Crypto leads 2024's biggest ETF launches.

Weekly Crypto Wrap: 5th September 2024

TLDR

• Ondo (ONDO) is coming to BTC Markets.
• Crypto leads 2024's biggest ETF launches.
• Ripple expands XRP Ledger with Ethereum-compatible smart contracts.
• Australia's GDP growth slowed, with manufacturing contracting while services rebounded.
• US job openings fell to their lowest since January 2021, while core inflation stabilised.
• China's official PMI contracted, though Caixin PMI improved.

BTC Markets announcements

Ondo (ONDO) is coming to BTC Markets.

We are excited to announce that Ondo (ONDO) will be live and available to trade on BTC Markets next Tuesday, September 10th.

Ondo Finance is an innovative financial infrastructure platform, harnesses blockchain technology to improve market efficiency, transparency, and accessibility.

For further details on Ondo Finance, please visit our blog. Follow us on X/Twitter, LinkedIn, or Facebook for the latest updates on new asset listings.

Trade with us on ASX Markets Day and support Australian charities in need.

BTC Markets is proud to once again support the ASX Refinitiv Markets Day for Charity on Tuesday, 15th October 2024. This event has become a cornerstone of Australia’s financial industry, uniting major players such as ASX, NABtrade, Macquarie Bank, Citi, and BTC Markets to raise funds for a wide range of charitable organisations.

The event goes beyond trading; it’s about making a meaningful impact in the lives of Australians who need it most. Since its inception in 1996, the ASX Refinitiv Charity Foundation has raised over $36 million, with all proceeds directly benefiting charities focused on women, children, disabilities, and medical research.

BTC Markets will donate 100% of our trading profits to Australian-based charities dedicated to these vital causes. We invite you to trade with us and help make a difference in the lives of thousands of Australians.

Read more here.

Unpacking the ATO’s latest guidance on crypto taxes for DeFi with Crypto Tax Calculator.

Our Head of Finance, Charlie Sherry, catches up with Patrick McGimpsey from Crypto Tax Calculator to talk about the latest guidance from the Australian Taxation Office (ATO) on the taxation of Decentralised Finance (DeFi).

Watch the video here.

Plus, use our exclusive discount code BTC30 to enjoy a 30% saving on all CTC plans before 31 October 2024. View more details here.

Start your crypto journey with BTC Markets' beginner's guide.

Explore the world of cryptocurrencies with BTC Markets' beginner's guide. Our Learn Section is crafted specifically for newcomers eager to understand the crypto space.

What you’ll find in our Learn Section:

• Introduction to cryptocurrencies: Explore the fascinating world of cryptocurrencies and their potential role in the future of finance.
• Getting started in crypto: Learn the basics about crypto wallets, exchanges and creating an account.
• How to buy and sell crypto: Learn how to buy, sell, and store crypto on an exchange, and secure your assets with best practices.
• How to stay safe in crypto: Stay safe in the crypto space by understanding the common scams and how to avoid them.
• Crypto tax requirements: Understanding the regulatory landscape and tax reporting requirements for crypto.

Visit our Learn Section today and start your journey towards becoming a confident and informed crypto enthusiast. With BTC Markets, the future of finance is at your fingertips.

Explore now.

BTC Markets x Ticker News ‘Crypto Corner’ featuring Samira Tollo.

In this episode, Caroline sits down with Samira Tollo, CEO of Elbaite, for an engaging discussion about her unique background and how her experiences in Afghanistan have influenced the creation of Elbaite.

Samira shares her personal journey, shedding light on the importance of self-custody, particularly during times of economic uncertainty such as recessions and high inflation.

Watch now on YouTube or Ticker News.

BTC Markets in the news

Fintech Fun podcast: Caroline Bowler discusses BTC Markets and crypto trends.

Our CEO, Caroline Bowler joins Chris Titley, host of the Fintech Fun podcast series, to talk about how BTC Markets became one of Australia's top cryptocurrency exchanges. Caroline discusses her traditional finance background and its influence on her innovative approach in the digital assets space. She highlights that BTC Markets, with over eleven years in the industry, stands out for its commitment to security and localised solutions.

Listen to the podcast here.

Mobile app fiat and crypto withdrawals.

Did you know that you can now easily withdraw fiat and cryptocurrency using our latest mobile app update?

This feature allows you to effortlessly manage your withdrawals and track transfer statuses through a comprehensive history list.

The feature is live in the most recent app release. Update your mobile app from the App Store (iOS) or Google Play Store (Android). Discover more about this exciting mobile app update here.

