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- Bitcoin, Ethereum, Cosmos and more Week 34 2024
Bitcoin, Ethereum, Cosmos and more Week 34 2024
Keeping you updated on crypto, web3 and blockchain
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TL;DR
Bitwise Acquires ETC Group for European Expansion
Democrats Leave Crypto Out of Party Platform
BlackRock's Ethereum ETF Surges Past $1 Billion
Sony Unveils Ethereum Layer-2 Soneium
Skyfire Enables AI Autonomous Payments with USDC
Microsoft Supports Aigisos with $150K Server Credits
El Salvador Adds 162 BTC to Holdings
Base Hits 4M Active Addresses in 'Onchain Summer'
and much more!
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Bitcoin Highlights of the Week
Crypto asset manager Bitwise has acquired London-based ETC Group, adding nine Europe-listed exchange-traded products (ETPs) to its offerings. The deal boosts Bitwise's assets under management (AUM) by $1 billion, raising its total to over $4.5 billion. ETC Group’s notable products include a physical Bitcoin ETP (BTCE) and a staked Ether ETP (ET32).
This acquisition strengthens Bitwise's global presence as it plans to expand ETC Group’s platform across Europe. Bitwise, known for its U.S.-listed Bitcoin and Ether ETFs, sees the move as part of its strategy to grow as a leading global crypto asset manager.
The Democrats’ party platform, released ahead of their national convention, omits any mention of Bitcoin or cryptocurrency, differing sharply from the Republican platform that supports crypto-friendly policies. The document was finalized in July before President Biden dropped out of the race.
Despite recent efforts by industry advocates, including a town hall hosted by Crypto4Harris, to push for clearer crypto policies, the omission highlights a lack of focus on digital assets within the Democratic agenda. This contrast with the Republican stance could influence voters in the upcoming election, especially those interested in cryptocurrency regulation and innovation.
U.S. spot Bitcoin ETFs marked their fifth day of positive net inflows, adding $39.42 million on Wednesday. Grayscale’s mini Bitcoin trust led with $14.2 million, while funds from Fidelity, Bitwise, and BlackRock also reported inflows. Total trading volume across 12 Bitcoin ETFs increased to $1.42 billion.
In contrast, Ether ETFs recorded $17.97 million in net outflows. Grayscale’s ETHE fund saw $31.14 million in negative flows, while Fidelity and Franklin Templeton’s funds reported modest inflows. Trading volume for Ether ETFs reached $201 million, with cumulative net outflows now at $458.08 million.
Mt. Gox, the infamous defunct exchange, has transferred over $700 million in Bitcoin to unknown wallets. On Wednesday, it moved 12,000 BTC worth $709 million and 1,265 BTC worth $75 million. This major transaction follows a period of inactivity and raises speculation about potential distributions to creditors.
Despite the substantial transfer, Mt. Gox still retains around 34,000 BTC valued at nearly $2 billion. The market has remained steady, with BTC prices above $59,000. The ongoing reimbursement process has been met with increased holding by victims, who seem to be treating Bitcoin as a long-term investment.
El Salvador has launched a comprehensive Bitcoin certification program for 80,000 civil servants, signaling a strong commitment to integrating Bitcoin into national governance. The 160-hour course, managed by the National Bitcoin Office (ONBTC), aims to educate public sector employees on Bitcoin’s legal framework and strategic management.
This initiative is part of President Nayib Bukele’s broader strategy to embed Bitcoin into the country's financial system. In addition to this program, Bitcoin education will be introduced in public schools to promote widespread digital currency knowledge.
Ethereum Highlights of the Week
BlackRock's iShares Ethereum Trust ETF (ETHA) has surpassed $1 billion in cumulative net inflows, outpacing competitors like Fidelity's Ethereum Fund, which has attracted $367 million. Launched in late July, ETHA's success highlights its dominance in the Ethereum ETF market, with inflows significantly exceeding those of other products such as Bitwise and Grayscale.
Despite recent market fluctuations, ETHA has maintained strong investor interest, reflecting BlackRock's growing influence in the crypto sector. The ETF's rapid accumulation of assets underscores its role as a leading investment vehicle for Ethereum, surpassing previous benchmarks set by competitors.
Sony Group, in collaboration with Startale, has introduced "Soneium," a new Ethereum Layer-2 blockchain built on Optimism’s OP Stack. This blockchain aims to enhance Web3 applications with its fast processing and low fees, targeting sectors like entertainment and finance. Key launch partners include Astar Network, Chainlink, and The Graph.
The announcement has positively impacted the associated tokens: Astar Network’s ASTR surged 10%, Optimism’s OP increased by 8%, and The Graph’s GRT rose by 7%. Soneium’s testnet is expected soon, with new developer tools to support innovation.
Vitalik Buterin has asserted that Ethereum’s fundamentals are now "crazy strong," refuting claims of the network's weakness. He highlighted major improvements, such as reduced Layer 2 (L2) transaction fees, which now average below $0.01, and significant milestones reached by Optimism and Arbitrum.
