Digital Asset Weekly, Sep 14

Digital Assets ended the week modestly lower, falling -2%.  BTC ended the week little changed, helping to ease steep declines in most other coins/tokens.  Declines outside of BTC were broad based with only 27% of the top 200 coins/tokens ending the week higher.  Volume in the most actively traded coins was up slightly from the previous week with WoW gains in BTC, ETH and LTC helping to offset WoW declines elsewhere.

News flow this week was generally positive.  Headlines this week were led by Citi’s efforts to provide client access to digital assets, Robinhood considering an IPO, Canada approving a listed Bitcoin fund and the EU admitting that crypto assets are likely here to stay.

Looking into next week, continue to be cautiously optimistic on the back of modestly improving volumes, generally positive news, some big events in Oct/Nov (VanEck ETF ruling, Bakkt BTC settled futures launch) and traditional BTC seasonality.  Oct has been an up month for BTC 4 of the previous 5 years, Nov has been up 5 of the previous 5 years.

Given how ETH selling looks to be so clearly dominated by poor treasury management at ICO projects and how with the rush of newly launched derivative exchanges and hedging projects this will likely be a one off event – continue to like a conservatively sized long ETH position as a potentially high return non consensus trade.

Read the full report here: Digital Asset Weekly Sep 14 2018

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