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- Bitcoin, Ethereum, Cosmos and more Week 35 2024
Bitcoin, Ethereum, Cosmos and more Week 35 2024
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TL;DR
Nasdaq Seeks SEC Approval for Bitcoin Index Options
BlackRock Leads Bitcoin ETF Inflows
Ethereum Foundation Faces Scrutiny
Celsius Distributes $2.5 Billion To Creditors
Akash Integrates with NVIDIA
Kujira Clears ATOM Debt
Russia to Trial Crypto for International Trade
Musk, Tesla Win Dogecoin Lawsuit Dismissal
and much more!
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Bitcoin Highlights of the Week
Nasdaq has requested SEC approval to launch Bitcoin index options, aiming to provide institutional investors and traders with new tools for hedging risks and amplifying buying power. These options would be based on the CME CF Bitcoin Real-Time Index, which tracks Bitcoin futures and options on CME Group’s platform. The SEC has not yet approved any options linked to spot Bitcoin ETFs, including Nasdaq's application for BlackRock’s iShares Bitcoin Trust ETF.
Meanwhile, BlackRock’s spot Bitcoin ETF saw a $224.1 million net inflow on August 26, contributing to a $202.6 million joint net inflow across all U.S. spot Bitcoin ETFs.
Bitcoin ETFs in the U.S. have experienced significant inflows, with BlackRock’s IBIT leading the charge. On August 26, IBIT recorded a $224 million net inflow, its largest in over a month, contributing to an $18 billion total in assets under management across U.S. Bitcoin ETFs. Despite these inflows, Bitcoin's price remains under pressure, recently dropping below $60,000 after a brief rally.
This divergence between inflows and price performance raises questions about market sentiment. While BlackRock's dominance in the Bitcoin ETF space is evident, mixed results among other ETFs highlight investor uncertainty amid volatile market conditions.
Hilbert Group's Hilbert Capital has teamed up with Xapo Bank to create a Bitcoin-denominated hedge fund, set to launch in September 2024 with over $200 million in initial investments. The fund is designed to offer corporates, businesses, and professional investors institutional-grade credit structures to grow their Bitcoin holdings, with fees lower than Hilbert's standard hedge funds.
Xapo Bank's Joey Garcia highlighted the fund's focus on structured Bitcoin growth, while Hilbert Group CEO Niclas Sandström pointed to their strong partnership and the fund's expected growth. This initiative marks a significant move in expanding Bitcoin's role in institutional investments.
TeraWulf, the world’s sixth-largest Bitcoin miner, is launching a new 2-megawatt, liquid-cooled mining facility named WULF Den in September, followed by a 20-megawatt facility by year-end. The company is in talks with major tech firms, including members of the "Magnificent Seven" (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, Tesla), to form strategic partnerships, potentially with data centers or AI companies.
With an average production cost of $40,000 per Bitcoin, TeraWulf claims to be the most profitable Bitcoin miner on a per-share basis. Unlike other miners, it sells Bitcoin daily to capitalize on its low production costs, contrasting with Marathon Digital’s “hodl” strategy.
BlackRock's iShares Bitcoin Trust experienced a $13.5 million outflow on Thursday, marking its first withdrawal since May 1st and only the second since its launch in January. This outflow occurred as Bitcoin ETFs faced a third consecutive day of withdrawals, totaling $71.8 million, with competing funds like Grayscale, Fidelity, and Valkyrie also seeing outflows.
Despite this, BlackRock's ETF has amassed over $20 billion in net inflows and manages over 350,000 BTC, making it a leading institutional Bitcoin holder. The mixed flows reflect varied investor sentiment as Bitcoin struggles to stay above $60,000, with some speculating whether this marks a market bottom or the beginning of more outflows.
Ethereum Highlights of the Week
The Ethereum Foundation (EF) transferred 35,000 ETH (~$95 million) to Kraken, prompting calls for greater transparency from the Ethereum community. Executive Director Aya Miyaguchi stated that the funds were for routine expenses such as grants and salaries, and that regulatory issues had delayed the transaction.
Despite this, many community members are frustrated by the EF's lack of proactive communication and demand more regular financial disclosures to prevent misunderstandings. The EF's $100 million annual budget supports essential activities like legal protection and infrastructure.
Buenos Aires high schools are incorporating Ethereum and blockchain technology into their curriculum through a collaboration with the ETH Kipu Foundation. Starting August 27, students will engage in blockchain internships and an online Solidity course, designed to train 500 students in building decentralized applications (DApps).
The initiative aims to provide hands-on experience with Ethereum, enhancing career opportunities and positioning Argentina as a leader in blockchain education. ETH Kipu’s efforts also include training 30 instructors and expanding the reach of Ethereum knowledge across Latin America.
Vitalik Buterin has addressed speculation about his views on DeFi, affirming support for projects that are both sustainable and align with decentralization principles. He praised decentralized exchanges, stablecoins like RAI, and prediction markets like Polymarket for their long-term viability. However, he criticized unsustainable practices, such as the liquidity farming craze of 2021, as lacking enduring value.
Buterin emphasized that DeFi should also contribute to broader decentralization efforts in areas like messaging, identity, and social media. His stance underscores a commitment to sustainable DeFi while advocating for decentralized solutions beyond finance.