State of crypto

The weekly trading stats as of Monday, September 2th at 10:00 am AEST, based on data from Tradingview in USD.

Crypto leads 2024's biggest ETF launches: The ETF Store.

In 2024, cryptocurrency exchange-traded funds (ETFs) have dominated the ETF market, with 13 out of the 25 largest ETF launches by year-to-date inflows.

The top four ETF launches by inflows have all been spot Bitcoin ETFs, led by BlackRock’s iShares Bitcoin Trust (IBIT) with nearly US$21 billion. It is followed by Fidelity Wise Origin Bitcoin Fund (FBTC) with about US$10 billion, and both ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF Trust (BITB) with each reporting around US$2 billion in inflows.

The iShares Ethereum Trust ETF (ETHA) is in seventh place, leading Ethereum ETFs with over US$1 billion in net inflows, reaching this milestone in August, according to Morningstar data.

Overall, net assets in spot Bitcoin and Ethereum ETFs have exceeded US$60 billion. The market is expected to expand further into other digital assets and diversified crypto indexes, with numerous crypto ETFs awaiting regulatory approval. This surge in inflows marks unprecedented adoption levels in the ETF industry.

21.co introduces Bitcoin Wrapper on Ethereum.

21.co, the parent company of 21Shares, has launched its own Bitcoin wrapper, 21.co Wrapped Bitcoin (21BTC), on the Ethereum blockchain.

This expansion includes existing wrapped tokens like Avalanche, Polkadot, and Solana. Designed for institutional-grade security, 21BTC aims to apply stringent asset management practices to wrapped assets, ensuring user protections through cold storage and regulated third-party custodians.

21.co, known for its cryptocurrency exchange-traded funds (ETFs), including ARK 21Shares Bitcoin ETF (ARKB) and 21Shares Core Ethereum ETF (CETH), aims to enhance liquidity and interoperability across multiple blockchain networks with 21BTC.

Trade BTC/AUD on BTC Markets.

Source: TheBlock.co

Ethereum restaking surge fuelled by declining APRs and ETH supply growth.

The surge in Ethereum restaking is largely driven by a decrease in annual percentage rates (APRs) for staking, as highlighted by P2P.org.

Staking involves locking up cryptocurrency in a smart contract to earn rewards, which is crucial for maintaining the security of proof-of-stake (PoS) blockchains. As decentralised finance (DeFi) evolves, restaking has emerged as a method to maximise returns by reusing staked tokens to earn additional rewards.

This process allows stakers to use their Ether (ETH) multiple times, thereby increasing their overall rewards and contributing to network security. The increased popularity of restaking has also led to a rise in ETH’s token supply, which surpassed 120 million on August 15. The growing demand for restaking, driven by the potential for higher returns, has further fuelled the issuance of ETH.

Trade ETH/AUD on BTC Markets.

Ripple expands XRP Ledger with Ethereum-compatible smart contracts and cross-chain interoperability.

Ripple is enhancing the XRP Ledger by introducing Ethereum-compatible smart contracts via a new sidechain, broadening its use beyond simple transactions to include complex applications like decentralised exchanges and token issuance.

This development leverages the Ethereum Virtual Machine (EVM) on the XRPL EVM sidechain, allowing developers to use familiar tools and languages from Ethereum, thereby attracting a wider developer community. The sidechain will utilise the Axelar network for cross-chain token transfers, with Wrapped XRP (eXRP) serving as the primary token, enabling interoperability across 55 blockchains.

This move, which follows Ripple's initial tests in 2022, aims to strengthen the XRP ecosystem by integrating advanced smart contract functionality, positioning XRP Ledger for greater adoption in decentralised finance (DeFi) and other blockchain applications.

Trade XRP/AUD on BTC Markets.

Libre integrates NEAR for tokenised assets and enhanced blockchain access.

Libre, a tokenisation firm backed by Brevan Howard, has integrated with the NEAR blockchain, enabling users to access tokenised financial assets like the Hamilton Lane credit fund, Brevan Howard Master Fund, and Blackrock ICS Money Market Fund. NEAR Protocol’s Chain Signatures tool allows users to purchase and manage these assets across multiple blockchains without needing cross-chain bridges, enhancing interoperability.

Since its launch four months ago, Libre has surpassed $100 million in assets under management. The firm, in collaboration with Nomura's Laser Digital and other financial giants, aims to expand its offerings, including collateralised lending and secondary asset transfers.

Additionally, Libre plans to introduce a market-neutral fund across all networks in October, reflecting its commitment to broadening access to real-world assets (RWA) through blockchain technology, appealing to institutional investors exploring the crypto space.

