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digital asset
April 26, 2024
8 min read

DigitalX Weekly Crypto Update: Market Trends and Analysis

19-26 April 2024

This week's latest trends and insights in the digital asset market from our asset management team.

Market Commentary

The widely anticipated Bitcoin halving occurred on 19 April 2024, with the US-based spot Bitcoin ETF’s recording a net positive inflow prior to the day of the halving. The positive inflow into the ETFs reversed a five day streak of consecutive outflows and has remained positive to date. Hunter Horsley, CEO of Bitwise, recently predicted that wealth management firms would increase their holdings of spot Bitcoin ETFs, noting that major financial entities were discreetly conducting thorough assessments of the Bitcoin market.

The U.S. Securities and Exchange Commission (SEC) delayed its timeline of approval for two of the spot Ethereum ETFs proposed by Grayscale and Franklin Templeton, to June 2024. The current market consensus indicates a low probability of SEC approval for the spot Ethereum ETF applications next month. Nevertheless, most analysts remain optimistic about the eventual approval of spot Ethereum ETFs over the long term.

Crypto exchange Woo X, in partnership with London-based institutional tokenisation platform OpenTrade, launched an RWA product for retail investors called RWA Earn Vaults. It is reported as the first time a crypto exchange has offered retail customers exposure to tokenised U.S. Treasury bills. 

Venezuela’s state-run oil company, PDVSA, plans to increase the use of digital currencies in its crude and fuel exports to bypass U.S. sanctions. However, USDT-issuer Tether says it will freeze addresses linked to sanctioned entities as the company respects the OFAC SDN list and is committed to working to ensure sanction addresses are frozen promptly.

CEO Comment

The Gap between Bitcoin and the S&P 500 has continued to shrink from last week’s 13%, now sitting at 6%. We expect this to close now that the Halving has occurred and Bitcoin reverts to its strong supply and demand fundamentals. I am writing this live from Money2020 where real world asset tokenisation was a hot topic. It was also noticeable that there is a clash of worlds between traditional and fintech payment players and crypto rails – this shift is generational – and it won’t happen overnight.

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:

  1. Big Four’ accounting firm EY to use Polygon PoS for business contracts is a bit of a game changer. Smart contracts have the ability to converse with one another and this is a very small step away from being able to execute atomic settlements across there contracts.
  2. BlackRock now seems to be openly stating that they will tokenise trillions of dollars of assets. We think they’ll expand to multi-chain, which is good for the industry as a whole – HERE is a great thought leadership piece.

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, remain flat at circa 41%. I want to highlight that this is a big opportunity, as mentioned we see this as a selective opportunity to identify and grow our alternatives portfolio via our “alThematics” work. The gaps themselves are proving to be a risk on, risk off proxy and hugely high Beta – volatility is a certainty and an opportunity – the building is happening no matter what.

  1. We like Chainlink for real world asset tokenisation exposure, as they are literally an essential link in the chain.

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

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:

DigitalX Asset Management Pty Ltd is a corporate authorised representative (CAR) of Boutique Capital Pty Ltd (AFSL 508011), and True Oak Investments Ltd (AFSL 238184). To the extent to which this document contains advice it is general advice only and has been prepared by the CAR for individuals identified as wholesale investors for the purposes of providing a financial product or financial service. 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.

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