Core Fund Update
The Web3 market closed 2023 strong with flagship Bitcoin seeing a 154% gain and adding more than $530 billion to its market capitalization. As we begin the new year, January shows a cooling in the market, with the CCI30, the Web3 benchmark index, experiencing a slight monthly decline of -4%. Despite this cooling, the Core Fund experienced only a modest -2.23% decline, indicating a stable performance compared to the broader market trend. By utilizing DeFi services and in-house developed algorithms, the Core Fund was able to mitigate the impact of the decline and navigate through January’s volatile price action.
Performance Core Fund
Looking ahead, January marked an exciting turning point in the regulatory landscape of the Web3 space with many institutions and companies showing signs of further adoption. Early this month (Jan. 10, 2024), the Securities and Exchange Commission approved the first-ever spot Bitcoin exchange-traded funds (ETFs). A total of 11 Bitcoin ETF applications, including those from BlackRock, Grayscale and Fidelity, received the long-awaited green light for listings on major U.S. exchanges. Approvals marking a pivotal moment for the industry, Bitcoin experienced a slight price decline until mid-January with speculators benefiting from more than 50% gains in the fourth quarter. Despite reaching $38,500, Bitcoin ended January above $43,000 and recorded a 4% increase for the month of January.
ETF approvals allow both retail investors and financial institutions to have direct exposure to Bitcoin through regulated products and lower barriers to entry for more traditional investors. What initially looks like just a victory in the Web3 industry is in fact a monumental leap toward mainstream acceptance and a very strong signal for the industry’s long-term prospects. Within just one week of trading, Bitcoin ETFs in the U.S. surpassed silver ETFs in terms of assets under management. While Bitcoin may seem like a relatively new asset, the demand and interest is very clear. Overall, the approval of spot Bitcoin ETFs in January marks an important regulatory milestone and injects further confidence in the industry’s trajectory for success.
With the approval of spot Bitcoin ETFs in January marking a major regulatory milestone, Six Capital is positioned to confidently capitalize on the industry’s trajectory for success. Although January represented a significant victory in the regulatory landscape, it is only the beginning of what is to come. Explore our innovative DeFi strategies and algorithmic trading techniques tuned to exploit market volatility for optimal returns. Invest in the future, discover the Core Fund! Visit our website for more information.
Global Interest in the Web3 Industry
The approval for spot Bitcoin (BTC) ETFs has caused excitement not only in the U.S. but around the world. On Jan. 26, Harvest Hong Kong, one of China’s largest fund managers, filed the first application for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Remarkably, several other regional institutions in Hong Kong have expressed enthusiasm to apply for a spot BTC ETF in 2024. This follows recent endorsements and reflects a global trend of growing interest in the Web3 space. According to a report by Crypto.com, global ownership of digital assets experienced a remarkable 34% increase, reaching 580 million by the end of 2023. As the maturity of the Web3 landscape evolves, these developments show a growing interest in digital assets on a global scale. With the world’s increasing attention on the Web3 industry, now is the time to take the first steps to become part of this exciting market.
Anticipating the adoption of the Spot Ethereum ETF
With the smooth approval of the spot Bitcoin ETF, the regulatory focus is shifting to what is seen as the next step: Ethereum ETFs. While we anxiously await the decision, it is clear that a major breakthrough is on the horizon. Recent delay in decision-making on spot ETH ETFs with big names like Fidelity and BlackRock has only fueled anticipation for what is to come. While some experts hope for a quick approval, others believe it is only a matter of time before we see the green light. With Larry Fink of BlackRock remaining optimistic and seeing Ethereum ETFs as not just investments, but as revolutionary tools for tokenization on the Ethereum blockchain, the stage is set for a leap forward in the Web3 industry. As we ride this wave of excitement, let’s keep our eyes on the prize. The approval process for Ethereum ETFs may take time, but the rewards are undoubtedly worth the wait.
A Healthy “Alt-Coin” Market.