Trade NEAR/AUD on BTC Markets.

Crypto Fear & Greed Index

Source: alternative.me

The week ahead: economic events

September 6th: United States ISM Services PMI, Non-Farm Payrolls & Unemployment Rate, Germany Balance of Trade & Canada Unemployment Rate.

September 7th: Canada Ivey Purchasing Managers Index & China Balance of Trade.

September 9th: China Inflation Rate.

September 10th: Australia Consumer Confidence MoM, United Kingdom Unemployment Rate.

September 11th: United Kingdom Monthly GDP MoM, United States Core Inflation Rate.

Source: trading economics

Market reflections

Overview

Australia's Q2 2024 GDP growth slowed, with manufacturing contracting while services rebounded. Housing approvals surged, as inflation cooled due to falling commodity prices. Business investment, particularly in building, slumped significantly. In the US, job openings fell to their lowest since January 2021, while core inflation stabilised. China's official PMI contracted, though Caixin PMI improved, and India's growth slowed to 6.7% amid spending cuts. Germany's inflation dropped to March 2021 levels, with mixed consumer confidence. Globally, manufacturing struggled while services rebounded, and inflation cooled as commodity prices declined, despite stagnant retail sales and housing credit growth.

Australia

• GDP growth slows in Q2 2024 as spending and investment falter.
• Industry and services diverge as manufacturing woes persist; services rebound.
• Manufacturing remains in contraction, while housing approvals surge.
• Inflation cools in August as commodity prices continue to decline.
• Housing credit growth picks up in July while retail sales stagnate.
• Business investment slumps in Q2, hit by sharpest drop in building spend in four years.

GDP growth slows in Q2 2024 as spending and investment falter.

Australia’s economy grew by 0.2% quarter-on-quarter in Q2 2024, maintaining the same pace as the previous quarter but falling short of the 0.3% forecast. This marks the 11th consecutive quarter of growth but the weakest in five quarters.

Government spending increased by 1.4%, supporting the economy, while household spending fell by 0.2% due to reduced discretionary expenses. Exports rose by 0.5%, while imports decreased by 0.2%. Fixed investment continued its decline, and changes in inventories subtracted 0.3 percentage points from growth.

The annual GDP growth was 1.0%, the lowest since Q4 2020, and the economy expanded by 1.5% in 2023-24, the slowest pace since 1991-92 excluding the pandemic.

Industry and services diverge as manufacturing woes persist; services rebound.

In August, the Ai Group Australian Industry Index marked its 28th consecutive month of contraction, with declines in activity, sales, inputs, and employment. Despite discount efforts, overall activity remained negative, and skilled staff shortages persisted.

In contrast, the Judo Bank Australia Services PMI showed robust expansion in services, driven by new business and export growth.

The Australian PCI for construction and the Ai Group Industry Index for manufacturing both fell further into contraction, impacted by decreased capital expenditure and rising costs.

However, the Judo Bank Composite PMI indicated a rebound in overall output, led by the service sector, as business confidence improved.

Manufacturing remains in contraction, while housing approvals surge and corporate profits slump.

The Judo Bank Australia Manufacturing PMI rose, indicating a continued contraction in manufacturing for the seventh straight month, though at a slower pace. Despite improvements in sentiment and export orders, overall demand weakened, leading to reductions in purchasing, inventories, and employment.

Meanwhile, the CoreLogic Home Value Index showed a 0.5% month-on-month increase in home values, marking the 19th consecutive rise, though growth is slowing. The was a significant 10.4% surge in dwelling approvals in July, the highest in over a year and a half, driven by a sharp rise in private sector dwellings excluding houses.

Conversely, corporate profits contracted by 5.3% in Q2 2024, the steepest decline since Q2 2023, with significant drops in key sectors such as mining and retail.

Additionally, ANZ-Indeed reported a 2.1% decline in job ads for August, reflecting a slowing economy and higher borrowing costs.

Inflation cools in August as commodity prices continue to decline.

Australia's inflation showed signs of easing in August, with the Melbourne Institute's Monthly Inflation Gauge dipping after five months of increases, largely due to the Energy Bill Relief Fund rebate lowering electricity costs.

The monthly CPI indicator also hit a four-month low at 3.5% in July. The Q2 inflation rate stood at 3.8%, its lowest in nine quarters. The RBA held the cash rate at 4.35%, citing slow GDP growth and rising unemployment.

