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digital asset
June 28, 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

Bitcoin’s price has recovered after dipping below US$60,000 on 25 June, driven by supply shocks from various sources. On Monday, the defunct Bitcoin exchange Mt. Gox announced plans to distribute around US$9 billion worth of Bitcoin and Bitcoin cash repayments starting in July. On Tuesday, bitcoin addresses labelled by the German government began transferring bitcoin to crypto exchanges, with approximately $150 million worth of seized Bitcoin moved so far. The German government currently holds 45,609 BTC, valued at about US$2.8 billion, making it one of the largest nation-state holders of Bitcoin, behind the U.S., China, and the UK, according to Bitcoin Treasuries. On Thursday, wallets believed to be linked to the U.S. government moved 3,940 in Bitcoin worth US$241 million to Coinbase, suggesting an intent to sell.

The US-based spot Bitcoin ETF’s recorded inflows of US$31 million on 25 June and US$22 million on 26 June, after seven consecutive days of outflows. Since their debut in January, spot Bitcoin ETFs have attracted US$14.44 billion in cumulative net inflows. We anticipate increased volatility and trading volume in the Bitcoin options market at the end of the week as we approach Friday’s large quarterly expiry, with contracts for index futures, index options, options, and futures all expiring simultaneously.

Ethereum’s price has remained relatively stable compared to Bitcoin, mostly trading in the US$3,300-$3,500 range. On 25 June, the US Securities and Exchange Commission Chair Gary Gensler stated that the process for launching a spot Ethereum ETF was “going smoothly.” According to Reuters, the Securities and Exchange Commission could approve applications for spot Ethereum ETFs as soon as 7 July, as issuers enter the final stage of discussions with regulators. Once approved for trading, the spot Ethereum ETF could see similar sources of demand as the spot Bitcoin ETFs did, but on a smaller scale, according to industry analysts.

CEO Comment

The Gap between Bitcoin and the S&P 500 has widened to 22% from 19% last week.

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. It is quite ironic that McKinsey say “just” US$2 trillion – from a standing start this is quite a phenomenal number. I strongly believe that this number will be reached way sooner than they think – this is an important read – considering the service providers and infrastructure required is nascent and is the WHY behind our DigitalX Fund.
  2. 2023 was the year of real world asset tokenisation, 2024 we’ve labelled the year of scaling up, and 2025 could potentially end up being the year tokenisation is seen as the first mega-trend. This article shows a step on the path, as does this Investcorp and Securitize tie up.

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 61%. I want to reiterate 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 are the news this week – our DigitalX Bitcoin Fund and our DigitalX Digital Asset Fund were ranked the 2nd and 5th top-performing APAC-based cryptocurrency hedge funds in Q1 2024 by Preqin!

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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