Welcome to the latest edition of This Week in Crypto. In this issue, we’ll dive into the exciting developments from the world of cryptocurrencies and blockchain technology. From the resurgence of the NFT market to Hong Kong’s evolving stance on crypto regulations and Bitcoin’s recent 15th birthday celebration, this week’s newsletter promises to deliver a comprehensive roundup of the most significant stories shaping the crypto landscape. So, let’s jump right in and explore the dynamic and ever-evolving world of digital currencies and blockchain technology.
Crypto NFT Trading Volume Surges in October, Breaking Yearlong Downtrend
The NFT market has seen a resurgence with NFT trading volume increasing by $99 million in October compared to the previous month, according to a report from crypto data firm DappRadar. The 32% growth from $306 million in September to $405 million in October signifies a break in the yearlong downward trend in NFT trading. The market had faced a challenging period in 2022, particularly impacting profile picture (PFP) projects like the Bored Ape Yacht Club (BAYC) which experienced waning public interest. However, trading volume has increased alongside the recent recovery in Bitcoin prices, reaching its highest point in 16 months.
The report by DappRadar also highlighted the significant growth of the Solana network in NFT trading. NFT trading volume on Solana increased by 15%, reaching $27.6 million. Simultaneously, Solana’s price surged by 65% in October, rising from $23 to approximately $38. Ethereum, the second-largest cryptocurrency, maintained its leading position with a 50% increase in NFT trading volume across various blockchains that support NFTs.
Hong Kong Regulator Explores Opening Spot Crypto ETFs to Retail Investors
The Chief Executive Officer of Hong Kong’s Securities and Futures Commission (SFC), Julia Leung, has revealed that the regulator is considering allowing retail investors access to spot crypto exchange-traded funds (ETFs), according to a Bloomberg report.
This move represents a potential shift from the SFC’s previous stance, which restricted spot crypto ETFs to only professional investors. In recent months, Hong Kong has been actively working to establish a crypto-friendly environment, introducing measures such as a licensing framework for cryptocurrency exchanges, financial support for web3 development, and regulatory mandates for fair treatment of crypto clients by banks.
The interest in spot crypto ETFs in the crypto community has grown significantly, with major financial institutions seeking approval for spot Bitcoin ETFs from the U.S. Securities and Exchange Commission (SEC). However, despite market optimism, the SEC has delayed its decision on these applications until next year, leaving the fate of spot crypto ETFs in the United States uncertain.
Bitcoin Celebrates 15th Anniversary of White Paper Publishing
Last week, on October 31st, Bitcoin celebrated its 15th birthday, marking a significant milestone in the cryptocurrency’s history. It was on this day in 2008 that an anonymous individual or group using the pseudonym Satoshi Nakamoto released the Bitcoin white paper, outlining the vision for a decentralized digital currency. Over the past 15 years, Bitcoin has evolved from an obscure concept to a global phenomenon, achieving mainstream adoption and recognition as a legitimate store of value.
Bitcoin’s journey has been eventful, with growing interest from both institutional and retail investors. It has grown from its early days as a novel idea to become a recognized asset class, even attracting attention from major financial institutions and corporations. Here’s to another 15 exciting years of growth for Bitcoin!