IN THE NEWS DURING OCTOBER:
● The biggest development was the launch of the first two Bitcoin Exchange Traded Funds (ETF).
● The Bitcoin Futures ETF (BITO) officially hit $1 billion in volume for the first day of launch, including after hours trading. This was the single largest ETF launch in history by the end of the day. This broke the Gold ETF's record that had stood for 18 years.
● Grayscale Investments LLC filed to convert GBTC, the world's largest bitcoin fund, into the world's first bitcoin spot ETF.
● Oct 18th: Interactive Brokers announced they will empower Registered Investment Advisors across the United States to invest in bitcoin and cryptocurrencies. This means hundreds of billions of dollars can now enter the market more easily.
● There was much trepidation around an Evergrande default in China that could spook international markets. This was averted, but the retail side is always quick to react to any signs of panic. The main fear was that the principal Crypto Stable Coin, USDT, could have been intertwined in the fallout from a major property market wobble.
● Oct 22nd: It was confirmed that the Houston Firefighters Pension Fund has officially become the first US pension fund in the United States to purchase, and directly hold, Bitcoin in their portfolio. Will this be the first of many pension funds entering the space?.
● 15 months ago, the Crypto DeFi sector hit $10 billion in total locked in value (amount of value held across DeFi contracts). In October it crossed $100 billion.
● There was much discussion about an Ethereum upgrade to Proof-of-Stake coming very soon. We believe that this would see huge upside to not only Ethereum, but all the projects built on it.
● Walmart starts rolling out Bitcoin ATM’s in the United States.
● Spanish Banks announced that they were preparing to offer Crypto Custody Services.
● The Federal Deposit Insurance Corporation Chairman in the US stated that regulators are looking at how US banks could hold bitcoin.
● Chinese authorities have started a public consultation asking for public input about their recent Mining Ban. A U-turn coming?
● On-chain Analysis shows that The Global Bitcoin Leverage Ratio is approaching an all time high. Previous ATH’s have been followed by major moves upwards.
● Oct 25th. Mastercard announces that it is working on integration with Bitcoin and other cryptocurrencies into its payments and banking platforms.
● On Oct 26th, Bitcoin had $18.8 billion of on-chain transaction volume in the previous 24 hours.
We currently have close coverage of 28 Cryptocurrencies. This is an increase on the previous month as we continue to diversify into new projects where we see significant upside.
The Bitcoin Stock-to-Flow chart is proving to be highly accurate. It predicted Bitcoin prices of:
$47k End of August. Actual spot price hit $49k
$43k End of September. Actual spot price hit $43k
$61k End of October. Actual spot price hit $61k
We will monitor this and other indicators to see if this relationship continues to hold.