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- Crypto Alpha, Week 34 2024
Crypto Alpha, Week 34 2024
All things Crypto, Web3 and Blockchain to keep you updated
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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
McDonald's Instagram Hacked to Promote Solana Token
SEC Rejects Solana ETF Filings
Skyfire Enables AI Autonomous Payments with USDC
Microsoft Supports Aigisos with $150K Server Credits
Grayscale Launches Avalanche Trust
Franklin Templeton Adds Avalanche to Blockchain Fund
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.
Daily Alphas of the Week
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.
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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.
Solana Highlights of the Week
Tron’s SunPump has outpaced Solana’s Pump.Fun in daily memecoin launches, marking a significant shift in trader interest. SunPump introduced 7,352 tokens in the last 24 hours, surpassing Pump.Fun’s 5,694. The $SUNDOG memecoin on Tron surged to a $190M market cap, outperforming top Pump.Fun tokens.
SunPump also boasts a 1.98% token listing rate on Sunswap, compared to Pump.Fun’s 1.26% on Raydium. This momentum has driven Tron’s active wallets to 2.35M and daily fees to a record $3.84M, signaling a strong shift towards Tron’s memecoin ecosystem.
McDonald's Instagram account was reportedly hacked to promote a Solana-based memecoin, GRIMACE. The token's market cap surged to $20 million before plummeting below $1 million.
The unauthorized post described GRIMACE as "a McDonald's experiment on Solana" and the profile was altered to thank followers for $700,000 in Solana, hinting at a rug pull. The promotional post has since been removed. This incident comes amid broader volatility in the Solana memecoin market, where recent activity has seen a significant drop in trading volumes.
The SEC has rejected Cboe BZX’s 19b-4 filings for two proposed Solana ETFs, citing concerns that Solana may be classified as a security. This decision prevents the filings from advancing to the Federal Register and halts the approval process.
The move follows the SEC's stance that Solana should be considered a security, aligning with its position in various legal cases. Despite the setback, ETF issuers 21Shares and VanEck may refile or amend their applications to address regulatory concerns and continue pursuing approval for Solana ETFs.
Mango Markets DAO is voting on a settlement with the SEC over alleged securities violations. The proposed agreement involves paying a $223,228 fine, destroying MNGO token holdings, and seeking delisting from trading platforms. This proposal aims to settle SEC allegations without admitting wrongdoing and has already garnered enough votes for approval.
The SEC's scrutiny comes after Mango Markets suffered a $110 million exploit by Avraham Eisenberg in 2022. The settlement addresses SEC concerns but does not cover other investigations from the DOJ and CFTC.
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