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- Crypto Alpha, Week 32 2024
Crypto Alpha, Week 32 2024
All things Crypto, Web3 and Blockchain to keep you updated
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TL;DR
Russia Legalizes Cryptocurrency Mining
Metaplanet's $70M Bitcoin Investment Plan
Nasdaq Seeks SEC Approval for BlackRock ETH Options
Vitalik Buterin Moves $8M Ether—Possible Donation?
Brazil Greenlights Solana ETF; U.S. Trails
Ethena Labs Launches USDe on Solana
Kujira Partners with THORChain
Injective Burns $344,478 of $INJ in Record Auction
Avalanche BOOST Campaign: Reviving DeFi
Monroe Integrates HyTB as Collateral on Avalanche
SEC Targets Crypto VC Firms in Ongoing Investigation
"Dark Skippy" Bitcoin Wallet Vulnerability
And much more!
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Bitcoin Highlights of the Week
Russian President Vladimir Putin has signed a law legalizing cryptocurrency mining in Russia, defining digital currency mining, mining pools, and mining infrastructure operators. The law allows Russian legal entities and registered individual entrepreneurs to engage in mining, while individual miners can participate if they stay within government-set energy limits.
It also permits trading foreign digital financial assets on Russian blockchain platforms, though the Bank of Russia can restrict certain assets to protect financial stability. Putin emphasized the importance of this legal framework for leveraging digital currencies in Russia's economic development. The law takes effect ten days after publication.
Mox, a virtual bank under Standard Chartered, has launched Bitcoin and crypto ETF trading, becoming the first virtual bank in Hong Kong to offer these products. The offerings include spot Bitcoin ETFs in Hong Kong and derivative Bitcoin ETFs in the US, with competitive fees due to Mox's lean infrastructure.
The move aligns with rising retail demand, as a recent survey revealed significant interest in Bitcoin among Hong Kong residents. Mox’s CEO, Barbaros Uygun, stated that the launch empowers customers to access emerging asset classes, potentially setting a new standard for virtual banks in the region.
Japanese firm Metaplanet plans to raise $70 million through a stock rights offering, with most funds allocated to Bitcoin. Inspired by MicroStrategy's strategy, Metaplanet seeks to protect against the yen's volatility and Japan's high debt by increasing its Bitcoin holdings. This move also includes a shift in its struggling hotel business to cater to Bitcoin enthusiasts.
Metaplanet's bold investment positions it as a leading Bitcoin holder in Japan, potentially setting a trend among other Japanese firms. The market responded positively, with the company's stock rising 12% after the announcement, signaling confidence in this strategic financial shift.
The USABTC policy group has proposed creating a Bitcoin tax-free Digital Economic Zone (DEZ) in the United States to boost the digital economy while maintaining the dollar's dominance. The DEZ would allow Bitcoin transactions without capital gains taxes but impose a tax on converting Bitcoin back to traditional currency.
This initiative aims to attract investors and stimulate economic growth within a regulated environment. The proposal includes a phased implementation plan, starting with a presidential directive and collaboration with the IRS to establish a legal framework. If successful, the DEZ could position the US as a leader in the global digital economy by 2026.
Michael Saylor, MicroStrategy's executive chairman, disclosed in a Bloomberg interview that he personally owns 17,732 Bitcoin, worth around $1 billion. Saylor reiterated his strong belief in Bitcoin as a premier investment, stating he hasn't sold any and continues to accumulate more, viewing it as a top capital asset for individuals, institutions, and even nations.
Saylor also highlighted shifting political attitudes towards Bitcoin, referencing U.S. Senator Cynthia Lummis's proposal for a Strategic Bitcoin Reserve and former President Trump's advice to "never sell your Bitcoin." He emphasized Bitcoin's value as a long-term investment rather than a currency for everyday purchases.
Daily Alphas of the Week
Ethereum Highlights of the Week
Nasdaq has proposed to the SEC the approval of options trading for BlackRock's iShares Ethereum Trust, which will exclusively hold Ethereum and cash assets. The trust will avoid Ethereum staking or validation, maintaining its role as a purely passive investment vehicle. This initiative aims to expand investment opportunities by integrating Ethereum into traditional financial markets.
The proposal seeks to offer investors a cost-effective method to gain exposure to Ethereum through public securities. If approved, the options will adhere to standard ETF trading regulations, providing flexibility for hedging and speculative strategies.
