Market Update & Industry News - Week ending 6 December 2024

🔷 Bitcoin reached an all-time high of around $103,000, partly driven by continued optimism surrounding President-elect Donald Trump’s pro-digital asset policies. Paul Atkins, an advocate for looser regulations of digital assets, was picked for SEC leadership and former Pay Pal COO David Sacks as White House “AI and Crypto Czar.”

Appold view: It was a big symbolic week as BTC finally breached $100,000 midweek, much to the joy of the industry and market participants. The next stop is $150k, or maybe there will be lots of profit taking to compress the price? Time will tell.

🔷 Digital asset trading volumes were reported to have surpassed $10 trillion for the first time in November 2024, driven by institutional adoption and political optimism. Spot trading reached $3.43 trillion, while derivatives hit a record $6.99 trillion. 

Appold view: The surge in trading highlights the growing maturity of the digital asset ecosystem, with increased participation from both retail and institutional investors driving liquidity and price discovery. However, the sustainability of this growth remains contingent on the evolution of regulatory clarity and continued innovation within the space.

🔷 US asset management firm WisdomTree filed Form S-1 with the SEC to launch a spot XRP ETF. WisdomTree XRP Fund is planned for listing on the Cboe BZX Exchange and aims to provide direct exposure to XRP, with the Bank of New York Mellon as its trust administrator. Wisdom Tree is the fourth US company to file for the spot XRP ETF. The SEC has yet to approve any applications. 

Appold view: This move reflects a strategic move to capitalise on the growing interest in the digital asset, particularly as XRP recently surpassed Tether’s USDT to become the third-largest digital asset by market capitalisation.

🔷 Grayscale Investments filed with the SEC to convert its Grayscale Solana Trust (GSOL) into a spot ETF listed on NYSE Arca. The trust holds $134.2 million in assets, representing about 0.1% of all Solana tokens. This follows similar filings by VanEck, 21Shares, and Bitwise Asset Management, reflecting increased institutional interest in Solana. The SEC has yet to approve any spot Solana ETFs.

Appold view:: No Solana ETF applications have been approved thus far, and current indications suggest the SEC may reject ongoing applications for spot Solana ETFs while potentially halting new crypto ETF approvals under the current administration.

#Marketwatch #Blockchain #Investments