Appold Market Watch - Week ending 31 January 2025
Market Update & Industry News - Week ending 31 January 2025
🔷 Rebranded Twitter platform X announced plans to collaborate with payments giant Visa to introduce X Money, a digital payments system that integrates financial transactions within the platform. The partnership will enable users to conduct peer-to-peer payments and business transactions, aligning with Elon Musk’s apparent ambition to transform X into a comprehensive financial services hub.
Appold view: While this aligns with Musk’s alleged broader vision of an “everything app,” success will depend on regulatory approvals, user adoption, and seamless integration with existing financial systems. There is speculation of integration with other payment systems, including digital assets, but there have been no official announcements on that as yet.
🔷 Digital asset management firm Grayscale launched a Bitcoin Miners ETF (MNRS), which provides investors with exposure to publicly traded companies involved in Bitcoin mining. The fund aims to capitalise on the expected growth in the Bitcoin mining industry.
Appold view: ETF issuers continue to source niche areas and establish early traction before competitors do. From our observations, some BTC miners exhibit varying degrees of correlation to BTC compared to others. Potential investors may need to weigh up the benefits of tracking such an index, as opposed to taking some Spot BTC ETF positions in conjunction with a selection of individual mining stocks.
🔷 Crypto.com announced it would delist Tether (USDT) for users in the EU from 31 January, complying with the region’s new regulatory framework. The decision followed the EU’s Markets in Crypto-Assets (MiCA) regulations, which impose stricter rules on stablecoins. Affected users were advised to withdraw or convert their USDT holdings before the deadline to avoid disruptions.
Appold view: The Tether.io CEO has stated that MiCA regulation into the digital asset space is welcome, despite the delisting of USDT reflecting the strict stance on stablecoins. We think that Tether will likely focus on other markets. It remains to be seen if their exit will impact EU market liquidity, particularly with the bulk of volumes being traded OTC.
🔷 The Paris Public Prosecutor's Office (JUNALCO) launched a money laundering and tax fraud investigation into Binance, examining allegations of illicit financial transactions and regulatory non-compliance. The investigation examines offences committed in France and the wider EU from 2019 to 2024. Binance allegedly denied the allegations.
Appold view: While Binance has apparently denied the allegations, this inquiry, following probes in other jurisdictions, adds to the firm’s global regulatory challenges. The outcome could have wider implications for the exchange’s operations in Europe, particularly as MiCA enforcement ramps up.
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