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- Crypto Alpha - Week 35 2024
Crypto Alpha - Week 35 2024
All things Crypto, Web3 and Blockchain to keep you updated
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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
Binance, Bybit Launch Solana LSTs
Solana ETF Raises $2.75M in Brazil
Akash Integrates with NVIDIA
Kujira Clears ATOM Debt
Avalanche Launches infraBUIDL Program
AVAX, LINK Trading Launch in Hong Kong
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.
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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.
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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.
Solana Highlights of the Week
Robinhood Wallet has introduced support for Solana, enabling users to swap and transfer Solana-native tokens. This addition expands the wallet’s capabilities, which previously included assets like Bitcoin and Ethereum. Despite this enhancement, Robinhood users still cannot buy or sell SOL directly on the exchange due to regulatory concerns from the SEC, which has labeled SOL as a security.
The firm’s decision to integrate Solana into its wallet suggests a strategic move to engage with the growing Solana ecosystem, even as trading restrictions remain in place. This could indicate Robinhood’s anticipation of future opportunities within the Solana network.
Binance and Bybit are launching their own Solana liquid staking tokens, BNSOL and bbSOL, through Sanctum, a platform facilitating the deployment of such tokens by whitelisted validators. This move aims to address Solana’s current shortfall in liquid staking, where only about 6% of staked SOL is available as liquid staking tokens, compared to Ethereum’s 65%.
The introduction of BNSOL and bbSOL could significantly boost Solana’s liquid staking ecosystem and attract more institutional interest. This trend reflects a growing pattern where major exchanges are creating their own derivatives, potentially increasing capital inflow into these blockchain ecosystems.
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Solana’s prediction market platform, BET on DRIFT, achieved a significant milestone by surpassing Polymarket with $20 million in trading volume over 24 hours, compared to Polymarket’s $12.4 million. This surge highlights the advantages of Solana’s blockchain, known for its low fees and fast transaction speeds, which are crucial for the high-paced environment of prediction markets.
The recent spike in volume was driven by high-stakes political betting on the U.S. elections, particularly on Kamala Harris and Donald Trump. Despite this impressive performance, BET on DRIFT has experienced a recent decline in trade counts, raising questions about whether the volume surge is sustainable.
The first Solana spot ETF debuted on the Brazilian stock exchange, B3, raising $2.75 million. Approved by the Brazilian securities regulator (CVM), this ETF is offered by QR Asset, which also manages a bitcoin ETF.
Although the Solana ETF raised only 15% of the amount garnered by the bitcoin ETF, Theodoro Fleury of QR Asset emphasized Solana’s growth potential and its role in providing security for conservative investors and institutional buyers who cannot purchase Solana directly. The introduction of this ETF marks a significant step in broadening access to Solana investments in the Brazilian market.
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