This week's latest trends and insights in the digital asset market from our asset management team.
Market Commentary
The price of Bitcoin dropped below the US $60,000 mark over the past week, declining as far as US $53,000. This was due in large part to the increased supply of Bitcoin entering the market from the recent sell-offs by the German government, Bitcoin miners and the Mt. Gox distributions. It was recently reported that the German government had moved up to US $900M worth Bitcoin to centralised exchanges such as Kraken and Coinbase. Mt. Gox has also begun repayments in Bitcoin and Bitcoin Cash, moving 47,228 BTC and inducing some market concerns due to the increased supply of new Bitcoin in circulation. Lastly, in a report published by CryptoQuant, Bitcoin miner capitulation metrics are approaching the same level as the market bottom following the FTX crash in late 2022. However, others such as Greg Cipolara, research head at NYDIG, stated that “while emotions and psychology may rule over the short-term, our analysis suggests that the price impact from potential selling may be overblown.”
DigitalX was pleased to announce during the week that the application for its DigitalX Bitcoin ETF (ASX: BTXX) was approved for quotation on Australia’s largest stock exchange. The ETF will begin trading at 10:00AM 12 July on the Australian Securities Exchange (ASX) under the ticker BTXX. The Fund was developed in partnership with K2 Asset Management, the ETF’s responsible entity and issuer, as well as Canadian-based digital asset investment firm 3iQ, who will be assisting in the promotion and distribution of the Fund both domestically and internationally.
Goldman Sachs reportedly plans to launch three tokenisation funds by the end of the year. It will focus on the U.S. fund sector, European debt markets and creating marketplaces for tokenised assets. Unlike many of its competitors, Goldman’s Digital Assets Global Head, Mathew McDermott, stated that the company will primarily fixate on using permissioned networks – rather than fully decentralised blockchains like Ethereum, due to regulatory concerns. Goldman Sachs has been working with permissioned blockchain networks since 2021, and has already issued tokenised bonds with the European Investment Bank and tokenised sovereign green bonds for the Hong Kong Monetary Authority.
CEO Comment
The Gap between Bitcoin and the S&P 500 has further widened to 27%, up from last week’s 22%. As we know the market is still absorbing some supply overhangs, resulting in the gap’s recent increase.
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:
- DigitalX Bitcoin ETF (ASX: BTXX) – DigitalX to list spot bitcoin ETF on Australia’s largest stock exchange.
We are very excited to launch our spot Bitcoin ETF on the ASX this morning. I am very proud of our great team and the effort that went into bringing this product to market. If you have questions regarding the ETF, please feel free to reach out.
- This article on Square is interesting and possibly the playbook for the corporate environment of the future – investing in mining and reinvesting 10% of Bitcoin profits back into Bitcoin.
- This Hamilton Lane Fund is interesting and another example of the future arriving in the now.
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 46%. 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 shift to close the gap can happen very quickly and will correlate to the next up move in BTC – the building is happening no matter what.
- Chainlink certainly continues to make a compelling argument that the tokenisation of real world assets will eclipse Crypto as an opportunity.
