What happened this week around blockchain and cryptocurrencies? The most relevant local and international events as well as appealing background reports in a pointed and compact weekly review.
Selected articles of the week:
For quite some time, exchange-traded crypto funds (ETFs) have been highly debated in the United States. These products allow investors exposure to the crypto space through traditional trading platforms without the complexities of direct custody. Especially for institutional players with specific investment mandates, ETFs offer easy access to the world of cryptocurrencies. However, the responsible securities and exchange regulator (SEC) has been taking its time when it comes to approving them. It was only two years ago that the first Bitcoin ETF was listed, and similar products for Ethereum (ETH) followed last week. Yet, these futures-based funds come with drawbacks compared to direct exposure. Additional costs due to regular futures contract rolling often significantly reduce the returns of ETFs. This, combined with a pessimistic market environment, resulted in a disappointing start for the Ether ETF, ultimately putting pressure on the price of the second-largest cryptocurrency.
The complete overview of the day’s events in the (crypto) markets. Concisely summarized in the CVJ.CH market commentary.
While skeptics still advocate for a crypto ban, governments worldwide are working on comprehensive regulatory guidelines for the emerging sector. This is crucial for the industry. Sensible frameworks build trust among both retail and institutional investors, ultimately paving the way for the integration of digital assets into the regular financial system. However, different approaches are emerging globally. Switzerland established itself as an early pioneer, the European Union took initial steps with MiCA, the United States is in the midst of a battle between various authorities, and the regulatory landscape in Asia remains highly diverse.
Governments around the world have been working on comprehensive regulatory guidelines for the upcoming space; a full overview.
Standard Chartered (StanChart) is a multinational financial institution with a strong focus on Asia, managing nearly $820 billion in client assets and recognized as a systemically important financial institution by the Financial Stability Board. Since mid-2021, StanChart has been actively involved in the crypto space, periodically publishing market analyses. According to their latest outlook, the bank predicts that Ether (ETH) will reach a price of $8,000 by the end of 2026, based on forecasts of future utility driven by new use cases such as tokenization. Longer-term, StanChart analysts even share a valuation of up to $35,000. However, it’s worth considering past crypto predictions to contextualize these forecasts.
According to analysis by London-based Standard Chartered Bank (StanChart), the cryptocurrency Ether (ETH) could reach $8,000 by 2026.
In recent weeks, a new blockchain project, The Open Network (TON), has entered the top 15 cryptocurrencies by market capitalization. This project is a continuation of the original vision of social media giant Telegram. Back in 2018, the decentralized network and its cryptocurrency were supposed to go public through a $1.7 billion Initial Coin Offering (ICO). Regulatory authorities, however, posed obstacles and put the “Telegram Open Network” on hold. Years later, a rebranding effort with a new team successfully revived the project. An overview of the controversial history of the TON network and its current ecosystem.
The Open Network (TON) aims to create an ecosystem for decentralized apps and services connected to the social media app Telegram.
In addition: Last week, a total of six Ether ETFs based on futures began trading on US markets. However, there was notable lack of enthusiasm for these products. Overall, these ETFs recorded just over a million USD in volume on their first trading day. Furthermore, crypto spot markets are currently trading at volume lows not seen since 2020. There is a clear sense of apathy, typical of consolidation phases in the crypto space.
A summarizing review of what has been happening at the crypto markets of the past week. A look at trending sectors, liquidity, volatility, spreads and more. The weekly report in cooperation with market data provider Kaiko.
