Appold Market Watch - Week ending 23 August 2024
Market Update & Industry News - Week ending 23 August 2024
🔷 BlackRock’s spot Ethereum exchange-traded fund, iShares Ethereum Trust (ETHA), surpassed $1b in cumulative net inflows on the 20th of August becoming the first of 11 issuers to cross this point since the launch on the 23rd of July.
Appold view: Surpassing $1bn in net inflows within a month of launch is a significant success for any new ETF launch, regardless of asset class. The Bitcoin ETF achieved that milestone in just four days, but both these performances highlight the growing institutional demand for this asset class.
🔷 Digital Asset Manager, Bitwise Asset Management, surpassed $4.5 billion in assets under management (AUM) as it expanded into Europe with the acquisition of ETC Group. The London-based digital asset manager created Europe’s largest physical Bitcoin ETP (BTCE) and other Ethereum staking ETPs and Solana physical ETPs. The acquisition is thought to enhance Bitwise’s capability to serve European investors with institutional-grade products.
Appold view: This acquisition bolsters Bitwise’s global profile and AUM, with estimates of around $1bn AUM from the ETC Group acquisition alone. Next stop Asia?
🔷 Global stablecoin developer, Tether.io, in collaboration with Phoenix Group and Green Acorn Investments, announced the launch of a stablecoin pegged to the UAE’s Dirham (AED). The dirham-backed token will be fully supported by UAE-based reserves and allegedly aims to improve international trade and remittances. The Dirham is currently pegged to the US Dollar.
Appold view: The region has been growing as a blockchain hub mainly due to clearer regulation and tax benefits. Tether’s expansion into AED could continue to advance the region’s appeal and ongoing growth, as well as enhance international trade and remittances.
🔷 Digital asset exchange, Coinbase, announced it would offer 1:1 EURC conversions from fiat to stablecoin from the 28th of August and fully comply with the EU’s new Markets in Crypto Assets (MiCA) regulations. EURC was created by Circle and is an ERC-20 token backed by Euro Fiat currency. The move is focused on attracting more users to utilise the benefits of stablecoins without extra fees.
Appold view: With alignment to MiCA regulations, euro reserves held in regulated institutions, and active market makers ensuring liquidity, this move should help them grow their pan-European client base with what should be a competent digital asset product offering.
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