Crypto Update: Diminishing and increasing exposure Crypto Update: Diminishing and increasing exposure Crypto Update: Diminishing and increasing exposure

Crypto Update: Diminishing and increasing exposure

Cryptocurrencies 5 minutes to read
Jacob Pouncey

Cryptocurrency analyst, Saxo Bank

Summary:  This week the entire crypto market cap rose by 4.5%, bringing the market cap to just above $180 billion.


Bitcoin and Ethereum rose by 5.5% and 7% respectively. CME reported record volumes last Thursday with a notional value of 112,700 BTC or $546 million. 

China looks to curb Bitcoin mining

On Monday the National Development and Reform Commission released a list of sectors that it plans to restrict or eliminate. Bitcoin mining was on that list put out by China’s top economic planning agency. Some in the industry believe that China could ban mining outright. An ban on mining could influence energy producers as Bitcoin miners predominantly run on renewables, meaning that miners often buy excess capacity. Additionally, most of the global mining activity takes place in China, and China could tax a large slice of the industry which pulled in over $4 billion last year.
 
XBT Provider list new products

Cryptocurrency exchange-traded note supplier, XBT Provider, recently launched several new ETNs on a Swedish stock exchange. The notes track the spot price of Ripple’s XRP and Litecoin in both SEK and EUR. These offerings now double the number of ETNs from the provider. These give investors that ability to invest in these assets through a regulated exchange. Currently, ETNs from XBT provider is the only way on SaxoTrader to gain pure exposure to digital assets. Since the peak in early 2018, investors have gained multiple avenues to get exposure to digital assets without leaving the comfort of traditional exchanges and brokers. 

Facebook looking for outside funding

Nathaniel Popper, a New York Times tech writer, stated that Facebook is looking to raise $1bn for its cryptocurrency ambitions. This comes at a time when Facebook is sitting on over $40bn in cash and cash equivalents. Facebook aims to launch a stable coin that is backed by a basket of traditional currencies held in reserve. Popper states that the outside capital raise could be a device to give an air of decentralisation to the initiative since outside investors will have a stake in the Facebook-led project. I doubt Facebook will have trouble raising funds considering that the Whatsapp rival Telegram has raised over $1.7 billion. A Barclays analyst believes that Facebook coin could add $3-19 bn to the company’s revenue stream. The launch of FB Coin and its subsequent trading on exchanges could do a lot in terms of exposing and onboarding millions of new users to the cryptocurrency sector. 
Disclaimer

The Saxo Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research 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 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. To the extent that any content is construed as investment research, you must note and accept that the 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 under relevant laws.

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

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo or its affiliates.

Saxo Capital Markets HK Limited
19th Floor
Shanghai Commercial Bank Tower
12 Queen’s Road Central
Hong Kong

Contact Saxo

Select region

Hong Kong S.A.R
Hong Kong S.A.R

Saxo Capital Markets HK Limited (“Saxo”) is a company authorised and regulated by the Securities and Futures Commission of Hong Kong. Saxo holds a Type 1 Regulated Activity (Dealing in Securities); Type 2 Regulated Activity (Dealing in Futures Contract); Type 3 Regulated Activity (Leveraged Foreign Exchange Trading); Type 4 Regulated Activity (Advising on Securities) and Type 9 Regulated Activity (Asset Management) licenses (CE No. AVD061). Registered address: 19th Floor, Shanghai Commercial Bank Tower, 12 Queen’s Road Central, Hong Kong.

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 may result in your losses exceeding your initial deposits. Saxo does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo does not take into account an individual’s needs, objectives or financial situation. Please click here to view the relevant risk disclosure statements.

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

The information or the products and services referred to on this site 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 are not directed at, or intended for distribution to or use by, any person or entity residing in the United States and Japan. Please click here to view our full disclaimer.

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