Bitcoin ETFs see inflows of over $1 billion as ETH ETFs launch
Weekly Market Update #39
Major developments for the week:
Last week Bitcoin ETF products saw net inflows of approximately $1.2 billion
Ethereum ETFs launch
SEC Commissioner Peirce suggested ETH ETFs staking could be reconsidered.
Galaxy has acquired $1 billion in ETH assets under stake from CryptoManufaktur.
JD Vance has been announced as Trump's vice-presidential pick
Polygon has introduced an enhanced ZK proving system called Plonky3.
Worldcoin has extended token lock-ups.
Grayscale has launched a new fund focusing on decentralized AI.
RuneKek has revealed the activation of MakerDAO's NewGovToken.
Uniswap has introduced a browser extension.
TON Foundation aims to enhance Bitcoin utility with TON Teleport BTC.
AVAX tokens were airdropped to wallets that participated in Memecoin Rush.
Last week Bitcoin ETF products saw net inflows of approximately $1.2 billion
The table of Bitcoin spot ETF flows from July 15 to July 19, 2024, reveals significant activity across various funds. Notably, the IBIT fund saw substantial inflows, particularly on July 16 with $260.2 million, contributing to a total of $706.7 million over the period. FBTC also experienced a notable inflow of $141 million on July 19, culminating in $243.8 million for the week. Conversely, GBTC faced consistent outflows, peaking at -$53.9 million on July 17, resulting in a total outflow of -$56.1 million. Overall, the total inflows for the period amounted to $1,197.5 million.
Donald Trump to speak at Bitcoin Conference
In other Bitcoin related news, Donald Trump is set to speak at the Bitcoin Conference 2024 in Nashville, Tennessee, on July 27. Organized by BTC Media LLC, this annual event gathers Bitcoin enthusiasts and industry professionals. Trump will deliver a 30-minute speech at 2 p.m. CT (19:00 UTC) on the final day of the conference, which runs from July 25-27. This marks the first time a major U.S. presidential candidate has addressed a Bitcoin-focused event during a campaign season.
In addition to his main stage appearance, Trump will host a private fundraiser for cryptocurrency industry supporters, with options including an $844,600 seat at a round table with Trump and a $60,000 per person photo opportunity.
Trump's participation is seen as a strategic effort to appeal to crypto-friendly voters and potentially influence the 2024 election, especially in crucial battleground states.
Ethereum Spot ETFs are set to launch tomorrow, July 23rd
Tomorrow is the official launch date of the spot Ethereum.
The fee structure for Ethereum ETFs mirrors that of Bitcoin ETFs, with many providers waiving fees initially to build assets under management. Grayscale has kept its ETHE fee at 2.5%, significantly higher than other providers. A notable addition is Grayscale's mini ETH ETF, initially disclosed at a 0.25% fee, later reduced to 0.15% to remain competitive. This product aims to attract more fee-sensitive investors, while 10% of ETHE AUM was transferred to the mini trust, avoiding taxable events. Consequently, ETHE outflows are expected to be less severe than GBTC's.
Furthermore, SEC Commissioner Hester Peirce has suggested that allowing staking for Ethereum ETFs may be reconsidered. In an interview, Peirce mentioned that the product features that were excluded could always be reassessed. This comes after the SEC approved spot Ethereum ETFs in May without the staking option due to the SEC's stance that staking constitutes an investment contract, leading to a lawsuit against Ethereum development firm Consensys. Bloomberg analyst Eric Balchunas noted that Peirce's view aligns with the expectation that both staking and in-kind creation/redemption for spot ETH and BTC ETFs might be reconsidered, especially if there's a change in the US government following the upcoming election.
RuneKek has revealed the activation of MakerDAO's NewGovToken;
In other news last week, one of the founders of MakerDAO gave more insight into the MakerDAO endgame specifically in regards to NewGovToken Activation. With the upcoming launch of the Spark SubDAO, NewGovToken holders will have the opportunity to activate their tokens to earn SPK rewards. Activators of NewGovToken will receive 15% of all SPK Token Rewards.
NewGovToken can be acquired by upgrading MKR at a ratio of 1:24,000, coinciding with the imminent Endgame launch. Activation of NewGovToken carries no lockup period or additional risk and can be deactivated instantly at any time.
In the future, users will have the option to select other rewards, such as Stablecoin Rewards and 15% of Token Rewards from all other SubDAOs that are launched.
The primary goal of NewGovToken Activation is to incentivize long-term participation in governance. Eventually, it will also be possible to delegate tokens while keeping them activated.
This feature and other changes are subject to modification based on community feedback and will only be implemented if approved through the governance process. It is noted that NewGovToken Activation will not be available to users based in the US or those using VPNs.
Polygon has introduced an enhanced ZK proving system called Plonky3
The last piece of news comes from Polygon Labs who has launched Plonky3, a next-generation zero-knowledge (ZK) proving system aimed at improving Ethereum's scalability. Plonky3 offers a modular toolkit that enables developers to create customised ZK proving systems for zkVMs (zero-knowledge Virtual Machines) or zkEVMs (zero-knowledge Ethereum Virtual Machines) tailored to specific needs.
Plonky3 is already being used by projects like Valida and Succinct Labs' SP1, showcasing its potential for widespread application in the blockchain ecosystem. This development aligns with Polygon Labs' commitment to advancing ZK technology, essential for verifiable off-chain computation and scaling Ethereum to internet-scale capacity.
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