Quick Take

• Bitcoin ETFs hold over a million BTC ($70.4 billion); the Crypto.com Exchange ranked as the top USD-supported crypto exchange in October; UBS launched a tokenised fund on Ethereum.

• US spot Bitcoin ETFs had a weekly net inflow of $2.2 billion last week. Spot Ether ETFs saw a $13 million net inflow. 

• On the macro side, the Bank of Japan kept interest rates unchanged at 0.25%, in line with expectations. In the US, GDP increased at a 2.8% annualised rate in Q3, lower than the 3.1 % estimate done by economists surveyed by Dow Jones. The September personal consumption expenditures price index increased 0.2% month-on-month and 2.1% year-on-year, close to the Fed’s 2% target inflation. The latest CME FedWatch Tool showed a 99% probability of a November rate cut in the US (vs 95% last week). 

• Notable updates: Stacks’s (STX) Nakamoto upgrade went live, Immutable X (IMX) was issued a Wells Notice by the SEC; the Crypto.com App listed Kaia (KAIA) and Virtuals Protocol (VIRTUAL) 

• Notable events in the coming week: Interest rate decisions from Australia, UK, and US, US Presidential Election 

Weekly Market Index

Price index was down by -0.63%, while volume and volatility indices increased by +20.40% and +81.08%, respectively. Volatility increase was led by DOGE (+183.48%) and ETH (+92.45%). 

DOGE futures open interest approached near all-time highs since April 2024 on 29 October; traders attributed this movement to US presidential candidate Donald Trump’s popularity and the potential to set up a ‘Department of Government Efficiency’ (D.O.G.E.) associated with Elon Musk and Trump.

Check price

Chart of the Week

US spot Bitcoin ETFs hold 1.03 million BTC as of 1 November, crossing a critical milestone and reflecting continued strong institutional investor interest. The ETFs recorded a net inflow of $2.2 billion last week, the largest since March 2024. BlackRock’s IBIT recorded the largest daily net inflow of $872 million on 30 October. 

This coincided with Bitcoin price surpassing the $73,000 level on 30 October before retracing to $68,000 level towards the end of the week.

Weekly Performance

BTC increased by +0.8%, while ETH decreased by -2.6%, in the past seven days. Prices for all other selected top market capitalisation tokens mostly decreased except SUI (+8.6%) and DOGE (+6.6%). NEAR (-14.9%) led the decrease. 

Key categories mostly decreased in market capitalisation change in the past seven days except for Layer-1. The meme category led the drop. 

Notable Token Updates

Newly Listed Tokens in the Crypto.com App

News Highlights

Investment Vehicles

• Hong Kong Exchanges and Clearing (HKEX) will launch a virtual asset index on 15 November, which will include a reference index for BTC and ETH. The reference index is a 24-hour volume-weighted reference spot price of BTC and ETH designed for the settlement of financial products. It aims to provide transparent and reliable benchmarks for investors to make decisions. 

• 21Shares filed for approval of a spot XRP ETF with the US SEC, becoming the third firm after Canary Capital and Bitwise to apply.

Adoption

• Crypto.com announced the acquisition of an SEC-registered broker-dealer and member of The Financial Industry Regulatory Authority (FINRA) and Securities Investor Protection Corporation (SIPC), Watchdog Capital, LLC. This acquisition will enable Crypto.com’s new subsidiary to offer equities and equity options to eligible traders in the US., and is part of Crypto.com’s plan to integrate traditional financial tools with digital financial capabilities. 

• UBS launched a tokenised fund, UBS USD Money Market Investment Fund Token (uMINT), on the Ethereum blockchain to meet growing investor interest in tokenised financial assets. 

• Paxos introduced a new USD-backed stablecoin, Global Dollar (USDG), which aims to meet Singapore’s upcoming stablecoin regulatory framework. Singapore’s DBS Bank plans to support the cash management and custody of USDG reserves. 

• Leading asset manager Wellington Management partnered with Ondo Finance to launch a tokenised US treasury fund, Delta Wellington Ultra Short Treasury On-Chain Fund. Ondo will provide 24/7 redemption capabilities and allow the assets to be used as collateral or cross-border settlement. 

• Tether announced that its United Arab Emirates dirham-pegged stablecoin will be launched on The Open Network. 

Others

• The Crypto.com Exchange was the leading crypto exchange with USD support by spot trading volume in October, claiming the title for the fourth consecutive month, according to data from the Block. Overall USD-denominated spot trading volume for crypto exchanges with USD support in October was $153 billion, 19% higher than that in September. 

• SingularityDAO merged with Cogito Finance and SelfKey to form Singularity Finance. The new entity seeks to consolidate the AI-powered wallet management functions of SingularityDAO and incorporate real-world asset (RWA) tokenisation solutions. The entity will feature a consolidated token, SFI. 

Recent Research Report

• Intent-Based Protocols: Intent-based protocols simplify the user experience and lower the entry barrier. Learn about them in our report.

• Pair Trading: Pair trading is a market-neutral strategy exploiting price movements between two correlated assets. Traders seek pairs with historical correlation, monitoring price spreads to identify long and short opportunities.

• Research Roundup Newsletter [September 2024]: We present to you our latest issue of Research Roundup, featuring our deep dives into AI agents in crypto and pair trading.

Recent University Articles

• Key Macroeconomic Indicators and Their Impact on the Cryptocurrency Market: Learn how GDP, inflation rates, market indices, and interest rates influence the crypto market and how to adjust your trading strategy.

• Understanding AI Scams in Cryptocurrency: Tips to Protect Yourself: AI crypto scams, including celebrity deepfakes, voice cloning, and AI phishes, are on the rise. Here’s how to protect yourself.

• Top NFT Platforms on Solana: Popular Marketplaces in 2024: Solana offers a growing selection of NFT marketplaces. Here’s our selection of some of the most popular ones.

Catalyst Calendar

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