Block Asia Secondary Market Analysis – Sep 13, 2018
Disclaimer: The views and claims expressed here are not meant as an alternative form of investment advice. Every investment move involves risk, and you should consult professional financial advisors for guidance or conduct your own research before making a decision.
Bitesize Market Analysis
- Shanghai Huashan Hospital affiliated to Fudan University and Ant Financial Services Agreement jointly created the first blockchain electronic prescription in China. This e-prescription can not only solve the problem of accurate and unpredictable prescriptions in the hospital, but also reduce the risk of prescribing drugs.
- According to CCN, in the past year, the cryptocurrency market has entered an adjustment period, while the user base of Coins, the largest cryptocurrency exchange in Southeast Asia, has increased from 1.5 million to over 5 million.
Japan and South Korea
- Local media reports in South Korea, the Ministry of Knowledge Economy announced the establishment of a research group to improve the supervision of the blockchain and correct the old rules.
Europe and America
- In order to protect the public interest, the US Financial Industry Regulatory Authority (FINRA) first imposed disciplinary action on cryptocurrencies on September 11.
- The US financial technology window company Global Debt Registry is working with IBM to use blockchain technology to prevent double-counting mortgage assets in establishing asset-backed securities (ABS) portfolios.
In-depth market review
- The total market value of Global Cryptocurrency Assets
As of 17:00 on September 13, 2018, the global cryptocurrency market value was US$194.3 billion, 2.58% higher than yesterday’s market value of US$189.4 billion. The market value continues to fall; in the last 24-hour global cryptocurrency market volume totalled at US$12.1 billion, the volume was a slight increase compared with yesterday.
2. Volume of TOP 5 Digital currency exchange in the last 24hrs
As of 17:00 on September 13, 2018, the total volume of the top 5 exchanges in last 24hours were US$3.046 billion, an increase of US$86 million from the previous day of US$2.958 billion. With an increase of 3.9%, the trading volume of the top exchange remained stable.
3. Over the counter USDT liquidity premium rate
In the past three days, the USDT over-the-counter liquidity premium rate was lower than 1%. Today, it fell to 0.3%. As of 17:00, the premium rate is gradually increasing to 0.8%, and the global digital currency market is still in a state of downturn.
3. TOP 5 Digital currency change in market value
As of 17:00 on September 13, 2018, the market value of TOP 5 projects is BTC, ETH, XRP, BCH and EOS. From the last 24-hour fluctuations, TOP 5 is showing a rebound and a general increased.
- BTC’s current 24-hour decline is 2.09%, the current market value is 56.97%, and the market value is relatively stable;
- ETH is currently down 9.43% in 24 hours, and the current market value is 9.87%, up from 9.55% yesterday;
- XRP currently falls by 4.67% in 24 hours, and the current market value accounts for 5.50%;
- BCH’s current 24-hour decline is 3.46%, and the current market value is 3.94%;
- EOS currently falls by 2.65% in 24 hours, and the current market value is 2.32%;
In a summary, ETH has stopped falling and market conditions generally warmed up. The market value of the global cryptocurrency market returned to the order of $190 billion. In the absence of obvious market conditions, the market rebounded, and the high probability was oversold and rebounded.
4.Crypto Fear & Greed Index (FGI)
As of 17:00 on September 13, 2018, the Fear & Greed Index (FGI) of the digital currency was 20, which was two points higher than yesterday’s index. The degree of panic has eased, but it still belongs to the “extreme fear” level, and greed is relatively small. As shown in the chart, most investors are still pessimistic about the short-term digital currency market.
Topic of the day: Listing of Digital Asset Receipt (DAR）
Currently, the listing of digital currency derivatives has been appearing on the headlines. Firstly, there are still some differences between Electronic Trading Fund (ETFs) and Digital Asset Receipt (DAR) project developed by Citibank.
Unlike traditional index funds, ETFs essentially is an index fund and can be listed on exchanges. This would allow investors to buy and sell stocks that represent the “target index”. The issuer of the ETF first buys different assets according to a certain combination and integrates their prices into a price index, so that investors can rely on the price index to judge the rise and fall of the fund.
The DAR (Digital Asset Receipt) is similar to the ADR (American Depositary Receipt), which is a negotiable certificate issued by a US commercial bank to assist foreign securities in US transactions. The ADR represents stocks and bonds that are not publicly traded by non-US companies. As the issuer and market intermediary, the issuer provides all the services needed for ADR investors. The custodian is a bank arranged by the issuer in the issuing country of the underlying securities. It manages the assets of the issuer by holding local assets. Thus, realizing the separation of ownership and management.
From the above, the issuer of the ETF is derived from relevant assets. The purchase of the ETF fund is equivalent to indirectly holding the asset. Therefore, a circulating ETF is a market that can circulate the same assets. This investment method is more popular as it is easy to understand. The significance of ADR’s existence is to provide institutional investors channel to invest in a foreign investment.
Compared to the highly leveraged ETFs in the market, Citibank’s DAR is a more creditworthy digital currency investment. First, Citigroup is one of the world’s largest ADR publishers. DAR is endorsed by the world’s top financial institutions and has a natural advantage in commercial credit. Second, DAR investors do not directly hold digital currency, which reduces the risk and cost of investors’ storage, which is equivalent to lowering the entry threshold. Third, some institutional investors are subject to relevant regulations and cannot directly invest in the field of digital assets. Such DAR is issued by Citibank and regulated by the SEC, which clears the obstacles for institutional investors.
Today’s market summary
The total market value of global cryptocurrencies is currently US$194.3 billion, up 2.58% from yesterday’s market value of US$189.4 billion, and the total market value continues to fall. BTC fluctuated slightly in the range of US$6200-6400 today. The ratio of decline within 24 hours does not differ much from yesterday. The global market share is relatively stable and still higher than the market value of other crpyto-currencies. The market value of ETH today has increased versus yesterday, and the market has generally recovered.