Weekly Market Recap
May 16 — Crypto assets jumped 33.6% this week ($63 billion), bringing the total market cap to $250 billion. The Crescent Crypto Market Index (CCMIX) was up 36.2% while BTC gained 32.1% over the same period.
The strength of last week’s rally took on a life of its own this week as the total value of the crypto market breached $250 billion for the first time since August 2018. Smaller crypto assets played catch up to bitcoin, which has led the market for much of Q2 so far. The world’s largest crypto asset broke above $8,000 this week, its highest level since last summer, as momentum strengthened. Interestingly, BTC now trades at a discount on Bitfinex, a drastic change from last week’s ~3% premium. Bitcoin is currently trading around $7,960.
Bitcoin vs. CCMIX
May 9th — May 16th, 2019
Crescent Crypto Market Index (CCMIX)
May 9th — May 16th, 2019
- ETH and XLM were the biggest gainers this week as both surged over 50%. ETH is currently trading at $260, its highest level since September, putting its year-to-date gain north of 85%.
- ADA, BCH, NEO, and XRP all jumped more than 40% week-over-week.
- Every constituent in the CCMIX gained at least 20% over the last 7 days. TRX was the only asset with a week-over-week return less than 30%.
- BTC lagged some of its large peers, rising roughly 32%, but still remains one of the top performers in Q2 2019.
- BTC dominance fell from 57.2% of the total crypto market cap this time last week to 56.4% today.
What Happened? This week, we finally announced that we have officially filed a registration statement for a cryptocurrency exchange traded product (ETP). We’re partnering with USCF and it will be called the USCF Crescent Crypto Index Fund (NYSE Arca: XBET). We’ll be acting as a co-portfolio manager for the fund providing strategic advisory on cryptocurrency operations, trading, and custody. XBET will track the Crescent Crypto Core II Index, which USCF has licensed from Crescent’s affiliate as its benchmark index.
Why Does This Matter? Our mission since day one was to create innovative investment solutions to make cryptocurrencies accessible to mainstream investors. Our fund will offer investors an index solution to obtain cryptocurrency exposure through a public vehicle. XBET adds to the list of crypto ETFs currencly being reviewed by the SEC. Decisions on two bitcoin ETFs were postponed late in March. While the SEC has not yet approved any crypto ETFs, it may be just a matter of time and we’re looking forward to keeping you updated throughout this process! Feel free to reach out if you have any questions! Read more…
On May 2nd, Cameron Winklevoss, along with his brother Tyler, paid for a Starbucks coffee with the stable coin, Gemini Dollar (GUSD). This event was part of a larger beta test for the cryptocurrency payment app Spedn, in which nearly 100 stores are expected to start accepting cryptocurrency via the app by the end of 2019. Some of the stores include Game Stop, Bed Bath & Beyond, Jamba Juice, Lowe’s, Nordstrom, Office Depot & OfficeMax, Petco, and Whole Foods. Spedn is the first app built on the Flexa Network, an ethereum-based cryptocurrency payment network that aims to challenge the likes of Visa and Mastercard. Interestingly, neither Flexa, the company responsible for Spedn, nor Gemini, the application’s custody solution, were able to receive any confirmation from the inital merchants to talk about this event. While incumbent retailers have been quiet, the technology is speaking for itself with cryptocurrency adoption on the horizon. Check out their marketing video here…
Why Does This Matter?
As Cameron Winklevoss put it, “we’re finally realizing the promise of crypto in payments.” This small action illustrates the positive narrative of ‘just build’ during the crypto bear market. Whether it may be through Gemini rolling out its stable coin Gemini Dollar (GUSD) or Flexa’s new payments infrastructure, what is clear is the move towards tangible use cases in the cryptocurrency ecosystem. Skeptics may remember a similar story in 2017 when first generation companies started to accept cryptocurrency but soon jumped ship due to lack of customer interest during the market crash. What makes this time possibly different is the introduction of better crypto payment UX and stable coins (users are free from price volatility risk). Most importantly, Spedn could save merchants billions of dollars by preventing chargebacks (cryptocurrency transactions are permanent) and through fee reduction. In 2017, chargebacks cost merchants around $31 billion, and credit-card fees totaled to $88 billion in the U.S alone.
CME Group, the largest options and futures exchange, announced that it’s bitcoins futures product recorded a new all-time daily record of 33.7K contracts sold. This record breaks the existing 22.5K record on April 4th a 50% increase with more than $1billion notional value traded. This move coincided with bitcoin price reaching its 10-month high and an all-time high of bitcoin inflows added to Grayscale bitcoin trust. Grayscale Bitcoin Trust’s (GBTC) assets under management are valued at around $1.42 billion and demand a premium of 40% that has increased consistently month-over-month in 2019.
Why Does This Matter?
The all-time high volume in the bitcoin futures market is a clear signal for rising institutional demand. In combination with all-time high Grayscale bitcoin inflows and the recent price rally in the spot market, Bitcoin may be well out of the bear market, and signs point to institutions as the key drivers of this rally. The sudden movement in the volume of CME bitcoin futures and Greyscale’s growing premium reconfirm this shift in market sentiment.