Bitcoin ETFs surge with US$235.2m daily inflows

Weekly crypto wrap: 10th October 2024

TLDR

• BTC Markets Investor Study Report 2024 is now live!
• Real Vision’s Reality Check: Bull Market Correction.
• BTC ETFs surge with US$235.2m daily inflows while ETH ETFs stagnate.
• Bitcoin’s price holds steady amid shifting market dynamics.
• Grayscale introduces Aave investment fund.
• Sui soars 115% after USDC integration.
• Consumer sentiment in Australia reaches 2.5-year high amid easing inflation.
• US services sector expands, driven by rising job growth & declining unemployment.

BTC Markets announcements

BTC Markets Investor Study Report 2024 is live!

The third edition of the BTC Markets Investor Study Report highlights shifting dynamics in cryptocurrency investment. Once led by small retail investors, growth is now driven by non-retail participants such as sole traders, trusts, and SMSFs, reflecting a move toward long-term strategies.

Myths about demographic engagement are dispelled in the report, revealing that older generations and women are increasingly adopting traditional investment approaches to digital assets. The findings point to a growing sophistication in investment strategies, with established investors playing a key role in shaping the future of the market.

Read the Investor Study Report 2024 here.

Win a signed "Team Tori" T-shirt from Australian Olympian, Tori West!

We’re excited to welcome our sponsored athlete Tori West back to Australian shores! To celebrate, we’re giving away a signed ‘Team Tori’ T-shirt!

To enter:

• Follow BTC Markets and Tori West on X (Twitter).
• Retweet our post.
• Leave a comment on the BTC Markets promotional post for Tori!

Join here now!

Real Vision Deep Dives with Chief Crypto Analyst, Jamie Coutts.

Reality Check: Bull Market Correction.

The past six months have been tough for crypto markets, but a strong foundation is being laid beneath the surface of volatile prices and supply overhangs. Smart contract platforms (SCP) — the backbone of the digital asset ecosystem — are quietly experiencing increased adoption and capital inflows.

Despite concerns over potential political headwinds — a Harris victory or a more fiscally responsible Republican government could impact sentiment — the basis for assessing a secular technology, Blockchain, or adoption, appears to have its own momentum at this point.

Read the preview report: ‘Reality Check: Bull Market Correction.’

Only five days left until the ASX Markets Day for Charity with BTC Markets!

Join us next week by logging in to trade for the ASX Refinitiv Markets Day for Charity. On Tuesday, 15th October, BTC Markets will proudly support this key event alongside industry leaders such as ASX, NABtrade, Macquarie Bank, and Citi.

This day is about more than just trading; it’s about making a meaningful impact. Since 1996, the ASX Refinitiv Charity Foundation has raised over $40 million for charities focused on women, children, disabilities, and medical research.

How to get involved?

It’s simple! Just log in and trade on the day, and BTC Markets will donate 100% of our trading profits to these important causes. Join us in supporting Australians in need.

Read more here.

Streamline your 2024 crypto tax reporting with Syla.

Charlie Sherry, our Head of Finance, speaks with Nick Christie, Co-founder of Syla, about simplifying tax reporting for cryptocurrency investors.

Watch the video here.

Enjoy a 50% discount on your first year with any Syla subscription

• Use code: BTCM50.
• At checkout, before 31 October 2024.
• Valid across all plans.
• Visit Syla’s website for more information.

Learn: 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 Tori West.

In this episode, Caroline catches up with Tori West, a 2024 Paris Olympian and BTC Markets-sponsored athlete. They delve into her experience at the Olympic Games and the journey behind her blockchain company, Equil Labs.

Tori discusses how her passion for innovation inspired the creation of Equil Labs—a platform focused on tokenising sports and health data for athletes. The episode also explores the motivations behind Equil Labs, its impact on the sports industry, and what’s next for Tori in the 2024/2025 seasons.

Watch on YouTube or Ticker News.

Did you know…AUD card deposits are available at BTC Markets?

BTC Markets clients can deposit AUD directly into their account using Australian-issued Visa or Mastercard credit or debit cards.

