Weekly Update: 23rd of October
What happened between the 16th and 23rd of October?
- While it continues to create blockchain-based choices for institutional clients, DBS, the largest bank in Singapore, launches 'Token Services' to facilitate blockchain-based banking. Read more
- Digital asset manager Grayscale files to convert its multi-crypto fund into an ETF, the fund holds Bitcoin, Ether, XRP, Solana, and Avalanche. Read more
- Bitcoin Dominance hits a 3.5-year high, gaining additional ground against the altcoin market. Read more
- US Bitcoin spot ETFs experience over $2 billion in net inflows with BlackRock’s IBIT leading the way with over $1.1 billion net inflows. Read more
DBS launches “Token Services”
On the 18th of October, DBS, Singapore’s largest bank launched a range of new services called “DBS Token Services”. These new banking products include tokenization and smart contract-enabled capabilities which are already integrated into its existing services. According to DBS’s statement, the DBS Token Services incorporated the bank's main payment engine, many industry payment infrastructures, and a permissioned blockchain with Ethereum’s Virtual Machine. In partnership with Ant International, the bank also unveiled Treasury Tokens in August, enabling global firms to settle intra-group transactions in many currencies.
Grayscale aims to convert its multi-crypto fund into an ETF
On the 16th of October, news broke that digital asset manager Grayscale had filed with the Securities and Exchange Commission to convert its Grayscale’s Digital Large Cap Fund to an ETF. Digital Large Cap Fund holds over $500 million in assets divided into a 76% allocation in Bitcoin, 18% to Ether, and the remaining assets are divided into Solana, XRP, and Avalanche. In recent months, Grayscale has been actively expanding its range of investment products by launching new trusts for assets like Bittensor, XRP, and others. This could be part of a long-term strategy to eventually introduce these assets to traditional investors through ETF conversions.
Bitcoin remains the dominant narrative
Throughout 2024, Bitcoin has been the dominant narrative mainly attributed to the successful introduction of the US Bitcoin spot ETFs. As a result, Bitcoin’s price has steadily been rising while altcoins haven’t really experienced strong upward momentum. This has resulted in a 3.5-year high in Bitcoin Dominance, Bitcoin’s market share against all other assets, at approximately 60%. Historically, digital assets have suffered from Bitcoin's growing dominance. Market analysts, however, anticipate that this will mark a peak, potentially triggering a reversal and allowing the altcoin market to rise. In a recent article, we discussed how Bitcoin dominance needs to increase before we can see a revival in the altcoin market. You can read the article here.
US Bitcoin spot ETF experiences massive net inflows
In the week of 14 - 18 October, the US Bitcoin spot ETFs experienced massive net inflows as they attracted over $2 billion across 11 products. Among the eleven issuers, BlackRock’s IBIT experienced $1.1 billion in net inflows, even attracting $393 million in a single day. This surge in inflows can be attributed to various factors, including growing macroeconomic optimism and the looming US presidential election with a potential Trump return. But the argument can also be made that institutional adoption is driving the demand. For example, on the 18th of October, investment bank Morgan Stanley disclosed that it holds $272.1 Million Worth of Bitcoin ETF.
In other digital assets news
- The FBI arrests a 25-year-old man in Alabama who presumably is behind SEC fake Bitcoin ETF approval which caused Bitcoin’s price to surge by $1000 and then fall by $2000.
- Italy plans to raise capital gains tax on bitcoin from 26% to 42%, this news was received negatively by the Italian crypto community but Bitcoin’s price remained unaffected.
- Donald Trump's new digital assets project, World Liberty Financial, flopped, raising only $10 million out of its $300 million goal.
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