Global non-fungible token (NFT) sales experienced a decline this week, dropping 21% from the previous week. Across 21 unique blockchains, the total sales just surpassed the 0 million mark over the past seven days. Weekly NFT Sales Fall, Cryptopunks and Pudgy Penguins Surge NFT sales have significantly decreased this week, correlating with the broader downturn […]
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Amid a Week of Severe Crypto Lows, TON and ONDO Record Gains Despite Broad Market Declines
The past week has not been favorable for the majority of cryptocurrency assets, with only four specific digital currencies recording gains. This week, ONDO appreciated by 13.2%, TON increased by 11.3%, PENDLE grew by 6%, and LEO saw a slight uptick of 0.5%. Market Update: A Tough Week for Crypto With Few Standouts The landscape […]
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NFT Sales Tumble 18.57% in 7 Days Amid Broad Crypto Market Retreat
This week’s non-fungible token (NFT) sales have taken another nosedive, intensifying the downtrend that began with a 16.55% decline from March 9 to March 16, 2024. The last seven days have witnessed an even steeper drop, with NFT sales plummeting by 18.57%. Cryptopunk #7,804 Shines in a Week of Falling NFT Sales In line with […]
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Despite Broad Crypto Downturn, Solana Hits $200 Range and Overtakes BNB
Based on the latest metrics, the cryptocurrency landscape has experienced a widespread but modest downturn. Yet, the digital asset solana has risen by 12.2% in the last 24 hours and 43% against the U.S. dollar over the past week. Currently, solana surpassed the 0 mark per coin as it closed in on BNB’s market capitalization. […]
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Value Locked in Defi Nears $100 Billion Milestone Amidst Broad Market Uptick and Lido Dominance
Five days ago, the total value locked (TVL) in decentralized finance (defi) protocols exceeded the billion mark, and since that point, it has expanded by an additional .66 billion. As it hovers above the billion threshold, the TVL is approaching the 0 billion milestone, a figure not observed since before the collapse of […]
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Franklin Templeton Eyes Broad Crypto Expansion Beyond Bitcoin, Foresees More ETP Filings
Franklin Templeton’s Head of Digital Assets, Sandy Kaul, foresees an increase in filings following the recent approval of 11 new spot bitcoin exchange-traded funds. Kaul highlighted that the firm, managing .5 trillion in assets, recognizes the “potential of this whole crypto domain.”
Franklin Templeton Sets Sights on Expanding Crypto Horizons
On social media this past week, the investment management giant Franklin Templeton discussed ethereum (ETH) and solana (SOL) in a series of tweets about crypto and blockchain technology. The company just launched its spot bitcoin exchange-traded fund (ETF) and presently the fund commands 1,160 BTC worth around million. In an interview with Bloomberg’s Kailey Leinz and Sonali Basak, the asset manager’s digital assets sector chief Sandy Kaul said the firm expects more filings to come.
“We see the potential of this whole crypto domain,” Kaul said. “So we will continue to evolve our product range and continue to offer our investors more opportunities to access this innovation and capture the beta of what we call this new protocol economy.” When queried about Franklin Templeton’s inclination towards ethereum (ETH), Kaul did not specify. However, she indicated that the public should expect additional exchange-traded product (ETP) filings from the asset management company. “You can anticipate that you will see more filings from us at some point,” she said.
“There are many coins with large market caps and why just stop with just bitcoin?” Kaul remarked. “I mean there are other opportunities and they are different opportunities. Ethereum is another asset in the crypto domain that offers a slightly different value proposition than bitcoin because it’s more of an app development platform and it fosters its own ecosystem. So that’s a slightly different investment proposition than bitcoin.” The Franklin Templeton executive added:
In all portfolio theory, it is better to have multiple assets in a portfolio rather than a single-asset portfolio. So it would not be reasonable to expect that bitcoin is going to be the only asset that moves into vehicles that make it easier for investors to put money into this space.
The Bloomberg show hosts also inquired with Kaul regarding BTC’s categorization, likening it to a commodity similar to gold. “I think there’s some truth to that because there’s this digital scarcity programmed into Bitcoin where you only get 21 million coins ever going to be created. And you can track every one of those coins through a decentralized process, so no one can control that supply. So I think there’s some good analogies that can be drawn to the gold situation.”