This method provides a fast, convenient, and secure way to fund accounts instantly without leaving the exchange. Clients can simply log in and enter their card details to make an instant deposit.

Benefits of AUD card deposits include:

• Instant deposits without leaving the exchange.
• Flexibility to use Visa or Mastercard credit or debit cards.
• Enhanced security for card information.

Additionally, we offer other deposit methods such as Osko (PayID) and direct deposits.

Our goal is to provide Australians with easier access to digital assets and a more convenient trading experience.

Deposit AUD today!

BTC Markets in the news

Livewire Markets: Sophisticated investors to drive crypto’s revival.

According to the latest BTC Markets Investor Study Report 2024 launched last week, non-retail investors' initial deposits grew by an impressive 189%, while retail investors experienced a decline of 15%. Additionally, Self-Managed Super Funds (SMSFs) and trusts also saw increases, with deposit growth rates of 50% and 12%, respectively.

Read the full article here.

Sky News: Trump’s campaign ‘warmer’ towards cryptocurrency than Democrats.

BTC Markets CEO Caroline Bowler says the Trump campaign has been “warmer” towards cryptocurrency.

Ms Bowler told Sky News Business Reporter Edward Boyd that Donald Trump has “stepped into” launching his cryptocurrency projects.

“Which is probably the most engagement that we’ve seen from a major political figure in cryptocurrency around the world.”

Watch the full interview here.

SMSF Adviser: SMSF crypto investment on the rise.

BTC Markets’ Investor Study Report FY23–24 found that while a resurgence in investment has traditionally been driven by retail investors – consistent with the historical view of cryptocurrency as a “people’s movement” – a notable shift is occurring.

Read the full article here.

State of crypto

TLDR

• BTC ETFs surge with US$235.2m daily inflows while ETH ETFs stagnate.
• Bitcoin’s price remains steady amid shifting market dynamics.
• Ethereum proposal could increase transactions by 50%.
• Grayscale introduces Aave investment fund.
• Sui soars 115% after USDC integration.

The weekly trading stats as of Monday, October 7th at 11:00 am AEDT, based on data from Tradingview in USD.

BTC ETFs surge with US$235.2m daily inflows while ETH ETFs stagnate.

Bitcoin ETFs have recently seen a resurgence, recording their highest net inflows since September 27, with a total of US$235.2 million added on a single day. Leading the charge were Fidelity's FBTC, which attracted US$103.7 million, and BlackRock's IBIT, garnering US$97.9 million. This uptick underscores a growing investor interest in Bitcoin products, which have collectively amassed nearly US$18.75 billion in inflows since their launch in January 2024.

In stark contrast, U.S. Ethereum ETFs faced a significant setback, experiencing zero flows for the second time since their introduction in July. The first occurrence of this stagnation was on August 30. The nine Ethereum ETFs combined have seen a total outflow of US$500 million, highlighting a stark divergence in investor sentiment between Bitcoin and Ethereum products in the U.S. market.

Buy BTC/AUD on BTC Markets.

Source: TheBlock.co

Bitcoin’s price remains steady amid shifting market dynamics.

Bitcoin (BTC) hovered just above US$62,000, down 1.2% over 24 hours, as major traditional assets like stocks surged while gold and oil declined. Unlike the typical volatility in the crypto market, Bitcoin’s movement remained subdued despite significant shifts in equities, with the Nasdaq up 1.5%.

Market analysts suggest that traders are preoccupied with macroeconomic issues—such as tensions in the Middle East and U.S. economic policies—leaving less focus on crypto. Joshua Lim from Arbelos Markets noted diminished trading volumes and volatility.

Looking forward, well-followed trader Bob Loukas highlighted that Bitcoin is consolidating below its all-time high.

Ethereum proposal could increase transactions by 50%.

A new Ethereum improvement proposal, EIP-7781, aims to enhance the blockchain's throughput by 50% by reducing slot times from 12 seconds to 8 seconds. Proposed by Ben Adams, co-founder of Illyriad Games, this upgrade seeks to bolster Ethereum’s processing capacity, allowing for more efficient transaction handling and increased space for data blobs used by layer-2 networks like Arbitrum and Optimism.

