Weekly Update: 2nd of October
What happened between the 25th of September and the 2nd of October?
- President candidate and Vice President Kamala Harris says the U.S. should become "dominant" in digital assets, quantum computing, and other emerging technologies. Read more
- From the 23rd to the 30th of September, U.S. spot Bitcoin ETFs see their largest inflows since July, experiencing over $1.1 billion in net inflows. Read more
- Taiwan Financial Supervisory Commission approves foreign digital assets ETFs for professional investors, slowly opening its door to a market they consider “high-risk”. Read more
Kamala Harris doubles down on digital assets
On September 25th, Vice President and presidential candidate Kamala Harris stated that the U.S. should aim to become "dominant" in blockchain, quantum computing, and other emerging technologies. This statement follows an earlier remark where she expressed support for investments in digital assets during a Wall Street fundraising event. In her economic plan, Harris reaffirms this stance. While she has not been as outspoken on digital assets as Donald Trump, it's notable that the sector is gradually becoming a key topic in both campaigns.
US Bitcoin spot ETFs experience the largest inflow since July
During the week of September 23rd to 30th, U.S. Bitcoin ETFs saw their largest inflows since July, with approximately $1.1 billion in net inflows. The Federal Reserve’s decision to cut interest rates by 50 basis points was well-received by financial markets, boosting momentum in both equities and digital assets. With the prospect of a soft landing appearing more likely, investors shifted to a more aggressive stance, allocating capital to higher-risk investments. These inflows, combined with a more optimistic market outlook, helped Bitcoin rally over 10%, reaching $66,000 before a slight pullback to $64,000. Rising tensions in the Middle East further amplified this correction, as Israel launched a ground offensive in southern Lebanon. In response, Iran attacked Israel, sparking fears of broader conflict. This prompted investors to adopt a risk-off approach, leading to a pullback in financial markets, including digital assets. As a result, there were over $240 million in outflows from Bitcoin spot ETFs, causing Bitcoin to retreat to approximately $61,700.
Taiwan approves foreign crypto ETFs for professional investors
On September 30th, Taiwan's FSC officially permitted professional investors to engage with "foreign virtual asset" ETFs. The FSC stated that this decision is intended to expand product offerings and create more investment opportunities for professional investors, ultimately enhancing Taiwan's financial market competitiveness. While Taiwan has traditionally maintained a cautious stance on digital assets due to concerns over volatility and fraud, this move signals a gradual shift towards greater openness, similar to trends in other financial hubs like Singapore and Hong Kong. By restricting these high-risk investments to professional investors, Taiwan aims to carefully balance increased exposure to digital assets with effective risk management.
In other digital assets news
- DeFi project Ethena plans to launch new stablecoin backed by BlackRock's tokenized BUIDL fund which invests in US Treasury securities. After publication, Athena’s token increased by over 10%.
- According to a Chainlink report, the tokenized asset market will hit $10T by 2030.
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