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Bullish Insights Weekly Market Recap

Feb 9, 2024 3 min read

Bullish exchange

This week’s peak spot exchange trade volume (24h): 849,131,480 on February 8th, 2024.

This week’s headlines

  • LPL's executive emphasizes the upcoming three months as a decisive period for evaluating which new funds will be offered to their clients, with the company's history of ETF closures due to shifting investment trends in mind. The wealth manager oversees $1.4 trillion in assets with over 17,000 financial advisors.
  • Genesis Global Capital has sought permission from a U.S. Bankruptcy Court to sell its investments in the Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG), worth about $1.6 billion. The request was made to prevent market volatility from diminishing their value and maximize creditor returns according to debtors.
  • Coinbase is set to include Helium Mobile (MOBILE) in its listing roadmap. Helium Mobile operates within the Helium ecosystem, providing a decentralized 5G network structure and rewarding participants with tokens for network coverage verification. Built on the Solana Blockchain, Helium uses HNT as its primary token, with MOBILE tokens backing 5G services.
  • Oobit, a mobile payments app, announced a series a funding round of $25 million. The investment was spearheaded by the investment branch of Tether, CMCC Global's Titan Fund, 468 Capital, and Solana co-founder Anatoly Yakovenko.
  • South Korea's main financial regulator, the Financial Supervisory Service (FSS), plans to consult with the U.S. SEC on the adoption of spot Bitcoin ETFs, as part of its 2024 strategy announced by FSS chief Lee Bok-Hyun. This strategy includes trips to major financial centers such as New York in Q2 to discuss details of South Korea's financial market, especially regarding Bitcoin ETFs.
  • MicroStrategy has expanded its Bitcoin holdings by purchasing an additional 850 BTC at a cost of $37.2 million, bringing its total Bitcoin holdings to 190,000 BTC.
  • In a bid to establish itself as a hub for digital assets, Thailand has prolonged the value-added tax (VAT) relief for cryptocurrency transactions, local reports state. The Bangkok Post revealed on Wednesday that the Ministry of Finance has waived the 7% VAT on profits from crypto trading starting January 1, 2024, indefinitely. This exemption also applies to SEC-regulated brokers and dealers.

Equity markets

  • Monday’s trading session saw US equity markets close on a low with bond yields jumping 14 basis points to 4.16% after dampened expectations of a March rate cut by the Fed. The S&P 500 fell 0.3%, the Dow dipped 0.7% and the Nasdaq Composite was down by 0.2%.
  • On Tuesday, stocks saw a slight increase, maintaining stability following a minor pullback. The Dow Jones Industrial Average climbed by 0.4%, the Nasdaq Composite inched up by 0.1%. Meanwhile, the S&P 500 made a 0.2% gain.
  • US equity markets saw a strong rebound in Wednesday’s session with nine of the 11 sectors in the S&P 500 closing in the green. The S&P 500 climbed 0.8%, the Dow industrials rose by 0.4%, and the Nasdaq Composite gained 1.0%.

Crypto market highlights

  • The below graph shows the change in TVL across the current top 5 chains excluding Ethereum. BSC once dominated market share but since the collapse of Luna it has since seen a sharp decline in TVL succeeded by Tron. In terms of market dominance Tron ranks second behind Ethereum at $7.97bn in TVL followed by BSC with $3.58bn and Solana with $1.63bn. When observing the total stablecoin marketcap issued on each chain relative to the protocol’s total TVL all protocols have relatively low figures with Ethereum, BSC, Solana Arbitrum, and Polygon at 0.95, 1.04, 0.62, and 0.67 respectively. The one outlier is Tron with a stablecoin marketcap to TVL value of 6.42. The protocol has $51bn in stablecoin marketcap versus a $7.97bn TVL.
  • Last week, digital asset investment products saw a round of major inflows at $708mn. Bitcoin saw majority of inflows of $702.7mn, Ethereum saw minor outflows of $2.4mn and short bitcoin also saw outflows of $5.3mn. Other alts like Solana, Cardano and Litecoin saw inflows of $13.4mn, $0.6mn and $0.3mn respectively. By region, the United States and Switzerland saw the bulk of inflows at $720.7mn and $20.9mn respectively. Canada and Sweden saw the largest outflows by region of $31.3mn and $8.2mn respectively.
  • The total AUM of US spot Bitcoin ETFs is at $27.74b. GBTC has progressively seen outflows since January 11, with its market share dipping from over 97% to 72% on February 5. Blackrock’s IBIT and Fidelity’s FBTC on the other hand gained to 11% and 9% dominance respectively. GBTC’s fee structure remains relatively high at 1.5% compared to the 25 basis points offered by Blackrock and Fidelity.

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