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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 what appears to be an economic slowdown and NVIDIA’s recent sell-off, the price of Bitcoin has reduced over the week – reaching as low as US$56,000. Despite analysts forecasting a brief boost from potential rate cuts in the upcoming FOMC meeting, the downward trend emerged from the US ISM manufacturing PMI figure which now sits below 50, indicating a continued contraction of activity in August. This revived growth fears, weighing over risk assets, including digital assets. Subsequently, the US-based. spot Bitcoin ETFs suffered the largest daily outflow in four months, registering a cumulative net outflow of US$287.8 million – according to data tracked by Farside Investors. According to QCP Capital, Ethereum continues to significantly underperform due in part to the deleveraging effect by the Bank of Japan’s interest rate hike. This was only further exacerbated by Jump Crypto – the crypto division of Jump Trading – transferring large amounts of ETH to exchanges on the same day. This has negatively impacted interest in both the US and Hong Kong based spot Ethereum ETFs, with trading volumes dropping to just 15% of the levels seen during their debut week in late July, according to SoSoValue.
Switzerland’s fourth-largest bank Zürcher Kantonalbank (ZKB) offers retail customers exposure to Bitcoin and Ethereum. In line with Switzerland’s crypto-friendly stance, many financial institutions have continued to roll out crypto offerings to customers. In collaboration with Crypto Finance, a Deutsche Börse-owned digital assets broker, customers of ZKB will have the ability to buy, sell and hold BTC and ETH through the cantonal bank’s existing Mobile App, eBanking, and other established channels. This service extends the offer to other Swiss banks to trade and custody cryptocurrencies, with the Head of Institutional Clients and Multinationals at ZKB, Alexandra Scriba stating “customers and third-party banks do not need to own their own wallet… and not worry about storing their own private keys”. ZKB has maintained exposure to digital assets since 2021, issuing the world’s first digital bond on Switzerland’s SIX Digital Exchange (SDX).
Citi survey finds fewer institutions want a Central Bank Digital Currency (CBDC) for digital asset settlement. After surveying close to 500 institutions, only 15% of participants expressed the need for a CBDC settlement, a significant drop from 52% in 2023. Almost two-thirds of the institutions who participated in the survey are resorting for more tactical options to bridge the gap with digital assets, including but not limited to: non-bank stablecoins, tokenised deposits and tokenised money market funds.
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.
