Market Commentary
The price of Bitcoin has continued to increase over the past week, rising to US $66,000 despite selling pressures emerging from Mt. Gox Bitcoin distributions and the German government’s recent selloff. The recent rally can largely be attributed to an optimistic macro environment and the prospect of a more crypto-friendly U.S. administration under Donald Trump, who also recently selected J.D. Vance to be his Vice President in the presidential race. Vance reportedly owns between US$100,000 and US$250,000 in Bitcoin, according to his latest federal financial disclosure. In conjunction with the recent rally, the US-based spot Bitcoin ETFs extended their seven consecutive days of inflows, recording US$422.5 million of inflows on Tuesday, the biggest single-day tally since the start of June.
According to Bloomberg, the US-based spot Ethereum ETFs are likely to launch on 23 July. At present, the issuers behind these Ethereum ETFs are undergoing final amended registration statements before receiving the go-ahead from the US Securities and Exchange Commission to begin trading. Trillion dollar asset manager BlackRock has set its management fee at 0.25%, stating that they could “waive all or a portion” of the fee for a year after listing and for the first US$2.5 billion in assets. ETF issuer 21Shares also set a 0.21% management fee, which will be waived for six months beginning on the day the shares are listed or during the first US$500 million. Other issuers – Franklin Templeton, VanEck, Bitwise & Fidelity – are also looking to completely waive their fees until a certain time period or amount of assets under management (AUM) are attained.
In a recently published report by State Street, the Boston-based asset management and banking firm is exploring stablecoins and tokenised deposits to settle transfers on the blockchain. As part of its increasing presence in the digital asset space, CoinDesk reported that State Street Global Advisors, the investment management arm of the company, also inked a deal with digital asset investment firm Galaxy Digital to develop crypto trading products. Additionally, only six months after cutting its entire digital asset division, State Street decided to rebuild and is now planning to offer crypto custody services.
CEO Comment
The Gap between Bitcoin and the S&P 500 has amounted to 12%, a sharp drop from last week’s 27%. This is aligned with a more bullish sentiment that has emerged post the large sell-off and reports that 36% of Mt Gox distributions has been disseminated.
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:
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.
