Biweekly Headlines 2024 May W4 – June W1

“If it’s not #bitcoin, your money is melting.”  – Michael Saylor

Biweekly News Roundup

1.  Ethereum Developments

  • Impact of Bloomberg’s prediction on spot Ether ETF approval
    • On May 20, ETH jumped almost 20% to over $3,700 after Bloomberg raised chances for approving a spot Ether ETF from 25% to 75%. Ether rally prompts over $300M ETH inflow to crypto exchanges.
  • Performance of the restaking protocol
    • Since the approval of a spot ether ETF on May 23, the restaking protocol has soared to record highs in terms of deposits and TVL, with ETHFI up 41% in the past week.
  • Significance of Ether as the first proof-of-stake token approved as a spot ETF
    • Bernstein notes that ether is the first proof-of-stake-based token to be approved as a spot ETF and its approval paves the way for a blockchain asset to evolve from a token sale.
  • Future prospects for Solana and Ripple’s XRP as potential spot ETFs
    • Standard Chartered says Solana and Ripple’s XRP could be next in line to become spot ETFs.
  • Launch of the Volatility Shares 2x Ether Strategy ETF (ETHU)
    • The Volatility Shares 2x Ether Strategy ETF (ETHU) will become the first leveraged ETH ETF available in the US, with trading set to begin on June 4.

2. Bitcoin and Bitcoin ETFs

  • Bitcoin Price Movement 
    • BTC price dropped, facing resistance at $69,000, now 9% below its $73,835 all-time high from March 14. Other top 10 non-stablecoin cryptocurrencies are also flashing red.
  • BlackRock’s spot bitcoin ETF performance
    • BlackRock’s spot bitcoin ETF has leapfrogged GBTC to become the largest spot bitcoin ETF in the US after a $102M inflow on May 29.
  • Comparison between BlackRock’s IBIT and GBTC
    • BlackRock’s IBIT holds nearly $20B worth of bitcoin, compared with GBTC’s $19.7B.
  • Leadership changes at Grayscale
    • Grayscale CEO Michael Sonnenshein has resigned and will be replaced by Goldman Sachs’ Peter Mintzberg on August 15.
  • Overview of the performance of spot Bitcoin ETFs since their launch
    • Since spot Bitcoin ETFs first launched in the US in mid-January, the 11 ETFs have sucked up 855,619 Bitcoin, accumulating an average of 6,200 BTC per day.
  • Weekly inflows into Bitcoin investment products
    • Inflows into BTC investment products topped $1B last week, with the total year-to-date inflows reaching approximately $14.6B.  The spot funds added 14,389 bitcoin within a week, the strongest performance since March.
  • Insights from CoinShares’ “Digital Asset Fund Flows Weekly” report
    • CoinShares’ “Digital Asset Fund Flows Weekly” report highlighted a 28% increase in weekly trading volumes, reaching $13.6B. Crypto funds now manage $98.43B in assets.
  • Global assets managed by crypto funds and Bitcoin ETFs
    • The collective total held by all Bitcoin ETFs globally is now more than 1 million coins, currently worth almost $68B.

3.  Market Projections and Future Trends

  • Bernstein’s projections for crypto ETF inflows and market growth
    • Bernstein said more than $100B will flow into crypto ETFs in the next two years and the bitcoin and ether ETF markets are expected to grow to $450B in total.
  • Animoca’s Yat Siu’s perspective on the growth of the Web3 market in Asia vs. the U.S.
    • Animoca’s Yat Siu believes Asia is the fastest-growing Web3 market, while jurisdictions like the U.S. are lagging behind.
  • Potential exponential growth of the global cryptocurrency ecosystem
    • The value of the global cryptocurrency ecosystem will grow exponentially in the coming years and has the potential to grow up to 200 times in a decade.

4. Regulatory Developments and Impact

  • Approval of the Financial Innovation and Technology for the 21st Century Act (FIT21)
    • The crypto industry recorded its biggest-ever U.S. policy win on May 22 when the House of Representatives approved a wide-reaching bill to establish regulations for digital assets markets. The Financial Innovation and Technology for the 21st Century Act (FIT21) marks the first time a major crypto bill has cleared one of Congress’s chambers.
  • The CBDC Anti-Surveillance State Act
    • The CBDC Anti-Surveillance State Act seeks to block the U.S. central bank from continuing efforts toward the development of a digital dollar.
  • Debut of Bitcoin and Ether ETPs on the London Stock Exchange
    • The first Bitcoin and Ether ETPs debuted on the London Stock Exchange on May 22.
  • Implications for the upcoming US Presidential elections and candidates’ stance on cryptocurrency
    • The Biden administration’s stance on crypto appears to be softening following the Senate’s decision favoring cryptocurrency adoption.
    • Once a Bitcoin skeptic, Trump declares support for crypto. 
    • Independent presidential candidate Robert F. Kennedy Jr. noted the importance of keeping America as the world leader in blockchain innovation at the 2024 Consensus in Austin, Texas, on May 29-31.

5.  Stock Performance

  • Performance of MSTR stock
    • MSTR stock has surged by over 500% in a year and 150% year-to-date with its yearly gains beating BTC and Tesla stock.
  • NVIDIA’s record revenue and market capitalization
    • NVIDIA achieved a record revenue of $26B in the first quarter, pushing its market capitalization to over $2.5T. The result is bigger than the market cap of Tesla and Amazon combined, twice that of Bitcoin, and more than five times larger than Ether. Now it is the third largest public company in the world and just 17% away from surpassing Apple.

6. International Developments and Geo-Political Impact

  • Impact of Iran’s President’s demise on the crypto ecosystem
    • Following the demise of Iran’s President in a helicopter crash on May 19 evening, analysts predict a major impact on the crypto ecosystem of the country.
  • Prime Minister Rishi Sunak’s general election and UK’s crypto hub promotion
    • Sunak has set July 4 for a general election, likely to see the Conservative Party lose power, which promoted the UK as a crypto hub. The Labour Party has said it wants the U.K. to be a tokenization hub and will support the Bank of England’s digital pound plans.
  • Marathon Digital’s deal with Kenya for green energy projects
    • Marathon Digital signs a deal with Kenya to invest in green energy projects, helping to monetize stranded energy and manage renewable energy production in the African country.
  • BTC price trends in Japan, Argentina, and the Philippines
    • The price of one BTC exceeded 11M yen in Japan, while prices also peaked in Argentina and the Philippines.

7.  Legal and Political News

  • Conviction of Donald Trump by a New York jury
    • Trump was found guilty on May 30 by a New York jury on all 34 counts, being the first U.S. president convicted of a felony.

June 1, 2024

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