27th June 2023 > > TradFi.

tl;dr

TradFi is charging into cryptos, to the dismay of maxis, but to the general delight of those who live in the real world.

Market Snap

Market Wrap

BTC has settled once again into a tight trading range testing 30k to the downside, and 31k to the upside. Glassnode reports that BTC held on exchanges has dropped to 2.27mm, the lowest since December 2017, suggesting that sell-side pressure continues to diminish.

Curious Cryptos’ Commentary – The TradFi charge into cryptos

Here’s a handy cut-out and keep guide to some of the largest players in the TradFi world, and their crypto activities:

This is by no means comprehensive, but it is a useful guide, nonetheless. Currently BTC’s market cap is just over $600bn. If 5% of these specific assets under management are invested in cryptos that takes the market cap of BTC to around $2 trillion. That equates to a price of $100k.

Now, we can argue whether 5% is the right number, or 1%, or 10%. What we do know is that these total assets are a fraction of the assets available for investments globally. Once cryptos have been given the seal of investment approval by Blackrock assuming its application for a spot BTC ETF is approved, the tsunami of investment dollars will follow.

You don’t believe me? The first futures based BTC ETF in the US – ProShares BTC ETF Strategy – had its largest weekly inflow for a year immediately following the Blackrock application. Remember that investment managers and investment companies are judged not on absolute performance but relative performance. Relative to benchmarks and relative to other investment managers/firms. They mostly behave in a passive manner, and act like sheep. If Blackrock’s clients can get exposure to cryptos, so must everyone else’s.

Curious Cryptos’ Commentary – Here we go, HSBC

HSBC, the largest bank in Hong Kong, yesterday announced that its clients in Hong Kong will be able to buy and sell BTC and ETH ETFs listed on the local exchanges.

This is important for two reasons.

The timing suggests that the Blackrock ETF application has had an influence, further adding weight to my argument in favour of a tsunami of investment dollars heading our way.

But this is also further proof of a reversal of China’s previously negative stance on cryptos (https://www.curiouscryptos.com/post/14th-june-2023-hinman).

2023 is shaping up, crypto wise.