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
- Mt. Gox begins repayments in Bitcoin and Bitcoin Cash
- Bitcoin Cash’s Mt. Gox sell-off is amplified by poor liquidity
- Aussie investors still favour Bitcoin while newer memecoins gain popularity: Kraken
- US spot Bitcoin ETFs record $216 million in net inflows, continuing positive flow streak
- Bitcoin’s correlation with US equities falls to multi-month low
- Singapore’s largest bank DBS sees digital exchange business boom
- Dorsey’s Block partners with Core Scientific for bitcoin mining chip project
- Ether ETF fee race begins as Invesco reveals 0.25% charge, slightly higher than VanEck
- Bitcoin ETFs score highest net inflows in 30 days amid volatility from Mt. Gox unlocks
- Crypto crash pushes fear & greed index to lowest since Bitcoin traded at $17K in early 2023
- Private equity giants are circling Bitcoin miners on AI allure
- Sacked Northern Data execs file suit against Tether-backed company, alleging fraud
- Biden’s odds on Polymarket little changed after ABC TV interview
- Tron develops gas-free stablecoin for Ethereum and Tron chains
- Bitfinex to refund investors of its failed El Salvador Hilton hotel project
- Taiwan Mobile receives VASP license, entry to crypto market
- Crypto remittances in Venezuela surge as economic situation worsens
- Grayscale Ethereum Trust discount to NAV quietly switches to a premium ahead of anticipated spot ETF launch
- Ethereum devs weigh mainnet features against rollup push
- Bitcoin drops as German government unloads over $900M worth of BTC
- Digital asset funds flip positive for first time in 4 weeks: Coinshares
- Digital asset trader Auros to invest over $50M in crypto startups through its newly established VC arm
- MetaMask developer Consensys releases new toolkit for ‘seamless onboarding’
- Standard Chartered-backed Zodia Custody partners with crypto lending firm Maple Finance
- Crypto investment firm Hypersphere unveils $130M market fund
- Crypto wallet provider Exodus aims to solve Web3’s user-friendly issue with ‘passkeys wallet’
- Sam Altman’s layer-2 blockchain project, World Chain, opens to developers
- TON blockchain ecosystem to get new layer-2 network based on Polygon Tech
- Standard Chartered-backed Zodia Markets in talks to acquire Alan Howard-linked investment company: Report
- Bitcoin miner Hut 8 enters into agreement for 205-megawatt Texas site
- Circle launches Euro-backed EURC on Base, enabling layer-2 FOREX trades
- Retail traders boost Crypto.com as exchange approaches 2022 peak market share
- Farcaster hits record high in user engagement with over 73,700 unique casters
- Starknet token staking proposed to hit mainnet by Q4 2024
- Vitalik Buterin pushes for Ethereum to respond to 51% attacks in a more automated way
The Shift List
- DigitalX to list spot Bitcoin ETF on Australia’s largest stock exchange
- Goldman Sachs plans to launch three tokenised funds later this year: report
- VanEck, 21Shares Solana ETF plan confirmed in CBOE filing
- Tezos Foundation teams up with Baanx for non-custodial crypto card
- Nigeria plans to build ‘Nigerium’ blockchain
- SBI Digital Markets appoints former Bank of Korea official to expand in South Korea
Tinkering with Tokenisation
- BlackRock’s BUIDL Fund tops $500M as tokenised treasury market soars
- Hamilton Lane in credit fund tokenisation as part of Project Guardian
- GDF, FIX partner for tokenisation interoperability
- Taiwan central bank starting wholesale CBDC trials, no rush for retail
- DekaBank receives BaFin license for crypto securities, as 100th issuance reached
- Crypto startup launches tokenised US Treasury bonds on Bitcoin layer-2s
- Schroders Capital, Hannover Re in ILS tokenisation trial
- PayPal’s stablecoin surpasses $500 million market cap following Solana expansion
- Crypto payment startup Kulipa partners with Mastercard and Argent on debit card
Macro and Regulatory Environment
- U.S. economy added 206,000 jobs in June, unemployment rate rises to 4.1%
- US House may vote to overturn Biden’s SAB 121 veto next week
- Trump to speak at Bitcoin Conference in Nashville on July 27
- Labour landslide sets up starmer as UK Prime Minister with unstated crypto plans
- North Carolina’s CBDC ban bill vetoed by governer
- United Kingdom High Court freezes Craig Wright’s assets
- German MP urges government to stop ‘hasty’ Bitcoin self-off
- Former FTX execs Nishad Singh, Gary Wang to be sentenced later this year
- US senate recommends blockchain for national security tests
- As DOE preps for take two of controversial crypto mining survey, industry weights in
- Crypto exchange BitMEX pleads guilty to violating the Bank Secrecy Act from 2015 to 2020
- CFTC Chair reiterates BTC and ETH are commodities in testimony
- Crypto miners stole $723M of electricity in Malaysia since 2018: Report
- Nigerian minister urges SEC to tackle crypto regulation challenges
- Bank of Italy to release crypto guidelines in ‘coming days’ – Governer
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.
