Crypto Market Cap Turns Green as Signs of Tepid Recovery Emerge
With the exception of bitcoin cash (BCH), all major cryptocurrencies traded in positive territory on Sunday, offering mild optimism that the worst of the bear-market rout had passed. Coins with established use cases in traditional finance – XRP and Stellar Lumens – were clearly outperforming the market.
The combined value of all cryptocurrencies peaked at $186.3 billion on Sunday, some $11 billion higher than last week’s swing low. At the time of writing, the total market was valued at $185.3 billion on daily trade volumes of $13.1 billion, according to CoinMarketCap.
Bitcoin, the leading digital currency, rose 1% to $5,600. BTC briefly bottomed below $5,200 at the height of the selloff last week.
XRP was by far the best performer Sunday, gaining 6.7% to $0.5129. In doing so, it extended its lead over Ethereum as the world’s second-largest cryptocurrency. The XRP market cap is currently valued at $20.7 billion compared with $18.1 billion for ether. The so-called “flippening” has occurred at various points over the last few months but was solidified earlier this week as XRP held up better than its competitors.
Looking further down the leader board, Stellar XLM gained 3.9% to $0.2513. Monero XMR, a leading privacy coin, rose 3.3% to $0.0615.
Crypto prices plunged by as much as $37 billion last week, marking one of the worst selloffs since the bear-market began earlier this year. The slump immediately followed the pump for the bitcoin cash hard fork, which drove the BCH price on a wild roller coaster consisting of 50% gains followed by equivalent losses.
The bitcoin cash price was down 1.8% on Sunday to trade at $383. The fourth-largest cryptocurrency was trading north of $630 earlier this month.
Regulators in Switzerland have approved the first-ever cryptocurrency exchange-traded fund (ETF), offering investors more options to buy and hold virtual currencies without the added risk. Beginning this week, the Amun Crypto exchange-traded product will begin trading on the Six Swiss Exchange under the ticker symbol HODL. The Six Swiss Exchange is Europe’s fourth-largest stock exchange.
The fund is comprised of five cryptocurrencies, with nearly half of its total holdings allocated to bitcoin. About one-third (30%) is allocated to XRP and the rest are put toward Ethereum, bitcoin cash and Litecoin.
The launch of a European crypto ETF shines the spotlight back on the U.S. Securities and Exchange Commission (SEC), which is expected to rule on a high-profile bitcoin fund application before the end of the year. While the U.S. securities regulator has already rejected more than a dozen bitcoin ETF proposals, market observers believe the application proposed by VanEck and SolidX has the best chance of being approved.
What sets the VanEck proposal apart from the competition is the structure of the fund itself, as well as comprehensive insurance designed to protect investors against the potential loss or theft of bitcoin. The fund is “physically” backed, which means it will be based on actual bitcoin and not futures contracts.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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