Buterin praised advancements like EIP-4844 and enhanced ZK technology, which bolster scalability, security, and user experience. He also noted the growing ecosystem for identity and privacy, underscoring Ethereum's ongoing innovation and maturity.
Hodl Law’s appeal to compel the SEC to clarify whether Ether is classified as a security has been denied by a U.S. appeals court. The court upheld a lower court’s decision dismissing the lawsuit, finding Hodl Law failed to prove any imminent threat or enforcement action from the SEC regarding Ether's status.
The ruling highlights the SEC’s lack of a definitive stance on Ether as a security and dismisses the firm's argument that it needs clarity to avoid legal jeopardy. Despite this setback, Hodl Law vows to continue seeking a definitive regulatory answer on Ether.
Options totaling $1.5 billion on Bitcoin and Ethereum are set to expire amid a stable market, with potential for volatility post-expiry. Bitcoin options, valued at $1.12 billion, have a maximum pain point of $60,000, while Ethereum options, worth $378 million, have a pain point of $2,625.
Analysts observe a stable market structure with declining volatility, but anticipate possible price swings following the Jackson Hole meeting, where macroeconomic developments could impact market conditions. Bitcoin and Ethereum are currently seeing modest price increases, reflecting a calm market environment.
Cosmos Highlights of the Week
Skyfire has launched a pioneering platform allowing AI agents to make autonomous payments using USD Coin (USDC). This platform converts traditional currency into USDC, empowering AI with digital wallets to handle transactions independently.
Businesses can set spending limits to ensure responsible use, with human oversight triggered if limits are exceeded. The platform ensures transaction security and transparency through advanced encryption and blockchain technology, offering an immutable ledger for auditing.
Tholos now offers institutional custody for liquid staked tokens (LSTs) from Stride, including TIA, ATOM, OSMO, and DYDX. This integration allows funds to hold liquid staked tokens more efficiently, addressing the previous challenge of leaving tokens unstaked.
The move highlights growing maturity in the Cosmos and Celestia ecosystems, as well as advancements in Stride’s offerings, potentially increasing participation from institutional investors in Cosmos tokens.
CUDOS and Storj have announced a strategic partnership to offer high-performance compute and storage solutions for enterprises. CUDOS, a leader in decentralized compute networks, will integrate Storj’s S3-compatible storage into its platform, enhancing its capabilities for AI-driven projects.
Storj’s distributed storage platform provides cost-effective, secure, and sustainable cloud solutions by leveraging underutilized global resources, ensuring data security and durability.
Aigisos announced that Microsoft has committed to covering all server infrastructure and hosting costs for its mainnet launch. Additionally, Microsoft granted $150,000 in server credits to ensure a smooth rollout. This partnership reflects Microsoft's confidence in Aigisos' blockchain technology.
Furthermore, the Aigisos Secure Chain Enterprise Version will soon be available as a Blockchain-as-a-Service (BaaS) offering on the Microsoft Commercial Marketplace. This move aims to enhance enterprise adoption and expand the reach of Aigisos' secure chain technology.
SA World, a top Web3 gaming platform with over 500,000 users, has selected Injective as its primary L1 chain to launch new GameFi apps. The partnership introduces an Injective badge in The Great Escape, offering $INJ holders and stakers a 5% Booster and bonus xEntropy.
This collaboration promises additional rewards for $INJ stakers, further enhancing their experience in the Injective ecosystem. As SA World continues to grow, this integration marks a significant step in expanding GameFi within the Injective network.
Other Highlights of the Week
El Salvador has bolstered its Bitcoin reserves by acquiring 162 BTC through daily purchases since March 2024, bringing the total to 5,851 BTC. President Nayib Bukele, a proponent of Bitcoin, initiated this strategy to secure economic independence and innovation.
The government’s consistent acquisitions, including transferring 5,689 BTC into a cold storage “Bitcoin piggy bank,” have led to a floating profit of $93.45 million. Despite international scrutiny, transparency measures and environmentally conscious mining efforts have underscored Bukele’s long-term commitment to integrating Bitcoin into El Salvador’s financial landscape.
Coinbase is set to offer one-to-one conversions between the euro (EUR) and the euro-pegged stablecoin EURC starting August 28. This move aligns with the European Union's Markets in Crypto Assets (MiCA) regulation, ensuring EURC’s compliance. The conversion process will incur no fees and will be available on Coinbase Advanced.
Additionally, Coinbase will introduce a new EURC-USDC order book on August 29, replacing the existing EURC-EUR and EURC-USD order books. This adjustment aims to streamline trading and conversion between fiat and stablecoins, reflecting the growing prominence of euro-pegged stablecoins in the market.
Base, Coinbase's layer-2 solution, has achieved a milestone of 4 million active addresses amid its "Onchain Summer" campaign. The campaign, which began in June and runs through August, aims to boost blockchain development by offering 600 ETH (approximately $2 million) in rewards.
Last year's event saw significant engagement, prompting a repeat this year with a focus on fostering onchain creativity. Additionally, Base has collaborated with AtariX to integrate classic arcade games onchain, although there has been controversy over whether these games are fully onchain.
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