Vitalik Buterin, co-founder of Ethereum, has recently transferred 3,000 Ether, worth about $8 million, to a new multisignature wallet. This action has sparked speculation that Buterin may be planning a major charitable donation, following his past philanthropic efforts.
Previously, Buterin made headlines for donating over $1 billion in Shiba Inu tokens to an Indian COVID relief fund and $441 million in Akita coins to Gitcoin. This latest transfer aligns with his history of significant crypto donations and may signal another large-scale contribution to a charitable cause.
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The NYSE American has submitted a proposal to the SEC to list and trade options on three Ether ETFs managed by Grayscale and Bitwise. This includes the Bitwise Ethereum ETF, Grayscale Ethereum Trust, and Grayscale Ethereum Mini.
The proposal aims to enhance investment options and provide a cost-effective means for investors to gain exposure to Ether, along with a mechanism for hedging investment positions. This filing follows a similar request by Nasdaq for options on the BlackRock iShares Ethereum Trust. Both exchanges are awaiting regulatory approval, a process that has seen delays for Bitcoin ETF options.
The SEC has extended its review period for the Hashdex Nasdaq Crypto Index US ETF, a proposed fund that aims to track both Bitcoin and Ethereum. Originally set for a 45-day review, the SEC's new deadline for a decision is September 30.
This delay comes as the SEC continues to evaluate the implications of allowing an ETF that combines the two leading cryptocurrencies. Nasdaq filed the proposal in June, seeking approval to list and trade this dual-asset ETF. The postponement highlights the ongoing regulatory scrutiny and anticipation surrounding new cryptocurrency investment products.
BlackRock’s iShares Ethereum Trust (ETHA) has achieved nearly $900 million in total inflows just 11 days post-launch. On August 6, the ETF attracted $109.9 million, marking it as one of the top six performing ETFs of 2024. Despite a significant market downturn on August 5, which saw Ether’s price drop by 18%, ETHA has remained resilient.
This strong inflow performance reflects high investor interest in Ethereum, contributing to a notable position in the market. The ETF’s success is underscored by its rapid growth and investor confidence amidst broader market challenges.
Solana Highlights of the Week
The Brazilian Securities and Exchange Commission (CVM) has given the green light to a spot Solana ETF, spearheaded by QR Asset and administered by Vortx. This ETF, pending final approval from the Brazilian stock exchange B3, will track the CME CF Solana Dollar Reference Rate.
The approval underscores Brazil's leadership in the crypto investment space, surpassing the U.S., where firms like VanEck and 21Shares are still awaiting regulatory nods. As the U.S. considers its options, Brazil's swift action marks a significant advance in regulated crypto products.
Pump.fun has introduced a new update allowing users to create meme coins without any initial fees. Previously, launching a token on the platform required a fee of 0.02 SOL ($3), but this has now been waived. Instead, creators who successfully launch a token and achieve a market cap of around $69,000 will receive 0.5 SOL ($79).
This change aims to incentivize developers to keep their tokens active and meet market requirements, potentially increasing engagement. However, the update has received mixed reactions, with some praising the incentives, while others worry about potential exploitation and increased token saturation.
Ethena Labs has launched its USDe stablecoin on the Solana blockchain as of August 7, expanding its availability beyond Ethereum. USDe, which maintains a US dollar peg, can now be used with Solana (SOL) as collateral for loans, pending approval from Ethena (ENA) token holders.
The stablecoin, previously backed by Ether (ETH) and Bitcoin (BTC), is integrated with Solana-based platforms such as KaminoFinance, Orca, Drift, and will soon be on Jito. This new launch allows users to earn rewards by providing liquidity or using USDe for margin trades, with potential future short positions against SOL under consideration.
Solana's memecoin sector has plunged by 19% to a $5.34 billion market cap following a global market sell-off. This downturn was triggered by a rise in the Japanese yen, weak U.S. job data, and disappointing tech earnings, which caused a shift to safer assets and widespread declines across stocks and cryptocurrencies.
Notable Solana memecoins like WIF and BONK have fallen over 13% within the past day. This event underscores the risks of holding volatile assets like memecoins, as sudden macroeconomic changes can lead to significant losses, highlighting the need for careful risk management in crypto investments.
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