Ethereum Foundation researcher Justin Drake noted that reduced block times could make decentralised exchanges like Uniswap 1.22 times more efficient. Ethereum co-founder Vitalik Buterin has also suggested increasing the blockchain's "gas limit" to further enhance throughput.

Trade ETH/AUD on BTC Markets.

Grayscale introduces Aave investment fund.

Grayscale Investments has launched a new investment fund, the Grayscale Aave Trust, for Aave’s governance token, AAVE, following a successful year for the token. This fund, available only to qualified investors, adds to Grayscale's lineup of single-asset crypto products, which also includes recent trusts for Sky (previously MakerDAO), Bittensor, and Sui.

Aave, a leading decentralised finance (DeFi) platform, enables transparent borrowing and lending through smart contracts, and currently holds nearly US$12 billion in total value locked (TVL). The AAVE token has seen a significant increase of over 110% in the past year, bolstered by tokenholders approving upgrades to its tokenomics, which directs part of the protocol's revenues to stakers.

Grayscale, the world’s largest crypto fund manager with about US$21 billion in assets, is known for its Bitcoin and Ethereum exchange-traded funds (ETFs) and is poised to expand its offerings further in the crypto space.

Buy AAVE/AUD on BTC Markets.

Sui soars 115% after USDC integration.

SUI experienced a remarkable 115% gain over the past month, driven by its integration with USDC, which spurred increased user activity and network engagement. The price surged from US$0.742 on 2nd September to a six-month high of US$2, nearing its all-time high of US$2.18.

This performance made SUI the second-highest 30-day gainer among the top 100 cryptocurrencies, while the broader market rose only 4.4%.

The Sui network saw substantial growth in transaction volumes, jumping 661% to nearly US$200 million, and the total value locked (TVL) increased to over US$1 billion, reflecting heightened user confidence and interaction.

Trade SUI/AUD on BTC Markets.

Crypto Fear & Greed Index

Source: alternative.me

The week ahead: economic events

Thursday, October 10th

• United States Core Inflation Rate MoM, Core Inflation Rate, Inflation Rate MoM and Inflation Rate.

Friday, October 11th

• United Kingdom Monthly GDP MoM
• Canada Unemployment Rate
• United States Producer Price Inflation MoM

Saturday, October 12th

• United States Michigan Consumer Sentiment

Sunday, October 13th

• China Inflation Rate and Balance of Trade

Tuesday, October 15th

• United Kingdom Unemployment Rate
• Germany ZEW Economic Sentiment Index
• Canada Inflation Rate

Wednesday, October 16th

• United Kingdom Inflation Rate

Thursday, October 17th

• Japan Balance of Trade

Source: trading economics

Market reflections

Overview

Consumer sentiment in Australia has reached a 2.5-year high due to easing inflation, while job ads have risen for the first time in eight months. Business confidence is improving but remains negative, and inflation is expected to stay high, according to the RBA. Additionally, new home loans have increased modestly, with investment lending hitting a record high. Australia's trade surplus held steady in August. Meanwhile, both the US and Germany reported strong trade surpluses, and Canadian economic activity rebounded significantly.

Australia

• Consumer sentiment in Australia reaches 2.5-year high amid easing inflation.
• Australian job ads rise for the first time in eight months.
• Business confidence improves but remains negative as conditions strengthen.
• Inflation ticks up as RBA warns of prolonged high levels.
• Australian new home loans rise modestly in August, investment lending hits record high.
• Slower growth in Australia's service sector as cost pressures ease.
• Australia's trade surplus holds steady in August, surpassing expectations.

Consumer sentiment in Australia reaches 2.5-year high amid easing inflation.

Australia's Westpac-Melbourne Institute Consumer Sentiment index surged by 6.2% month-on-month to a two-and-a-half-year high in October, following a 0.5% decline in the previous month. This significant rebound is attributed to recent interest rate cuts abroad and encouraging signs of easing inflation locally.

Consumers expressed increased optimism regarding economic conditions, with expectations for the next 12 months rising by 14.3% and a rise of 8.0% for the next five years. Additionally, assessments of family finances improved, as did sentiments regarding major purchases.

