset Reference Token Fund (DxART). All three funds are open to wholesale investors only.
DigitalX is also a corporate authorised representative (CAR) of K2 Asset Management Ltd (ABN 95 085 445 094 AFSL 244 393) (K2), a wholly owned subsidiary of K2 Asset Management Holdings Ltd (ABN 59 124 636 782). K2 is the Responsible Entity and Issuer of the DigitalX Bitcoin ETF (ASX: BTXX) (ARSN 650 945 216) which is open to retail investors. Offers to invest in the DigitalX Bitcoin ETF (BTXX) will only be made in the product disclosure statement (PDS) and this material is not intended to substitute the PDS which outlines the risks involved and other relevant information. You should also consider the Target Market Determination (TMD) issued when ascertaining if the product is appropriate for your needs. A PDS & TMD for BTXX can be obtained at https://www.digitalx.com/funds/bitcoin-etf/. You should consider the PDS & TMD before making a decision to acquire an interest in BTXX.
The information herein is presented in summary form and is therefore subject to qualification and further explanation. The information in this document is not intended to be relied upon as advice to investors or potential investors and has been prepared without taking into account personal investment objectives, financial circumstances or particular needs. Recipients of this document are advised to consult their own professional advisers about legal, tax, financial or other matters relevant to the suitability of this information. Past performance is not indicative of future performance.
