Issue #63

Market Overview

As of the time of writing (Monday 5pm), the total market cap of the crypto asset market is $US1.11T, up (0.1%) from last week.

Below is the weekly performance of the top crypto assets. 

News Headline Highlights

• Cathie Wood’s Ark Invest filed a second amended application for a spot Bitcoin spot exchange-traded fund (ETF). The latest version, filed on October 11, introduces additional risk warnings associated with the Bitcoin network that could negatively affect the price of an ETF among other minor adjustments. Magnet quick take: This is a positive step forward as it indicates a dialogue between the SEC and ARK Invest. With minimal changes required before refiling we anticipate the launch of a spot BTC ETF is getting VERY close.
• JPMorgan executed its first live blockchain-based collateral settlement transaction involving BlackRock and Barclays. BlackRock tokenised shares in one of its money market funds using the Tokenized Collateral Network (TCN) on JPMorgan’s Ethereum-based Onyx blockchain. The tokens were then transferred to Barclays to be used as collateral in an OTC (over-the-counter) derivatives trade.
• The trial of FTX founder Sam Bankman-Fried (SBF) underwent its second week with the prosecution calling Caroline Ellison to testify. Ellison was the CEO of SBF’s hedge fund Alameda Research. Ellison pleaded guilty to multiple counts of fraud back in December 2022 as part of a plea deal with the government. During her testimony, Ellison stated that SBF directed her to use FTX customer funds to repay outstanding Alameda loans. Ellison also testified that SBF instructed her to create seven alternative balance sheets in an attempt to hide the $10 billion USD of borrowed FTX customer deposits.
• Ferrari announced support for crypto payments for its luxury sports cars in the U.S. and will extend the scheme to Europe following requests from its wealthy customers.
• Standard Chartered Bank has predicted $8,000 per ether (ETH), the native cryptocurrency of the Ethereum blockchain, by the end of 2026. This would represent a return of 5x from its current price of ~$1,600.

 Crypto Asset Project Updates

• Trezor, one of the leading crypto hardware wallet manufacturers, debuted two new products:
  • Trezor Safe 3, a hardware crypto wallet
  • Trezor Keep Metal, a “mistake-proof” backup solution for wallet passwords
• Solana upgraded to v1.16, introducing “Confidential Transfers,” enhancing user privacy with encrypted SPL token transactions. This allows for people to make blockchain transactions without revealing key details of the transaction, such as the transaction amount.
• THORswap, a cross-chain decentralised exchange built on the THORchain network, resumed services through its front-end interface after updating its terms of service to restrict users from US-, UK- and EU-sanctioned countries.

Regulation Station

• The opportunity for the US Securities and Exchange Commission (SEC) to appeal the court’s reversal of its decision not to let Grayscale convert its bitcoin trust into an exchange traded fund (ETF) has passed. This potentially clears the way for the first BTC ETF to be approved in US markets.
• The Financial Conduct Authority (FCA), is close to completing a blueprint for fund tokenization. FCA Chair Ashley Alder revealed a collaboration with the Technology Working Group to develop this blueprint, which aims to leverage distributed ledger technology (DLT) for fully digitised funds.
• California Governor, Gavin Newsom, signed a law to create a regulatory framework for digital assets in California, stating “It is essential that we strike the appropriate balance between protecting consumers from harm and fostering a responsible innovation environment”.

The Weekly Deal Room

• Membrane Labs, a cryptocurrency prime broker, raised $20m in a Seed Round with participation from Brevan Howard, Point 72, Jane Street and others.
• Untangled Finance, a platform facilitating the tokenisation of real-world-assets, raised $13.5m in a Seed Round from Fasanara Capital.
• Cicada, a non-custodial crypto lender, raised $9.7m in a Pre-Seed Round led by Choppa Capital.
• Account Labs, a smart contract wallet provider, raised $7.7m in a Strategic Round from Amber Group, MixMarvel DAO and Qiming Ventures.
• Republix, a web3 content platform, raised $6m in a Seed Round from Okx Ventures, 6th Man Ventures, Arcane Capital and others.
• Parsec Finance, a crypto on-chain analytics platform, raised $4m in a Seed Round led by Galaxy Digital.
• Neutral, an exchange for tokenising environmental assets like carbon credits, raised $3.2m in a Seed Round led by North Island Ventures.