[27 September - 4 October 2024] DigitalX Weekly Crypto Update: Market Trends and Analysis

Weekly Price Action

*All figures below are in USD unless otherwise specified.

This week in crypto...

• Bitcoin hits $65K for first time since early August, renewing investor interest in spot ETFs
• Bitcoin ETFs bleed $242.6M, biggest outflow since Sept. 3
• Fidelity Ethereum ETF records largest daily outflows since launch
• Digital Asset’s Canton Network tokenises gold, Eurobonds, gilts
• Franklin Templeton adds Aptos blockchain to support tokenised money market fund
• Australian bank joins Project Guardian to explore RWA tokenisation
• Bitwise files SEC paperwork to launch spot XRP ETF
• Crypto legislation unlikely to gain traction before end of the year: TD Cowen

1?? The Big Shift - The transition to Web3

Bitwise has officially filed with the SEC for a spot XRP ETF, making it the first asset manager to pursue an ETF that singularly holds XRP. The ETF would hold XRP directly, similar to Bitwise's existing Bitcoin and Ethereum ETFs. Bitwise CEO Hunter Horsley stated “at Bitwise, we believe blockchains will usher in new, apolitical monetary assets and permissionless applications for the 21st century”. While the filing represents continued progress in the general adoption of digital assets as investment products, the SEC Chair Gary Gensler has yet to signal support for ETFs beyond Bitcoin and Ethereum. This move follows VanEck’s filing for a Solana ETF earlier this year.

2?? Store of value > Medium of exchange > Access to credit

Digital Asset’s Canton Network successfully tokenises gold, Eurobonds and gilts in pilot project. In partnership with Euroclear and the World Gold Council, the project brought together 27 unnamed market participants, including 11 observers, on the Canton testnet, conducting asset tokenisation for collateral usage in over 500 real-time atomic transactions split into six categories. The report established tokenisation as a more cost-effective trading system, estimating it could save 35-65% across the settlement value chain. Following the current pilot, Digital Asset plans to collaborate with interested market participants to develop a production solution based on the same infrastructure.