This week's latest trends and insights in the digital asset market from our asset management team.
Market Commentary
Following what appears to be an economic slowdown and NVIDIA’s recent sell-off, the price of Bitcoin has reduced over the week – reaching as low as US$56,000. Despite analysts forecasting a brief boost from potential rate cuts in the upcoming FOMC meeting, the downward trend emerged from the US ISM manufacturing PMI figure which now sits below 50, indicating a continued contraction of activity in August. This revived growth fears, weighing over risk assets, including digital assets. Subsequently, the US-based. spot Bitcoin ETFs suffered the largest daily outflow in four months, registering a cumulative net outflow of US$287.8 million – according to data tracked by Farside Investors. According to QCP Capital, Ethereum continues to significantly underperform due in part to the deleveraging effect by the Bank of Japan’s interest rate hike. This was only further exacerbated by Jump Crypto – the crypto division of Jump Trading – transferring large amounts of ETH to exchanges on the same day. This has negatively impacted interest in both the US and Hong Kong based spot Ethereum ETFs, with trading volumes dropping to just 15% of the levels seen during their debut week in late July, according to SoSoValue.
Switzerland’s fourth-largest bank Zürcher Kantonalbank (ZKB) offers retail customers exposure to Bitcoin and Ethereum. In line with Switzerland’s crypto-friendly stance, many financial institutions have continued to roll out crypto offerings to customers. In collaboration with Crypto Finance, a Deutsche Börse-owned digital assets broker, customers of ZKB will have the ability to buy, sell and hold BTC and ETH through the cantonal bank’s existing Mobile App, eBanking, and other established channels. This service extends the offer to other Swiss banks to trade and custody cryptocurrencies, with the Head of Institutional Clients and Multinationals at ZKB, Alexandra Scriba stating “customers and third-party banks do not need to own their own wallet… and not worry about storing their own private keys”. ZKB has maintained exposure to digital assets since 2021, issuing the world’s first digital bond on Switzerland’s SIX Digital Exchange (SDX).
Citi survey finds fewer institutions want a Central Bank Digital Currency (CBDC) for digital asset settlement. After surveying close to 500 institutions, only 15% of participants expressed the need for a CBDC settlement, a significant drop from 52% in 2023. Almost two-thirds of the institutions who participated in the survey are resorting for more tactical options to bridge the gap with digital assets, including but not limited to: non-bank stablecoins, tokenised deposits and tokenised money market funds.
CRYPTO TOP 20 7 DAY PRICE CHANGE
*All figures throughout are in USD unless otherwise specified
Market Updates
- Bitcoin ETFs bleed $287M, largest daily outflow in four months
- QCP Capital highlights Ether’s ‘significant’ underperformance compared to Bitcoin in August
- Bitcoin mining profitability is stuck at record lows, JPMorgan says
- Central banks buying gold at record levels, but Bitcoin still outperforms
- Crypto dominates biggest 2024 ETF launches: The ETF source
- El Salvador’s Bukele says Bitcoin strategy a ‘net positive’, but adoption lags
- Former Mt. Gox CEO to launch EllipX crypto exchange in Europe
- Trump’s new crypto business to offer access to ‘high-yield’ investments, website says
- Ripple will soon add Ethereum compatible smart contracts to XRP Ledger
- Coinbase sees first crypto transaction between AI agents
- Scientific paper argues Bitcoin mining can reduce methane emissions
- Riot criticises Bitfarms’ acquisition proposal, board changes
- HashKey and Kaia partner to boost Web3 adoption in Asia
- 21.co launches Bitcoin wrapper on Etheruem
- Monthly DeFi protocol fees dropped 24% in August
- Ethereum Foundation under fire for lack of transparency in treasury management
- Parafi Capital’s $120M fundraise signals renewed growth for crypto funds
- Cardano shifts to decentralised governance as Chang hard fork goes live
- Crypto ATMs surge 17x in Australia amid concern over use by bad actors
- Crypto losses to hacks exceed $313M in August
The Shift List
- TradFi companies ‘want to transact in Bitcoin,’ says Cantor Fitzgerald CEO
- Switzerland’s fourth-biggest bank ZKB offers retail customers Bitcoin and Ether
- Crypto.com taps Standard Chartered to expand global fiat services
- Bosera Hashkey Bitcoin and Ether spot ETFs officially launch on HKEX with two-way investment flexibility
- Sony blockchain Soneium partners with Transak for global fiat on-ramp services
- New NCR Atleos/LibertyX feature converts BTC to cash at US ATMs
- Bloomberg adding Polymarket election data to Terminal
- Forbes launches NFT-gated member community with OKX wallet
- Telegram held $400 million in digital assets, generated significant crypto revenues in 2023: report
- ‘Google of South Korea’ launches crypto wallet for 33M users
- BitGo adds South Korean giants SK and Hana as partners for local arm
- Sui blockchain taps radio waves to bank the unbanked offline
Tinkering with Tokenisation
- Siemens issues $330M digital bond on private blockchain with major German banks including Deutsche Bank
- Stablecoin money movement firm Bridge raises $58 million in funding
- Ripple USD stablecoin could be issued in ‘weeks, not months’: Garlinghouse
- Stables Money onboards Coin.ph’s Philippine peso stablecoin
- KfW issues digital bond as part of EDB DLT settlement trials
- Brevan Howard-backed tokenisation firm Libre arrives on NEAR blockchain
- Basel Committee explores how banks can mitigate permissionless blockchain risks
- HSBC, StanChart, Bank of China HK shares plans for HK tokenised deposit sandbox
- Citi survey finds fewer institutions want CBDC for digital asset settlement
Macro and Regulatory Environment
- Fed rate decision may briefly boost Bitcoin, but recession fears could lead to correction: analysts
- Bank of Japan governor hints at more rate hikes
- Trump to announce plan to make US ‘crypto capital of the planet’
- U.S. House Committee plans for heap of crypto hearings in September
- Crypto-fan Deaton gets chance to battle Elizabeth Warren for U.S. Senate
- Kamala Harris is not directly accepting crypto donations, a PAC is, Coinbase says
- SEC Commissioner Mark Uyeda calls for S-1 form tailored for digital assets
- Billionaire Telegram CEO released on €5m bail, not allowed to leave France
- Crypto-friendly United Texas Bank faces cease and desist order from Federal Reserve
- Ripple and SEC agree to stay $125M judgement, hinting at appeal
- Qatar introduces regulatory framework for digital assets
- Elon Musk, Tesla win dismissal of lawsuit alleging Dogecoin market manipulation
- CBOE files amended applications to list Bitcoin, Ethereum options in US
- Nigeria’s SEC issues first license to local crypto exchange
- Hong Kong accepts crypto license application past deadline
- Canadian court orders $1.2M Bitcoin loan repayment
- Bankrupt Bitcoin miner Rhodium gets court approval for loan in BTC or USD
- Chinese ‘CoinGecko’ investigated by local police – Report
- SEC might challenge FTX bankruptcy estate from paying back customers with stablecoins
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.
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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.
