Digital assets recovered strongly this week, supported by macroeconomic optimism and reduced tensions around potential tariff wars.
Bitcoin rebounded after a couple weeks of decline, breaking back above the $110,000 mark thanks to renewed optimism around trade deals and future US interest rate cuts
Bitcoin had one sharp peak in early trading, before pulling back and exhibiting a more gradual increase throughout the rest of the week
The leading digital asset peaked at $115,950 on Monday, up from a weekly low of $106,900 on Wednesday
At its current price of around the $114,000 mark, Bitcoin has increased by $100,000 over the last five years
Ether behaved similarly, also rising from a Wednesday low of $3,739 to a Monday high of $4,246, comfortably scaling above the $4,000 mark again
Following last week’s sea of red across altcoins, the vast majority of the market returned to growth, as only 12 of the top 100 projects by market capitalisation posted a weekly decline—several of the worst performers being gold-pegged tokens
Investor sentiment on the Fear & Greed index returned to “neutral” territory at 42/100, as investors remained somewhat cautious due to the volatility of recent weeks
Overall market capitalisation grew over $200bn to $3.86tn, though this was down from an intraweek high of $3.92tn on Monday
According to industry monitoring site DeFi Llama, total value locked in DeFi increased just over $3.5bn to $156.4bn
Digital assets recovered from last week’s losses, as improved macroeconomic signals galvanised traders. Several banks including JP Morgan and Citi deepened their involvement with the asset class, IBM launched its own digital asset platform, the first Japanese Yen stablecoin was issued, several major acquisitions were confirmed, and much more.
What happened: ETF News
How is this significant?
Digital asset investment products moved back into inflows last week as investor sentiment turned bullish, adding nearly $1bn across all funds
According to Coinshares data published on Monday, digital asset funds witnessed net inflows of $921m
Coinshare’s Head of Research James Butterfill cited macroeconomic shifts as a key catalyst for this week’s bullishness, stating “The ongoing US government shutdown has left investors with little guidance on the direction of US monetary policy. However, the lower-than-expected CPI data released on Friday helped restore some confidence that further rate cuts are likely this year”
He also noted that trading volumes remain robust despite recent pullbacks, as last week’s $39bn remained well above last year’s $28bn weekly average
Spot Bitcoin ETFs returned to positive performance, including solid nine-figure inflows on Tuesday
Tuesday flows added $477m to the spot Bitcoin ETF complex, with nine of eleven funds experiencing inflows, whilst the other two had net zero days
BlackRock’s IBIT was unsurprisingly the leader here, adding $211m, followed by ARK Invest’s ARKB at $163m
IBIT also boasted nine-figure inflows on Thursday with $108m, helping to make the day a net positive $20.3m
Monday and Wednesday returned net outflows of $40m and $101m respectively, but $91m inflows on Friday ensured that the week closed out strongly positive overall
Spot Ether ETFs however experienced two days of nine-figure outflows compared to one day of nine-figure inflows, posting a red weekly candle
BlackRock’s ETHA was the week’s largest loser, as nine-figure outflows bookended its week at $118m and $101m respectively
This Monday performance included a $310m capital outflow from ETHA, one of the biggest one-days losses for spot Ether funds since launch
Issuer Canary Capital said it would launch the latter two this week, commenting “This is another landmark moment in what has been a pivotal year for the crypto industry. Canary is incredibly proud to have delivered on our mission to bring registered crypto investment solutions to the broader investment public”
The mutual fund leader currently manages $1.8tn, making it the latest member of a growing “Trillion Plus” group of finance titans to seek exposure to the asset class, alongside BlackRock, Fidelity, Franklin Templeton, Invesco, and others
Bloomberg reported this week that finance titan JP Morgan is allowing institutional clients to use Bitcoin and Ether as collateral for loans, in the latest of several moves by the bank to integrate digital assets
Through the program—”available globally by the end of the year”—clients will be able to use direct digital asset holdings for financing in loans, building on existing facilities to use Bitcoin ETFs as collateral
Analysts called it “both a symbolic shift and a functional one”, affording crypto the same status as other collateral assets like gold, stocks, and bonds; despite CEO Jamie Dimon’s long history as a visible opponent of digital assets
JP Morgan will use a third-party for custody services, rather than developing an in-house solution
Sources told the publication that the bank first explored Bitcoin-backed loans back in 2022, noting that since then “client demand for crypto asset support across Wall Street has spiked as the market has grown and regulations have eased”
In other JP Morgan news, Siemens and market makers B2C2 have started using the bank’s blockchain-based forex service, allowing 24/7 “cross-border FX transactions in US Dollars, British Pounds, and Euros, with near-instant settlement”
Siemens’ Head of Cash Management Heiko Nix said “The latest enhancement takes us a step further, simplifying transactional FX in real time, overcoming time-zone barriers, and mobilising cash precisely when and where it’s needed”
