CBX Weekly Newsletter // 24 Sep 2020
- Bitcoin could go below $10K again
- Supply of Tokenized Bitcoin on Ethereum Now Tops $1.1B
- Nasdaq, SEC-Registered Fund Manager to Launch First-Ever Crypto ETF
Bitcoin could go below $10K again
Bitcoin (BTC) is once again correlated with the stock markets and prices may fall below $10,000 if equities see further sell-off.
BTC fell by 4.5% on Monday to register its biggest single-day decline since Sept. 4.
That came as global stock markets nursed sharp losses and the safe-haven U.S. dollar gained ground on renewed coronavirus fears and uncertainty over the 2020 U.S. election.
According to coindesk.com, European equities are reporting moderate gains at press time, however, futures tied to the S&P 500 index are down 0.3%, signaling scope for extension of Monday’s sell-off.
Historically, September has been a weak month for the S&P 500 and the index performs poorly in October in the U.S. election years, according to crypto analyst Lark Davis.
Gold is currently trading near $1,900 per ounce, representing a 0.4% decline on the day, and fell nearly 2% on Monday. Meanwhile, silver dropped by 7.6% Monday.
Supply of Tokenized Bitcoin on Ethereum Now Tops $1.1B
To the surprise of many, bitcoin (BTC) has been a breakout star in Ethereum’s decentralized finance (DeFi) moment. Taking the form of wrapped or tokenized bitcoin, the digital asset takes the best of both blockchains — bitcoin’s price value and brand along with Ethereum’s programmability — into one highly in-demand token.
Last week alone, the supply of BitGo’s wrapped bitcoins (WBTC) topped 76,000 after setting an all-time record of nearly 21,000 wrapped bitcoins minted within one week.
The week before held the previous record of over 12,200 tokens minted in a single week, according to Dune Analytics.
Why use tokenized bitcoin?
What bitcoin on Ethereum does is simple: It provides liquidity for growing decentralized exchanges (DEX), such as Uniswap. Bitcoin’s current market cap is five times larger than the second largest cryptocurrency, ether (ETH), according to The CoinDesk 20. That money can be put to use making more money.
Tokenized bitcoin allows investors to bring large amounts of value over to the Ethereum network and its young DEX market in a few clicks.
Nasdaq, SEC-Registered Fund Manager to Launch First-Ever Crypto ETF
The first exchange-traded fund (ETF) to broadly track the digital asset market has been accepted to list on the Bermuda Stock Exchange (BSX).
BSX announced last week the Hashdex Nasdaq Crypto Index ETF had been admitted to the list on its trading platform.
The ETF is the brainchild of Hashdex, a Brazilian-based fund manager that has been registered with the Securities and Exchange Commission (SEC) since 2018.
An ETF is a basket of different assets bundled together and traded as a single traditional instrument. The development of such a product for crypto is considered bullish as it makes the asset class more accessible to mainstream investors.
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