In this week’s review, various significant events are highlighted: the crypto market’s sharp declines, notable activity in Bitcoin and Ethereum ETFs, increasing global regulatory actions, ambitious sector expansion efforts, and key takeaways from the Money 20/20 conference.
Market Turbulence
Last week, the markets experienced volatility. Binance Coin (BNB) surged to a new all-time high above $711 due to increased trading volume and interest. Bitcoin also reached the $69,000 milestone, driven by significant investments from institutional investors. VanEck predicted a $22,000 price target for Ethereum by 2030 in anticipation of Ethereum ETF approvals. The market capitalization of gaming tokens exceeded $30 billion, attributed to mainstream adoption, innovative developments, and partnerships in the gaming industry. A meme coin inspired by GameStop saw a 300% surge after trader Roaring Kitty resurfaced on social media, but later faced losses along with other meme coins following GameStop’s stock crash. The overall crypto market saw a $96 billion decline in market capitalization after a strong U.S. jobs report raised concerns about potential interest rate hikes.
ETF Strategies
Ark Invest exited the Ether ETF race while 21Shares rebranded its fund for other strategic investments. ProShares aims for SEC approval to list a spot Ethereum ETF on the NYSE to offer direct exposure to Ethereum. Despite market fluctuations, Bitcoin ETFs continued to attract inflows, with $131 million on June 7 and 19 consecutive days of positive net flows.
Trump’s Crypto Support
Former President Donald Trump continues to show support for the crypto industry post-conviction, positioning himself as a “crypto president” to appeal to crypto voters.
Legal Actions and Regulatory Concerns
The NY Attorney General filed a lawsuit against NovaTechFX and AWS Mining for an alleged $1 billion fraud. Nigerian Minister of Information defended the trial of detained Binance executive Tigran Gambaryan, while former U.S. federal agents petitioned for due process. Hong Kong’s HKMA issued a warning about KuCoin’s unregulated status.
Industry Collaborations and Expansion
Friend.tech and Conduit launched Friendchain to enhance social media interactions using blockchain technology. Riot Platforms acquired a 12% stake in Bitfarms, while Robinhood announced plans to acquire Bitstamp for $200 million to expand its crypto business. Kraken revealed a $100 million pre-IPO raise to strengthen its financial position before a potential IPO.
Money 20/20 Insights
Ripple’s stablecoin may launch this year, according to Ripple President Monica Long. Long highlighted regulatory challenges faced by companies entering the U.S. market. Discussions at Money 20/20 emphasized the need for interoperability in the tokenization industry and the importance of traditional financial institutions integrating blockchain technology to stay competitive.