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digital asset
August 16, 2024
12 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 cryptocurrency market has experienced modest gains over the past week, the most recent data US CPI inflation data coming in at 2.9% – better than expectations with interest rate cuts in focus. The price of Bitcoin at the close of the week has been under pressure, decreasing to below US$56,000, as new Bitcoin supply continues to hit the market with the U.S. government moving 10,000 Silk-Road-related seized BTC to Coinbase Prime, according to Arkham Intelligence. The crypto wallet that initiated the transfer received the US$600 million worth of Bitcoin two weeks ago from a wallet tagged as the “U.S. Government Silk Road DOJ Confiscated Funds.” Despite the selloff, many large traditional finance institutions have recently disclosed large holdings in BlackRock’s IBIT ETF, including Goldman Sachs who disclosed holding over US$400 million, and Morgan Stanley who disclosed US$188 million in holdings. The vast demand from these institutions has led to rampant growth for Bitcoin ETFs, as they now look to collectively outpace the holdings of Satoshi Nakamoto.

The Brazilian Securities and Exchange Commission (CVM) has approved a Solana ETF, the agency disclosed in its central database on Wednesday. It is the first product of its kind in Brazil and among the first Solana-based ETPs globally. According to CVM’s database, the Solana-based ETF is in a pre-operational stage, meaning it still has to be approved by the Brazilian stock exchange, B3. Brazilian asset manager QR Asset will offer the ETF, while Vortx, a local fintech company focused on capital markets, will serve as its manager. QR Asset’s manager and chief investment officer, Theodoro Fleury, stated “this ETF reaffirms our commitment to offering quality and diversification to Brazilian investors. We are proud to be global pioneers in this segment, consolidating Brazil’s position as a leading market for regulated investments in crypto assets.” Brazil has continued to dominate the South American region with its crypto ETFs, with B3 listing a Bitcoin ETF and Ethereum ETF back in 2021 and 2022, making BlackRock’s IBIT ETF available as of March 2024. The approval comes as an encouraging sign for other regions of the world to consider offering Solana-based ETPs, re-affirming CBOE’s ask to the SEC to let asset managers such as VanEck and 21 Shares introduce a Solana ETF to the market. Noting that the request is yet to be granted.

Nigeria’s Lagos state government has announced plans to tokenise real estate. This seeks to address issues such as land title fraud and lack of transparency in property ownership, which have continued to plague the Nigerian real estate sector. By recording property transactions on a blockchain, the state can ensure that all records are immutable and tamper-proof, providing enhanced security and trust for investors. The tokenisation plan will unfold over 16 months, with the Ministry of Science and Technology spearheading the project in collaboration with various agencies and partners. These agencies will be working with a budget of 500 million naira (US$314,465) allocated by the state government to support the initiative. According to local media, this initiative, outlined in the Eko Revenue Plus Summit documents, serves as a critical strategy for increasing Lagos State’s internally generated revenue.

 

CEO Comment

The Gap between Bitcoin and the S&P 500 now sits at 16%, a slight increase from last week’s 14%.

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. For crypto geeks, I guess the global Bitcoin ETF’s overtaking Satoshi as the largest Bitcoin holder is historic and a true sign of the times / magnitude of the shift in BTC in 2024. 
  2. Tokenised Bonds are looking to be the next big set up in volume for RWAT

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, a dramatic increase to circa 68%. The big shake up and retracement this week wasn’t for the faint hearted – we remain steadfast that 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.

  1. A big week for RWAT as the space has continued to flip DeFi – even though Defi dominance shrank it is still a historic moment. Vitalik Buterin weighing in on cross chain protocols shows how much cross chain activity is important for RWA growth.
  2. And a shout out to the team from Aus-DeFi, pointing out the Australian Governments announcement on personal data tokens is basically a ZK Rollup – ZK Rollups are a big theme in our alts book.

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:

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.

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