Unemployment expectations decreased by 6.2% to 129.8, remaining above the long-run average. Senior economist Matthew Hassan noted that the October sentiment reading marks the best outlook since the Reserve Bank of Australia's interest rate tightening phase began. Suggesting potential for a shift in the RBA's policy stance regarding inflation

Australian job ads rise for the first time in eight months.

The ANZ-Indeed Australian Job Ads increased by 1.6% month-over-month in September, rebounding from a revised 1.8% decline in the prior month. This marks the first rise in job ads in eight months, indicating a potential turnaround in the labour market.

Historically, Australian job advertisements have fluctuated significantly, with an average growth of 0.33% since 1975, peaking at 21% in June 2020 and reaching a record low of -43.2% in April 2020.

Business confidence improves but remains negative as conditions strengthen.

Australia’s NAB business confidence index rose in September, showing some improvement in retail and recreation and personal services. However, it remains in negative territory for the second consecutive month and below the long-term average.

Business conditions strengthened notably, with gains in sales, profitability, and employment. Growth in labour and purchase costs slowed slightly, while price growth for both products and retail items eased. Forward orders remained unchanged, while capital expenditure softened slightly, and capacity utilisation increased marginally to 83.1%.

Inflation ticks up as RBA warns of prolonged high levels.

The Melbourne Institute's Monthly Inflation Gauge rose by 0.1% in September, following a 0.1% decline in August. The Reserve Bank of Australia (RBA) noted that inflation, particularly the trimmed mean measure, remains elevated. While headline inflation is projected to decline, it is not expected to reach the 2-3% target range until 2026.

In Q2 2024, inflation rose to 3.8%, up from 3.6% in Q1, and August's annual CPI growth of 2.7% marked the slowest in three years. The RBA has kept the cash rate steady at 4.35% for the seventh consecutive meeting but remains cautious about inflation risks.

Australian new home loans rise modestly in August, investment lending hits record high.

The value of new home loans for owner-occupied homes in Australia increased by 0.7% month-on-month to AU$18.68 billion in August, a much softer rise compared to the previous month's 2.5% growth.

Purchases of existing dwellings slowed significantly (0.5% vs 3.3%), and newly erected dwellings declined (-4.1% vs 5.5%). However, construction of dwellings saw a partial recovery (1.6% vs -3.3%).

Geographically, new home loans grew in Queensland, South Australia, Tasmania, Northern Territory, and the ACT, but fell in New South Wales and Victoria. On an annual basis, new home loans jumped 16.8%. Meanwhile, investment lending for homes increased by 1.4% to AU$11.71 billion, reaching a record high, despite slowing from the previous month's 5.4% surge.

Slower growth in Australia's service sector as cost pressures ease.

The Judo Bank Flash Australia Services PMI Business Activity Index fell in September, indicating a slower expansion for the eighth consecutive month. Growth was supported by new business inflows, especially in consumer services, though the pace slowed due to weaker export demand and challenging trade conditions.

Service providers expanded their workforce, with job creation reaching its highest since May, helping reduce backlogs for the fifth consecutive month. Input costs continued to rise, though at a slower pace, prompting the smallest increase in selling prices since December 2020.

The Composite PMI Output Index dropped, reflecting a slight contraction in private sector output, driven by a decline in goods production that offset moderate services growth. New orders and business sentiment also slowed, while selling prices rose at a slower rate, easing cost pressures.

Australia's trade surplus holds steady in August, surpassing expectations.

Australia's trade surplus on goods remained stable at AU$5.64 billion in August, surpassing market expectations of AU$5.5 billion, marking the largest surplus since April despite marginal declines in exports and imports.

Exports dropped 0.2% to AU$43.23 billion, notable export declines occurred in shipments to Malaysia (-15.1%) and South Korea (-4.3%), while exports grew to India, Indonesia, Japan, and China.

Imports also edged down by 0.2% to a four-month low of AU$37.58 billion, with consumption goods seeing the largest decline.

Global

• US services sector expands, driven by rising job growth & declining unemployment.
• Germany's trade surplus soars to €22.50 billion in August.
• Canadian economic activity rebounds with a soaring Ivey PMI.