Meanwhile in Switzerland, digital asset bank Sygnum and Debifi launched a new Bitcoin loan platform, “allowing borrowers to retain partial control of their digital assets”
According to industry publication Coindesk, the new MultiSYG offering “will target institutions and high-net-worth individuals who want access to bank-grade loan services but are wary of rehypothecation”
As the name alludes to, Bitcoin collateral is deposited into a multi-signature wallet including Sygnum, the borrower, and independent signers amongst five signatories, with any transactions requiring signatures from at least three parties
A Monday press release revealed that Citi Group and Coinbase have “Joined Forces to Boost Digital Asset Payment Capabilities for Global Clients”, with a particular focus on streamlining fiat on- and off-ramps for crypto traders
Citi added that the partnership will enable 24/7 trading for clients, and that “Additional details on specific initiatives, including the exploration of creating alternative fiat to onchain stablecoin payout methods, will be shared in the coming months”
The news supplements reports from earlier this month which suggested that Citi seeks stablecoin development next year, alongside crypto custody services
Debopama Sen, Citi’s head of payments and services, stated “The financial landscape is changing fast… we see collaborating with Coinbase as a natural extension of our ‘network of networks’ approach, further supporting our clients to make payments as if there were no borders”
Coinbase CEO Brian Armstrong celebrated the partnership, tweeting “It’s not a debate anymore - crypto and stablecoins are the tools that will update the global financial system. Excited to be collaborating with Citi to work on improving stablecoin utility and digital asset adoption with their clients”
In other bank-adjacent news, Japan’s Yomiuri Shimbun newspaper reported that the nation’s regulator (the FSA) “may allow banks to trade and hold crypto assets”
The report speculated that the FSA could allow banks to directly register as digital asset exchanges in order to streamline such processes
In Switzerland, FINMA-regulated bank AMINA (formerly known as SEBA Bank) is collaborating with digital asset firm Tokeny to “create a regulated infrastructure for institutional tokenisation”
AMINA will handle asset custody, whilst tokenisation will occur via Ethereum’s ERC-3643 token standard, which includes a “compliance layer” ensuring only institutional investors can participate
Computing giant IBM announced its own “Digital Asset Haven” this week, built in conjunction with crypto wallet technology provider Dfns
The new “Haven” platform provides banks and governments “a single solution to manage their digital asset lifecycle—from custody to transactions to settlement—that helps them meet compliance obligations while being integration-ready”, according to an IBM press release
In particular, it includes transaction lifecycle management, governance and entitlement management, a turnkey for third-party KYC or AML solutions, and security management
IBM said that increased adoption necessitated this development, stating “With the adoption of tokenised assets and stablecoins increasing, institutions will need to evolve. The digital asset space presents a critical opportunity for financial institutions modernising their product portfolios”
IBM Z’s General Manager Tom McPherson said “With IBM Digital Asset Haven, our clients have the opportunity to enter and expand into the digital asset space backed by IBM’s level of security and reliability”
Tina Tarquinio, Chief Product Officer for the IBM Z told Bloomberg they want to leverage the imbalance between rising client demand for digital assets, and the expertise to handle them; “The alternative is they [companies] build it all themselves or they take piece parts and build it all themselves. This is a pretty significant bundle that would really jump-start what they’re doing”
Dfns CEO Clarisse Hagège commented “For digital assets to be integrated into core banking and capital markets systems, the underlying infrastructure must meet the same standards as traditional financial rails”
Despite the current US government shutdown, efforts to advance crypto asset legislation continue, as digital asset industry leaders have been meeting with legislators to support the pending CLARITY crypto market structure bill
CEOs of digital asset exchange Coinbase and blockchain oracle project Chainlink were amongst those meeting with lawmakers across both sides of the aisle for hours to push legislation forward
Republican Jeff Naft told reporters “The meeting was productive, with stakeholders providing feedback and reaffirming support for a bipartisan approach”
Coinbase CEO Brian Armstrong told CNBC that “there’s strong bipartisan support and will” after some “great meetings”, saying that Republicans and Democrats are “aligned on 90% of the issues”, hoping for a new draft before US Thanksgiving
He also said that the government shutdown “hasn’t stopped the Senate and the staff from continuing to work on this [legislation]”
White House “Crypto Czar” David Sacks supported the move, tweeting “Mike has not only been instrumental in driving forward the President's crypto agenda as Chief Counsel of the SEC Crypto Task Force, he also brings deep experience in traditional commodities markets from his time working at the CFTC under former Chairman Chris Giancarlo”
Selig himself commented after the nomination that he wants to ensure the US becomes a true “crypto capital” of the world, but must still be confirmed by Congress before officially taking the role
JPYC will be “fully convertible to the Yen and backed by domestic savings and Japanese government bonds”, and the developers hope to issue Y10tn ($60bn) worth over the next three years
