DigitalX Weekly Crypto Update: Market Trends and Analysis

Market Commentary

Digital asset prices declined at the beginning of the week, primarily attributable to the economic data out of the U.S., with all of the readings, including the widely watched non-farm payrolls report, turning in weak. Amid the uncertainty around an upcoming rate cut on the 18th of September, global crypto investment products witnessed US$726 million in net outflows, matching numbers dating back to March, according to Coinshares. Over this same period, the US stock market experienced its worst week since March 2023 and Ethereum hit its lowest price in 2024 with more than US$200 million in liquidations. This phenomena displayed the digital asset market to be strongly correlated to the stock market, according to Citi.

This week State Street unveiled three new digital asset ETFs that will be managed by Galaxy Asset Management. State Street Global Advisors (SSGA) has launched its Digital Asset Ecosystem ETF (DECO), Hedged Digital Asset Ecosystem ETF (HECO) and Transformative Tech Accelerators ETF (TEKX). These funds will invest in stocks with beneficial exposure and supporting new disruptive technologies, such as blockchain and digital assets. Unlike other trillion dollar asset managers such as BlackRock and Fidelity, SSGA is opting not to launch spot crypto ETFs for the time being.

BBVA incorporates USDC, a leading stablecoin, into its digital asset service in Switzerland. BBVA’s institutional and private banking clients can now access more efficient trading operations, allowing their USDC funds to be managed on the same platform as traditional investments. They can exchange, custody or automatically convert USDC in near real-time into Euros, Dollars, and many other currencies. This creates railways for BBVA to build out offerings and further explore tokenised products, according to Philippe Meyer, Head of Digital Solutions and Blockchain at BBVA in Switzerland.

CRYPTO TOP 20 7 DAY PRICE CHANGE

*All figures throughout are in USD unless otherwise specified

Market Updates

• Michael Saylor says Republicans have a more ‘progressive’ view on crypto, Democrats ‘drifting to the middle’
• Bitwise CIO predicts significant crypto rally as macro uncertainty fades in Q4
• Global crypto investment products record largest weekly outflows since March, totally $726 million: CoinShares
• VanEck to close Ether futures ETF after July spot ETH fund launch
• Coinbase, Robinhood upgraded by Barclays analyst, citing ‘matured’ business models
• Block Inc. overtakes Coinbase in market capitalisation as Barlcays revises price target
• Ether.Fi to launch Visa ‘Cash’ Card on Scroll Network
• tZero secures approval to custody digital assets, becoming second firm to get US regulators’ sign off
• Crypto payments firm BCB Group has received takeover interest: Sources
• Telegram CEO Pavel Durov promises changes, noting it’s become easier for ‘criminals to abuse our platform’
• Ethereum stablecoin volume hits record $1.46 trillion as DeFi demand surges
• Coinbase layer-2 success shows power of marketing over cutting-edge tech
• Bitcoin miners battle network difficulty and Texas heat in August production updates
• Demand for Japanese yen stablecoins is ‘only a matter of time’ – Brad Garlinghouse
• Ethereum Foundation to release financial report, holds roughly $650 million in main wallet: Justin Drake
• WisdomTree withdraws its Ethereum Trust S-1 registration filing
• Crypto venture capital funding surges to $633M in August rebound
• El Salvador marks 3 years of Bitcoin adoption with $31M profit
• CZ banned from ‘any present of future involvement’ in managing Binance
• TON hits record transaction highs post-Durov arrest while token price plummets 30%
• TON Foundation pumps $24 million into fueling DeFi on Telegram-linked network

The Shift List

• State Street unveils crypto ETFs with partner Galaxy
• US companies forecast to buy $10.3B in Bitcoin over next 18 months – Report
• Bitwise CIO says advisors adopting Bitcoin ETFs ‘faster’ than any other exchange-traded fund in history
• Crypto-native travel platform Travala integrates with Skyscanner for 2.2M hotels
• Mastercard launches crypto card enabling users to spend at 100 million European merchants
• India launches National Blockchain Framework
• PayPal, Venmo integrate Ethereum Name Service for crypto payments
• Accenture invests in Emtech to strengthen CBDC, fintech solutions
• Standard Chartered begins UAE crypto custody services with BTC, ETH

Tinkering with Tokenisation

• HSBC and Standard Chartered analysts: tokenisation could bridge global trade finance gaps
• RAKBANK marks milestone with its first Central Bank Digital Currency transfer via mBridge
• Visa and Santander selected by Brazil’s central bank for a second phase of CBDC pilot
• BBVA incorporates USDC, a leading stablecoin, into its crypto asset service in Switzerland
• Fnality tech partner Adhara collaborates with Owenera for tokenisation interoperability
• EU Unified Ledger for tokenisation proposed by Banque de France governor
• New York Fed experts talk up tokenisation
• Tether’s $100M investment in LatAm agriculture firm may be a tokenisation play
• Plume debuts tokenised ‘mineral vault’ amid hunger for RWA yield, CEO says
• Malaysia’s first RWA project tokenises $23 million in residential properties
• INX announces sale of I.L.S. Brokers Ltd. to focus on RWAs
• Antier introduces lightning-fast asset tokenisation platform development services
• Gleipnir, Inc. launches tokenisation strategy to improve investment accessibility
• Infineo tokenises more than $125m in life insurance policies on the Provenance blockchain
• Standard Chartered trade finance JV Olea lands Singapore Capital Markets license
• Tokenised RWA platform Huma Finance gets $38M investment, plans expansion to Solana and Stellar’s Soroban

Macro and Regulatory Environment

• Unemployment falls, suggests orderly US labor-market slowdown
• US presidential debate spurs risk-off sentiment in crypto market, analysts say
• Crypto becomes US election issue for the first time – Survey
• Trump promises to embrace ‘industries of the future’ including crypto, AI
• Kamala Harris releases policy platform details – no mention of crypto
• Harris won U.S. presidential debate versus Trump, Polymarket betting suggests
• House lawmakers clash at first-ever DeFi hearing
• India and Nigeria lead the world in crypto adoption again, but Indonesia is fastest growing: Chainalysis
• EU regulator sees official journal publication of stablecoin standards before year-end
• UK regulator says 87% of crypto registration applications failed to meet standards for approval
• Ripple co-founder signs letter endorsing Harris for president
• Judge issues temporary stay in CFTC-Kalshi election contract dispute
• NY judge orders SEC to provide some documents in Coinbase case, but excludes Gensler testimony
• Chainalysis says Russia’s crypto infrastructure aims to skirt Western sanctions
• India reconsiders foreign crypto exchange registrations: Report
• Binance and Bybit closer to becoming Kazakhstan’s first regulated DATFs
• Binance subsidiary Tokocrypto secures full license in Indonesia
• Coinbase must face shareholder lawsuit over regulator risk concerns, judge rules
• Five U.S. states reach settlement with GS Partners, investors to get full refunds
• North Carolina passes anti-CBDC bill, overrides governor’s veto
• Investors lost record high $5.6B to crypto scams in 2023, FBI says

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.