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Bitcoin saw its price spike above $27,600 on eToro last week, but the rally was short-lived as fears over the timing of spot ETF approvals snuck back into the market. 

The cryptoasset began the week around $25,700 and despite the midweek rally has now retreated to trade around a similar level. 

Ether saw much the same activity, beginning last week at around $1,630 before spiking above $1,720 on Tuesday. It has since retreated too, and is now moving just below $1,620. 

As we enter September, the cryptoasset market remains on the edge of its seat as various macroeconomic and regulatory narratives continue to leave investors guessing. With the route to lower rates still unclear and bitcoin spot ETF approvals still waiting, the market will continue its guessing game on major cryptoassets’ direction of travel.
 

Bitcoin wallets hit 48 million

Despite ructions in the bitcoin market in the past few weeks the number of wallets holding the cryptoasset has surpassed 48 million for the first time ever according to data from IntoTheBlock. 

While the price has been somewhat quiescent over the summer and has suffered a few setbacks it is clear that usage of the cryptoasset continues to expand strongly. More than 5.61 million wallets have been created in 2023 so far compared to just 3.62 million in 2022. This suggests a major acceleration in the expansion of the user base is underway. 

The way in which user expansion impacts price is ill-defined and will come down to what those users are doing with the cryptoasset. Transactional usage, which is on the up, is less likely to affect the price but can affect other aspects such as fees. The market price for the cryptoasset is more reliant on macroeconomic factors, demand, and willingness to hold onto it. 
 

HashKey to launch altcoin fund

Hong Kong crypto firm HashKey Capital is looking to launch an altcoin-focused investment fund according to reports in Reuters. 

The fund will invest more than $100 million in smaller cryptoassets and will have less than 50% of its holdings in bitcoin or ether - two of the biggest cryptoassets that often form the basis of such funds. HashKey says for now the fund will be directed toward professional investors looking for alpha (above-market) returns from diversified investments.

The fund might not move the dial on particular cryptoassets but shows the renewed appetite from investors for access to the market. HashKey’s position in Hong Kong is notable too as it often provides products for investors in mainland China, a market that is perhaps underserved in terms of crypto offerings. 
 

Ethereum “Supreme Court” mooted 

The founder of Matter Labs Alex Gluchowski has suggested Ethereum establish a “supreme court” in order to give the last word on transactional and on-chain disputes. 

As usage of the Ethereum network grows and diversifies it is becoming increasingly important for contract, ownership, usage, and other disputes to be settled fairly. This is a process that is long-established in traditional markets whereby asset owners can pursue issues through traditional judicial systems. 

However, the newness of cryptoassets and blockchain means much is not established in this regard in legal precedent. Although in the UK the Law Commission is looking at how to establish ownership rights for digital assets there is still some way to go on it in legal terms. 

This makes a potential Supreme Court on-chain for Ethereum an interesting solution to a growing issue. However, the makeup of any such system would have to go through the process of approval from the wider Ethereum developers and community.

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