21Shares Monthly Review: June 2022, Survival of the Fittest

The overall cryptoasset market capitalization is standing at $895B, down by 35% from $1.38T recorded by the end of May. Bitcoin’s valuation shattered by almost 40% in June, its second-worst month ever, while Ethereum is down by 48%. The best winners of June’s rally are Cardano and XRP, who dipped by 22% and 25% since last month. As the war intensifies between Russia and Ukraine, the grip tightens on resources, and purchasing power dwindles and goes hand-in-hand with the global food crisis into another era. A pending recession may become a reality — affecting the public equity market. The S&P 500 and Eurostoxx 600 recorded their worst first half since 1970 and 2008 respectively. Regarding factors driving the market from within, there’s been a “contagious” liquidity crisis affecting various companies and funds in the aftermath of the Terra/Luna collapse, with bigger crypto companies like FTX stepping in as a buyer of last resort, and in some cases, walking away.

Come what may, the crypto industry is on build mode as it has always been during its past bear markets. However, this time the industry has the leverage of institutional recognition and backing. Onchain data indicates that investors may be taking on the opportunity of the market drawdown, Michael Saylor for instance bought $10M worth of Bitcoin over the past month.

Figure 1: Bitcoin Monthly Performance

Source: TradingView

Key takeaways from this report

• Grayscale takes the SEC to court
• Compass Mining’s CEO and CFO resign amid liquidity issues
• FTX buys BlockFi, walks out on Celsius
• KPMG sets up a collaboration hub on the metaverse
• Solana’s fifth outage this year, two companies step in

Weekly Returns

The returns of the top five cryptoassets over the last week were as follows — BTC (-0.12%), ETH (0.87%), BNB (2.04%), ADA(-0.19%), XRP (-2.47%).

Media Coverage

The past week has brought some media attention to 21Shares’ new product suite. Financial Times featured 21Shares’ CEO and co-founder Hany Rashwan on the occasion of launching Bitcoin Core ETP, the first product in our Crypto Winter Suite.

21Shares Short Bitcoin ETP also gained some spotlight in the past week on the back of its assets under management reaching an all-time high. Crypto Compare wrote about it in its monthly research report, you can read more here.

On the other hand, our BOLD ETP was featured in Finanzen, one of the top German news websites when it comes to financial news.

Research Newsletter

Each week the 21Shares Research team will publish our data-driven insights into the crypto asset world through this newsletter. Please direct any comments, questions, and words of feedback to research@21shares.com

Disclaimer

The information provided does not constitute a prospectus or other offering material and does not contain or constitute an offer to sell or a solicitation of any offer to buy securities in any jurisdiction. Some of the information published herein may contain forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors. The information contained herein may not be considered as economic, legal, tax or other advice and users are cautioned to base investment decisions or other decisions solely on the content hereof.