DigitalX Funds Weekly Wrap (11 Nov - 18 Nov 2022)
DigitalX Limited (ASX:DCC)
Transparent investment management at the intersection of technology and finance #Web3 #DigitalAssets
Statement on FTX and Alameda: The DigitalX Funds do not have any exposure to FTX.?
As reported in the AFR article on November 8, our DigitalX actively managed fund liquidated our FTT holding on Monday. FTT is now down 93% from our exit price. This demonstrates our disciplined risk management strategy, using a combination of top down and bottom-up fundamental research to assess our portfolio composition. The majority of DigitalX Fund assets are secured with an institutional grade custodian with insurance.?
Weekly Price Action *All figures below are in USD unless otherwise specified.
Week in review
The Shift List
Market Updates
Macro/Regulatory Updates
In the spotlight?
CIRCLE - "We’re excited to announce that eligible businesses who build with Circle can now help further boost their sales by accepting Apple Pay — an easy, secure, and private way to pay. Customers can quickly checkout using the devices they carry every day. Apple Pay is also a safer and faster way to pay using the Safari browser and in apps because customers will no longer have to create an account or fill out lengthy forms. This can be especially powerful for crypto-native businesses, since it can help them create stronger connections with customers who want to pay using more traditional methods and even enable them to buy crypto with Apple Pay on their preferred exchange. In fact, Apple Pay and Circle’s Payments solution make it possible for crypto-native businesses to accept payments from customers who don’t use crypto at all. NFT marketplaces, crypto gaming, crypto exchanges, crypto wallets and cross-border remittance providers can help their business grow by making checkout easy with Apple Pay and Circle".?
Altcoins
Ripple - (XRP) On Thursday, James Filan, a former federal prosecutor who is representing Ripple Labs, tweeted a court document revealing that U.S. District Judge Analisa Torres had granted several parties, including industry group the Blockchain Association and major cryptocurrency exchange operator Coinbase, Inc., the ability to file amicus briefs, also known as “friend of the court” briefs.
领英推荐
?itcoin (BTC)
Hosting provider Applied Digital, formerly known as Applied Blockchain, secured a $15 million loan deal with Vantage Bank Texas to expand its operations in that state. The company has so far borrowed nearly $4.7 million, it said in a document filed with the U.S. Securities and Exchange Commission Monday. Other companies in the mining industry have been struggling to meet debt payments, with Iris Energy recently defaulting on over $100 million in debt and Core Scientific, the biggest mining company in terms of hash rate, floating the possibility of bankruptcy. Applied Digital's deal includes 16 instalments of up to $937,500, with a 6.15% fixed interest rate. The loan matures April 2028.
Ethereum (ETH)
Matter Labs, the parent company of Ethereum scaling protocol zkSync, has raised $200 million in a Series C round. Blockchain Capital and Dragonfly led the investment, with participation from LightSpeed Venture Partners, Variant, and Andreessen Horowitz — who had led the previous $50 million Series B round — according to a statement. Matter Labs did not disclose the valuation. The funds from its Series C round will be used to launch first-party projects built by Matter Labs itself, grow the Matter Labs team and fund projects built by external parties. It will also be used to start Matter University, which will act as its onboarding and education platform for users and builders.
CEO Comment
Another volatile week with fallout from FTX playing out - Taking a positive tangent outside of the obvious market volatility, the “proof of reserves” work in the market is a good step AND it is all dependant on who owns the wallet - so it still begs for scrutiny - e.g. the issue with FTX now appears to be clients deposited funds to Alameda and those funds were never transferred over therefore Alameda technically owned the funds - literally crazy - read here for my speechless post.
As mentioned on our analyst call all of our funds are stored in best in class cold storage wallets and are only on select exchanges briefly when we need to rebalance. Our service provider, BitGo provides an API and we are working to develop a solution for you to receive proof of unit updates over and above. Jeremy and myself are happy to chat if you have any questions on that.
We have been following the “gap” each week which is the reversion we expect crypto markets to make up and close as events settle down. This week the gap remained somewhat steady at 57% vs 56% the week prior. The gap is measured from top of SPY and BTC till the date of writing.
In terms of the shift list Apple Pay partnering with Circle is huge - in our industry we call this an “on-ramp” for clients to start transacting entirely in Web3 “rails” - via stable coins and potentially Central Bank Digital currencies which we see as the future of all payments.?
Also a slightly logical yet unexpected shift is the increase in ETH staking yields as it seems a flight to quality has seen a significant increase in network volumes. It would be remiss of me not to speak about the ASX halting the CHESS replacement project which we see as a set back for Australia and may see a big shake up of registries in our country.?
About DigitalX
DigitalX Ltd (ASX:DCC) is a leading ASX-Listed Bitcoin and digital asset funds management business. The Company has a 9 year track record mining Bitcoin, blockchain and smart contract development. DigitalX Asset Management is the investment manager of digital asset investment products that provide qualified investors with highly secure and streamlined access to digital asset exposure. To learn more contact the team at [email protected] or visit our website https://digitalx.fund/.