Market update - Nov. 3rd 2023

Largest inflows into digital asset investment products this year

The headline this week is that the Federal Reserve left interest rates unchanged, maintaining the status quo for the second consecutive meeting in its current tightening cycle. The odds of a December rate hike are only 26%, signalling some form of market uncertainty.

Crypto market volumes reached $10 billion a day last week, but fell to $3.5 billion a day - although there is investor enthusiasm, it also comes with some caution. This, however, didn't stop bitcoin from reaching $35,000 again.

Notably, this week saw the highest inflows into digital asset investment products this year, totalling $326 million.

Finally, we just released our latest fund manager survey, here are the insights:

• An increasing number of investors are buying digital assets for speculative purposes, while a nearly equal number are buying them because they perceive them as 'good value'.

• While regulatory concerns remain at the top of the risk list, we have seen a 7 percentage drop in the perceived risk of a government ban.