Trakx Weekly Update: October 21

Key Crypto Market Figures

CTIs Weekly Performance

Last week was a positive one for digital assets, as reflected in our benchmark Top10 Crypto CTI gaining 7%. The top performing sector last week, however, was the DEX CTI, up a solid 10%, closely followed by the Gaming and Bitcoin-Ether CTIs, both of which rose by over 9%. Such was the breadth of the rally that none of the Trakx CTIs were in the red, with the weakest performer being the Lending CTI, which gained just shy of 1% over the preceding seven days.

Helping Uptober finally get its funk on was heightened speculation that Trump would beat Harris in next month’s presidential election. Given Trump has been actively polishing his pro-crypto credentials over recent months, in contrast to Harris whose support for digital assets has been at best lukewarm, any improvement in his chance of winning fuels a rise in prices as investors anticipate a more favourable regulatory environment (certainly relative to that observed under the Biden administration).

The latest boost came after Harris had a less than flawless interview with right-leaning channel Fox News and her surprise decision not to attend the Al Smith dinner – a long-standing calendar event in US presidential elections that every candidate over the past 40 years has attended. Opinion polls suggest that Harris remains ahead, but her lead has dwindled such that it is best described as wafer thin. In contrast, the implied odds of a Trump victory on the betting platform Polymarket rose to 60% last week after a five point surge. Concomitant with this rise, BlackRock’s Bitcoin ETF recorded over $1bn in net inflows during the past week – the sixth largest inflow since the ETF launched back in January. Following these inflows, BlackRock now owns over 386,000 BTC or 1.8% of Bitcoin’s 21 million supply cap.

While crypto investors may view a Trump return to the White House as a positive this did not extend to World Liberty Financial – a DeFi project strongly affiliated with Trump and his sons which launched its token last week. The sale was rather lacklustre as the token could only be purchased by KYC-ed accredited US investors, putting it beyond most crypto punters. In addition, the token was neither tradable nor transferable, liquidity crushing traits that do not readily appeal to investors, whether accredited or not.

Finally, the overlap between AI and crypto increased further last week after an AI agent – Truth Terminal – helped propagate a meme token GOAT created by a team of devs inspired by the AI agent’s postings on its autonomously managed twitter account. The token (full name Goatseus Maximus – I kid you not!) has already achieved a market cap of over $360m.

Sources: Trakx, Coingecko, Alphavantage

Market Trends

• Bitcoin ‘Trump Trade’ Returns as BlackRock’s ETF Brings in Another $1 Billion: Decrypt.
• Harris explicitly announces support for crypto just weeks before election: CryptoSlate.
• 5 reasons why Trump’s World Liberty Financial token crashed and burned: Cointelegraph.
• The mysterious AI memecoin GOAT soars 57%: ‘I immediately aped in’: DL News.
• Tesla Transfers $760 Million in Bitcoin to Unknown Wallets, Fueling Sale Rumors: Yahoo Finance.

Trakx News

• We are pleased to announce that the TRKX token has successfully listed on Gate.io, MEXC, Bit2me, BingX, and Quickswap, with daily volumes already surpassing $1 million. The team is diligently working on developing token utilities, including staking options and discounted fees on the Trakx platform. Stay tuned for more updates by following our official social media accounts!

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.

Trakx is a global fintech company creating new standards for digital asset investments. Through our trading platform, we offer thematic Crypto Tradable Indices (CTIs) and customised solutions, providing sophisticated investors with a high degree of compliance, custody and liquidity.

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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.