The overall “altcoin” market has experienced very positive developments despite a slight decline of 3.64% in total market capitalization. The industry is active with high trading activity and strong growth in active users. Remarkably, Crypto.com emerged as a powerhouse, with spot trading volume exceeding $30 billion in January alone, securing its spot as the 9th largest Web3 exchange. At the same time, Solana’s performance deserves special mention, as it shot to a record high in monthly stablecoin transfers, with an unseen $300 billion. This achievement etalizes the thriving ecosystem and ongoing development within layer-1 protocols. Against this backdrop of success, it is clear that on-chain activity is increasing in various ecosystems and is signaling a strong upward trend in adoption.
Business giants Embrace Web3
January also featured very substantial developments within enterprise adoption. A study by Coinbase revealed that more than 80% of Fortune 500 companies are either exploring or actively implementing Web3 initiatives. Interestingly, technology giants Google and Meta showed their enthusiasm in the industry by allowing Bitcoin ETF ads on their platforms, further validating mainstream acceptance of the Web3 space. Although overlooked by many, the admission of advertising for Web3 projects on these platforms is more than beneficial in the long run. Now hundreds of millions of new people can receive ads about Web3-related products and services, significantly opening up the market to a new view.
Morgan Stanley also made its presence felt by recognizing the adoption of spot Bitcoin ETFs as a potential game changer in institutional attitudes toward digital assets. Larry Fink, chairman of BlackRock’s board of directors, contributed to the optimistic sentiment by emphasizing the importance of real asset tokenization in the transition to Web3 and noted its potential to address issues such as money laundering and corruption. Meanwhile, Uber CEO Dara Khosrowashahi announced plans for Uber to accept digital assets as payment, marking another step toward widespread adoption by large companies. These developments demonstrate not only the growing influence of Web3, but also its increasing integration into various sectors. Amid this progress, Circle Internet Financial, the driving force behind stablecoin USDC, made a remarkable announcement. The Boston-based company has confidentially filed for a U.S. IPO, signaling its intention to become a publicly traded entity. As manager of USDC, Circle’s move fits perfectly with the broader trend of growing institutional involvement in the Web3 industry, fueling further optimism for its future prospects.
Conclusion
The approval of spot Bitcoin ETFs marked an important step toward widespread acceptance. Despite a slow start, Bitcoin’s value rose toward the end of the month, demonstrating the market’s resilience. Global interest in digital assets is also growing, with ETF filings in places like Hong Kong. Now the focus shifts to the expected approval of spot Ethereum ETFs. Large companies such as Google, Meta and Uber are also stepping into Web3, recognizing the growing interest and adoption.
The Core Fund is positioned to take advantage of these developments, leveraging expertise to navigate the evolving Web3 market. Looking ahead to February, Six Capital aims to further expand its presence in the Web3 industry, explore new opportunities and stay ahead of market trends. Through continuous adaptation, Six Capital remains committed to driving growth and delivering value to its unitholders.
Youniv3rse event March 14, 2024
We would like to welcome you WELCOME TO THE YOUNIV3RSE. The event to get a grip on the future of Web3, organized by CM.com, Gemeente Breda, Handpicked agencies, Inkubis and Six Capital.
Discover the power of Web3 at our event on Thursday, March 14, 2024 at WELCOME TO THE YOUNIV3RSE. Step into a universe full of new business opportunities. Web3 offers you new possibilities and greater control over data and interactions and can mean a complete transformation. It is time to create a new universe!
Getting a grip on the new Web3 reality:
- WELCOME TO THE YOUNIV3RSE: the place where it’s all about you.
- Learn about artificial intelligence, blockchain, connectivity, XR,VR, NFT, metaverse and more.
- Take control of the program of this event, just like in Web3.
- Be inspired by our speakers exploring the digital future.
- Engage with the experts afterwards.
When: Thursday, March 14, 2024, 1:30 – 6 p.m.Where: Konijnenberg 24 in Breda(CM.com) Right now it may feel like you’re in the dark, but we’re going to help you! So block March 14 in your calendar now and secure a ticket through this website with this discount code: WEBWBQNGZPT
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