Kaul wrapped up the discussion by touching on BTC’s volatility, observing that the digital asset’s price swings bear a resemblance to those in the commodities market. “I think that the volatility that you see in bitcoin markets is often similar to the volatility that you will see in commodity markets,” Kaul remarked. Responsible trading firms like Franklin Templeton know how to handle that type of volatility, and we get into these markets every day on behalf of our investors. I think that this is a great opportunity for them and there’s a lot they can relate to with this investment, even if they don’t understand bitcoin.”
What do you think about the interview with Franklin Templeton’s digital assets lead Sandy Kaul and her comments? Share your thoughts and opinions about this subject in the comments section below.
Grayscale Report Sheds Light on Bitcoin’s Broad Ownership and ‘Sticky Supply’ Dynamics
A new report from Grayscale Investments reveals that bitcoin ownership is more widely distributed than commonly believed, with 74% of addresses holding less than 0 worth. However, around 40% of bitcoin supply is concentrated among institutions like exchanges, miners, governments, public companies, and long-term holders.
Grayscale Research Team’s Bitcoin Analysis — Supply Dynamics Poised to Jolt Markets
Grayscale Investments, one of the largest digital asset managers in terms of assets under management (AUM), has published a study that discusses bitcoin (BTC) ownership. Grayscale delves into the “stickiness” of bitcoin’s supply, exploring why the firm believes this aspect is especially pertinent at present, and its potential implications for the asset going forward.
While the majority of bitcoin owners are small retail investors spread across the globe, sizable portions are held by large entities like crypto exchanges, representing millions of users, as well as governments. The report highlights how there are other major owners including mining companies securing the network, public companies like Microstrategy, exchange-traded funds (ETFs), trading platforms, and dormant addresses inactive for over ten years.
Grayscale’s study says that some ownership groups seem to represent “sticky supply” that resists selling during price swings. For example, the researchers highlight decade-long inactive supply recently hit an all-time high, while miner and exchange balances have remained steady despite bitcoin’s volatility.
This inelasticity could amplify the price impact of external events that drive new demand, like the 2024 halving or a potential U.S. spot bitcoin ETF approval. As Grayscale notes, “Given the various inactive or price inelastic bitcoin ownership groups, this dynamic could prove particularly relevant to bitcoin.” The study anticipates ownership dynamics increasingly affecting bitcoin’s price response as illiquid supply grows and short-term supply shrinks.
Grayscale’s analysis highlights how bitcoin’s widespread distribution among both individual and institutional investors signifies its growing mainstream acceptance and evolution. Concurrently, the report notes that a limited supply may enhance positive market forces, according to the researchers.
Concluding the report, it states, “If these trends continue, the Grayscale Research team anticipates that the dynamics of bitcoin’s ownership could increasingly amplify the impact of macro events.”
What do you think about Grayscale’s report about bitcoin’s distribution among different entities and the “sticky supply” scenario? Share your thoughts and opinions about this subject in the comments section below.
Custodia CEO Slams US Government Over Broad Crackdown, Lack of Regulatory Clarity in Crypto Industry
Caitlin Long, CEO of crypto bank Custodia, criticized the U.S. government for its handling of a massive crypto fraud that occurred months before the company’s collapse. She made her remarks in a blog post after disclosing evidence to law enforcement. Long’s post followed Custodia’s unsuccessful application to become a member of the Federal Reserve System, which was denied by the Federal Reserve Board.
CEO of Custodia Criticizes U.S. Government for ‘Shooting a Messenger Who Warned of Crypto Debacle’
Executives of digital currency and blockchain companies are displeased with the U.S. government’s crackdowns and lack of regulatory clarity. Brian Armstrong, CEO of Coinbase, has called on Congress to pass clear legislation on cryptocurrencies, and Jesse Powell, CEO of Kraken, has echoed that message. On Feb. 17, Caitlin Long, CEO of Custodia, published a blog post explaining that she had given evidence to authorities about a crypto fraud case months before the company collapsed, leaving its millions of customers with losses.
In her blog post titled “Shame on Washington, DC for Shooting a Messenger Who Warned of Crypto Debacle,” Long argues that the current enforcement actions are a misguided crackdown on the entire industry. “Calls for a crackdown today are coming from many of the same policymakers who were charmed by the fraudsters,” Long wrote. It is well known that senior members of the U.S. Securities and Exchange Commission (SEC), the White House, and the Commodity Futures Trading Commission (CFTC) met with Sam Bankman-Fried (SBF) and high-ranking FTX officials.
Additionally, an estimated one in three members of Congress received a direct contribution from SBF and his inner circle. “In a 180-degree turn, [policymakers are] now throwing the baby out with the bathwater,” Long wrote in her blog post. The Custodia CEO also mentioned that government officials likened her crypto bank’s operation to FTX’s misconduct and collapse, resulting in an ambush on the crypto industry by officials.