Bank of Japan Deputy Governor Ryozo Himino recently commented that regulators had to adapt to new technologies, as “Stablecoins might emerge as a key player in the global payment system, partially replacing the role of bank deposits”
Blockchain analytics firm Artemis, which published the report, believe payment volume could increase from $10bn currently to $122bn over a full year, at this pace
Artemis’ Andrew Van Aken attested “If you look at stablecoin supply on a certain trend, and then right after Genius passed, the trend does inflect even more. We certainly think it has had an incremental impact”
Part of this may be generated by a planned December launch for its upcoming GENIUS-compliant USAT stablecoin
The company stated that it plans to reach 100 million Americans with its new offering, including reach via video sharing platform Rumble and a Tether-branded digital wallet
Speaking at a forum, CEO Paolo Ardoino acknowledged the company’s success and recent funding rumours “We have been contacted by an enormous amount of companies that want to invest in us. We have to draw a line in the sand on a valuation that we think is very cheap… We have a 99% profit margin. There is no other company in the world that has that”
Under the companies’ partnership, Clearbank will explore new use cases for Circle’s stablecoins, “including stablecoin-based treasury services and tokenised asset settlements”
Digital asset exchange Crypto dot com filed an application for a National Bank charter with the Office of the Comptroller of the Currency, “with the aim of becoming a federally-regulated service provider”
The coins will be issued on Binance’s BNB chain, following meetings between government officials and exchange founder Changpeng “CZ” Zhao
Kyrgyzstan’s national bank added that it will be a three-stage launch; “a pilot phase connecting the National Bank with commercial banks and allowing transfers, then connecting the Central Treasury to allow for social and government payments, then, finally, a test of offline or low-connectivity payment”
According to Bloomberg reports, blockchain-based prediction platform Polymarket has increased its valuation to $15bn, a figure which has almost doubled since a previous investment at the beginning of the month
Earlier in October, Nasdaq parent company Intercontinental Exchange (ICE) made a $2bn investment—an industry record—at a reported $8bn valuation thanks to “opportunities across markets which ICE together with Polymarket can uniquely serve”
Competing platform Kalshi (which plans to integrate crypto asset deposits) also doubled its valuation within a few weeks, although it still lags behind Polymarket at a mere $10bn
The Wall Street Journal reported this week that digital asset prime brokers FalconX are acquiring 21Shares, one of the industry’s largest ETP issuers
21Shares, with $11bn in assets under management (including spot Bitcoin and Ether ETFs in the US) will continue operating independently under the terms of the deal, expected to close by the end of the year
Exact terms of the acquisition were not publicly disclosed, but executives told the WSJ that “the combined company will develop crypto funds centered on derivatives and structured products”
Elsewhere in acquisitions, Digital asset exchange Coinbase bought investment platform Echo for $375m
Coinbase confirmed the deal was via a mix of cash and stock, and it will “integrate Echo’s Sonar platform, which helps early-stage crypto companies raise money through self-hosted public token sales”
The company also outlined future plans, adding “While we’ll start with crypto token sales via Sonar, we plan to expand support to tokenised securities and real-world assets over time, leveraging Echo’s infrastructure”
Both deals are emblematic of a recent more mainstream shift by digital asset firms, evidenced by a huge increase in M&A activities
According to research by Architect Partners, mergers and acquisitions excluding SPAC and reverse-merger deals eclipsed $10bn in value for the first time during Q3
This represents a 30-fold year-on-year increase, as greater regulatory clarity has assured more institutions about the long-term potential of the asset class
The scale and pace of the company’s purchases has notably slowed down since mid-year, but its 640,808 Bitcoin acquired at an average price around $74,000 remain strongly profitable
Strategy’s approach seems to have lost its lustre for some analysts; Standard & Poors assigned its shares a “junk” rating due to concerns over servicing its debts in the event of a “shock”—but TD Cowen analysts remained more optimistic, expecting the firm to hold 900,000 Bitcoin by 2027
Top Ether treasury firm BitMine bought another 77,055 Ether for around $319m last week, bringing its total holdings to 3.31 million Ether worth around $13.7bn at the time of writing
American Bitcoin, a mining company co-founded by Donald Trump’s sons Eric and Don Jr. entered the top 25 treasury firms following a $160m Bitcoin buy, taking its total Bitcoin stash to around $450m
Finally, Prenetics (a health science company backed by David Beckham) completed an oversubscribed $48m equity round to fund a corporate Bitcoin strategy, which could be increased to $216m if all options are exercised
Company CEO Danny Yeung stated a goal of buying one Bitcoin daily and scaling the company to $1bn in revenue and Bitcoin value within five years
This weekly financial roundup is for informational purposes only and is not financial, investment, or legal advice. Information is based on public sources as of publication and may change. Consult a professional before acting.