United States

US services sector posts strongest growth since February 2023.

The ISM Services PMI surged in September, exceeding expectations. This marks the strongest expansion in the US services sector since February 2023, driven by faster growth in business activity, new orders, and inventories.

However, employment in the sector declined, and price pressures increased, with concerns over supply pricing and labour availability persisting. Supplier deliveries returned to expansion, and backlogs of orders remained low.

Despite the robust growth, political uncertainty and potential port labour issues were noted as concerns by respondents. The recent interest rate cut was welcomed, though rising labour costs remain a challenge across industries.

US job growth surges as unemployment drops to 4.1% in September.

The US economy added 254,000 jobs in September, significantly higher than the forecast of 140,000 and an upwardly revised 159,000 in August, marking the strongest job growth in six months.

Key sectors contributing to the gains included food services and drinking places (+69,000), health care (+45,000), government (+31,000), social assistance (+27,000), and construction (+25,000). Manufacturing saw a small decline of 7,000 jobs, while employment in other sectors remained mostly stable. Revisions to July and August added 72,000 more jobs than previously reported.

The unemployment rate fell to 4.1%, its lowest in three months, surprising markets that had expected it to remain unchanged at 4.2%. The number of unemployed individuals dropped by 281,000, and employment levels rose by 430,000. The labour force participation rate held steady at 62.7%, while the employment-population ratio increased to 60.2%.

Germany

Germany's trade surplus soars to €22.50 billion in August.

In August, Germany reported a trade surplus of €22.50 billion, reflecting a strong performance in its export activities. Historically, the country's trade balance has averaged €7.14 billion from 1962 to 2024, with the highest surplus recorded at €26.80 billion in January 2024 and the lowest at -€0.39 billion in May 1991.

Canada

Canadian economic activity rebounds as Ivey PMI surges in September.

The Ivey Purchasing Managers Index (PMI) for Canada rose sharply in September, up from its lowest level in over 3.5 years. This increase exceeded market expectations and signalled a strong rebound in economic activity, indicating renewed expansion in the Canadian economy.

Notably, the price index eased to its lowest point in six months, suggesting that inflationary pressures may be moderating. However, the employment index declined, indicating a slowdown in hiring, while inventories dipped slightly. The unadjusted PMI also rose significantly, further reinforcing the improved outlook for Canadian economic activity.

Canada's trade deficit widens to in August amid declining exports.

Canada recorded a trade deficit in August, a significant increase from the revised deficit in the previous month and surpassing market expectations. This marks the sixth consecutive month of trade shortfalls and the largest since May, primarily due to a 1.0% decline in exports.

Scam awareness

What are P2P crypto scams?

At BTC Markets, your safety and security are our top priorities. We have noticed a concerning trend where scammers and money mules are increasingly using peer-to-peer (P2P) cryptocurrency platforms to bypass banking and exchange safeguards.

What is a P2P crypto platform?

A peer-to-peer (P2P) cryptocurrency platform is a decentralised platform that facilitates direct transactions between buyers and sellers. This happens without the need for an intermediary or central authority, such as a traditional exchange.

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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Disclaimer: The information provided on this page is issued by BTC Markets Pty Ltd (BTC Markets, we, us, our). The information is general only and is not intended to constitute an opinion or recommendation with respect to its contents. Past performance is not a reliable indicator of future performance. Any reference to past performance is intended to be for general illustrative purposes only. The information cannot be relied upon for any purposes and is not intended to be a substitute for professional advice.

The information does not purport to be complete, accurate or contain all of the information that a person may require to make a decision. It may also contain forward looking statements, which are subject to known and unknown risks, uncertainties, and other factors. We recommend you obtain professional advice before making any decision with respect to the matters discussed in this document. To the maximum extent permitted by law, BTC Markets will have no liability for any loss or liability of any kind: (i) arising in respect of the information contained (or not contained) on this page; or (ii) arising from a person relying on any information or statement contained on this page. The information provided is only intended for recipients in Australia. This information cannot be reproduced without our prior written permission.