The Market in November
The Web3 sector had a November that will go down in the history books. After weeks of global excitement came the long-awaited moment of the U.S. presidential election. The unexpected happened: Trump’s victory created a wave of optimism that set the entire crypto market in motion. Bitcoin broke one record after another, the magical and psychological mark of $100,000 proved to be a moment for many investors to take profits.
At the moment, the price has calmed down, offering time to catch their breath after a strong advance. For the first time in a long time, other digital assets are also finding their way to the forefront, with Ethereum, among others, showing strength.
We would like to take you through the most important developments within the Web3 sector, and what they may mean for the future of digital assets.
An Unexpected Turn in Washington
It probably didn’t escape your notice; Trump won the election. Where analysts predicted weeks of uncertainty surrounding the election results, it became clear after only a few hours that Trump had a decisive lead in the crucial swing states. This result is particularly relevant to the crypto market, as Trump’s plans could have far-reaching implications for the sector:
– The US is considering holding Bitcoin as a national reserve for the first time in history, similar to gold
– The government plans to keep its confiscated Bitcoin (worth billions of dollars) rather than sell it
– Trump’s House of Representatives, Senate and team are now pro-crypto. This opens the way for incentive-based regulation across the Web3 sector
– Protecting the right to manage your own assets, a core principle of blockchain
In The News
- BlackRock’s Bitcoin Fund Surpasses Gold. A remarkable milestone was that BlackRock’s Bitcoin ETF, with ~$47 billion assets under management, is now larger than the Gold ETF with ~$33 billion. The big difference? The bitcoin fund reached this value in 10 months; the gold fund took almost 20 years. November marked the highest monthly inflow ever, with $6.5 billion flowing into the ETFs (16% more than in October).
- MicroStrategy Purchases $4.6 Billion in Bitcoin. They were already known as the American company with the largest Bitcoin reserve on its balance sheet. Recently, MicroStrategy raised almost $5 billion in capital to buy more Bitcoin. The company used these raised funds to purchase no less than $4.6 billion in bitcoin, at an average purchase price of $88,627.
- Michigan Steps into Ethereum. The pension fund of the state of Michigan has made an $11.1 million investment in Grayscale’s Ethereum fund, following an earlier investment of $6.6 million in Ark Invest’s bitcoin fund. Florida and other states are now exploring similar opportunities for their pension funds. Detroit has announced it will enable cryptocurrency tax payments from 2025.
- Gary Gensler Announces Departure. SEC Chairman Gary Gensler has announced he will step down from his position on January 20, 2025, the day of President Trump’s inauguration. During his term, Gensler was known for his strict regulation of the crypto market, which led to criticism from the sector. His departure marks a potential policy change in American crypto regulation.
- Swiss Bank UBS Focuses on Cross-Border Payments. UBS has completed a successful pilot with UBS Digital Cash, a blockchain-based payment system that makes cross-border payments more efficient. Using a private blockchain network and smart contracts, payments can be processed in real-time and executed automatically once predetermined conditions are met.
Six Capital’s Vision
In the weeks following the election, an interesting market shift developed. While Bitcoin attracted all the attention last year, we saw momentum gradually shift to other digital assets. Over the past years, many innovative Web3 projects were unjustly targeted by the SEC, which hampered their development. With the upcoming Trump administration, we expect a fundamental change – a shift from reluctance to stimulation of innovation. This creates unique opportunities, as many promising projects are still trading at attractive valuations.
As an active player in this dynamic market, Six Capital closely follows these developments. With our deep market knowledge and experience, we can quickly respond to new opportunities that arise in this rapidly evolving sector.
Web3 At The Table: An Inspiring Lunch
Want to experience the latest developments in the Web3 world up close? Join our monthly Business Lunch! In a relaxed setting, we share our expertise about the latest trends and possibilities in the Web3 sector over an excellent lunch. These interactive sessions not only offer valuable insights but also the opportunity to network with like-minded individuals and ask your questions directly to our experts. Reserve your place or schedule a personal meeting
