Appold Market Watch - Week ending 1 November 2024
Market Update & Industry News - Week ending 1 November 2024
🔷 Bitcoin Exchange-Traded Funds (ETFs) reported the biggest net inflow on Wednesday since March. Approximate net inflows of over $917m were reported, with BlackRock's iShares Bitcoin Trust ETF pulling in the largest share of around $872m. BTC saw a significant increase in price throughout the week.
Appold view: The significant price movement took BTC close to its all-time high. How much of this is attributed to US presidential speculation is uncertain, but it’s going to be an interesting week ahead for both digital asset markets and traditional financial markets as the results, or should we say the drama, unfold.
🔷 Stablecoin issuer Tether.io recorded several all-time highs in its third quarter of 2024 financial report following record demand for USDT. Net profit reached $2.5b after a record $27.8b tokens were issued this year alone. Tether’s reserves reached an all-time high with $102.5b in US Treasury holdings and over $6b in reserve buffer. Tether also reported almost $120b USDT in circulation.
Appold view: This performance reinforces Tether's position as a leading stablecoin issuer. Their US treasury holdings are now so large that they are among the top 20 global holders and surpass many sovereign nation holdings.
🔷 Global payments giant Visa and digital assets exchange Coinbase announced a partnership enabling real-time crypto purchases via Visa debit cards, allowing instant digital asset transactions without bank transfer delays. This move is aimed at making digital assets more accessible for everyday use for customers in the US and European Union.
Appold view: This will allow Coinbase clients to both fund their accounts with their Visa card as well as make payments and have their crypto debited. An additional convenience for users but many tend to favour sitting on digital assets rather than spending it, and certainly don’t want the headache of tax accounting on each transaction viewed as a “crystallisation event”.
🔷 UK-regulated digital asset exchange, Archax, announced an agreement to buy Spanish broker King & Shaxson Capital Markets (KSCM) pending regulatory approval in Spain. The move is thought to support Archax’s expansion into the EU as the bloc’s Markets in Crypto-Assets (MiCA) regulation rules take effect.
Appold view: A strategic move from Archax as it expands its Multi-Lateral Trading Facility (MTF) and custody services into the EU, and positioning itself for MiCA compliance. Note that this acquisition is not a done deal and is pending regulatory approval in Spain.
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