Trakx Weekly Update: January 15
Key Crypto Market Figures
CTIs Weekly Performance
No prizes for guessing the main event in crypto markets last week – the SEC’s decision to give the go ahead for a spot Bitcoin ETF in the US after almost a decade of asking (albeit with a false start – see below). The announcement, which was widely anticipated by the time it came, helped drive the Trakx Top 10 Crypto CTI up by 2.6% over the week. The best performer, however, was new Trakx Recovery CTI, which gained just shy of 20% over the past seven days.
While the seminal cryptocurrency rallied smartly on the first day of ETF trading – hitting almost $49,000, a new cycle high – and despite cumulative trading volumes of $8bn in the first two days, the move up in the Trakx Top 10 Crypto CTI was not driven by Bitcoin. Indeed, the Bitcoin Control15 CTI – a CTI that provides volatility-capped Bitcoin exposure – came bottom of the weekly performance table, declining by 1.6% w/w.
Instead, the star performer amongst the large cap tokens captured in the Trakx Top 10 CTI was Ethereum. Its price rallied 14% over the past week, taking it to 18-month highs after traders’ attention shifted to the prospect that the SEC would green light additional spot crypto ETFs. Indeed, BlackRock CEO Larry Fink, the day his Bitcoin ETF went live, told CNBC that he sees “value in having an ETH ETF” that will serve as “stepping stones towards tokenization” – something we agree will be the next big thing in finance.
Although ETH, the native token of the Ethereum ecosystem, did well it was not the best performing token associated with the project. The token of Ethereum Name Service, a distributed domain name service that replaces alphanumeric wallet addresses and is deployed on the Ethereum blockchain, rallied over 80% amid all the excitement. Because it is the largest component of the Trakx Recovery CTI, it was the primary reason for the solid outperformance last week.
Sources: Trakx, Coingecko, Alphavantage
- Turmoil in Crypto Market — Misleading SEC Post Triggers Significant Bitcoin Volatility: Bitcoin.com.
- BlackRock scoops up 11,500 BTC during dip as ETF leads the pack: CryptoSlate.
- BlackRock CEO Larry Fink Backs Ether ETF: CoinDesk.
- Altcoin Mania and Breakouts Across the Board in Sight As Bitcoin Takes a Breather, Predicts Analyst – Here’s Why: The Daily HODL.
- Circle confidentially files for US IPO: Blockworks.
- Trakx will be attending the Forum du Patrimoine on January 18, 2024, in Paris.
- Ryan Shea published “Crypto's Coming Of Age: Thoughts On The Sec's Recent Decision And Other Things” , explaining why the SEC's decision to green light a spot Bitcoin ETF is not the only indication that crypto is coming of age.
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.