- Bitcoin prices have eased post-halving but remain well above end 2023 levels.
- Recent research on Bitcoin flows found that they respond differently to macro drivers…
- … compared to equity and bond flows.
- Ether underperforms Bitcoin, attributed to waning optimism regarding ETH spot ETF approval by SEC.
- CBDCs are gaining traction amongst global central banks and multilateral organisations.
The recent rebound of cryptocurrency is displaying rather different characteristics than the 2020/21 boom. There is evidence of a broader set of investors taking position, with retail investors, high frequency traders, and hedge funds crowding into the trade. Beyond outright holding of cryptos, the real action has been ETF like financial products backed by cryptos.
What began as a readjustment of holding structure from trusts to ETFs has now materialised into genuine base expansion of crypto holders. While inflows have eased somewhat after the initial frenzy earlier this year, the market for cryptos remains buoyant, holding up along with broader market risk sentiments.
In this issue of the digital assets update, we look at the base broadening of cryptos, presenting some research on the geographical dispersion of crypto owners. We also review the much-discussed Bitcoin “halving” and the associated technical aspects. We delve into the drivers of Ethereum investment and performance.
On the CBDC side, we review the latest developments and initiatives. Key policy considerations include addressing users’ priorities as well as maintaining control over the domestic financial system and monetary policy.
To read the full report, click here to Download the PDF.
Ma Tieying 馬鐵英, CFA
Senior Economist - Japan, South Korea, & Taiwan 經濟學家 - 日本, 南韓及台灣
[email protected]Topic
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