Concurrently, the RBA's Index of Commodity Prices fell sharply by 5.2% year-on-year, driven by declining iron ore prices.

Current account deficit hits six-year high amid falling trade surplus and rising debt costs.

Australia's current account deficit surged to AUD $10.7 billion in Q2 2024, the largest since 2018, driven by a reduced trade surplus and rising net primary income deficit. The trade surplus fell to AUD $11.8 billion, reflecting declining commodity prices, while the net primary income deficit increased due to higher debt interest payments.

Housing credit growth picks up in July while retail sales stagnate.

In July, housing credit in Australia increased by 0.5%, the highest growth in three months, following a 0.4% rise in June.

Retail sales stagnated year-on-year, falling short of the expected 0.3% increase, with mixed performance across different retail sectors. The value of loans and private sector credit both rose, marking the strongest growth in 14 months and surpassing market forecasts.

Business investment slumps in Q2, hit by sharpest drop in building spend in four years.

In Q2, Australia's total new capital expenditure declined by 2.2% quarter-on-quarter, reversing a 1.9% increase in Q1 and marking the first contraction since Q3 2023.

Year-on-year, private capital expenditure grew by just 0.3%, matching the revised growth from Q1 2024.

Australia's trade surplus rises to in June, boosted by exports.

Australia's trade surplus increased in June, exceeding expectations as exports rose 1.7%, driven by mineral fuels. The overall surplus reflects strong export performance amid mixed import activity.

Global

• US job openings drop to lowest since January 2021; core inflation stabilises in July.
• Manufacturing PMI contracts, while Q2 GDP growth revised up to 3.0%.
• China's official PMI contracts, but Caixin PMI shows improvement in August 2024.
• India’s economic growth slows to 6.7% in June quarter due to spending cuts.
• Germany inflation falls to March 2021 levels; consumer confidence mixed in August.

United States

Job openings drop to 7.673 million in July, hitting lowest level since January 2021.

In July 2024, U.S. job openings fell by 237,000 to 7.673 million, marking the lowest level since January 2021 and coming in below market expectations of 8.10 million. Significant decreases were observed in sectors like health care and social assistance, state and local government excluding education, and transportation, warehousing, and utilities.

However, professional and business services saw an increase, and federal government positions also rose. The number of hires and total separations remained relatively stable at 5.5 million and 5.4 million, respectively. Notably, job quits dropped to 3.277 million, the lowest since September 2020.

Core inflation stabilises in July, as personal income and spending rise.

The US core PCE price index, the Federal Reserve's preferred measure for underlying inflation, rose by 0.2% in July 2024, consistent with June and market expectations.

Year-over-year, core PCE prices increased by 2.6%, slightly below the expected 2.7%, supporting the case for potential rate cuts by the Fed.

Meanwhile, personal income in the US grew by 0.3% to $24.015 trillion, exceeding expectations, driven by rising wages and salaries. Personal spending also increased by 0.5%, with notable contributions from services and goods, particularly housing, motor vehicles, and food.

Manufacturing PMI remains in contraction as factory activity struggles.

The ISM Manufacturing PMI in the US inched up in August 2024, falling short of market expectations of. This marks the 21st month of contraction in US manufacturing over the last 22 months, reflecting ongoing challenges in the sector.

Key indicators show a continued decline in new orders, and a faster drop in production. Employment also decreased for the third consecutive month, though at a slower rate.

Notably, input prices increased more than anticipated, complicating the Federal Reserve's efforts to manage inflation.

GDP growth revised up to 3.0% in Q2 2024, driven by stronger consumer spending.

In Q2 2024, the US real GDP grew at an annual rate of 3.0%, up from 2.8% in the initial estimate and significantly higher than 1.4% in Q1.

The revision was driven by stronger consumer spending, private inventory investment, and non-residential fixed investment.

Despite higher imports, which negatively impact GDP, revisions also included downward adjustments to non-residential fixed investment, exports, private inventory investment, and government spending.

China

Manufacturing sector shows mixed signals in August 2024: Official PMI contracts while Caixin PMI improves.

In August 2024, China's manufacturing sector experienced mixed signals. The official NBS Manufacturing PMI dropped, marking the fourth consecutive month of contraction and the steepest decline since February. Factory output, new orders, and buying levels all fell, while input and output prices decreased sharply.

In contrast, the Caixin China General Manufacturing PMI showed a slight improvement, as new orders grew and production expanded, driven by better domestic demand. However, foreign demand declined, and firms faced continued supply chain challenges. Business sentiment improved, reaching a three-month high.

Germany

Inflation drops to lowest level since March 2021 as prices edge down in August.

