Trakx Weekly Update: July 29

Key Crypto Market Figures

CTIs Weekly Performance

Crypto prices drifted higher for much of the past several days but such was the depth of early losses that weekly returns stayed in the red as evidenced by the 3% decline in the Trakx Top10 Crypto CTI. The best performer last week was the Bitcoin Momentum CTI, which gained 2%, while the Diversifier CTI was at the bottom of the performance table, losing 13% over the period.

Once again crypto players had US politicians to thank for the turnaround in prices with former US president and Republican nominee Donald Trump amping up his team’s pro-crypto stance by backing the establishment of an official US Bitcoin reserve. According to his plan, the federal government would maintain ownership of all the 210,000 BTC (worth approximately $13bn) that it has seized over the years as a result of criminal proceedings. This proposal does not go as far as R F Kennedy Jr, the third-party contender in this year’s Presidential race, who proposed the US government directly buy Bitcoin in the secondary market to establish a 4 million BTC reserve. Nevertheless, it is positive because it reduces the threat of official selling, which as the recent German action illustrates can have a detrimental impact on the price of Bitcoin and crypto more generally.

Also during his speech at the Bitcoin 2024 conference held in Nashville, Trump announced that on his first day in office he would fire current SEC head Gary Gensler and end the “persecution” of the crypto industry by US regulators. Given the negative approach the SEC has adopted towards crypto under the stewardship of Gary Gensler, this pledge proved to be rather popular with the crowd judged by the strength of the cheer that it generated.

Elsewhere, the US last week launched its second set of spot crypto ETFs with eight investment firms introducing Ethereum ETFs. Reminiscent of what was observed when the spot Bitcoin ETF launched back in January, there was a large discrepancy between Grayscale, whose ETF was created via the conversion of its ETH trust, and the other newly launched ETFs. While Grayscale witnessed outflows totalling $1.5bn as investors sought to leave the previously hard to exit Trust, only $1.2bn was absorbed by net purchases of the other ETFs (BlackRock was again the most successful AUM raiser). As a result, the ETH ETF witnessed a cumulative net outflow of $340m in its first week of trading, flows that combined with a classic “buy the rumour, sell the fact” price dynamic, contributed to pushing down the ETH price by as much as 7% at one stage.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• Trump Backs U.S. Bitcoin Reserve and Says Democrat Win Will Be Disaster for Crypto: ‘Every One of You Will Be Gone’: Coindesk
• Trump vows to sack SEC boss and end “persecution” of crypto industry: Financial Times
• Harris campaign aims to repair Democratic Party ties with crypto sector: Cointelegraph
• Experts react to spot Ethereum ETFs debut, compare it to Bitcoin ETF launch: The Block
• Maker aims for $100bn stablecoin despite AI delay: DLNews
• Ferrari extends cryptocurrency payment system to Europe after US launch: Reuters

Trakx News

• We heard our community’s feedback and have an important update for you: Trakx now accepts more currencies for deposits!
  • USDC (Arbitrum, Base, Ethereum, Avalanche, Polygon)
  • BTC
  • ETH (Arbitrum, Ethereum, Base)
  • LTC
  • USDT (Arbitrum, Ethereum, Avalanche, Polygon)

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.

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Disclaimers: No Investment Advice. Index returns and statistics are for illustration only. Index returns do not reflect any transaction costs or expenses. Past performance does not guarantee future results. The information provided in this newsletter does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the newsletter content as such. Trakx.io does not recommend that any cryptocurrency should be bought, sold, or held by you. Readers shall conduct their own due diligence and consult their financial advisors before making any investment decisions.