In this week’s edition of our weekly roundup, we take a look at the crypto market’s recent developments, including sharp declines, notable activity in Bitcoin and Ethereum ETFs, increased regulatory actions worldwide, ambitious expansion efforts, and key insights from the Money 20/20 conference.
Market Volatility:
Last week, the markets experienced volatility, with Binance Coin (BNB) reaching a new all-time high above $711 fueled by increased trading volume and interest. Bitcoin also hit the $69,000 mark following large investments from institutional investors. VanEck set a price target of $22,000 for Ethereum by 2030 in anticipation of Ethereum ETF approval. The market capitalization of gaming tokens surpassed $30 billion, driven by mainstream adoption and strategic partnerships in the gaming industry. A meme coin inspired by GameStop surged by 300% after Roaring Kitty’s return on social media, but later faced significant losses along with other meme coins after GameStop’s stock crash. The overall crypto market suffered a $96 billion decline in market capitalization following a strong U.S. jobs report indicating potential interest rate hikes.
Strategic ETF Moves:
Ark Invest exited the Ether ETF race, while 21Shares rebranded its fund to focus on other investment opportunities. ProShares seeks SEC approval for a spot Ethereum ETF on the NYSE to provide direct exposure to Ethereum. Despite market fluctuations, Bitcoin ETFs continued to attract inflows, totaling $131 million on June 7 with 19 consecutive days of positive net flows.
Trump’s Crypto Support:
Former President Donald Trump continues to express support for the crypto industry, positioning himself as a “crypto president” to gain votes from the crypto community.
Legal Actions and Regulatory Concerns:
The NY Attorney General filed a lawsuit against crypto firms 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 Gambaryan’s release. Hong Kong’s HKMA issued a warning about the unregulated status of KuCoin.
Industry Collaborations and Expansion:
Friend.tech and Conduit launched Friendchain, a blockchain enhancing social media interactions. Bitcoin miner Riot Platforms acquired a 12% stake in Bitfarms, and Robinhood announced plans to acquire Bitstamp for $200 million. Kraken revealed a $100 million pre-IPO raise to strengthen its financial position.
Money 20/20 Insights:
Ripple’s stablecoin is expected to launch this year, according to Ripple President Monica Long. Discussions at Money 20/20 highlighted regulatory challenges for companies entering the U.S. market, emphasizing the need for interoperability in the tokenization industry. Industry leaders stressed the importance of traditional financial institutions merging with blockchain technology to remain competitive in finance.