Appold Market Watch - Week ending 8 November 2024
Market Update & Industry News - Week ending 8 November 2024
🔷 Following the US election results, total inflows into Bitcoin Spot ETFs hit a daily record of approximately $1.38 billion, with Bitcoin (BTC) hitting a record all-time high above $76k (then over $80k on the weekend). BlackRock was the strongest recipient of these inflows, estimated to be around $1.1 billion of capital in one day. US shares also soared on the election result, along with an appreciation in the US dollar.
Appold view: Market sentiment has been heightened by speculation that a potential Trump administration could support the digital asset sector. Discussions around BTC stockpiling and potential senior regulatory appointments with favourable views on digital assets fuel investor enthusiasm. However, it’s important to note that these policies remain speculative and are not guaranteed to materialise.
🔷 Robinhood, Kraken Digital Asset Exchange, Galaxy Digital, and other digital asset firms launched a joint stablecoin pegged to the USD, enabling seamless transfers across blockchains. The Global Dollar Network (USDG) aims to boost stablecoin liquidity, usability, and adoption worldwide amid rising regulatory focus.
Appold view: The stablecoin market has been predominantly led by Tether.io (USDT) and Circle's USD Coin (USDC), which together command a substantial share of the market. Competition is tight, but this regulatory-aligned product with strong backers could dent the market share of the existing stablecoin issuers as more institutions are attracted to it.
🔷 The State of Michigan’s Retirement System disclosed in a 13F filing that it held over $10 million in holdings of Grayscale’s Ethereum ETF, marking one of the first instances of a U.S. state pension fund investing in Ethereum ETFs.
Appold view: This move marks Michigan as the first US state pension fund to invest in Ethereum ETFs, reflecting growing confidence in the sector. Notably, their Ethereum holdings are reported to be greater than their Bitcoin ETF holdings, estimated to be around $7 million.
🔷 UK pension specialist Cartwright Pension Trusts announced it had guided the first UK pension fund to invest a proportion of its assets into Bitcoin. The unnamed pension fund is said to have invested 3% of its £50m fund into Bitcoin directly, not through traditional ETFs. Cartwright also announced it would launch a Bitcoin Employee Benefits Scheme.
Appold view: This represents the first instance of a UK pension scheme investing directly in Bitcoin rather than through traditional investment vehicles like ETFs. It could be a pivotal moment in influencing other institutional investors to consider digital assets as part of their investment strategies.
#Marketwatch #Blockchain #Investments
