Crypto Update: Close, closer, finally

Jacob Pouncey

Cryptocurrency analyst, Saxo Bank

This week the entire crypto market cap fell 16% to just over $230 billion. Similarly, Bitcoin fell by 15%, continuing its slide from the previous week. Ethereum held strong against Bitcoin by dropping 13% for the week.

This confirms that the last bounce ensnared overzealous buyers and now the market is likely searching for a new bottom. The overall market trend continues to be to the downside. The market tends to not react to positive news and overreact to negative press.

SEC delays decision on VanEck/SolidX ETF

On August 7, the SEC decided to delay its decision on one of the most highly anticipated Bitcoin ETFs by 45 days. The VanEck SolidX Bitcoin Trust is backed by Cboe and is considered to be one of the top contenders in the race to be one of the first US-regulated, exchange-listed crypto funds. The announcement aided the continued decline of the Bitcoin price. The SEC can continue to delay the decision into next year, but currently its next date to take action is September 30, 2018.

Traditional exchanges are launching crypto services

The New York Stock Exchange’s parent company Intercontinental Exchange announced the creation of Bakkt, a digital asset platform that will launch in November. Bakkt will launch with physical delivery of futures contracts. This could be the largest physically delivered futures contracts by volume from a US regulated institution. CME and Cboe contracts are cash-settled. This announcement is huge as anyone connected to ICE can connect to Bakkt and trade under their existing account.

Banks continue to mull over crypto services

Two Barclays employees stated on their LinkedIn profiles that they are working on a cryptocurrency trading desk initiative for the firm, hinting that Barclays may launch a digital asset service in the future. However, the bank denied any plans to launch a cryptocurrency trading desk but confirmed that the two employees do work at the bank. Additionally, Goldman Sachs announced that is considering to offer a custody service for cryptocurrency funds. If these solutions become live it could increase adoption among other institutions and potentially allowing for a greater flow of capital to crypto assets.

XBTUSD
Source: Coinmarketcap.com
Disclaimer

Saxo Capital Markets (Australia) Pty Ltd prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Combined Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards

Saxo Capital Markets (Australia) Pty Ltd ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide and Product Disclosure Statement to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as CFDs and Margin FX products may result in your losses surpassing your initial deposits. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.
Please click here to view our full disclaimer.