The Cryptocurrency Revolution Continues: October 2024 Market Report

October 2024 brought forth many notable developments in the industry. There were significant inflows into Bitcoin and Ethereum ETFs

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October 2024 brought forth many notable developments in the industry. There were significant inflows into Bitcoin and Ethereum ETFs, indicating increased institutional interest. Alongside these impressive ETF flows, technological advancements and strategic partnerships emerged across a variety of protocols. This report explores these events, including Bitcoin's role in global finance, Ethereum's ongoing infrastructural improvements, initiatives within the Solana ecosystem, and specific updates from projects like Ethena.

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Bitcoin ETFs Overview

The net inflow of Bitcoin exchange-traded funds in October 2024 amounted to a remarkable $5.4 billion. The breakdown of these flows is as follows:

Daily Flow Analysis:

BTC ETF Flows October vs September

Between September and October, Bitcoin ETF flows demonstrated substantial variance:

Bitcoin Institutional Adoption Continues

In early October, Franklin Templeton submitted a proposal to the U.S. Securities and Exchange Commission to launch an ETF indexing both Bitcoin and Ethereum. This ETF aimed to provide investors with combined exposure to both cryptocurrencies within a single fund, a first in the industry. Managed by BNY Mellon and Coinbase Custody, the fund would not engage directly in staking or other income-generating activities. SEC approval would depend on implementing anti-fraud measures related to regulated futures markets.

Similarly, global asset manager VanEck introduced its inaugural venture capital fund, raising $30 million to invest in fintech, crypto, and artificial intelligence startups. Led by former Circle Ventures executives Wyatt Lonergan and Juan Lopez, the fund intends to support early-stage companies through pre-seed and seed funding rounds. VanEck Ventures plans 25–35 investments, each ranging from $500,000 to $1 million, as part of a long-term strategy for engaging with transformative opportunities in finance.

Continuing the trend of institutional adoption, Fidelity International tokenized a money market fund using JPMorgan's Onyx Digital Assets blockchain platform, aiming to enhance efficiency while reducing transaction costs and risks. This move allows fund shares to be used as collateral without cash conversion, potentially improving market stability.

Prominent investors also voiced increased confidence in cryptocurrencies. Billionaire hedge fund manager Paul Tudor Jones announced his long position on Bitcoin, viewing it as a hedge against inflation. In a recent interview, he cited concerns about inflation due to U.S. government debt, advocating for investments in Bitcoin, gold, and commodities while avoiding fixed-income assets. Jones considered these assets under-owned and saw them as smart investments in an inflationary environment.

In line with the growing interest in Bitcoin as an inflation hedge, Microsoft considered a proposal to add Bitcoin to its corporate treasury, with a shareholder vote scheduled for December 10, 2024. The proposal suggested investing even 1% of Microsoft’s assets in Bitcoin to mitigate inflation risks. However, the company's board recommended voting against it, citing concerns about Bitcoin's volatility and regulatory uncertainties. Even if shareholders vote in favor, the decision would be non-binding.

Meanwhile, MicroStrategy announced plans to raise $42 billion over the next three years to purchase Bitcoin. Known as the "21/21 plan," the strategy involves raising $21 billion from debt and $21 billion from equity offerings. This initiative aims to bolster MicroStrategy's position as a major Bitcoin holder, with current holdings valued at approximately $17.45 billion. Despite criticism, CEO Michael Saylor remains committed to promoting Bitcoin as a treasury reserve asset.

Together, these developments underscore Bitcoin’s expanding role in the global financial landscape.

Ethereum ETFs Overview

Ethereum spot ETFs also saw increased flows in October 2024, with net inflows amounting to $84.8 million. Here’s a breakdown of notable daily flows:

Daily Flow Analysis:

A comparative analysis of Ethereum ETF flows between September and October revealed moderate gains and some declines:

Ethereum Institutional Adoption Continues

Visa introduced the Visa Tokenized Asset Platform (VTAP) on the Ethereum blockchain, enabling banks to issue and manage tokens backed by fiat currencies. Through VTAP, financial institutions can create, transfer, and redeem tokens tied to currencies like the euro and the dollar, bridging blockchain technology with conventional banking systems. BBVA is among the first banks piloting the platform, with live tests anticipated in 2025. Beyond fiat-backed tokens, VTAP also supports stablecoins and tokenized deposits, providing a programmable and interoperable solution for banks.

Efforts also continue to enhance Ethereum's network efficiency, which underpins numerous blockchain applications, including VTAP. Ethereum Improvement Proposal 7781 (EIP-7781) proposes reducing the network's slot

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