Daily Report 13 Dec 2024

• BlackRock, the world's largest asset manager and holder of the largest spot Bitcoin ETF (which now holds over 2.38% of Bitcoin’s total capped supply of 21 million), said in a report released on Dec 12:

In a traditional portfolio with a mix of 60% stocks and 40% bonds, those seven stocks each account for, on average, about the same share of overall portfolio risk as a 1-2% allocation to bitcoin. We think that’s a reasonable range for a bitcoin exposure. Why not more? Going beyond that would sharply increase bitcoin’s share of the overall portfolio risk.

• In a Dec 12 statement, the Bank of England’s Prudential Regulation Authority (PRA) published a request in which it asks firms to disclose their “current and expected future cryptoasset exposures” and explain their use of the crypto-regulating Basel framework by next March, so it can monitor stability and help shape policy.
• Following other US states, legislation was introduced in the Texas House of Representatives on Dec 12 to establish a Strategic Bitcoin Reserve by accepting taxes, fees and donations in Bitcoin that would be held for a minimum of five years.
• Trump reaffirms his commitment to crypto and the creation of a Bitcoin Strategic Reserve while ringing the opening bell at the New York Stock Exchange.
• Binance fund inflows dominate 2024 by attracting $21.6 billion in user deposits, surpassing the next 10 exchanges combined by 40%. As per data shared by Richard Teng, the CEO of Binance:
  • The surge in average Bitcoin deposits from 0.36 BTC in 2023 to 1.65 BTC in 2024 underscores growing institutional involvement in the crypto sector.
  • Similarly, USDT deposits saw an increase from $19.6k to $230k, reflecting interest from corporate investors.
• A wallet linked to the defunct crypto exchange Mt. Gox moved another 2,324 Bitcoins worth $234 million to an unidentified wallet on Dec 12, possibly indicating impending creditor repayments despite the extended deadline which was pushed back from October 31 2024 to October 31 2025.
• The cryptocurrency sector valuation went back over $3.5 trillion on Thursday, currently at $3.6T, up 9% since the market crash halted on Tuesday but still below its all time high of $3.71T

• A report released on Dec 12 which analyzed over 902 million code commits across 1.7 million repositories to track value creation through developers shows that:
  • Crypto developers have grown 39% per year since Ethereum's launch in 2015. 39,148 new developers explored crypto in 2024.
  • 1 in 3 crypto developers work on multiple chains, up from < 10% in 2015.
  • Solana surpassed Ethereum in becoming the #1 ecosystem for new developers in July 2024, making it the #1 ecosystem for new developers overall in 2024, growing 83% year-over-year.