“Custodia Bank recently found itself in the crosshairs of Beltway Politics at their worst,” Long stressed. “Custodia was simultaneously attacked by the White House, the Federal Reserve Board of Governors, the Kansas City Fed, and Senator Dick Durbin (who conflated our non-leveraged, 100-percent liquid and solvent bank with FTX in a Senate floor speech, in which he attacked two companies run by female CEOs — Fidelity and Custodia — implicitly comparing us to a 29-year-old accused fraudster who is now wearing an ankle bracelet).”
The Custodia CEO added:
Custodia tried to become federally regulated – the very result bipartisan policymakers claim to want. Yet Custodia has been denied and [is] now disparaged for daring to come through the front door.
After Long published her blog post about the situation, Jesse Powell, CEO of Kraken, responded to her Twitter thread on the subject. “I can’t tell you how infuriating it is to have pointed out massive red flags and obviously illegal activity to regulators only to have them ignore the issues for years,” Powell tweeted. “‘They’re offshore. It’s complicated. We’re looking at everybody.’ FOR YEARS. Then to be used as their example.”
The complaints from Long, Armstrong, and Powell come after the SEC’s enforcement action against Terraform Labs and CEO Do Kwon, nine months after the entire Terra ecosystem collapsed. The U.S. securities regulator was criticized for being late to the game, and many believe the SEC is simply throwing spaghetti at the wall to see what will stick.
What is your opinion on the criticisms from Custodia’s CEO regarding the U.S. government’s handling of the recent enforcement actions in the crypto industry and the red flags she pointed out before a crypto company’s collapse? Share your thoughts on this topic in the comments section below.
S&P Dow Jones Launches Crypto Broad Digital Market Index
The S&P Dow Jones has announced this week the addition of five new crypto indices, including an index that tracks over 240 coins. The indices join legacy financial indicators that have been paramount in the traditional markets, such as the S&P 500 and the Dow Jones Industrial Average.
Fabulous Five
The focal point of the five new indices is the S&P Cryptocurrency Broad Market Digital Index (BDM). This index will seek to provide a broad snapshot of the crypto market, and is the index tracking a hefty 240 coins at launch. At present time, there are approximately 275 cryptocurrencies with a market cap great than 0MM. However, the S&P Dow Jones has not disclosed if market cap will dictate selection criteria, at least for the BDM index.
The S&P Dow Jones only first expressed their intent to track crypto prices as recently as December 2020, and debuted Bitcoin and Ethereum price tracking indices just a couple months ago.
The remaining four indices are BDM derivatives that include the following:
- Cryptocurrency LargeCap Index: A BDM subset that hones in on select coins with the largest market caps.
- Cryptocurrency BDM Ex-MegaCap Index: A BDM subset that excludes bitcoin and ethereum.
- Cryptocurrency BDM Ex-LargeCap Index: A BDM subset that excludes that aforementioned crypto LargeCap Index.
- Cryptocurrency BDM LargeCap Ex-MegaCap Index: A BDM subset that includes the aforementioned LargeCap Index, and excludes the already established MegaCap Index.
The indices join the ranks of early digital asset benchmarks already established by S&P Dow Jones, including the S&P Bitcoin Index, S&P Ethereum Index, and S&P Cryptocurrency MegaCap Index.
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The What, How & Why
The indices will pull pricing data from their already-established cryptocurrency partner Lukka, an enterprise-grade crypto software and data provider. Increasing indices around crypto reflect a clear growth in consumer demand that the S&P Dow Jones is now looking to address. “The market for cryptocurrency assets continues to grow and with that, transparent benchmarking and index-based solutions based on crypto and blockchain assets are more essential than ever,” according to the S&P Dow Jones press release.
Global Head of Innovation and Strategy at S&P Dow Jones Indices Peter Roffman stated in the release that “for more than a century, our indices have offered insight into how the markets are performing. Now… we’re providing that answer to cryptocurrency investors,” adding that the indices “gives one of the broadest snapshots yet of this rapidly growing asset class with the ability to slice and dice by market cap. We’re excited to bring this significant level of additional transparency to the cryptocurrency market.”
Despite a healthy pullback in recent months, the broad market growth of crypto at large is clearly realized by the S&P Dow Jones Indices. | Source: CRYPTOCAP-TOTAL on TradingView.com
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Featured image from Pixabay, Charts from TradingView.com