Corporates pile into digital assets as BTC vs altcoin split emerges: Institutional treasuries of public companies are moving USD bns into crypto, but a divide is emerging over whether the balance sheet should stick to BTC or diversify into altcoins, Bloomberg reports.

Who’s buying into what? With USD 116 bn held by 190 listed firms in BTC, the crypto mainstay’s backing outweighs altcoin holdings — however this lead is being challenged to some degree on the back of altcoin’s promising yields, with ETH treasuries reaching USD 16 bn and firms holding USD bns worth of SOL, pointing to shifting preferences.

The case for BTC: BTC backers see it as the only virtual asset that carries real legitimacy as a treasury asset, with its fixed supply of 21 mn tokens and established position in crypto markets providing “stability and simplicity,” Bit Digital CEO Sam Tabar said. BTC is also less susceptible to price volatility than its altcoin counterparts.

In the other corner: Alternative assets like ETH and SOL could offer bigger upside and returns, because of the various tactics like staking, staking, and lending that they offer. However, more exposure to market volatility and price swings make it a “horrible asset for a treasury company,” according to Strive Inc’s CEO Matt Cole.

BTC’s stagnant position on balance sheets will need to be challenged through the issuance of instruments or bonds, some argue, adding that the “moment has passed” for BTC to just be bought and held on balance sheets.

BUT- Skepticism around altcoins remains: CEO of BTC treasury firm Nakamoto David Bailey warned in an X post that failed altcoin projects and “toxic financing” have blurred the purpose of digital asset treasuries. He likened BTC treasuries to banks, arguing that firms with strong balance sheets will grow while weaker ones will be absorbed. Altcoins are also among the most vulnerable to market downturns, which would hit treasury firms hard.

MARKETS THIS MORNING-

Japan’s Nikkei notched another record high this morning as the Bank of Japan meets for its interest rate decision, while China’s CSI 300 and Hong Kong’s Hang Seng are both in the green, riding the broader wave across global stocks following the Fed’s interest rate cut yesterday. South Korea’s Kospi, however, is the one outlier, falling 0.4%. Over on Wall Street, futures are little changed after yesterday’s rally.

ADX

10,099

+0.6% (YTD: +7.2%)

DFM

5,979

-0.2% (YTD: +15.9%)

Nasdaq Dubai UAE20

4,864

+0.9% (YTD: +16.8%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

4.0% o/n

3.8% 1 yr

TASI

10,781

+1.2% (YTD: -10.6%)

EGX30

35,403

+1.2% (YTD: +19.0%)

S&P 500

6,632

+0.5% (YTD: +12.8%)

FTSE 100

9,228

+0.2% (YTD: +12.9%)

Euro Stoxx 50

5,457

+1.6% (YTD: +11.5%)

Brent crude

USD 67.44

-0.8%

Natural gas (Nymex)

USD 2.94

+0.1%

Gold

USD 3,675.30

-0.1%

BTC

USD 117,481

+1.5 (YTD: +24.4%)

Chimera JP Morgan UAE Bond UCITS ETF

AED 3.62

+0.6% (YTD: +3.9%)

S&P MENA Bond & Sukuk

150.55

-0.2% (YTD: +7.6%)

VIX (Volatility Index)

15.7

-0.1% (YTD: -13.9%)

THE CLOSING BELL-

The ADX rose 0.6% yesterday on turnover of AED 1.5 bn. The index is up 7.2% YTD.

In the green: Orascom Construction (+11.8%), Abu Dhabi National Takaful (+10.9%) and Abu Dhabi National Co. for Building Materials (+4.8%).

In the red: Al Khaleej Investment (-10.0%), Al Ain Alahlia Ins. Co. (-9.9%) and Rak Co. for White Cement & Construction Materials (-4.6%).

Over on the DFM, the index fell 0.2% on turnover of AED 773.8 mn. Meanwhile, Nasdaq Dubai was up 0.9%.

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