Germany's annual inflation rate decreased to 1.9% in August 2024, falling short of forecasts and reaching its lowest level since March 2021.

The Consumer Price Index (CPI) fell by 0.1% month-on-month, contrary to expectations of a slight increase. The EU-harmonised CPI also declined to 2% year-on-year and 0.2% month-on-month.

Japan

Consumer confidence holds steady in August, with mixed outlook on income and employment.

Japan's consumer confidence remained steady in August 2024, below market expectations but marking the highest morale since April.

Households felt more optimistic about buying durable goods and overall livelihood, but sentiment declined for income growth and employment.

India

Economic growth slows to 6.7% in June quarter amid election-driven spending cuts.

India's economy grew by 6.7% year-on-year in the June quarter of 2024, slowing from 7.8% in the previous quarter and missing the expected 6.9% growth rate. This was the slowest growth in five quarters, largely due to a significant reduction in government spending amid the general elections.

The data also indicates that while consumer spending is slowing, the Indian economy remains somewhat resilient to the RBI's high interest rates, supporting a more cautious approach within the central bank.

https://www.mospi.gov.in/

Eurozone

Inflation eases to 2.2% in August, driven by falling energy costs.

In August, the Eurozone's annual inflation rate dropped to 2.2%, down from 2.6% in July, marking the lowest increase since July 2021.

This decline aligns with market expectations and suggests progress toward the ECB's 2% target, largely driven by a sharp decrease in energy costs. However, inflation for services and food, alcohol, and tobacco saw a slight uptick.

France

Inflation slows to 1.9% in August as energy prices drop.

In August, France's annual inflation rate slowed to 1.9%, the lowest since August 2021, down from 2.3% in July but slightly above expectations. The deceleration was driven by a significant drop in energy prices, particularly petroleum and electricity. However, service prices rose to 3.1%, driven by higher accommodation and transport costs.

On a monthly basis, the CPI increased by 0.6%, influenced by seasonal price rises in clothing and footwear. The EU-harmonised CPI grew 2.2% year-on-year and 0.6% month-on-month, exceeding forecasts.

Italy

Italian inflation falls to 1.1% in August, driven by accelerated energy deflation.

Italy's annual inflation rate decreased to 1.1% in August, down from 1.3% in July and below expectations of 1.2%. The EU-harmonized inflation rate also eased to 1.3%, remaining below the ECB's 2% target for the eleventh consecutive month.

The decline was driven by accelerated energy deflation, particularly in the unregulated segment. However, regulated energy costs and processed food prices saw an uptick. On a monthly basis, consumer prices increased by 0.2%, slower than July's 0.4% rise.

Canada

GDP growth hits 2.1% in Q2 2024, boosted by government spending and business investment.

Canada's GDP grew by 2.1% in annualised terms during the second quarter of 2024, marking the strongest expansion since Q1 2023 and surpassing expectations of a 1.6% rise.

This growth was driven by increased government spending and business investment in machinery and equipment, while household spending slowed, and exports and housing investment declined.

Bank of Canada cuts interest rate to 4.25% amid slowing economy and inflation concerns.

The Bank of Canada reduced its key interest rate by 25 basis points to 4.25% during its September 2024 meeting, marking the third consecutive cut. This decision comes after a 10-month pause following the end of the rate hike cycle at 5%.

The central bank cited excess supply in the economy as a key factor putting downward pressure on inflation, justifying the extended rate cuts. Policymakers also expressed concerns about the risk of undershooting inflation targets and the potential for overtightening.

Despite a cooling labour market, wage growth remains high compared to productivity. However, inflation continues to be elevated in shelter and selected services, with the central bank acknowledging ongoing risks to price growth.

Scam awareness

Safeguarding against cyber scams.

In today's digital world, spotting a cyber scam is more important than ever. Scams are a common way for cybercriminals to hack into accounts, putting individuals, businesses, and institutions at risk. Staying alert to scam messages is key to protecting yourself online.

Scammers use all sorts of communication methods, email, text messages, phone calls, and social media, to trick people. Their main aim is to get you to hand over money or personal information. They often pretend to be someone you trust, using that familiarity to create a false sense of security.

Read the full blog here.

The ASIC provides a checklist of common scams and ways to avoid them. To learn more, visit ASIC’s website.

Discover more on our ‘Compliance conversation’ blog page, where we share the latest updates on safeguarding against scams and protecting your assets. Stay informed and stay protected!

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Weekly prices are accurate as of 10:00 AM AEST on 05/09/2024.