14 of the top 20 most traded cryptoassets are L1 tokensL1 defined as = general-purpose app platform and/or cryptocurrency https://t.co/pY87TAjYiA ...

Core Points - The Monetary Authority of Singapore (MAS) has postponed the implementation of new crypto prudential standards to 2027, delaying the original target of January 1, 2026, due to industry concerns [1][2] - The updated rules will require banks to hold capital reserves against their crypto exposures based on risk classification, aligning with Basel Committee standards [2][6] - Higher capital requirements will be imposed on cryptoassets deemed higher risk, while stable assets backed by eligible reserves may receive more favorable treatment [3][6] Industry Context - Singapore has been proactive in establishing a regulatory framework for digital assets, with initial rules implemented in 2020, aiming to balance innovation and financial stability [3] - As of April this year, approximately 26% of Singaporeans owned some form of cryptocurrency, and web3 investments represented 64% of total fintech funding in 2024, amounting to US$742 million [4] - Institutional interest in crypto is increasing, with 57% of local investors planning to boost their crypto allocations [4] Banking Sector Developments - Local banks are adapting to the delayed rules, with DBS launching tokenized structured notes on Ethereum and other banks exploring asset tokenization and stablecoin integration [5] - The changes aim to clarify how banks account for cryptoassets within their capital, liquidity, and large exposure frameworks, effectively integrating crypto exposures into existing prudential standards [6]

Core Points - The UK's Financial Conduct Authority (FCA) has lifted the ban on cryptoasset exchange-traded notes (cETNs) as of October 8, allowing these products to trade on FCA-approved Recognised Investment Exchanges like the London Stock Exchange [1] - The FCA's decision is based on the view that the crypto market has become more mainstream and better understood, providing customers with more choice while maintaining consumer protections [2] - Despite the lifting of the ban on cETNs, the FCA has clarified that the restriction on crypto derivatives, such as futures and options, remains in effect [5] Product Structure - In the UK and Europe, crypto products will be structured as Exchange-Traded Notes (ETNs), which are debt instruments issued by financial institutions, differing from Exchange-Traded Funds (ETFs) that hold the underlying asset [4] - ETNs will have a 1:1 backing by the asset but will operate similarly to bonds within the legal framework [4] - In contrast, U.S. crypto products, such as spot Bitcoin funds, are typically structured as ETFs, which are regulated funds that hold the asset in custody [3] Regulatory Context - The FCA has implemented strict financial promotion and Consumer Duty rules for cETNs, ensuring that investors are aware of the risks involved, as these products will not be insured by the Financial Services Compensation Scheme (FSCS) [2] - The FCA is also advancing its broader crypto regulatory framework, which includes proposals for stablecoins and other digital asset laws, while continuing to monitor high-risk transactions in the market [5]

Market Sentiment - Altcoin sentiment is at all-time lows while $BTC and $ETH are at all-time highs, attracting significant attention from outsiders [1] - Many people believe it's late in the cycle and plan to sell at the top [1] Future Outlook - The crypto industry anticipates 2025 and 2026 to be the most fruitful years for cryptoassets [1] - Innovative protocols are expected to drive meaningful traction in the crypto space [1]

Tokenization & TradFi Integration - Tokenization of TradFi products is likened to Treasury companies for cryptoassets, both representing sustaining innovation [1] - Both tokenization and treasury companies enhance existing products with new features and distribution methods [1] - Tokenized asset AUM and treasury company AUM are both poised for rapid growth [1]

Industry Trend - Tokenization of TradFi products is similar to Treasury companies for cryptoassets, both representing sustaining innovation [1] - These innovations enhance existing products with new features and distribution methods [1] - Both tokenized asset AUM (Assets Under Management) and treasury company AUM are expected to increase rapidly [1]

Market Overview - The total crypto market capitalization reaches $4 trillion [1] - The combined value of all cryptoassets equals the market capitalization of Nvidia [1]

Market Overview - The total market capitalization of cryptoassets surpassed $4 trillion for the first time [1] - The surge was driven by a rally in altcoins [1] Regulatory Landscape - Momentum came from a sweeping US legislative push to regulate the crypto sector [1]

Core Insights - The current macroeconomic environment is characterized by high levels of uncertainty, making it challenging to formulate rational expectations for future growth [1] Group 1: Analyst Background - The analyst has extensive experience in the hedge fund industry, having worked as a Portfolio Manager, Domestic Equity Analyst, and Trader since the mid-90s [1] - The analyst managed a domestic Long/Short Equity product with gross assets that peaked over 1 billion dollars [1] - The investment philosophy is fundamentally driven, focusing on value investments for long positions and catalyst-oriented short investments, complemented by technical analysis for risk management [1] Group 2: Investment Focus - The analyst aims to write about unconventional investments and overlooked securities, indicating a focus on niche opportunities [1] - The analyst is also involved in the analysis and investment of Cryptoassets, suggesting a diversification in investment strategies [1]