DigitalX Funds Weekly Wrap (23-30 June 2023)
DigitalX Limited (ASX:DCC)
Transparent investment management at the intersection of technology and finance #Web3 #DigitalAssets
Weekly Price Action?
*All figures below are in USD unless otherwise specified.
Market commentary
Crypto markets continued to garner significant attention this week following more spot Bitcoin ETF filings. Fidelity has now officially filed for its own spot Bitcoin ETF product and HSBC Hong Kong now allows customers to trade both Bitcoin and Ether ETFs. Volatility Shares also launched the first leveraged Bitcoin futures ETF after an approval from the U.S. Securities and Exchange Commission. ProShares’ Bitcoin Strategy ETF had its largest weekly inflow in a year, with a reported $1 billion worth of Bitcoin futures now being held. Grayscale on the other hand recorded an estimated $44.13 million in revenue from its Grayscale Bitcoin Trust (GBTC) - its best month in over a year. And to top it all off, MicroStrategy just acquired an additional 12,000 BTC for USD $347 million to add to its current treasury holding of 152,333 BTC worth over USD $4.6 billion at current value.
On the tokenisation front, our very own DigitalX Limited has officially launched its real world asset tokenisation fund, the DigitalX Asset Reference Token Fund (“DxART Fund”, “the Fund”). The Fund has been established to offer wholesale investors exposure to multiple pools of digital tokens backed by different types of real world assets, and complements the Company’s existing funds management products, the DigitalX Bitcoin Fund and the DigitalX Digital Asset Fund. The digital tokens represent a ‘digital twin’ of the real world asset and enable ownership of those assets to be more easily fractionalised.
CEO comment
The Gap between Bitcoin and the S&P 500 continued to grind lower this week as institutional interest in BTC seems to be increasing. It is very interesting to see this narrative around “Bitcoin dominance” really taking hold and continuing to trend upward.
This week for the shift list we finally make the top of our own list:
In our Digital Assets Fund we continue to invest in the underlying rails that empower the creation of real world asset tokenisation with a strong focus on:
Lisa Wade (she/her) , CEO DigitalX
Week in review
The Shift List
领英推荐
Market Updates
Macro/Regulatory Updates
In the spotlight?
DigitalX has now launched its real world asset tokenisation fund, the DigitalX Asset Reference Token Fund (“DxART Fund”, “the Fund”). The Fund has been established to offer investor exposure to multiple pools of digital tokens backed by different types of real world assets, and complements the Company’s existing funds management products, the DigitalX Bitcoin Fund and the DigitalX Digital Asset Fund.
The concept of real world asset tokenisation changes how funding and financial transactions occur by digitising assets and the investment selection process through the use of fractionalisation, automation and tokenisation.
?itcoin (BTC)
Asset management giant Fidelity is rejoining the mad rush for a spot bitcoin ETF, according to a Thursday filing set for U.S. Securities and Exchange Commission. It follows other firms like BlackRock, WisdomTree and Invesco, which have all made similar filings in recent weeks. A 19b-4 filing posted by Cboe on its website shows the new plans for the fund. Called Wise Origin Bitcoin Trust, FD Funds Management LLC is the sponsor of the Trust, while Fidelity Digital Assets Services will be responsible for custody of the trust’s bitcoin, according to the filing. "A meaningful portion of our customers are interested in and own digital assets," a Fidelity spokesperson said in an emailed response to questions from The Block.
The first leveraged Bitcoin futures exchange-traded fund became effective on Friday after not being rejected by the U.S. Securities and Exchange Commission. The Volatility Shares 2x Bitcoin Strategy ETF, or BITX, is due to start trading on Tuesday, Stuart Barton, chief investment officer at Volatility Shares, said in an email. CoinDesk first reported the news. BITX will look to provide two times the return of a bitcoin futures index on a daily basis.
The Cboe BZX Exchange on Wednesday amended a 19b-4 filing for the proposed ARK 21Shares Bitcoin ETF to include a feature similar to one used for a spot bitcoin fund planned by BlackRock. Specifically, the revised filing includes a surveillance sharing agreement to deter fraud and market manipulation. The Exchange is proposing to take additional steps to those described above to supplement its ability to obtain information that would be helpful in detecting, investigating, and deterring fraud and market manipulation in the Commodity-Based Trust Shares,” Cboe BZX said in the updated filing.
Ethereum (ETH)
As a number of asset managers line up to gate-crash the crypto fund world with new spot bitcoin ETFs, industry incumbent Grayscale quietly posted its best month in estimated revenues since May 2022. According to The Block's data dashboard, Grayscale — a subsidiary of Barry Silbert's Digital Currency Group — clocked in an estimated $44.13 million in revenue from its flagship Grayscale Bitcoin Trust (GBTC) and Ethereum fund, ETHE. The calculation is based on the value of the funds' total U.S. dollar holdings each month multiplied by Grayscale's fees. GBTC has a 2% annual fee and ETHE has a 2.5% annual fee.
HSBC Hong Kong, the largest bank in the special administrative region of China, now allows customers to trade Bitcoin and ether exchange-traded funds (ETFs) listed on Hong Kong's stock exchange. There are three crypto ETFs listed on HSBC Hong Kong's investment platform — CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF and Samsung Bitcoin Futures Active ETF — as per screenshots of the platform seen by The Block. Colin Wu, a Chinese crypto reporter, first reported the news. The news means Hong Kong-based users can now easily trade crypto ETFs at the bank. The development marks HSBC Hong Kong as the first bank in the region to allow trading in crypto ETFs, according to Wu, who says the ETF listings occurred today.
CME Group, a derivatives exchange that allows clients to trade various financial instruments, announced it is launching ether-bitcoin ratio futures so people can speculate and trade on the price correlation between the two digital currencies. The derivatives exchange said it plans to roll out the option to invest in the new futures by the end of next month. The its plan is "pending regulatory review," CME said in a statement.
"Historically, ether and bitcoin have been highly correlated; however, as the two assets have grown over time, market dynamics may affect the performance of one more than the other, creating relative value trading opportunities," Giovanni Vicioso, CME Group's global head of cryptocurrency products, said in the statement.
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/.