Appold Market Watch - Week ending 2 May 2025

Market Update & Industry News - Week ending 2 May 2025

🔷 Digital asset investment products saw a significant resurgence last week, with $3.4 billion in inflows - the third highest on record. Bitcoin accounted for 93% of the inflows, of which BlackRock’s iShares Bitcoin Trust ETF (IBIT) made up nearly $1.5 billion, followed by Ethereum ($183 million) and XRP ($31 million).

 Appold View: There has been strong institutional demand for Gold and Bitcoin during the market turmoil caused by U.S. President Trump’s tariff policies, with strong selling pressure on traditional assets. BlackRock’s IBIT continues to dominate the BTC ETF market share. 

 🔷 The UK Government’s HM Treasury published draft legislation introducing new regulated activities for digital assets, such as operating exchanges, offering custody services, and issuing stablecoins. Public consultation on the draft rules is open until 25 May 2025. Meanwhile, the UK Financial Conduct Authority (FCA) has released a discussion paper seeking public and industry feedback on regulating digital asset activities, including staking, lending, and decentralised finance. The consultation period ends on 13 June 2025.

 Appold View: This draft legislation represents a necessary progression toward regulatory clarity for digital assets in the UK, which has often been criticised for its slow pace. We look forward to providing further commentary on this development soon.

 🔷 Coinbase, Animoca Brands, Fabric Ventures, and Founders Factory have launched a multi-million-pound accelerator programme in the UK to support digital asset and AI startups. Selected companies will receive up to £250,000 in funding and 16 weeks of mentorship.

 Appold View: At a time when the UK’s competitiveness, certainly when compared to the U.S., is increasingly under the spotlight, this announcement will bring some strategic confidence in the UK as a digital asset and AI innovation hub.

 🔷 World Liberty Financial's USD1, a dollar-pegged stablecoin launched by Donald Trump's digital assets venture in March of this year, is being used by Abu Dhabi investment firm MGX to invest $2 billion in Binance.

 Appold View: The use of USD1 will raise questions about political entanglements and regulatory scrutiny. Whether the use of USD1 in this transaction generates any future momentum for the stablecoin remains to be seen.

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