Franklin Templeton files for a Crypto Index ETF as Bitcoin hovers below $60k
Weekly Market Update #41
Before diving into this week’s round-up, feel free to check out some recently released long-form research content from our team:
Key Takeaways for this week:
Last week, spot Bitcoin ETFs saw net inflows of $32.4 million, while Ethereum ETFs experienced net outflows of $14.1 million.
BlackRock may be launching a Layer 2 solution, as reported by TokenTerminal
Grayscale introduces a crypto fund for MakerDAO's MKR token
Morgan Stanley discloses $187 million in Bitcoin ETF holdings
Franklin Templeton files for a Crypto Index ETF
USDC tap-and-go payment system to be introduced for iPhones
Symbioticfi launches developer network, plans mainnet launch in Q3 2024
dYdX announces dYdX Unlimited
Optimism developing native interoperability system for Layer 2 chains
Last week Morgan Stanley revealed a significant investment in Bitcoin ETFs, with holdings totaling $187 million as of June 30, 2024. This positions the firm among the top five holders of BlackRock's iShares Bitcoin Trust (IBIT).
Key Details
Morgan Stanley holds 5.5 million shares of BlackRock's iShares Bitcoin Trust (IBIT), managed by Morgan Stanley Investment Management Inc.
The firm also holds 26,222 shares of the ARK 21Shares Bitcoin ETF, valued at approximately $1.57 million.
This development highlights a broader trend of major financial institutions embracing Bitcoin ETFs. Recently, Morgan Stanley allowed its 15,000 financial advisors to recommend spot Bitcoin ETFs to select high-net-worth clients, which could drive increased demand for these products and potentially influence Bitcoin's market price.
In terms of upcoming data points this week, the most significant reports include Thursday’s initial jobless claims, which provide insights into the labour market, and Friday’s new home sales data, offering a measure of housing market activity. Additionally, Thursday’s S&P services PMI will give an early indication of business conditions in the services sector for August.
dYdX announced dYdX Unlimited
In other news last week, dYdX has announced the upcoming launch of dYdX Unlimited, a significant upgrade to the dYdX Chain, scheduled for fall 2024. This upgrade introduces several new features aimed at enhancing the trading experience:
Optimism developing native interoperability system for Layer 2 chains
For the final piece of news this week, Optimism is developing a native interoperability system for Layer 2 chains within its ecosystem, known as the Superchain. This initiative aims to address the current fragmentation of assets and users across different Layer 2 networks, which currently rely on Ethereum's mainnet for secure communication and asset transfers.
Key Components of the Interoperability System
Cross-Chain Message Passing Protocol: Facilitates seamless communication between different chains.
Standardised SuperchainERC20 Token: Enables consistent handling of bridged assets across the ecosystem.
Interoperable Chain Set: Applies to all OP Stack rollup chains, ensuring smooth interoperability.
Shared Interop Fault-Proof System: Secures asset transfers between chains, enhancing overall security.
Goals and Benefits
The primary goal is to create a unified ecosystem where users, assets, and developers can move seamlessly across various networks within the Optimism ecosystem. This would effectively make the Superchain function as a single, cohesive blockchain, improving user experience and liquidity across the platform.
Currently, Optimism's ecosystem includes 29 OP Stack chains, such as Base, Zora, and the upcoming Worldcoin Layer 2. This new interoperability solution has the potential to revolutionize the Layer 2 landscape by creating a more integrated and user-friendly environment for blockchain interactions.
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.