Coinbase launches cBTC as Bitcoin trades back above $60k
Weekly Market Update #42
Before diving into this week’s round-up, be sure to check out some recently released content from our team:
Major developments for the week:
Last week, spot Bitcoin ETFs saw net inflows of $403.9 million, while Ethereum ETFs experienced net outflows of $18.9 million
Microstrategy has bought another $1.1 billion BTC
Pantera, ParaFi and others buy FTX Metaplex tokens
Nansen acquires Stakewithus
Nansenis starting its points program and will likely launch a token in 2025
ENS Domains are now supported on PayPal & Venmo
Grayscale to launch first XRP trust
Coinbase launches cBTC
Trump is launching World Liberty today, Sept 16
Grass's latest round was valued at $1.1 billion.
Last week, spot Bitcoin ETFs saw net inflows of $403.9 million
Last week, spot Bitcoin ETFs saw net inflows of $403.9 million, a notable increase compared to the prior week’s outflows of -$706.1 million. MicroStrategy has recently expanded its Bitcoin holdings by acquiring approximately 18,300 bitcoins for around $1.11 billion. This purchase occurred between August 6 and September 12, 2024, bringing the company's total Bitcoin holdings to about 244,800 bitcoins, valued at approximately $14.67 billion. The acquisition was funded through the sale of common shares under an existing $2 billion at-the-market stock issuance program. The average purchase price for this batch of bitcoins was approximately $60,408 per bitcoin.
Ethereum ETFs also saw a notable improvement in flows compared to the previous week's outflow of $99.1 million. Despite this, the ETH/BTC exchange rate has recently dropped to its lowest level since April 2021, falling below 0.04 and currently at 0.03874.
Coinbase launches cBTC
In other Bitcoin related news, Coinbase has introduced cbBTC, a wrapped version of Bitcoin represented as an ERC20 token, fully backed 1:1 by Bitcoin held by Coinbase. Initially available on the Base and Ethereum networks, there are plans to expand support to additional chains. The goal of this launch is to strengthen the decentralised finance ecosystem by connecting Bitcoin liquidity to faster and more cost-effective financial systems on these networks.
The launch of cbBTC has seen rapid adoption, reaching a market cap of nearly $100 million within 24 hours. The circulating supply currently stands at 1,720 tokens, with 43% held on the Base network and 57% on Ethereum.
Coinbase has also cautioned users about fraudulent attempts to exploit the cbBTC launch, providing the correct contract addresses for both Base and Ethereum to help users avoid scams.
Trump launching world liberty on Sept 16
In other news, Former President Donald Trump is set to unveil a new cryptocurrency initiative, World Liberty Financial, today September 16. This decentralised finance platform is designed to offer financial services independent of traditional banking systems. The project will be managed by his sons, Donald Jr. and Eric Trump, and introduced via a live event on X Spaces at 8 PM ET.
World Liberty Financial will feature digital wallets, a credit account system, and options for borrowing and lending. Additionally, it will introduce a non-transferable governance token. The platform's mission is to drive mass adoption of stablecoins pegged to the US dollar, aiming to secure America's position in global financial leadership.
While the project has garnered some excitement within the crypto community, concerns have been raised regarding the timing of the launch, given its proximity to the upcoming presidential election. The venture has also faced challenges, including scams and hacked social media accounts linked to Trump’s family members.
Ensdomains is now supported on PayPal & Venmo
For the final update of this week, PayPal and Venmo have integrated support for Ethereum Name Service (ENS) blockchain domains, allowing users to conduct cryptocurrency transactions using their ENS names. This update enables users to send and receive crypto with simple, human-readable names instead of long, complex wallet addresses. The goal is to simplify crypto transactions, reduce errors, and enhance the user experience.
Additionally, both platforms have introduced an Address Book feature, allowing users to save and quickly recall frequently used ENS names and wallet addresses. This further streamlines crypto transfers by eliminating the need for manual entry of wallet details.
Initially available only in the United States, there are plans to expand this service to other countries. This integration represents a significant step in making cryptocurrency more accessible and user-friendly for a broader audience.
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Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.