Crypto Update: Incoming adoption Crypto Update: Incoming adoption 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.


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 Inspiration Disclaimer and (v) Notices applying to Trade Inspiration, 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 (
Full disclaimer (

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets 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 Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region


Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning 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 Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

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 are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

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