Trakx Weekly Update: March 25

Weekly Update
• Mar 25, 2024
Trakx Weekly Update: March 25

Key Crypto Market Figures

Trakx Weekly Update: March 25

CTIs Weekly Performance

The crypto rally that has been in place since late January faltered last week, with the Trakx Top10 Crypto CTI declining just under 5%. As is often the case in such situations, the biggest loser in the correction was the previous market darling. In terms of the Trakx suite of Crypto Tradable Indices, this meant the AI CTI, which fell just under 13% over the prior seven days. Declines such as these may be large by the standards of Tradfi assets, but one must also recognize that they come after some pretty hefty gains. In fact, even after the recent pull back, year-to-date returns for the Top 10 Crypto CTI and the AI CTI stand at 43% and 145% respectively.

The standout performer last week was the RWA (real world asset) CTI, which managed to shrug off the general malaise impacting crypto asset markets, gaining 11% over the prior seven day period. Looking into the constituent tokens, it is clear the rally was fairly broad-based with only Chainlink and Mantra declining in value last week. This is testament to the conviction investors have that RWA will be the next big thing, not just in crypto but finance more generally. Indeed, bolstering such anticipation BlackRock, a Tradfi behemoth that has definitely caught the crypto bug, last week announced the release of its USD Institutional Digital Liquidity Fund (BUIDL) – a $100m tokenized fund that runs on the Ethereum blockchain and is backed by cash, US Treasury bills and short-term repos.

Offsetting this positive development for the Ethereum ecosystem was the revelation that the Foundation behind the blockchain was under investigation by an unnamed “state authority”. Given the looming deadline for the SEC decision as to whether or not to permit a spot ETH ETF, the news sparked speculation that they were the authority in question. If true, such scrutiny may be just be the SEC carrying out the necessary due diligence. However, some crypto players saw it as a sign that an ETH ETF was not a slam dunk just because they have green lighted a Bitcoin ETF, especially amid the ongoing controversy as to whether ETH is a security or not following its transition to Proof-of-Stake.

On the subject of the Bitcoin ETF, the past five days (business days not calendar days because unlike our CTIs ETFs do not trade 24/7) saw steady outflows on aggregate. In the short-life of these products this is somewhat unusual. However, looking at the underlying flows the source of persistent selling is not that unusual. Gray Scale continued to shed AUM, but unlike prior weeks this selling was not fully offset by inflows to the nine ETFs.

Trakx Weekly Update: March 25

Sources: Trakx, Coingecko, Alphavantage

Market Trends

  • BlackRock Enters Asset Tokenization Race With New Fund on the Ethereum Network: CoinDesk.
  • Ethereum Foundation Faces Inquiry From a Government; Fortune Says SEC Investigating ETH: CoinDesk.
  • Much of GBTC's outflows come from Genesis selling shares, says analyst: The Block.
  • Why anonymous crypto wallets are NOT being banned in the EU: CryptoSlate.
  • Apple Macs Have a Fatal Flaw That Lets Hackers Steal Your Crypto—And There's No Fix: Decrypt.

Trakx News

  • Lionel Rebibo participated in a panel organised by Wave Online entitled “Crypto: back in the spotlight?”.
  • Ryan Shea published an Insight piece entitled Crypto Is Trendy.

Trakx CTIs Performance

Trakx Weekly Update: March 25

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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