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Writer's pictureBlockstone Capital

Blockstone Capital Weekly Digest: Friday 27 September 2024

Updated: Oct 2

BTC is +4.85%, trading at $65.9K

ETH is +6.28.%, trading at $2.7K

BTC dominance: 56.2%

Crypto market cap: $2.3T


Macro overview

The Fed's first rate cut in four years and China's unexpected stimulus package are setting the stage for digital assets to thrive. Bitcoin crossed the $65K mark on Thursday following China's $284bn bond stimulus plan. The PBoC’s substantial stimulus measures, timed just as the Fed begins cutting rates, could cause Bitcoin to rally further, with analysts targeting $70K within the next two weeks. Meanwhile, U.S. spot Bitcoin ETFs have seen four consecutive days of monster inflows totaling $612.6m, as per Coinglass. ETF reserves have now climbed from $50.53bn to $51.15bn – the highest level since July.


SEC approves options for IBIT

The SEC greenlit listing and trading of options on BlackRock's Bitcoin ETF, IBIT. This opens the door for investors to hedge, speculate, and generate yield on Bitcoin holdings by selling covered calls. Expect more institutional capital to follow as Bitcoin becomes an even more investable asset.


BNY Mellon approved to offer crypto custody services

BNY became the first bank to get an exemption from the SEC’s SAB 121 rule – an accounting rule that effectively bars traditional custodians from operating in the digital asset space. While it is great news that the world’s largest custodian can custody crypto, many deem the SEC’s preferential treatment questionable.


Tokenization momentum

Guggenheim Treasury Securities issued $20m of Digital Commercial Paper on Ethereum. While $20m isn’t huge for Guggenheim, it signals traditional finance’s increasing embrace of tokenization, and Ethereum remains at the center of it all.


Harris chimes in on crypto

Democratic candidate Kamala Harris finally commented publicly on crypto. Addressing donors in New York, she declared that “We will partner together to invest in America’s competitiveness, to invest in America’s future. We will encourage innovative technologies like AI and digital assets, while protecting our consumers and investors.” While some saw this as a positive step, others found her remarks similar to past Biden-Harris statements on crypto.


One in, one out

Caroline Ellison, former CEO of Alameda Research, received a two-year prison sentence, likely reduced due to her testimony against Sam Bankman-Fried. In other prison-related news, Binance founder Changpeng “CZ” Zhao might get an early release today, just ahead of his scheduled Sept 29th date.

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