This week's latest trends and insights in the digital asset market from our asset management team.
Market Commentary
Digital asset prices saw a strong upward trend during the week, following the US Federal Reserve’s recent rate cut, sparking a risk-on sentiment for investors. With the resurgence of investor risk appetite, Ethereum led the market with roughly a 14% price surge. On the contrary, the US-based Ethereum ETFs saw outflows of US$29 million over the week, with Bitcoin-linked products seeing a second consecutive week of inflows with US$284 million.
The U.S. SEC this week approved options for BlackRock’s spot Bitcoin ETF, which would provide institutional investors and traders an alternative way to hedge their exposure to the world’s largest cryptocurrency. Once considered a nascent asset class, this allows institutions looking to hedge their downside risk in Bitcoin, to move to a more mainstream acceptance following the launch of spot Bitcoin ETFs in the U.S. earlier in the year.
The Hong Kong Monetary Authority (HKMA) has commenced the second phase of the digital Hong Kong dollar (e-HKD). In light of the project’s broadening scope, the HKMA is being renamed to Project e-HKD+. This primarily focuses on the settlement of tokenised assets, programmability, and offline payments to “drive new forms of digital money [and how it] can add unique value to the general public”, according to HKMA’s CEO Eddie Yue. As part of Hong Kong’s FinTech 2025 strategy, the government is looking to be a first-mover for bringing a digital dollar to the masses.
CRYPTO TOP 20 7 DAY PRICE CHANGE
*All figures throughout are in USD unless otherwise specified
Market Updates
- Digital asset funds see second consecutive week of inflows: Coinshares
- Crypto and stock share strongest positive correlation years after Fed rate cut: Bloomberg
- Bitcoin’s breakout to new highs could be near, past market cycles suggest
- Ether leads post-fed crypto market rally as Yen weakness sparks risk-on frenzy
- Ethereum ETFs record biggest outflows since July in sign of low institutional appeal
- MicroStrategy boosts Bitcoin holdings with $458M purchase, upsized convertible note offering to $1B
- Benchmark says MicroStrategy could soon generate yield by lending its Bitcoin holdings
- Ethereum developers confirm plan to split ‘Pectra’ upgrade in two
- Avalanche targets institutional adoption as crypto projects seek use cases
- Sky reconsiders plan to offboard Wrapped Bitcoin, after chat with BitGo CEO
- Crypto exchange BingX hacked, onchain data shows over $43M drained
- ‘Satoshi Era’ wallets move $16M in Bitcoin after 15 years of dormancy
- YouTube page of India’s Supreme Court hacked to promote XRP
- Coinbase announces plan to bring cbBTC to Solana network
- Travala expands booking support to Solana-based assets, offers SOL travel rewards
- Powerledger integrates with Solana mainnet ecosystem
- Hashgraph Association to explore digital asset use cases with Qatar stakeholders
- Celestia Foundation raises $100 million in a round led by Bain Capital Crypto
- Polymarket considers token launch to raise over $50 million: report
The Shift List
- SEC approves BlackRock’s spot Bitcoin ETF options listing
- Stablecoins will drive institutional adoption in Asia: Chainalysis CEO
- PayPal enables U.S. business accounts to buy, hold and sell crypto
- African economies show high potential for digital asset adoption
- BNY Mellon moves closer to offering crypto ETF custody services: Bloomberg
- Solana Labs partners with Google Cloud to launch Web3 API
- Qatar launches Digital Assets Lab
Tinkering with Tokenisation
- SocGen’s crypto unit takes Euro stablecoin to Solana after flopping on Ethereum
- Tokenised asset market to hit $10T by 2030: Chainlink report
- DTCC tokenization pilot finds ‘significant’ improvements to liquidity and collateral optimization
- Blockchain-based investment platform Assetera to offer tokenised assets on Polygon
- Visa to help banks issue fiat-backed tokens on Ethereum via new tokenised asset platform
- Plume Network says it’s tokenising over $1 billion in real-world assets like solar farms, Medicaid claims and mineral rights
- Stablecoins and crypto are threatening fiat money dominance in Eastern Asia
- Non-dollar stablecoins will rise over next few years, Visa’s Head of Crypto says
- Hong Kong’s e-HKD project expands into tokenisation, programmability
- HSBC trials quantum technology for tokenised gold
- SC Ventures-backed SWIAT, Olea partner for tokenised trade finance
- JP Morgan’s Onyx blockchain used for Siemens’ Digital Commercial Paper settlement
- Web3 asset manager Anemoy taps oracle provider Chronicle for real-time data of its onchain Treasuries fund
- UBS, PostFinance, Sygnum to conduct deposit token trials
- Fund administrator Apex partners DLT exchange 21X
Macro and Regulatory Environment
- U.S. M2 money supply approaches new highs as financial assets reach record levels
- VP Harris says she’ll encourage crypto business while protecting consumers at Wall Street fundraiser: Bloomberg
- Harris loses ‘support’ rating from crypto advocacy as grade changes to ‘NA’ from ‘B’
- China stimulus boosts stocks, but crypto remains stagnant
- House Republicans urge SEC to rescind ‘disastrous’ SAB 121
- ‘We are running out of time’: U.S. House Democrat urges stablecoin bill compromise
- NYDFS ‘more eager than anyone’ for federal legislation, Chief says
- Gensler says DEBT Box case ‘not well handled’ by SEC
- Texas court dismisses Consensys lawsuit against SEC
- IMF staff propose REDI framework to catalyze CBDC adoption
- Australia seeks to require licensing for crypto firms under corporations law: report
- Bank of Canada says no to retail CBDC in reshuffling of priorities
- German government shuts down 47 exchanges, says they’re tied to ‘illegal activity’
- U.S. election betting: CFTC, Kalshi both grilled by judges in appeals court
- Crypto.com gains payment service license from Bahrain central bank
- Sygnum Unit receives Liechtenstein license as crypto asset service provider
- Telegram to provide more user data to governments after CEO’s arrest
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.