DigitalX Funds Weekly Wrap (18 Nov - 25 Nov 2022)
DigitalX Limited (ASX:DCC)
Transparent investment management at the intersection of technology and finance #Web3 #DigitalAssets
Statement on FTX, Alameda and Genesis.
The DigitalX Funds do not have any exposure to FTX, Alameda or Genesis. As reported in the AFR article on November 8, our DigitalX actively managed fund liquidated our FTT holding on Monday 7 November 2022. 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?
According to an official document published on Nov. 21, 2022, JPMorgan has officially registered and patented the “J.P. Morgan Wallet” under the United States Patent and Trademark Office (USPTO).
This new enrollment will see the legacy bank offer crypto and bitcoin services to its existing pool of customers. Mike Kondoudis, USPTO licensed trademark attorney, tweeted that the approval meant JPMorgan would now provide “Virtual currency transfer + exchange, Crypto payment processing, Virtual checking accounts, and Financial services.”
领英推荐
?itcoin (BTC)
Bitcoin mining difficulty has increased by 0.51% after the latest adjustment, according to an update posted Sunday evening on BTC.com. The network's hash rate has fallen 3.8% since Nov. 6, the date of the last update to mining difficulty, according to data compiled by The Block Research. Some of the biggest Bitcoin mining companies have been struggling to stay solvent, with Core Scientific announcing that it would miss payments at the end of October. Argo Blockchain. meanwhile, is selling 3,843 mining machines for cash.
Ethereum (ETH)
Ethereum developers have released a developer network to test validator staking withdrawals, a feature currently missing on the network. Ethereum developer Marius Van Der Wijden said the devnet will help prepare Ethereum to open up validator staking withdrawals next year with a planned upgrade called Shanghai.?
“It's the first devnet that enabled withdrawals on all of these implementations and is a big step forward," Van Der Wijden told The Block. "It also helps other clients to test their implementations by joining the network.”
Ethereum core developers are moving toward putting EIP-4844 — a highly-anticipated scaling proposal — live in a future mainnet upgrade, according to an Ethereum core developer meeting. EIP-4844 aims to improve the scalability of Ethereum beyond what's available with Layer 2 solutions. It will introduce a new kind of transaction format to Ethereum called "shard blob transactions,” allowing for off-chain data to be stored and accessed by Ethereum nodes temporarily to address scaling needs of blockchain apps.?
CEO Comment
At the time of writing the Crypto world is bracing itself for further contagion from the FTX fallout, though it appears that some of the incumbents are restructuring and there may not be as huge a market shock as we are expecting. There is a possibility of a short covering rally. Another point of view is that? although the probability seems high that we will see further Chapter 11’s - the question is what is priced in already (apologies if I state the obvious) - it could be a sell the rumour, short cover the fact. Given the continued uncertainty in the market the gap we have been watching has stayed steady at 58% though a short covering rally could see the gap close.
JP Morgan wins the shift list this week with registering a trademark for a Crypto wallet - it has been widely known there are huge interbank volumes being tested in their ecosystem with their “Diamond dollar” to the tune of trillion of dollars in volume - bringing this capability to consumer wallets could be a global gamechanger. The Binance Crypto recovery fund is gaining traction and as much as I think it is positive I do think a better thing for the industry would for a governing body to have meaningful stakes in top tokens to remove the credibility issue that will now be associated with founders having large controlling stakes in their own tokens - we have developed new guardrails in our investment process - a founders v foundation metric, penalising tokens and reducing our risk exposure to tokens where founders can make meaningful and potentially detrimental decisions for the ecosystem and having larger risk limits in tokens that are governed by foundations with structure and methodologies or powerful, good, democratic communities and sound decision making processes.
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/.