Sony’s blockchain project, Soneium, has partnered with Web3 payments provider Transak to offer global fiat on-ramp services. This collaboration aims to facilitate user access to Soneium by allowing traditional payment methods, which could significantly impact the gaming industry.
Through this partnership, gamers can purchase, transfer, and trade in-game assets and NFTs using conventional payment methods, bridging the gap between Web2 and Web3. Soneium, an Ethereum Layer 2 blockchain developed by Sony Block Solutions Labs, seeks to enhance blockchain adoption in gaming and other sectors.
Celsius has distributed over $2.53 billion in cryptocurrencies and cash to approximately 251,000 creditors, marking 93% of the eligible $2.73 billion value. This distribution process, which began in January 2024, involves payments through PayPal, Coinbase, and direct cash transfers. While most creditors have received their payouts, around 121,000 creditors, primarily due to complexities in the claiming process, are still pending.
Many of these remaining claims involve smaller amounts, which may deter some creditors from completing the necessary steps to receive their distributions. Additionally, Celsius has used part of the bankruptcy proceeds to establish a new bitcoin mining venture, Ionic Digital, with operations managed by Hut 8.
Cosmos Highlights of the Week
On August 26, 2024, Akash Network announced its integration with NVIDIA’s Brev platform, a significant development for the decentralized computing sector. This partnership, confirmed by Akash founder Greg Osuri and NVIDIA’s Nader Khalil, leverages NVIDIA’s advanced technology to enhance Akash’s capabilities.
The integration highlights Akash's growing role in combining cutting-edge technology with decentralized solutions, strengthening its position in the blockchain ecosystem. This milestone signifies Akash's increasing influence and its commitment to advancing decentralized computing through strategic collaborations.
Aave Labs has proposed integrating BlackRock’s $509M BUIDL tokenized fund into its $GHO Stability Module (GSM) to enhance the stability and yield of its stablecoin, $GHO. The $BUIDL token, backed by traditional assets like cash and U.S. Treasury bills, would help maintain $GHO’s 1:1 convertibility with USDC while unlocking new yield opportunities.
The integration could allow users to earn dividends in $BUIDL and explore additional partnerships with BlackRock. Currently, the proposal is in the community feedback stage, with a future vote planned for AAVE token holders.
Lava Network has unveiled the Wildfire Community Program, a new initiative designed to introduce users to Lava through interactive quizzes and quests. The program, which integrates with various blockchains like NEAR and Ethereum, aims to boost engagement and understanding of Lava’s capabilities.
The first phase, "Wildfire: Ignite," involves an onboarding quest to start participants' journey. The second phase, "Wildfire: Blaze," will expand the program into larger community activities and Lava Leagues.
Router Protocol has announced its integration with Osmosis, enhancing the decentralized exchange’s (DEX) connectivity to over 25 EVM and non-EVM chains. This integration bridges Osmosis with major ecosystems like Tron, facilitating the transfer of assets such as $USDC, $USDT, and $TRX between supported chains.
Additionally, $USDT and $TRX are now part of the Alloyed system, which consolidates various asset versions into a single token, aiming to streamline liquidity management. The partnership marks a significant expansion in cross-chain interoperability and is expected to drive further integration within the Cosmos ecosystem.
Kujira has fully repaid the 44,500 ATOM debt ($220,000) for the ATOM/KUJI liquidity pool, allowing ATOM depositors on Ghost to withdraw freely. The repayment follows a recent reduction of 334,400 USK from a margin exploit, which facilitated the recovery of ~57.63 wETH, sold for ~152,400 USDC.
The remaining debt from the USK margin exploit is 408,600 USK, with plans to address it using 481,000 USK in the USDC/USK LP. The focus now shifts to repaying a ~875,000 USDC debt from the KUJI/USDC LP. The team is also exploring OTC deals to expedite the deleveraging process.
Other Highlights of the Week
Russia is set to trial cross-border crypto payments following a new law signed by President Vladimir Putin. This legislation, while maintaining a ban on using crypto as legal tender domestically, grants the Russian central bank authority over an "experimental" regime for international crypto transactions.
The move appears aimed at bypassing Western sanctions related to Russia's invasion of Ukraine. However, experts are skeptical of its effectiveness due to the traceability of blockchain transactions and the potential for secondary sanctions. This marks Russia's latest step into the crypto space, following the recent legalization of crypto mining.
Elon Musk and Tesla have successfully dismissed a lawsuit accusing them of manipulating the Dogecoin market. Investors claimed Musk's tweets inflated Dogecoin's price for personal gain, but a U.S. judge ruled the statements were "aspirational and puffery," not actionable in court.
The case, dismissed with prejudice, sets a precedent making similar future lawsuits harder to pursue. Dogecoin's value dropped slightly post-ruling, but the impact was minimal, highlighting the legal system's resistance to claims based on social media influence in volatile crypto markets.
OpenSea has received a Wells Notice from the SEC, indicating potential legal action that could classify NFTs as securities. OpenSea's CEO, Devin Finzer, expressed shock at the SEC's move, emphasizing the threat it poses to creators and artists.
In response, OpenSea has pledged $5 million to support NFT creators and developers facing similar legal challenges. This development marks a critical moment for the NFT industry, as legal scrutiny intensifies. The SEC's focus on OpenSea, rather than specific NFTs, raises concerns about the broader impact on the marketplace and the NFT ecosystem.
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