Crypto Update: Incoming adoption

Crypto Update: Incoming adoption

Cryptocurrencies 4 minutes to read
Jacob Pouncey

Cryptocurrency analyst, Saxo Bank

Summary:  This week the entire crypto market cap rose by 12% to around $135 billion. Bitcoin and Ethereum advanced by 10% and 20% respectively.


This was the second week in a row that the market saw an overall increase in value, a development some observers say is due to increased institutional interest.

JPM Coin

This week J.P. Morgan Chase announced its own digital coin. The digital asset which is based on blockchain tech would be used to settle transfers between institutional accounts at JP Morgan. The coin will be backed by deposits at the bank on a 1:1 basis with the US dollar. However, it should be noted that JPM coin is not a cryptocurrency, but a digital asset running on JP Morgan’s private network, which is currently inaccessible to consumers. JPM coin will work to familiarise institutions and regulators with how to handle distributed ledger technologies. This project is certainly a threat to XRP, Ripple and SWIFT. Other banks may follow suit and begin issuing their own coins which could serve as a Trojan horse for cryptocurrencies. However this is not the first time a major bank has experimented with a settlement coin.

Grayscale Investments reports

Grayscale Investment released its annual report for its investment products this past week. Grayscale investment is known for its GBTC trust which holds BTC and trades over the counter in the US. The firm also has investment products including, Ethereum, Bitcoin Cashand Litecoin. Shockingly, over 66% of its $360 million of inflows originated from institutional investors. While another 20% came from retirement accounts and family offices. Many are waiting for institutions to enter the crypto industry, but this annual report highlights the fact that institutions are already here. 

Bitmain back again
 
Cryptocurrency mining giant Bitmain Technologies recently updated its IPO filings on the Hong Kong stock exchange. The update revealed that the company experienced a loss of half a billion USD in the third quarter. However, the company still has a profit of roughly $500m for the first nine months of 2018. The updated filing is not yet public, and an anonymous representative of the company denied the reports. Additionally, to distract from the rumours Bitmain announced a new Bitcoin mining chip that is almost 30% more efficient that the previous design. Hopefully, Bitmain will finally launch its IPO this year, giving investors one the largest pure plays with exposure to the cryptocurrency market.

Quarterly Outlook

01 /

  • Equity outlook: The high cost of global fragmentation for US portfolios

    Quarterly Outlook

    Equity outlook: The high cost of global fragmentation for US portfolios

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: Commodities rally despite global uncertainty

    Quarterly Outlook

    Commodity Outlook: Commodities rally despite global uncertainty

    Ole Hansen

    Head of Commodity Strategy

  • Upending the global order at blinding speed

    Quarterly Outlook

    Upending the global order at blinding speed

    John J. Hardy

    Global Head of Macro Strategy

    We are witnessing a once-in-a-lifetime shredding of the global order. As the new order takes shape, ...
  • Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Quarterly Outlook

    Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Jacob Falkencrone

    Global Head of Investment Strategy

  • Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    Quarterly Outlook

    Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    John J. Hardy

    Global Head of Macro Strategy

  • Equity Outlook: The ride just got rougher

    Quarterly Outlook

    Equity Outlook: The ride just got rougher

    Charu Chanana

    Chief Investment Strategist

  • China Outlook: The choice between retaliation or de-escalation

    Quarterly Outlook

    China Outlook: The choice between retaliation or de-escalation

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: A bumpy road ahead calls for diversification

    Quarterly Outlook

    Commodity Outlook: A bumpy road ahead calls for diversification

    Ole Hansen

    Head of Commodity Strategy

  • FX outlook: Tariffs drive USD strength, until...?

    Quarterly Outlook

    FX outlook: Tariffs drive USD strength, until...?

    John J. Hardy

    Global Head of Macro Strategy

  • Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Quarterly Outlook

    Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Althea Spinozzi

    Head of Fixed Income Strategy


Business Hills Park – Building 4,
4th Floor, office 401, Dubai Hills Estate, P.O. Box 33641, Dubai, UAE

Contact Saxo

Select region

UAE
UAE

All trading and investing comes with risk, including but not limited to the potential to lose your entire invested amount.

Information on our international website (as selected from the globe drop-down) can be accessed worldwide and relates to Saxo Bank A/S as the parent company of the Saxo Bank Group. Any mention of the Saxo Bank Group refers to the overall organisation, including subsidiaries and branches under Saxo Bank A/S. Client agreements are made with the relevant Saxo entity based on your country of residence and are governed by the applicable laws of that entity's jurisdiction.

Apple and the Apple logo are trademarks of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.