What happened this week in the world of blockchain and cryptocurrencies? The most relevant local and international events as well as appealing background reports in a concise and compact weekly review.
Selected articles of the week:
Just a few months ago, Bitcoin was trading below $30,000. Although some recovery occurred following the FTX debacle, explosive price growth only began with BlackRock’s entry into the race for the first spot Bitcoin ETF. And the products did not disappoint. Within seven weeks, the fund from the world’s largest asset manager broke through $10 billion in assets under management (AuM). Competitors also gathered substantial sums. The enormous rush to Bitcoin ETFs had a direct impact on the price. Since the beginning of the year, Bitcoin has gained an additional +46%. The all-time high of $69,000 is now within reach.
A complete overview of the day’s events on the crypto markets. Compactly summarized in the CVJ.CH Market Commentary.
On-chain analysis of Bitcoin ETFs
The new Bitcoin funds differ from previous products in one key aspect. They are based on actual (“spot”) Bitcoin rather than derivatives. For each ETF share issued, the issuer must acquire Bitcoin. Since the cryptocurrency operates on a fully transparent network, analysts can observe all fund movements directly on the blockchain. This allows published data from providers to be verified for accuracy, revealing some interesting patterns.
With all of the recently approved Bitcoin ETFs being spot based, data analysts can examine the on-chain footprint of these funds.
Swiss federal railways (SBB) embraces blockchain
Since 2020, the Swiss Federal Railways (SBB) has been experimenting with blockchain technology. In collaboration with the Slovenian software company OriginTrail, the railway company is utilizing the technology for transparent and trustworthy data delivery in supply chain management. Ziga Drev, co-founder of OriginTrail, discusses the benefits of blockchain and artificial intelligence (AI) in an interview with CVJ.CH, focusing on the SBB partnership and the general advantages of these technologies.
Ziga Drev, Co-Founder of OriginTrail, talks to CVJ.CH about the partnership with SBB and the general benefits of the blockchain technology.
Bitcoin hits all-time high?
As early as Monday, Bitcoin had surpassed its all-time high in some countries. This is because, primarily in the West, the overwhelming majority monitor the cryptocurrency’s price development in USD. Countries like Argentina, which devalue their currency at record speeds annually, view a globally accessible, censorship-resistant digital currency as the only lifeline. By the end of the week, the number of trading pairs at new highs had significantly expanded. Even in euros, Bitcoin is at an all-time high.
Measured in the national currencies of at least nine countries, the price of Bitcoin is reaching new all-time highs on a daily basis.
Institutions take over
“The institutions are coming.” This narrative has existed since 2017. However, an increasing portion of Bitcoin trading volume is now coming from institutional players. The Bitcoin ETFs further accelerate this trend. An indication of this is that only 13% of the total Bitcoin volume is now traded on weekends – outside the operating hours of established financial institutions. A few years ago, this figure was still at 24%. This pattern is particularly pronounced in the United States.
A summarizing review of what has been happening at the crypto markets of the past week. A weekly report in cooperation with Kaiko.
