CRYPTO MOVERS AND PRICES
Crypto is broadly selling off after a weekend rally saw bitcoin (BTC) and Ethereum (ETH) make new record highs. After a week in which it added about USD 18 billion to its market cap, Binance Coin (BNB) saw the greatest loss in the Top 10 this morning.
Crypto Story of the Day
On Friday, BTC’s market cap surpassed USD 1 trillion for the first time, while weekend trading added another USD 65 million to the coin’s capitalization. This move comes on the back of new BTC investment products coming to market and sustained inflows into such offerings.
BTC’s market cap surpassed USD 1 trillion when the USD 53,500 price point was surpassed on Friday. Despite BTC’s performance, which has seen the coin add roughly USD 500 billion to its market cap in the past month, the coin’s dominance saw a marginal increase of about 1%, as alt-coins, notably Binance Coin (BNB), rallied throughout the week.
Global Google search volume for “bitcoin” remains elevated, though it's come down from levels seen at the beginning of January, when that metric reached nearly 70% of the record interest achieved in December 2017. Google users searching for “bitcoin” in the previous 7 days also had an 80% increase in interest for the topic “Exchange-traded fund'' when compared to the previous week. Last week also saw Austria, Switzerland, Turkey, Canada, and Switzerland as countries with the most search volume for BTC.
Searches for the term “bitcoin regulation” reached a 5-year high in late December following FinCEN’s release of proposed rules on crypto transaction data collection and reporting. However, search volume on this topic has remained elevated compared to historical levels.
Coinbase continues to be the most active crypto-fiat onramp venue, recording USD 5.37 billion on Friday across all assets, compared to Bitfinex’s USD 2.24 billion. In its first 2 days of trading, “the world’s first bitcoin ETF,” offered by Purpose Investments, saw an inflow of CAD 421 million, while the Evolve BTC ETF, which began trading on Friday, attracted CAD 25 million.
The Grayscale Bitcoin Trust saw an inflow of 30.47 BTC in the previous month, bringing the value of its BTC holding to about USD 35 billion, while maintaining a premium of roughly 8% last week. The previous week also saw all 3 closed-end BTC products available in Canada— 3iQ The Bitcoin Fund, Ninepoint Bitcoin Trust, and CI Galaxy Bitcoin Fund— trade with discounts of 11-10%.
BTC’s performance comes on the back of a growing list of products offering exposure for investors that’s accessible through clients' pre-existing investment infrastructure. There’s also a considerable pipeline of products waiting for regulatory approval, most notably BTC ETF applications in the U.S. from VanEck Associates Corp. and Valkyrie Digital Assets.
As such, investors are likely to continue enjoying an increasing array of options through which to participate in the space. The availability of products that allow investors to circumvent some of the complexities of holding BTC in order to invest in the asset has been one of the hallmarks of this rally.