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DigitalX Weekly Crypto Update: Market Trends and Analysis
You are Reading
DigitalX Weekly Crypto Update: Market Trends and Analysis
Market Commentary
The price of Bitcoin has reduced slightly from last week’s US$68,000 high, as it now sits below US$65,000 following looming geopolitical risks and government-linked selling pressures. At the beginning of the week, the digital asset market began to rally with Bitcoin dominance hitting its highest level since April 2021 following both presidential candidates Donald Trump’s and Robert F Kennedy Jr’s bullish commitments to Bitcoin during the Nashville Bitcoin Convention. Former President Trump has pledged to remove SEC Chair Gary Gensler as well as halt the US government’s sell-off of all Bitcoin holdings, with the intention of creating a “strategic Bitcoin reserve”, if elected in November. During the week, a wallet labelled as belonging to the U.S. government transferred US$2 billion worth of Bitcoin to an unidentified wallet, according to Arkham Intelligence data. In addition to further selling pressure from Mt. Gox distributions and rising tensions in the Middle East, the US-based spot Bitcoin ETFs experienced US$18 million in net outflows, breaking a four-day streak that saw inflows as high as US$124 million, as SoSoValue data shows. Further, the U.S. based Ethereum ETFs have had a sluggish debut, witnessing cumulative net outflows of over US$400 million, only recently recording inflows after a four-day streak of outflows.
Grayscale is diversifying its spot Bitcoin ETF offering by launching a “spin-off” of its Grayscale Bitcoin Trust ETF (GBTC). According to Grayscale’s head of ETFs, David LaValle, the purpose of the Grayscale Bitcoin Mini Trust is to help further lower the barrier to accessing Bitcoin in an SEC-regulated investment vehicle. The company will contribute 10% of the spot Bitcoin held by GBTC to its new ETF, set for trading on the New York Stock Exchange (NYSE) Arca. The Mini Trust will charge fees of 0.15% compared to the 1.5% management fee imposed by GBTC, meaning that a fraction of management fees are charged to existing shareholders.
Slovenia has issued the first digital sovereign bond in the European Union, issued and placed by BNP Paribas using their Neobonds platform. The bond issue is one of three interoperability solutions with European Central Bank’s (ECB) wholesale central bank money settlement experimentation program, which recently announced the launch of its second phase in June. Australia carried out a simulated digital bond settlement on a secondary market in May during the first part of the ECB experimentation. This is reflective of the digital bond issues gradually joining the financial mainstream. For instance, The World Bank issued the first blockchain bond in 2019, with the People’s Bank of China issuing a bond on-chain later that same year.
CEO Comment
The Gap between Bitcoin and the S&P 500 currently amounts to 11%, a slight increase from last week’s 9%.
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.
