Trakx Weekly Update: January 22
Key Crypto Market Figures
CTIs Weekly Performance
With the Bitcoin ETF furore having died down a little, crypto prices held steady last week as evidenced by the Trakx Top10 Crypto CTI dipping by 1.5% over the past seven days. The star performer amongst the Trakx suite of crypto tradable indices was the RWA CTI, which rose 7.9% on the back of a 30% rally in the Pendle token. Conversely, the weakest performer was the ESG CTI, which fell 5% on the week.
While it may not be readily obvious from the price moves, the launch of the Bitcoin ETFs has been rather successful. In terms of assets under management, Bitcoin is the second largest commodity ETF in the US after gold and almost three time the size of Silver, which has been pushed into third spot . The $30bn AUM in the Bitcoin ETF includes the large bag of coins held by Grayscale, a stash that is being consistently eroded as users who were previously locked into the Trust have been constantly selling. Critically though, this selling pressure is being more than offset by the rise in demand for the more competitively priced ETFs offered by the other nine approved ETF providers. Over the first six days of trading, for example, GBTC’s AUM has fallen by $2.8bn versus purchases of $4.0bn by the other ETF providers.
The arrival of Bitcoin spot ETFs has seen many tradfi firms embrace crypto, with several companies releasing adverts to promote the seminal cryptocurrency. However, not everyone in the industry is now a convert. Vanguard notably announced that it would ban all Bitcoin products from its platform, news that has sparked quite a backlash from users last week. Similarly, speaking on the sidelines of the WEF meeting in Davos, JP Morgan boss Jamie Dimon continued to express his less than positive take by equating Bitcoin to a “pet rock” before warning that “Satashi” [sic] will come back to life and erase all of the outstanding supply – a comment that, unsurprisingly, met with considerable derision on crypto-twitter.
Elsewhere, the best performing token in the Top 10 Crypto CTI was Dogecoin. It gained a couple of percent, but at one stage was up over 10%, amid speculation about a potential integration into X (formerly Twitter) payments after a “Xpayments” account was created on the social media platform
Sources: Trakx, Coingecko, Alphavantage
- Bitcoin Instantly Topped Silver in ETF Market and Trails Only Gold Among Commodities: CoinDesk.
- GBTC’s New Bitcoin ETF Lost More Than $1 Billion. Rivals Like Blackrock And Fidelity Are Gaining: Forbes.
- Vanguard unfazed by boycott calls after it refuses to offer Bitcoin ETFs: ‘They won’t lose a single 401k plan over it’: Fortune.
- JPM’s Jamie Dimon believes Satoshi Nakamoto will either increase or “erase” Bitcoin supply: CryptoSlate.
- Dogecoin hits 7-day high as ‘XPayments’ account gains 100K followers in a day: Cointelegraph.
- Ryan Shea was quoted in the Boston Globe “Look who’s bringing crypto back: Fidelity, BlackRock, and their Wall Street friends".
Trakx CTIs Performance
Sources: Coingecko and AlphaVantage
*Return of bitcoin is calculated since 01/05/2020, while CTIs performances were calculated since their respective launch date.
**Includes simulated performance.
***The risk signal is determined according to the historical volatility level, the higher the riskier.